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Friday 9 April 2021
Two Nicaraguan Narcotic Smugglers Apprehended off the Coast of Columbia, in the Pacific Ocean Charged with Possessing More Than 3500 pounds of Marijuana on VesselRead the Press Release
St. Croix, USVI – Jonny Cadena Osorio and Morlin Moises Jaenstchke Calero, both of Nicaragua were charged with Conspiracy to Possess and Possession of a Controlled Substance with Intent to Distribute on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced.
The court filings allege that on March 27, 2021, the defendants were on board a vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. The vessel was sighted approximately 92 nautical miles off the coast of Isla De Malpelo, Colombia. The vessel did not have any display indicating its nationality.
A USCG helicopter reported packages being jettisoned from the vessel prior to its stop. Packages recovered from the ocean yielded 35 bales of suspected marijuana, an at-sea-weight of approximately 3,500 pounds.
The defendants made their initial appearance in the Southern District of Florida on April 8, 2021. They are being held on $250,000 bond and will later be transported to the District of the Virgin Islands for prosecution.
A criminal complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the United States Coast Guard and the Drug Enforcement Administration.
Two Mexican Nationals and Eight U.S. Citizens Indicted on Federal Drug ChargesRead the Press Release
ANCHORAGE - A federal grand jury in Anchorage returned an indictment that was unsealed this week charging two Mexican nationals and eight U.S. citizens for their roles in a drug trafficking organization.
Mexican National Rene Pompa-Villa, Christopher Pompa-Villa, Mexican National Victor Pompa-Villa, Carolos Camacho, Heydimar Marrero, Kimberly Mackey, Dustin Noonan, Tyler Landroche, Kyle Redpath and Jessica Twigg were indicted on multiple charges of distribution and intent to distribute heroin, methamphetamine and fentanyl powder in a multi-state operation. Nine of the 10 individuals were arrested on April 7 – 8 and are currently awaiting arraignments. Victor Pompa-Villa remains at large.
According to court documents, Rene Pompa-Villa and Christopher Pompa-Villa are the alleged ring leaders of a lucrative drug trafficking and distribution organization in Anchorage and in Arizona, California, Massachusetts, Michigan, Nevada, New Mexico, New York, Ohio and Pennsylvania. Beginning in March 2018 through October 2020, they regularly mailed large amounts of drugs to distributors throughout the country. They also deposited hundreds of thousands of dollars of drug proceeds into various bank accounts. During the nearly three-year investigation, law enforcement officers recovered about six kilograms of heroin, four kilograms of methamphetamine and four kilograms of fentanyl.
If convicted, the individuals face a maximum sentence of lifetime in prison, up to a lifetime of supervised release and a fine of up to $10 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the indictment announcement today.
The U.S. Postal Inspection Service (USPIS); U.S. Department of Drug Enforcement Administration (DEA); the Internal Revenue Service (IRS); Alaska State Troopers and the Anchorage Police Department are investigating the case. The U.S. Marshals had a significant role in making the arrests and the U.S. Attorney’s Offices in Tucson and San Diego played a critical role in the indictment of this case.
Assistant U.S. Attorneys Christopher D. Schroeder, Kelly Cavanaugh and Karen Vandergaw are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Fruit Belt Gang Members Plead Guilty to Gun ChargeRead 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 Antwaine Parker, 28, and Michael Woods, 32, both of Buffalo, NY, each pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to being a felon in possession of a firearm. Each faces a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that since August 2019, the FBI’s Safe Streets Task Force has been investigating the Fruit Belt Gang, whose members are allegedly actively engaged in the distribution of narcotics, firearms offenses, and gang activity. On July 1, 2020, Central Park Gang (CPG) member Shariff Jackson was murdered in Buffalo, and investigators believe that members of the Fruit Belt Gang were involved with Jackson's murder.
On July 4, 2020, defendants Parker and Woods were shot on Sycamore Avenue in Buffalo. Woods, who was shot in the head and spine, drove himself to the hospital, after throwing a gun from the scene. A 9mm handgun was recovered on the roof of a nearby building. Woods told investigators that he was driving in the area with an unnamed person when he was shot; he would not provide any additional information. Investigators believe the shooting could be the result of rival gang activity between CPG and the Fruit Belt.
In July 2020, both Woods and Parker posted photographs of themselves possessing firearms on social media accounts associated with them. Woods appeared to possess one gun, while Parker appeared to possess two guns.
On July 14, 2020, investigators, fearing potential violence in connection with it, conducted surveillance at the funeral of Shariff Jackson. At the same time, they also conducted surveillance of defendant Parker, who was in the vicinity of 28 Burnie Lane in the McCarley Gardens Apartments. During the surveillance, Woods was observed driving to the area were Parker was. After talking with Parker, Woods left the area. A short time later, a Buffalo Police Officer initiated a traffic stop of Woods’ vehicle. Woods told the officer that he had two guns in the vehicle and gave consent to search the vehicle. Officers recovered two loaded handguns. Woods was taken into custody and the handguns were seized. Subsequently, defendant Parker left the McCarley Gardens Apartments, and the Buffalo Police conducted a traffic stop. Parker’s vehicle, which had invalid license plates, was impounded, and Parker was ticketed for various vehicle and traffic violations. Investigators then searched 28 Burnie Lane and recovered two firearms in the basement. Investigators believe the two firearms seized are the same weapons depicted in the social media photo showing Parker with two firearms.
In April 2014, Parker was convicted in state court of Criminal Possession of a Weapon and sentenced to serve 42 months in prison. In March 2012, Woods was convicted in state court of Attempted Criminal Possession of Controlled Substances and sentenced to serve five years’ probation. In addition, Woods was sentenced in July 2015 to serve 84 months in prison after being convicted of possession of a firearm in furtherance of drug trafficking and being a felon in possession of a firearm. As a result, both defendants are legally prohibited from possessing a firearm.
The pleas are the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Erie Crime Analysis Center, under the direction of Director Jamie Giammaresi.
Parker and Woods are each scheduled to be sentenced on August 3, 2021, before Judge Sinatra.
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Two Essex County Men Arrested for Fraudulent Debit Card SchemeRead the Press Release
NEWARK, N.J. – Two Essex County men were arrested today for their roles in a fraudulent debit card scheme, Acting U.S. Attorney Rachael A. Honig announced.
Alateef Perry, 43, of Newark, and Rajohn Dawkins, 25, of Irvington, New Jersey, are charged by complaint with conspiracy to commit access device fraud. Both defendants are scheduled to make initial appearances this afternoon by videoconference before U.S. Magistrate Judge Michael A. Hammer.
According to documents filed in this case and statements made in court:
From July 2019 through March 2020, Perry and Dawkins fraudulently used debit cards in the names of other individuals, without the cardholders’ consent or knowledge, to purchase diesel fuel for commercial truck drivers in exchange for cash. Perry and Dawkins met commercial truck drivers at multiple gas stations in New Jersey, including gas stations located in Hanover and Middlesex. Perry and Dawkins used the unauthorized debit cards to fill the drivers’ commercial trucks with diesel fuel. The truck drivers then typically paid Perry and Dawkins a fraction of the fuel’s purchase price in cash, which Perry and Dawkins pocketed. Perry and Dawkins used over 500 unauthorized debit cards and ultimately stole over $220,000.
The charge of conspiracy to commit access device fraud carries a maximum potential sentence of five years in prison and a maximum potential fine of $250,000, or twice the gross pecuniary gain or loss from the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrests. She also thanked inspectors of the U.S. Postal Inspection Service – Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins; the Township of Hanover Police Department, under the direction of Chief Mark D. Roddy, and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with this investigation.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Truxton Woman Sentenced to 31 Months for ArsonRead the Press Release
PHOENIX, Ariz. – Yesterday, Angelica Nebria Malena Chalepah, 21, of Truxton, Arizona, was sentenced by U.S. District Judge John J. Tuchi to 31 months in prison, followed by three years of supervised release. Chalepah previously pleaded guilty to Arson.
On March 18, 2019, Chalepah set fire to a duplex residence located on the Havasupai Indian reservation. Chalepah had become angry with residents of the home and set it on fire after an argument, burning it to the ground. The two families who resided in the duplex were not home during the fire.
The victims are enrolled members of the Havasupai Indian Tribe. Chalepah is an enrolled member of the Wichita and Affiliated Tribes.
The Bureau of Indian Affairs – Office of Justice Services and the Federal Bureau of Investigation conducted the investigation in this case. Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-8227-PCT-JJT
RELEASE NUMBER: 2021-024_Chalepah# # #
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.Three Men Indicted for $30 Million Foreign Exchange Fraud SchemeRead the Press Release
A federal grand jury in the Southern District of Florida returned an indictment Thursday charging two U.S. citizens and a Dutch national with conducting a foreign exchange trading scheme to steal $30 million from their investor victims.
According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, Michael Dion, 49, of Orlando, Florida, and Emade Echadi, 41, a resident of the Netherlands, allegedly devised a scheme in which Dion and Gallagher would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on fabricated prior trading results. The defendants allegedly told the victims that their funds would be traded using an online trading platform provided by Echadi’s company, IB Capital. However, according to the indictment, Gallagher, Dion, and Echadi instead were working together to steal the victim investors’ money. In May 2012, they allegedly executed their scheme by intentionally creating losing trades for the investors and stole $30 million from their victims. After fabricating the massive trading loss, the defendants allegedly concealed the scheme from victims by creating fraudulent trading records and then routed the stolen money through shell companies they had set up all over the world.
The defendants are charged with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. If convicted, the defendants face a maximum penalty of five years in prison for conspiracy to commit securities fraud and 20 years in prison for each of the other charges. 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, and Inspector in Charge Delany E. De Leon-Colón of the U.S. Postal Inspection Service made the announcement.
Trial Attorneys Brittain Shaw and Vasanth Sridharan of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Defendants Plead Guilty in Virtual Education Fraud CaseRead the Press Release
Montgomery, Alabama – On Thursday, April 8, 2021, three defendants pleaded guilty to conspiring to defraud the Alabama State Department of Education (ASDE) by falsely inflating the number of students enrolled in public virtual schools, announced the United States Attorney’s Office for the Middle District of Alabama.
The defendants who pleaded guilty are: (1) Thomas Michael Sisk, 55, of Toney, Alabama and formerly the superintendent of LCS; (2) Gregory Earl Corkren, 56, of Tuscaloosa, Alabama; and (3) David Webb Tutt, 61, of Uniontown, Alabama.
The indictment charges that the superintendents of the Athens City Schools district (ACS) and the Limestone County Schools district (LCS) conspired to fraudulently include in public virtual schools students who were in reality full-time students of private schools located in other parts of the state. As a result of reporting these fraudulently enrolled students, districts received payments from Alabama’s Education Trust Fund as if the students actually attended public schools. The various defendants then received, for their own personal use, portions of the state money. The defendants skimmed the state money through direct cash payments and through payments to third-party contractors owned by the various co-conspirators.
To obtain private school student information for use in the scheme, the defendants offered various benefits to private schools, most of which were located in Alabama’s Black Belt region. Those benefits included: laptop computers, access to online curriculum, standardized testing, and monetary payments. The students whose identities were used in the scheme had little to no connection to the public school districts. Those students continued to attend brick-and-mortar private schools each day; they continued to participate in private school athletics; and their parents continued to pay tuition to the private schools.
During his plea hearing, Sisk admitted that, in 2016, his co-defendant, William L. “Trey” Holladay, III, then the superintendent of neighboring ACS, suggested that Sisk could obtain more students for his virtual school by contracting with a company owned by Holladay’s friend, Corkren. Sisk admitted that he and Holladay were trying to add students to their enrollments to offset local tax revenue that was being lost to neighboring school districts. Sisk testified that when Holladay referred him to Corkren, Holladay suggested to him that Corkren would also be willing to make payments to Sisk personally. According to Sisk, he then contracted with Corkren and Corkren provided private school student information to be used to falsely enroll the students in the Limestone County Virtual School. These students remained falsely enrolled during the 2016-2017 school year. Throughout the year, Holladay assisted Sisk in making sure that the scheme went undetected. Additionally, Sisk admitted that he directed Corkren to pay approximately $13,000.00 to a charity with which he was affiliated. That money eventually found its way to Sisk, and Sisk used it for personal expenses including trips to New Orleans and Denver.
Corkren admitted in his guilty plea that in around 2016, he agreed with Trey Holladay to form a company and then serve as an intermediary between ACS and the various private schools. Corkren acknowledged providing computers, checks, and other benefits to the private schools in exchange for student information. He also stated that, at the direction of Trey Holladay, he prepared false documents regarding the private school students’ performances in virtual courses. The documents were false in that they showed that the students were completing virtual courses when in fact the students were not doing so and were instead taking traditional courses. Trey Holladay then submitted these false documents to the ASDE. For his work, Corkren explained that he received per-student payments from ACS and the other public school districts. Corkren then gave cash payments to Trey Holladay and co-defendant William Richard “Rick” Carter. Corkren described meeting Carter in Troy, Alabama on one occasion in June of 2017 and giving Carter cash on that day. Corkren’s plea agreement states that Corkren personally received in excess of $500,000.00 from the scheme. Additionally, over the course of the conspiracy, he paid Trey Holladay approximately $90,000.00 in cash and he paid Rick Carter approximately $21,000.00 in cash.
During his plea hearing, Tutt stated that, in 2017, Trey Holladay invited him to participate in the conspiracy by recruiting additional private schools to provide student information. Tutt agreed to do so. Tutt testified that he received monthly payments from Corkren’s company in the amount of $33,000.00. At the direction of Trey Holladay, he paid half of each payment, or $16,500.00, to a company owned by Trey Holladay’s wife, co-defendant Deborah Irby Holladay. Tutt did not know what work Deborah Holladay was doing for this money.
At some upcoming date, the defendants will be sentenced. Each of the three defendants listed above pleaded guilty to conspiring to commit offenses against the United States and, as a result, faces a maximum five-year sentence. Additionally, Corkren pleaded guilty to aggravated identity theft and could receive an additional two-year sentence for that offense.
The remaining individuals—Trey Holladay, Deborah Holladay, and Rick Carter—are scheduled for a trial beginning on September 13, 2021 in Montgomery. An indictment merely alleges that a crime has been committed. These remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Education’s Office of Inspector General. The Alabama Attorney General’s Office also assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross, Alice S. LaCour, and Brett J. Talley are prosecuting the case.
Three Charged in Connection with Louisville Carjacking and Child ExploitationRead the Press Release
LOUISVILLE, Ky. – Acting United States Attorney Michael A. Bennett announced today that three Louisville, Kentucky, men have been charged by a federal Grand Jury in a six-count superseding indictment.
“I commend the FBI, HSI, and LMPD for their work in identifying, investigating, and apprehending the defendants who now stand charged with serious violations of federal law,” said Acting U.S. Attorney Bennett.
“This investigation highlights the efforts of the Violent Crime Task Force in identifying, investigating, and ultimately arresting our most violent offenders,” said FBI Louisville Special Agent in Charge Robert Brown. “The defendants in this case are alleged to have taken advantage of innocent bystanders, including children, for their own personal gain. This is just one example of how FBI Louisville is working diligently with our partners to protect the public from violent crime.”
According to the superseding indictment returned on February 23, 2021, Bruno Castillo-Juarez, 19, has been charged with carjacking a Honda Civic on August 27, 2020, and brandishing a firearm in furtherance of the carjacking. Castillo-Juarez was also charged with receiving and distributing child pornography on that same day.
The Grand Jury also charged Ruben Hernandez, 19, with production of child pornography, and Darrin Ammons, 51, with receipt of child pornography.
The charge of carjacking carries a term of imprisonment of no more than 15 years; brandishing a firearm in relation to a crime of violence carries a term of imprisonment of no less than 7 years and no more than life; production of child pornography carries a term of no less than 15 years and no more than 30 years; and receipt and/or distribution of child pornography carries a term of imprisonment of no less than 5 years and no more than 20 years.
This case is being prosecuted by Assistant United States Attorneys Ann Marie Blaylock and A. Spencer McKiness. The FBI Louisville Field Office, Homeland Security Investigations (HSI), and the Louisville Metro Police Department (LMPD) are investigating this case.
This case falls with the purview of the Violent Crime Task Force. The partners on the task force include: The FBI, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), HSI, LMPD, the Kentucky State Police, the Jefferson Co. Sheriff’s Office, and the United States Attorney’s Office.
This case was also brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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The indictment of a person by a Grand Jury is an accusation only and that
person is presumed innocent until and unless proven guilty.###
Third Anniversary of "Operation 922" Sees 149 Defendants Charged with Federal Crimes in Domestic Violence-Derived CasesRead the Press Release
OKLAHOMA CITY — This week, five defendants were charged in separate and unrelated cases, demonstrating the continued commitment to, and benefit of, the Western District of Oklahoma’s "Operation 922" domestic violence initiative, announced Acting U.S. Attorney Robert J. Troester.
Nationally, these prosecutions are part of Project Safe Neighborhoods (PSN), the Department of Justice’s violent crime reduction initiative. Through PSN, partnering law enforcement agencies identify the most pressing violent crime problems in communities and develop comprehensive solutions for lasting crime reductions.
"Operation 922" is the local implementation of the PSN initiative in the Western District of Oklahoma. Specifically, "Operation 922" focuses on domestic violence abusers who are found in possession of firearms or ammunition. This initiative stems from the federal prosecutors’ use of Title 18, United States Code Section 922, in which Congress has prohibited the possession of firearms and ammunition by various categories of individuals, such as those who are prior convicted felons, are subject to a victim Protection Order, are previously convicted in any court of a misdemeanor crime of domestic violence, and are unlawfully using or addicted to controlled substances. By targeting the subject matter of domestic abuse and focusing on particularly violent domestic abusers, "Operation 922" does not directly or indirectly target any geographic area, socio-economic status, educational level, or ethnicity, because domestic abuse occurs in all neighborhoods, cities, and rural areas throughout the Western District of Oklahoma, including Indian Country.
This is the third anniversary since "Operation 922" began in March of 2018. Over this period, the U.S. Attorney’s Office has charged 149 defendants from 17 different counties in domestic violence-derived cases. Of those charged cases, 127 defendants have already been convicted or entered guilty pleas. Of those convicted, 98 defendants have been sentenced to an average of 76.5 months in federal prison. As a result, 211 guns and 3,367 rounds of ammunition have been seized from these defendants. Although this initiative targets domestic violence-derived cases, a closer review reflects that one-third of the “Operation 922” defendants charged are affiliated with one of 22 different gangs.
"Operation 922" is the result of a collaborative partnership with law enforcement and non-governmental entities in the Western District of Oklahoma, including the Oklahoma County District Attorney’s Office, Oklahoma City Police Department, United States Marshals Service, Palomar Family Justice Center, Oklahoma County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
"The safety of Oklahoma neighborhoods depends first on the safety in our homes," said Acting U.S. Attorney Troester. "When law enforcement has answered repeated calls for help from domestic violence victims, and the domestic abuser is now in possession of a firearm, that next call to law enforcement may be lifechanging for the victim or the responding officer. That is the crucial point when officers have the opportunity to remove illegally possessed guns from those abusers with a domestic violence history. We are confident that our prosecutions are saving the lives of victims and of officers who are called to respond. I am grateful for the dedicated efforts of Deputy Criminal Chief Lori Hines, who leads this initiative in our office, and our partners with whom we join forces to combat domestic violence throughout Oklahoma."
"Domestic violence impacts all parts of our community and is a priority for the police department," said OCPD Police Chief Wade Gourley. “Without strong partnerships we would be unable to successfully prosecute and reduce the damage caused by violence in the home. Operation 922 has become an extremely valuable resource in dealing with domestic violence and has truly saved lives. When firearms are involved in domestic abuse, statistics show the outcomes are far more likely to be fatal. Through our partnerships and strong support from the Family Justice Center, we protect victims and stop the cycle of violence in the home."
"Operation 922 is an invaluable partnership that is saving lives," said Kim Garrett, CEO of Palomar Family Justice Center. "When abusers are held accountable, it is a powerful message to survivors: you matter, you are valued, we care about your safety. We are proud to be a part of this life-saving collaboration and commend the U.S. Attorney’s office on their commitment to public safety."
This week, federal charges were filed in the following five separate and unrelated cases as part of "Operation 922":
- RYAN EVERETT O’NEAL, 29, of Duncan, was charged by Complaint on April 6, 2021, with assault with a dangerous weapon in Indian County, after allegedly assaulting his girlfriend. If convicted, O’Neal faces up to ten years in federal prison and up to a $250,000 fine, followed by three years of supervised release.
- XAVION RAYELL THOMPSON, 23, of Edmond, was indicted on April 8, 2021, for illegal possession a firearm, while subject to a victim Protection Order issued out of Logan County that restrained him from harassing, stalking, or threatening an intimate partner. If convicted, Thompson faces up to ten years in federal prison and up to a $250,000 fine, followed by three years of supervised release.
- PATRICK SEAN HICKS, 39, of Del City, was indicted on April 8, 2021, for illegal possession a firearm as a convicted felon, and while subject to a victim Protection Order issued out of Oklahoma County that restrained him from harassing, stalking, or threatening an intimate partner. If convicted, Hicks faces up to ten years in federal prison and up to a $250,000 fine, followed by three years of supervised release.
- JUSTIN DALE JACKSON, 32, of Oklahoma City, was indicted on April 8, 2021, for illegal possession of a firearm as a convicted felon, after allegedly threatening his former girlfriend. If convicted, Jackson faces up to ten years in federal prison and up to a $250,000 fine, followed by three years of supervised release.
- GEORGE MORALES SANCHEZ, 41, of Oklahoma City, was indicted on April 8, 2021, for the illegal possession of a firearm as a convicted felon. If convicted, Sanchez faces up to ten years in federal prison and up to a $250,000 fine, followed by three years of supervised release.
The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information.
Texas Man Charged with Intent to Attack Data CentersRead the Press Release
A Wichita Falls man who allegedly plotted to blow up a data center in Virginia has been charged with a malicious attempt to destroy a building with an explosive, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Seth Aaron Pendley, 28, was arrested on Thursday after allegedly attempting to obtain an explosive device from an undercover FBI employee in Fort Worth. He was charged via criminal complaint and made his initial appearance in federal court before U.S. Magistrate Judge Jeffrey Cureton Friday morning.
“We are indebted to the concerned citizen who came forward to report the defendant’s alarming online rhetoric. In flagging his posts to the FBI, this individual may have saved the lives of a number of tech workers,” said Acting U.S. Attorney Prerak Shah. “We are also incredibly proud of our FBI partners, who ensured that the defendant was apprehended with an inert explosive device before he could inflict real harm. The Justice Department is determined to apprehend domestic extremists who intend to commit violence, no matter what political sentiment drives them to do so.”
“The FBI’s highest priority is ensuring public safety and we thoroughly investigate all credible threats,” said Dallas Special Agent in Charge Matthew J. DeSarno. “We continually ask the public to report suspicious or threatening behavior to law enforcement, and in this instance, that vigilance may have prevented injuries and the destruction of property.”
According to the complaint, the investigation began after a concerned citizen contacted the FBI on Jan. 8 about alarming statements posted on MyMilitia.com, a forum dedicated to organizing militia groups.
A user who went by the screenname “Dionysus” stated he was planning to “conduct a little experiment,” that he said would “draw a lot of heat” and could be “dangerous.” When another user asked what outcome Dionysus desired, he responded, “death.”
A confidential source provided the FBI with the user’s email address, which was registered to Mr. Pendley.
A subsequent search of the defendant’s Facebook account showed that he had boasted about being at the U.S. Capitol on Jan. 6.
In private messages, he allegedly told friends that although he did not actually enter the Capitol building, he did reach the “platform,” where he swiped a piece of glass from a broken window and interacted with police. He said he brought a sawed-off AR rifle to D.C., but left the weapon in his car during his movement to the Capitol.
In late January, Mr. Pendley began using Signal, an encrypted messaging app, to communicate with another confidential source. The source told the FBI that Mr. Pendley allegedly stated he planned to use C-4 plastic explosives to attack prominent tech company's data centers in an attempt to “kill of about 70% of the internet.”
On March 31, the confidential source introduced Mr. Pendley to an individual who he claimed was his explosives supplier. In actuality, the man was an undercover FBI employee.
In recorded conversations, Mr. Pendley allegedly told the undercover he planned to attack web servers that he believed provided services to the FBI, CIA, and other federal agencies. He said he hoped to bring down “the oligarchy” currently in power in the United States.
On April 8, Mr. Pendley again met with the undercover FBI employee to pick up what he believed to be explosive devices. (In actuality, however, the undercover gave Mr. Pendley inert devices.) After the agent showed Mr. Pendley how to arm and detonate the devices, the defendant loaded them into his car. Mr. Pendley was then arrested by FBI agents who monitored the delivery of the inert devices.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Pendley is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The FBI’s Dallas Field Office, Wichita Falls Resident Agency and FBI’s North Texas Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorney Robert J. Boudreau of the Northern District of Texas is prosecuting the case with the assistance of Trial Attorney Alexandra Hughes of the National Security Division.
UPDATE (4/14/21): Mr. Pendley has been ordered detained pending trial.
Terrebonne Parish Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that CAESAR RAYMON WILLIAMS, 41, from Terrebonne Parish, was charged in a 5-count indictment by a Federal Grand Jury with distribution of, and possession with the intent to distribute heroin and cocaine base, “crack cocaine,” in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C).
If convicted of these narcotics trafficking charges, WILLIAMS faces up to 20 years imprisonment, up to a $1,000,000 fine, at least three years of supervised release, and a $100 mandatory special assessment.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration, Terrebonne Parish Sheriff’s Office, Houma Police Department, St. Charles Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, St. John Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney Melissa Bücher.
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Suburban Chicago Man Sentenced to More Than 13 Years in Prison for Conspiring to Provide Material Support to ISISRead the Press Release
CHICAGO — A man from a north suburb of Chicago was sentenced today to more than 13 years in federal prison for conspiring to provide material support to the Islamic State of Iraq and al Sham, a foreign terrorist organization also known as ISIS.
U.S. District Judge Andrea R. Wood imposed the 162-month sentence on EDWARD SCHIMENTI, 39, of Zion, Ill. A jury in 2019 convicted Schimenti on one count of conspiring to provide material support and resources to ISIS, and one count of making false statements to the FBI.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Zion, Ill., Police Department provided valuable assistance. The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state, and local law enforcement agencies. The government was represented by Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois, and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section.
Evidence at trial revealed that Schimenti advocated on social media for violent extremism in support of the terrorist group. In 2015, Schimenti began meeting with undercover FBI employees and individuals who, unbeknownst to Schimenti, were cooperating with law enforcement. During the meetings, Schimenti discussed his devotion to ISIS and his commitment to ISIS principles.
In 2017, Schimenti furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas. On April 7, 2017, Schimenti drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.
A co-defendant, JOSEPH D. JONES, 39, of Zion, Ill., was also convicted of the conspiracy charge. Judge Wood last month sentenced Jones to 12 years in federal prison.
Statement by Attorney General Merrick B. Garland on the President’s FY22 Discretionary Funding RequestRead the Press Release
The Biden-Harris Administration today submitted to Congress the President’s priorities for fiscal year 2022 discretionary spending. The funding request invests in the core foundations of our country’s strength and advances key Justice Department priorities, including increasing funding for federal civil rights enforcement, addressing the rise of domestic terrorism, combatting gun violence and reforming criminal justice systems.
“The President’s proposed funding request prioritizes resources the Justice Department needs to advance its mission of ensuring equal justice under law,” said U.S. Attorney General Merrick B. Garland. “This proposal makes critical investments in a wide range of departmental priorities, including strengthening civil rights enforcement and defending against domestic and international terrorism.”
The President’s 2022 discretionary request:
- Reinvigorates Federal Civil Rights Enforcement. In order to protect marginalized communities, the discretionary request invests $209 million, an increase of $33 million, in the department’s Civil Rights Division, Community Relations Service, and other programs. These funds would support: police reform; the prosecution of hate crimes across the nation, and especially in communities uniquely impacted by bias, xenophobia, and driven by the COVID-19 pandemic crisis, such as Asian-American communities; the enforcement of voting rights in the Civil Rights Division; mediation and conciliation services for community conflicts arising from discriminatory practices; and other activities.
- Addresses Domestic Terrorism. The discretionary request provides an additional $101 million to address the rising threat of domestic terrorism while respecting civil rights and civil liberties. This increase includes $45 million for the Federal Bureau of Investigation (FBI) for domestic terrorism investigations, $40 million for the U.S. Attorneys to manage increasing domestic terrorism caseloads, $12 million for additional response capabilities at the U.S. Marshals Service, and $4 million to the National Institute of Justice (NIJ) to support research on domestic terrorism threats. These investments complement funding provided for the Department of Homeland Security (DHS).
- Combats the Gun Violence Public Health Epidemic. The discretionary request includes $2.1 billion, an increase of $232 million above the 2021 enacted level, for DOJ to address the gun violence public health crisis plaguing communities across the nation. Investments include $401 million in state and local grants, an increase of $162 million or 68 percent above the 2021 enacted level.
- Invests in Community Policing, Police Reform, and Other Efforts to Address Systemic Inequities. Policies that create strong, positive ties between law enforcement and the communities they serve are critical to making the nation’s communities safer and to rooting out systemic inequities in the justice system. The discretionary request provides $1.2 billion, an increase of $304 million, to support a range of programs supporting police-community relationships, including the Community Oriented Policing Services (COPS) hiring program and programs that support community-oriented policing policies and practices, such as racial sensitivity and implicit bias training and additional support for hate crime training and police innovation programs.
- Invests in Efforts to End Gender-Based Violence. The discretionary request proposes a historic investment of $1 billion to support Violence Against Women Act (VAWA) programs at DOJ, a $487 million or 95-percent increase over the 2021 enacted level. This funding supports substantial increases for longstanding VAWA programs, in addition to funding for new programs to expand restorative justice efforts, protect transgender victims, and support women at Historically Black Colleges and Universities (HBCUs), Hispanic-Serving Institutions (HSIs), and Tribal Colleges.
These discretionary investments reflect only one element of the President’s broader agenda. In the coming months, the Administration will release the President’s Budget, which will present a unified, comprehensive plan to address the overlapping crises we face in a fiscally and economically responsible way.
For more information on the President’s FY22 discretionary funding request, please visit: https://www.whitehouse.gov/omb/FY-2022-Discretionary-Request/.
Southeast Alabama Community Action Partnership, Inc. Agrees to Pay $30,000 and Implement Compliance Improvements to Resolve Claims it Failed to Return Community Service Grant Funds to the United StatesRead the Press Release
MONTGOMERY & PHILADELPHIA – Acting United States Attorneys Sandra J. Stewart and Jennifer Arbittier Williams jointly announced that Southeast Alabama Community Action Partnership, Inc. (“SEACAP”) has agreed to pay $30,000 and to implement enhanced compliance measures to resolve claims arising from SEACAP’s administration of community service grants funded through AmeriCorps (formerly the Corporation for National and Community Service).
For years, SEACAP has administered multiple grants in AmeriCorps’ Senior Corps program. These grants included the Foster Grandparent Program, which places seniors in school and community settings to serve youth with exceptional needs. Like other federal grant recipients, SEACAP is subject to various administrative requirements, including an annual audit by an outside accountant.
The settlement resolves claims that SEACAP improperly retained federal funds even after being told by its outside accountant that it needed to return those funds to the United States. After SEACAP received a Civil Investigative Demand for information relating to its grant administration, it actively cooperated with the United States’ investigation, including by producing detailed financial and administrative documentation. The United States reached an ability-to-pay agreement with SEACAP to repay what it could without using federal funds and to significantly enhance its compliance efforts.
“Each day, the Southeast Alabama Community Action Partnership supports impoverished Alabamans, helping families to find food, obtain school supplies, and meet unexpected utility and other costs. The federal government relies on its non-profit partners to help ensure that federal grant funds are being used to assist their communities,” said Acting U.S. Attorney Stewart. “Today’s settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance conditions and return funds to the government to help others when those conditions require them to do so.”
“Every federal grantee, including community service organizations, is required to honestly and openly account for federal funds. This obligation is at the heart of the relationship between the United States and federal grantees,” said Acting U.S. Attorney Williams. “Federal grantees are obliged to return funds to the United States if they determine that they have not been spent properly or fully drawn down. Strict compliance with grant requirements ensures that federal funds reach those who need them most.”
“SEACAP learned from its accountants that the organization owed money to CNCS (now known as AmeriCorps), but neither returned the money nor informed CNCS of the debt. Wrongfully retaining those funds prevented another organization from using them to meet the needs of its community,” said Deborah J, Jeffrey, Inspector General of AmeriCorps. “We intend SEACAP’s new integrity measures to strengthen the organization and ensure that this never happens again, and we appreciate the work of our partners at the U.S. Attorney’s Offices in the Eastern District of Pennsylvania and Middle District of Alabama for holding SEACAP accountable and ensuring the integrity of this AmeriCorps program.”
Acting United States Attorneys Stewart and Williams also praised SEACAP’s agreement to enhance its compliance program: “We commend Southeast Alabama Community Action Partnership, Inc. for taking the serious steps necessary to make sure this issue never recurs. We hope the compliance measures it has undertaken will be a model for other grantees looking to meet their responsibilities to the United States.”
This investigation was conducted jointly by the United States Attorney’s Offices for the Eastern District of Pennsylvania and Middle District of Alabama with the AmeriCorps Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Bryan C. Hughes of the Eastern District of Pennsylvania and Stephen Wadsworth of the Middle District of Alabama handled the investigation and settlement. This case was initiated as a part of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force focus on grant fraud.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
JENNIFER CRANDALL
Media Contact
215-861-8300
UNITED STATES ATTORNEY’S OFFICE
EASTERN DISTRICT OF PENNSYLVANIA
Suite 1250, 615 Chestnut Street
Philadelphia, PA 19106DOUGLAS HOWARD
Media Contact
334-551-1706
UNITED STATES ATTORNEY’S OFFICE
MIDDLE DISTRICT OF ALABAMA
131 Clayton Street
Montgomery, AL 36104Southeast Alabama Community Action Partnership, Inc. Agrees to Pay $30,000 and Implement Compliance Improvements to Resolve Claims It Failed to Return Community Service Grant Funds to the United StatesRead the Press Release
PHILADELPHIA and MONTGOMERY – Acting United States Attorneys Jennifer Arbittier Williams and Sandra Stewart jointly announced that Southeast Alabama Community Action Partnership, Inc. (“SEACAP”) has agreed to pay $30,000 and to implement enhanced compliance measures to resolve claims arising from SEACAP’s administration of community service grants funded through AmeriCorps (formerly the Corporation for National and Community Service).
For years, SEACAP has administered multiple grants in AmeriCorps’ Senior Corps program. These grants included the Foster Grandparent Program, which places senior citizens in school and community settings to serve youth with exceptional needs. Like other federal grant recipients, SEACAP is subject to various administrative requirements, including an annual audit by an outside accountant.
The settlement resolves claims that SEACAP improperly retained federal funds even after being told by its outside accountant that it needed to return those funds to the United States. After SEACAP received a Civil Investigative Demand for information relating to its grant administration, it actively cooperated with the United States’ investigation, including by producing detailed financial and administrative documentation. The United States reached an ability-to-pay agreement with SEACAP to repay what it could without using any other federal funds it has received for its operations, and to significantly enhance its compliance efforts.
“Every federal grantee, including community service organizations, is required to honestly and openly account for federal funds. This obligation is at the heart of the relationship between the United States and organizations that receive federal grant money,” said Acting U.S. Attorney Williams. “Federal grantees are obliged to return funds to the United States if the funds have not been spent properly or fully drawn down. Strict compliance with grant requirements ensures that federal funds reach those who need them most.”
“Each day, the Southeast Alabama Community Action Partnership supports impoverished Alabamans, helping families to find food, obtain school supplies, and meet unexpected utility and other costs. The federal government relies on its non-profit partners to help ensure that federal grant funds are being used to assist their communities,” said Acting U.S. Attorney Stewart. “Today’s settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance conditions and return funds to the government to help others when those conditions require them to do so.”
“SEACAP learned from its accountants that the organization owed money to CNCS (now known as AmeriCorps), but neither returned the money nor informed CNCS of the debt. Wrongfully retaining those funds prevented another organization from using them to meet the needs of its community,” said Deborah J, Jeffrey, Inspector General of AmeriCorps. “We intend SEACAP’s new integrity measures to strengthen the organization and ensure that this never happens again, and we appreciate the work of our partners at the U.S. Attorney’s Offices in the Eastern District of Pennsylvania and Middle District of Alabama for holding SEACAP accountable and ensuring the integrity of this AmeriCorps program.”
Acting United States Attorneys Williams and Stewart also praised SEACAP’s agreement to enhance its compliance program: “We commend Southeast Alabama Community Action Partnership, Inc. for taking the serious steps necessary to make sure this issue never recurs. We hope the compliance measures it has undertaken will be a model for other grantees looking to meet their responsibilities to the United States.”
This investigation was conducted jointly by the United States Attorney’s Offices for the Eastern District of Pennsylvania and Middle District of Alabama with the AmeriCorps Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Bryan C. Hughes of the Eastern District of Pennsylvania and Stephen Wadsworth of the Middle District of Alabama handled the investigation and settlement. This case was initiated as a part of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force focus on grant fraud.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
South Florida Man Indicted for Tax FraudRead the Press Release
Miami, Florida – A South Florida man appeared today before a federal magistrate judge in Miami to face an indictment charging him with conspiring to defraud the Internal Revenue Service.
According to the indictment, Erick Calderon 40, of Westlake, Florida, owned a construction company, SUTS Contractors, Inc. and was employed at two other construction companies, Global Drywall Services, LLC. and IWES Contractors, Inc. Between February 2015 and September 2015, Calderon and others paid these companies’ construction workers in cash through a shell company, El Valle, says the indictment. El Valle fraudulently posed as a subcontractor of SUTS, Global Drywall, and IWES, which allowed those companies to write checks to El Valle for services purportedly performed. According to the indictment, the checks were then cashed at various check cashing stores in Miami-Dade County and the cash was returned to Calderon, who in turn, paid the companies’ workers in cash. It is alleged that the scheme minimized the payment of federal employment taxes by SUTS, Global Drywall, and IWES and caused them to underreport wages performed on construction jobs by these construction companies to the IRS.
If convicted, Calderon faces up to five years of imprisonment.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office, and Rafiq Ahmad, Special Agent in Charge of the United States Department of Labor, Office of the Inspector General, made the announcement.
This case is being investigated by IRS-CI in Miami and DOL-OIG. The case is being prosecuted by Assistant United States Attorney Lois Foster-Steers.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20183.
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Sioux Falls Man Charged with Multiple Fraud Counts regarding Pandemic Relief ProgramsRead 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 Bank Fraud, Attempted Bank Fraud, False Statement to a Financial Institution; Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, and False Statement.
James Bunker, d/b/a Genuine Builders, Inc., d/b/a Tri-State Ag Services, LLC, d/b/a Falls Framing, LLC, and d/b/a No. 18, LLC, 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 30 years in federal prison and/or a $1,000,000 fine, five years of supervised release, and up to $1,200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Bunker defrauded or attempted to defraud banks in connection with his efforts to acquire loans under the Paycheck Protection Program, or the Main Street Lending Program that relate to pandemic relief programs. The Indictment also alleges that Bunker submitted or caused to be submitted false financial documents to the banks and lied on loan forgiveness applications submitted to the U.S. Small Business Administration.
The charges are merely accusations and Bunker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Attorney’s Office. The Special Inspector General for Pandemic Recovery is also assisting in this case. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Bunker was released on bond pending trial which has been set for June 15, 2021.
Sault Ste. Marie Man Sentenced to 30 Years for Abusive Sexual Contact with a MinorRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Ralph Fletcher Hepner, Jr., 53, of Sault Ste. Marie, Michigan, was sentenced in U.S. District Court to 360 months’ imprisonment for abusive sexual contact with a child under the age of twelve. In addition to the prison term, U.S District Judge Paul L. Maloney ordered Hepner to serve five years of supervised release following his release from prison and to have no contact with the victim.
“The federal penalties for hands-on sexual abuse of a child under twelve are severe because the crime is so awful,” said U.S. Attorney Birge. “While children are resilient in many ways, they are robbed of their innocence and the trauma from this sort of offense endures for years. This sentence sends a strong deterrent message and will keep the victim and other potential victims safe from Hepner for years.”
The charge arose from an incident in early 2018, in which Hepner sexually abused a nine-year-old child at his home on the Sault Ste. Marie reservation. Sault Ste. Marie law enforcement became aware of the incident when the victim reported the abuse to a relative. After an extensive investigation, a federal grand jury indicted Hepner. He entered a plea of guilty to the abusive sexual contact charge on December 14, 2020.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Sault Ste. Marie Tribal Police and the FBI investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
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Russell County Man Sentenced for Possessing, Selling ExplosivesRead the Press Release
ABINGDON, Va. – A Castlewood, Virginia man, who illegally possessed military grade explosives, was sentenced yesterday in U.S. District Court in Abingdon to 72 months in federal prison, Acting United States Attorney Daniel P. Bubar and Charlie Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division (ATF) announced.
Thomas Blake Hill, 21, pleaded guilty in November 2020 to two counts of possessing and selling explosive materials that had been shipped in interstate or foreign commerce.
Hill, a convicted felon, attempted to trade military grade C-4 explosives M-60 ignitors for methamphetamine.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Virginia State Police and the Sheriff’s Offices of Russell and Washington County. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Rotterdam Man Sentenced to 136 Months for Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK - Randy Eignor, age 50, of Rotterdam, New York, was sentenced today to 136 months in prison, to be followed by 15 years of supervised release, for attempted online enticement of a minor.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Eignor admitted that he attempted to entice and coerce an individual, whom he believed to be a 12-year-old girl, to engage in sex. After days of exchanging sexually explicit text messages with the person whom he believed to be a 12-year-old girl, Eignor arranged to meet her in Colonie, where Eignor was arrested on February 12, 2020.
In sentencing Eignor, United States District Judge Mae A. D’Agostino specifically found that Eignor had previously engaged in a pattern of activity involving prohibited sexual conduct, which included his having molested three children placed in his care.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of state and local law enforcement agencies, including the New York State Police, the Colonie Police Department, and the Rotterdam Police Department, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Romanian National Extradited to U.S. for Multi-State ATM Skimming SchemeRead the Press Release
BOSTON – A Romanian national was extradited from Germany to the District of Massachusetts to face racketeering conspiracy charges relating to an ATM skimming operation throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Dragush Nelo Hornea, 26, was charged in a May 2017 indictment on one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (more commonly known as RICO conspiracy) and one count of conspiracy to use counterfeit access devices. Dragush Hornea was detained in federal custody following an initial appearance in federal court in Boston this afternoon.
According to the charging documents, Dragush Hornea was a member of the Hornea Crew (Crew), led by co-conspirators Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts. In total, the skimming activities resulted in hundreds of thousands of dollars in losses.
Specifically, it is alleged that over a period of 18 months, Dragush Hornea and his co-conspirators engaged in a scheme to steal debit card numbers and PINs from unsuspecting ATM customers in Massachusetts, Connecticut, South Carolina, Georgia and other locations within the United States. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The stolen information was then used by Hornea and other coconspirators to clone the victim customers’ debit cards and make unauthorized withdrawals from those victim customers’ bank accounts at ATMs throughout the United States.
Dragush Hornea was charged with 13 co-defendants in a May 2017 indictment. Thus far, all co-defendants have been convicted and those sentenced have received sentences ranging from one year and one day to 65 months in prison.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering activity provides for a sentence of up to 20 years in prison, three years of supervised release, and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of up to five years in prison, three years of supervised release, and fine of $250,000. Sentences are imposed by a federal district court judge based on 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; John Gibbon, U.S. Marshal for the District of Massachusetts; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictments are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rochester Man Arrested, Accused of Setting Off Explosive Devices in A City NeighborhoodRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James A. Pane, 50, of Rochester, NY, was arrested and charged by criminal complaint with using the mails to threaten to attempt to kill, injure, or intimidate or unlawfully damage or destroy property by means of explosive, and mailing threatening communications. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the criminal complaint, between January 20 and February 2, 2021, numerous explosions were heard and seen by neighbors living in the area of Falleson Road in the City of Rochester. After responding to reports of explosions by residents on Leander Road near Falleson Road, the Rochester Fire and Police Departments, on January 23, 2021, responded to the area to investigate what may have caused the explosions. Officers noted that they believed at least one of the explosions took place in front of a residence on nearby Falleson Road. On February 2, 2021, numerous neighbors called 911 around 2:37 a.m., after another boom noise shook the neighboring houses. Investigators obtained doorbell surveillance video from the area and observed a dark-reddish-colored pick-up truck in the area at the time of the explosions. Subsequent investigation determined that a residence on Falleson Road was the target of the explosions. One occupant of the residence told investigators that he had a falling out with a lifelong friend identified as the defendant. A records check determined that Pane drives a red pick-up truck.
Between February 24, 2021, and March 9, 2021, investigators were notified that numerous neighbors in the Falleson Road/Leander Road neighborhood received letters addressed to the “homeowner.” The envelopes were plain white envelopes with no return address. Inside each envelope was a single piece of regular sized white paper with large printed words stating: “I don’t mean to bother you people in this neighborhood. But the little (expletive) crack head at *** Falleson owes me a lot of money for drugs. He is a liar and a thief. He burned down his fathers cottage in the 1000 island for the insurance money, which he was suppose to pay me off with. He didn’t. I will keep throwing bombs off in his yard until he pays.call the cops they won’t catch me.” During the investigation, law enforcement officers recovered a list of addresses from the defendant’s garbage tote. The list included a number of the Falleson and Leander Road residences that received the letters.
On April 8, 2021, a search warrant was executed on Pane’s Harding Road residence and his red pick-up truck. Investigators recovered materials used in assembling the explosive devices. The defendant was arrested following the execution of the search warrants.
Pane made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing on April 13, 2021.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan, the Rochester Fire Department, under the direction of Chief Felipe Hernandez Jr., and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard. Additional assistance was provided by the Buffalo and Syracuse Resident Offices of the ATF.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rineyville Man Sentenced to 10 Years in Federal Prison After Being Caught During Sting OperationRead the Press Release
LOUISVILLE, KY. – Melvin Dowell, 55, previously pled guilty before United States District Judge David J. Hale for attempted online enticement and transfer of obscene material to a minor, announced Acting United States Attorney Michael A. Bennett. Yesterday, Judge Hale sentenced Dowell to 10 years in prison followed by a 10-year term of Supervised Release, ordered payment of a $5,000 Special Penalty Assessment under the Justice for Victims of Trafficking Act, and imposed a $12,000 fine. Dowell will be required to register as a sex offender.
“Outstanding effort by AUSA Lawless and our federal, state, and local law enforcement partners on a successful investigation and prosecution,” said Acting U.S. Attorney Bennett. “I am grateful for their dedication and the work they do to protect the children of the Commonwealth from sexual exploitation and abuse.”
“This case reminds us that predators will use any means necessary to exploit children, and it’s important for parents and caregivers to have conversations with their children about online safety,” said Attorney General Cameron. “I appreciate the work of our Department of Criminal Investigations and our law enforcement partners in identifying and stopping this predator, and I am grateful to Acting U.S. Attorney Bennett and his team for prosecuting the case.”
According to the Plea Agreement, on August 14, 2019, a Detective with the Kentucky Attorney General’s Department of Criminal Investigations posed as a 15-year-old girl. That same day, an unknown subject (later identified as Dowell), reached out to the UC. The two communicated over e-mail and eventually text message. Dowell directed the conversations to a sexual nature. He requested “naked” images of the UC, requested details about her sexual history, sent sexually explicit images of himself, and requested to meet the girl to engage in sex acts.
On August 30, 2019, law enforcement officials agreed to meet Dowell at a predetermined location in Elizabethtown, Kentucky. Dowell continued to communicate with the UC and gave updates to his arrival time while in route. At approximately 6:38 p.m., Dowell stated he had arrived at the location. At the same time, a red Ford Ranger pickup pulled into the driveway of the house where the two had agreed to meet. Dowell then got out of the truck and entered the residence where he was arrested. A pat down search revealed that Dowell had two Skyn brand, non-latex condoms (as discussed during their communications).
After being advised of his constitutional rights, Dowell admitted that he had met a person online that stated they were a minor. He went on to say that he traveled to the location where he was arrested after discussing sex acts with her. He also admitted using the Internet to engage in the conversations via his cell phone. Dowell stated that his cell phones were inside the truck he had driven to the location. Search of the phones under the authority of a search warrant revealed the communications between Dowell and the UC.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The joint investigation was conducted by the United States Secret Service and Kentucky Attorney General’s Office with assistance from the Elizabethtown Police Department, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rhode Island Man Sentenced for Five Bank RobberiesRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for five bank robberies, including one that resulted in a high-speed chase.
Dong Lee, 50, was sentenced by U.S. District Court Judge Richard G. Stearns to 110 months in prison and three years of supervised release. In October 2020, Lee pleaded guilty to five counts of bank robbery. Lee was charged with co-defendant Charles Lamont Wheeler who pleaded guilty and was sentenced to 84 months in prison.
Between Sept. 8, 2018 and Sept. 14, 2018, five banks in the Greater Boston area were robbed. Based on the similarity of the robberies, and the descriptions of the robbers provided by bank tellers, it was determined that the same two individuals were responsible for these robberies. On Sept. 14, 2018, Lee and Wheeler robbed a branch of the Abington Bank in Avon. Later in the day, the defendants robbed a branch of the Crescent Credit Union in Brockton and were both arrested following a high-speed car chase in Attleboro.
Following an investigation, it was determined that Lee and Wheeler were responsible for the robberies of the Santander Bank in Andover on Sept. 8, 2018; Berkshire Bank in Boston on Sept. 8, 2018; Rockland Trust in Braintree on Sept. 12, 2018; Abington Savings Bank in Avon on Sept. 14, 2018; and Crescent Credit Union in Brockton on Sept.14, 2018.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Christopher Mason, Superintendent of the Massachusetts State Police Department; Avon Police Chief Jeffrey J. Bukunt; Brockton Police Chief Emmanuel Gomes; Attleboro Police Chief Kyle P. Heagney; and North Attleboro Police Chief John J. Reilly made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit prosecuted the case.
Repeat Sex Offender Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Anjan Ghosh Tagore, age 48, of Silver Spring, Maryland, to 15 years in federal prison, followed by lifetime supervised release, for receipt of child pornography and 18 months in federal prison for violating his supervised release from a previous federal conviction for possession of child pornography. The sentences were imposed on April 8, 2021 and are to be served consecutively. Judge Messitte also ordered that Tagore forfeit his electronic devices and pay $3,000 in restitution to a child pornography victim. Upon his release from prison, Tagore must also continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Marcus Jones of the Montgomery County Police Department.
According to Tagore’s plea agreement, in February 2019, the United States Probation Office was alerted by monitoring software that Tagore searched for images of “naked/nude/preteen” children on his desktop computer. When confronted about his use of his authorized computer to search for “naked/nude/preteen” children, Tagore denied any knowledge of his computer being used that way, although he later admitted to viewing this material. On April 16, 2019, Montgomery County Police contacted the U.S. Probation regarding a complaint that Tagore had been using a computer at a library in Montgomery County to view nude images of children at a library. Tagore’s U.S. Probation Officer had not authorized Tagore to use a computer or the internet. Furthermore, searching for and viewing images of nude children was a violation of the rules and regulations of Tagore’s sex offender treatment program, nor did Tagore report his questioning by the Montgomery County Police as he was required to do under the terms of his supervised release.
In April 2019, upon questioning by a U.S. Probation officer, Tagore turned over several USB drives and Micro SD cards, which Tagore was not allowed to possess. A search warrant was executed on the digital media and a forensic analysis revealed 105 video files depicting child pornography, including prepubescent children, at least one of which was an infant or toddler.
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, the U.S. Probation and Pretrial Services Office, and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Port Matilda Man Sentenced on Child Pornography ChargesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Dashem, age 36, of Port Matilda, Pennsylvania, was sentenced to 240 months' imprisonment by U.S. District Court Judge Matthew W. Brann for receiving and possessing child pornography. The federal sentence imposed by Judge Brann will be served consecutively to a state prison sentence that Dashem is currently serving.
According to Acting U.S. Attorney Bruce D. Brandler, Dashem pleaded guilty in November 2020 to receiving and possessing child pornography.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Ocean County Man Sentenced to 15 Months in Prison for Cocaine DistributionRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 15 months in prison for possessing cocaine with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Jason Vella, 39, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of possession of cocaine with intent to distribute. Judge Thompson imposed the sentence by videoconference today.
On Sept. 19, 2019, investigators from the Ocean County Prosecutors Office executed a search warrant on Vella’s residence and recovered 150 grams of cocaine, drug paraphernalia, $2,295 in cash and pieces of jewelry.
In addition to the prison term, Judge Thompson sentenced Vella to three years of supervised release.
Acting U.S. Attorney Honig credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley Billhimer, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O=Malley of the U.S. Attorney=s Office’s Organized Crime/Gangs Unit in Newark.
Navajo man sentenced to 12 years in prison for manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Joshua Gutierrez, 22, an enrolled member of the Navajo Nation, was sentenced April 7 in federal court to 12 years in prison for voluntary manslaughter involving the use of a firearm in Indian Country.
Gutierrez pleaded guilty Oct. 15, 2020. According to the plea agreement and other court documents, on March 29, 2020, while visiting the home of his girlfriend and her father, Gutierrez was awakened by an argument. He armed himself with a handgun, walked toward the room where the argument was taking place, and passed one of the men involved in the argument. As they passed each other, the man swung at Gutierrez, and Gutierrez shot the man in the chest, killing him. Gutierrez then pointed the gun at two other people and threatened to shoot them if they did not leave. The incident took place in To’hajiilee, New Mexico, on the Navajo Nation. In his plea, Gutierrez waived any claim of self-defense.
Upon his release from prison, Gutierrez will be subject to three years of supervised release.
The FBI investigated this case with assistance from Navajo Nation Police Department and the Navajo Nation Department of Criminal Investigation. Assistant U.S. Attorney Allison Jaros prosecuted the case.
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Nashua Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – Melvin Stanford, 43, of Nashua, pleaded guilty in federal court to distributing crack cocaine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Stanford distributed crack cocaine and other drugs to various customers in the Nashua area.
Stanford is scheduled to be sentenced on August 3, 2021.
In addition to Stanford, three defendants in this case have pleaded guilty and are awaiting sentencing. The following defendants have already been sentenced to federal prison: Donald Johnson received 42 months; Marvin Morrison received 15 months; Terray Morrison received 120 months; Melvin Nooks received 120 months; and Mallory Nooks received 60 months. One other defendant is awaiting trial.
“This prosecution is another example of our ongoing effort to fight back against drug trafficking in New Hampshire,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute the drug dealers who are damaging our community by selling dangerous drugs.”
“Putting Melvin Stanford and his fellow drug traffickers out of business is a win for the citizens of Nashua. The FBI and our partners will not cede our cities to drug pushers who have no regard for the harm and violence they bring into our neighborhoods,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation with assistance from the New Hampshire State Police, Nashua Police Department, Manchester Police Department, Dover Police Department and Portsmouth Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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NDTX Round up: April 2 – 8Read the Press Release
SENTENCING – MATTHEW ALLEN
On April 6, Matthew Allen, 37, was sentenced to 5 years in federal prison for attempted arson. Allen and another man drove from Houston to Dallas to commit arson of a local night club. Allen and the man wore Tyvek suits and used a crowbar to break into the nightclub. Once inside, Allen poured gasoline throughout the interior of the building. An unknown ignition source lit the gasoline causing Allen to flee the location. Once the fire flamed out, Allen returned to the night club and observed the man whom he arrived with dead from severe burns. Allen retrieved car keys from the man’s motionless body and returned to Houston. The ATF, FBI, Dallas Fire Department, and Dallas Police Department conducted the investigation. Assistant U.S. Attorney Walt Junker prosecuted the case.
GUILTY PLEA – ELLIS CHARLES WHITE
On April 6, Ellis Charles White, 45, plead guilty to conspiracy to possess with intent to distribute a controlled substance. White sold synthetic cannabinoids to an undercover officer at a Dallas area store that had been under investigation due to sustained complaints about drug trafficking and illegal gambling on the premises. Dallas Police executed a search warrant at the store and seized synthetic cannabinoids, methamphetamine, a firearm, and ammunition. White faces up to 20 years in federal prison for his crimes. The DEA and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Myria Boehm prosecuted the case.
SENTENCING – ANTHONY RENEE ESPINOSA
On March 30, Anthony Renee Espinosa, 29, was sentenced to 108 months in federal prison for transporting and shipping child pornography. Espinosa admitted that he has been involved in child pornography offenses for approximately six years and uses websites and mobile to receive, distribute and view child pornography. He also admitted that he joined specific social media groups in which users would share child pornography and would trade material with other Kik users in exchanged for other child pornography. Law enforcement seized Espinosa’s cellular devices and located over 300 images of child pornography. Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Abe McGlothlin prosecuted the case.
Montgomery County Man Pleads Guilty to Scheme to Open Credit Card Accounts at Retail and Telecommunications Stores Using the Stolen Personal Information of Hundreds of VictimsRead the Press Release
Greenbelt, Maryland – Abdel Ndiaye, a/k/a “Pac,” age 32, of Boyds, Maryland, pleaded guilty to the federal charges of conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme in which Ndiaye and his co-conspirators opened credit card accounts at numerous retail and telecommunications stores in order to obtain money and property. The guilty plea was entered on April 7, 2021.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Matthew S. Miller of the United States Secret Service - Washington Field Office; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, from October 2015 to April 2018, Ndiaye conspired with Jonathan Henry, Dominique Davis, and others to obtain real individuals’ personally identifying information (PII), without the victims’ knowledge or permission. Ndiaye not only knew that the personal information belonged to real people, but he also used a minor’s identity to lease his Maryland apartment.
As detailed in the plea agreement, Ndiaye then provided the victims’ PII to other conspirators and Ndiaye and other conspirators used the stolen PII to create fraudulent driver’s licenses. As part of the conspiracy, co-conspirators used the victims’ personal information and fraudulent driver’s licenses to apply for instant credit at various retailors and telecommunications stores in the names of the victims to purchase merchandise and electronics. To evade detection by law enforcement, co-conspirators traveled to stores located in different states including Maryland, Pennsylvania, North Carolina, Virginia, and Washington, D.C.
On April 19, 2018, law enforcement officers executed a search warrant at Ndiaye’s Maryland apartment. Officers located a 75’’ Samsung television and Bose Soundtouch 300 soundbar. On March 7, 2019, Ndiaye used the same minor’s identifying information to open credit accounts and purchased the soundbar and television for $3,750. Law enforcement also recovered the PII of approximately 659 victims located within a folder in Ndiaye’s bedroom dresser drawer, a total of $17,231 in cash which were proceeds or derived from proceeds of the scheme. Also found in the apartment were shredded driver’s licenses, a shredding machine, and blank card stock used to create fraudulent identification cards and credit cards, as well as a credit card encoder which Ndiaye used to create fraudulent credit cards. Officers located 10 telecommunication statements with the same account number but difference customer names and addresses.
Officers also recovered several items Ndiaye had thrown out of the apartment window prior to law enforcement’s entry including Ndiaye’s laptop, driver’s license holograms from nine different states, as well as 14 fraudulent Maryland driver’s licenses.
During the investigation, law enforcement selected 145 potential victims out of the total 659 victim PII recovered from Ndiaye’s apartment and sent the victim information to the card issuers and telecommunications stores. From three credit card issuers or telecommunications stores, Ndiaye and his co-conspirators opened over 60 fraudulent accounts and caused a loss of over $142,000 to the three retail institutions.
Ndiaye admitted that he and his co-conspirators used the stolen personal information of at least 62 victims to open fraudulent accounts, causing a total loss to the card issuers and telecommunication stores at least $150,597.06. As part of his plea agreement, Ndiaye has agreed to the entry of a restitution order for the full amount of the victims’ losses.Ndiaye faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a mandatory minimum sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Paul W. Grimm has not yet scheduled Ndiaye’s sentencing date.
Jonathan Henry, age 29, of Bethesda, Maryland, and Dominique Davis, age 30, of Germantown, Maryland, previously pleaded guilty to their roles in the scheme and were sentenced to 41 months and 30 months in federal prison, respectively.
Acting United States Attorney Jonathan F. Lenzner commended the United States Secret Service, U.S. Postal Inspection Service, and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Kelly O. Hayes and Dana J. Brusca, who are prosecuting the case.
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Man Sentenced to 162 Months in Federal Prison for Conspiring to Provide Material Support to ISISRead the Press Release
WASHINGTON – An Illinois man was sentenced today to 162 months, the equivalent of 13 ½ years, in prison for conspiring to provide material support to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization.
Edward Schimenti, 39, of Zion was convicted by a federal jury in 2019 on one count of conspiring to provide material support and resources to ISIS, and one count of making false statements to the FBI. According to court documents, Schimenti advocated on social media for violent extremism in support of the terrorist group. In 2015, Schimenti began meeting with undercover FBI employees and individuals who, unbeknownst to Schimenti, were cooperating with law enforcement. During the meetings, Schimenti discussed his devotion to ISIS and his commitment to ISIS principles.
In 2017, Schimenti furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas. On April 7, 2017, Schimenti drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.
Co-defendant, Joseph D. Jones, 39, of Zion was also convicted of a conspiracy charge and sentenced last month to 12 years in federal prison.
U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.
The Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state and local law enforcement agencies, investigated the case.
Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section prosecuted the case.
Man Sentenced for Defrauding Nearly 1,700 Victims in $1 Million Small Business Loan ScamRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 10 years in prison for his role in an internet-based loan scam that defrauded nearly 1,700 owners and prospective owners of small businesses out of $1,076,000, and for fraudulently collecting unemployment benefits during the COVID-19 pandemic.
According to court documents, Ronald A. Smith, 60, and his co-defendant and wife, Terri Beth Miller, 53, set up an internet-based company, Business Development Group, that offered, in exchange for an advance fee, assistance to individuals in preparing applications to obtain loans guaranteed by the Small Business Administration. From August 2012 through February 2018, Smith and Miller solicited potential customers on the basis of false, fraudulent, and misleading statements and representations, including that the company was headquartered at the Trump Building in New York City with additional offices in Las Vegas, that it was affiliated with the SBA, that it had favorable relationships with banks across the nation, and had assisted well-known large companies in obtaining SBA loans. They offered a money-back guarantee, but in fact employed various fraudulent methods to deny refunds.
“Smith’s brazen scheme resulted in over a million dollars in losses and inflicted serious financial and emotional hardship to many of his nearly 1,700 victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who seek to deprive our hardworking community members from receiving crucial financial assistance, you will be held accountable in EDVA and brought to justice.”
“This kind of fraud reaches deep into the community by striking at struggling businesses and people trying to hold onto their livelihoods. It is unconscionable that anyone would attempt to steal from the community using the SBA loan program to line their own pockets,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI is committed to rooting out this kind of fraud. Anyone with information on SBA loan program and other COVID-19 related fraud is asked to submit a tip to the FBI at tips.fbi.gov.”
“Ronald A. Smith submitted a fraudulent unemployment insurance claim with the Virginia Employment Commission, thereby stealing federal pandemic unemployment compensation benefits intended to help unemployed workers,” said Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General. “Today’s sentence demonstrates the Office of Inspector General’s commitment to combating fraud against the unemployment insurance program. We will continue to work with our law enforcement and state workforce agency partners to hold accountable those who seek to exploit unemployment insurance benefit programs to unlawfully enrich themselves.”
“Defrauding small business owners who are trying to launch, expand, or support their businesses is unacceptable,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration, Office of Inspector General’s Eastern Region. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Smith and Miller solicited 1,669 customers, who paid an aggregate sum of about $1,076,000 in advance fees. Most of these customers did not receive an SBA-guaranteed loan.
Smith was prosecuted in the Eastern District of Virginia for nearly the identical advance-fee scam in 2006 and received a seven-year prison sentence.
As part of the current case, Smith also committed fraud in connection with emergency benefits by submitting a fraudulent application with the Virginia Employment Commission for unemployment compensation, including $600 per week in federal pandemic unemployment compensation authorized under the CARES Act. As a result, Smith obtained $9,600 in federal pandemic unemployment compensation to which he was not entitled.
On October 9, 2020, Smith pleaded guilty to wire fraud, engaging in monetary transactions in criminally derived property, and fraud in connection with emergency benefits. Miller pleaded guilty on October 23, 2020 to wire fraud and engaging in monetary transactions in criminally derived property, and she will be sentenced on April 16, 2021.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General; Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA’s Office of Inspector General, Eastern Region, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
The investigation was jointly conducted by the FBI, the U.S. Postal Inspection Service, the Small Business Administration, and the Department of Labor Office of Inspector General.
Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-69.
Man Charged with String of Armed Home Invasion and Gas Station RobberiesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, David M. Hoovler, Orange County District Attorney, and William F. Sweeney Jr., Assistant Director-in-Charge, New York Division, Federal Bureau of Investigation (“FBI”), announced today that TISHAWN C. WOODS has been arrested for his participation in a string of armed home invasion and gas station robberies in and around Newburgh, New York. WOODS was apprehended yesterday in Orange, New Jersey, and will be presented this afternoon before United States Magistrate Judge Andrew E. Krause in White Plains federal court.
U.S. Attorney Audrey Strauss said: “As alleged, Tishawn Woods and an accomplice committed a series of robberies during which they discharged firearms, shooting and seriously wounding one of their victims. We thank the FBI and the Orange County District Attorney’s Office for their efforts to bring Woods to justice and keep the public safe.”
Orange County District Attorney David M. Hoovler said: “It takes the combined cooperative efforts of different law enforcement officials to stop organized violent criminal activity, particularly where it crosses over into different jurisdictions. I am grateful for the cooperation and work of the City of Newburgh Police Department, the Town of Newburgh Police Department, the Town of New Windsor Police Department, and the FBI’s Safe Streets Task Force in this case. I am proud of the work of my office’s investigators and assistant district attorneys in this matter, particularly in obtaining some of the video evidence. Very often digital recordings possessed by private citizens provide crucial evidence in solving violent crimes, which is why in 2016 we created the Video Camera Community Partnership Program. I thank United States Attorney Audrey Strauss for the professionalism, diligence, and courtesy shown by her staff and look forward to working with the United States Attorney’s Office of the Southern District of New York on this and other matters.”
FBI Assistant Director William F. Sweeney Jr. said: “We’ve recently seen an uptick in violent offenses, and today I have a sincere warning for those planning similar violent behavior – think twice. Respect others’ property and belongings. The FBI and our law enforcement partners will track you down and hold you accountable for violent behavior. If you break federal law you will face federal penalties.”
According to the allegations in the Complaint:[1]
In the early morning hours of March 17, 2021, WOODS and an accomplice, armed with handguns, burst inside an apartment in Newburgh, New York, where they robbed and shot the apartment’s occupant, inflicting life-threatening injuries.
In the early morning hours of March 22 and March 28, 2021, WOODS and an accomplice committed armed robberies of gas stations in New Windsor, New York, during which they fired shots near the gas stations’ clerks.
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WOODS, 20, of Newburgh, New York, is charged with three counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison, and three counts of using, carrying, brandishing, and discharging a firearm during, in relation to, and in furtherance of, a crime of violence, each of which carries a mandatory 10-year consecutive sentence.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the outstanding work of the FBI, the Orange County District Attorney’s Office, the Orange County Crime Analysis Center, the City of Newburgh Police Department, the Town of Newburgh Police Department, and the Town of New Windsor Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and 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 set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Louisville Resident Sentenced to 12 Months in Federal Prison for Filing False Income Tax Returns and Committing Medicaid FraudRead the Press Release
LOUISVILLE, KY. – Chief U.S. District Judge Greg Stivers sentenced Hatem Kaisi, age 52, to twelve months and one day imprisonment, followed by three years of supervised release, announced Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky. The defendant previously pled guilty to an indictment that charged him with three counts of filing false federal income tax returns for 2012 through 2014 and one count of healthcare fraud for defrauding the Kentucky Medicaid program.
“Terrific work by Assistant U.S. Attorneys Calhoun and Sullivan as well as the FBI and IRS agents who investigated the case,” said Acting U.S. Attorney Bennett. “Working together with our federal, state, and local law enforcement partners we will continue to identify and aggressively prosecute fraud throughout the 53 counties in the Western District.”
“The defendant failed to report almost $1 million of income on his tax returns,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today’s sentence is an important reminder that there are consequences, including jail time, for intentionally filing false tax returns.”
"By filing false income tax returns and abusing a federally-funded program such as Medicaid, this defendant ultimately defrauded hard-working American taxpayers," said FBI Louisville Special Agent in Charge Robert Brown. "As this sentence is handed down during this year’s tax season, know that this type of exploitation will not be tolerated. The FBI, the IRS, and our other federal, state, and local partners will continue to aggressively pursue those who seek to manipulate the system for their own personal financial gain."
In the plea agreement Kaisi admitted to failing to report $961,592 of income on his 2012 through 2014 federal income tax returns filed with the Internal Revenue Service (IRS). He admitted that he owed additional federal income tax due and owing of $204,842.69 for the tax years 2001 through 2014. Kaisi defrauded the IRS by falsely reporting income earned from his automobile business on the federal income tax returns of others.
In the plea agreement, Kaisi also admitted to concealing his actual income from the Kentucky Cabinet for Health and Family Services, Department for Medicaid Services, which is the Kentucky agency responsible for administering Medicaid. For the years 2008 through 2014, Kaisi concealed over $200,000 of income per year to fraudulently qualify his family for Medicaid benefits. As a result of his actions, Kaisi defrauded the Department for Medicaid Services out of approximately $204,842.69. Kaisi’s family members would not have otherwise qualified for Medicaid benefits but for his intentional concealment of income.
Kaisi also agreed to forfeit $347,095 previously seized by the United States from his bank accounts as result of the charged healthcare fraud. The United States agreed to recommend that $204,842.69 of this be applied to the restitution Kaisi owes to the Kentucky Department for Medicaid Services. Kaisi also agreed to pay full restitution, in the amount of $209,910.80, to the IRS.
The case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Amy Sullivan. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations.
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Louisville Man Sentenced to 300 Months for Drug and Gun ChargesRead the Press Release
COVINGTON, Ky.— Quinn R. Turner, 32, of Louisville, Kentucky, was sentenced to 300 months in federal prison on Friday, by U.S. District Judge David Bunning, after being convicted of conspiracy to distribute 50 grams or more of methamphetamine, possession of 50 grams or more of methamphetamine with intent to distribute, possession of a firearm in furtherance of drug trafficking, and being a felon in possession of a firearm.
Turner was convicted on September 17, 2020 after a three-day jury trial. Evidence at trial showed that Turner led a conspiracy responsible for distributing multiple kilograms of crystal methamphetamine during 2018. He was arrested with a loaded handgun while attempting to sell a pound of methamphetamine in Warsaw, Kentucky on October 3, 2018. Turner has a prior conviction for armed bank robbery and was released from prison less than a year before committing these crimes.
Turner was indicted in December 2018. He was the final member of the conspiracy to be sentenced. Turner’s co-defendants previously pleaded guilty to conspiracy charges and were sentenced in October 2020. Ashley Daugherty received 60 months in prison and Laura West received 42 months in prison.
Under federal law, Turner must serve 85 percent of his prison sentence, and upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; and Director Christopher Conners, Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Kyle Winslow and Tony Bracke.
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Local Landscaping Company Owner Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – The owner of a local landscaping company pleaded guilty today to tax evasion in connection with a scheme to underreport income on his business and personal tax returns.
Kevin Newman, 70, of Auburndale, the owner of Kevin Newman Landscape and Tree Inc., pleaded guilty to one count of tax evasion. U.S. District Court Judge Patti B. Saris scheduled sentencing for Aug. 4, 2021.
For tax years 2015 through 2019, Newman underreported income and inflated expenses on his personal tax returns, and those his company filed, resulting in a tax loss of more than $384,000.
The charge of tax evasion provides for a sentence of up to five years in prison, up to 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 Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Jury Convicts Coles County Sex Offender for Sexual Exploitation of ChildrenRead the Press Release
PEORIA, Ill. – A federal jury deliberated for approximately two hours before returning its guilty verdicts this afternoon against Jeffrey M. West, 53, of the 1300 block of S. Third St., Mattoon, Ill., for the seven counts charged: two counts of sexual exploitation of minors; two counts of commission of the offense by a registered sex offender; two counts of receiving child pornography; and, one count of possession of child pornography.
Sentencing for West has been scheduled for Sept. 13, 2021, before Senior U.S. District Judge Michael M. Mihm. West faces statutory penalties of 25 to 50 years in prison for sexual exploitation of a minor plus consecutive terms of 10 years in prison for each of the two counts of commission of the offense as a registered sex offender. West has a prior conviction in Coles County for aggravated criminal sexual abuse of a 10-year-old female and a 4-year-old male.
Over two days of testimony this week, the government presented evidence to establish that West was identified when a minor disclosed that West had sexually abused him in 2019. During the subsequent investigation, computer forensic analysis showed that West had collected more than 1000 images and videos of child pornography, including sexually explicit depictions of infants and prepubescent minors, which were found on multiple devices in his home and at his business, West Side Motors, in Mattoon.
In addition, the government’s evidence showed that West used the video-chatting website Omegle to entice and coerce multiple unidentified minor males to engage in sexually explicit conduct which he captured for his collection. According to testimony from an FBI expert, Omegle’s website warns its users about predatory behavior because the website provides anonymity features that are often used by individuals with a sexual interest in children.
West was arrested on May 24, 2019, in Mattoon, Ill., on state charges, but was released on bond. On Sept. 4, 2019, a federal grand jury charged West by indictment and he was arrested on the federal charges. On Sept. 16, 2019, U.S. Magistrate Judge Eric I. Long ordered that West be detained pending trial. He has remained in the custody of the U.S. Marshals Service since his arrest.
The charges are the result of an investigation by the Mattoon Police Department, with assistance from the Federal Bureau of Investigation and the Coles County State’s Attorney’s Office. Assistant U.S. Attorneys Elly Peirson and Keith Hollingshead-Cook represented the government at trial.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of 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.
Judges sentences St. Louis man on drug and firearms chargesRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Lemartrell Smith to 120 months in prison Friday. The 26-year-old St. Louis, Missouri resident pleaded guilty in December to two counts of being in possession of a controlled substance with intent to distribute, one count of being in possession of a firearm in furtherance of drug trafficking crime and one count being a felon in possession of a firearm.
On or about February 28, 2018, Florissant Police received information Smith was selling drugs in the parking lot of a bowling alley and was armed with a gun. Officers pulled up to Smith’s vehicle to investigate but could not see inside due to the dark window tint. Smith refused to open the car door, so police smashed the window and removed Smith. Officers noticed from the center console, in plain view, a handgun with an extended magazine. Officers also seized 18 grams of fentanyl.
On or about March 13, 2019 St. Louis County Police learned Smith was selling fentanyl. Using an undercover detective, investigators placed a call to Smith and arranged to buy $60 worth of fentanyl. Smith instructed the undercover detective to meet at a specific location. Smith met the undercover detective, reached into a leather satchel and removed 12 capsules. Smith exchanged the capsules for $60 and drove away.
As officers attempted to stop Smith, he ignored all commands to pull over and started to speed away. Smith continued to evade police even after driving over a spike strip. Smith crossed into an opposite lane of traffic at a high rate of speed and crashed into another vehicle. The driver of the other vehicle was seriously injured. Officers arrested Smith. Charges related to the crash remain pending in St. Louis County Circuit Court.
Officers seized a satchel and found a loaded Glock pistol with one round inside the chamber. Officers searched Smith’s vehicle and seized $2,870 in U.S. currency, another pistol, the $60 used by the undercover detective, five cell phones and 10.34 grams of fentanyl.
The St. Louis County Police Department, Florissant Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Paul D'Agrosa is handling the case.
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Ithaca Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Leroy Reed, 52, of Ithaca, New York, made his initial appearance in federal court today on a complaint charging him with receiving child pornography, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Tompkins County Sheriff Derek Osborne.
According to the criminal complaint, Reed, a registered sex offender who was convicted in 2002 of rape and sodomy in the first degree, received multiple child pornography video files over the internet.
The charge against Reed carries a mandatory minimum sentence of 15 years and a maximum of 40 years in prison, a post-release term of supervision of between five years and life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Reed made his initial appearance today before Magistrate Judge Miroslav Lovric and was detained pending further proceedings. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Ithaca Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police Bureau of Criminal Investigation (BCI), with assistance from the Tompkins County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Inland Empire Woman Sentenced to over 3 Years in Prison for Using Stolen Identities to Fraudulently Obtain over $500,000 in COVID ReliefRead the Press Release
LOS ANGELES – A Riverside County woman was sentenced today to 37 months in federal prison for fraudulently obtaining more than $500,000 in COVID-19-related unemployment benefits by using the stolen personal information of dozens of individuals obtained from the dark-net.
Cara Marie Kirk-Connell, 33, of Menifee, was sentenced by United States District Judge André Birotte, Jr. Kirk-Connell pleaded guilty in December 2020 to a single-count information charging her with use of an unauthorized access device.
From May to October 2020, Kirk-Connell used personal information – such as dates of birth and Social Security numbers – that she knew had been stolen and accessed via the dark-net. Kirk-Connell, who also watched YouTube instructional videos on how to commit unemployment insurance fraud, then used the stolen information and identities to apply for unemployment insurance benefits from the California Employment Development Department (EDD).
When Murietta police arrested Kirk-Connell in September 2020 during a traffic stop, she possessed eight EDD debit cards in other people’s names. The day before her arrest, Kirk-Connell used fraudulently obtained EDD debit cards to withdraw more than $1,000 in cash. When federal law enforcement arrested Kirk-Connell the following month, she possessed in her purse four EDD debit cards in victims’ names, four additional debit cards in victims’ names in her car trunk, and approximately $10,000 in cash.
“During the COVID pandemic over the past year, criminals have robbed the state of California of billions [of dollars] by engaging in identity theft to fraudulently obtain unemployment benefits from EDD,” prosecutors wrote in their sentencing memorandum. “[Kirk-Connell] was part of that scourge.”
The California EDD distributes unemployment benefits under the Coronavirus Aid, Relief, and Economic Security Act, passed by Congress in March 2020. The CARES Act expanded unemployment benefits to cover those who were previously ineligible, including business owners, self-employed workers, and independent contractors, who were put out of business or significantly reduced their services because of the COVID-19 pandemic.
This investigation, which is a result of the Department of Justice’s National Unemployment Insurance Fraud Task Force, was conducted by the U.S. Department of Labor – Office of Inspector General, IRS Criminal Investigation, and the United States Postal Inspection Service. California EDD Criminal Investigations and the Murrieta Police Department provided substantial assistance.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 8 was:
Wesley Dean Merrill, 40, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Merrill faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Merrill was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-7.
Joshua Daniel Kaupang, 38, of Great Falls, on charges of receipt of child pornography and access with intent to view child pornography. If convicted of the most serious crime, Kaupang faces five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Kaupang was detained pending further proceedings. The Internet Crimes Against Children Task Force and Montana Division of Criminal Investigation investigated the case. PACER case reference. 20-2.
Pleading not guilty on April 6 was:
Amber Marie Bruse, 39, unknown address, on charges of distribution of meth. If convicted of the most serious crime, Bruse faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Burse was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 20-123.
Pleading not guilty on April 5 was:
Lawrence Howard Kahle, 54, of Billings, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Kahle faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the fraud counts and a consecutive two years in prison, a $250,000 fine and one year of supervised release on the aggravated identity theft counts. Kahle was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 21-19.
Pleading not guilty on March 29 was:
Kyong Cha Roberts, 68, of Billings, on charges of coercion and enticement. If convicted of the most serious crime, Roberts faces a maximum 20 years in prison, a $250,000 fine and five years to life of supervised release. Roberts was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-17.
Pleading not guilty on March 26 was:
Peter Margiotta, 63, of Edmonton, Alberta, Canada, on charges of failure to surrender for service of sentence. If convicted of the most serious crime, Margiotta faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Margiotta was detained pending further proceedings. The Environmental Protection Agency and the Department of Transportation investigated the case. PACER case reference. 21-21.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 6 was:
John Charles Stowers, 57, of Great Falls, on charges of unlawful transfer of National Firearms Act firearms. If convicted of the most serious crime, Stowers faces a maximum 10 years in prison, a $10,000 fine and three years of supervised release. Stowers was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cascade County Sheriff’s Office investigated the case. PACER case reference. 21-14.
David Eugene Wing, 43, of Heart Butte, on charges of assault with a dangerous weapon and possession of a firearm in furtherance of a crime of violence. If convicted of the most serious crime, Wing faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the assault counts and a mandatory minimum 10 years to life in prison, a $250,000 fine and five years of supervised release on the firearms counts. Wing was released pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Fort Belknap Police Department investigated the case. PACER case reference. 21-16.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on April 8 was:
David Vincent Viers, 58, of Silver Star, on charges of possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Viers faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years to life of supervised release. Viers was released pending further proceedings. The Drug Enforcement Administration, the U.S. Postal Service, Homeland Security Investigations, Montana Division of Criminal Investigation and Butte Silver Bow law enforcement investigated the case. PACER case reference. 21-11.
Pleading not guilty on March 30 was:
Steven Douglas Shipe, 52, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Shipe faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Shipe was detained pending further proceedings. The Montana Division of Criminal Investigation, the Drug Enforcement Administration and Butte Silver Bow Law Enforcement Agency investigated the case. PACER case reference. 21-12.
Charles David Clement, 34, of Butte, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Clement faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Clement was detained pending further proceedings. Montana’s Division of Criminal Investigation, the Drug Enforcement Administration and Butte Silver Bow Law Enforcement Agency investigated the case. PACER case reference. 21-12.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hot Springs Man Sentenced to 18 Years in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Robert Arthur Blackstead Jr., age 56, of Hot Springs, Arkansas, was sentenced today to 216 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
In January of 2019, investigators with the 18th Judicial Drug Task Force and agents with Homeland Security Investigations Little Rock launched an investigation into Blackstead’s drug trafficking in the Western District of Arkansas. Over the course of the investigation, investigators and agents were able to conduct several controlled purchases of methamphetamine from Blackstead.
During the arrest of Blackstead, a search of his residence was conducted by investigators and agents. The search resulted in locating three firearms, a distribution amount of methamphetamine and drug paraphernalia.
Blackstead was indicted by a federal grand jury in March of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the 18th Judicial Drug Task Force and Homeland Security Investigations Little Rock. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hot Springs Man Pleads Guilty to Charges in Connection with Obtaining Coronavirus Relief FundsRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that James Heritage, age 38, of Hot Springs, Arkansas, pleaded guilty today to two charges stemming from his attempts to unlawfully obtain COVID-19 relief funds. The first count charged Heritage with making a false statement on a loan application to obtain money through the Small Business Administration’s Paycheck Protection Program (PPP) and the second count is one count of mail fraud, in connection with a scheme to collect Pandemic Unemployment Assistance (PUA), a form of supplemental unemployment insurance, from various state PUA administrators.
According to the plea agreement, Heritage received a PPP loan of approximately $180,000 by representing to the Small Business Administration that he was the owner of a Hot Springs business in need of financial assistance. Law enforcement discovered that the represented business did not exist, and the information in Heritage’s loan application was false. Agents also discovered that Heritage had applied for, and in many cases received, PUA benefits from state administrators in at least 40 different states and the District of Columbia, resulting in Heritage receiving approximately $350,000 in these benefits.
Heritage’s sentencing will be determined by the court at a later date, following the U.S. Probation Office’s completion of a presentence investigation. Based on his guilty plea, the maximum penalty on Count 1 includes imprisonment up to five years and a fine of up to $250,000, and on Count 2 includes up to 30 years imprisonment and a fine of $1,000,000.
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 on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The case was investigated by the Department of Labor’s Office of the Inspector General, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Small Business Administration’s Office of the Inspector General. Assistant United States Attorney Hunter Bridges is prosecuting the case for the United States.
Holyoke Man Arrested for Fentanyl ConspiracyRead the Press Release
BOSTON – A Holyoke man believed to be associated with the CJNG (“Cartel Jalisco Nueva Generacion”) drug cartel was arrested yesterday on charges of trafficking in fentanyl.
Josue Rivera Rodriguez, a/k/a “Bori,” 44, was indicted on one count of conspiracy to distribute 400 grams or more of fentanyl; two counts of distribution of 40 grams or more of fentanyl; and one count of distribution of 400 grams or more of fentanyl.
According to court records, agents recorded a meeting where Rodriguez delivered $35,000 to a cooperating witness using a code designed to ensure that the money was delivered to the CJNG cartel. Thereafter, on three occasions in 2020 and 2021, Rodriquez was recorded distributing over 750 grams of fentanyl to the cooperating witness.
At the time of his arrest on April 8, 2021, approximately 300 grams of suspected fentanyl; an AR-15 assault rifle; five semi-automatic pistols, including handguns capable of carrying large-caliber ammunition and fitted with a laser sight; a bullet-proof vest; a police hat with insignia; packaging materials; cellphones; a money counter; and $1,900 cash was seized from his residence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and distribution of 400 grams or more of fentanyl provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Holyoke Police Chief Manny Febbo made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hazleton Man Sentenced to 30 Months’ Imprisonment for StalkingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 8, 2021, Gregory Rossi, age 49, of Hazleton, Pennsylvania, was sentenced to 30 months' imprisonment to be followed by three years of supervised release by U.S. District Court Judge Robert D. Mariani for stalking.
According to Acting U.S. Attorney Bruce D. Brandler, on December 16, 2019, Rossi entered a guilty plea to stalking a victim from August 1, 2018 through August 27, 2019 while a protection from abuse order was in place. Judge Mariani also ordered the forfeiture of dozens of firearms and thousands of rounds of ammunition found in Rossi’s possession at the time of his arrest.
The case was investigated by the Federal Bureau of Investigation, the Hazleton City Police Department and the Sugarloaf Police Department. Assistant United States Attorney Jenny P. Roberts prosecuted the case.
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Grand Jury Indicts Huntington Park Man in Alleged Three-Month Robbery Spree Targeting 15 Trader Joe’s Grocery StoresRead the Press Release
LOS ANGELES – A federal grand jury today named a Huntington Park man in a 21-count indictment that accuses him of robbing 15 Trader Joe’s stores throughout Southern California during a three-month crime spree.
Gregory Johnson, 43, was named in a superseding indictment charging him with 15 counts of interference with commerce by robbery (Hobbs Act), five counts of knowingly using and possessing a firearm in furtherance of a crime of violence, and one count of being a felon in possession of a firearm.
His arraignment on the superseding indictment has not been scheduled. A June 22 trial previously was scheduled in this matter.
Johnson previously was charged via a two-count information on February 8 in connection with the robbery of a Trader Joe’s in Chino Hills on December 4, 2020. Today’s indictment charges him with 19 additional felonies.
According to the indictment, from August 28 to December 4, 2020, Johnson robbed Trader Joe’s stores in Eagle Rock, Sherman Oaks, Chatsworth, Pasadena, Culver City, Rancho Palos Verdes, Agoura Hills, Brea, Santa Ana, Tustin, and Chino Hills, and attempted to rob Trader Joe's stores in Simi Valley and Corona.
During many of the robberies, Johnson allegedly brandished a handgun. On two occasions, Johnson allegedly robbed stores in Rancho Palos Verdes and Brea, and returned weeks later to rob them again.
On December 4, 2020, Johnson and his son, Gregory Eric Johnson, 20, of South Los Angeles, were arrested after law enforcement learned of the Chino Hills Trader Joe’s robbery. A witness gave law enforcement a description of the Johnsons’ getaway car and its license plate, according to court documents.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Gregory Johnson would face a statutory maximum sentence of 20 years in federal prison for each robbery charge, seven years in prison for each firearms use charge, and 10 years’ imprisonment for the felon-in-possession of a firearms charge.
On March 15, Gregory Eric Johnson pleaded guilty to a two-count information charging him with interference with commerce by robbery for robbing Trader Joe’s stores in Chatsworth and Chino Hills in December 2020. His sentencing hearing is scheduled for July 12, at which time he will face a statutory maximum sentence of 40 years in federal prison.
The FBI, the Los Angeles County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section are prosecuting this case.
Gloversville Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Jonathan L. Morgan, age 32, of Gloversville, New York, pled guilty today to distributing and possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Morgan admitted that he distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020. He also admitted to possessing child pornography on two phones.
Morgan faces at least 5 years in prison, and a term of post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, Morgan will be required to register as a sex offender.
The case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Four Members of Militia Group Identifying with “Boogaloo” Movement Charged with Conspiracy to Obstruct Justice by Destroying Records and Destruction of RecordsRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted four members of a militia group associated with the “boogaloo” movement in connection with a scheme to obstruct justice and destroy records to thwart the investigation and proceedings involving the May 29, 2020 shooting of federal Protective Services Officers, announced Acting United States Attorney for the Northern District of California Stephanie M. Hinds and FBI Special Agent in Charge Craig D. Fair. The grand jury returned an indictment alleging that Jessie Alexander Rush, Robert Jesus Blancas, Simon Sage Ybarra, and Kenny Matthew Miksch, all members of a militia group, conspired to destroy communications and other records relating to the May 29, 2020 murder and attempted murder of two federal security officers in Oakland, California. The indictment charges Rush with an additional count of obstruction of official proceedings and Blancas with an additional count of destruction of records in official proceedings.
The indictment, filed March 23, 2021 and unsealed today, alleges that Rush, 29, a resident of Turlock, Calif.; Blancas, 33, a transient resident of the Bay Area; Ybarra, 23, a resident of Los Gatos; and Miksch, 21, a resident of San Lorenzo, were members of the “1st Detachment, 1st California Grizzly Scouts” (Grizzly Scouts), a militia group based in Northern California. Beginning in April 2020, the Grizzly Scouts connected via a Facebook group and periodically met in person for firearms training and other purposes. The Facebook group’s description stated, “they say the west won’t boog,” a reference to the “boogaloo” movement, and that “were [sic] here to gather like minded Californians who can network and establish local goon squads.” As alleged in the indictment, “boogaloo” is a term sometimes used by certain militia extremists to reference a politically motivated civil war or uprising against the government. The “boogaloo” is not a single cohesive group, but rather a loose concept that has become a rallying point for some extremists.
According to the indictment, at times, including on June 1, 2020, and June 2, 2020, members of the Grizzly Scouts, including Rush, Blancas, Ybarra, Miksch, and others, communicated with each other using a WhatsApp group in which discussions repeatedly referenced “boog” and tactics involving the killing of police officers and other law enforcement.
The indictment references the May 29, 2020 shootings at the Ronald V. Dellums Federal Building and United States Courthouse in Oakland, Calif. At about 9:44 p.m. that evening, a passenger inside of a white van opened fire and shot two federal Protective Security Officers (PSOs); one of the PSOs died of his gunshot wounds and the other sustained serious injuries that required surgery.
The indictment also references the June 6, 2020 shootings of deputies of the Santa Cruz County Sheriff’s Office. At about 2:00 p.m. that day, sheriff’s deputies responded to an address in Ben Lomond, Calif., associated with an abandoned white van. According to the indictment, a member of the Grizzly Scouts exchanged messages on the WhatsApp group with other Grizzly Scouts, in which that member allegedly told the group that he was preparing to engage in a shoot-out with law enforcement. The member allegedly asked the other Grizzly Scouts to come to his aid.
The indictment alleges Rush immediately instructed the Grizzly Scout member on the WhatsApp group to delete evidence on his phone. In addition, the indictment alleges that less than an hour after the shooting in Ben Lomond, Blancas deleted files related to the Grizzly Scouts from a Dropbox account. Further, within hours of the shooting, members of the Grizzly Scouts including Rush, Blancas, Ybarra, and Miksch allegedly began to reconnect on an alternative communications application. Moreover, the indictment alleges that the four defendants each deleted records of the WhatsApp group communications from their phones, including the prior discussions regarding violence against law enforcement.
Rush, Blancas, Ybarra, and Miksch are charged with conspiracy to obstruct justice by destroying records, in violation of 18 U.S.C. § 1512(k), and the destruction of records in official proceedings, in violation of 18 U.S.C. § 1512(c)(1). Rush is charged with an additional count of obstruction of official proceedings, in violation of 18 U.S.C. § 1512(c)(2), and Blancas is charged with an additional count of destruction of records in official proceedings, in violation of 18 U.S.C. § 1512(c)(1).
An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants each face a maximum statutory penalty of up to 20 years in prison and a fine of $250,000 for each of the conspiracy, obstruction, and destruction charges. In addition, the court may order additional terms of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Ybarra was arrested in the Eastern District of California and made his initial appearance there on April 8, 2021. He will appear for detention proceedings on April 9, 2021. Rush and Miksch appeared in federal court in San Francisco to make their initial appearances on April 9, 2021. Rush and Miksch are currently held in federal custody pending further proceedings and will appear next on April 14, 2021 for detention hearings before U.S. Magistrate Judge Jacqueline Scott Corley. Blancas will make his initial appearance in this matter on April 12, 2021. Federal authorities previously arrested Blancas on other charges and he is currently in federal custody pending further proceedings.
The prosecution is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California with assistance from the National Security Division’s Counterterrorism Section. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Four Individuals Indicted for Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison InmatesRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging four individuals with allegedly participating in a conspiracy to use the personal identifying information of 35 Virginia prison inmates in order to fraudulently obtain over $300,000 in pandemic-related unemployment benefits.
“As alleged in the indictment, the defendants deliberately stole funds intended for members of our community who have faced financial hardship and unemployment during the COVID-19 pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work with our law enforcement partners to safeguard these critical taxpayer-funded resources and hold accountable those who unlawfully line their pockets at the expense of the American people.”
According to the indictment, Mary Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35, of Norfolk, allegedly worked with two inmates at Virginia correctional institutions to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Benton allegedly submitted successful applications for Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities. Cartwright-Powers allegedly submitted successful applications for four inmates at one correctional facility.
“Fraudulently exploiting COVID-19 relief funds for personal gain is unconscionable,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “Today’s indictment sends a clear message that DHS OIG will fully investigate fraud affecting FEMA funds and continue to work with our law enforcement partners to bring an end to these schemes.”
“Investigating fraud involving the Unemployment Insurance Program is an important part of the mission of the U.S. Department of Labor - Office of Inspector General, particularly during a time when our nation is providing billions of dollars in unemployment benefits to American workers in need of assistance due to the continuing economic effects of the ongoing COVID-19 pandemic,” said Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to vigorously investigate unemployment insurance fraud.”
According to the indictment, co-conspirator Michael Lee Lewis, Jr., 41, of Chesapeake, allegedly provided information for inmates at the Augusta Correctional Center, where he was incarcerated. Michael Anthony White, 38, of Chesapeake, allegedly provided information for inmates at the Lawrenceville Correctional Center, where he was incarcerated. The four individuals charged in this indictment, along with the prisoners whose information was used for the unemployment applications, allegedly shared the proceeds of their crimes, which amounted to approximately $334,667. Although the conspirators initially and allegedly obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.
During the pandemic, both the federal government and the Virginia Employment Commission expanded unemployment benefits both by increasing the monetary amount, and by making benefits accessible for the self-employed, contractors, and gig workers, who have not historically qualified for unemployment. However, inmates remained ineligible for such benefits, and each application that Benton and Cartwright-Powers submitted allegedly contained numerous false statements that made the application successful, such as the inmates’ contact information and last employer, and that they were ready and willing to work.
Benton is charged with one count of conspiracy, three counts of fraud in connection with major disaster benefits, and three counts of mail fraud. Lewis and White are each charged with one count of conspiracy and two counts of mail fraud. Cartwright-Powers is charged with one count of conspiracy, one count of fraud in connection with major disaster benefits, and one count of mail fraud. If convicted, the conspirators face a maximum of five years in prison on the conspiracy count and thirty years in prison on each fraud count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.