Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 6 April 2021
Berkeley County man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – John Suffare Beavers, II, of Hedgesville, West Virginia, has admitted to his role in a drug distribution enterprise, Acting United States Attorney Randolph J. Bernard announced.
Beavers, 34, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride” and three counts of “Aiding and Abetting Distribution of Heroin and Fentanyl.” Beavers admitted to working with others to sell cocaine hydrochloride, cocaine base, heroin, and fentanyl from June 2019 to October 2020 in Berkeley County and elsewhere.Beavers faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Behavioral Health Provider Pays $273K to Settle Improper Billing AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that TODAY’S YOUTH LLC and its owners, Maurice Stuckey and Joyce Anderson, have entered into a civil settlement agreement with the federal and state governments in which they will pay $273,000 to resolve allegations that they caused overpayments to be paid by the Connecticut Medicaid Program.
Today’s Youth is a healthcare organization that provides in-home family therapy and counseling in the greater Hartford area. The government’s allegations against Today’s Youth, Stuckey and Anderson arise out of improper billing for behavioral health services.
Today’s Youth is enrolled in the Connecticut Medical Assistance Program (“CMAP”), which includes Connecticut’s Medicaid program, as a “Behavioral Health Clinician Group.” The State of Connecticut Department of Social Services (“DSS”) contracted with Today’s Youth to provide behavioral health services to Medicaid beneficiaries. DSS does not allow licensed behavioral health clinicians in independent practice to submit claims for services provided by unlicensed individuals, even if the individuals are working toward licensure and supervised by a licensed individual. The DSS Provider Manual for Licensed Behavioral Health Clinicians in Independent Practice explicitly states, “The department shall not pay for…services provided by anyone other than the provider.”
The government alleges that despite clear guidance from the Medicaid program, Today’s Youth, Stuckey and Anderson routinely submitted claims to Medicaid for behavioral health services as if a licensed behavioral health clinician performed the services when, in fact, an unlicensed provider performed the services. As a result, Medicaid paid Today’s Youth for behavioral health services that the U.S. and Connecticut would not have paid for had they known unlicensed individuals provided the services.
To resolve its liability, Today’s Youth will pay $273,000 to the federal and state governments for conduct occurring between January 1, 2014 and September 1, 2019.
This matter was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Anne F. Thidemann and by Assistant Attorney General Michael E. Cole of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Assistant U.S. Attorney from South Carolina Honored by FBI for Prosecution of Cocaine Drug ConspiracyRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the Columbia Division of the Federal Bureau of Investigation (FBI) has recognized Assistant United States Attorney Benjamin Garner for his work in the prosecution of nearly 100 violent street gang members of a major cocaine and crack cocaine trafficking conspiracy operating throughout South Carolina’s Midlands.
“The work of Assistant United States Attorney Benjamin Garner, as well as the support of Assistant United States Attorney Jane Taylor and Supervisory Legal Administrative Specialist Shana Greenway, on ‘The Movement’ prosecution represents the best of our office,” said Acting U.S. Attorney DeHart. “‘The Movement’ case also highlights the incredible collaborative efforts of local, state, and federal law enforcement agencies to make our communities safer and better places.”
After many drug-related shootings in a confined area led the Sumter Police Department to connect a group of individuals to a gang-style operation in the area known as “The Movement,” federal assistance was sought. Through the collaboration of local, state, and federal law enforcement agencies, over a dozen cocaine suppliers for the drug dealers in the area were apprehended and pled guilty to federal drug charges. The investigation then led to the arrest of more than three dozen individuals and the seizure of almost 20 pounds of cocaine and $9 million in drug money, followed by the prosecution of an additional thirty-eight defendants. In total, federal charges were brought against 91 defendants for drug and firearm offenses with “The Movement” case.
#####
Arlington Man Sentenced to 5 Years in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
An Arlington man whose fraudulent tax filings netted him more than $935,000 in improper refunds has been sentenced to five years in federal prison and ordered to pay $495,368 in restitution to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Glenn Edwards Boggus, 34, pleaded guilty in January 2020 to filing a false claim for refund from the IRS. He was sentenced Friday by U.S. District Judge Karen Gren Scholer.
In plea papers, Mr. Boggus admitted that in January 2017, he filed a fraudulent individual income tax return, Form 1040, that claimed a $1.14 million tax refund for tax year 2016. Along with his fraudulent 1040, he submitted a false wage and tax statement, Form W-2, reporting $5,647,888 in wages and $3,333,116 in withholdings, which he knew to be false. (At his sentencing hearing, prosecutors introduced evidence that the company from which he’d purportedly collected his wages was fake.)
The IRS sent Mr. Boggus a check in the amount of $935,432.56 for his alleged tax refund. In March 2017, Mr. Boggus attempted to deposit the check into an account he opened at Regions Bank.
As part of his plea, Mr. Boggus also admitted that for tax years 2013 through 2015, he executed a similar scheme to defraud the government, submitting false tax returns claiming he had paid certain withholdings and was entitled to tax refunds. He said he knowingly filed his tax returns in which he claimed fraudulent tax refunds from the IRS in the amount of $33,489 for tax year 2013, $323,765 for tax year 2014, and $258,407 for tax year 2015.
IRS - Criminal Investigation investigated the case. Assistant U.S. Attorney L. Rachael Jones prosecuted the case.
Arkansas Businessman Sentenced to Prison for Income Tax EvasionRead the Press Release
An Arkansas man was sentenced today to three years in prison for income tax evasion.
According to court documents, James Brassart of Bentonville filed a 2006 individual income tax return that reported adjusted gross income of $1,502,749 and taxes due to the IRS of $486,438. Brassart failed to pay all of the taxes owed and was assessed penalties and interest. To evade his tax liabilities, Brassart took extensive steps to conceal his income and assets. He used three nominee corporations, Eagle Creek Construction and Development Inc., Mono Pro LLC, and Sierra Madre Contracting LLC, to conduct business and purchase assets.
Moreover, between 2010 and 2016, Brassart filed four false bankruptcy petitions to discharge his tax debt. In those bankruptcies, Brassart made false statements and filed fraudulent documents in which he concealed his ownership interests in the nominee corporations. Through his actions, Brassart caused a total tax loss of approximately $1,360,682 to the IRS.
In addition to the term of imprisonment, U.S. District Judge Timothy L. Brooks ordered Brassart to serve three years of supervised release and to pay approximately of $1,360,682.29 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Robert Kemins of the Tax Division prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Western District of Arkansas (Fayetteville Division) for their substantial assistance.
25 Members of A Violent Gang Charged with Drug Trafficking in Mayagüez, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 29, 2021, a federal grand jury in the District of Puerto Rico returned a six-count indictment charging 25 gang members with conspiracy to possess with intent to distribute controlled substances, and aiding and abetting in the possession/distribution of controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Police Bureau (PRPB) Mayagüez Strike Force investigated the case.
“This indictment and the arrests this morning demonstrate our continued resolve to combat drug trafficking,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We are committed to dismantling and removing the threat posed by these criminal organizations flooding our communities with dangerous narcotics and violence.”
“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Iván J. Arvelo, special agent in charge for HSI San Juan. “HSI thanks our local, state and federal law enforcement partners for their significant cooperation in dismantling this drug trafficking organization.”
The indictment alleges that from in or about the year 2016, to the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, and marihuana, within 1,000 feet of the Franklin D. Roosevelt Public Housing Project (PHP), and other areas in the municipality of Mayagüez, all for financial gain and profit.
As part of the conspiracy, the members of the drug trafficking gang established drug points that moved within different areas inside the public housing project to avoid police detection. Some co-conspirators collected the profits from the drug trafficking sales and traveled within the municipality of Mayagüez and other areas nearby to deliver the proceeds to the leaders of the organization. The defendants had access to different vehicles to transport money, narcotics, and firearms.
At different points during the conspiracy the leaders provided members of the organization with different types of firearms to protect themselves, the narcotics, and their proceeds. The leaders had final approval authority as to disciplinary action to be imposed upon residents of the Franklin D. Roosevelt PHP and the members of the conspiracy to maintain control of the drug trafficking activities in the area. The co-conspirators of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. Nine defendants are facing one count of possession of firearms in furtherance of a drug trafficking crime.
The defendants acted in different roles to further the goals of the conspiracy, to wit leaders, enforcers, runners, sellers, and facilitators. The individuals indicted are:
Luis S. Rivera-Ruiz, a/k/a “Pantera”
Miguel Ángel Santiago-Jiménez, a/k/a “Miguelito”
Kifran A. Casiano-Alayon
Jeffrey E. González-Vargas
Joseph Vélez-Mondessi, a/k/a “El Negro/Joe”
Jordany Ayala-Vega
Francheska Valle-Díaz, a/k/a “Cheska”
Eduardo Rodríguez-Rodríguez, a/k/a “Edward”
Chayanne Torres-Hernández
Dianne Rivera-Rosas
William F. Vélez-Borrero, a/k/a “El Negro”
Emmanuel Alemar-Rosas
José A. Rivera-Soto, a/k/a/ “Che”
Nelson Rosario-Sánchez, a/k/a “El Menor/Nelsito”
Roy Alexander Santiago-Vélez
Isa Denisse Vélez-Cruz
Keishla Marie Colón, a/k/a “Kei”
Erickson Lugo-Méndez, a/k/a “Tripi”
Kevin O. Montalvo-Ruiz, a/k/a “Keva”
Kevin J. Rodríguez-Cruz
Miguel Alfredo Ruiz-Rodríguez
Yadiel Joebell Iglesias-Izquierdo
Athdiel Aponte-Pérez, a/k/a “Bebe”
Carlos G. Arce-Santiago
Isben Jaret Rivera-Cardoza
Assistant U.S. Attorney Pedro R. Casablanca and Special Assistant U.S. Attorney Yanira Colón-García from the Puerto Rico Department of Justice are in charge of the prosecution of the case. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the U.S. Customs and Border Protection collaborated during the arrests.
If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
Monday 5 April 2021
Woman from Zuni Pueblo sentenced to 41 months in federal prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Kirsten Sandy, 38, and an enrolled member of the Pueblo of Zuni, was sentenced in federal court on April 1 to 41 months in prison for assault resulting in serious bodily injury in Indian Country.
Sandy pleaded guilty to the offense on Feb. 5, 2020. In her plea agreement, Sandy admitted to stabbing John Doe on May 1, 2014, in McKinley County, New Mexico, on the Zuni Pueblo. Sandy stabbed John Doe in the chest, causing severe lacerations and damaging the victim’s heart. As a result of the assault, the victim needed immediate open-heart surgery to save his life.
The Zuni Police Department investigated this case. Assistant U.S. Attorneys Nicholas Marshall and Allison Jaros prosecuted the case.
Wake Forest Investment Advisor Sentenced for Wire FraudRead the Press Release
WILMINGTON, N.C. – A Wake Forest, NC man was sentenced today to 135 months imprisonment for wire fraud and ordered to pay $6,040,965.00 in restitution.
According to court documents, Anthony Wayne March, 49 years old, operated the non-profit 501(c)(3) entity Asset Trader, located in Rolesville, NC, between 2012 to 2015. March represented that Asset Trader offered educational services to professionals and taxpayers in the area of exit planning. Asset Trader’s stated educational mission allowed it to obtain classification as a 28 U.S.C. § 501(c)(3) tax-exempt non-profit organization. Asset Trader used its §501(c)(3) tax-exempt status to solicit tax-deductible donations in exchange for charitable gift annuities (“CGAs”) and to recruit referral sources to obtain assets from potential donors. Through Asset Trader, March and his co-conspirators engaged in and executed what is commonly known as a “Ponzi” scheme to defraud investors by inducing them to invest with Asset Trader.
During the course of the scheme, March solicited at least 22 victims to invest over $8,100,000 in charitable gift annuities and other products offered by Asset Trader. March and Asset Trader sold these securities to victims as retirement or exit planning vehicles classified as donations to March’s § 501(c)(3) tax-exempt non-profit organization. March did not utilize any of the victim’s money for charitable purposes; rather, he spent the money on "Ponzi" payments, his own lavish lifestyle, and expenses of the scheme.
March pled guilty today to conspiracy to wire fraud on August 3, 2020.
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 Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter. The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance. Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-383-H.
Two Men Plead Guilty in Murder of Miami PlumberRead the Press Release
Miami, Florida – Two 35-year-old South Florida men have pled guilty in federal district court in Ft. Lauderdale to participating in a pair of robberies that culminated in a carjacking and the murder of a Miami plumber.
According to the Factual Proffers signed by Jamal Lamar Head and Keon Travy Glanton, on July 11, 2018, Head and Glanton worked together to rob a Roto-Rooter plumber of valuable plumbing equipment in Riviera Beach, Florida. Head and Glanton lured the Roto-Rooter plumber to an abandoned residence in Riviera Beach, where Head assaulted him with a firearm. Valuable plumbing equipment was removed from the vehicle.
The Factual Proffers further state that, the following day, July 12, 2018, Head and Glanton planned to rob another plumber, this time at a vacant house in Miami Lakes, Florida. After Head and Glanton called several plumbers, plumber “L.S.H.” agreed to come to the Miami Lakes house to perform plumbing work. When L.S.H. arrived, Head forced L.S.H. into another vehicle at gunpoint, while Glanton drove away in L.S.H.’s plumbing van.
Head began driving L.S.H. away from the scene, and L.S.H. struggled with Head. Head then shot L.S.H. once in the chest and twice in the abdomen and crashed his car into a tree. Head fled the scene and called Glanton, who returned to the area in L.S.H.’s van to pick up Head. Head and Glanton then fled the area together. They later drove to another area of Miami, where they doused L.S.H.’s van in gasoline and lit it on fire.
Paramedics arrived at the murder scene and found L.S.H.’s body in the rear seat of Head’s vehicle. L.S.H. was pronounced dead on the scene. The medical examiner determined that L.S.H.’s cause of death was blood loss from the three gunshot wounds.
The crimes to which Glanton and Head pled guilty include conspiring to commit a Hobbs Act robbery, carjacking resulting in death, and discharging a firearm in furtherance of a crime of violence. Glanton entered his guilty plea on April 2, 2021, and is scheduled to be sentenced by United States District Judge Roy K. Altman, who sits in Ft. Lauderdale, on August 25, 2021, at 10:00 a.m. Head entered his guilty plea last month and is scheduled to be sentenced by Judge Altman on July 20, 2021, at 10:00 a.m.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alfredo Ramirez, Director, Miami Dade Police Department, made the announcement.
ATF Miami and MDPD investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Jessica Kahn Obenauf.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-20063.
###
Texas Man Sentenced to 10 Years for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Fort Worth, Texas, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 29, 2021, by U.S. District Judge Karen E. Schreier.
Michael Allen Youngberg, a/k/a Opie, age 50, was sentenced to 120 months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Youngberg was indicted by a federal grand jury on September 1, 2020. He pled guilty on January 22, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing to on or about September 1, 2020, when Youngberg, along with at least one other person, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture containing methamphetamine. Youngberg facilitated the transportation and exchange of the methamphetamine which was intended for re-distribution within South Dakota and elsewhere. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Youngberg was immediately turned over to the custody of the U.S. Marshals Service.
Salvadoran National Pleads Guilty to Distribution of FentanylRead the Press Release
BOSTON – A Salvadoran national pleaded guilty today in federal court in Worcester to distributing fentanyl.
Nelson Garcia Martinez, a Salvadoran national previously residing in Stockton, Calif., pleaded guilty to one count of distribution of 400 grams or more of fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 22, 2021. Garcia Martinez was charged and arrested in November 2018.
Garcia Martinez was arrested on Nov. 13, 2018, after federal agents conducting surveillance at a rest stop in Sturbridge observed Garcia Martinez meet with two unidentified individuals outside of Garcia Martinez’s tractor trailer. When the two unidentified individuals left the area, law enforcement attempted to stop their vehicle, but they fled. When they did finally pull to the side of the road, the passenger exited the car and discarded a vacuum sealed garment bag and then fled into the surrounding woods, while the driver of the car fled the scene at high speed. The garment bag burst open on the ground, and agents recovered 15 kilograms of a substance that tested positive for fentanyl. Garcia Martinez consented to a search of his tractor trailer, where vacuum sealed bags matching the one discarded on the side of the road were recovered.
Law enforcement were led to Garcia Martinez after discovering a phone number, later determined to be associated with the defendant, that was believed to be used by a drug transporter related to an October 2018 seizure of 32 kilos of fentanyl in Methuen.
The charge of distribution of 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Somerville, Medford, Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Katherine Ferguson of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
Robeson County Man Sentenced to 12 Years for Drug and Firearm PossessionRead the Press Release
RALEIGH, N.C. – A Maxton man was sentenced today to 144 months in prison for possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
On August 3, 2019, the Robeson County Sheriff’s Office responded to a community complaint regarding drug sales at a residence in Rowland, North Carolina. During the investigation, deputies observed Cody Zachary Locklear, 29, run out of the residence and attempt to discard a firearm and a bag containing distributable amounts of cocaine, crack, marijuana, and various narcotic pills. Deputies recovered the firearm and the controlled substances and took Locklear into custody.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Robeson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb 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-89-D.
###
Reading, PA Internet Rapper and Member of Bloods Gang Sentenced to 15 Years for Drug TraffickingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Louis Daniel Morales a/k/a “Trouble,” 29, of Reading, PA, was sentenced to 15 years in prison, five years of supervised release, and ordered to pay a $2,000 fine by United States District Judge Edward G. Smith for distributing large quantities of methamphetamine and other controlled substances in the Reading, PA area in 2019. Morales, a self-identified member of the “Nine Trey Gangsters” sect of the Bloods gang and an internet rap artist known as “Trouble” or “King Troub93,” was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police as part of a conspiracy which was responsible for trafficking methamphetamine, heroin, and cocaine in and around Berks County.
In October 2020, the defendant pleaded guilty to three felony counts of manufacture, possession and distribution of a controlled substance, stemming from the sale of more than 800 grams of methamphetamine and an additional quantity of heroin to an undercover Pennsylvania State Police Trooper on three separate occasions between May and June 2019. For approximately three months, the FBI and State Police utilized a federal wiretap to intercept conversations between the defendant, drug suppliers, and customers, revealing that Morales had access to a seemingly endless supply of methamphetamine through several sources. The recorded conversations further detailed that the defendant worked alongside his mother, who trafficked in marijuana, and other individuals with ties to a drug cartel in Mexico. Morales and his codefendants were arrested in September 2019, along with several other defendants charged elsewhere who were also under investigation for similar conduct involving methamphetamine distribution in Reading.
“Morales and his co-conspirators pumped huge quantities of deadly, addictive drugs into Reading and its surrounding communities,” said Acting U.S. Attorney Williams. “Drug trafficking destroys lives and neighborhoods. Our Office is determined to protect the communities impacted by drug trafficking by investigating and convicting the criminals responsible for it.”
“Drug traffickers know how much harm their product does to people’s lives and communities. They simply don’t care,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Putting Louis Morales out of business and behind bars is a win for folks in the Reading area. Bottom line: the FBI and our partners will never cede our cities to drug pushers and gang members.”
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Raleigh County Man Sentenced for Conspiracy to Obstruct JusticeRead the Press Release
Defendant sentenced for conspiracy to fake his wife’s death at the New River Gorge
CHARLESTON, W.Va. – A Raleigh County man received a sentence of eight months of confinement for his role in a conspiracy to obstruct justice. Rodney Wheeler, 48, of Beckley, pleaded guilty to conspiracy to obstruct justice on January 5, 2021. He was ordered to serve two months of incarceration in federal prison, to be followed by six months of home confinement and then three years of supervised release.
According to court documents and statements made in court, Rodney and Julie Wheeler conspired to fake Julie’s death at the New River Gorge to avoid her federal court sentencing for health care fraud. Rodney Wheeler placed a 911 call on May 31, 2020, falsely claiming that Julie Wheeler had fallen from the Grandview Overlook in the New River Gorge in West Virginia. The overlook is a steep cliff with a series of ledges leading down to the New River. This 911 call prompted a massive search and rescue operation with hundreds of volunteers, law enforcement, and professional search and rescue personnel looking for Julie Wheeler at the base of the overlook and the surrounding area. Helicopters provided by the West Virginia Air National Guard and the West Virginia State Police searched from the air, repelling experts looked in the cliffs, and rescue dogs with their handlers scoured the ground looking for any trace of Julie Wheeler. In fact, Julie Wheeler was hiding in her own home and planning to go into permanent hiding with Rodney Wheeler.
Throughout the massive search effort, Rodney Wheeler repeatedly gave false statements to state and federal investigators intentionally designed to mislead them about his wife’s whereabouts. Rodney Wheeler also made a false Facebook post on June 1, 2020 stating “[T]he accident at Grandview yesterday involved my wife . . . they have not found her yet but I am holding out hope that she will be found and she is ok . . . I am heartbroken and lost right now but I have to have faith . . . please give us time to worth through this and please keep us in your thoughts and prayers.” The purpose Rodney Wheeler’s false statements was to continue the Wheelers’ ruse that she had fallen and was missing.
After two days of searching, the West Virginia State Police located Julie Wheeler hiding in a closet inside her own home. Once removed from her closet by the State Troopers, Rodney and Julie Wheeler were both taken into custody. In statements to state and federal investigators, Rodney and Julie Wheeler both admitted they conspired to fake her disappearance to avoid Julie Wheeler’s pending federal sentencing in a health care fraud case.
“A highly-coordinated effort by the agencies named herein led to the arrest and prosecution of Rodney Wheeler,” said Acting United States Attorney Lisa G. Johnston. “I applaud the tremendous work of the National Park Service, the West Virginia State Police, the United States Probation Office, the FBI, the Office of Veterans Affairs (VA), the VA-Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, the West Virginia Air National Guard and the Raleigh County Prosecuting Attorney’s Office."
Rodney and Julie Wheeler both were charged with numerous felony and misdemeanor offenses in Raleigh County Circuit and Magistrate Courts relating to the false reporting of an emergency.
Julie Wheeler was sentenced in February 2021 to a total of 54 months in federal prison for health care fraud and her own role in the obstruction conspiracy. Julie Wheeler’s underlying health care fraud conviction related to her overbilling a VA program for spina bifida care. She was also ordered to pay restitution in the amount of $289,055.07 for the overbilling scheme.
Senior United States District Judge John T. Copenhaver, Jr. presided over both criminal matters. Assistant United States Attorney Erik S. Goes handled the prosecutions.
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. 5:20-cr-00145.
Follow us on Twitter: SDWVNews
###
Pittsburgh Man Allowed His House to be Used as a Drug PremisesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of managing and controlling a drug-involved premises, Acting United States Attorney Stephen R. Kaufman announced today.
Charles Curry, age 31, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that in November 2019, Curry managed and controlled a premises as an occupant, which he made available for the use of manufacturing, storing and disturbing controlled substances, namely, acetyl fentanyl and heroin, both Schedule I controlled substances, and cocaine, cocaine base and fentanyl, all Schedule II controlled substances.
Judge Horan scheduled sentencing for July 27, 2021 at 11:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Brian M. Czarnecki are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Office, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Curry.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pembroke Woman Sentenced to 129 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Nadine Jacques, 46, of Pembroke, was sentenced to 129 months in federal prison for methamphetamine trafficking on Friday, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February and March of 2020, a cooperating individual made four controlled purchases of methamphetamine from Jacques in Suncook, Concord, and Dover, New Hampshire.
Agents conducting surveillance at the final purchase on March 4, 2020, witnessed Jacques obtaining the drugs from her source, Tyler Cady, in Dover. Agents arrested Jacques and Cady and recovered over 111 grams of methamphetamine.
Jacques previously pleaded guilty on August 7, 2020. Cady, 30, of Concord, pleaded guilty on February 26, 2021. He is scheduled to be sentenced on June 4, 2021.
“Methamphetamine is a very dangerous drug that continues to pose a significant threat to the citizens of New Hampshire,” said Acting U.S. Attorney Farley. “To protect the community, we are working closely with our law enforcement partners to identify and prosecute the drug traffickers who are peddling methamphetamine. As Ms. Jacques has learned, methamphetamine dealers in the Granite State will face substantial consequences for their unlawful actions.”
This matter was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
###
Oklahoma City Man and Woman to Each Serve 15 Years in Federal Prison for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Last week, MICHAEL KERRY KENDRICK, aka "Milkman," 49, of Oklahoma City, was sentenced to serve 15 years in federal prison for conspiring to commit child sex trafficking, announced Acting U.S. Attorney Robert J. Troester. CHRISTA LYNN GLASS, aka "Lady Milk," aka "Diamond," 40, of Oklahoma City, has already been sentenced to serve 15 years in federal prison for conspiring with Kendrick to commit child sex trafficking in a related case.
On February 20, 2020, both Kendrick and Glass were charged by federal complaint with child sex trafficking. On June 2, 2020, Kendrick was additionally charged by Indictment by a federal grand jury with conspiring to commit child sex trafficking and the substantive offense of child sex trafficking.
On June 17, 2020, Glass entered a guilty plea to one count of conspiring to commit child sex trafficking between September 2019 and January 28, 2020, in Oklahoma City. On July 8, 2020, Kendrick entered a guilty plea to Count 1 of the Indictment—conspiring to commit child sex trafficking during the same time period.
On March 1, 2021, U.S. District Judge Jodi W. Dishman sentenced Glass to serve 15 years in federal prison, followed by five years of supervised release. On April 2, 2021, Judge Dishman sentenced Kendrick to serve 15 years in federal prison, followed by five years of supervised release. Judge Dishman also imposed $5,100 in special assessments for each defendant and stated that restitution for the victim will be determined at a subsequent hearing. At each sentencing, Judge Dishman noted the difficulty of finding words to convey how serious and egregious Kendrick and Glass’s crimes were.
According to court documents and public record, Kendrick and Glass offered to teach a 16-year-old child about the commercial sex business. They posted advertisements on the internet using photos they took of the child and arranged for commercial sex appointments with buyers who responded to the advertisements. Kendrick and Glass took all the proceeds of the appointments between the child and the buyers. Additionally, they provided the child with narcotics.
Upon their release from prison, both Kendrick and Glass will be required to register as sex offenders.
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division and the Oklahoma Bureau of Narcotics. Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to public filings for more information.
North Texas Man Pleads Guilty to His Involvement in Multi-Million Dollar International Fraud SchemeRead the Press Release
SHERMAN, Texas – A Carrollton, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Moses Moreira, 42, pleaded guilty to conspiracy to commit wire fraud and wire fraud on April 1, 2021 before U.S. Magistrate Judge Christine A. Nowak.
“The identification and disruption of white collar fraud schemes, and the vigorous prosecution of the criminals responsible for them, is a top priority for the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “It is our mission to make internet communication and commerce as safe as possible and rooting out online fraud schemes—such as the one here—are an integral part of that process.”
According to court documents, Moreira worked with co-conspirators to devise and execute an online fraud scheme, which involved, among other things, fabricating false identities and stories to entice victims and ultimately lure money from them. Moreira and his co-conspirators used the fraudulently obtained funds for personal purchases and converted portions of these funds for use in international shipping. According to the indictment, at least 80 victims sent money to Moreira and his co-conspirators, with at least 60 victims sending money directly to Moreira or accounts controlled by Moreira. These victims have lost a combined total of approximately $4 million. Moreira was indicted on Feb. 10, 2021 and charged with federal violations.
Under federal statutes, Moreira 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.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
###
New York Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
CONCORD – William Soto, 29, of New York, pleaded guilty in federal court on Friday to aiding and abetting the possession of controlled substances with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 25, 2020, a New Hampshire state trooper pulled over a vehicle operated by co-defendant Lorenzo Vasquez for traffic violations. The trooper identified Soto by his driver’s license. A drug detection dog later indicated that there were drugs in the vehicle. After obtaining a search warrant, officers located over 202 grams of cocaine base, over 90 grams of heroin, and a digital scale within the vehicle.
Vasquez previously pleaded guilty on March 12, 2021 and is scheduled to be sentenced on June 18, 2021. Soto is scheduled to be sentenced on July 12, 2021.
“Interstate drug traffickers are endangering the lives of New Hampshire’s citizens,” said Acting U.S. Attorney Farley. “In order to protect the community, we will not hesitate to bring federal charges against the criminals who come to the Granite State to sell illegal drugs. I am grateful to the State Police for helping us to put this drug dealer out of business.”
This matter was investigated by the New Hampshire State Police Mobile Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
###
New Jersey Man Admits Operating Illegal Bitcoin ExchangeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted operating an illegal bitcoin exchange, Acting U.S. Attorney Rachael A. Honig announced.
William Green, 53, of Wall, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count 1 of an indictment charging him with operating an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
From August 2017 through February 2019, Green operated a website called “Destination Bitcoin.” Through the website and various referrals, Green received money from members of the public through cash, wire transfers into bank accounts controlled by Green, and online payment processors. Green then converted the funds to bitcoin and transferred the bitcoin to bitcoin wallet addresses provided by the customers. Green charged the customers a fee for this service.
Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether the business is licensed as a money transmitting business in any state) with the Secretary of the Treasury. Green admitted today that he knew he was required to register his business with the Secretary of the Treasury and that he failed to do so.
The unlicensed money transmitting charge to which Green pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 10, 2021.
Acting U.S. Attorney Honig credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Matthew Feldman Nikic of the U.S. Attorney’s Cybercrime Unit in Newark.
Moorhead Man Sentenced to Two Years in Federal Prison for Civil Disorder during the May 30th, 2020, Fargo Violent ProtestsRead the Press Release
Fargo – Acting United States Attorney Nick Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Jonathan Montanezage, age 31 of Moorhead, MN, to serve two years in federal prison with 3 years of supervised release to follow for the charge of Civil Disorder, 18 USC 231 (a)(3), during violent protests in Fargo, ND.
On May 30, 2020, what started as peaceful protest in Fargo turned violent when some individuals, including Montanezage, jumped on top of an occupied Fargo Police Department vehicle and slammed his fists on the police vehicle causing extensive damage. Montanezage was also provoked other protesters to become violent and destructive. That criminal behavior caused many serious injuries to law enforcement officers and caused thousands of dollars in damages to businesses in downtown Fargo.
"The FBI’s mission is to uphold the Constitution, which includes freedom of speech and the right to assemble. Jonathan Montanez took personal advantage of what was supposed to be a peaceful protest that day, to engage in criminal activity," said FBI Minneapolis Special Agent in Charge, Michael Paul. "The FBI will continue to work closely with our state, local and federal law enforcement partners and prosecutors to protect our citizens' right to engage in lawful protest from individuals seeking to engage in violence and criminal activity."
This case was investigated by the Federal Bureau of Investigation and the Fargo Police Department, and was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
######
Monongalia County man sentenced for firearms chargeRead the Press Release
LARKSBURG, WEST VIRGINIA – Marquise Hicks, of Morgantown, West Virginia, was sentenced today to 60 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Hicks, 27, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Offense” in November 2020. Hicks admitted to having a 9mm pistol while in possession of marijuana in August 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Monongalia County Probation Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mission Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on March 29, 2021, by U.S. Magistrate Judge Mark A. Moreno.
Nicholas Miles Ten Fingers, age 27, was sentenced to 12 months in federal prison, one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Ten Fingers was indicted by a federal grand jury on September 9, 2020. He pled guilty on January 28, 2021.
The conviction stemmed from an incident that occurred on July 25, 2019, in Todd County, South Dakota. On that date, Ten Fingers cut a man with a knife.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Ten Fingers was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Man and Woman Charged in Violent Twin Cities Carjacking SpreeRead the Press Release
Acting United States Attorney W. Anders Folk today announced a federal indictment charging JEREMIAH LEE IRONROPE, 24, and KRISANNE MARIE BENJAMIN, 25, with multiple carjackings occurring across the Twin Cities. IRONROPE was also charged with using, carrying and brandishing a firearm, during and in relation to a crime of violence, during one of the carjackings. IRONROPE made his initial appearance today before Magistrate Judge Becky Thorson in U.S. District Court. BENJAMIN made her initial appearances in U.S. District Court on March 25, 2021.
According to the allegations in the indictment, on July 26, 2020, IRONROPE and BENJAMIN, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2008 Lexus ES350. On August 7, 2020, IRONROPE and BENJAMIN, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2018 Chevrolet Tahoe. On August 28, 2020, IRONROPE and BENJAMIN, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2017 Audi A4. On December 20, 2020, IRONROPE, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2015 GMC Terrain. During the August 28 carjacking incident, IRONROPE brandished a firearm, namely a Remington 870 12-gauge shotgun, with a sawed-off barrel.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the St. Paul Police Department, the Maple Grove Police Department, the Richfield Police Department, the Edina Police Department, the Roseville Police Department, and the Minnesota State Patrol.
This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
JEREMIAH LEE IRONROPE, 24
Minneapolis, Minn.
Charges:
- Carjacking, 4 counts
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
KRISANNE MARIE BENJAMIN, 25
Minneapolis, Minn.
Charges:
- Carjacking, 3 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minneapolis Felon Charged with Possession of Multiple FirearmsRead the Press Release
Acting United States Attorney W. Anders Folk today announced federal charges against BRANDON MARCEL THOMAS, 33, for illegal possession of firearms. THOMAS made his initial appearance on April 1, 2021, before Magistrate Judge Becky Thorson in U.S. District Court. Earlier today, Magistrate Judge Thorson ordered THOMAS to remain in custody pending further proceedings.
According to the allegations in the criminal complaint, in March 2021, Minneapolis Police officers received information that THOMAS was engaged in drug and firearms trafficking. Officers executed a search warrant at a storage locker in Minneapolis that had been leased by THOMAS since approximately October 2020. Officers recovered from the storage locker a suitcase with a luggage tag in THOMAS’s name showing travel on February 28, 2021, from Las Vegas to Minneapolis. Officers also recovered approximately 1,050 Oxycodone pills and seven firearms, including a rifle and six pistols.
Because THOMAS has prior felony convictions, including a 2009 carjacking conviction in the District of Minnesota, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
BRANDON MARCEL THOMAS, 33
Minneapolis, Minn.
Charges:
- Felon in possession of firearms, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of the Isleta Pueblo pleads guilty to federal assault chargeRead the Press Release
ALBUQUERQUE, N.M. – Stephen Johnson, 35, of the Pueblo of Isleta, pleaded guilty in federal court today to domestic assault by a habitual offender in Indian Country.
A grand jury indicted Johnson on Sept. 10, 2020. In his plea agreement, Johnson admitted to committing the offense on the Pueblo of Isleta on July 1, 2019. Johnson assaulted Jane Doe 2, his girlfriend at the time, after he had returned home from drinking. While Jane Doe 2 was packing her belongings to leave, Johnson threw a child’s chair at her, hitting her and bouncing off her and hitting Jane Doe 1 on the head, causing a small laceration above Jane Doe 1’s eyebrow.
Johnson is currently in custody pending sentencing. He faces up to five years in prison.
The Isleta Police Department investigated this case. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Maryland Man Facing Federal Charge for Fraudulently Obtaining a $1.5 Million Paycheck Protection Program Loan and Attempting to Obtain at Least Two Additional Fraudulent Covid-19 Relief LoansRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Rudolph Brooks, Jr., age 45, of Cheltenham, Maryland, on the federal charge of wire fraud. In addition, law enforcement obtained warrants authorizing the seizure of more than $2.2 million held in various bank accounts, as well as a 2018 Tesla Model 3. The criminal complaint was filed on March 29, 2021 and was unsealed following Brooks’s arrest on April 2, 2021.
The criminal complaint and seizures were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG); Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
As detailed in the affidavit filed in support of the criminal complaint, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic consequences of COVID-19. The CARES Act authorized up to $659 billion in forgivable loans to small businesses for employee retention and certain business expenses through the Paycheck Protection Program (“PPP”). The business must use PPP loan proceeds on payroll costs, mortgage interest, rent, and utilities. Initially, the program allowed the principal to be forgiven if the business spent the loan proceeds on qualifying expenses within eight weeks of loan issuance and used at least 75 percent of the loan for payroll. On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 went into effect. This law extended the period from eight weeks to 24 weeks that the loan proceeds had to be spent and reduced the requirement that the loan proceeds be spent on payroll from 75 percent to 60 percent. An Economic Injury Disaster Loan (“EIDL”) is an SBA-administered loan designed to provide assistance to small businesses that suffer substantial economic injury as a result of a declared disaster. An EIDL helps businesses meet necessary financial obligations that could have been met had the disaster not occurred. It provides relief from economic injury that the disaster caused and permits businesses to maintain a reasonable working capital position during the period that the disaster affected. In March 2020, the SBA issued an EIDL declaration making EIDL loans available to small businesses to help alleviate economic injury caused by COVID-19.
Brooks is the owner of Cars Direct by Gavawn HWD Bob’s Motors (Cars Direct), the stated purpose of which was to purchase and sell cars. Cars Direct was incorporated with the Maryland State Department of Assessments and Taxation (SDAT) on October 29, 2010. Cars Direct was forfeited on October 1, 2012 and subsequently revived on May 28, 2020. Brooks is listed as the resident agent with SDAT.
The affidavit alleges that, on May 9, 2020, Brooks applied for a PPP loan on behalf of Cars Direct in the amount of $1,556,589. In support of the Cars Direct PPP loan application, Brooks allegedly submitted fraudulent tax forms which allegedly reported $724,469 in payments via Forms 1099-MISC and $7,471,630 in total unemployment payments to employees from Cars Direct. However, as detailed in the affidavit, IRS records do not reflect any tax filings made by Cars Direct for any tax period, indicating that Cars Direct has not hired employees or paid unemployment taxes. Additionally, the Maryland Department of Labor has no record of Cars Direct paying wages or of Brooks receiving wages.
On April 7, 2020, Brooks allegedly submitted an EIDL loan application on behalf of Cars Direct that contradicted the information and supporting documentation Brooks submitted for Cars Directs’ PPP loan application. The EIDL application on behalf of Cars Direct allegedly stated that the company’s gross revenue was $148,000 and cost of goods sold was $82,293 in the one year period prior to COVID-19 being declared a disaster, which is inconsistent with a business that can support average monthly payroll costs of $622,635 or annual payments of $7,471,630 as Brooks reported on the PPP loan application and supporting fraudulent tax documents.
On May 9, 2020, Cars Directs’ PPP loan was approved and $1,556,589 was subsequently deposited into a bank account which has Brooks listed as the sole signer on the account. Prior to the deposit of the PPP loan funds, payroll payments or payroll taxes were absent from this account. According to the affidavit, Brooks allegedly opened another bank account in the name of Payroll by BJM, into which he transferred $500,000 of PPP loan funds. Brooks also then registered Payroll by BJM with SDAT, listing himself as resident agent. Although the name Payroll by BJM creates the appearance that the account is associated with a payroll company, there has been no payroll or payroll-related expenses paid from this account. Brooks also opened additional accounts in the name of Cars Direct, into which he transferred PPP loan funds.
After the deposit of PPP loan funds, Brooks initiated numerous transfers of PPP loan funds from the Cars Direct accounts to his personal bank accounts. Records revealed that Brooks used the PPP loan funds for personal expenditures including credit card bills, purchases at restaurants, retail stores, grocery stores, and automotive auctioneers, and mortgage payments for Brooks Cheltenham residence.
Beginning May 22, 2020, Brooks used PPP loan funds from the Cars Direct account and his own personal account to purchase of 39 used automobiles (including a 2017 Mercedes Benz S Class, two 2017 Infinity Q50s, a 2015 Cadillac Escalade, a 2005 Bentley Continental, a 2018 Tesla Model 3, a 2014 GMC Yukon XL, and several older model luxury vehicles. Under the terms of the PPP loan program, the purchase of these vehicles is not an appropriate use of loan funds.
According to the affidavit, on July 30, 2020, Brooks initiated a wire transfer from his personal account to Tesla Motors for $60,407, which was used to purchase a 2018 Tesla Model 3. “Rudolph Brooks” was listed as the customer for this vehicle, and a District of Columbia driver’s license was on file for a close relative of Brooks. Records from the State of Maryland reflect that the Tesla Model 3 was registered in Brooks’s name at Brooks’s Cheltenham residence.
Finally, on August 13, 2020, Brooks initiated two wire transfers from one of the Cars Direct accounts for $144,343 and $2165 to a title company regarding a property in Baltimore, Maryland. At the time of the wire transfers, $133,669.54 in funds from the Cars Direct PPP loan remained in the Cars Direct account. Real estate deeds filed with the State of Maryland show that the Baltimore property was purchased by Madaro, LLC (Madaro) for $148,500. Madaro was registered with the District of Columbia on August 8, 2019 and Brooks was listed as the resident agent of the company. Brooks executed an Auction Contract of Sale on June 18, 2020 to purchase the Baltimore property.
In addition, seizure warrants authorized the seizure of up to $2,296,136.86 from eleven bank accounts and the 2018 Tesla Model 3 described above. The affidavit in support of the seizure warrants alleges that these funds and vehicle constitute or are derived from the proceeds traceable to false statements made on bank loan applications.
If convicted, Brooks faces a maximum sentence of 20 years in federal prison for wire fraud followed by three years of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FDIC OIG, the IRS-CI, the FBI, and the SBA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney and Jessica Collins, who are prosecuting the case.
# # #
Manchester Woman Pleads Guilty to Possession of Ammunition by a Convicted FelonRead the Press Release
CONCORD - Robin Stephan, 43, of Manchester, pleaded guilty in federal court to possession of ammunition by a convicted felon, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 21, 2019, the Manchester Police Department responded to a call of a theft from a motor vehicle. After receiving a description of the suspect, police officers stopped and spoke with Stephan who denied involvement in the theft. As the officers spoke with Stephan, she rummaged through her backpack. The officers observed ammunition and a magazine within Stephan’s backpack. As a convicted felon, Stephan is prohibited from possessing ammunition under federal law.
Stephan is scheduled to be sentenced on June 17, 2021.
“In order to keep our community safe, it is important to keep guns and ammunition out of the hands of criminals,” said Acting U.S. Attorney Farley. “I am grateful to the officers of the Manchester Police Department whose good work resulted in this federal prosecution.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
###
Knoxville Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Benjamin Alan Carpenter, also known as “Abu Hamza,” 31, was arrested on March 24, 2021, in Knoxville following the return of a federal grand jury indictment charging him with attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. A detention hearing was held today, April 5, 2021, before U.S. Magistrate Judge Debra C. Poplin. Carpenter remains detained pending the outcome of the detention hearing. Carpenter’s trial is set for June 1, 2021, before United States District Judge Katherine A. Crytzer.
Carpenter is a United States citizen who resides in Knoxville. According to documents filed with the Court, Carpenter is the leader of Ahlut-Tawhid Publications, an international organization dedicated to the translation and publication of pro-ISIS and official ISIS media in English. Carpenter was also in contact with an individual who he believed was associated with ISIS; however, unbeknownst to Carpenter, the individual was a covert FBI employee. Carpenter provided English-language translations of ISIS media content to that individual for use by ISIS.
The indictment and arrest were announced by John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice, Francis M. Hamilton III, Acting United States Attorney for the Eastern District of Tennessee; and Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation. The case was investigated by the Knoxville Joint Terrorism Task Force, which is comprised of federal, state, and local law enforcement agencies, including the Tennessee Bureau of Investigation, Tennessee Highway Patrol, Clinton Police Department, and Knoxville Police Department.
If convicted, Carpenter faces up to 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge. In all cases, defendants are presumed innocent until and unless proven guilty; indictments merely contain allegations supported by probable cause.
The government is represented by Assistant U.S. Attorney Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorneys George C. Kraehe and Felice John Viti of the National Security Division’s Counterterrorism Section.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
###
Jury convicts former chairwoman of Montana Native Women’s Coalition of stealing federal grant fundsRead the Press Release
BILLINGS — A federal jury on April 2 convicted the former chairwoman of the Montana Native Women’s Coalition of crimes related to unapproved spending of federal grant funds, including travel to Las Vegas, Nevada, Acting U.S. Attorney Leif Johnson said.
The jury found Meredith McConnell, 51, of Lame Deer, guilty of theft from a program receiving federal funding, wire fraud and false claims as charged in a superseding indictment. The five-day jury trial began on March 29. McConnell faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided and continued McConnell’s release pending further proceedings. A sentencing date is pending.
“Despite receiving training on financial oversight, conflicts of interest and ethics, Meredith McConnell stole grant funds intended to help Native American victims of violence and used the money for unauthorized travel and her own benefit,” Acting U.S. Attorney Johnson said. “Our office will hold accountable and prosecute those who misuse grant funds. I want to thank Assistant U.S. Attorneys Ryan Weldon and Bryan Dake and the Department of Justice Office of the Inspector General for investigating and prosecuting this case.”
“Instead of using grant money to help Native American victims of domestic and sexual violence, McConnell stole those grant funds for her own benefit including to pay for lavish travel and gifts. The Department of Justice Office of the Inspector General will investigate and bring to justice anyone who tries to steal Department of Justice grant funds,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
In court documents and in evidence presented at trial, the government alleged that beginning in about August 2017, McConnell, along with others, misappropriated federal grant funds to hand out cash payments to others, to buy purses and earrings as door prizes, to meet in Las Vegas, a trip that cost $31,744, and to receive double payments for meals. Prosecutors alleged that during a four-month period, McConnell was responsible in the misappropriation of more than 10 percent of grant funds designed to help address violence on Indian reservations in Montana.
The government further alleged the thefts occurred four months after board officials, including McConnell, participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director pleaded guilty to fraud in March 2017 for stealing from the organization.
The Coalition is a Lame Deer-based organization that helps Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services. OVW awarded the Coalition $318,008 from October 1, 2017 to September 30, 2018.
Co-defendants Sheryl Lynn Lawrence, of Colstrip, who was the Coalition’s executive director, and Barbara Mary Daychief, of Browning, who was a Coalition board member, both pleaded guilty to theft of federal funds and are pending sentencing.
Assistant U.S. Attorneys Ryan Weldon and Bryan Dake are prosecuting the case, which was investigated by Department of Justice Office of the Inspector General.
XXX
Individual Pleads Guilty in Brooklyn Federal Court to Extorting Cryptocurrency from Startup CompanyRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Hlady pled guilty before United States Chief District Court Judge Margo K. Brodie to conspiring to extort a startup company for millions of dollars in the cryptocurrency Ether (ETH). When sentenced, Hlady faces up to 20 years in prison, as well as a fine.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“Hlady and his co-conspirator used strong-arm tactics to shake down a startup company of cryptocurrency and will now face punishment just like anyone else who extorts a business,” stated Acting United States Attorney Lesko. “This Office and its law enforcement partners are committed to protecting businesses from extortion in whatever manner it is perpetrated.” Mr. Lesko thanked the Federal Bureau of Investigation, New York Field Office, for their outstanding work on the case.
As set forth in court filings and at today’s proceeding, the victim company (“Company”) was a startup mobile-based business that issued cryptocurrency tokens such as Ether as loyalty rewards for generating user traffic to its clients’ products. To raise capital, the Company planned to conduct an Initial Coin Offering (“ICO”) in November 2017. In connection with the ICO, Hlady told the Company’s executives that he had been a part of the Irish Republican Army, the National Security Agency, the Central Intelligence Agency and the Federal Bureau of Investigation; that he had been shot at and had killed people; and that he had “taken down” a head of state. In March 2018, Hlady and his co-conspirator Steven Nerayoff issued threats to Company executives that included destruction of the Company if it did not agree to demands for additional funds and Company tokens. On March 28, 2018, Hlady sent a text message to a Company executive stating, in part, “I promise I will destroy your community” if the Company did not comply with the demands. As a result of this threat, the Company transferred 10,000 ETH to Nerayoff.
Nerayoff has entered a plea of not guilty to extortion charges and is awaiting trial.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Andrey Spektor are in charge of the prosecution.
The Defendant:
MICHAEL HLADY (also known as “Michael Peters”)
Age: 48
East Greenwich, Rhode IslandE.D.N.Y. Docket No. 20-CR-8 (MKB)
Huron Man Charged with Failure to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Huron, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Patrick Red Legs, age 27, was indicted on March 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years, and up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between May 31, 2020, and September 16, 2020, Red Legs, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration as required by law.
The charge is merely an accusation and Red Legs is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Red Legs was remanded to the custody of the U.S. Marshals Service pending trial. A trial date of June 8, 2021, has been set.
Harrisburg Man Sentenced to 144 Months’ Imprisonment on Firearms and Witness Tampering OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Richard Earl Davis, age 28, of Harrisburg, Pennsylvania, was sentenced on April 1, 2021, to 144 months' imprisonment by U.S. District Court Judge Jennifer Wilson, for aiding and abetting straw purchase of firearms, witness tampering, and discharge of a firearm in furtherance of drug trafficking.
According to Acting U.S. Attorney Bruce D. Brandler, Davis was involved in a conspiracy in which an individual would purchase firearms that were ultimately sold to persons prohibited from possessing them, to include felons and drug dealers. After his arrest, Davis contacted a witness and told her how to testify at his upcoming bail hearing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys James Clancy and Scott Ford prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
# # #
Greenwood, Indiana, Man Sentenced to 30 Years in PrisonRead the Press Release
FORT WAYNE—Dewayne Lewis, age 46, of Greenwood and Fort Wayne, Indiana, was sentenced by United States District Judge Theresa L. Springmann after being found guilty at a bench trial for possessing more than five kilograms of cocaine with the intent to distribute, announced Acting U.S. Attorney Gary T. Bell. This case was prosecuted in the Fort Wayne Division of the Northern District of Indiana, and the defendant was sentenced in Hammond, Indiana.
Lewis was sentenced to 360 months in prison, followed by 5 years of supervised release.
According to documents in this case, Lewis was distributing large quantities of cocaine and marijuana for a drug trafficking organization operating in northeast Indiana, who obtained their drug supply from a Mexican cartel. Utilizing tractor trailers, the organization transported hundreds of kilograms of cocaine and marijuana from the border area in McAllen, Texas, and offloaded the drug shipments in a warehouse in Angola, Indiana. Lewis and others then distributed the drugs in multi-kilogram amounts to a network of dealers in Indiana, Ohio, and Michigan. After a series of drug raids in northeastern Indiana, northwestern Ohio, and southern Texas in January of 2015, Lewis assisted the organization’s leader with this leader’s temporary escape to Mexico, and Lewis took over this leader’s role in collecting substantial drug proceeds and coordinating their ongoing distribution efforts. This leader was arrested in March of 2015, and he and others were prosecuted in separate cases.
On February 1, 2015, Lewis obtained approximately 20 kilograms of cocaine and over one million dollars in cash from a hidden area in a stash location in Butler, Indiana. Lewis continued collecting money from many of the organization’s major drug customers in preparation for sending money shipments back to Mexico. Law enforcement officers located Lewis at a motel in Greenwood, Indiana, on February 3, 2015, and officers obtained a search warrant for this motel room. Upon serving the search warrant, officers located Lewis in the room with approximately 20 kilograms of cocaine and a total of approximately $2.089 million in cash. The fingerprints of Lewis were recovered from some of the money packaging, and Lewis confessed to his involvement in the drug distribution operation.
“Collaboration between the FBI’s Safe Streets Gang Task Force and its law enforcement partners - the Indiana State Police, Fort Wayne Police Department and the Allen County Police Department - was key to removing not only this violent individual from our community, but the destructive poison he was moving with the intent to distribute in our neighborhoods,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The dedicated work of all involved has ensured our state is a safer place for all to live, work, and visit.”
Great assistance was also provided by the McAllen, Texas, and Toledo, Ohio, offices of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service in both the Northern and Southern Districts of Indiana; along with the Auburn Police Department, the Greenwood Police Department, the Kendallville Police Department, the Johnson County Sheriff’s Department, the Indiana Multi-Agency Group Enforcement (IMAGE) representing law enforcement in DeKalb, LaGrange, Noble and Steuben Counties, and the Northeast Indiana SWAT.
This case was investigated by the Federal Bureau of Investigation; the FBI Fort Wayne Safe Streets Task Force; the Indiana State Police; the Allen County Sheriff’s Department; the Fort Wayne Police Department; the IMAGE Drug Task Force; the Auburn Police Department; the Kendallville Police Department; the Greenwood, Indiana, Police Department; the Johnson County, Indiana, Sheriff’s Department; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Johnson County Prosecuting Attorney’s Office; and the DeKalb County Prosecuting Attorney’s Office. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey Speith.
Former Maryland Motor Vehicle Employee Facing Federal Indictment for Illegal Production of Fraudulent Driver’s Licenses, Aggravated Identity Theft, and BriberyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Marion Rose Payne, age 54, of Harwood, Maryland, on the federal charges of conspiracy to produce and transfer identification documents produced without lawful authority, the production and transfer of identification documents produced without lawful authority, aggravated identity theft, and bribery concerning programs receiving federal funds. The indictment was returned on March 31, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to the indictment, from July 2015 to March 2016, Payne conspired with Antonio Portillo, age 35, of Manassas, Virginia to produce and transfer Maryland driver’s licenses while she was employed with the Maryland Motor Vehicle Administration (MVA). Payne allegedly agreed to illegally produce, transfer, and sell Maryland driver’s licenses to unlawful applicants provided by Portillo. According to the indictment, at Portillo’s direction, applicants were directed to Payne’s workstation at the MVA Largo Branch to obtain illegally produced and fraudulent driver’s licenses. Payne allegedly received payment for each fraudulently issued driver’s license. Payne is no longer employed by the MVA.
As detailed in the indictment and other court documents, prospective applicants paid Portillo thousands of dollars for each fraudulently issued driver’s license and additional funds for making the arrangements to obtain the illegal license. Payne received names, addresses, and other information that applicants wished to appear on their Maryland driver’s license. Portillo allegedly provided the information to Payne along with other fraudulent documents necessary to receive a driver’s license, including proof of tax payment for a two-year period, proof of Maryland residence, and an identification document. Portillo also allegedly gave Payne, or caused Payne to be given, fraudulent documents purporting to show the applicants’ Virginia driver’s license numbers. In fact, the Virginia driver’s license numbers depicted on the documents belonged to other real individuals who were not the applicants. The indictment alleges that, using the information provided by Portillo, Payne produced and transferred, or caused to be produced and transferred, Maryland driver’s licenses produced without lawful authority to the applicants at the MVA Largo Branch.
According to the indictment, on January 7, 2016, Payne allegedly produced and transferred six fraudulent Maryland driver’s licenses, including licenses for three individuals that used the identity information of two victims. The license for individual 1 was allegedly fraudulently based on the Virginia driver’s license belonging to Victim 4. The licenses for the remaining two individuals were allegedly fraudulently based upon the Virginia driver’s license belonging to Victim 1. The indictment also claims that Payne met with Portillo and other individuals in the parking lot of the MVA Largo Branch. Between January 7, 2016 and February 11, 2016 Payne allegedly created 35 fraudulent driver’s licenses, at least nine of which were based on the Virginia driver’s license numbers of at least five victims.
Antonio Portillo, age 35, of Manassas, Virginia, previously pleaded guilty to his role in the scheme. He has not yet been sentenced.
Maryland Department of Transportation MVA Administrator Chrissy Nizer stated, “Following the April 2016 investigation, MDOT MVA immediately cancelled all of the fraudulent licenses in question. Additionally, we implemented system changes to prevent the unlawful production and transfer of licenses and retrained staff to reinforce proper protocols. MDOT MVA has a zero tolerance policy for fraud, and we take pride in maintaining the highest standards in the interest of safety on Maryland roads.”
If convicted, Payne faces a maximum sentence of 15 years in federal prison for the conspiracy and for production and transfer of identification documents produced without lawful authority; a maximum of 10 years in federal prison for bribery involving an agent of a program receiving federal funds; and a mandatory sentence of two years in federal prison, consecutive to any other sentenced imposed, for aggravated identity theft. The government is also seeking forfeiture of $138,000. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Payne is expected to have an initial appearance in U.S. District Court in Greenbelt at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI for their work in the investigation and thanked the Maryland Motor Vehicle Administration Investigation and Security Services for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Kelly O’Connell Hayes who is prosecuting the case.
# # #
Fitchburg Woman Sentenced for Social Security, MassHealth and Food Stamp FraudRead the Press Release
BOSTON – A Fitchburg woman was sentenced today in federal court in Worcester for fraudulently receiving Social Security disability benefits, MassHealth and Supplemental Nutrition Assistance Program (SNAP) benefits.
Rhonda Bernal, 62, was sentenced by U.S. District Court Judge Timothy S. Hillman to one month of home confinement and two years of probation. Bernal also was ordered to make restitution to the Social Security Administration, MassHealth, and the Massachusetts Department of Transitional Assistance. In December 2020, Bernal pleaded to three counts of theft of public funds and two counts of making false statements.
Over a period of approximately eight years, Bernal stole $71,462 in Social Security benefits, $6,444 in MassHealth benefits and $13,505 in SNAP benefits (previously known as Food Stamps). In February 2015, Bernal falsely informed the Massachusetts Department of Transitional Assistance that she was the only person in her household when, in fact, she was living with her husband. In addition, Bernal falsely told Social Security in April 2016 that she and a relative, who was not her husband, were the only members of her household.
Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Federal Correctional Officer Indicted in Connection with Plan to Smuggle Drugs into PrisonRead the Press Release
Ocala, FL – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Wayne Grant, Jr. (27, Orlando) with receipt of a bribe by a public official. If convicted, Grant faces a maximum penalty of 15 years in federal prison.
According to court documents, Grant worked as a correctional officer at Coleman Federal Correctional Complex in Sumter County. In December 2020, Grant agreed to smuggle methamphetamine into the prison for an inmate in exchange for money. Once federal authorities were notified, Grant unwittingly began contacting an undercover agent in order to complete the transaction.
Federal agents mailed approximately 70 grams of fake methamphetamine and $2000 in money orders to a post office where Grant had requested the drugs be sent. Grant was observed retrieving the package from the post office and later deposited the money orders into his bank account. Subsequently, during his assigned shift on February 4, 2021, Grant smuggled the contraband into FCC Coleman and provided it to an inmate.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice, Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service.
Duplin County Drug Trafficker Who Brandished a Firearm at Deputy Sentenced to 18 Years in PrisonRead the Press Release
RALEIGH, NC- Jorge Zapata Castro, 52, of Duplin County, was sentenced today to 216 months in prison for Possession with Intent to Distribute Five Grams or More of Methamphetamine, Brandishing a Firearm in Furtherance of a Drug Trafficking Crime and Possession of a Firearm by an Illegal Alien.
According to court documents and evidence presented in court, on July 22, 2019 a Duplin County Sheriff’s Deputy observed Zapata Castro leaving a known drug house. The deputy conducted a traffic stop after Zapata Castro crossed the center line multiple times in the area of North Carolina Highway 241 in Duplin County. Zapata Castro informed the deputy that he did not have a driver’s license. While the deputy was conducting his investigation, Zapata Castro fled at high rate of speed. During the chase that ensued, Zapata Castro leaned out of the window of his vehicle and pointed a Smith and Wesson .40 caliber handgun at the deputy. Then, Zapata Castro lost control and crashed his vehicle into a person’s yard at the intersection of Old NC 24 and Wagon Ford Road. Zapata Castro exited the vehicle and then pointed the Smith and Wesson at the deputy again before fleeing on foot. Additionally, Zapata Castro then stole a vehicle from a nearby residence from someone who was washing the car. Zapata Castro was ultimately apprehended in a bean field a short time later.
During a search of Zapata Castro deputies found a loaded handgun and methamphetamine. Detectives also searched the truck that Zapata Castro had wrecked and found 34 grams of methamphetamine and $1,550 in U.S. currency. Zapata Castro was illegally in the country at the time of his arrest and had been previously deported therefore he was prohibited from possessing the handgun.
The investigation was part of OCDETF Operation “Fighting Jellyfish”. An Organized Crime Drug Enforcement Task Force operation identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration, Bureau of Alcohol, Tobacco Firearms and Explosives, Department of Homeland Security, and the Duplin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo 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. 7:19-cr-00130-D-1.
Dominican National Admits to Trafficking Fentanyl, Health Care Fraud, ID TheftRead the Press Release
PROVIDENCE – A Dominican national living in Pawtucket faces between seven and fifty-seven years in federal prison after admitting to a federal court judge that in addition to operating a drug stash house and arranging for the sale of fentanyl on at least four occasions, he used the identity of an individual unknown to him, including the person’s Social Security number and other personal identifying information, to gain Rhode Island Medicaid benefits and Rhode Island driver’s licenses and permits.
According to information presented to the court, since 2010, Jeurin Celado, a/k/a “Tony,” 30, used the name, date of birth, and Social Security number of a person he does not know to gain permits and driver’s licenses from the Rhode Island Department of Motor Vehicles (DMV). Celado’s most recent successful filing with the DMV using the stolen identity occurred on August 5, 2019.
Additionally, beginning in August 2014 and continuing through July 2018, Celado used the same stolen identity, Social Security number, and date of birth to obtain Rhode Island Medicaid benefits, health insurance that as a non-United States citizen he was not eligible to receive. Celado obtained Medicaid benefits valued at approximately $4,342.18.
In 2019, Celado was the target of an undercover drug investigation by the Woonsocket Police Department. The investigation revealed that on four occasions – August 28, September 3, September 10, and September 17, 2019, an individual contacted Celado, whom that individual knew by the name of “Tony,” to arrange the purchase of fentanyl. On each of these occasions, Celado directed the person to a location where that person was met by a “runner” who sold him the drugs in exchange for cash.
On October 7, 2019, law enforcement executed a court-authorized search of an apartment in Manville used by Celado as a stash house, where he stored, cut, and packaged fentanyl he sold as part of his drug operation. Investigators located between 40 and 400 grams of fentanyl in the apartment, along with other items consistent with a drug distribution operation.
Appearing on Friday before U.S District Court Judge William E. Smith, Celado pleaded guilty to false representation of a Social Security number, aggravated identity theft, health care fraud, and conspiracy to distribute fentanyl, announced Acting United States Attorney Richard B. Myrus, Woonsocket Police Chief Thomas Oates, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General.
At sentencing on July 9, 2021, Celado faces statutory penalties of 5-40 years imprisonment for conspiracy to distribute fentanyl; up to 10 years imprisonment for health care fraud; up to five years imprisonment for false representation of a Social Security number; and a mandatory sentence of two years imprisonment for aggravated identity theft, to be served consecutive to all other sentences imposed in this case. In total, Celado faces between seven and fifty-seven years imprisonment to be followed by five years of federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
Acting United States Attorney Myrus acknowledges and thanks the United States Marshals Service for its assistance in locating the defendant.
###
Dominican Man Sentenced to 75 Months for Participation in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Frailin Manuel Gomez-Gil, 29, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, was sentenced to 75 months in federal prison on Friday for participating in a fentanyl trafficking conspiracy, Acing United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Gomez-Gil participated in a drug trafficking organization that was led by Sergio Martinez. Martinez, who is now serving a 45-year prison sentence, employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Gomez-Gil assisted Martinez with testing, diluting, and packaging the drugs for sale.
Gomez-Gil previously pleaded guilty on November 18, 2020. After serving his prison sentence, he faces likely removal to the Dominican Republic.
“Over the past few years, fentanyl has caused tremendous damage to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “Together with our law enforcement partners, we are fighting back against the organizations that distribute this deadly substance in the Granite State. Drug traffickers who seek to profit from selling opioids in the Granite State will be prosecuted and sent to federal prison.”
“The state of New Hampshire is faced with an opioid crisis unlike ever before,” said Drug Enforcement Administration Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service-Criminal Investigations; Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. MacDonald and Seth R. Aframe.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###
Defendant Sentenced for Online ThreatsRead the Press Release
PHOENIX, Ariz. – Austin Ryan Steinbart, 30, of Chandler, Arizona, was sentenced today by United States District Judge Steven P. Logan to a sentence of time served. At the time of sentencing, Steinbart had served 225 days in prison. Steinbart previously pleaded guilty to Interstate Communications with Intent to Extort, a Class E felony.
Between March 21 and 23, 2020, Steinbart made threats to degrade and destroy the operations of a file storage and file sharing company through videos and posts on his YouTube channel after the company suspended his account. Steinbart directed his thousands of YouTube subscribers to flood the company’s tech support line with fictitious emails and phone calls in an attempt to hinder the company’s ability to operate.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution.
CASE NUMBER: CR-20-0485-PHX-SPL
RELEASE NUMBER: 2021-021_Steinbart# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Convicted Fraudster Indicted for Providing False Information on Government-Backed Home Loan ApplicationRead the Press Release
PROVIDENCE – A North Providence woman, serving a term of federal supervised release for having conspired to use the stolen personal identity information of numerous individuals to steal nearly $400,000 from the United States Treasury, has been indicted by a federal grand jury for allegedly making false statements related to her incarceration and the court-ordered requirement that she pay back the stolen money when she applied for a U.S. Federal Housing Administration-backed home mortgage.
It is alleged that Juliana Martins, 52, in June 2019, falsely represented on a home loan application, and in July 2019 on a closing document, that there were no outstanding judgements against her, when in fact she is under court order to pay restitution to the government totaling $385,533.58.
According to the indictment, when responding to requirements to truthfully disclose to the bank her credit report, assets, liabilities, and income, Martins falsely stated to the bank that “the reason I have a job gap in my employment was because I was away on a family emergency for over two years,” when in fact during that time she was incarcerated in federal prison. Additionally, it is alleged, Martins provided a false explanation for an inquiry from the Department of Justice on her credit report.
In March 2014, Martins pleaded guilty to conspiracy to embezzle United States Treasury checks, theft of government property, and aggravated identity theft, admitting that she was a leader of a criminal enterprise that possessed hundreds of people’s personal identifying information that was used to open bank accounts into which fraudulently obtained government checks were deposited. Martins was sentenced in September 2014 to serve 48 months in federal prison to be followed by three years of federal supervised release.
On Friday, a federal grand jury returned an indictment charging Martins with making false statements on bank loan applications, announced Acting United States Attorney Richard B. Myrus and Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development - Office of Inspector General.
The indictment requires, upon conviction, that Martin forfeit to the government her interest in her North Providence house and property.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Martins is scheduled to appear before U.S. District Court Magistrate Judge Patricia A Sullivan on Tuesday for a supervised release violation hearing.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
###
Claremont Couple Plead Guilty to Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
CONCORD - William Cote, 49, and Kelly Cote, 52 of Claremont, pleaded guilty in federal court to conspiracy to defraud the Internal Revenue Service (IRS), Acting United States Attorney John J. Farley announced today.
According to the information and plea agreements, from 2011 through 2016, the Cotes filed false tax returns using the identities of Kelly’s sons and William’s stepsons, J.E. and T.E. While J.E. was deployed overseas for the United States military, the Cotes prepared a false tax return for tax year 2011 using his identity. While T.E. was stationed overseas for the United States military, the Cotes prepared and filed false tax returns for tax years 2012 through 2015 using his identity. To obtain larger refunds, the Cotes falsely listed J.E. and T.E. as head of household on the false tax refunds for these returns and deposited the money into their own joint bank account.
In February 2013, while T.E. was stationed overseas, the IRS audited the false 2012 tax return the Cotes filed using T.E.’s identity. On May 6, 2013, in a phone call with the auditor, William impersonated T.E. and “confirmed” the details in the false 2012 tax return. That same day, to support the false tax return, the Cotes prepared and faxed the auditor lease agreement that falsely stated that T.E. rented William and Kelly’s home. Kelly forged T.E.’s signature on the lease agreement.
All told, the Cotes received more than $36,700 in fraudulent tax refunds.
Kelly Cote pleaded guilty on March 24, 2021 and is scheduled to be sentenced on June 30, 2021. William Cote pleaded guilty on April 5, 2021 and is scheduled to be sentenced on July 15, 2021.
“Knowingly submitting a fraudulent tax return is a serious federal felony offense,” said Acting U.S. Attorney Farley. “These defendants not only submitted false claims for tax refunds, but supplemented their efforts using lies and a forged document to further their scheme. Those who might be tempted to file fraudulent claims for tax refunds should understand that this illegal conduct can have significant legal consequences.”
“Filing false tax returns is not a victimless crime,” stated Ramsey E. Covington, Special Agent in Charge of Internal Revenue Service-Criminal Investigation. “When the Cotes intentionally filed fraudulent tax returns claiming refunds they were not entitled to, they showed a blatant disregard for the American tax system and left the burden of paying for these fraudulent refunds on the shoulders of the American taxpayers. Hopefully the guilty pleas of William and Kelly Cote demonstrate to the public that protecting taxpayer money is a matter we take very seriously at the IRS.”
This matter was investigated by the Internal Revenue Service-Criminal Investigation, the Social Security Administration Office of the Inspector General, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
###
Chicago Man Pleads Guilty to Participating in Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man pleaded guilty in federal court today to participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.
NICHOLAS STELLA, 43, pleaded guilty to one count of conspiracy to conduct an illegal gambling business. The charge is punishable by up to five years in federal prison. U.S. District Judge Virginia M. Kendall set sentencing for June 22, 2021, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Terry Kinney, Ankur Srivastava, and Abigail Peluso.
The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.
Stella stated in a plea agreement that from 2016 to 2019 he conspired with bookmaker VINCENT DELGIUDICE, also known as “Uncle Mick,” and others to accept wagers on the outcome of professional and collegiate sporting events. Stella admitted in the plea agreement that he recruited gamblers for Delgiudice’s operation and regularly met with them to pay out winnings or collect on losses. During the conspiracy, Stella communicated with Delgiudice via text messaging and phone calls, the plea agreement states. In a text exchange in December 2018, Stella stated to Delgiudice, “Between my two big losers in Minnesota, they’ve dumped 73k,” according to the plea agreement. In another text exchange cited in the plea agreement, Stella asked DelGiudice shortly before the 2019 Super Bowl to contact the gamblers directly in order to “settle up” after the game.
Delgiudice pleaded guilty earlier this year to a money laundering charge and is awaiting sentencing.
Charleston Woman Pleads Guilty to Role in Multi-State Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Melanie Lynne Curnutte, 58, of Charleston, pleaded guilty today to conspiracy to distribute 500 grams or more of methamphetamine. She was charged in an indictment returned by a federal grand jury in September 2019.
According to the plea agreement, between the fall of 2018 and September of 2019, Curnutte conspired with multiple individuals to distribute methamphetamine in the Huntington and Charleston areas. During the conspiracy, Curnutte repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. She relied on multiple individuals from Akron to deliver the methamphetamine to her and she would in turn distribute the methamphetamine to various customers. Curnutte admitted that she was aware some of her customers also intended to distribute the methamphetamine she provided to them.
Curnutte faces 10 years to life in federal prison when she is sentenced on July 6, 2021.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00245.
Follow us on Twitter: SDWVNews
###
Cambridge Woman Charged with Stealing Social Security Benefits and Wire FraudRead the Press Release
BOSTON – A Cambridge woman was arrested today and charged with stealing Social Security benefits and committing wire fraud to receive Supplemental Nutrition Assistance Program (“SNAP”) benefits, formerly known as Food Stamps.
Shirley Buchanan, 66, was indicted on one count of theft of public funds and three counts of wire fraud. She is scheduled to make an initial appearance today before U.S. District Court Magistrate Judge Jennifer Boal this afternoon.
According to the indictment, Buchanan maintained and used two Social Security numbers under two different names, both of which she applied for and received Social Security benefits under. Buchanan also allegedly applied for and received SNAP benefits she was not entitled to using the two names and numbers. As a result, Buchanan stole approximately $184,410 in Social Security benefits from March 1993 through November 2018, as well as approximately $12,916.89 in SNAP benefits from February 2012 through April 2020.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Acting U.S. Attorney Announces Appointment of Former Assistant U.S. Attorney James R. Cho to Serve as Magistrate Judge in Brooklyn Federal CourtRead the Press Release
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, today announced that former Assistant U.S. Attorney (AUSA) James R. Cho has been appointed to serve as a United States Magistrate Judge. He will sit in federal court in Brooklyn. Mr. Cho was sworn in today by United States Chief District Court Judge Margo K. Brodie.
“I am proud that James Cho has been selected to serve as a Magistrate Judge for the Eastern District of New York. James was an excellent AUSA who handled some of our Office’s most difficult and complex cases. I am confident that as a federal judge, James will continue to serve the people of our district with integrity and a keen sense of fairness.”
Mr. Cho served in the Office’s Civil Division for more than 12 years and, most recently, served as the Office’s Chief of Immigration Litigation and Chief of Bankruptcy Litigation. Mr. Cho is a seasoned trial lawyer who litigated numerous complex affirmative and defensive matters.
Mr. Cho also previously served as the Civil Division’s training coordinator, where he was responsible for AUSA training, and on the Office’s hiring and diversity and inclusion committees.
As an AUSA, Mr. Cho represented the United States and its agencies and employees in some of the Office’s most challenging cases. He brought affirmative civil enforcement lawsuits on behalf of the United States resulting in significant recoveries arising from fraud against the government or environmental violations. He defended lawsuits challenging government actions, and employment, constitutional and tort claims against the federal government and its employees. Mr. Cho also argued routinely before the Second Circuit Court of Appeals.
Mr. Cho previously taught a course in government civil litigation as an adjunct professor at Brooklyn Law School and New York University Law School. Mr. Cho also previously served as president of the Korean American Lawyers Association of Greater New York and the Asian American Bar Association of New York.
Before joining the Office, Mr. Cho worked in private practice. He graduated from the University of Minnesota Law School cum laude, and from the University of Michigan with high honors.
Mr. Cho will be the first Korean American to serve on the EDNY bench.
Saturday 3 April 2021
Federal Defendant Sentenced for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Thursday sentenced a Newville man for conspiracy to possess and distribute methamphetamine and heroin, announced U.S. Attorney Prim F. Escalona and Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
Chief U.S. District Judge L. Scott Coogler sentenced Tavara Gissendanner, 36, of Newville, to 40 years in prison and 20 years of supervised release. Gissendanner was found guilty by a federal jury in August 2020.
“This sentence serves as a warning to every individual involved in dealing illegal drugs,” Escalona said. “My office remains committed to working with our law enforcement partners to bring justice to those who sell dangerous and illegal drugs in our communities.”
“Gissendanner’s sentencing strikes a major blow to this drug trafficking operation that distributed dangerous drugs, including heroin and methamphetamine, throughout Alabama,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “The great relationships and collaboration we have with our law enforcement partners was the key to successfully removing this poison from our streets.”
Evidence at trial proved that in early 2019 Gissendanner directed a network of associates in trafficking quantities of narcotics – including heroin and methamphetamine – and money across the state. Gissendanner orchestrated the drug trafficking while in Alabama Department of Corrections custody, in part by using contraband cellular phones he obtained in prison. Beginning in early 2019, investigators intercepted shipments of drugs to associates of Gissendanner in the Birmingham area. In one instance, investigators replaced seized heroin with mock narcotics before arresting the recipient of the drugs in Bessemer. The intercepted heroin was worth an estimated $150,000. Additional seizures in the case included quantities of methamphetamine, cocaine, heroin-fentanyl mixtures, and cash.
The investigation was conducted through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, which are primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Homeland Security Investigations and the Alabama Law Enforcement Agency investigated the case with the assistance of the Alabama Department of Corrections. Assistant U.S. Attorneys Austin Shutt and Allison Garnett prosecuted the case.
Friday 2 April 2021
Zuni man charged with murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Brodie Coonsis, 27, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, appeared in federal court April 1 where he was charged with murder in Indian Country. Coonsis will remain in custody pending a detention hearing scheduled for April 5.
According to a criminal complaint, on Feb. 26 Coonsis allegedly drove his truck to the victim’s home on the Pueblo of Zuni reservation. Coonsis allegedly approached the victim’s door with a firearm and knocked at the door. After the victim answered, Coonsis allegedly shot the victim in the back, then shot him three more times.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Coonsis faces life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Zuni Tribal Police. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Wife of Hawaiian Non-Profit Executive Pleads Guilty Conspiring to Embezzle from AmeriCorpsRead the Press Release
WASHINGTON – Angelita Aipoalani, 42, of Waianae, Hawaii, pled guilty on April 1, 2021 in federal court to conspiring with her husband, Hanalei Aipoalani, to embezzle $69,000 from AmeriCorps and to fraudulently obtain more than $11,000 in AmeriCorps education grants.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Deborah Jeffrey, Inspector General of AmeriCorps, and Eli S. Miranda Special Agent in Charge, FBI Honolulu Field Office.
Angelita Aipoalani pled guilty to conspiracy to embezzle from AmeriCorps. That charge carries a statutory maximum of five years and financial penalties. Under the federal sentencing guidelines, Angelita Aipoalani faces a likely recommended sentence of between six and 12 months in prison. The Honorable Reggie B. Walton took the plea and scheduled sentencing for June 24, 2021.
Hanalei Aipoalani previously pled guilty on March 26, 2021 to embezzlement from AmeriCorps and agreeing to take a bribe relating to CARES Act funds. Both charges carry a statutory maximum of ten years and financial penalties. Under the federal sentencing guidelines, Aipoalani faces a likely recommended sentence of between 70 and 87 months in prison. Hanalei Aipoalani’s sentencing is set for June 24, 2021.
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps’ national service members commit to service for a set period of time, usually a year, in exchange for a living allowance, funding to be used for college tuition, and other benefits.
As part of her plea, Angelita Aipoalani admitted to fraudulently enrolling as an AmeriCorps member for multiple years, even though she did not perform the required AmeriCorps service activities. Angelita Aipoalani also admitted to conspiring with Hanalei Aipoalani to fraudulently obtain AmeriCorps education awards for herself even though she had not performed the required AmeriCorps service.
The Inspector General for AmeriCorps, the FBI, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the AmeriCorps program. If you are aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
In announcing the plea, Acting U.S. Attorney Phillips, Inspector General Jeffrey, and Special Agent in Charge Miranda commended the work of those who investigated the case from the Inspector General for AmeriCorps and the FBI’s Honolulu Field office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia including Assistant U.S. Attorneys Leslie A. Goemaat and Peter Lallas of the Fraud Section, Amanda Vaughn of the Public Corruption and Civil Rights Section, former Assistant U.S. Attorney Bianca Forde and Paralegal Specialists Mariela Andrade, Stephanie Frijas, and Joseph McClanahan.