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20 May 2021
Connecticut Man Sentenced to 120 Months on Child Exploitation ChargeRead the Press Release
DETROIT – A Hartford, Connecticut man was sentenced today to 120 months in prison on child exploitation charges, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Vance Callender, Homeland Security Investigations (HSI).
Sentenced was Joshua Depriest, 32. Depriest pleaded guilty on December 18, 2019 before U.S. District Judge Judith Levy to online enticement of a minor.
According to court records, in October, 2018, Depriest communicated through Facebook Messenger (an online social media service) with an 7-year-old boy and repeatedly asked the minor victim to send sexually explicit photos of himself. Depriest admitted to soliciting explicit videos and photos of the minor victim, as well as to soliciting and obtaining explicit videos and photos from 20 to 30 other boys, 8 to 9 years of age. Depriest also distributed child pornography to his trading partners on the internet.
“This defendant is a dangerous sexual predator whose exploitation of boys as young as 7 years old using social media platforms like Facebook Messenger is particularly despicable. The Department of Justice is committed to the safety and well-being of the most vulnerable members of our society – our children,” stated Acting US Attorney Mohsin.
“As our children spend increasingly more time online, they are increasingly vulnerable to predators who lurk in the supposed anonymity of the Internet,” said Vance R. Callender, HSI Special Agent in Charge for Michigan and Ohio. “This case underscores HSI’s commitment to work with its law enforcement partners, not only to arrest offenders but also bring justice to the victims- especially children.”
This case was investigated by agents of the HSI with the assistance of the Taylor Police Department. Assistant U.S. Attorney Lisandra Fernandez-Silber prosecuted the case.
Clinton Kidnapping Results in Decades of Imprisonment for Three Sampson County MenRead the Press Release
WILMINGTON, N.C. – Three Sampson County men were sentenced yesterday to a total of 916 months in prison, collectively, for the kidnapping and torture of two victims, one under the age of eighteen.
On August 26, 2020, Ethan Gabriel Autry, 21, pled guilty to one charge of aiding and abetting kidnapping. On December 17, 2020, Leonard Edward Wilson, III, 23, and Isaiah Jeremiah Fennell-Best, 21, pled guilty to one charge of aiding and abetting kidnapping.
According to court documents and other information presented in court, Autry, Wilson, and Fennell-Best, along with other co-conspirators, lured the two victims into Autry’s apartment in downtown Clinton over a disputed debt. After locking them inside the bedroom, Autry, Wilson, and Fennell-Best engaged in a three-hour “torture session,” holding the victims at gunpoint and physically beating them with objects. During this time, Autry, Wilson, and Fennell-Best made phone calls to the victims’ family, demanding a ransom. After the Sampson County Sheriff’s Office and Clinton Police Department were notified, authorities underwent an operation resulting in the safe recovery of the victims and the capture of Autry, Wilson, and Fennell-Best.
The investigation later showed the firearms Fennell-Best and Wilson used during the kidnapping were the same firearms the men used to shoot into a residence on Byrd-Yancey-Bass Road less than twenty-four hours before. There, Fennell-Best and Wilson shot several rounds of ammunition into an occupied home, hitting two victims.
As a result of their actions from this short period of time in October of 2019, the Court sentenced Autry to 274 months’ imprisonment; Wilson to 306 months’ imprisonment; and Fennell-Best to 336 months’ imprisonment. As the Court noted, these extensive sentences reflected the horrific nature of these crimes and the need to protect the public this type of behavior.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Sampson County Sheriff’s Office, Clinton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and District Attorney’s Office for the Prosecutorial District 5 assisted with the investigation of the case and Assistant U.S. Attorney J.D. Koesters prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-23-M.
Carroll County Man Sentenced to 21 Years for Possession and Distribution of Child PornographyRead the Press Release
Jackson, TN – Having been found guilty following a 3-day jury trial in September 2020, William Farrell Russell, 47, has now been sentenced to 262 months in federal prison for possession and distribution of child pornography depicting the sexual abuse of children under twelve years of age. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, investigators with the Faulkner County, Arkansas, Sheriff’s Department learned that a user of an instant messaging service was distributing child pornography under the screen name "funfortaboo." Between July 1 and July 7, 2016, funfortaboo distributed to the undercover investigator’s images of child sexual abuse. The Faulkner County, Arkansas investigators and members of the FBI Project Safe Childhood Task Force for the Western District of Tennessee, identified "funfortaboo" as William Farrell Russell, who was then living in Cedar Grove, TN.
On July 28, 2016, members of the FBI Project Safe Childhood Task Force executed a search warrant at Russell's Cedar Grove home, and recovered the cellular telephone that Russell used to distribute the child sexual abuse materials. On that telephone and in an online cloud storage account, Russell possessed hundreds of images and videos of child sexual abuse, including the images that he distributed to the undercover officers under the screen name funfortaboo.
That same day, Russell waived his Miranda rights and admitted to using the cellular telephone to send images of child sexual abuse.
On May 18, 2021, Chief U.S. District Judge S. Thomas Anderson sentenced Russell to 262 months in federal prison to be followed by lifetime supervised release. There is no parole in the federal system.
The FBI Project Safe Childhood Task Force and Faulkner County, Arkansas Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Gregory Allen and Lauren Delery prosecuted this case on behalf of the government.
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Cardiologist Sentenced to Prison for Decade-Long Health Care Fraud SchemeRead the Press Release
Ilan T. Graff, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced today that cardiologist ASIM HAMEEDI was sentenced to 20 months in prison for orchestrating a widespread healthcare fraud scheme from approximately 2003 to 2015. HAMEEDI owned a Queens, New York, medical clinic, City Medical Associates (“CMA”), through which he perpetrated a fraud scheme involving, among other things, fraudulent reimbursement claims and false representations to insurers regarding medical tests and procedures. HAMEEDI previously pled guilty to conspiracy to commit health care fraud before U.S. District Judge John G. Koeltl, who imposed today’s sentence.
Mr. Graff said: “Doctors and medical clinics should be focused on their patients’ wellbeing, not on fraudulently lining their own pockets. Thanks to the dogged investigative work of our partners at the FBI, HHS, and NYPD, Asim Hameedi is headed to prison for defrauding Medicare, Medicaid, and private health insurance companies.”
According to the Indictment, other court filings, and statements made in public court proceedings:
CMA, a cardiology and neurology clinic based in Bayside, Queens, conducted a multifaceted scheme spanning approximately 12 years and involving millions of dollars in falsified claims. HAMEEDI, a board-certified interventional cardiologist, was CMA’s president and owner. As HAMEEDI has acknowledged, he was a leader of this long-running, wide-ranging fraud scheme, which involved various co-conspirators and several codefendants.
HAMEEDI’s healthcare fraud scheme included, among other things: (1) making false representations to insurance providers about patients’ symptoms in order to obtain preauthorization for medical tests and procedures; (2) backdating bills in order to create the false impression that medical procedures had not been performed until after CMA received “pre”-authorization from an insurer; (3) submitting false claims to insurance providers for parts of tests that were not performed, as well as for drug items not used or provided; (4) evading scrutiny from insurers for the large volume of claims that CMA submitted by falsely representing that several doctors – who did not work at CMA – had purportedly ordered or performed tests or procedures there; and (5) violating HIPAA by accessing, without authorization, electronic health records of patients at a particular hospital on Long Island, New York, in order to identify patients to be recruited to CMA. Additionally, HAMEEDI tried to obstruct an investigation by hospital officials into misconduct by his nephew, codefendant Fawad Hameedi.
In addition to his prison sentence, HAMEEDI, 50, of New York, New York, was sentenced to two years of supervised release, restitution of $554,331, and a $100,000 fine.
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Fawad Hameedi, 35, pled guilty on February 7, 2018, to one count of conspiracy to commit health care fraud.
Arif Hameedi, 59, pled guilty on February 6, 2018, to one count of conspiracy to commit money laundering.
Absar Haaris, 51, pled guilty on November 15, 2016, to conspiracy to commit health care fraud and wire fraud, health care fraud, false statements relating to health care matters, conspiracy to commit fraud in connection with identification information, aggravated identity theft, conspiracy to violate the anti-kickback statute, conspiracy to commit money laundering, and conspiracy to wrongfully obtain and disclose individually identifiable health information. Haaris was previously sentenced, by the Honorable Jed S. Rakoff, principally to time served, three years of supervised release, and restitution of $544,331.51.
Michelle Landoy, 40, pled guilty on January 29, 2018, to conspiracy to commit health care fraud and wire fraud, health care fraud, wire fraud, false statements relating to health care matters, conspiracy to commit fraud in connection with identification information, and aggravated identity theft.
Desiree Scott, 41, pled guilty on February 6, 2018, to conspiracy to commit health care fraud and wire fraud, health care fraud, wire fraud, false statements relating to health care matters, conspiracy to commit fraud in connection with identification information, and aggravated identity theft.
Mr. Graff praised the outstanding investigative work of the New York Field Office of the Federal Bureau of Investigation, the New York Regional Office of the United States Department of Health and Human Services Office of the Inspector General, and the New York City Police Department. Mr. Graff also thanked the New York State Department of Financial Services.
The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case. Assistant U.S. Attorneys Michael D. Neff, David M. Abramowicz, and Kristy J. Greenberg are in charge of the prosecution.
California man sentenced to 14 years in prison for trafficking meth in the Helena area, illegal possession of firearmRead the Press Release
GREAT FALLS – A California man who admitted receiving packages of methamphetamine shipped to Helena for distribution was sentenced today to 14 years in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Michael Richard Browning, 34, of California, pleaded guilty on Feb. 9 to conspiracy to possess with intent to distribute meth and to prohibited person in possession of a firearm.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that from October 2019 until July 2020 in Helena, Browning and others received packages of meth for distribution. In December 2019, Browning and co-defendant, Jennifer Davidson, picked up a package containing about one and one-half pounds of meth at FedEx. Law enforcement recovered the package of meth. The investigation further included recorded conversations of Browning bragging about using the mail to transport illegal drugs. The government further alleged that Browning, who had a previous felony conviction, sold a 9mm pistol to an individual in Helena. Davidson was sentenced to 54 months in prison for conviction in the case.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the FBI and the Lewis and Clark County Sheriff’s Office.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Brooklyn Lawyer Pleads Guilty to Defrauding Real Estate InvestorsRead the Press Release
Earlier today, in federal court in Brooklyn, Shimon Rosenfeld, an attorney licensed to practice in New York, pleaded guilty to defrauding investors of at least $6 million by falsely claiming he was using the money to invest in real estate opportunities. The proceeding was held before United States District Judge Kiyo A. Matsumoto.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Freaney, Deputy Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS), announced the guilty plea.
“The defendant, a licensed lawyer, swindled his investors by claiming he was ‘flipping’ properties, when in reality the only thing he flipped was their millions of dollars in investments into his own personal bank accounts,” stated Acting United States Attorney Lesko. “It is particularly egregious that the defendant perpetrated this fraud scheme as a member of the bar who betrayed the trust of victims who believed his lies.” Mr. Lesko thanked the FBI for their outstanding investigative work on the case.
“The U.S. Secret Service, working in conjunction with our law enforcement partners, is dedicated to bringing those who commit financial crimes to justice,” stated USSS Deputy Special Agent-in-Charge Freaney. “The defendant used his position as an attorney to defraud victims who believed they were investing in real estate, when in actuality the defendant was misappropriating the funds for his personal gain. Due to the diligent investigative efforts of the Secret Service and FBI, the defendant has been brought to justice in the Eastern District of New York and will face the appropriate consequences for his actions.”
Between May 2014 and March 2018, Rosenfeld perpetrated a fraudulent scheme by soliciting and receiving approximately at least $6 million from various individuals (the “Victims”) based on fraudulent misrepresentations. Specifically, Rosenfeld induced the Victims to invest their money with him based, in part, on representations that he would purchase real estate and sell it to a prospective buyer at a higher price, also referred to as “flipping” the property. Rosenfeld told the Victims that he would split the profits from the real estate transactions with the Victims. In reality, Rosenfeld misappropriated the victim investors’ money, directing the funds into bank accounts he controlled and using the money to trade securities out of his brokerage account.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution, assisted by Special Agent Martin Sullivan of the Eastern District of New York.
The Defendant:
SHIMON ROSENFELD
Age: 59
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-236 (KAM)
Broiler Chicken Producer Indicted for Price Fixing and Bid RiggingRead the Press Release
A federal grand jury in Denver, Colorado, returned an indictment charging Norman W. Fries Inc., dba Claxton Poultry Farms (Claxton), headquartered in Claxton, Georgia, with participating in a nationwide conspiracy to fix prices and rig bids for broiler chicken products.
According to court documents, from at least as early as 2012 until at least 2019, Claxton and co-conspirators, including current President Mikell Fries and current Vice President Scott Brady, conspired to suppress and eliminate competition for sales of broiler chicken products, which are raised for human consumption and sold to grocers and restaurants. Fries and Brady are among 10 individuals charged in a superseding indictment in October 2020 for their roles in the conspiracy. Pilgrim’s Pride Corporation, a major broiler chicken producer based in Greeley, Colorado, pleaded guilty and was sentenced in February 2021 to pay a criminal fine over $107 million for its role in the conspiracy.
“As this charge shows, we will not hesitate to prosecute crimes designed to put money in corporate coffers and line executives’ pockets at the expense of everyday Americans, including the hundreds of millions of us who rely on chicken to be an affordable staple food,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Alongside our valued law enforcement partners and colleagues at the District of Colorado U.S. Attorney’s Office, we will not stop until integrity is restored to this vital market and all wrongdoers are held to account.”
“Today's announcement is yet another example of the dedication of the FBI and its partners to root out corrupt individuals and companies who collude to inflate prices and attempt to eliminate fair markets,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “This anti-competitive behavior will not be tolerated and the FBI will work to hold people and companies accountable for their criminal actions.”
“At such a critical juncture in our nation’s economic history, we are especially proud to be working with DOJ Antitrust Division, the FBI, and USDA OIG to protect American consumers from such unscrupulous efforts to distort the free market for personal gain,” said Special Agent in Charge Duane Townsend of the U.S. Department of Commerce, Office of Inspector General. “This is yet another cooperative step towards justice and restoration of integrity to the poultry market.”
Claxton is charged with a violation of the Sherman Antitrust Act. If convicted, Claxton faces a statutory maximum fine for corporations of $100 million. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the broiler chicken industry, which is being conducted by the Antitrust Division with the assistance of the Department of Commerce Office of Inspector General, the FBI’s Washington Field Office, and the U.S. Department of Agriculture Office of Inspector General. Special thanks to the District of Colorado for their assistance.
Anyone with information on price fixing, bid rigging, or other anticompetitive conduct related to the broiler chicken industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty on Tuesday, May 18, 2021 in federal court in Boston in connection with his illegal possession of ammunition.
Syrus Hampton, 30, pleaded guilty to one count of being a felon in possession of ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for May 18, 2022. Hampton was charged federally in May 2019.
On Jan. 25, 2019, Hampton was arrested after police officers recovered a 9mm semiautomatic pistol with no serial number, which contained 21 rounds of 9mm caliber ammunition, after Hampton fled from a traffic stop.
Hampton was prohibited from possessing ammunition due to a prior felony conviction punishable by more than one year in prison.
The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Hampton is enrolled in the Court-run RISE (Repair, Invest, Succeed, Emerge) program, designed to aid in the rehabilitation of applicable defendants who have pleaded guilty and are under pretrial supervision prior to sentencing. Their sentence is dependent upon their completion of the program and is determined at a later time.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is 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.
Bosque Farms man arraigned for assault, firearms charges in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Everett Paquin, 58, of Bosque Farms, New Mexico, and an enrolled member of the Pueblo of Isleta, was arraigned today in federal court on a three-count indictment of assault with a deadly weapon, witness tampering and being a felon in possession of a firearm and ammunition. A federal grand jury indicted Paquin on April 22. Paquin will remain detained pending trial.
According to the indictment, on or about Dec. 31, 2020, in Bernalillo County, New Mexico, on the Pueblo of Isleta, Paquin allegedly assaulted the victim, known in court records as Jane Doe, with a knife. Jane Doe is an enrolled member of the Pueblo of Isleta. Paquin also allegedly prevented Jane Doe from contacting the police.
When police made contact with Paquin after the assault, he was allegedly in possession of a loaded firearm. As a previously convicted felon, Paquin cannot legally possess a firearm or ammunition.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Paquin faces up to 20 years in prison.
The Isleta Police Department investigated this case. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
Baltimore Career Offender Sentenced to Life in Prison for Murdering a Baltimore Woman Believed to be a Witness in a Federal CaseRead the Press Release
Baltimore, Maryland - U.S. District Judge George J. Hazel today sentenced Davon Carter, age 40, of Baltimore, to four life terms in federal prison for two counts of conspiracy to murder a witness and one count each of witness retaliation murder and witness tampering murder, related to the murder of Latrina Ashburne, age 41, on May 27, 2016. Carter was also convicted of a federal narcotics conspiracy charge, two counts of using a cellular telephone to facilitate the commission of a felony, and possession with intent to distribute marijuana. A federal jury in Baltimore convicted Carter and co-defendant Clifton Mosley, age 42, also of Baltimore, on January 29, 2020, after a three-week trial.
The sentence was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of Inspector General; Chief Melissa R. Hyatt of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation; and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“We will never tolerate witness tampering, intimidation, or retaliation—period,” said Acting U.S. Attorney Jonathan F. Lenzner. “Carter and Mosley’s efforts to silence a witness resulted in the death of a woman who had absolutely nothing to do with them. Carter will now serve the rest of his life in federal prison and his co-defendant also faces life in federal prison. While there is no sentence that can ease the pain of the family and friends of Latrina Ashburne for her senseless murder, I hope that they can take some comfort in the fact that Carter will never be free to walk the streets again.”
According to the evidence presented at their three-week trial, Carter and Mosley conspired to kill a witness who had provided information to law enforcement about a good friend of Carter’s, Matthew Hightower. In June 2015, Hightower was charged federally in a health care fraud scheme. While on release in the health care fraud case, the federal grand jury began investigating crimes of violence for which Hightower was implicated, including the murder of David Wutoh. In July or August 2015, Hightower learned the identity of the health care fraud whistleblower (the witness) who also had incriminating information against him relating to the Wutoh murder. Contrary to his release conditions, he began communicating with witnesses who had been in the grand jury. All the while, Carter and Mosley remained in frequent and regular contact with Hightower.
On April 19, 2016, the grand jury returned a sealed superseding indictment against Hightower charging both Hightower and Harry Crawford and with extortion and using interstate facilities for extortion resulting in the death (murder) of David Wutoh. Ten days later, the government filed a motion requesting revocation of Hightower’s release conditions based on the new charges and his prohibited contact with grand jury witnesses. The motion was granted on May 4, 2016 and Hightower was detained. Hightower was ultimately convicted of extortion resulting in Wutoh’s murder by a federal jury on September 22, 2016, after a seven-day trial and was sentenced to 380 months in federal prison.
While Hightower was detained, Carter assumed responsibility for Hightower’s marijuana distribution business, and engaged in direct communications with the source of supply. Carter also collected money and ran other errands for Hightower.
The evidence showed that on May 27, 2016, Ms. Ashburne was murdered in the early morning as she got into her car outside the home she shared with her mother in the 2900 block of Rosalind Avenue in Baltimore’s Cylburn neighborhood. The police reported that an unknown male approached and shot Ms. Ashburne in the upper body as she tried to run. She was not robbed. At the time, the police also released a video they said showed the suspect running away from the scene.
The witness lived next door to Ms. Ashburne. The witness contacted law enforcement to report the murder and that she believed she was the intended target. The investigation showed that Mosley’s phone was in the area at the time of the murder and in contact with Carter’s phone. In addition, vehicles owned by the mother of Carter’s girlfriend and by Hightower were captured on surveillance video driving slowly through the area as if the driver were looking for someone. The evidence at trial established that Carter and Mosley each drove one of the vehicles.
Mosley faces a mandatory sentence of life in prison for each of the two conspiracy counts and for the witness retaliation and witness tampering murder charges. Mosley also faces a maximum of five years in prison for distribution of marijuana. Judge Hazel has not yet scheduled a sentencing date for Mosley.
Acting United States Attorney Jonathan F. Lenzner commended the HHS-OIG, the FBI, the Baltimore County Police Department, the Baltimore Police Department, and the ATF for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sandra Wilkinson and Kim Oldham, who are prosecuting the case and also thanked Assistant U.S. Attorneys Judson T. Mihok and Aaron S.J. Zelinsky, who prosecuted the Hightower case, for their assistance.
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Bakersfield Man Charged with Firearms, Fraud, and Identity Theft OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury brought a 14-count indictment against Christopher Lawrence Smith, 34, of Bakersfield, charging him with being a felon in possession of a firearm, bank fraud, use and possession of unauthorized debit and credit cards, aggravated identity theft, possession of stolen mail, and unauthorized possession of Postal Service keys and locks, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, Smith unlawfully possessed a 12-gauge shotgun, and from March 2020 through July 2020, he obtained hundreds of pieces of stolen mail that included checks, debit cards, and credit cards belonging to other individuals and businesses. Smith then altered and forged the stolen checks, and used the stolen debit cards to deposit the checks into victims’ bank accounts and make cash withdrawals. Smith also used the stolen debit cards and credit cards to make unauthorized purchases at retail stores. Smith’s scheme caused at least $20,000 in fraudulent transactions to be made on the victims’ bank accounts, debit cards, and credit cards.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joe Barton and Vincente Tennerelli are prosecuting the case.
If convicted, Smith faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the felon in possession of a firearm, use and possession of unauthorized debit and credit cards, and unauthorized possession of Postal Service keys or locks charges, a maximum statutory penalty of 30 years in prison and a fine of up to $1 million for each of the bank fraud charges, a maximum statutory penalty of five years in prison and a fine of up to $250,000 for the possession of stolen mail charge, and a mandatory two-year sentence consecutive to other counts and a fine of up to $250,000 for each of the aggravated identity theft charges. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Smith is presumed innocent until and unless he is proven guilty beyond a reasonable doubt.
Atlantic City Man Charged with Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was charged today with possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Cory Newman, 44, is charged by complaint with one count of possession of child pornography. He is scheduled to appear by videoconference today before U.S. Magistrate Judge Matthew J. Skahill.
According to documents filed in this case and statements made in court:
On May 20, 2021, agents with the Department of Homeland Security, Homeland Security Investigations (HSI), served a search warrant at Newman’s residence and discovered electronic devices that are alleged to belong to Newman. A subsequent forensic examination of one of the devices revealed numerous videos and images of children being sexually abused.
Because Newman has been previously convicted of possession of child pornography, the charge of possession of child pornography carries an enhanced mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of HS - Alantic City, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charge. She also thanked the Atlantic County Prosecutor’s Office, under the direction of Atlantic County Prosecutor Damon G. Tyner, and the Atlantic City Police Department, under the direction of Interim Officer in Charge James A. Sarkos, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Atlanta couple indicted for millions in Economic Impact Disaster Loan Program fraudRead the Press Release
ATLANTA - Paul Kwak and Michelle Kwak have been indicted on charges arising out of a scheme to defraud the U.S. Small Business Administration by filing fraudulent applications in the Economic Impact Disaster Loan (“EIDL”) Program. Congress created EIDL as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to help businesses weather the economic impact of the coronavirus pandemic.
“Fraudulent applications divert the limited pool of funds Congress allocated for pandemic relief from legitimate businesses in need of assistance,” said Acting U.S. Attorney Kurt R. Erskine. “By defrauding the Small Business Administration, the defendants harmed hardworking business owners whom the CARES Act was intended to help.”
“This alleged fraud is especially concerning because it takes advantage of a federal program set up to assist legitimate small businesses who need assistance to survive during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is especially vigilant of such abuse and are making it a priority to make sure government assistance goes only to those who deserve it.”
“Lying to gain access to economic stimulus funds will be met with justice,” SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Paul Kwak and Michelle Kwak conspired to submit fraudulent EIDL applications in the names of shell companies that had no employees and conducted no business activities, to the tune of millions of dollars. An EIDL application must provide, among other information, the amount of revenue the business generated in the 12 months prior to the application and the number of employees. The applicant must certify, under penalty of perjury, that the information is correct and that he or she is legally eligible to apply for an EIDL. The Kwaks are allegedly connected to over 70 fraudulent EIDL applications, of which about half were successful, resulting in over $4 million in fraudulent loans.
Further, Paul Kwak has posted related videos on his YouTube channel. In a May 2020 video titled “EIDL, disaster assistance you don’t have to pay back” in Korean, Kwak explained that applicants can receive tens of thousands of dollars in assistance without collateral or a co-signor, using only the applicant’s electronic signature. One of his clients, according to Kwak, had recently received $150,000 in EIDL proceeds.
Paul Kwak, 63, and Michelle Kwak, 60, both of Braselton, Georgia, were indicted by a federal grand jury on May 18, 2021. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael S. Qin is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Firearms PossessionRead the Press Release
FORT SMITH – A Fort Smith man was sentenced today to 180 months in prison followed by five years of supervised release on one count of Being a Felon in Possession of a Firearm. The Honorable Judge P.K Holmes, III, presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court documents, On September 15, 2020, an Arkansas state arrest warrant was issued out of Sebastian County for Christopher Lee Stowell, 37. On September 17, 2020, the United States Marshals Service was delegated as primary apprehension authority. On September 22, 2020, Stowell was arrested and taken into custody by investigators. During the arrest investigators located a loaded handgun lying next to him.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Sebastian County Sheriff’s Office and The Unites States Marshals Service investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
Stowell was sentenced under the Armed Career Criminal Act, which provides a sentencing range of fifteen years to life for individuals who have been convicted of federal gun crimes and have at least three prior felony convictions for crimes of violence and/or serious drug offenses.
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.
Airline Passenger Charged with Cocaine Possession After Flight Diverted to MSPRead the Press Release
MINNEAPOLIS – A New York man was arrested today in Minneapolis on criminal charges related to his alleged possession of cocaine on a flight from New York to San Francisco, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on May 16, 2021, Jet Blue Airlines flight 915 was en route from New York to San Francisco when it diverted to Minneapolis-St. Paul International Airport because a man, later identified as Mark Anthony Scerbo, 42, was acting erratically and causing a commotion. Witnesses reported Scerbo walking up and down the aisle with a butter knife in his fist, snorting white powder, and had a bag containing a white powdery substance on his tray, which a flight attendant retrieved and later delivered to police. After landing, MSP Airport Police detained Scerbo and took custody of the bag of white powdery substance, which field tested positive for cocaine and weighed 24.5 grams.
Scerbo is charged with one count of possession of cocaine. If convicted, Scerbo faces a maximum of three years in prison and a minimum fine of $5,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorney Miranda E. Dugi is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
19 May 2021
White Supremacist President Sentenced to 35 Years in Violent Racketeering CaseRead the Press Release
LITTLE ROCK—Wesley Gullett, the president of a white supremacist organization which sold multiple kilograms of methamphetamine and committed numerous violent acts—including attempted murder—will spend the more than three decades in federal prison.
On Wednesday, United States District Court Judge Brian S. Miller sentenced Gullett, 31, of Russellville, to 35 years imprisonment, with five years of supervised release to follow, for Gullett’s leadership role in a violent drug conspiracy. There is no parole in the federal system. Gullett was president of New Aryan Empire (NAE), a white supremacist group founded by inmates in the Arkansas Department of Corrections.
Gullett was originally charged in October 2017, and a federal grand jury charged him along with 51 other defendants in a Second Superseding Indictment in September 2019. On February 3, 2021, Gullett pleaded guilty to conspiracy to commit racketeering and conspiracy to possess methamphetamine with intent to distribute. In his plea agreement, Gullett admitted to solicitation to commit murder and attempted murder, among other violent acts.
At Wednesday’s hearing, before imposing the sentence, Judge Miller heard details of how Gullett attempted to murder Bruce Wayne Hurley, an individual who had purchased methamphetamine from NAE associates. Gullett attempted to murder Hurley because he believed Hurley was acting as an informant for law enforcement. Gullett also solicited other NAE members to murder Hurley.
In addition, the NAE, under the direction of Gullett, carried out other retaliatory acts against those who they believed had provided information to law enforcement. Members of NAE retaliated against one alleged witness by kidnapping him, having people take turns beating him, branding his face with a hot knife, and having a dog bite him. Another alleged witness was kidnapped twice, beaten, and stabbed. For violating NAE’s code, the organization physically assaulted and battered, “X’ed” them out (also referred to as taking their patch), or killed violating members.
“This defendant used his corrupt white supremacist organization to commit heinous crimes of violence,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “These despicable acts, which included trying to murder a witness, will now appropriately be punished with 35 years in prison, where this defendant can no longer wreak havoc and poison our community.”
In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as 69 firearms and more than $70,000 in drug proceeds.
Three remaining defendants of the original 51 charged are awaiting trial, which is currently set for September 7, 2021. One defendant is still a fugitive, and all other defendants have pleaded guilty.
Acting U.S. Attorney Ross, together with Drug Enforcement Administration Assistant Special Agent in Charge Jarad O. Harper, and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Resident Agent in Charge Clayton Merrell, announced today’s sentence.
The investigation was conducted by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Drug Enforcement Administration, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys in the Eastern District of Arkansas with assistance from the Department of Justice Criminal Division’s Organized Crime and Gang Section.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Washington Man Sentenced to 20 Years for Sexually Assaulting a ChildRead the Press Release
SPRINGFIELD, Mo. – A Renton, Washington, man was sentenced in federal court today for traveling to Missouri to sexually assault a child victim.
Timothy Smith, 56, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. The court also sentenced Smith to spend the rest of his life on supervised release following incarceration.
On Nov. 9, 2020, Smith pleaded guilty to traveling across state lines to engage in illicit sexual conduct.
The investigation began in April 2018 when the child victim disclosed to a friend that she had been sexually victimized by Smith. This information -was conveyed to a school counselor, who notified the Missouri Department of Social Services. The child victim reported that Smith had sexually assaulted her on multiple occasions between the ages of five and 12. These assaults took place when he traveled from Washington to Missouri, both on the premises of Fort Leonard Wood and at a Missouri residence.
This case was prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the FBI and U.S. Army Criminal Investigation Division.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Waldoboro Man Sentenced for Social Security FraudRead the Press Release
PORTLAND Maine: A Waldoboro man was sentenced today in federal court for Social Security fraud, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge John D. Levy sentenced Wayne Flaherty, 53, to three years of probation, with a condition of 240 hours of community service. He was also ordered to pay $141,214.00 in restitution to the Social Security Administration (“SSA”). Flaherty pleaded guilty on January 26, 2021.
According to court records, from about February 2000 through May 2018, Flaherty, a recipient of Supplemental Security Income (“SSI”), concealed his receipt of money from another individual to maintain his eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Flaherty was reportedly receiving at least $1,500 per month from this individual at the time he applied for benefits, but the amounts increased over the years, with Flaherty receiving a total of at least $846,615.18 from February 2012 through July 2017. The individual also provided Flaherty with a home in February 2012.
Flaherty did not notify SSA that he was receiving these payments at any point during the time he was receiving SSI payments, despite knowing he was required to report them. At an interview with law enforcement agents, he admitted to concealing this information from SSA because he was afraid his benefits would have stopped.
SSA’s Office of the Inspector General, the Maine Department of Health & Human Services, the Lincoln County Sheriff’s Office and the Knox County Sheriff’s Office investigated the case.
Two North Bay Brothers Plead Guilty to Separate but Similar Pandemic Relief Fraud Schemes Netting over $2 MillionRead the Press Release
SAN FRANCISCO – Caesar Oskan, also known as Sezer Ozkan, and his brother Ester Ozkar, also known as Eser Ozkay, pleaded guilty today in federal court to making false statements to a financial institution in separate schemes to defraud the federal government of pandemic relief funds, announced Acting United States Attorney Stephanie M. Hinds; Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Michael Daniels; United States Secret Service Special Agent in Charge of San Francisco Field Office James Anderson; Federal Bureau of Investigation Special Agent in Charge Craig D. Fair; Treasury Inspector General for Tax Administration J. Russell George; Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King; and Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection, Western Region Special Agent in Charge Scott Redington.
Both Caesar Oskan, 66, of San Rafael, and Ester Ozkar, 66, of Novato, admitted as part of their guilty pleas that between March 2020 and June 2020 they each submitted multiple separate fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in a scheme to defraud the Small Business Administration and the banks handling the PPP loans. EIDL and PPP are loan programs designed to help businesses survive during the Covid-19 pandemic.
In his written plea agreement, Caesar Oskan admitted that he obtained $1,006,004 in fraudulent PPP loans and $713,500 in fraudulent EIDL loans and advances. In Ester Ozkar’s plea agreement, he admitted that he obtained $474,132 in fraudulent PPP loans and $9,000 in EIDL advances.
“Pandemic relief funds are limited and intended to save legitimate struggling businesses from failing,” said Acting United States Attorney Stephanie M. Hinds. “Individuals, like these two brothers, who treat these pools of relief funds as their personal bank accounts deserve to be vigorously prosecuted.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with money intended to help businesses affected by the pandemic,” said Michael Daniels, Acting Special Agent in Charge IRS Criminal Investigation. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
“The U.S. Secret Service is dedicated to investigating those who prey on businesses by taking advantage of pandemic relief funds,” said United States Secret Service Special Agent in Charge of the San Francisco Field Office James Anderson. “This investigation exemplifies the success we can achieve when the Secret Service and our law enforcement partners work together to protect America’s financial infrastructure.”
“The FBI and our partners are actively working to identify individuals, like the Oskan brothers, who are taking advantage of COVID relief programs intended to support hardworking Americans and small businesses struggling with financial challenges due to the pandemic,” said FBI Special Agent in Charge Craig D. Fair. “We will continue to collaborate across agency lines to combat this type of fraud and ensure these crucial funds are used as intended – not to enrich those who exploit the system for their own greed.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during these unprecedented times,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”
“Lying to gain access to economic stimulus funds will be met with justice,” said Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
“The defendants admitted to defrauding the federal government of pandemic relief funds and are now convicted felons,” said Scott Redington, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.”
The admissions of the two defendants in their respective written plea agreements describe the breadth of their criminal schemes. In Caesar Oskan’s plea agreement, he admitted that he submitted 27 fraudulent applications for PPP and EIDL loans. The applications were submitted on behalf of several entities with names such as “Bake and Wrap LLC”, “Comfort Plus Transportation LLC”, “Fast Food Plus LLC”, “Healthy Comfort Food”, and “CTC Trade LLC”. Oskan admitted that for many of his applications he registered the fictitious entities with the California Secretary of State, then backdated the Secretary of State documents to reflect earlier creation dates for the entities so that the entity could qualify for a pandemic relief loan. For each of his 27 applications, Oskan created fake IRS tax documents that contained false statements about the number of employees, false payroll costs, and false wage amounts paid.
In an example from his plea agreement, Oskan admitted applying on June 1, 2020, in the name of “CTC Trade LLC” to a bank for a PPP loan in the amount of $268,719. He had registered CTC Trade LLC as a business with the California Secretary of State less than a month before, on May 6, 2020. However, in his application Oskan represented that CTC Trade LLC was created prior to February 15, 2020 (the creation cutoff date for PPP and EIDL loan qualification), employed 17 employees, and had an average monthly payroll of $107,468. Oskan admitted in his plea agreement that each of these representations was false. He further admitted submitting fraudulent Articles of Incorporation and a fraudulent IRS form with the application. The application succeeded, and the bank disbursed $268,719 to him.
Separately, Ester Ozkar admitted in his plea agreement that he submitted eight fraudulent applications for PPP and EIDL loans on behalf of six entities with names such as “7Transportations”, “Alya LLC”, “Century Transportations Inc”, and “Last Mile Shuttle”. Ozkar admitted that Alya LLC was a fictitious entity that he registered with the California Secretary of State and then modified the Secretary of State documents to reflect a creation date earlier than February 15, 2020, so that the entity would qualify for PPP and EIDL loans. He further admitted that for every application, he created and submitted fake IRS tax documents containing false statements about the entity’s number of employees, payroll costs, and wages paid to fictitious employees.
In an example from his plea agreement, Ozkar states that he applied on or about April 7, 2020, on behalf of “Blockchain Tech, LLC” to a bank for a PPP loan in the amount of $46,250. He admitted he represented in the application that Blockchain Tech, LLC was in operation prior to February 15, 2020, employed four employees, and averaged a monthly payroll of $18,500. Ozkar further admitted that each of these representations was false. He also admitted that he submitted multiple fraudulent IRS forms in the application. The application succeeded, and the bank disbursed $46,250 to him.
Caesar Oskan and Ester Ozkar each pleaded guilty to one count of making a false statement to a financial institution, in violation of 18 U.S.C. § 1014. Each defendant faces a maximum penalty of 30 years in prison and a one million dollar fine. However, any sentence imposed by the court will follow only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States District Judge Charles R. Breyer set a sentencing hearing for each defendant on December 15, 2021, at 10 a.m. The defendants remain out of custody on bond.
For background information, the PPP is administered by the U.S. Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. PPP loan proceeds must be used by the business on certain permissible business expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on a PPP loan to be entirely forgiven if the business spends the loan proceeds on these business expense items within a designated period of time and uses at least 60% of the PPP loan proceeds on payroll expenses. Loans made through the PPP are 100% guaranteed by the SBA.
Similarly, the EIDL Program provides low-interest non-forgivable loans and fully forgivable advances to small businesses, among others, in regions affected by disasters. In March 2020 EIDL funds were made available to all states and territories due to the magnitude and severity of the COVID-19 pandemic.
Maya Karwande is the Assistant U.S. Attorney who, along with Assistant U.S. Attorney Chris Kaltsas, is prosecuting the case with the assistance of Ralph Banchstubbs. The prosecution is the result of an investigation by the Internal Revenue Service Criminal Investigation; the United States Secret Service; the Federal Bureau of Investigation; the U.S. Department of the Treasury Inspector General for Tax Administration; the Office of Inspector General for the Small Business Administration; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
Two New Jersey Men Sentenced for Roles in Trafficking Heroin and Cocaine in BayshoreRead the Press Release
TRENTON, N.J. – Two New Jersey men were sentenced today for their roles in a conspiracy to distribute heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, Acting U.S. Attorney Rachael A. Honig announced today.
Daniel McHugh, 51, of Sayreville, New Jersey, was sentenced to 90 months in prison. McHugh previously pleaded guilty before U.S. District Judge Brian R. Martinotti via videoconference to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. McHugh also admitted conspiring to distribute and possess with intent to distribute a quantity of cocaine and possessing with intent to distribute a quantity of crack cocaine.
Brian Hall, 49, of Freehold, New Jersey, was sentenced today to eight months of home confinement and three years of probation. He previously pleaded guilty before Judge Martinotti to an information charging him with one count of conspiring to distribute and possess with intent to distribute heroin. Judge Martinotti imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, McHugh, Hall, and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that McHugh regularly obtained heroin and cocaine for further distribution from co-defendant Guy Jackson. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid. When McHugh was arrested, law enforcement officers recovered quantities of heroin, cocaine, and crack cocaine intended for further distribution, as well as $3,800 in cash that McHugh agreed to forfeit.
In addition to the prison terms, Judge Martinotti sentenced McHugh to four years of supervised release and ordered forfeiture of $3,800.
Today’s sentencings are part of a coordinated takedown in November 2018 of 15 defendants charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Thirteen defendants have pleaded guilty. Supplier Gregory Gillens was sentenced on Sept. 8, 2020, to 10 years in prison for his role in the conspiracy. Lead defendant Guy Jackson is scheduled to be sentenced on June 22, 2021. Defendant Deberal Rogers has been indicted; the charges and allegations contained in the indictment against her are merely accusations, and she is presumed innocent unless and until proven guilty. The charges against one defendant have been dismissed.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Matawan Police Department, under the direction of Chief Thomas J. Falco Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief Robert B. Sheehan; the Hazlet Police Department, under the direction of Chief Ted A. Wittke; and the Aberdeen Police Department, under the direction of Chief Alan Geyer, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Two Facing Federal Gun and Drug Charges following Investigation by ATF and Monroeville PoliceRead the Press Release
PITTSBURGH, PA - A resident of Swissvale, Pennsylvania, and a resident of Clinton, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Khalil Brooks, age 23, of Pittsburgh, PA 15218 and Tyriese Green-Saunders, age 21, of Clinton, PA 15026, as the defendants.
According to the Indictment, on or about April 20, 2021, Brooks, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. Also on or about April 20, 2021, Green-Saunders possessed with intent to distribute a quantity of crack cocaine and a firearm in furtherance of this drug trafficking crime.
For Green-Saunders, the law provides for a maximum total sentence of not less than 5 years to a maximum of life in prison, a fine not to exceed $250,000 or both. For Brooks, the law provides for a maximum total sentence of not more than ten years, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tractor-trailer trafficker sentenced for smuggling over 100 kilograms of cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old Edinburg man has been ordered to federal prison after admitting to his role in a large cocaine trafficking conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Ray Anthony Almaroad pleaded guilty Jan. 26.
Today, U.S. District Judge David S. Morales ordered him to serve an 87-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional statements noting Almaroad’s use of a tractor-trailer hauling a legitimate truckload of limes. He used it as a decoy for the concealed compartment containing over 100 cocaine bundles.
On Nov. 27, 2020, at nearly midnight, Luis Elfego Ramirez drove a tractor-trailer to the Border Patrol checkpoint located near Sarita. Almaroad was the passenger and registered owner of the vehicle. Authorities noted weld marks on the diesel tank where and discovered a custom-made concealed compartment within the fuel tank. Authorities then found and seized 110 bundles of cocaine, with a total net weight of 109 kilograms.
The drugs have an approximate street value of over $3.2 million.
Previously released on bond, Almaroad was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Ramirez, 49, Edinburg, had also pleaded guilty and previously received 120 months imprisonment.
The Drug Enforcement Administration conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney (AUSA) Reid Manning and former AUSA David Paxton prosecuted the case.
Three People Charged in Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A New Jersey man and two men from South Carolina have been charged with conspiring to illegally sell firearms, including five pistols and one rifle, in and around Essex County, New Jersey, Acting U.S. Attorney Rachael A. Honig announced today.
Torell Brown, 45, of Orangeburg, South Carolina, Carter Wilkerson, 21, of Orangeburg, South Carolina, and Mark Washington, 57, of Irvington, New Jersey, are each charged by criminal complaint with one count of conspiracy to engage in the business of unlicensed firearms dealing. Brown and Washington are each additionally charged with one count of possession of firearms and ammunition by a convicted felon.
Brown, Wilkerson, and Washington were arrested May 18, 2021, and appeared by videoconference today before U.S. Magistrate Judge Michael A. Hammer. Brown and Washington were detained; Wilkerson was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From April 2021 through May 18, 2021, Brown, Wilkerson, and Washington were members of a drug trafficking conspiracy. In furtherance of the conspiracy, Brown and Wilkerson trafficked six firearms and a large quantity of ammunition, with the intent to sell these weapons to at least one New Jersey resident. On May 18, 2021, Washington attempted to thwart law enforcement from recovering certain of these firearms.
The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of a firearm and ammunition by a convicted felon carry a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai, and special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian .
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez, of the Violent Crimes Unit and Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Three Missoula area residents admit methamphetamine trafficking crimeRead the Press Release
MISSOULA – Three Missoula area residents accused in a large methamphetamine trafficking ring pleaded guilty on Tuesday, Acting U.S. Attorney Leif M. Johnson said today.
Laura Jeanne Haacke, 46, of Missoula, Jennifer Renee Hawkes, 39, of Missoula, and Jason Dean Hager, 55, of Lolo, each pleaded guilty to possession with intent to distribute meth. Haacke and Hawkes face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hager faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release.
U.S. District Judge Donald W. Molloy presided. Sentencing was set for Dec. 16 for all defendants. Hager and Hawkes were detained, while Haacke was released pending further proceedings.
According to court documents, the government alleged that Haacke, Hawkes, Hager, and a fourth co-defendant, Terry David Starrett, conspired to distribute meth in Missoula from January 2018 through January 2021. Starrett pleaded guilty on May 11 to possession with intent to distribute meth. The government alleged that officers learned through confidential informants that Haacke stored meth for a drug distributor and at one point had 40 pounds of meth in a trap floor at her residence. When interviewed by law enforcement, Haacke admitted that she used meth and that in February 2019, she had about 80 pounds of meth stored in her residence. Eighty pounds of meth is the equivalent of about 289,920 doses.
The government further alleged that in July 2019, Hawkes supplied a person with about two ounces of meth. After the transaction, law enforcement executed a search warrant at Hawkes’ residence and recovered an additional three pounds of meth.
The government also alleged that in December 2019, Hager sold meth to an undercover informant three times in monitored transactions. Agents further learned that a confidential informant saw Hager with one and one-half pounds of meth and that he helped a co-defendant move numerous pounds of meth and kept some to use as his own supply.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Missoula Police Department and Missoula County Sheriff’s Office.
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Texas Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that David Kenneth Martin, 37, of Midland, Texas, has been sentenced for his participation in a methamphetamine trafficking conspiracy which occurred in Baldwin County during 2016 through 2018. In May of 2020, Martin pled guilty to the conspiracy charge.
United States District Court Judge Terry F. Moorer imposed a 96-month sentence in Martin’s case and ordered that Martin serve a five-year term of supervised release when he is released from custody. Martin was also ordered to pay a mandatory special assessment of $100. No fine was imposed.The case was investigated by the Baldwin County Sheriff’s Office and the Baldwin County Drug Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Tennessee Couple Indicted for Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
A federal grand jury recently returned an eight-count indictment charging Haskell Knight, a/k/a “Trey Knight,” age 56, and Emily Knight, a/k/a “Emily Ricciardelli,” a/k/a “Emily Fryer,” age 37, both of Franklin, Tennessee, with conspiracy to commit wire fraud and wire fraud. Each appeared for their arraignments and pled not guilty to the pending charges.
According to the indictment, beginning in March 2016, Haskell Knight and Emily Knight, a husband and wife who at the time lived in Texas and Florida, purported to start a new business. Haskell Knight raised investment funds while Emily Knight handled the bank account. The business was called Udoxa, which allegedly was to market nutritional supplements. The Knights raised $200,000 from four investors who contributed $50,000 each. However, while Udoxa was formed on paper, it never conducted actual sales. Haskell Knight solicited investments under false pretenses and then did little to follow through with starting the business. Knight misrepresented the existence of a rich investor, available formation capital, and the strength of the startup, all to obtain funding, and then failed to use the funds in the agreed-upon manner. Emily Knight accepted a total of $100,000 in wire transfers from two investors, one of whom lived in Baton Rouge. Those funds went in part to pay old business debts and personal expenses. $100,000 from the other two investors was not deposited into the Udoxa account and disappeared.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brian K. Frazier, who also serves as Chief of the Criminal Division.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Supplement Retailers Plead Guilty in Cases Involving Distribution of Designer Steroids as Dietary SupplementsRead the Press Release
Two men and a California business each pleaded guilty this week to conspiring to distribute consumer products that contained designer anabolic steroids.
Justin Smith, 35, of Batesville, Arkansas, pleaded guilty on May 18, 2021, to one count of conspiring to sell controlled substances. According to court documents, Smith admitted that he sold designer steroids that he marketed as “dietary supplements.” Smith further admitted knowing that the unlawful distribution of designer steroids was subject to criminal penalties under the Designer Anabolic Steroid Control Act of 2014 (DASCA), which amended the Controlled Substances Act to include designer steroids. Smith owned Legendary Supplements, an online store whose most profitable products contained anabolic steroids. Smith admitted to distributing more than 60,000 capsules of illegal steroids to consumers in 2015 and 2016.
In a separate but related case, Leonard Shemtob, 39, of Los Angeles, California, pleaded guilty on May 19, 2021, to one count of conspiring to sell controlled substances. According to court documents, Shemtob owned and controlled Strong Supplements LLC, an online company that sold bodybuilding supplements containing designer steroids. Shemtob admitted that he also knew that the distribution of such products was illegal under the Controlled Substances Act and DASCA. Shemtob’s company, Strong Supplements LLC, also pleaded guilty to one count of conspiring to sell controlled substances.
“Dietary supplement products that contain steroids are illegal controlled substances,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will prosecute individuals and companies who ignore the law and put consumers at risk.”
“This week’s actions represent our continued commitment to pursuing and bringing to justice those who mislead the public and attempt to subvert the regulatory functions of the FDA,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA Office of Criminal Investigations.
Both defendants pleaded guilty in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. Smith is scheduled to be sentenced on Nov. 12, and faces a maximum penalty of 10 years in prison. Shemtob and Strong Supplements LLC are scheduled to be sentenced on Dec. 6. Shemtob faces a maximum penalty of 10 years in prison. Strong Supplements LLC faces a maximum penalty of five years of probation and a $2,500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, Smith and Shemtob both stated that they purchased the designer steroids they sold from Blackstone Labs LLC, a corporation based in Boca Raton, Florida. Blackstone Labs and seven other defendants were previously charged by indictment in connection with a conspiracy to distribute controlled substances. One defendant in that case pleaded guilty in 2019, and the remaining defendants are set for trial on Oct. 12, 2021.
The FDA’s Office of Criminal Investigation investigated the cases.
Trial Attorneys Alistair Reader and Steven Gripkey, Senior Litigation Counsel David Frank, and Assistant Director John W. Burke of the Justice Department’s Consumer Protection Branch are prosecuting the cases with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Starkville Physician Sentenced for Receipt and Distribution of Misbranded DrugsRead the Press Release
Oxford, Miss. – A Starkville physician was sentenced today to three years of probation for receiving misbranded drugs in interstate commerce and distributing them with the intent to defraud his patients. In addition to the term of probation, the defendant was ordered to forfeit $105,322.53, to pay a fine of $95,000 and to pay restitution in the amount of $377,545.20.
According to court documents, Benjamin Franklin Sanford, Jr., 69, of Starkville, Mississippi, is a physician who operated Starkville Internal Medicine. From April 2013 to June 2018, foreign versions of prescription drugs, including versions of Prolia, Boniva, and Aclasta, which had not been approved by the FDA, were shipped from overseas to Dr. Sanford’s clinic in Starkville. These drugs were administered to patients of Starkville Internal Medicine without their knowledge that the drugs were foreign versions of the subject drugs which were not FDA approved.
“U.S. consumers rely on FDA oversight to ensure that the drugs they receive are safe and effective. Health care providers who obtain foreign unapproved medicines and then dispense and administer those drugs to their patients put the health of those patients at significant risk,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”
“For medical care, patients rely on safe and approved drugs from their doctors”, said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This sentence and financial penalties will deter other medical providers from seeking non-FDA approved imported medications”.
The FDA Office of Criminal Investigations and the U.S. Department of Health and Human Services, Office of the Inspector General investigated the case. The case was prosecuted by AUSA Robert Mims.
St. Louis County teenager pleads guilty to carjacking resulting in 61-year-old nurse’s deathRead the Press Release
ST. LOUIS – Lashawn T. Clayburn, 19, of Pine Lawn, Missouri, pleaded guilty to one count of carjacking resulting in death and one count of discharge of a firearm in furtherance of a carjacking resulting in death. Clayburn appeared, today, before United States District Court Henry E. Autrey.
On the evening of January 5, 2019, Naomi Miller left her home in the 2500 block of Arden to get into her vehicle to go to her job, where she worked as a healthcare nurse. Clayburn approached Miller, shot her and stole her vehicle from the driveway of her Pine Lawn home. Police were not called until approximately an hour later. When they arrived at Miller’s home, she had died from the gunshot wound.
Clayburn spent the next several hours driving around in Miller’s vehicle and picking up friends of his for the purpose of going “Joyriding." About an hour and a half after the homicide, Clayburn pulled up to a Steak N' Shake off of Jennings Station Road with two friends and was captured on surveillance video. Clayburn was also captured on surveillance at a Taco Bell location where he met with two relatives to discuss disposing of the vehicle.
The following day, Clayburn met with a group of his friends at a residence in the 8800 block of Alva to trade Miller’s vehicle for another stolen vehicle, since the vehicle Clayburn was driving was associated with Miller’s homicide. Clayburn and his friends, claiming to be part of a gang calling themselves "Murdaa Gang," took the license plate off of Miller’s vehicle and disposed of it in a neighboring back yard before replacing it with a license plate from another stolen vehicle.
On March 13, 2019, after being interviewed by federal agents relative to the carjacking and Miller’s murder, Clayburn placed a recorded jail call to his cousin in an attempt to secure a false alibi for the night of January 5, 2019. Clayburn used another inmate's PIN number and told his cousin to "delete the call" in an effort to destroy evidence of the conversation.
“Naomi Miller was a phenomenal woman. She was kind, humble and generous. She valued family and friends and never met a stranger. My aunt was the type of person that would have given you the last dollar in her pocket. What happened to her was not fair, but I believe my aunt would forgive the people that did this to her,” said Shanna Wakefield, Miller’s niece. ”My family is so thankful for all of the hard work that law enforcement put into this investigation, and the work of the US Attorney’s Office in getting the case prosecuted. While my family knows that nothing can bring our wonderful aunt back, we find comfort knowing that the guilty individuals will be held responsible for their actions, and hope this will make others think twice before taking another innocent life.”
“Ms. Miller’s death was a senseless tragedy, and this case highlights our office’s commitment to inter-agency cooperation to achieve some measure of justice on behalf of victims’ families,” said U.S. Attorney Sayler A. Fleming. “The agencies involved in this investigation showed tireless dedication in exhausting every lead until they found the perpetrator.”
Judge Autrey has set sentencing for August 19, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Louis Metropolitan Police Department, North County Police Cooperative and Major Case Squad investigated the case. Assistant United States Attorney Angie Danis is handling the case.
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St. Croix Man Who Possessed Firearm During A Drug Trafficking Offense Sentenced to 6 Years in Federal PrisonRead the Press Release
ST. CROIX, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ladislau Concepcion, Jr., age 47, was sentenced in federal court on May 18, 2021 after pleading guilty to carrying a firearm during a drug trafficking offense.
District Court Chief Judge Wilma A. Lewis sentenced Concepcion to 72 months of Federal incarceration, with credit for time served, followed by 5 years of supervised release and ordered Concepcion to pay a special assessment of $100. The firearm, which Concepcion did not have a license to possess, was ordered forfeited.
According to court documents, on March 7, 2017, Concepcion was the subject of a law enforcement-initiated traffic stop near the Golden Rock McDonald’s on St. Croix. He failed to produce a valid driver’s license, insurance, or registration for the vehicle he was operating. Subsequently, a K-9 drug detection dog alerted for the presence of narcotics in the rear of the vehicle, and a search of the vehicle resulted in the seizure of 172 grams of marijuana, 11 grams of crack cocaine, 10 grams of cocaine, empty vials, plastic baggies, a digital scale, scissors, and three cellular phones. Officers found a loaded Taurus .38 caliber handgun in the vehicle’s glove box. Concepcion, a convicted felon, did not have a license to possess the firearm, and was not permitted to possess it according to law.
The case was investigated by the U.S. Virgin Islands Police Department and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Southwest Honkys Gang Member Sentenced to 25 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Fair Grove, Missouri, man who is a member of the Southwest Honkys violent prison gang was sentenced in federal court today for his role in a drug-trafficking conspiracy in which investigators intercepted a shipment of nearly 9.5 kilograms of methamphetamine.
William F. Jones, 45, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole.
On May 21, 2020, Jones pleaded guilty to participating in a conspiracy to distribute methamphetamine in Christian County, Greene County, and Polk County, Missouri, from Dec. 21, 2016, to Oct. 15, 2017.
Jones was identified as a high-level member of the Southwest Honkys prison gang who had declined a top leadership role.
Jones, under the surveillance of law enforcement, drove to the Kansas City, Missouri area on Oct. 11, 2017, and checked into an Independence, Mo., hotel. A few days later, co-defendant Justin L. Rhoads, 33, of Lebanon, Mo., met Jones in the hotel’s parking lot. They put a large duffel bag in the cab of Rhoads’s pickup truck, and he left the parking lot. Rhoads was later stopped by a Missouri State Highway Patrol trooper on Missouri Highway 13, just south of Humansville, Mo. The trooper searched Rhoads’s vehicle and found 10 Ziploc-style plastic bags inside the duffel bag that contained a total of approximately 9,439 grams of methamphetamine, which was determined to be at least 93 percent pure.
Rhoads pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on Jan. 21, 2021, to 12 years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Combined Ozarks Multi-Jurisdictional Enforcement Team, the Greene County, Missouri, Sheriff’s Office, and the Missouri State Highway Patrol,
Organized Crime and Drug Enforcement Task Force
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.
Smithfield Sex Offender Indicted for Multiple Child Sexual Exploitation OffensesRead the Press Release
PROVIDENCE, R.I. – A registered sex offender living in Smithfield was ordered detained by a federal magistrate judge Tuesday after a federal grand jury returned an indictment charging him with multiple child sexual exploitation offenses. Mathew Hoard, 35, was charged in a five-count indictment with Attempted Enticement of A Minor to Engage in Criminal Sexual Activity; Attempted Transfer of Obscene Material to a Minor; Distribution and Possession of Child Pornography; and Committing Offenses While Required to Register as a Sex Offender.
According to court documents and information presented to the court, Hoard was convicted of possession of child pornography in Rhode Island Superior Court in 2010 and sentenced to five years of probation and required to register as a sex offender. According to information received by the National Center for Missing and Exploited Children, in February 2020 an individual uploaded child pornography to a social media application. Members of the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC) traced the upload to Hoard.
Meanwhile, in a separate ICAC investigation, Hoard was allegedly communicating via a social media application with an individual he believed was a 14-year-old girl. Hoard allegedly sent obscene images to the 14-year-old; requested the 14-year-old send nude images of herself to him; said he wanted to marry her, and repeatedly asked the 14-year-old to meet for sex. Court-authorized searches discovered electronic media devices owned by Hoard that allegedly contained child pornography and other evidence related to the case.
Hoard was arrested on Tuesday by members of the ICAC and Homeland Security Investigations and was ordered detained by United States Magistrate Judge Lincoln D. Almond following an initial court appearance in U.S. District Court, announced Acting United States Attorney Richard B. Myrus.
If convicted as charged, Hoard faces a mandatory minimum sentence of at least 15 years in federal prison.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams. It was investigated by the Rhode Island Stated Police Internet Crimes Against Children Task Force with assistance from the Homeland Security Investigations.
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Six defendants charged with selling millions of dollars’ worth of psychedelic mushrooms onlineRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged six individuals with selling liquid psychedelic mushrooms online to customers all over the country, including at least one identified customer in Columbus, Ohio.
The six defendants were charged by criminal complaint in April with attempting and conspiring to manufacture, distribute and dispense controlled substances using cryptocurrencies via the dark web. The group was allegedly orchestrating millions of dollars of online drug sales.
In the indictment filed today, the defendants are charged with one count of conspiring to possess with intent to distribute a psychedelic mushroom analogue. Each of the defendants faces up to 20 years in prison.
According to court documents, between November 2013 and April 2021, co-conspirators sold liquid psychedelic mushrooms in nine milligram vials for approximately $20 each on the darknet through the moniker TRIPWITHSCIENCE.
In this case, the government seeks to forfeit the profits of the alleged drug scheme, as well as a 2016 Tesla Model-X Wagon and land in Brighton, Colorado valued at more than $1.5 million.
Those charged include:
Name
Age
Residence
James Verl Barlow
44
Las Vegas
Matthew Taylor Barlow
35
Murray, Utah
Ronald Royal Edward Brust
45
Las Vegas
Jennifer Helen Campbell
42
Murray, Utah
Monet L. Carriere
32
Las Vegas
Tony Du Phan
44
Memphis, Tenn.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Lisa B. Mendelsohn, Acting Assistant Special Agent in Charge, IRS Criminal Investigation; Keith Martin, Special Agent in Charge, DEA; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Lesley C. Allison, Inspector in Charge, United States Postal Inspection Service (USPIS); and Franklin County Sheriff Dallas Baldwin announced the charges. The case was investigated by the South-Central Ohio High Intensity Drug Trafficking Area Cyber Task Force. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
An indictment is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
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Sioux City Man Sentenced to Federal Prison for Repeated Unlawful Possession of FirearmsRead the Press Release
A man who illegally possessed a gun on two occasions was sentenced to seven years in federal prison.
Angelo Campbell, age 28, from Sioux City, Iowa, received the prison term after a December 16, 2020, guilty plea to two counts of possession of a firearm by an unlawful drug user and domestic abuse misdemeanant.
Evidence at Campbell’s detention, change of plea and sentencing hearings revealed he possessed two different guns on two separate occasions after having been convicted of Domestic Abuse Assault in 2014 and 2016, and while an unlawful user of methamphetamine and marijuana.
Campbell was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Campbell was sentenced to 84 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Campbell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4058.
Follow us on Twitter @USAO_NDIA.
Shawnee Man Sentenced to Serve 78 Months in Federal Prison for Illegal Possession of Ammunition After Being Convicted of FeloniesRead the Press Release
OKLAHOMA CITY – Yesterday, TODD ANTHONY JOHNSON, 39, of Shawnee, was sentenced to serve 78 months in federal prison for possessing ammunition as a convicted felon, announced Acting U.S. Attorney Robert J. Troester.
On September 15, 2020, Johnson pleaded guilty to illegally possessing ammunition as a convicted felon. According to court documents, on April 23, 2019, Johnson illegally possessed 25 rounds of ammunition, three of which were found in a shotgun used to threaten his girlfriend during a domestic dispute. Prior to being found in possession of the ammunition, Johnson had been convicted of burglary in the first degree and knowingly concealing stolen property in Lincoln County. Federal law prohibits prior convicted felons from possessing firearms or ammunition.
Evidence at sentencing showed that Johnson had been subject to five protective orders. These protective orders were sought by separate women whom Johnson had threatened or abused.
Yesterday, U.S. District Judge Jodi W. Dishman sentenced Johnson to serve seventy-eight months in federal prison, followed by three years of supervised release. In imposing the sentence, Judge Dishman noted Johnson’s history of domestic violence and abuse of intimate partners. Johnson has been in custody since his arrest on the federal charges on February 20, 2020.
This sentence is the result of investigations by the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Shawnee Police Department. Assistant U.S. Attorneys Mary E. Walters, Jason M. Harley, and Jacquelyn M. Hutzell prosecuted the case.
This case is part of "Operation 922," the Western District’s local implementation of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s initiatives to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
San Jose Man Sentenced to 20 Months for Computer Hack That Shut Down Opening Day Concession Sales at Earthquakes StadiumRead the Press Release
SAN JOSE – Salvatore A. La Rosa was sentenced today to 20 months in prison and ordered to pay $268,733 in restitution as well as a $5,000 fine for intentional damage to a protected computer, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by United States District Judge Lucy H. Koh.
La Rosa, 41, of San Jose, pled guilty on February 17, 2021, to accessing without permission the Spectra Food Services and Hospitality’s (Spectra) on-line concessions management account for Earthquakes Stadium on February 29, 2020, the first home game of the San Jose Earthquakes 2020 MLS season. Spectra was the stadium’s concessions contractor, and its employees used Spectra’s mobile tablets as Point-of-Sale terminals to sell food and other items. The tablets displayed menus and payment selections from an online-based application developed for sports stadiums.
According to his plea agreement and a filing by the government for sentencing, La Rosa worked at the stadium from February 14, 2015, until Spectra terminated him from his job as Operations and Premium Services Manager on January 6, 2020. La Rosa admitted that he later logged into the administrative portal for the Earthquakes Stadium from his residence and used a password, without authority, to access Spectra’s concessions menu and payment selections. He then deleted them. The deletion caused the Point-of-Sale tablets used by Spectra’s staff to stop working during the February 29, 2020, opening day soccer match and disabled Spectra’s ability to accept credit cards. Spectra’s employees were forced to resort to handwriting orders and using calculators to complete cash transactions. The resulting delays led to lost sales from the inability to process orders and, according to the government’s filing, a devastating impact on staff due to verbal abuse from frustrated, angry customers. In some instances, Spectra had to provide free food and beverages to club members due to its inability to process credit card transactions.
On March 7, 2020, Spectra and the San Jose Earthquakes, in an attempt to regain the trust and business of customers, offered a fifty-percent discount on all concessions at that day’s game.
Spectra suffered a loss of $268,733 in damages, consisting of lost revenue, concession discounts offered at the March 7 game, employee time to repair the damage to the data, and labor costs.
On October 27, 2020, La Rosa was charged by Information with one count of Intentional Damage to a Protected Computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i), a charge to which he pleaded guilty on February 17, 2021.
United States District Judge Koh also sentenced the defendant to a three year period of supervised release. The defendant remains out of custody on bond and will begin serving the sentence on July 28, 2021.
Susan Knight is the Assistant U.S. Attorney who prosecuted the case with the assistance of legal tech Elise Etter and paralegal Rebecca Shelton. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
San Diego Man Pleads Guilty in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and Mikaela L. Weber (619) 546-9734
NEWS RELEASE SUMMARY – May 19, 2021
SAN DIEGO – Tony Davis pleaded guilty in federal court today, admitting that he supplied fentanyl that led to the fatal overdose of Jacqueline Galvan, a 41-year-old San Diego woman, on October 24, 2018.
According to his plea agreement, Davis agreed to sell more than 100 grams of what he knew to be heroin in the fall of 2018, and that on October 24, 2018 he distributed heroin and fentanyl to another street-level drug dealer who in turn distributed the drugs that caused Galvan’s death.
Davis further acknowledged selling more than 100 grams of heroin to the drug dealer who was, in turn, distributing those drugs to others. Davis pleaded guilty before U.S. Magistrate Judge Linda Lopez to Distribution of Heroin and Fentanyl and Conspiracy to Distribute Heroin and is scheduled to be sentenced on August 6, 2021 by U.S. District Judge Cathy Ann Bencivengo.
DEA Narcotic Task Force Team 10 led the investigation in this case. Team 10 is a specialty unit, with investigators from HSI, FBI, San Diego Police Department, CA Department of Health Care Services and the San Diego District Attorney’s Office, that investigates overdose deaths in San Diego. Team 10 responds to the discovery of overdose victims and aggressively pursues criminal cases, up the distribution chain, against the dealers and their sources of supply.
“This case should put drug dealers and those who supply them on notice that every time we have an overdose death, law enforcement will come looking for you, because lives are at stake,” said Acting U.S. Attorney Randy Grossman. “We will not stop with the street-level dealers but will follow the supply chain as far up as necessary and will use every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”
“This case is another example of how DEA and our law enforcement partners on Team 10 – the Overdose Response Team – are working together to put the people responsible for supplying deadly drugs in prison,” said DEA Special Agent in Charge John W. Callery. “DEA will continue to aggressively pursue both street-level dealers and their suppliers and bring justice to the families who lost a loved one to a drug overdose.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the National City Police Department, the Drug Enforcement Administration and other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
Acting U.S. Attorney Randy Grossman praised prosecutors Stephen H. Wong and Mikaela L. Weber as well as DEA Team 10 investigators for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 19-CR-0294-CAB
Tony Davis Age: 65
SUMMARY OF CHARGES
Distribution of Heroin and Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Conspiracy to Distribute Heroin – Title 21, U.S.C., Section 841(a)(1) & 846
Penalties: Mandatory minimum five years in prison; maximum 40 years in prison
AGENCY
Drug Enforcement Administration
San Antonio Man Indicted for Distributing Fentanyl Resulting in DeathRead the Press Release
SAN ANTONIO – A San Antonio man stands charged with distributing a controlled substance containing fentanyl that resulted in a person’s overdose death in October of last year.
A four-count federal grand jury indictment returned this afternoon charges 27-year-old Patrick James Hall with one count of conspiracy to possess with intent to distribute fentanyl resulting in death; one count of possession with intent to distribute fentanyl resulting in death; and two counts of possession with intent to distribute fentanyl.
The indictment alleges that on October 28, 2020, the defendant possessed and sold fentanyl-laced pills to the victim who died after ingesting them. The indictment also alleges that the defendant possessed with intent to distribute fentanyl on October 26, 2020 and November 19, 2020.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Field Office made today’s announcement.
Upon conviction, Hall faces between 20 years and life in federal prison for the conspiracy and substantive charges alleging a result of death and up to 20 years in federal prison for each of the remaining two drug charges.
The DEA, with assistance from the San Antonio Police Department, investigated this case. Assistant U.S. Attorney Amy Marie Hail is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Russian Citizen Sentenced to 60 Months’ Imprisonment for Cyber Tax Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Anton P. Bogdanov, a citizen of Russia, was sentenced by United States Chief District Judge Margo K. Brodie to 60 months’ imprisonment for wire fraud conspiracy and computer intrusions in connection with a scheme in which he and others hacked into private tax preparation firms, stole personal information, used that information to file federal tax returns and fraudulently attempted to obtain more than $1.5 million in tax refunds from the Department of the Treasury. The Court also ordered Bogdanov to pay $476,713 in forfeiture. Bogdanov was arrested in Bangkok, Thailand in November 2018, extradited to the United States in March 2019 and pleaded guilty in January 2020.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence.
“Bogdanov hacked into tax preparation firms and used illegally obtained private information from innocent victims to try to steal their federal income tax refunds for his own use,” stated Acting United States Attorney Lesko. “Today’s sentence underscores the commitment of this Office to protecting the integrity of private tax return information and holding corrupt hackers like the defendant accountable for his crimes.”
“Victims in this investigation may have thought justice would be elusive when they learned Bogdanov and his cohorts were in Russia. Today's result should serve as a reminder that our reach is global, and we are laser-focused on stopping cyber criminals wherever they may try to hide,” stated FBI Assistant Director-in-Charge Sweeney.
“Bogdanov utilized sophisticated means to steal two valuable commodities, peoples personally identifiable information and funds belonging to the American Taxpayer, stated IRS-CI Special Agent-in-Charge Larsen. “IRS-Criminal Investigation will continue to work side-by-side with our law enforcement partners to identify and prosecute international cyber criminals who infiltrate our tax system for personal gain. Justice was served in today’s sentence and should serve as a warning that cyber-criminals cannot hide anonymously beyond our borders.”
Between June 2014 and November 2016, Bogdanov, who used the online moniker “Kusok,” and his co-conspirators misappropriated personally identifiable information (“PII”), such as Social Security numbers and the dates of birth of their victims, by gaining unauthorized access to the computer systems of private tax preparation firms in the United States. Bogdanov and his co-conspirators then changed the tax return information so that the refunds were paid to prepaid debit cards that they controlled. Bogdanov and his co-conspirators also used misappropriated PII to obtain prior tax filings of victims from the IRS Transcript System website, and filed new tax returns, purportedly on behalf of the victims, so that refunds were paid to prepaid debit cards under their control. The debit cards were cashed out in the United States, and a percentage of the proceeds was wired to Bogdanov in Russia.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Jonathan E. Algor is in charge of the prosecution.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché abroad and foreign authorities provided critical assistance in this case. The Office extends its appreciation to the Royal Thai Police, particularly the Crime Suppression Division, and the FBI’s Legal Attaché Bangkok for their assistance in apprehending the defendant. The Office also extends its appreciation to the New York County District Attorney’s Office for their assistance in this case.
The Defendant:
ANTON P. BOGDANOV (also known as “Kusok”)
Age: 35
RussiaE.D.N.Y. Docket No. 19-CR-197 (MKB)
Readout of Attorney General Merrick B. Garland’s Call with Bill Blair, Minister of Public Safety and Emergency Preparedness of CanadaRead the Press Release
Attorney General Merrick B. Garland spoke yesterday with Bill Blair, the Minister of Public Safety and Emergency Preparedness of Canada. In their inaugural bilateral conversation, the leaders discussed their shared commitment to cooperating at the strategic level on a wide range of shared challenges and opportunities – from advancing policing and justice reform to countering the threats posed by domestic violent extremism. Attorney General Garland and Minister Blair also reaffirmed their commitment to reinvigorating the U.S./Canada Cross-Border Crime Forum as a mechanism for enhancing bilateral cooperation between the Justice Department and Public Safety Canada on common law enforcement objectives, including reducing gun violence and addressing shared narcotics threats from transnational criminal organizations.
Quapaw Man Convicted of Sexually Abusing a Native American Minor and Illegally Possessing Parts of Protected EaglesRead the Press Release
A man who portrayed himself as a Native American spiritual counselor was convicted Tuesday by a federal jury of sexually abusing a Native American minor and illegally possessing feathers, talons and heads from seven bald eagles and seven golden eagles, announced Acting U.S. Attorney Clint Johnson.
The jury found Carl Gene Ortner Jr., 57, of Quapaw, guilty of transportation with intent to engage in criminal sexual activity, sexual abuse of a child in Indian Country, abusive sexual contact in Indian Country, possession of parts of a bald eagle, and possession of parts of a golden eagle. U.S. District Judge John F. Heil III presided over the trial and set sentencing for Sept. 30, 2021.
“Carl Ortner is not a Native American spiritual counselor, as he led his community to believe. A jury this week saw Ortner for what he was – a predator who targeted a vulnerable young victim, using her Native American heritage and grief to sexually abuse her,” said Acting U.S. Attorney Clint Johnson. “During this trial, two other victims came forward and stated that Ortner also abused them. All three of these young women are to be commended for their bravery and for stopping this defendant from harming others.”
“No matter what type of crime wildlife is connected to, we will work tirelessly with our law enforcement partners for justice,” said Phillip Land, Special Agent in Charge of the Southwest Region for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “These guilty verdicts send a strong message that these types of crime will not be tolerated, and we thank the U.S Attorney’s Office, the Federal Bureau of Investigation, Bureau of Indian Affairs, Oklahoma Department of Wildlife Conservation, and the Ottawa County Sheriff’s Office for their assistance with this case.”
Assistant U.S. Attorneys Shannon Cozzoni and Ryan Roberts argued that Ortner fraudulently claimed to be a Native American spiritual counselor. Assistant U.S. Attorney Cozzoni pointed out the defendant portrayed himself as an Indian, yet he had no tribal affiliation. He told several people he was a member of several Tribes, but no Tribe claimed him.
A special agent with the Fish and Wildlife Service testified that investigators discovered feathers and various parts of bald and golden eagles, including heads, talons, and entire wings, at Ortner’s residence. Native Americans consider eagles to be sacred and use the parts in cultural and religious practices. Ortner illegally possessed the feathers and parts.
Further evidence was presented showing that the defendant used his position of influence to groom the victim and force her into sexual relations with him, using her cultural beliefs and vulnerability against her. The victim also had been struggling with losing a loved one, and Ortner used the loss to further groom the victim.
In 2016, Ortner began sexually abusing the minor. While some of the abuse allegedly occurred within state jurisdiction, Ortner, who is not a tribal citizen, also abused the victim on Indian land, which falls within federal jurisdiction. Furthermore, Ortner at one point drove the victim to Joplin, Missouri, to engage in criminal sexual activity with the minor victim. Crossing state lines to engage in illegal activity falls within federal jurisdiction.
Witnesses testified that Ortner threatened to embarrass the victim and the tribe unless she said the sexual assault did not happen. Also testifying for the government were two other women who stated that Ortner also groomed them as minors and sexually abused them.
In the Government’s closing, Assistant U.S. Attorney Roberts reminded the jury that all three women, who did not know one another, had made similar statements in court. They were vulnerable minors when the sexual abuse occurred. Several had experienced recent deaths of loved ones, which Ortner exploited. Ortner would also buy them lingerie and use the same term to describe the undergarments. Roberts called Ortner a wolf in sheep’s clothing, stating that he disguised himself as a caring Native American elder to get close to the victims. Then when the time was right, Ortner attacked.
The jury took less than two hours to deliberate before coming back with guilty verdicts on all five counts.
The U.S. Fish & Wildlife Service Office of Law Enforcement, Oklahoma Department of Wildlife Conservation, Ottawa County Sheriff’s Department, FBI, and the Bureau of Indian Affairs conducted the investigation. Assistant U.S. Attorneys Ryan Roberts and Shannon Cozzoni prosecuted the case.
Pittsburgh Felon Indicted on Gun ChargeRead the Press Release
PITTSBURGH, PA. - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Fred Marshall, 41, as the sole defendant.
According to the Indictment, on August 21, 2020, Marshall is alleged to have possessed a firearm and ammunition as a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Electrical Contractor Sentenced to Two Years on Charges of Tax Fraud and Theft of Employee BenefitsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Donald Dougherty, 55, of Philadelphia, PA, was sentenced to two years in prison, one year of supervised release, and was ordered to pay approximately $358,000 in restitution and a $125,000 fine by United States District Judge Michael M. Baylson for filing a false income tax return and theft from an employee benefit plan.
In January 2021, the defendant pleaded guilty to the charges, which arose from his ownership of Dougherty Electric Incorporated (DEI), an electrical contracting firm located in Philadelphia. The false income tax return charge related to Dougherty’s diversion of DEI resources for his personal benefit. In 2015, he used the resources of DEI to pay for $237,100 in personal expenditures, including a Dougherty family vacation at the Ritz Carlton Hotel in Miami; repairs to his home; condominium association fees for his wife’s New Jersey condominium; expenses for beer delivery; and $25,000 transferred from the DEI operating account and deposited into the defendant’s personal account. Dougherty failed to report the receipt of these benefits on his personal income tax return for 2015.
The charge of theft from an employee benefit plan resulted from Dougherty’s failure to pay benefits over to a labor benefit plan as required by a collective bargaining agreement between the national Electrical Contractors Associations and International Brotherhood of Electrical Workers (IBEW) Local 5 in Pittsburgh. The agreement required DEI to file payroll and remittance reports with Local 5 that identified DEI employees working in Pittsburgh, the hours worked, the wages they earned, and to then make corresponding contributions to the Local 5 benefit plans. Dougherty skirted around the agreement by using non-union labor to work on a contract project in Pittsburgh. He concealed his use of non-union labor by using his brother’s pass-through company to pay non-union electrical workers on DEI’s Pittsburgh projects. The deception enabled him to avoid making total contributions of $266,000 to Local 5’s benefit fund.
“Donald Dougherty’s schemes to enrich himself backfired, and now he has received a just punishment as the consequence of his actions,” said Acting U.S. Attorney Williams. “This is an important reminder for those who might consider filing false returns: the government is very good at detecting this type of fraud – and you will be found out and prosecuted.”
“Mr. Dougherty not only stole from the Government, he put his own interests ahead of honest and hard-working union members,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Such greed and corruption cannot go unchecked. The FBI is committed to working with our law enforcement partners to protect the Government’s resources and dedicated laborers everywhere.”
“Today’s sentence sends a clear message that the laws of the land apply to everyone,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “No matter who you are, it is unacceptable to purposely underreport your income. If you intentionally file fraudulent tax returns, your status will not protect you from federal prosecution.”
“The U.S. Department of Labor, Employee Benefits Security Administration, will pursue to the fullest extent of the law those who unlawfully profit by failing to make required contributions to employee benefit plans,” said Michael Schloss, Regional Director of EBSA’s Philadelphia Regional Office.
The case was investigated by the FBI, IRS Criminal Investigations Unit, and the Employee Benefits Security Administration of the U.S. Department of Labor, and is being prosecuted by Assistant United States Attorney Richard P. Barrett and Frank Costello.
Owner of Wedding Planning Company Pleads Guilty to COVID-19 Relief FraudRead the Press Release
PLANO, Texas – A Murphy, Texas, man, pleaded guilty today to filing fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Fahad Shah, 44, admitted that he sought over $3 million in PPP loans from two different SBA-approved lenders. In the first application submitted to one lender, Shah sought over $1.7 million in PPP loan proceeds by fraudulently claiming that his company, WBF Weddings by Farah Inc. (WBF), employed 126 individuals with an average monthly payroll of over $700,000. In the second application, Shah sought over $1.5 million in PPP loan proceeds by fraudulently claiming that WBF had 126 employees with an average monthly payroll of over $600,000. According to court documents, WBF had only two employees. In connection with both PPP loan applications, Shah submitted fraudulent Employer’s Quarterly Federal Tax Return (IRS Form 941) documents for 2019.
“PPP loans were intended to help businesses keep themselves and their employees afloat during the COVID-19 pandemic,” said Acting U.S. Attorney Nicholas J. Ganjei. “PPP loans were not, and never were, intended to serve as personal loans for personal use. By applying and qualifying for PPP funds on fraudulent grounds, Fahad Shah took advantage of the COVID-19 economic crisis to enrich himself and his family. By seeking a loan that he should not have received, Shah helped to deplete the amount of funds available to all potential legitimate borrowers who really needed financial support. This plea shows that the Eastern District of Texas is dedicated to pursuing fraudsters and ensuring they do not benefit from their crimes.”
Shah admitted that he obtained over $1.5 million in PPP loan proceeds. Within days of receiving the PPP funds, Shah used over $1 million in fraudulently obtained proceeds to pay off his home mortgage, purchase securities through his personal investment account, and buy two Teslas, two Freightliner trucks, and a Mercedes Benz van.
Shah was indicted by a federal grand jury on June 18, 2020, and pleaded guilty to wire fraud today. Under federal statutes, Shah faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Acting U.S. Attorney Nicholas Ganjei of the U.S. Attorney’s Office for the Eastern District of Texas; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Acting Special Agent in Charge Mark Pearson of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA are investigating the case.
Assistant U.S. Attorneys Frank Coan and Robert Wells of the Eastern District of Texas and Trial Attorneys Della Sentilles and Louis Manzo of the Justice Department’s Fraud Section are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
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 to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Owner of Wedding Planning Company Pleads Guilty to COVID-19 Relief FraudRead the Press Release
A Texas man pleaded guilty today to filing fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Fahad Shah, 44, of Murphy, admitted that he sought over $3 million in PPP loans from two different SBA-approved lenders. In the first application submitted to one lender, Shah sought over $1.7 million in PPP loan proceeds by fraudulently claiming that his company, WBF Weddings by Farah Inc. (WBF), employed 126 individuals with an average monthly payroll of over $700,000. In the second application, Shah sought over $1.5 million in PPP loan proceeds by fraudulently claiming that WBF had 126 employees with an average monthly payroll of over $600,000. According to court documents, WBF had only two employees. In connection with both PPP loan applications, Shah submitted fraudulent Employer’s Quarterly Federal Tax Return (IRS Form 941) documents for 2019.
Shah admitted that he obtained over $1.5 million in PPP loan proceeds. Within days of receiving the PPP funds, Shah used over $1 million in fraudulently obtained proceeds to pay off his home mortgage, purchase securities through his personal investment account, and buy two Teslas, two Freightliner trucks, and a Mercedes Benz van.
Shah pleaded guilty to one count of wire fraud. He is scheduled to be sentenced at a future date and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Nicholas Ganjei of the U.S. Attorney’s Office for the Eastern District of Texas; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – OIG (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); Acting Special Agent in Charge Mark Pearson of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA are investigating the case.
Trial Attorneys Della Sentilles and Louis Manzo of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Robert Wells of the U.S. Attorney’s Office for the Eastern District of Texas are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
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 to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Omaha Felon Sentenced to 37 Months for Possessing a FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Willie L. Hill, 47, of Omaha, Nebraska, was sentenced today in federal court in Omaha for being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Hill to a term of incarceration of 37 months. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On March 1, 2020, the Omaha Police Department (OPD) Gang Unit received information that Hill, a wanted fugitive, could be located at a motel on Dodge Street in Omaha. Police responded and observed several persons present, moving between two rooms. Officers had also received information that firearms and drugs were present. Officers converged to arrest Hill, who was among the people moving between rooms.
Hill was detained on an outside balcony and searched by an OPD Sergeant who recovered a .25 caliber Phoenix P51 handgun from Hill’s jacket pocket. Hill was arrested when a data check showed he had previously been convicted of several crimes in the District Court of Douglas County, Nebraska. Hill has been convicted of Tampering with a Juror, Witness, or Informant (2018), Burglary (2011), and Theft by Shoplifting (2013), all felonies which may result in imprisonment in excess of one year.
This case was part of Project Safe Neighborhood (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was primarily investigated by the Omaha Police Department Gang Unit.
Ohio man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Larry Cuffman, of Martins Ferry, Ohio, was sentenced today to 10 months of incarceration for his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Cuffman, also known as “Pops,” age 60, pled guilty in March 2021 to one count of “Aiding and Abetting the Distribution of Cocaine Base.” Cuffman admitted to selling cocaine base, also known as “crack,” in June 2020 in Ohio County.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Ohio Man Sentenced to More than Seven Years in Federal Prison for Wire FraudRead the Press Release
CHARLESTON, W.Va. – Ricky V. McLaughlin, 63, of Belpre, Ohio was sentenced to 87 months in prison for wire fraud. He was also ordered to pay over $700,000 in restitution.
According to court documents, McLaughlin operated the McLaughlin Motor Car Museum located in Parkersburg. For more than four years, McLaughlin stole money and defrauded 17 customers of more than $1 million through a wire fraud scheme. McLaughlin sold collector cars, including various Pontiac Trans Am classic cars to individuals. Also, some customers sold their collector cars to McLaughlin for restoration and other customers bought collector cars from McLaughlin and the Motor Car Museum and then ask him to resell these collector cars at a later date on consignment. During his fraud scheme, McLaughlin would sometimes sell individuals Pontiac Trans Am classic cars but refused to provide the customers with either the titles to the vehicles or the vehicles themselves. At times, McLaughlin would sell the same Pontiac Trans Am to multiple customers, while at other times, McLaughlin would sell the Pontiac Trans Am cars on consignment but refused to send the sale proceeds of the collector cars to the car owners.
Acting United States Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Police Department. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
United States District Court Judge Irene C. Berger imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00182.
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North Fort Myers Man Sentenced to More Than 19 Years in Prison for Distribution of MethamphetamineRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Chester “Chet” Risco (36, North Fort Myers) to 19 years and 7 months in federal prison for distributing methamphetamine. Risco had pleaded guilty to four counts of distributing the drug on September 1, 2020.
According to court documents, the Lee County Sheriff’s Office and the FBI began investigating Risco after receiving a tip that he had been distributing large amounts of methamphetamine in and around North Fort Myers. During the summer of 2019, a confidential informant working at the direction of law enforcement purchased 100% pure methamphetamine from Risco on four occasions. Further investigation revealed the scope of Risco’s drug dealing activities, which involved selling multiple ounces of methamphetamine and fentanyl weekly in Lee County until his arrest in March 2020.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
New York Men Charged with Mortgage Fraud Offenses Related to Loan for Hartford Apartment BuildingsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JACOB DEUTSCH, 56, of Brooklyn, New York, and ARON DEUTSCH, 60, of Monsey, New York, were arrested today on federal conspiracy, fraud and false statement offenses related to a mortgage fraud scheme involving a loan for two Hartford properties.
As alleged in court documents, Jacob and Aron Deutsch work at B H Property Management, LLC (“BHPM”), a property management company that manages several multifamily housing properties in Hartford. Jacob Deutsch has been responsible for the day-to-day operations of BHPM, and Aron Deutsch has coordinated maintenance and construction activities for the housing properties managed by BHPM. In April 2017, the Deutsches and others, through an entity known as 16 53 Evergreen Avenue LLC (“Evergreen LLC”), purchased two Hartford properties, 16 Evergreen Avenue, a 24-unit housing property, and 53 Evergreen Avenue, a 12-unit housing property, for a total of approximately $1.8 million.
It is alleged that the Deutsches defrauded CBRE Capital Markets, Inc. (“CBRE”), a mortgage origination and servicing company, and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), when applying for, and ultimately acquiring, a mortgage loan for Evergreen LLC to refinance the purchase of the two Hartford properties. The loan application documents contained numerous misrepresentations about 16 Evergreen Avenue’s occupancy rate and net operating income. For instance, a rent roll and income and expense summary submitted by Jacob Deutsch in June 2018 falsely represented that 16 Evergreen Avenue was 100 percent occupied when, in fact, not a single tenant resided there at the time. Based on these misrepresentations, in August 2018, CBRE underwrote a Freddie Mac Small Balance Loan for $2,178,000 secured by 16 Evergreen Avenue and 53 Evergreen Avenue, and then immediately sold that loan to Freddie Mac at closing.
Jacob and Aron Deutsch are each charged by criminal complaint with conspiracy to commit mail and wire fraud, wire fraud, mail fraud, and making false statements. After they appeared today via videoconference before U.S. Magistrate Judge Thomas O. Farrish, Jacob Deutsch was released on a $50,000 bond and Aron Deutsch was released on a $100,000 bond.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Postal Inspection Service and the Federal Housing Finance Agency’s Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Sarah Gruber.