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Tuesday 13 April 2021
Georgia Man Sentenced to 40 Months in Prison for Participation in Multimillion-Dollar Business Email Compromise SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that IFEANYI EKE, a/k/a “Luther Mulbah Doley,” pled guilty today and was sentenced in Manhattan federal court by U.S. District Judge Jesse M. Furman to 40 months in prison for conspiring to commit wire fraud as part of a wide-ranging international business email compromise (“BEC”) syndicate.
U.S. Attorney Audrey Strauss said: “As he admitted today, Ifeanyi Eke played a key role in an international conspiracy that deceived and defrauded dozens of victims of nearly $3 million. Fittingly, Eke has been sentenced to prison and ordered to make restitution to the victims of the conspiracy.”
According to the allegations in the Indictment, other court filings, and statements made during court proceedings:
Between in or about 2016 and July 2018, EKE and his co-conspirators, including codefendants Cyril Ashu, Joshua Ikejimba, and Chinedu Ironuah, perpetrated a fraudulent BEC scheme through which they deceived dozens of victims, both foreign and domestic, into wiring millions of dollars to bank accounts controlled by the syndicate. The fraud was perpetrated by sending victims “spoofed” emails, which purported to be from counterparties whom the victims knew and trusted, and which contained wiring instructions fraudulently directing the victims to send funds to accounts that were in fact controlled by the defendants and others involved in the scheme.
EKE played a broad role in the fraud. As part of the scheme, EKE personally received wire transfers of fraud proceeds from several different victims in bank accounts that he opened and controlled. One of the victims, an intergovernmental organization headquartered in New York, was defrauded into sending $188,815 into EKE’s bank account. After receiving the fraud proceeds, EKE withdrew and transferred them both for his own use and for dissemination to his co-conspirators. In addition to receiving and dissipating victim funds directly, EKE managed and supervised other members of the conspiracy, including by arranging for co-conspirators’ accounts to receive fraud proceeds, receiving and communicating wire transfer information contained in victim emails, and coordinating the acquisition and deposit of checks representing fraud proceeds. In total, EKE is responsible for actual losses to 35 victims totaling approximately $2.7 million.
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EKE, 34, of Sandy Springs, Georgia, pled guilty to, and was sentenced on, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. In addition to the prison term, EKE was sentenced to three years of supervised release. EKE was further ordered to forfeit $365,205, and to pay restitution to his victims in the amount of $2,691,908.30.
Ms. Strauss praised the outstanding investigative work of the FBI. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Olga I. Zverovich and Jarrod L. Schaeffer are in charge of the prosecution.
Former Lunenburg Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A former Lunenburg woman pleaded guilty yesterday in federal court in Worcester to stealing Social Security benefits.
Sue E. Delaney, 68, pleaded guilty to one count of conspiracy and one count of theft of public funds. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 10, 2021.
In 1999, Delaney’s mother-in-law, who was receiving monthly benefits from Social Security, passed away. Delaney failed to inform the Social Security Administration (SSA) of the death, and SSA continued to deposit monthly benefits into a bank account held by Delaney’s mother-in-law. From November 1999 through March 2017, Delaney stole approximately $221,656 in Social Security benefits from her late mother-in-law’s account.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Flagler County Man Sentenced to 30 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Sean Patrick Farrelly (49, Palm Coast) to 30 years in federal prison for sex trafficking a minor. Farrelly was also ordered to serve a 10-year term of supervised release and to register as a sex offender. He has been in custody since his arrest on March 21, 2019.
Farrelly had pleaded guilty on June 19, 2019.
According to court documents, between March 2018 and February 2019, Farrelly recruited, enticed, and solicited a 16-year-old child to engage in commercial sex acts, by texting the victim, sending her pictures of money, and providing her with alcohol or marijuana. Farrelly paid the child victim $30 to $40 each time that they engaged in sexual intercourse. During several recorded phone calls between Farrelly and the victim, Farrelly admitted to having sexual intercourse with the victim and stated that he was worried the calls were being recorded and he was going to go to jail.
This case was investigated by Flagler County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Felon Pleads Guilty to Illegal Gun Possession after Hahira, Georgia, Traffic StopRead the Press Release
ALBANY, Ga. – A convicted felon caught carrying a firearm during a traffic stop in Lowndes County, Georgia, has pleaded guilty to his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
James Richard Shivers, 32, of Valdosta, pleaded guilty to one count possession of a firearm by a convicted felon before U.S District Judge Louis Sands in Albany federal court. Shivers faces a maximum sentence of ten years in prison to be followed by three years of supervised release and a $250,000 fine. There is no parole in the federal system.
“Convicted felons are prohibited from possessing guns, and those who do will face the possibility of federal prosecution,” said Acting U.S. Attorney Leary. “I want to thank the Hahira Police Department for their partnership investigating federal gun cases.”
“It was great working with the U.S. Attorney’s Office on this case. The Project Safe Neighborhood program has been a great gateway to prosecute local offenders on the federal level and in the end keeping our neighborhoods safe just as the program is named. We look forward to working with the United States Attorney’s Office for the Middle District of Georgia in the future and would like to thank all those involved,” said Hahira Police Department Cpl. Todd Pitchford.
At midnight on April 13, 2020, a Hahira Police Department officer was on patrol when he saw a pickup truck driven by the defendant that did not have a license plate or any type of temporary tag attached to it and conducted a routine traffic stop. Shivers did not have car insurance and the vehicle registration had been cancelled in 2017. The officer observed an open bottle of Jack Daniels whiskey in plain view. When the officer asked if anything illegal was in the truck, Shivers admitted that he had a firearm in the passenger side door. Shivers had previously been convicted in the Superior Court of Cook County, Georgia, of five counts of forgery and one count of theft by taking. It is illegal for a convicted felon to possess a firearm.
The case was investigated by the Hahira Police Department and is being prosecuted by Assistant U.S. Attorney Alex Kalim. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Fayetteville Woman Arrested for Multi-Million Dollar Fraud SchemesRead the Press Release
RALEIGH, N.C. – A Fayetteville woman was arrested and was detained pending her trial in federal court today on charges of wire fraud and laundering the proceeds of government contract fraud scams that targeted the United States Department of Defense (DoD) and businesses in the Eastern District of North Carolina.
According to court documents, from 2011 to 2020, Stephanie Dianna Elliott, aka “Stephanie Wilson,” aka “Stephanie Moore,” aka “Stephanie Russell,” aka “Stephanie Hanchett,” aka “Vicki Marsh,” aka “Monica Allen,” aka “Melissa Standford,” aka “Jennifer Taylor,” aka “Heidi Litchford,” aka “Sandy Morehead,” aka “Randy Morehead” aka “Katie Jones,” aka “Sharon Mitchell,” aka “Sharon Miller,” aka “Sarah James,” and aka “Janet Harrington,” 45, used aliases and more than a dozen business entities to obtain more than 1,000 federal defense contracts valued at more than $2.2 million. According to the allegations in the indictment, Elliott defrauded the Department of Defense by obtaining contract payments after falsely certifying that she had shipped supplies to the U.S. military, when, in fact, the goods were not shipped. It is alleged that Elliott and/or businesses under her control were debarred from federal contracting on four occasions. Elliott allegedly circumvented the terms of her debarments by using aliases and various business names to continue bidding on federal contracts.
The indictment also alleges that Elliott executed fraud schemes in connection with contracts with the State of North Carolina and other state governments. It is alleged that Elliott bid on contracts to supply food products and other goods. The indictment alleges that, after winning the contracts, Elliott defrauded third party vendors by inducing them to deliver the goods to the state in satisfaction of Elliott’s contractual obligations. It is alleged that, in so doing, Elliott obtained payment for these contracts but failed to pay the victim vendors.
Elliott is charged with twenty-six counts of Wire Fraud and five counts of Money Laundering and faces a maximum penalty of 20 years in prison on each count if convicted.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Defense Criminal Investigative Service and the General Services Administration, Office of Inspector General are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Fayetteville Man Sentenced to over 7 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that William Lee Murray, age 49, of Fayetteville, Arkansas, was sentenced today to 87 months in federal prison followed by 15 years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in April 2019 the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force received a cyber tip from the National Center for Missing and Exploited Children (NCMEC) in reference to suspected child pornography being uploaded to a Google account. Further investigation revealed that the IP address associated with the Google account was assigned to Murray’s residence and that the account containing the child pornography belonged to Murray.
Murray was indicted in January of 2020 and plead guilty to an Information in October of 2020.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorneys Carly Marshall and Amy Driver prosecuted the case for the United States.
This case was 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.
Fall River Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Fall River man was charged in federal court in Boston yesterday in connection with travelling to New Hampshire to attempt to have sex with a teenage girl.
Charles Eugene Schnitzlein III, 34, was charged by criminal complaint with traveling with intent to engage in illicit sexual conduct with a person under 18 years of age.
According to the charging documents, Schnitzlein used a messaging application to communicate with an undercover officer posing as a 13-year-old girl and devised a plan to meet the purported child to have sex. On April 9, 2021, Schnitzlein allegedly drove from Fall River to a mall in Nashua, N.H., to meet with the undercover officer posing as a teenage girl. On his way to the meetup location, Schnitzlein allegedly stopped to purchase condoms, flowers, soda and candy for encounter. Officers arrested Schnitzlein when he arrived.
As described in court documents, Schnitzlein admitted during an interview with law enforcement that he had traveled from Fall River to meet the purported 13-year-old girl. He further admitted that he had booked a hotel room in Nashua, N.H. to have sex with the 13-year-old girl.
The charge of traveling with intent to engage in illicit sexual conduct with a minor provides for a sentence of up to 30 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Nashua Police Commissioner James Tollner made the announcement. Assistance was provided by Massachusetts State Police and the Arlington, Revere and Boston Police Departments. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eagle Grove Man Sentenced to 10 Years in Federal Prison for MethRead the Press Release
A man who conspired to distribute methamphetamine was sentenced April 12, 2021, in federal court in Sioux City.
Cory Schultz, 38, from Eagle Grove, Iowa, pled guilty on November 23, 2020, to one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine.
At the plea and sentencing hearings, evidence showed that Schultz and others conspired to distribute more than 20 pounds of mixed methamphetamine from November 2018 through March 2020 in the Wright and Webster County areas. On a number of occasions, Schultz was observed on home security recordings distributing ounces to ¼ pounds of methamphetamine to other co-conspirators. The residence Schultz used as a hub for his methamphetamine trafficking was located within 1,000 feet of a protected location, namely Greenwood Park, in Eagle Grove, Iowa. Schultz distributed methamphetamine several times to individuals actively cooperating with law enforcement and agents seized more than ¼ pound of methamphetamine from searches of his garage and vehicle. Schultz possessed a handgun during some of his drug trafficking activities.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Schultz remains in custody of the United States Marshal until he can be transported to a federal prison. Schultz was sentenced to 120 months’ imprisonment and must serve a 6-year term of supervised release following imprisonment. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Humboldt County Sheriff’s Office, Wright County Sheriff’s Office, Eagle Grove Police Department, and the Iowa Division of Criminal Investigation’s Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3012.
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Eagle Butte Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on April 12, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Neil Blue Coat, age 35, was sentenced to 14 months in federal prison, followed by two years of supervised release, a special assessment to the Federal Crime Victims fund in the amount of $100, and forfeiture of three handguns and ammunition.
Blue Coat was indicted by a federal grand jury on August 11, 2020. He pled guilty on January 11, 2021.
On July 14, 2017, in Eagle Butte, Blue Coat knowingly possessed a handgun while being a user of methamphetamine and marijuana. Blue Coat was also arrested on September 26, 2019, with two more handguns, marijuana, and several items of drug paraphernalia in Eagle Butte. The manufacturer’s serial number had been obliterated from one of the handguns.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Blue Coat was immediately remanded to the custody of the U.S. Marshals Service.
Doctor Sentenced to 9 Years in Prison in Widespread Scheme to Defraud Medicare and Other Health Insurance Providers of Millions of DollarsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JAMES SPINA was sentenced to 108 months in prison for his participation in a widespread health care fraud scheme through the fraudulent operation of Dolson Avenue Medical (“DAM” or the “Practice”), a multi-disciplinary medical clinic located in Middletown, New York. SPINA previously pled guilty before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “James Spina led a sophisticated, widespread, and callous scheme that put greed and profits ahead of patients and their well-being. In doing so, he betrayed his professional obligations and bilked insurance companies and Medicare out of millions of dollars. Thanks to the coordinated efforts of federal and state investigative agencies, Spina will now serve a lengthy sentence in federal prison.”
According to the Indictment, other court filings, and statements made during court proceedings:
From 2011 through September 2017, DAM was a registered medical service corporation in New York State that purported to provide a variety of pain management and rehabilitation services, including physical medicine and rehabilitation, chiropractic services, physical therapy, diagnostic testing, and acupuncture. DAM primarily provided treatment services from its clinic located at 201 Dolson Avenue, Middletown, New York.
In addition to DAM, at least eight other corporations, including four other medical corporations, billed Medicare and other health insurance providers (the “Insurance Providers”) from 201 Dolson Avenue (the “Associated Businesses”). On paper, DAM and the Associated Businesses appeared to be separate entities owned by multiple different qualified individuals. But in reality, JAMES SPINA, who is a doctor of chiropractic – not a medical doctor – along with his co-defendant, were the true owners and operators of the different medical service corporations.
JAMES SPINA and his co-conspirators made all corporate decisions for DAM and the Associated Businesses. In particular, JAMES SPINA ran the day-to-day operations of the businesses. JAMES SPINA and his co-conspirators controlled payroll, the hiring and firing of employees, corporate expenses such as employee compensation and rent, and billing to Insurance Providers. Further, JAMES SPINA and one of his co-conspirators were the financial beneficiaries of DAM and its Associated Businesses.
JAMES SPINA also went to great lengths to conceal his control and ownership of DAM and the Associated Businesses. In particular, JAMES SPINA and one of his co-conspirators recruited medical doctors and other professionals to serve as the nominee owners of DAM and the Associated Businesses. JAMES SPINA further concealed his ownership of DAM and the Associated Businesses by transferring revenues of these companies into other companies that he and a codefendant owned. To further disguise these transfers, JAMES SPINA drafted fake lease and marketing agreements between DAM and the Associated Businesses and purported real estate and marketing companies he owned, and referred to the payments as “rent” or “marketing fees.” JAMES SPINA and his co-conspirators also used phony and non-existent addresses for the corporations so that it would appear that DAM and the Associated Businesses were operating out of separate locations.
In operating the multiple fraudulent businesses, JAMES SPINA and his co-conspirators routinely showed little, if any, regard for which medical services or treatments were medically necessary, or even whether the services were actually provided to patients, and instead operated DAM and billed Insurance Providers to maximize DAM’s reimbursements and, ultimately, their own profits. In particular, JAMES SPINA and his co-conspirators: (a) submitted and caused to be submitted claims to Insurance Providers for medically unnecessary services and procedures; (b) submitted and caused to be submitted claims to Insurance Providers for medical services that were not rendered; (c) double billed, i.e., submitted and caused to be submitted multiple claims for the same service to two different Insurance Providers; (d) altered and fabricated medical records; and (e) obstructed and impeded audits by Medicare and other Insurance Providers to conceal their fraud.
As part of the fraudulent scheme, one of the doctors who worked at DAM and the Associated Businesses introduced a lucrative procedure called a facet injection. Because the facet joints to which the injections are applied are near the spinal cord, such procedures are high-risk, with a small margin for error. The doctor had no formal training in the procedure, and taught himself by shadowing other doctors and watching YouTube videos. JAMES SPINA was intimately involved with all billing-related aspects of the facet injections, and continued to encourage their use even after several patients suffered serious, adverse events, and one patient died of complications following a facet injection.
As a consequence of the above-described scheme, a substantial number of claims submitted by DAM and the Associated Businesses to Medicare and other Insurance Providers were false and fraudulent.
In addition to the prison term, JAMES SPINA, 63, of Middletown, New York, was sentenced to three years of supervised release. The Court also ordered JAMES SPINA to pay $9,760,555.20 in restitution, and to forfeit $9,105,741.61. On May 2, 2019, JAMES SPINA pled guilty to one count of conspiracy to commit healthcare fraud, in violation of Title 18, United States Code, Section 1349.
Ms. Strauss praised the outstanding investigative work of the FBI, the U.S. Department of Health and Human Services-Office of the Inspector General, the New York State Office of the State Comptroller, and the Orange County Sheriff’s Office.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Nicholas S. Bradley is in charge of the prosecution. The prosecution was previously led by former Assistant U.S. Attorney Kathryn Martin.
Deer Isle Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BANGOR, Maine: A Deer Isle man pleaded guilty today in federal court to possessing child pornography, acting U.S. Attorney Donald E. Clark announced.
According to court records, Nicholas Pettis, 38, possessed electronic devices containing child exploitation material. Investigators seized the devices, including cell phones and a computer, from Pettis’s home on June 25, 2020. Some of the material he possessed on the devices depicted children under the age of 12.
Pettis faces up to 20 years in prison and a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Decatur Man Sentenced to 45 Years in Prison for "Sextorting" Minors in Eight StatesRead the Press Release
URBANA, Ill. – A Decatur, Ill., man, Cornell D.A. Johnson, 24, of the 1100 block of East Division St., was sentenced today to 45 years in prison for producing child pornography involving multiple minors. Upon imposing sentence, Senior U.S. District Judge Michael M. Mihm described Johnson as a “ringmaster,” who engaged in an “exercise of power,” to prey on victims of a vulnerable age for his pleasure and satisfaction.
According to admissions made in connection with his guilty pleas, entered on Feb. 19, 2020, Johnson controlled multiple female-presenting profiles on Facebook, which he used to contact female Facebook users. He then enticed the minors to send him photographs that progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once Johnson obtained compromising images, he threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with his demands for additional images. Among his demands, Johnson specifically directed the minor teenagers to sexually abuse younger children in their household to produce images.
At the time of his arrest, in February 2019, Johnson was identified in more than 80 Cybertips Facebook reported from across the U.S. and Canada to the National Center for Missing and Exploited Children. Internet Crimes Against Children Task Force affiliate agencies identified 17 minor victims located in nine judicial districts across eight states. The victims ranged in age from 4 to 17 years old.
Johnson has remained in the custody of the U.S. Marshals Service since his arrest. He was ordered to remain on supervised release for life upon completion of his prison sentence.
The charges are the result of an investigation by the Decatur Police Department; the Illinois Attorney General’s Office Internet Crimes Against Children Task Force; and, U.S. Immigration and Customs Enforcement Homeland Security Investigations. Vital assistance was provided by the U.S. Attorneys’ offices for the Eastern District of Oklahoma, the Western District of Pennsylvania, the District of Arizona, the Middle District of Pennsylvania, and the Western District of Wisconsin. Assistant U.S. Attorney Elly M. Peirson prosecuted the case on behalf of the government.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
DA investigator indicted on drug and money laundering chargesRead the Press Release
HOUSTON – An investigator with the Waller County District Attorney’s Office has been charged with attempting to possess with the intent to distribute heroin as well as attempting to launder drug proceeds, announced Acting U.S. Attorney Jennifer Lowery.
Authorities took Mohamed Ahmed “Alex” Kassem, 46, Houston, into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.
A Houston grand jury returned the three-count indictment April 7. It alleges Kassem was involved in laundering of what he believed was $200,000 in drug proceeds in August 2019.
If convicted of attempting to possess with the intent to distribute heroin, Kassem faces up to life in prison as well as a possible $10 million maximum fine. Upon conviction of either of the two counts of money laundering, he also faces up to 20 years of federal imprisonment. The money laundering charges also carry up to a $500,000 fine or twice the value of the property involved in the transaction.
The FBI conducted the investigation with the assistance of the Drug Enforcement Administration and Waller County District Attorney’s Office. Assistant U.S. Attorneys Alamdar Hamdani and Carolyn Ferko 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.
Council Bluffs Man Sentenced to Prison for Gun ChargeRead the Press Release
COUNCIL BLUFFS, Iowa - On April 12, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced David Robert Blake Vanderpool, age 35, of Council Bluffs, to 50 months in prison for the knowing possession of a short barrel shotgun that was not registered to him, announced Acting United States Attorney Richard D. Westphal. Vanderpool was ordered to serve three years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. There is no parole in the federal system.
On June 23, 2020, the Iowa State Patrol conducted a traffic stop on Vanderpool for speeding on Interstate 29. During the stop, troopers observed a sawed-off shotgun, found to be loaded, on the backseat of Vanderpool’s car. A check of the National Firearms Registration and Transfer Record by law enforcement found the firearm was not registered to him. Vanderpool pleaded guilty on November 20, 2020, to the firearm charge.
This matter was investigated by the Iowa State Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Corry, PA Woman Charged with Straw Purchasing FirearmsRead the Press Release
ERIE, Pa. - A resident of Corry, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Katelyn Marie Hall, 26, as the sole defendant.
According to the Indictment presented to the court, on March 31, 2018, Hall violated federal straw purchase laws and acquired firearms for another individual who was prohibited from possessing firearms.
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, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives 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.
Connecticut Army National Guard Soldier and Rikers Correction Officer Charged with Defrauding the United States Department of Veterans Affairs and the New York City Department of CorrectionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael J. Missal, the Inspector General of the United States Department of Veterans Affairs, Office of the Inspector General (“VA-OIG”), announced that SHAWN PIERRE HOBBS, a soldier for the Connecticut Army National Guard (“Army National Guard”) and a Rikers Island correction officer employed by the New York City Department of Correction (“NYC DOC”), was arrested yesterday in El Paso, Texas, on wire fraud and aggravated identity theft charges. HOBBS is alleged to have defrauded the Department of Veterans Affairs (“VA”) and NYC DOC in order to receive financial and other benefits to which he was not entitled. HOBBS is expected to be presented in federal court in El Paso this afternoon.
U.S. Attorney Audrey Strauss said: “Shawn Pierre Hobbs, a National Guard soldier and correction officer at Rikers Island, allegedly submitted false certifications to receive veterans benefits for hundreds of hours of work he did not perform. Moreover, Hobbs allegedly forged the signatures of his colleagues to make the fraudulent paperwork appear to be authentic. Hobbs’s alleged conduct certainly does not befit that of a sworn officer of two government agencies, and thanks to the assistance of Veterans Affairs, he is now charged criminally for fraud and identity theft.”
VA-OIG Inspector General Michael J. Missal said: “The charges unsealed today are the result of the hard work and dedication of the VA Office of Inspector General’s special agents working with our law enforcement partners. The VA OIG will seek to hold accountable those who perpetrate fraud and steal benefits that are intended for deserving veterans.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From at least in or about April 2015, up to and including at least on or about April 8, 2021, SHAWN PIERRE HOBBS served as a soldier in the Army National Guard. Army National Guard soldiers hold civilian jobs or attend school while maintaining their military training part-time. The VA provides certain benefits to United States veterans, including Army National Guard soldiers, who work in approved on-the-job training programs (“VA Benefits”). From at least in or about January 2019, up to and including at least on or about April 8, 2021, HOBBS was employed by NYC DOC as a correction officer at Rikers Island, a VA-approved on-the-job training program. NYC DOC employees who are members of the military are entitled to paid leave, with certain limitations, while they are engaged in the performance of ordered military duty.
From at least in or about January 2019, up to and including at least in or about March 2021, HOBBS defrauded the VA and NYC DOC in order to obtain VA Benefits and paid military leave from NYC DOC, among other things. Specifically, HOBBS submitted eight fraudulent military memoranda purportedly from the Army National Guard to NYC DOC in order to obtain paid leave. The fraudulent military memoranda each bore the seal of the United States Department of Defense and the letterhead of the Army National Guard, and falsely represented that HOBBS had served military duty on hundreds of days on which he, in fact, had not served. At the same time, HOBBS transmitted by fax 16 fraudulent employment certifications to the VA that were purportedly from NYC DOC and falsely represented that he had worked for NYC DOC for hundreds of hours, which he had not worked. To effectuate this scheme, HOBBS used the names, identities, and signatures of an Army National Guard Platoon Leader, an Army National Guard Readiness Noncommissioned Officer, and a NYC DOC employee without their knowledge or authorization on the fraudulent military memoranda and employment certifications.
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SHAWN PIERRE HOBBS, 34, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison. The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of VA-OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
The charges contained in the Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint as set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
Clearfield County Felon Charged with Illegally Possessing a FirearmRead the Press Release
JOHNSTOWN, Pa. -- A resident of Shawville, PA, 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 Russell Glen Hurley, 35, as the sole defendant.
According to the Indictment presented to the court, on or about April 7, 2019, Hurley knowingly, intentionally, and unlawfully, possessed a firearm, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms and Lawrence Township Police Department 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.
Charleston Woman Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Several local businesses defrauded of over $500,000
CHARLESTON, W.Va. – Misty Brotherton-Tanner, 41, of Charleston entered a guilty plea in federal court to two felony counts of wire fraud and one felony count of money laundering. She faces up to 50 years in prison, a $750,000 fine and three years of supervised release when she is sentenced on July 15, 2021. Brotherton-Tanner has also agreed to pay restitution in the amount of $537,173.
According to court documents and statements made in court, Misty Brotherton-Tanner provided bookkeeping and accounting services for several local businesses in the Charleston area. From at least 2014 until 2020, Misty Brotherton-Tanner devised a scheme to defraud these businesses. Brotherton-Tanner would electronically transfer money and move the electronic transactions between accounts in such a way so as to hide her fraud under the guise of legitimate transactions Brotherton-Tanner was not permitted to pay herself from these business accounts. Brotherton-Tanner’s fraud included listing herself as an employee for the various businesses, setting up fraudulent accounts in the name of fictional workers that Brotherton-Tanner would then add to the business accounting software, and even misrepresenting that she had paid state and federal taxes for the business when she had not done so. All throughout the scheme, Brotherton-Tanner moved the transferred money into her personal checking accounts. In total, Misty Brotherton-Tanner defrauded various businesses of $537,173.
Misty Brotherton-Tanner also stole money on behalf of and at the request of her mother, Lois Brotherton, who also has entered a guilty plea in federal court for her role in the scheme. Lois Brotherton will be sentenced April 28, 2021.
Acting United States Attorney Lisa G. Johnston thanked the Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations (IRS-CI), the United States Postal Inspection Service (USPIS) and the West Virginia State Tax Department-Criminal Investigation Division for their excellent work in this case.
Senior United States District Judge John T. Copenhaver, Jr. presided over the guilty plea hearing. Assistant United States Attorneys Erik S. Goes and Kathleen Robeson are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00146.
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Charleston Man Sentenced to 17 Years in Federal Prison for Possession of Child PornographyRead the Press Release
CHARLESTON, W.Va. – Christopher Ryan Christian Counts, 29, of Charleston, was sentenced to 204 months in prison to be followed by lifetime supervised release for possession of child pornography. Counts pleaded guilty to the charge in December 2020.
According to the plea agreement and statements made in court, Counts possessed 259 images and 14 videos of child pornography, many of which depicted prepubescent minors engaged in sexually explicit conduct. Some of the images and videos contained scenes depicting minors and infants engaged in sadistic or masochistic conduct. Counts has two prior sex offense convictions in Kanawha County Circuit Court involving young children.
Acting Lisa G. Johnston applauded the investigative work of the West Virginia State Police Internet Crimes Against Children (ICAC) Task Force and Homeland Security Investigations (HSI). Task Force Officer Michelle Shaffer coordinated the investigation and Counts’ arrest. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Julie M. White handled the prosecution.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00130.
Follow us on Twitter: SDWVNews
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Centerville Man Sentenced to 27 Years in Prison for Child Pornography OffensesRead the Press Release
DES MOINES, IA – On April 12, 2021, United States District Court Judge Stephanie M. Rose sentenced Ryan Don Andrew Ford, age 49, of Centerville, to 324 months in prison for Production of Child Pornography and 240 months in prison for Receipt of Child Pornography announced Acting United States Attorney Richard D. Westphal. The prison sentences are to be served concurrently. Ford was ordered to serve ten years of supervised release to follow his prison term and comply with sex offender registry requirements upon release.
In 2018 and 2019, Ford sexually exploited children. In 2018, Ford secretly recorded three minors using hidden cameras Ford placed in his Centerville residence, including in the shower. Ford knowingly captured images of the minors that constituted child pornography, saved the images, and distributed some of the images to others. In addition, in 2018 and 2019, Ford downloaded images and videos of child pornography from the internet. Law enforcement executed a search warrant in June 2019 at Ford’s residence and located over 1,800 images and 27 videos of child pornography on his cell phone.
After the sentencing, FBI Omaha’s Special Agent in Charge Eugene Kowel said, “Identifying, investigating, and arresting those who sexually exploit children will always be a priority for the FBI. We work with our state and federal partners to hold these criminals accountable. Ryan Ford’s 27-year sentence today sends a clear message – preying on innocent children will not be tolerated.”
“The sentence imposed today is the result of law enforcement cooperation at the local, state, and federal levels,” stated Acting United States Attorney Westphal. “If you victimize children you will be pursued and brought to justice.”
This case was investigated by the Wayne County Sheriff’s Office, Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, FBI Child Exploitation Task Force, and the Centerville Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Cedar Rapids Man to Federal Prison for Selling Pounds of Methamphetamine and Possessing GunsRead the Press Release
A man who distributed pounds of methamphetamine was sentenced on April 12, 2021, to more than 26 years in federal prison.
Tony Rhen Brown, age 60, from Cedar Rapids, Iowa, received the prison term after an October 13, 2020 guilty plea to conspiracy to distribute methamphetamine.
In a plea agreement, Brown admitted that he received at least a pound of methamphetamine a month over a three-month period in 2019 that he planned to resell. Brown also admitted that, on February 1, 2019, Cedar Rapids police officers responded to a burglary in progress and located Brown in a car outside the residence that was the subject of the call. Brown’s DNA was on two firearms law enforcement officers found in the car. Brown possessed these guns as part of his meth selling operation.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 320 months and 14 days’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorneys Emily Nydle and Kyndra Lundquist and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Linn County Sheriff’s Office, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-30.
Follow us on Twitter @USAO_NDIA.
California Man Pleads Guilty to Receipt of Child PornographyRead 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 Jorge Alvarez, 27, of Los Angeles, CA, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango, Douglas A. C. Penrose, and Caitlin M. Higgins, who are handling the case, stated that between June 18 and July 23, 2018, the defendant engaged in sexually explicit conversations via Instagram and text message with a 14 year-old female (Minor Victim) who told Alvarez that she was 14 years-old. During those conversations, the defendant sent the Minor Victim naked pictures of himself and discussed having sexual contact with the Minor Victim. The Minor Victim sent Alvarez nude photographs of herself at his request.
The plea is the result of an investigation by the Depew Police Department, under the direction of Chief Jerome Miller; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for August 8, 2021, at 10:00 a.m. before Judge Sinatra.
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California Man Indicted on Cocaine ChargeRead the Press Release
PITTSBURGH, PA - A resident of Covina, California, 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 Kenneth Kim Parks, age 58, as the sole defendant.
According to the Indictment, on or about March 19, 2021, Parks attempted to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
The law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The United States Postal Inspection Service 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.
Boonesboro Man Pleads Guilty to Coercion and Enticement of a Minor to Produce Child PornographyRead the Press Release
Greenbelt, Maryland - James Maynard, Jr., age 53, of Boonesboro, Maryland, pleaded guilty today to a federal charge for coercion and enticement of a minor in order to produce and distribute child pornography.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Jason Lando of the Frederick Police Department.
According to Maynard’s guilty plea, on November 27, 2019, Maynard used a social media account to meet a 14-year-old female, Victim 1, During his initial conversation with the victim over social media, the victim informed Maynard that she was 14 years old and he identified himself as a 52-year-old man. While they did not begin that way, Maynard’s conversations with the victim became increasingly sexual. On the second day of their online communications, November 28, 2019, Maynard asked Victim 1 to send him nude photographs of herself. Victim 1 subsequently took the photos that Maynard requested, using her tablet computer to take the photo while she was in her bedroom. Victim 1 sent the photos to Maynard via her social media account. Maynard made numerous sexually explicit comments about Victim 1’s genitals, and what he wanted to do to her. Maynard persuaded Victim 1 to take and send him more photos. Maynard also sent images of his penis to Victim 1.
After Victim 1 sent Maynard the photographs, she began to feel upset about the social media communications with Maynard. She tried to delete the images of herself, and she asked a trusted adult for help. Around this same time, Frederick County detectives and the Federal Bureau of Investigation initiated an investigation and forensically analyzed the tablet computer and social media records. Investigators discovered additional evidence that Maynard was using the internet to exploit Victim 1.
On December 5, 2019, a search warrant was executed at Maynard’s residence and his cell phone was seized. A forensic analysis of the phone revealed several images relevant to the investigation, including an image of Victim 1. Forensic analysis of another computer located in Maynard’s residence revealed that Maynard used the internet to search topics involving minors and sex, such as: “daddy and daughter sex;” “kids having sex;” and “little girl nude.”
Investigators interviewed Maynard. Maynard initially claimed that he thought Victim 1 was 19-years-old. However, when investigators showed Maynard the content of his online messages with Victim 1, Maynard admitted that he knew the victim was 14-years-old at the time that he communicated with her on social media.
As part of his plea agreement, upon his release from prison, Maynard will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Maynard faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for coercion and enticement of a minor. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing date for Maynard.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Frederick Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Birmingham Man Sentenced to 65 Years in Prison on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a man on child pornography charges, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Abdul K. Kallon sentenced Guillermo Martin Lopez, 31, to 65 years in prison followed by 10 years of supervised release. Lopez pleaded guilty in December 2020 to two counts of production of child pornography and one count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, in November 2019, the Internet Crimes Against Children Task Force (ICAC) received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) that included information received by Omegle – a free online chat website that allows users to socialize with others without the need to register. In September 2019, Omegle reported that a live streaming video containing child pornography was uploaded to an online Omegle account. Upon further investigation, a state search warrant was obtained for the residence of Lopez and electronic devices were seized by law enforcement. A forensic review of Lopez’s Apple MacBook laptop revealed at least 13 images and 6 videos of child pornography produced by Lopez.
“There is no more worthy cause than protecting children from predators seeking to exploit them,” said U.S. Attorney Escalona. “The success of cases like this come from the strong partnerships with our federal, state, and local law enforcement. We have one common goal – to pursue justice for child victims.”
“Lopez deserves every day of this sentence and I'm proud of the work of my agents and our partners to bring him to justice,” said FBI SAC Sharp.
“This sentence cannot restore the innocence that this predator stole, but it will ensure that he is not able to continue to produce and distribute this filth,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this show our unyielding resolve to identify, arrest and prosecute those involved in this despicable crime.”
Federal Bureau of Investigation, Special Victims Unit/ ICAC Task Force investigated the case, along with U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Alabama Law Enforcement Agency, and Birmingham Police Department. Assistant U.S. Attorneys R. Leann White and Lloyd C. Peeples, III prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit Project Safe Childhood
Berkeley County man admits to drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Curtis Davis, of Martinsburg, West Virginia, has admitted to drug distribution, Acting United States Attorney Randolph J. Bernard announced.
Davis, age 30, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Davis admitted to having 28 grams or more of cocaine base, also known as “crack,” in June 2019 in Berkeley County.Davis faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Arizona Man Indicted on Meth and Gun Charges following January Arrest in Butler CountyRead the Press Release
PITTSBURGH - A resident of Phoenix, Arizona has been indicted by a federal grand jury in Pittsburgh with charges of attempting to violate federal narcotics laws and being a felon in possession of a firearm, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Juan Paredes, 26, as the sole defendant.
According to the Indictment, on January 28, 2021, Paredes attempted to possess with the intent to distribute 500 grams or more of methamphetamine. Additionally, from January 23 to 29, 2021, Paredes, a convicted felon, was also alleged to be in possession of a firearm and ammunition in violation of federal law.
Prior federal and state court filings allege that a package containing approximately one kilogram (2.2 pounds) of crystal methamphetamine was mailed to a residence in Cranberry Township, Pennsylvania. Law enforcement seized the methamphetamine, replaced it with a non-controlled substance of similar appearance, sprayed fluorescent powder inside the package that is visible only with ultraviolet light, and delivered it to the residence. Paredes allegedly took the package into the residence, was found inside of the residence near the opened package and had the fluorescent powder on his hands and face when inspected with ultraviolet light. The package was submitted for testing and found to have a net weight of over 890 grams of which approximately 96% is methamphetamine hydrochloride.
The law provides for a minimum total sentence of 10 years in prison and a maximum of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, Pennsylvania Office of the Attorney General’s Drug Task Force, Cranberry Township Police Department, and Pennsylvania State Police 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.
Ambridge Felon Indicted on Drug and Firearms ChargesRead the Press Release
PITTSBURGH, PA - A resident of Ambridge, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on April 6, 2021 and unsealed today, named Michael Gamble, age 35, as the sole defendant.
According to the Indictment, on or about December 10, 2020, Gamble possessed with the intent to distribute 40 grams or more of fentanyl, possessed a firearm in furtherance of drug trafficking, and possessed a firearm and ammunition as a convicted felon.
The law provides for a maximum total sentence of life in prison, a fine of $8,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Office of the Pennsylvania Attorney General 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.
Albuquerque woman pleads guilty, sentenced to probation for violating Migratory Bird Treaty ActRead the Press Release
ALBQUERQUE, N.M. – Ruth Grande Olguin, 55, of Albuquerque, pleaded guilty in federal court on April 6 to three counts of violating the Migratory Bird Treaty Act. Grande Olguin was sentenced to one year of probation.
In the plea agreement, Grande Olguin admitted that on April 27, 2019, she unlawfully possessed feathers and other parts of the crested caracara. She also admitted that on May 22, 2019, she unlawfully possessed sharp-shinned hawk feathers as well as feathers and other parts of the crested caracara. Finally, Grande Olguin admitted that on November 12, 2019, she unlawfully possessed feathers and other parts of the crested caracara. Both birds are protected under the Migratory Bird Treaty Act. On each occasion, Grande Olguin was in possession of the feathers and other parts in Bernalillo County, New Mexico. These laws prohibit the possession, use, and sale of the feathers or other parts of federally-protected birds, as well as the unauthorized killing of these birds, to help ensure that the caracara, hawk, and other bird populations remain healthy and sustainable.
As part of her plea agreement, Grande Olguin agrees to pay a fine of $2,000 payable to the North American Wetlands Conservation Fund Account. Grand Olguin forfeits any interest in feathers, parts, and products thereof, of bald eagles, golden eagles, sharp-shinned hawks, American kestrels, greater roadrunners, red-tailed hawks, northern flickers, white-winged doves, crested caracaras, Cooper’s hawks, barred owls, turkey vultures, and a falcon seized during the course of the investigation of this case.
The case was investigated by the U.S. Fish and Wildlife Service with assistance from the New Mexico Department of Game and Fish. The case is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The U.S. Fish and Wildlife Service is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges as well as thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The agency enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands, and helps foreign and Native American tribal governments with their conservation efforts.
Acting U.S. Attorney statement regarding request to dismiss murder case against Taylor Leigh Plain BullRead the Press Release
BILLNGS — Acting U.S. Attorney Leif Johnson today issued the following statement in seeking the dismissal of the murder case against Taylor Leigh Plain Bull:
“The U.S. Attorney’s Office is seeking to dismiss the case against Taylor Lee Plain Bull, 27, a transient, after receiving notification today that he had died while in custody in Big Horn County, Wyoming. Mr. Plain Bull was awaiting sentencing on July 27 for conviction of second degree murder. Mr. Plain Bull had pleaded guilty on March 3 to second degree murder and to use of a firearm during a crime of violence in the Oct. 24, 2020 fatal shooting of a woman and injury of a passenger in her vehicle along Blue Creek Road on the Crow Indian Reservation.”
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Monday 12 April 2021
York County Man Sentenced to 33 Years’ Imprisonment for Sex TraffickingRead the Press Release
HARRISBURG, PA - The United States Attorney’s Office for the Middle District of Pennsylvania announced Robert Lee Johnson a/k/a Stone, age 54, of York, Pennsylvania, was sentenced on April 8, 2021, to 396 months’ imprisonment by U.S. District Court Judge Jennifer Wilson on sex trafficking charges.
According to Acting United States Attorney Bruce D. Brandler, Johnson knowingly recruited and enticed multiple victims to engage in commercial sex acts at local hotels between November 2015 and August 2016, in York County. Most of the victims worked on an “all in” basis, meaning they would give all of the money they earned to Johnson in exchange for having basic living expenses supplied. They relied on Johnson for food and clothing and, most significantly, heroin to support their addictions. Johnson was often violent, threatened the victims and physically assaulted them if they tried to keep any money or if they were “disrespectful.” Johnson would force the victims to watch him beat someone to serve as a warning on what would happen to them if they crossed Johnson. As another method of threatening and forcing the victims was to withholding heroin from them until they reached a quota of tricks.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Scott Ford and retired Assistant U.S. Attorney James Clancy prosecuted the case.
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. Attorney General Jeff Sessions 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wisconsin Man Pleads Guilty to COVID-Relief FraudRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that on April 12, 2021, a Wisconsin man pleaded guilty for his role in fraudulently obtaining over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Stephen Smith, 42, of Milwaukee, admitted that he fraudulently sought over $600,000 in PPP loans through applications to an insured financial institution on behalf of three different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
Smith pleaded guilty to bank fraud. He is scheduled to be sentenced on Wednesday, July 14, 2021 and faces a maximum penalty of 30 years in prison. United States District Judge Brett Ludwig will determine Smith’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The SBA-OIG, FBI, FDIC-OIG, and IRS-CI are investigating the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud
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.
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Public Information Officer Kenneth Gales
[email protected], (414) 297-1700
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Wisconsin Man Pleads Guilty to COVID-Relief FraudRead the Press Release
A Wisconsin man pleaded guilty today for his role in fraudulently obtaining over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Stephen Smith, 42, of Milwaukee, admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
Smith pleaded guilty to bank fraud. He is scheduled to be sentenced on July 14, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the Small Business Administration’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); and Acting Special Agent in Charge Tamera D. Cantu of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.
The SBA-OIG, FBI, FDIC-OIG, and IRS-CI are investigating the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the Justice Department's prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department'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.
Westerville woman sentenced to more than five years in federal prison for robbery & attempted robbery at four storesRead the Press Release
COLUMBUS, Ohio – A Westerville woman was sentenced in U.S. District Court today to 63 months in prison for robbery and attempted robbery.
Amy L. Hugo, 39, committed or attempted robbery at three gas stations and a store in Westerville and near Polaris Shopping Place. Hugo committed the robberies in a span of eight days in December 2019 and January 2020 using fake handguns at each of the robberies.
According to court documents, Hugo robbed the BP Gas Station on W. Main Street in Westerville on New Years Eve 2019. Hugo used a fake handgun and demanded cash from the register, ultimately stealing $175.
On Jan. 2, 2020, Hugo stole $564 from the Play It Games, Movies & Music store on E. Powell Road in Lewis Center.
Hugo committed one robbery and attempted another on Jan. 7, 2020. During the first robbery, she stole $80 from the Duchess Shoppe Gas Station on Sancus Blvd. During the second event, she attempted to rob the Shell Gas Station on Polaris Parkway. The Shell store clerk thought Hugo’s gun looked fake, so the clerk locked herself in the gas station office and called 911. Hugo fled the store without stealing any money.
Hugo was charged by a Bill of Information in September 2020 and pleaded guilty in October 2020.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Delaware County Sheriff Russell Martin; Westerville Police Chief Charles Chandler and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Salvador A. Dominguez is representing the United States in this case.
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Weapons Smuggler Sentenced to over Six Years and Fined More Than $10,000Read the Press Release
TUCSON, Ariz. – Last week, Ruben Arnulfo Chavarin, 31, of Tucson, Arizona, was sentenced by U.S. District Judge John C. Hinderaker to 78 months in prison and fined $10,307.20. Chavarin previously pleaded guilty to smuggling firearms and ammunition from the United States into Mexico.
On fourteen occasions between December 2010 and February 2011, Chavarin purchased eight firearms and over 21,000 rounds of ammunition in Tucson. He provided the firearms and 12,525 rounds of ammunition to co-conspirators to be smuggled out of the United States and into Mexico. On February 11, 2011, Chavarin attempted to personally smuggle 8,700 rounds of ammunition into Mexico, but was apprehended and arrested at the Port of Entry in Douglas, Arizona. Subsequent investigation revealed that shortly before his arrest, Chavarin had ordered sixteen AK-47 style rifles and 10,000 rounds of ammunition, which he also intended to smuggle into Mexico.
While under indictment for seven weapons trafficking offenses, Chavarin fled to Mexico, where he remained a fugitive for nine years until his arrest in 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson handled the prosecution.
CASE NUMBER: 11-0922-001-TUC-JCH
RELEASE NUMBER: 2021-025_Chavarin# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Verona Teen Sentenced to Prison for Role in DS44 Gang’s Drug TraffickingRead the Press Release
PITTSBURGH, PA -- A resident of Verona, PA, has been sentenced in federal court to 15 months of imprisonment followed by two years of supervised released on his conviction of conspiracy to distribute and possess with intent to distribute a quantity of fentanyl and heroin, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman IV imposed the sentence on Roderick Ferguson, age 19.
According to information presented to the court, Ferguson was a part of an investigation targeting the Darccide/Smash 44 or DS44 neighborhood gang and its drug trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, from approximately February of 2019 through June of 2019, the United States received authorization to intercept communications on nine telephones as part of the investigation.
Intercepted communications revealed that Roderick Ferguson was involved in the distribution of heroin and fentanyl, including serving as a runner for co-conspirator Christopher Highsmith.
Assistant United States Attorneys Brendan J. McKenna and Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Sues Nashua Landlord for Alleged Violation of the Fair Housing ActRead the Press Release
CONCORD – Acting U.S. Attorney John J. Farley announced today that the United States filed a lawsuit on Friday against John J. Flatley d/b/a John J. Flatley Company (Flatley), and a property manager employed by Flatley, for violating the Fair Housing Act. The United States alleges that Flatley discriminated against a tenant by refusing to allow a reasonable accommodation of the tenant’s disability when the tenant sought to have an emotional support dog.
As alleged in the complaint, the tenant leased an apartment in Nashua, which is owned by Flatley. The tenant, who was diagnosed with anxiety and depression, had used a dog for emotional support for several years. After the tenant requested permission to have an emotional support animal at the apartment, Flatley and the property manager indicated that they would permit the tenant to have an emotional support animal, but not a dog. The complaint alleges Flatley would not permit tenants to have dogs as emotional support animals.
The tenant filed an administrative complaint with the U.S. Department of Housing and Urban Development (HUD). Upon investigation, HUD determined that there was reasonable cause to believe that the Fair Housing Act had been violated. The tenant elected pursuant to the Fair Housing Act to have HUD’s determination resolved in federal court.
In these circumstances, the Fair Housing Act authorizes the Justice Department to commence an action in U.S. District Court on behalf of the tenant. The complaint seeks declaratory, injunctive, and monetary relief for the tenant.
“The Fair Housing Act serves to provide equal opportunity to individuals with disabilities by obligating landlords to provide tenants with reasonable accommodations,” said Acting U.S. Attorney John Farley of the District of New Hampshire. “One commonly-needed accommodation for an individual with a disability is access to an assistance animal, such as a service animal or a support animal. In order to protect the rights of individuals with disabilities and prevent discrimination, we will not hesitate to pursue litigation to enforce the Fair Housing Act and other federal civil rights laws.”
“Many individuals with different types of disabilities rely on assistance animals to maintain their independence and fully enjoy the place they call home,” said HUD’s Acting Assistant Secretary Jeanine Worden. “HUD applauds today’s action and will continue working with the Justice Department to ensure that housing providers meet their obligation to comply with the reasonable accommodation requirements of the Fair Housing Act.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The case is being handled by Assistant U.S. Attorney Raphael Katz.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
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U.S. Attorney and IRS Warn Potential Tax Cheats to Timely File Accurate and Complete Tax ReturnsRead the Press Release
HARRISBURG - With the deadline for filing federal individual income tax returns having been extended to May 17th, 2021, and taxpayers now preparing to file their tax returns, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes. Willfully filing false tax returns or deliberately evading paying taxes are serious criminal offenses and can result in prison and substantial fines and penalties.
“Supreme Court Justice Oliver Wendell Holmes famously stated that taxes are what we pay for a civilized society and those words are even engraved on the exterior of the IRS building in Washington D.C.,” stated Acting U.S. Attorney Bruce D. Brandler. Those who fail to pay their fair share of taxes not only cheat the government out of much needed revenue that finances our military, health programs, and public works projects, but also cheat their fellow citizens who are forced to carry more than their share of the burden. Our office will vigorously prosecute any individual or business that willfully violates our tax laws.”
“Tax fraud schemes, such as employment tax fraud, refund fraud, and identity theft harm everyone,” said IRS Special Agent in Charge Thomas Fattorusso. “These schemes serve no purpose except to defraud the IRS and the American Public. Would-be tax cheats are reminded that IRS-CI uses all its investigative tools to uncover and put a stop to such fraud.”
Throughout the past year, the U.S. Attorney’s Office prosecuted a broad array of tax offenses including tax evasion, employment tax fraud, and refund fraud. Enforcement efforts are continually ongoing. Here are a few recent examples:
Tax Evasion
- On March 5, 2021, a 54-year-old Old Forge man was sentenced to three years of probation and ordered to pay $117,370 in restitution for tax evasion. Christopher Jones failed to report over $500,000 in taxable income between 2014 and 2019 to avoid paying federal income taxes. Jones failed to report income he gained from illegal bookmaking activities and made false statements to federal agents in February 2019 during the investigation. The judge noted that but for COVID, Jones would have had to serve prison time, but his medical conditions placed him at high risk.
Prosecution of Business Owners
- On January 27, 2021, Lynn and Richard Mineo of Old Forge, Pennsylvania, pled guilty to tax evasion. The Mineos, who are husband and wife, failed to report a total of $550,469.92 in income between tax years 2014 ($145,205), 2015 ($169,346), 2016 ($153,749), and 2017 ($82,168). The income was for the Mineos’ business, a beer retail store called Mineo’s Brewer’s Outlet, located in Dunmore, Pennsylvania.
- On February 23, 2021, a 36-year-old Harrisburg man was sentenced to two years of probation and ordered to pay $360,897.86 in restitution for conspiring to defraud the United States by failing to pay employment taxes. Darasomalee Thach co-owned and operated a temporary staffing company in Harrisburg and failed to withhold and pay employment taxes from 2011 through 2015, in order to maximize his personal profit.
- On March 5, 2021, Matthew Forney of Camp Hill, was sentenced to one year and one day imprisonment and ordered to pay a $40,000 fine, and Kim Forney, of Windsor, was sentenced on March 4, 2021, to one year imprisonment, for failing to include earnings made through their business on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
- On March 31, 2021, Andrea and Guiseppe Tomasino, co-owners of Tomasino’s Restaurante Italiano, located in Dallas, Pennsylvania, pled guilty to failing to collect and pay required federal payroll taxes. Andrea and Guiseppe Tomasino, who were responsible, as co-owners of Tomasino’s Restaurant Italiano, for collecting and paying to the Internal Revenue Service federal payroll taxes, including Federal Insurance Contribution Act (FICA) taxes, willfully failed to pay to the IRS these required taxes for a period from the first quarter of 2014 through the first quarter of 2019, in the total amount of $95,710.
Stolen Identity Refund Fraud
- On March 9, 2021, a 38-year-old Allentown woman was sentenced to 75 months’ imprisonment for conspiring to defraud the government between January 2015 to July 2016. Marien Torres-Acevedo and her conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. Torres-Acevedo and her conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Torres-Acevedo admitted that between $550, 000 and $1.5 million in losses occurred as a result of the criminal activity. Torres-Acevedo was ordered to pay $857,729.65 in restitution.
- On April 1, 2021, a 44-year-old Allentown man was sentenced to 70 months’ imprisonment for conspiring to defraud the government and for committing aggravated identity theft. Julio Polanco Suarez and his conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. The conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Suarez admitted that between $1.5 million and $3.5 million in losses to the U.S. Treasury occurred as a result of the criminal activity. Suarez was also ordered Suarez to pay $1,189,256.50 in restitution. Coconspirators received sentences ranging from three years’ probation to 75 months’ imprisonment. Suarez faces deportation at the conclusion of his sentence of imprisonment.
Fraudulent FormsOn March 26, 2021, Eric Judkins pled guilty to conspiracy to defraud the Internal Revenue Service. Judkins and his co-defendant, Larry Benavides and others, ran a scheme between January 2011 and October 2012, at USP Allentown in which they would fill out fraudulent IRS Forms 1040EZ to claim refunds. The scheme also included selling completed forms to other inmates for a price, after which Judkins and Bernavides would pocket the money and the inmate would claim the bogus refund himself. From early 2011 until 2012, approximately 80 false returns were filed with the IRS on behalf of multiple inmates. Judkins directed that the refunds be sent to individuals outside of prison which involved setting up individuals outside of prison as Powers of Attorney so that they could cash the checks and deposit the money into the inmates’ commissary accounts. Searches of the inmates’ cells resulted in recoveries of IRS forms. The total amount of refunds claimed by the conspiracy was $108,855 of which Judkins or individuals directed by Judkins claimed $11,031.37. The total amount of refunds issued by the IRS was $26,735, of which $7,194 went to Judkins and his direct associates. Benavides previously pleaded guilty in the Western District of Pennsylvania and is awaiting sentencing.
Tax Scam Warning
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS would like to warn taxpayers of a quickly growing scam involving a phone scam whereby criminals fake calls from the Taxpayer Advocate Service (TAS), an independent organization within the IRS.
Similar to other IRS impersonation scams, thieves make unsolicited phone calls to their intended victims fraudulently claiming to be from the IRS. In this most recent scam variation, callers “spoof” the telephone number of the IRS Taxpayer Advocate Service office in Houston or Brooklyn. Calls may be ‘robo-calls’ that request a call back. Once the taxpayer returns the call, the con artist requests personal information, including Social Security number or individual taxpayer identification number (ITIN).
TAS can help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. TAS does not initiate calls to taxpayers “out of the blue.” Typically, a taxpayer would contact TAS for help first, and only then would TAS reach out to the taxpayer.
In other variations of the IRS impersonation phone scam, fraudsters demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive. Alternately, scammers may tell would-be victims that they are entitled to a large refund but must first provide personal information. Other characteristics of these scams include:
- Scammers use fake names and IRS badge numbers to identify themselves.
- Scammers may know the last four digits of the taxpayer’s Social Security number.
- Scammers spoof caller ID to make the phone number appear as if the IRS or another local law enforcement agency is calling.
- Scammers may send bogus IRS emails to victims to support their bogus calls.
- Victims hear background noise of other calls to mimic a call site.
- After threatening victims with jail time or with, driver’s license or other professional license revocation, scammers hang up. Others soon call back pretending to be from local law enforcement agencies or the Department of Motor Vehicles, and caller ID again supports their claim.
Here are some things the scammers often do, but the IRS will not do. Taxpayers should remember that any one of these is a tell-tale sign of a scam.
The IRS will never:
- Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
- Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Ask for credit or debit card numbers over the phone.
- Call about an unexpected refund.
For taxpayers who don’t owe taxes or don’t think they do:
- Please report IRS or Treasury-related fraudulent calls to [email protected] (Subject: IRS Phone Scam).
- Do not give out any information. Hang up immediately. The longer the con artist is engaged; the more opportunity he/she believes exists, potentially prompting more calls.
- Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
- Report it to the Federal Trade Commission. Use FTC.gov. Please add "IRS Telephone Scam" in the notes.
For those who owe taxes or think they do:
- Call the IRS at 800-829-1040. IRS workers can help.
- View tax account online. Taxpayers can see their past 24 months of payment history, payoff amount and balance of each tax year owed.
Stay alert to scams that use the IRS or other legitimate companies and agencies as a lure. Tax scams can happen any time of year, not just at tax time. For more information visit Tax Scams and Consumer Alerts on IRS.gov.
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Two men indicted in death of Fort Stewart soldier found stabbed to death in installation housingRead the Press Release
SAVANNAH, GA: Two former soldiers have been indicted in U.S. District Court alleging a murder conspiracy after another soldier was found dead in his barracks room in June 2020.
In a newly unsealed federal indictment, Byron Booker, 28, of Ludowici, Ga., and Jordan Brown, 21, of St. Marys, Ga., are charged in the death of Specialist Austin J. Hawk, 24, at Fort Stewart Military Reservation, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
Booker is charged with Premeditated Murder, and Murder of a Member of the U.S. Uniformed Services. In addition, both Booker and Brown are charged with Felony Murder; Conspiracy to Commit Assault Upon a Member of the U.S. Uniformed Services and to Commit Burglary; Assault Upon a Member of the U.S. Uniformed Services; Burglary; Conspiracy to Retaliate Against a Witness; and Retaliation Against a Witness. The statutory penalty for each of the murder charges upon conviction is death, or mandatory life in prison.
There is no parole in the federal system.
“It is a high priority for our office to pursue justice for members of the military who are victims of violent crime,” said Acting U.S. Attorney Estes. “We commend the FBI and the U.S. Army Criminal Investigation Command and other law enforcement partners for their tireless and detailed work on this case.”
The 21-page indictment alleges that Booker and Brown conspired to commit the offenses against Hawk in retaliation for Hawk reporting Booker to U.S. Army leadership for “poor leadership, poor military performance, and maltreatment of subordinates” prior to Booker’s discharge from the U.S. Army, and in retaliation for Hawk reporting Brown for drug use during his service.
The indictment further alleges that Booker and Brown discussed “silencing” Hawk, and discussed Brown providing Booker with a key to access Hawk’s room. The indictment alleges that Booker drove from his home on or about June 17, 2020, to Fort Stewart, and entered the installation on foot before walking approximately one mile to Hawk’s barracks. The indictment then alleges that Booker killed Hawk by “stabbing, cutting, and slashing” him with an edged weapon, and that afterward Booker disposed of the clothing and shoes he was wearing at the time.
Booker has been in custody since June 18, 2020; Brown was taken into custody after a U.S. District Court grand jury returned the indictment during its April 2021 term. Both defendants await further legal proceedings.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
U.S. Army Criminal Investigation Command and the FBI are investigating the case, which is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Jennifer G. Solari and Frank Pennington, and Special Assistant U.S. Attorney Darron J. Hubbard.
Two Plead Guilty in COVID-19 Unemployment Benefit Fraud SchemeRead the Press Release
FRESNO, Calif. — Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, each pleaded guilty today to one count of conspiracy to commit mail fraud and one count of aggravated identity theft in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to EDD. Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $103,000 as a result of the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
Vertz and Powers are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 6. For the count of conspiracy to commit mail fraud, Vertz and Powers face a maximum statutory penalty of 20 years in prison and a $250,000 fine. For the count of aggravated identity theft, they face a mandatory two-year sentence consecutive to any other sentence. The actual sentences, 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.
Tulsa Couple Plead Guilty to Bank Fraud After Applying for Paycheck Protection Program Loans under False PretensesRead the Press Release
A Tulsa couple who fraudulently applied for Paycheck Protection Program forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act pleaded guilty in federal court, announced Acting U.S. Attorney Clint Johnson.
Ibanga Etuk, 41, pleaded guilty to one count of bank fraud and one count of aggravated identity theft on April 9. Teosha Etuk, 33, pleaded guilty to one count of bank fraud on April 6.
“Ibanga and Teosha Etuk exploited the COVID-19 pandemic to steal taxpayer-funded resources from small businesses, and because of this, they are now convicted felons,” said Acting U.S. Attorney Clint Johnson. “The Coronavirus Anti-Fraud Team and our partners at the Small Business Administration, Federal Reserve Board and FBI remain committed to protecting the integrity of critical resources provided by Congress to assist the American people.”
Ibanga Etuk admitted that from April 6, 2020, to April 29, 2020, he knowingly applied for a Paycheck Protection Program loan from Frontier State Bank under false pretenses. The defendant lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the business, and relationships between the parties in a $300,000 loan application submitted for Ab0veAll Business Inc.
Ibanga Etuk further admitted that during the same time he unlawfully used another individual’s identity on payroll records submitted to Frontier State Bank when he applied for the $300,000 loan.
Teosha Etuk admitted that from April 14, 2020, to April 29, 2020, she fraudulently applied for a Paycheck Protection Program loan through First Liberty Bank. Specifically, she lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the businesses and relationships between the conspirators in a loan application for $150,000 for the company TMARK Enterprises, Inc.
Also charged in the indictment is Olusolo Ojo, 42, of Owasso. Ojo is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
According to the indictment, the Etuks created 12 fictitious business entities that would fraudulently apply for Paycheck Protection Program (PPP) loans. During this time, Ibanga Etuk and Teosha Etuk submitted multiple applications for the same businesses to more than ten different banks, without disclosing to those banks that they were submitting duplicative applications. They conspired to obtain loans in the approximate amount of $5,430,585 and actually obtained funding from banks in the total approximate amount of $995,385.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorneys Kristin Harrington and Victor A.S. Régal are prosecuting the case.
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. Leveraging data analysis capabilities and partnerships developed through its vast experience combatting economic crime and fraud on government programs, the Justice Department’s response to COVID-19 related fraud serves as a model for proactive, high-impact white-collar enforcement. This rapid and nationwide response enabled the Justice Department to quickly ensure accountability for wrongdoing amid a national crisis and sent a forceful message of deterrence during an ongoing crisis.
The Department of Justice has publicly charged 474 defendants with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. These cases involve attempts to obtain over $569 million from the U.S. government and unsuspecting individuals through fraud and have been brought in 56 federal districts around the country. These cases reflect a degree of reach, coordination, and expertise that is critical for enforcement efforts against COVID-19 related fraud to have a meaningful impact and is also emblematic of the Justice Department’s response to criminal wrongdoing.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Three Metro East Men Facing Federal Bank Fraud ChargesRead the Press Release
East St. Louis, Ill. – Lagardo Wright, 20, and Aijeigh McShan, 19, of Fairview Heights, Illinois,
and a third man, Cedric Sheard, Jr., 20, of Belleville, Illinois, have been charged in a six- count
federal indictment with bank fraud and conspiracy to commit bank fraud. Wright and
McShan were arraigned earlier today following their arrest in California last month.
Sheard’s arraignment was previously held on February 25, 2021.
According to the indictment, Wright, McShan, and Sheard obtained bank account
information, including online usernames, passwords, and PIN numbers, by soliciting individuals on
social media and elsewhere to provide their personal banking information in exchange for the
promise of money. Wright allegedly accessed the individuals’ bank accounts to check their account
balances and withdrawal limits. The indictment alleges that Wright, McShan, and Sheard, would then
deposit counterfeit checks into the individuals’ accounts and quickly withdraw funds before the
banks could determine the checks were counterfeit.Wright and McShan are scheduled for trial on June 7, 2021, at 9:00 a.m. Sheard’s trial is set for
July 26, 2021, at 9:00 a.m. Both trials will be held at the federal courthouse in East St. Louis
before United States District Judge David W. Dugan. If convicted, each count of the indictment
carries a maximum sentence of 30 years in prison.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to
be innocent of a charge until proven guilty beyond a reasonable doubt to the
satisfaction of a jury.The investigation was conducted by the United States Postal Inspection Service. The case
is being prosecuted by Assistant United States Attorney Luke J. Weissler.Stockton Man Sentenced to over 17 Years in Prison for Conspiracy to Engage in Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — Lucious James Roy, 34, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 17 years and seven months in prison for conspiracy to engage in sex trafficking of a child, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2018 and November 2018, Roy recruited a 17‑year-old and a 16-year-old to engage in prostitution. Roy recruited the 17-year-old victim outside of a high school, and he used a social media platform to recruit the 16-year-old victim. Roy then groomed the victims to perform sex acts in exchange for money that he kept. He also used threats of violence to try to control them.
According to court documents, Roy and his co-conspirator, Dawniel Santangelo, 43, of Stockton, created online prostitution advertisements for the victims and drove them to motels across Northern California, including Stockton, Salinas, Oakland, and Ripon, where they had sex with strangers in exchange for money.
On May 10, 2019, Roy and Santangelo were arrested in Jackson County, Oregon, for state prostitution and sex trafficking offenses after police found them in a hotel room with a 15-year-old runaway from Modesto. At that time, the San Joaquin District Attorney’s Office had an open investigation into the defendants for sex trafficking the two other minors. Both the Jackson County District Attorney and the San Joaquin District Attorney dismissed their cases in favor of federal prosecution.
“Today’s sentence is necessary due to the defendant’s long criminal history and to protect the public from future crimes,” Acting U.S. Attorney Talbert said. “He used intimidation and threats to keep his victims compliant and afraid to seek help. His willingness and ability to recruit children and coerce them to engage in prostitution for his financial benefit puts the public in danger.”
“No person, let alone a minor, should be treated as a commodity to be transported and sold again and again,” stated Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Every day, the FBI works collaboratively with its law enforcement partners to ensure traffickers face justice and victims can break free from a cycle of abuse and exploitation.”
This case is the product of an investigation by the Federal Bureau of Investigation, Stockton Police Department, San Joaquin District Attorney’s Office, Medford (Oregon) Police Department, and Jackson County District Attorney’s Office. Assistant U.S. Attorneys Cameron L. Desmond and Brian A. Fogerty are prosecuting the case.
Charges are pending against Santangelo. She is scheduled for trial on July 27. If convicted, she faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison, and a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Steven Roubideaux, age 51, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Roubideaux, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between May 17, 2020, and May 28, 2020.
The charge is merely an accusation and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Roubideaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Billy Frank Burchell, age 50, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on Burchell, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between November 6, 2019, and November 10, 2020.
The charge is merely an accusation and Burchell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Burchell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sex Offender Makes Appearance in Federal Court for Failing to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man previously convicted of felony sex crimes, appeared in federal court.
Jeremiah Calvin Rederth, age 38, made his appearance from U.S. Penitentiary – Leavenworth, in Leavenworth, Kansas, before U.S. Magistrate Judge Veronica L. Duffy. Rederth pled guilty to the Indictment returned against him for Failure to Register as a Sex Offender.
According to court documents, Rederth was convicted in 2010 of fourth degree rape, a Class 3 Felony, in the 3rd Judicial Circuit, South Dakota. He was sentenced to 10 years, and 2 years of the sentence were suspended with conditions. As a result of his prior conviction, Rederth is classified as a Tier II sex offender, which requires him to register 2 times per year and update the sex offender registry within 3 days of any change of address, school, or place of employment. Rederth knew of his obligation to register as a sex offender and to update his registration, but failed to do so.
This investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Rederth was remanded to custody to continue serving his sentence for other conduct. A sentencing date has not been set.
Sex Offender Makes Appearance in Federal Court for Failing to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Texas man, previously convicted of felony sex crimes, appeared in federal court.
Rene Albarez DeLeon, Jr., age 44 of Texas, made his appearance in federal court in Pierre before U.S. Magistrate Judge William D. Gerdes. DeLeon pled not guilty to the Indictment returned against him for Failure to Register as a Sex Offender.
The maximum penalties for the offense are 10 years of imprisonment, and/or a $250,000 fine, a mandatory minimum term of five years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund.
According to the Indictment, in April 2020, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update a registration. He is a sex offender by reason of a conviction for sexual assault of a child under the laws of the State of Texas, and he traveled in interstate commerce, and having entered, left, and resided in Indian country, while failing to register or update his registration.
The charge against DeLeon is merely an accusation, and he is presumed innocent until and unless proven guilty.
This investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the cases.
DeLeon was remanded to custody to continue serving his sentence for other conduct. A trial date has not been set.
San Diego Man Sentenced to 188 Months in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – April 12, 2021
SAN DIEGO – Jeffrey Alden Blair was sentenced today by U.S. District Judge Anthony J. Battaglia to 188-months in prison for supplying the fentanyl that led to the fatal overdose of 45-year old Derrick Hotchkiss, a long-time rugby player for the San Diego Old Aztecs Rugby Football Club. Through his plea agreement, Blair admitted that the fentanyl he dealt caused Hotchkiss’ death and that he knowingly sold in excess of 400 grams of fentanyl.
Upon arrest, Blair told law enforcement that he understood that fentanyl could cause death and was “no joke.” Blair was arrested in an open storage unit in which agents located more than 500 grams of fentanyl and other drugs and drug-related items.
“Recidivist drug dealers who supply this poison in our community while recognizing the potentially lethal consequences must be held accountable,” said Acting U.S. Attorney Randy S. Grossman. “We will continue to aggressively pursue fentanyl traffickers in overdose cases to ensure justice is fully served.”
“This defendant dealt in more than drugs. He dealt in death,” said Special Agent in Charge of the San Diego DEA John W. Callery. “This sentencing should serve as a warning to other death dealers that we will continue to investigate fentanyl overdose deaths and those dealers who knowingly provide these poisons in San Diego and Imperial County.”
Previously, defendant Christopher Emison was also sentenced in connection with Hotchkiss’ death to 168-months in custody. In a related case, defendant Andrew Gossai will be sentenced on April 26, 2021. According to the Government’s sentencing papers, Gossai sold the fatal dose of fentanyl to Blair who made the purchase for both Emison and himself. In turn, Emison sold the fatal dose to Hotchkiss shortly before his overdose death.
Acting U.S. Attorney Randy Grossman praised prosecutor Larry Casper as well as the agents from Narcotics Task Force Team 10, a multi-agency team housed by DEA that was created in July 2018 to address drug overdose deaths in San Diego, for their efforts on these cases.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANTS
Case Number 19cr3252-AJB
Jeffrey Alden Blair Age: 34 San Diego, California
Christopher Glenn Emison Age: 33 El Cajon, California
Case Number 19cr3253-AJB
Andrew Samuel Daniel Gossai Age: 33 San Diego, California
SUMMARY OF CHARGES
Andrew Samuel Daniel Gossai and Jeffrey Alden Blair:
Distribution of Fentanyl – Title 21 U.S.C. Section 841(a)(1) and (b)(1)(C)
Maximum Penalties – Mandatory minimum of ten years, and maximum of life in prison and $10 million fine.
Christopher Glenn Emison
Sentenced to 168-months on Distribution of Fentanyl – Title 21 U.S.C. Section 841(a)(1) and (b)(1)(C) with maximum penalties – mandatory minimum of five years and maximum of 40 years in prison and $5 million fine.
INVESTIGATING AGENCIES
Drug Enforcement Administration
Federal Bureau of Investigation
Department of Homeland Security
California Department of Healthcare Services
San Diego Police Department
(The above-listed agencies are represented on DEA NTF Team 10)
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Sonny Ray Escarsega, a/k/a Sonny Ray Ruiz, age 38, was indicted on October 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Escarsega was convicted of Aggravated Sexual Abuse in July 2003. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 10, 2020, and October 14, 2020, Escarsega, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Escarsega is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Escarsega was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Portland Woman Sentenced for Selling Pangolin Scales Illegally Imported into the U.S.Read the Press Release
PORTLAND, Ore.—A Portland resident and purveyor of Chinese homeopathic remedies pleaded guilty and was sentenced today for selling pangolin scales illegally imported into the U.S., announced Acting U.S. Attorney Scott Erik Asphaug.
Agnes Yu, 53, was sentenced to three years’ federal probation and a $5,000 fine.
“Illegal trafficking poses a grave and persistent threat to wildlife populations across the globe. The purchase or sale of these animals is a serious crime and priority for federal law enforcement,” said Acting U.S. Attorney Asphaug.
“We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said James Ashburner, a Special Agent in Charge for the U.S. Fish and Wildlife Service Office of Law Enforcement. “Trafficking of pangolins, and other protected species, is a huge part of global illegal wildlife trade. The Service will continue to use every tool at its disposal to fight wildlife trafficking and bring to justice the individuals who are depriving our planet of these magnificent creatures for their own profit.”
According to court documents, Yu and her husband operated Wing Ming Herbs, a store selling Chinese homeopathic remedies and other merchandise in Southeast Portland. On December 7, 2003, U.S. Customs and Border Protection personnel screened Yu and her husband at the U.S.-Canada border. The inspection recovered 10 dried sea snakes and 49 dried big-toothed sea snakes. As a result of this encounter, U.S. Fish and Wildlife Service sent the Yus a letter informing them about federal laws and regulations governing the import and export of wildlife into and out of the U.S, including the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES lists each of the wildlife species whose trafficking it regulates under one of three appendices, with the most endangered and protected listed in Appendix I.
On November 14, 2017, an undercover Postal Inspector with the U.S. Postal Inspection Service went to Wing Ming and spoke with Yu in Chinese. The inspector covertly recorded and videotaped the meeting. In the course of their transaction, Yu sold the inspector thirty grams of pangolin scales for approximately $165. Personnel at the U.S. Fish and Wildlife Service National Fish and Wildlife Forensics Laboratory later confirmed the scales had been taken from a pangolin, a species of scaled anteater-like mammals endemic to Asia and sub-Saharan Africa. All species of pangolins (which form the genus Manis) are listed in CITES Appendix I, meaning that all commercial trafficking in pangolins is prohibited by the Convention.
Yu was aware of U.S. and foreign restrictions on the import, export, and sale of CITES-listed plants and wildlife but did not comply with those restrictions. Yu repeatedly exported American ginseng to customers in China in 2017 and 2018. American ginseng is listed on CITES appendix II, requiring exporters to obtain and ship such ginseng with a valid CITES certificate. Neither Yu nor Wing Ming Herbs procured such certificates.
On July 24, 2018, an undercover agent with the U.S. Fish and Wildlife Service went to Wing Ming Herbs and purchased giant sea horses, which are protected by CITES appendix II and fourteen shark fins, four of which originated from scalloped hammerhead sharks, which are protected by the Endangered Species Act (ESA). On the same date, the U.S. Fish and Wildlife Service conducted a search warrant at Wing Ming Herbs and seized additional pangolin scales, ground Asian elephant ivory which is protected by CITES Appendix I and ESA, eleven penises and fifteen gall bladders of red deer which are protected by ESA, and giant devil ray which is protected by CITES Appendix II. Yu agreed to abandon all the wildlife seized in the search warrant, which included thousands of additional wildlife items.
On March 22, 2021, Yu was charged by criminal information with recklessly selling pangolin illegally imported into the U.S. in violation of CITES.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement with assistance from the U.S. Postal Inspection Service, the National Oceanic and Atmospheric Administration, the U.S. Department of Agriculture, Plant Protection Quarantine, and the Oregon State Police. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Click here for a Simplified Chinese translation of this press release Confiscated dried sea horses Confiscated fried pangolin scales Confiscated Asian elephant ivory powder Confiscated dried shark fins