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14 May 2021
NDTX Round up: May 7- 13Read the Press Release
GUILTY PLEA – CARLOS ENREIQUE MEJIA CACERES A.K.A “MACHETE”
On May 11, Carlos Enreique Mejia Caceres, 37, plead guilty to aiding and abetting interference with commerce by robbery and aiding and abetting the using and carrying a firearm during a crime of violence. Mejia Caceres assisted in planning the robbery of a Dallas western wear store which he observed from another location. Following the robbery, Mejia Caceres met with his other co-conspirators and a portion of the proceeds from the robbery. He now faces up to 25 years in federal prison for his crimes. The FBI conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
GUILTY PLEA – JOSE ANGEL REYES
On May 11, Jose Angel Reyes, 36, pleaded guilty to conspiracy to distribute a substance containing a detectable amount of cocaine base. Reyes purchased 552.825 grams of cocaine base and 921.375 grants of cocaine over the course of one year for further distribution to his customers. In October 2018, agents arrested Reyes at his residence where they located a loaded 9mm handgun and two cell phones. He now faces up to XX years in federal prison for the crimes. The DEA conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
GUILTY PLEA – JUSTIN LAJUAN BRITTAIN
On May 11, Justin Lajuan Brittain, 46, pleaded guilty to possession of a firearm by a convicted felon and possession with intent to distribute a controlled substance. Brittain was stopped by Dallas police officers for speeding. When they approached the car, they noticed a marijuana cigarette in the ashtray and a mason jar with additional marijuana. During a search of Brittain’s vehicle, a .380 caliber pistol was recovered between the center console and the driver’s seat. Brittain admitted that he was a felon and knew he was not supposed to possess firearms. He now faces up to 30 years in federal prison for the crimes. The ATF and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney John Boyle prosecuted the case.
GUILTY PLEA – CHRISTOPHER BOWLING
On May 12, Christopher Bowling, 50, pleaded guilty to conspiracy to commit bank fraud. Bowling and his co-conspirators data mined PII from victims from publicly available websites and from the darkweb. He then took out lines of credit using the victims PII. In January 2019, Bowling and other co-conspirators went to a Dallas area retail store to apply for a line of credit using a victim’s PII. In March 2019, Bowling fraudulently applied for a line of credit using a victim’s PII to purchase a Rolex watch and ring. He now faces up to 30 years in federal prison for the crimes. The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Monmouth County Woman Charged with Witness Tampering and Retaliating Against WitnessRead the Press Release
TRENTON, N.J. – A Monmouth County woman has been charged with witness tampering and retaliating against a witness or informant, Acting U.S. Attorney Rachael A. Honig announced today.
Kaitlyn R. Powers, 32, of Aberdeen, New Jersey, is charged by complaint with two counts of retaliating against a witness or informant and one count of witness tampering. Powers is expected to appear by videoconference later today before U.S. Magistrate Judge Tonianne J. Bongiovanni.
According to documents filed in this case and statements made in court:
During an FBI investigation, a confidential source working at the direction and supervision of law enforcement conducted multiple controlled purchases of suspected narcotics, including crack cocaine, from Richard N. Edwards Jr., of Old Bridge, New Jersey. During one of the controlled purchases, Powers distributed suspected narcotics to the confidential source after the confidential source arranged to purchase the suspected narcotics from Edwards. On April 6, 2021, special agents of the FBI arrested Edwards and one of his narcotics suppliers, Jamil J. Yasin of East Orange, New Jersey, on a complaint that charged Edwards and Yasin each with distribution and possession with intent to distribute crack cocaine. The next day, Powers confronted the confidential source in a parking lot of a convenience store in Cliffwood Beach and threatened, among other things, to have the confidential source killed in retaliation for Edwards’s and Yasin’s arrests. Powers also threatened to kill the confidential source in the event Powers were to be charged with a federal crime. Two days later, Powers again confronted the confidential source in the parking lot of a commercial establishment in Cliffwood, New Jersey, and again threatened the confidential source for the confidential source’s assistance during law enforcement’s investigation of Edwards and Yasin.
The charges of retaliating against a witness or informant each carry a maximum sentence of 20 years in prison and a fine of up to $250,000. The charge of witness tampering carries a maximum sentence of 20 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the Matawan, New Jersey, Police Department, under the direction of Chief of Police Thomas J. Falco Jr., for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the defendants are merely accusations and they are presumed innocent unless and until proven guilty.
Minnesota Man Sentenced to More Than Twelve Years in Federal Prison for Florida Investment FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul Byron has sentenced Jeremy Kee Anderson (50, Minnesota) to 12 years and 7 months in federal prison for conspiracy to commit mail and wire fraud, and mail and wire fraud. Anderson had pleaded guilty on February 26, 2021.
According to court documents, Anderson led a conspiracy that defrauded more than 200 victims, most of them elderly, and who had invested a good portion of their life savings, out of more than $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Anderson was founder and principal owner of Tri-Med Corporation.
The investment scheme involved the alleged purchase of medical receivables by Tri-Med, and involved services that were provided to accident victims who were represented by personal injury attorneys. Payment of those medical receivables was supposed to be made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was also supposed to be secured by a “Letter of Protection,” a letter that is provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. The letter is a contract involving a patient, the patient’s attorney, and the medical services provider by which the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.
To fund Tri-Med’s alleged purchases of medical receivables, Anderson and his conspirators solicited individuals to participate in an “investment program” in which investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Anderson and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.” Those representations were false.
Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The vast majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses, while approximately $2.3 million was paid as distributions to investors as “interest payments” to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.” The result was that more than 200 victims lost over $10.3 million in this scheme.
Anderson is the fourth person to be charged and sentenced as part of this conspiracy. Previously, the following individuals were charged and sentenced to federal prison terms for their roles in this conspiracy: Anthony Nicholas, Jr. (63, Hudson) received 11 years and 3 months and Eric Ager (78, Orlando) and Irwin Ager (84, Orlando) each were sentenced to 24 months’ imprisonment.
“The Secret Service, along with our many law enforcement partners, including the Florida Office of Financial Regulation, remains committed to bringing fraudsters such as Anderson to justice,” said U.S. Secret Service Special Agent in Charge Caroline O’Brien Buster. “To prey on our most vulnerable citizens is egregious, amoral and incredibly cruel. The Secret Service will not tolerate such crimes and will actively pursue justice, especially in these cases.”
This case was investigated by the United States Secret Service and the State of Florida’s Office of Financial Regulation. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Roger B. Handberg, III.
Minnesota Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Pipestone, Minnesota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Benjamin Douglas Lorenzen, age 30, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on Lorenzen, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between January 12, 2021, and March 9, 2021.
The charge is merely an accusation and Lorenzen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Lorenzen was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Pleads Guilty to Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced May 12, 2021 that FELIPE MARTINEZ-RIVERA, age 50, pled guilty on May 12, 2021 to a one-count bill of information for reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. § 1326(a)and (b)(1).
According to the bill of information, MARTINEZ-RIVERA reentered the United States after he was previously deported on November 9, 1998. Furthermore, on or about May 18, 2010, MARTINEZ-RIVERA was convicted of illegal possession of less than one gram of cocaine in Harris County Texas – a felony under Texas law.
U.S. District Court Judge Sarah S. Vance set sentencing for July 14, 2021. MARTINEZ-RIVERA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Irene Gonzalez is in charge of the prosecution.
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McLaughlin Man Sentenced on Assault ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a McLaughlin, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury was sentenced on May 11, 2021, by Judge Charles B. Kornmann, U.S. District Court.
Frank One Feather, Jr., age 32, was sentenced to 60 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims fund in the amount of $400.
One Feather was indicted by a federal grand jury on December 10, 2019. A superseding indictment was filed on July 16, 2020. He pled guilty on January 13, 2021.
On November 8, 2019, in McLaughlin, One Feather assaulted two people with a bottle and shod feet after starting an argument. One Feather knocked out each victim and assaulted them again when they regained consciousness.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
One Feather was immediately remanded to the custody of the U.S. Marshals Service.
Massachusetts Man Sentenced to 150 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Steven Lessard, 34, of Lowell, Massachusetts, was sentenced on Thursday to 150 months in federal prison for participating in a fentanyl trafficking conspiracy, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, a drug trafficking organization (DTO) led by Sergio Martinez operated in the Lawrence, Massachusetts area. The DTO sold fentanyl to customers from various New England states including New Hampshire. The DTO operated two sets of telephones to serve large and small customers. These customers placed fentanyl orders by phone and were directed by DTO members to various distributors located in and around Lawrence to obtain the fentanyl.
The DTO also had a third set of larger customers. These customers purchased kilogram quantities of fentanyl from the DTO and were able to contact Martinez directly on his personal telephone. For those customers, Martinez would arrange for a member of the DTO to deliver the drugs to the customer instead of requiring the customer to come meet a DTO member to obtain the drugs. Lessard was one of these customers who purchased kilogram quantities of fentanyl.
Beginning January 29, 2018 and ending March 14, 2018, Lessard was intercepted on wiretaps communicating with Martinez and arranging to obtain fentanyl deliveries. On March 14, 2018, the two spoke and arranged for Martinez to deliver two kilograms of fentanyl to Lessard later that night. After the delivery, the Lowell Police Department obtained a search warrant for Lessard’s residence. Officers seized over two kilograms of fentanyl and multiple firearms. In addition, officers located a scale, several thousand dollars, and the telephone that Lessard used to contact Martinez.
Lessard previously pleaded guilty on September 30, 2019. Martinez is serving a 45-year prison sentence.
“Fentanyl is such an extremely dangerous drug that even a small amount can lead to a deadly overdose,” said Acting U.S. Attorney Farley. “By trafficking in kilogram quantities of fentanyl, Lessard was seeking to profit by selling a product that jeopardized many lives. To protect the citizens of the Granite State, we will continue to work closely with our law enforcement partners to put drug traffickers like Lessard out of business.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “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 Drug Enforcement Administration; 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; 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.
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Man Sentenced to 210 Months in Methamphetamine and Cocaine Distribution ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Fermin Heredia-Lopez, 29, was sentenced today in federal court in Omaha, Nebraska for conspiracy to distribute methamphetamine and cocaine. United States District Judge Robert F. Rossiter, Jr. sentenced Heredia to 210 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Heredia is from Sinaloa, Mexico and will be deported at the completion of his prison term.
In 2019, Heredia was identified by investigators as a cell head for a Mexico-based drug trafficking organization responsible for the distribution of methamphetamine and cocaine in the Omaha metropolitan area. Investigators obtained authorization to wiretap defendant’s cell phone, which began on December 27, 2019. During the wiretap, investigators intercepted incriminating communications between Heredia and his Mexico-based source of supply and determined that Heredia was in possession of a significant quantity of methamphetamine.
Investigators obtained search warrants for two residences in Omaha associated with the defendant and executed the warrants on January 11, 2020. Heredia was arrested at that time. Investigators seized over 32 lbs. of methamphetamine, 455 grams of cocaine, and $10,300 in drug proceeds. Additionally, they collected several kilogram quantity wrappings for cocaine, and wrappings for multiple additional pounds of methamphetamine.
“Today’s sentencing clearly highlights the significant damage that Fermin Heredia-Lopez inflicted in our communities,” DEA Omaha Division Special Agent in Charge Justin C. King said. “The amount of methamphetamine and cocaine that he was distributing is alarming and we know that because of his actions, several families are now suffering. Our investigators successfully tied Heredia to a cartel operating in Mexico and in doing so, made a small dent in the drug trafficking organization. Heredia will spend the next 17-and-a-half years in prison and will no longer be able to cause pain and suffering on the more vulnerable members of our communities.”
This prosecution 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.
The case was primarily investigated by the Drug Enforcement Administration, Omaha Field Division.
Man Pleads Guilty to Million Dollar Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – After three days of trial before a federal jury, an Owings Mills, Maryland man pleaded guilty to wire fraud and identity theft in connection with a fraudulent investment scheme worth approximately $1.26 million.
“In the midst of a jury trial, the defendant admitted that he deceived victims into believing they were investing more than $1.2 million in a high-end fabric design business, when in reality, he fraudulently used their money to fund personal expenses,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office is grateful to the FBI and prosecution team for uncovering and piecing together the evidence that exposed this investment fraud scheme. We will continue to hold accountable those who seek to swindle honest investors.”
According to court records and evidence presented at trial, Manish Singh, 48, entered into an agreement in 2016 with a married couple to create a business that would design and sell high-end fabrics. The couple was to provide the capital for the business, and Singh was to contribute his expertise and contacts in the fabric industry.
Singh represented to the victim investors that their money was being used for numerous expenses related to the business, such as the manufacture of fabric in India. In reality, Singh was using the victims’ money almost entirely for personal expenses, mostly to view live pornography online. Based on Singh’s misrepresentations, the victims gave him approximately $1.26 million for the fraudulent joint business venture.
Singh pleaded guilty to wire fraud and identity theft and faces a maximum penalty of 20 years in prison when sentenced on July 30. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea.
Assistant U.S. Attorneys Grace L. Hill and Heidi B. Gesch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-59.
Lyon County Man Faces Federal Child Pornography and Firearms ChargesRead the Press Release
PADUCAH, Ky. – Acting United States Attorney Michael A. Bennett announced that a Federal Grand Jury returned an indictment on May 11, 2021, charging Kenneth Swartz, 63, of Eddyville, Kentucky with possession of child pornography and being a felon in possession of a firearm.
According to a Criminal Complaint filed on April 21, 2021, law enforcement officials opened an investigation into Swartz after receiving a complaint alleging that Swartz, a registered sex offender, attempted to photograph a minor while shopping at a local store on May 28, 2020. The Eddyville Police Department confirmed the events after reviewing store security footage. On May 29, 2020, a search warrant was executed on Swartz’ residence. Law enforcement recovered a Savage Arms, Stevens model 94 shotgun, along with several cell phones. On June 24, 2020, law enforcement became aware that Swartz possessed an additional cell phone which he kept hidden under a sink at a residence. A second search warrant was obtained, and the additional phone was seized.
The Paducah Police Department subsequently conducted forensic imaging of the data on the cell phones. Homeland Security Investigations (HSI) further analyzed the data and located over 200 images of child pornography.
Swartz has previous felony convictions in Kentucky for the offenses of sexual abuse, first degree, in Bath County in 1998, possession of matter portraying a sexual performance by a minor in Fayette County in 2010, and failure to comply with sex offender registration in Lyon County in 2016.
If convicted at trial, and due to his prior conviction for sexual abuse, Swartz faces not less than 10 years and not more than 20 years in prison for possession of child pornography and not more than 10 years in prison for being a felon in possession of a firearm. There is no parole in the federal system. The case is next scheduled for arraignment on May 27, 2021 at 10:30 a.m. before Magistrate Judge Lanny King.
This case is being prosecuted by Assistant United States Attorneys Raymond McGee and Leigh Ann Dycus. The Eddyville Police Department with the assistance of the Lyon County Sheriff’s Office, the Paducah Police Department, and Homeland Security Investigations conducted the investigation.
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A Criminal Complaint and Indictment are accusations only and the person is presumed innocent until and unless proven guilty.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Knoxville Man Arrested for Federal Firearms ViolationRead the Press Release
KNOXVILLE, Tenn. – On May 14, 2021, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Tennessee Bureau of Investigation (TBI) arrested Kelvon Foster, 21, of Knoxville, TN, on a federal criminal complaint charging Foster with making false or fictitious statements in connection with the purchase of a firearm in violation of Title 18, United States Code, Section 922(a)(6). Violations of that statutory provision are sometimes referred to informally as “straw purchasing.” The complaint was issued by the Honorable H. Bruce Guyton, United States Magistrate Judge for the Eastern District of Tennessee. Foster later appeared before Judge Guyton, entered a not-guilty plea, and was released on conditions of supervision. If convicted, Foster could face imprisonment of up to 10 years and other penalties.
According to documents filed with the court, the firearm at issue was recovered by law enforcement in connection with the officer-involved shooting at Austin-East Magnet High School on April 12, 2021.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and Resident Agent in Charge Keith Jordan of the ATF’s Knoxville Field Office made the announcement.
This prosecution is the result of an ongoing investigation by the ATF and the TBI. The United States Attorney’s Office wishes to thank the Knox County Attorney General’s Office for its support of this federal investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
Members of the public are reminded that the charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Kissimmee Accountant Sentenced to 15 Years in Federal Prison for Embezzling Funds from EmployersRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Kavita L. Harack (35, Kissimmee), aka Kavita Harrack or Sara Harack, to 15 years in federal prison for two counts of wire fraud. The court also ordered Harack to forfeit the $604,637.25 in proceeds which she obtained as a result of the fraud, and to pay restitution to the victims of the offenses. In addition, the court ruled that Harack attempted to obstruct justice during her judicial proceedings by submitting fraudulent documentation to the U.S. Attorney’s Office and making multiple false statements to the court.
Harack had pleaded guilty on October 19, 2020.
According to court documents, in May 2017, Harack was hired to work in the Orlando office of a display services company as an accountant. Between April 2018 and May 2019, Harack directed 74 fraudulent payments from the company to four bank accounts held in her or her husband’s name. Harack disguised the transfers to these personal accounts as vendor payments. After Harack was terminated by the display services company in May 2019, she was hired to work in the accounting department of a project design company in Orlando. Between July 2019 and December 2019, Harack directed four fraudulent payments from the project design company into two of her personal accounts, again disguising the transactions as vendor payments.
In total, between 2018 and 2019, Harack fraudulently paid herself $604,637.25 from accounts belonging to the display services and project design companies. Harack used those funds for personal expenditures, including the purchase of a home, home improvements, travel, retail purchases, restaurants, and beauty expenses.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Judge sentences Cape Girardeau man to 214 months for robbery and firearm chargesRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh sentenced Steven Edmonds to 214 months in prison today. The 36-year-old Cape Girardeau, Missouri, resident pleaded guilty, in February, to two counts of Interference with Commerce by Robbery and two counts of Possession and Brandishing of a Firearm in Furtherance of a Crime of Violence.
On April 24, 2020, at around 4:30 p.m., Steven D. Edmonds walked into the Domino’s Pizza restaurant located at 1028 North Sprigg Street in Cape Girardeau, Missouri. Edmonds pulled a silver handgun from his waist, pointed it at store employee, and demanded money from the cash register. The employee opened the register, took the cash out and gave it to Edmonds, who then walked out of the store. The employee gave the money to Edmonds because he was afraid of being shot if he refused. The amount of cash taken in the robbery was approximately $60.
On April 25, 2020, at around 11:55 a.m., Steven D. Edmonds walked into the CVS Pharmacy located at 1550 Wentzville Parkway in Wentzville, Missouri. Edmonds shopped for a while, then approached the store cashier. Edmonds pulled a small black handgun from his waistband and displayed it to the clerk. Edmonds demanded money from the register. The cashier reached in the register and gave approximately $216 in cash to Edmonds. The cashier did so because he was afraid of being shot if he refused. Edmonds walked out of the store after receiving the cash.
This case was investigated by the Cape Girardeau Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Keith Sorrell handled the prosecution.
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Iowa Man Sentenced to more than 12 Years’ Imprisonment for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that John Bourisaw, age 29, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm. United States District Court Judge Robert F. Rossiter, Jr. sentenced Bourisaw to 145 months’ imprisonment. After completing his term of imprisonment, Bourisaw will be required to serve a 5-year term of supervised release. There is no parole in the federal system. Bourisaw’s prison sentence was extended by 5 years as he possessed a firearm in connection with his drug dealing.
On January 22, 2020, Omaha Police officers received information that wanted fugitive Bourisaw was in the area of 36th and Orchard Avenue in Omaha. Surveillance was set up in the area and Bourisaw was observed arriving in a vehicle and then exiting it. Thereafter, officers approached and ordered him to the ground. Bourisaw refused and fled on foot. During a chase, officers saw him discard a handgun and keys to the vehicle he had arrived in, which turned out to be stolen. Bourisaw was captured and a search of his person revealed approximately 34 grams of actual methamphetamine. A search of the vehicle revealed drug paraphernalia and a rifle.
This case was investigated by the Omaha Police Department. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Iowa Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux City, Iowa, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jacob Lee Schmidt, age 33, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Schmidt, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between February 1, 2021, and May 4, 2021.
The charge is merely an accusation and Schmidt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Schmidt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 10 was:
Buddy Jonathan Shaw Jr., 49, of Belgrade, on charges of conspiracy to distribute and possession with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Shaw faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Shaw was detained pending further proceedings. The Bozeman Missouri River Drug Task Force – FBI, Bozeman Police Department, Gallatin County Sheriff’s Office, Drug Enforcement Administration and U.S. Postal Service investigated the case. PACER case reference. 21-17.
Appearing on May 13 and pleading not guilty was:
Zachary Christopher Hillis, 28, of Sand Springs, on charges of illegal reentry. If convicted of the most serious crime, Hillis faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release. Hillis was detained pending further proceedings. Immigration and Customs Enforcement investigated the case. PACER case reference. 21-31.
Appearing on May 14 and pleading not guilty was:
Colton Thomas Jens, 38, of Billings, on charges of distribution of meth. If convicted of the most serious crime, Jens faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Jens was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 20-123.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on May 11 was:
Ray Dean Bird, 42, of Starr School, on charges of aggravated sex abuse of a child, abusive sexual contact and other crimes. If convicted of the most serious crime, Bird faces life in prison, a $250,000 fine and five years to life of supervised release. Bird was released pending further proceedings. The FBI and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-30.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 12 was:
Tommy Plante, 32, of Edmonton, Alberta, Canada, on charges of prohibited person in possession of a firearm and illegal entry into the United States. If convicted of the most serious crime, Plante faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Plante was detained pending further proceedings. The U.S. Border Patrol, Montana Department of Fish, Wildlife and Parks, Lincoln County Sheriff’s Office and FBI investigated the case. PACER case reference. 21-22.
Appearing on May 14 and pleading not guilty was:
Brandie Rae Hulford, 42, of Bozeman, on charges of conspiracy to distribute and possession with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Hulford faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hulford was released pending further proceedings. The Bozeman Missouri River Drug Task Force – FBI, Bozeman Police Department, Gallatin County Sheriff’s Office, Drug Enforcement Administration and U.S. Postal Service investigated the case. PACER case reference. 21-16.
Ciara Lee Ann Creason, 29, of Helena, on charges of conspiracy to distribute and possession with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Creason faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Creason was released pending further proceedings. The Bozeman Missouri River Drug Task Force – FBI, Bozeman Police Department, Gallatin County Sheriff’s Office, Drug Enforcement Administration and U.S. Postal Service investigated the case. PACER case reference. 21-15.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hudson County Man Sentenced to 27 Months in Prison for Role in Wire Fraud Scheme to Defraud Financial Institution CustomersRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey man has been sentenced to 27 months in prison for participating in a scheme that involved defrauding financial institution customers of almost half a million dollars, Acting U.S. Attorney Rachael A. Honig announced today.
Ramon Herrera, 37, of Jersey City previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of wire fraud. Judge Hayden imposed the sentence May 13, 2021, in Newark federal court.
According to documents filed in this case and statements made in court:
Between May 2015 and January 2018, Herrera used his position as a registered broker and financial advisor at a clearing services company associated with “Financial Institution-1” to meet and learn confidential information about Financial Institution-1 customers in the Hudson County area, for whom he was ostensibly providing advice and brokerage services. Herrera caused the Financial Institution-1 customers he was advising, many of whom were elderly or communicated with Herrera in Spanish, to sign blank withdrawal slips, which Herrera then completed and presented to bank tellers at Financial Institution-1 branches. Herrera directed the bank tellers to withdraw the money from the customers’ accounts in the form of cashier’s checks, which enabled Herrera to then apply the checks against the various personal accounts that Herrera and a family member maintained at Financial Institution-1. Herrera stole more than $450,000 from approximately 40 Financial Instiution-1 customers. He used the stolen funds for his own purposes without the customers’ knowledge or authorization.
In addition to the prison term, Judge Hayden sentenced Herrera to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Gulfport Man Sentenced under Project EJECT to Nearly 4 Years in Prison for Firearms OffenseRead the Press Release
Gulfport, Miss. – A Gulfport man was sentenced today under Project EJECT for being an unlawful user of a controlled substance in possession of a firearm and ammunition, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration.
Kevin Jaquan Willis, 23, of Gulfport, was sentenced to 43 months in federal prison. He pled guilty to the charges on February 11, 2021.
Willis was arrested on October 7, 2020, when law enforcement officers with the Gulfport Police Department conducted a traffic stop on a vehicle he was driving. A subsequent search of the vehicle resulted in the discovery of 98 grams of marijuana, a digital scale, and a Smith and Wesson M&P 15 assault style rifle. The rifle was loaded with 24 rounds of ammunition. Willis was taken into custody. After being advised of his Miranda Rights, Willis admitted to regularly smoking marijuana for several years. He also indicated that he smoked about an ounce of marijuana per day. Finally, Willis admitted to possessing both the marijuana and the rifle.
This case was investigated by the DEA and the Gulfport Police Department.
Assistant U.S. Attorney Jonathan Buckner prosecuted the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Georgia Man Sentenced for Possession of a Stolen Firearm and Failure to AppearRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Cornelia, Georgia, man convicted of Possession of a Stolen Firearm and Failure to Appear was sentenced on May 10, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Jamecus Lushawn Hodges, age 42, was sentenced to 90 months in federal prison on the firearm offense and 30 months in federal prison on the failure to appear offense, to run consecutive for a total of 120 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Hodges was indicted by a federal grand jury on February 13, 2019, and again on November 10, 2020. He pled guilty in both cases on May 10, 2021.
The firearm conviction stemmed from an incident that occurred on December 8, 2018. During a traffic stop on Interstate 90, a South Dakota Highway Patrol Trooper found marijuana, cocaine, and a stolen firearm in Hodges vehicle. Hodges became uncooperative and combative and ran into the oncoming lane of traffic, stalling traffic on the interstate, prior to being taken into custody. Hodges was eventually released on bond and entered into a plea agreement relating to the traffic stop. Hodges then knowingly failed to appear for his change of plea and sentencing on October 5, 2020. He was charged with failure to appear in November 2020 and taken into federal custody on March 19, 2021, in Georgia.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the South Dakota Highway Patrol, Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Hodges was immediately turned over to the custody of the U.S. Marshals Service.
Four-times Convicted Felon Pleads Guilty to Federal Gun Law ViolationRead the Press Release
PITTSBURGH, PA - A resident of Wilkinsburg, PA, pleaded guilty in federal court to a charge of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
Jacque Butler, 26, pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon, before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Mr. Butler was a passenger in a vehicle during a traffic stop of September 8, 2020. During the traffic stop, officers with the City of Duquesne Police Department detected the strong odor of burnt marijuana and conducted a search of the vehicle. A backpack in Mr. Butler’s possession contained a loaded handgun containing 15 rounds of ammunition, a separate pistol magazine containing an additional 15 rounds of ammunition, Mr. Butler’s driver’s license, and Mr. Butler’s social security card.
The court was further advised that Mr. Butler has four prior felony convictions. On April 30, 2018, Mr. Butler pled guilty in three separate criminal cases in the Court of Common Pleas of Allegheny County to one count of receiving stolen property and two counts of firearms not to be carried without a license. On April 1, 2019, Mr. Butler pled guilty in the Court of Common Pleas of Allegheny County to Firearms Not to Be Carried without a License. Under federal law, convicted felons are prohibited from possessing firearms and ammunition.
Judge Bissoon scheduled sentencing for Sept. 2, 2021 at 10:00 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, 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. Mr. Butler remains detained pending sentencing.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The City of Duquesne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Mr. Butler.
Fort Thompson Man Sentenced for Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on May 10, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Dawson Donner, age 23, was sentenced to 37 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Donner was indicted by a federal grand jury on September 9, 2020. He pled guilty on February 22, 2021.
The conviction stemmed from an incident that occurred in February 2020, in Fort Thompson. Donner knowingly engaged in sexual acts with a minor victim who had not attained the age of 16, when at the time Donner was more than four years older than the victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley prosecuted the case.
Donner was immediately turned over to the custody of the U.S. Marshals Service.
Former Watertown Woman Sentenced for Misuse by a Representative PayeeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a former Watertown, South Dakota, woman charged with Misuse by a Representative Payee pled guilty and was sentenced on May 10, 2021, by U.S. District Judge Charles B. Kornmann.
Marilyn Ruth Holley, age 41, was sentenced to 60 months of probation, restitution in the amount of $12,158.64, and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that took place between November 19, 2015, and April 1, 2019, when Holley, who was appointed to be the representative payee for a minor child, received the child’s Title XVI Supplemental Security Income benefits payments and converted some of them to her own use, including gambling.
The investigation was conducted by the Social Security Administration, Cooperative Disability Investigation Unit. The case was prosecuted by Assistant U.S. Attorney Ann M. Hoffman.
Former North Platte Man Convicted for Transportation of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Nathanael J. Brown, 28, formerly of North Platte, Nebraska, was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for transportation of child pornography. Brown was sentenced to 6 years and 6 months in prison and 7 years of supervised release with special conditions. There is no parole in the federal system. Brown was additionally ordered to pay $3,500 in restitution.
This case began when Homeland Security Investigations (“HSI”) in Nebraska received a cybertip indicating that Kik user “antin5” (later identified as Brown) uploaded a child pornography file on April 29, 2019. On February 26, 2020, HSI and Nebraska State Patrol (“NSP”) agents conducted a knock and talk at Brown’s home in North Platte. Brown admitted to law enforcement that he viewed child pornography. Brown said that he used his phone and laptop to browse and download child pornography content, but that he never really saved the files. He also admitted to sharing both image and video content. He admitted sharing content as recent as the week before speaking with law enforcement. Brown gave law enforcement written consent to search his cell phone. A review of Brown’s cell phone revealed at least six (6) videos of child pornography, as well as 31 images containing possible or suspected child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the Nebraska State Patrol.
Former Mid-State Securities Broker Sentenced to Federal Prison for Stealing from Elderly ClientsRead the Press Release
NASHVILLE – A former Investments Vice President at Raymond James & Associates, Inc. (Raymond James), was sentenced yesterday to five years in prison for stealing $933,500 from two elderly clients, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Fredrick M. Stow, 66, of Franklin, Tennessee, was charged in June 2020 with securities fraud, wire fraud, and aggravated identity theft and pleaded guilty in August. In a separate action, the U.S. Securities and Exchange Commission (SEC) filed a civil action against Stow, alleging violations of the antifraud provisions of the Securities Exchange Act of 1934.
In sentencing Stow, U.S. District Judge Aleta A. Trauger issued a stern rebuke of those in a position of trust who manage investments for others, especially the elderly, and choose to steal from them. Judge Trauger also ordered a forfeiture money judgement in the amount of $933,500.
According to Court records, beginning in 1982, Stow acted as the registered representative for three brokerage accounts owned by a client who was a retired airline pilot and WWII era veteran. Stow changed investment firms several times and the client elected to move his accounts with Stow each time, ultimately transferring his accounts to Raymond James when Stow joined the firm in 2013. Over time, Stow inserted himself into the financial affairs of this client and in the later years of the client’s life, he visited him at his home. Relatives at the hearing testified that the client died believing that his dwindling investment accounts were caused solely by stock market activity.
In October 2015, Stow began misappropriating funds from this client’s IRA account by forging wire transfer letters of authorization to permit transfers from the client’s IRA account to a SunTrust Bank account that Stow owned jointly with his wife. To accomplish the transfers, Stow sold securities in the client’s IRA account.
At the time of this client’s death at the age of 98 in March 2018, Stow had made 74 unauthorized transfers and had stolen more than $900,000 from him. Within weeks of this client’s death, Stow stole $32,000 from another elderly brokerage customer, by transferring money from the customer’s brokerage account to another SunTrust bank account that Stow owned.
This case was investigated by the United States Secret Service and the SEC. Assistant U.S. Attorney Stephanie N. Toussaint prosecuted the case.
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Former Fall River Mayor Convicted of Extorting Marijuana Vendors and Defrauding InvestorsRead the Press Release
BOSTON – Jasiel F. Correia II, the former Mayor of Fall River, Mass., was convicted by a federal jury today in connection with a scheme to defraud investors and extorting marijuana vendors for thousands of dollars.
Correia, 29, was convicted of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 20, 2021.
Correia was first indicted on wire fraud and filing false tax returns in October 2018. He was subsequently charged in a superseding indictment in September 2019 with, among other crimes, extortion conspiracy and extortion.
“Jasiel Correia made many promises in business and politics, but today’s verdict speaks the truth: Correia defrauded people who trusted him, he lied on his taxes, and he extorted hundreds of thousands of dollars in bribes as the mayor of Fall River,” said Acting United States Attorney Nathaniel R. Mendell. “With this prosecution, the U.S. Attorney’s Office has again fulfilled its role to find, investigate and prosecute public corruption in Massachusetts. We do not campaign, we do not run for office. We prosecute public corruption without fear or favor. The people of Massachusetts deserve a U.S. Attorney’s office that works that way, we are proud to do this work, and we’re not stopping.”
“Today’s verdict makes it crystal clear that you can’t trade on your office, embrace a corrupt pay-to-play culture and get away with it. Jasiel Correia was only a two-term mayor, but he has done lasting damage to the trust bestowed upon him by the citizens of Fall River,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “In lying to investors and extorting hundreds of thousands of dollars in bribes to support his lavish lifestyle, he put his own selfish interests above those he was elected to serve. We thank the jurors for their service and thoughtful deliberations and remind the public that cases like this only fuel the FBI’s commitment to tackling public corruption at all levels of government.”
“Elected officials are rightly held to a higher standard and should set the example of honesty and adherence to the rule of law. As a business owner and as a mayor, Mr. Correia, betrayed the trust of both his clients and the voters who put him in office. The jury's decision today will now hold him accountable for his actions,” said Assistant Special Agent in Charge David Toy of the Internal Revenue Service-Criminal Investigation. “Today’s verdict proves that government employees, including elected officials, will be held accountable when they violate the public's trust, particularly in the performance of their official duties.”
“Today’s verdict proves that government employees, including elected officials, will be held accountable when they violate the public's trust, particularly in the performance of their official duties,” said Massachusetts Inspector General Glenn A. Cunha.
In 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. Seven individuals invested a total of approximately $360,000 in SnoOwl. Correia used approximately $230,000 – 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.
To conceal his theft of funds from investors, Correia refused to provide the company’s financial records and gave false positive updates on SnoOwl’s status. Additionally, in May 2017, Correia instructed an accountant to file amended 2013 and 2014 personal tax returns in an effort to conceal his fraudulent activity from the IRS.
After taking office as Fall River Mayor in January 2016, Correia agreed to issue non-opposition letters to marijuana vendors in return for cash bribes and other payments. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River. In addition, applicants seeking marijuana licenses are required to enter into host community agreements, between the marijuana company and the local government, stating that the company will give up to 3% of its gross sales to the local government.
Four marijuana vendors agreed to pay bribes ranging from over $75,000 up to $250,000 in cash, campaign contributions and mortgage discharges to Correia and his co-conspirators in return for non-opposition letters and host community agreements.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charges of extortion and extortion conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.\
Acting U.S. Attorney Mendell; FBI Boston SAC Bonavolonta; IRS-CI Assistant SAC Toy; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Massachusetts Inspector General Cunha made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Mendell’s Criminal Division, and David Tobin, of Mendell’s Major Crimes Unit, are prosecuting the case.
Former Cell Service Associates and Co-Conspirator Facing Federal Indictment for Aggravated Identity Theft, Conspiracy to Commit Wire Fraud, and Wire FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging four individuals for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The indictment was returned on April 29, 2021 and unsealed on May 13, 2021 upon the arrest of the final defendant. The four defendants are:
Reginald McElrath, age 40, of Cockeysville, Maryland;
Chantelle Harris, age 33, of Hyattsville, Maryland;
Robert Patterson age 21, of Odenton, Maryland and;
Danisha Thomas age 37, of Bladensburg, Maryland.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to the indictment, from July 2019 to January 2020, McElrath, Harris, Patterson, and Thomas allegedly used the identifying information of at least 17 individuals to obtain new cell phones. McElrath, Harris, and Patterson worked in Maryland for a vendor contracted by a multinational retail corporation to handle all contractual wireless phone transactions in their stores. As cell service associates, McElrath, Harris, and Patterson were required to obtain the personal identifying information (PII) of customers in order to initiate a new account or upgrade an existing account. The indictment alleges that McElrath, Harris, and Patterson used their positions to apply for new cell phone accounts with various carriers and to apply for upgraded cell phones on existing cell phone accounts in the victims’ names using the PII of the victims without their knowledge or permission. McElrath, Harris, and Patterson allegedly charged purchases of new cell phones to fraudulent cell phone service accounts they opened in the victims’ names and none of the costs were borne by members of the conspiracy.
The indictment also alleges that co-conspirators, including Thomas, would receive the fraudulently obtained cell phones directly from McElrath, Harris, Patterson and others from inside the retail store. One or more of the co-conspirators allegedly distributed the fraudulently obtained cell phones to other co-conspirators at the cost of the identity theft victims.
In sum, the defendants allegedly used the stolen PII of 17 individual victims to fraudulently obtain at least $537,000 worth of cell phones.
If convicted, the defendants face a maximum sentence of 20 years in prison for wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentenced imposed, for aggravated identity theft. 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. Thomas had an initial appearance yesterday in U.S. District Court in Baltimore. The other three defendants previously had initial appearances on a related federal criminal complaint.
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 the U.S. Postal Inspection Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and Matthew J. Maddox, who are prosecuting the case.
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Former Army Green Beret Sentenced for Russian Espionage ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former Army Green Beret was sentenced today to 188 months in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
“Debbins flagrantly and repeatedly sold out his country, including while he served as a Captain in the U.S. Army Special Forces,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendant’s brazen disclosures to Russian intelligence agents jeopardized U.S. national security and threatened the safety of his fellow servicemembers. This prosecution underscores our firm resolve to hold accountable those who betray their sworn oath and bring them to justice for their exceptionally serious crimes.”
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 46, of Gainesville, a former member of the U.S. Army, conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces, and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy,” said John C Demers, Assistant Attorney General for National Security. “His conduct is a personal betrayal of colleagues and country, and it reflects the threat of Russian intelligence operations targeting our military. Today’s almost 16-year sentence reflects the seriousness of his conduct. It should also serve as a warning to those who would be tempted to do the same.”
“The Green Berets epitomize heroics, leadership, and bravery, but Debbins was just the opposite,” said Alan E. Kohler, Jr., Assistant Director of Counterintelligence for the FBI. “Debbins’ actions in this case show a complete disregard for his fellow soldiers and for his country. The FBI will do everything in its power to identify those who choose to betray our country and bring them to justice.”
“The betrayal of fellow U.S. citizens and servicemembers is inexcusable, and today Debbins was sentenced for his reprehensible and dangerous actions,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “He was entrusted to serve his country and protect his fellow Special Forces team, but instead he chose to provide classified national defense information to his own country’s adversary. This investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to diligently and doggedly counter national security threats to the U.S.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents encouraged him to join and pursue a career in the Special Forces, where he attained the rank of Captain.
Over the course of the conspiracy, Debbins provided Russian intelligence agents with information he obtained as a member of the U.S. Army, including sensitive details about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with names of and information about several his former Special Forces team members for the purpose of allowing the agents to recruit them to conspire with the Russian intelligence service.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; John C. Demers, Assistant Attorney General for National Security; Alan E. Kohler, Jr., Assistant Director of Counterintelligence for the FBI; and Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office; made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Acting U.S. Attorney Parekh and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service, and MI5.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-193.
Former Army Green Beret Sentenced for Russian Espionage ConspiracyRead the Press Release
WASHINGTON – A Virginia man and former Army Green Beret was sentenced today to 188 months in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
Peter Rafael Dzibinski Debbins, 46, of Gainesville, admitted to conspiring with agents of a Russian intelligence service. According to court documents, from December 1996 to January 2011, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces, and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit them as spies,” said Assistant Attorney General John C. Demers for the Justice Department's National Security Division. “His conduct is a personal betrayal of colleagues and country, and it reflects the threat of Russian intelligence operations targeting our military. Today’s almost 16-year sentence reflects the seriousness of his conduct. It should also serve as a warning to those who would be tempted to do the same.”
“Debbins flagrantly and repeatedly sold out his country, including while he served as a Captain in the U.S. Army Special Forces,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The defendant’s brazen disclosures to Russian intelligence agents jeopardized U.S. national security and threatened the safety of his fellow servicemembers. This prosecution underscores our firm resolve to hold accountable those who betray their sworn oath and bring them to justice for their exceptionally serious crimes.”
“The betrayal of fellow U.S. citizens and servicemembers is inexcusable, and today Debbins was sentenced for his reprehensible and dangerous actions,” said Assistant Director in Charge Steven M. D’Antuono for the FBI Washington Field Office. “He was entrusted to serve his country and protect his fellow Special Forces team, but instead he chose to provide classified national defense information to his own country’s adversary. This investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to diligently and doggedly counter national security threats to the U.S.”
“The Green Berets epitomize heroics, leadership, and bravery, but Debbins was just the opposite,” said Assistant Director Alan E. Kohler Jr. for the FBI’s Counterintelligence Division. “Debbins' actions in this case show a complete disregard for his fellow soldiers and for his country. The FBI will do everything in its power to identify those who choose to betray our country and bring them to justice.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents encouraged him to join and pursue a career in the Special Forces, which he did, where he served at the rank of Captain.
Over the course of the conspiracy, Debbins provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, a number of his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump for the Eastern District of Virginia and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Acting U.S. Attorney Parekh and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service and MI5.
Florida Man Sentenced for Evading Taxes on Millions in Secret Offshore Bank AccountsRead the Press Release
A resident of Palm Beach County, Florida, was sentenced to 24 months in prison for not reporting his foreign financial accounts from 2006 through 2015 and for willfully evading the assessment of millions in taxes from 2007 through 2014.
According to court documents, from 2003 through 2009, Dusko Bruer owned and operated a company that bought U.S.-made agricultural machinery and parts and sold them throughout the world. Bruer’s company had numerous employees and reaped millions of dollars in annual gross receipts. Despite its success, Bruer’s company did not file employment or corporate tax returns, nor did the company pay employment or income taxes. Furthermore, from 2003 forward, the company never paid Bruer a salary. Instead, Bruer directed that millions of dollars from the company’s bank accounts be used to pay his personal expenses, to make foreign investments, and to transfer funds to his family members.
To conceal his income from the IRS, from 2006 through at least 2015, Bruer owned and controlled bank accounts held at financial institutions in Croatia, Germany, Serbia, and Switzerland, which he did not report, in violation of the law. Between 2007 to 2011 alone, Bruer transferred $5.8 million from domestic accounts to these foreign financial accounts. In total, between 2007 and 2014, Bruer did not report receiving $7,726,213 in income, nor did he pay $2,789,538 in taxes. Bruer used his unreported offshore accounts to fund his lifestyle, including the purchase of foreign property, a $1,350,000 yacht, and a 3,200 square foot home in Lake Worth, Florida, with 100 feet of frontage on the Intracoastal Waterway for $1,650,000.
In addition to the term of imprisonment, Senior U.S. District Court Judge Kenneth A. Marra ordered Bruer to serve two years of supervised release and to pay approximately $2,789,538 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement. Further, Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Gonzalez would like to thank the Ministry of Justice of the Republic of Croatia for their assistance in this matter. The Justice Department’s Office of International Affairs provided significant assistance.
The IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Mark F. Daly of the Tax Division and Assistant U.S. Attorney Aurora Fagan of the Southern District of Florida are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Man Sentenced for Evading Taxes on Millions in Secret Offshore Bank AccountsRead the Press Release
Miami, Fl. – A resident of Palm Beach County, Florida, was sentenced to 24 months in prison for not reporting his foreign financial accounts from 2006 through 2015 and for willfully evading the assessment of millions in taxes from 2007 through 2014.
According to court documents, from 2003 through 2009, Dusko Bruer owned and operated a company that bought U.S.-made agricultural machinery and parts and sold them throughout the world. Bruer’s company had numerous employees and reaped millions of dollars in annual gross receipts. Despite its success, Bruer’s company did not file employment or corporate tax returns, nor did the company pay employment or income taxes. Furthermore, from 2003 forward, the company never paid Bruer a salary. Instead, Bruer directed that millions of dollars from the company’s bank accounts be used to pay his personal expenses, to make foreign investments, and to transfer funds to his family members.
To conceal his income from the IRS, from 2006 through at least 2015, Bruer owned and controlled bank accounts held at financial institutions in Croatia, Germany, Serbia, and Switzerland, which he did not report, in violation of the law. Between 2007 to 2011 alone, Bruer transferred $5.8 million from domestic accounts to these foreign financial accounts. In total, between 2007 and 2014, Bruer did not report receiving $7,726,213 in income, nor did he pay $2,789,538 in taxes. Bruer used his unreported offshore accounts to fund his lifestyle, including the purchase of foreign property, a $1,350,000 yacht, and a 3,200 square foot home in Lake Worth, Florida, with 100 feet of frontage on the Intracoastal Waterway for $1,650,000.
In addition to the term of imprisonment, Senior U.S. District Court Judge Kenneth A. Marra ordered Bruer to serve two years of supervised release and to pay approximately $2,789,538 in restitution to the United States.
Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. Further, Acting U.S. Attorney Gonzalez and Acting Deputy Assistant Attorney General Goldberg would like to thank the Ministry of Justice of the Republic of Croatia for their assistance in this matter. The Justice Department’s Office of International Affairs provided significant assistance.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Aurora Fagan of the Southern District of Florida and Senior Litigation Counsel Mark F. Daly of the Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-80013.
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Florida Man Sentenced for $1.3 Million Securities Fraud SchemeRead the Press Release
A Florida man was sentenced today to more than four years in prison for operating an investment scheme in which he used investor funds to repay other investors and misappropriated funds for himself.
David C. Coggins, 42, of Miami, pleaded guilty to one count of securities fraud on March 2, 2021. According to court documents, Coggins solicited investors to his investment fund between 2015 and 2020 by touting the fund’s successful performance and total assets under management. Over time, the fund lost money and Coggins used money from new investors to pay other investors. Coggins also misappropriated funds for his personal purposes. To conceal the fund’s actual losses and persuade investors to part with their money, Coggins fabricated reports purportedly showing the fund’s successful performance and created a fraudulent independent auditor’s report. By the end of 2020, the net asset value of the fund was nearly zero.
In addition to the prison sentence, Coggins was also ordered to pay $1,305,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; and Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
The U.S. Postal Inspection Service’s Criminal Investigations Group investigated the case.
Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section prosecuted the case.
Final Defendants Sentenced in Red River County Methamphetamine Trafficking ConspiracyRead the Press Release
TEXARKANA, Texas – The final two defendants in a Clarksville methamphetamine conspiracy have been sentenced to federal prison in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
According to court documents, Jacory Dewayne Coulter, 35, pleaded guilty on Oct. 5, 2020, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 102 months in federal prison on May 13, 2021, by U.S. District Judge Robert W. Schroeder III.
Brandon Charles Nickerson, 42, pleaded guilty on July 1, 2020, to the same charges and was sentenced to 70 months in federal prison on April 21, 2021 by Judge Schroeder.
“Today’s sentences close the book on a methamphetamine trafficking operation, and makes the Red River County area a safer place to live and work,” said Acting U.S. Attorney Nicholas J. Ganjei. “This operation also showcases how effective a joint federal, state, and local law enforcement operation can be. Expect to see similar operations in the near future.”
The U.S. Attorney’s Office will never stop fighting against the scourge of methamphetamine distribution that destroys so many lives,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are grateful to our law enforcement partners who have also worked tirelessly to identify and disrupt these dangerous organizations.”
Operation Big Red is a multiyear methamphetamine trafficking investigation in Red River County that has led to federal convictions of 11 men. From at least January 2016, Counter and Nickerson were part of that conspiracy which distributed large amounts of methamphetamine in the Clarksville area. Previously, Judge Schroeder sentenced other Mavin Earl Baty to 92 months in prison; Gregory Lamont Dillard to 102 months; Victor Gonzales to 63 months; Miguel Angel Hernandez to 78 months; Neopholis Dontray Scales to 70 months; Brian Bradley Beers to 70 months; Kevin Wayne Guess to 57 months; James Wayne Johnson to 145 months; and Billy Carl Webb, Jr., to 120 months in prison.
The Texas Department of Public Safety-CID and the Red River County Sheriff’s Office investigated the case. Assistant U.S. Attorney Jonathan R. Hornok prosecuted the case.
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Federal Grand Jury Indicts Buffalo Man for Being A Felon-In-Possession of A FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned an indictment charging Kaylen Edwards, 23, of Buffalo, NY, with being a felon-in-possession of a firearm. The charge carries carry a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the indictment and a previously filed complaint, on November 7, 2020, Cheektowaga Police Officers responded to Pinehurst Avenue, where a limousine bus party was being let out, following a report of disorderly persons. According to the complaint, earlier that day, the defendant was identified on social media flashing a black and silver handgun and wearing a distinct black and red jacket inside the limousine bus. A member of law enforcement sent a photo of the social media post to responding officers.
While on Pinehurst Avenue, officers observed Edwards getting into the front passenger seat of a vehicle with Georgia license plates and leave the area. The officers then observed the vehicle in violation of multiple vehicle and traffic infractions and conducted a traffic stop. The officers observed a marijuana cigar end in the center console area and immediately detected the odor of burnt marijuana emanating from the vehicle. Officers identified Edwards as the passenger. The defendant was detained. During a pat frisk, an officer felt and observed a handgun in Edwards’ side waist band. The handgun was loaded with a magazine containing seven .45 caliber rounds and one .45 caliber round in the chamber. In November 2017, the defendant was convicted of Attempted Criminal Possession of a Weapon in New York State Court, and as a result of that conviction, he is prohibited from legally possessing a firearm.
The indictment is the result of an investigation by the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Court Permanently Shuts Down Mississippi Tax PreparerRead the Press Release
A federal court in the Northern District of Mississippi has permanently enjoined a Senatobia, Mississippi, tax return preparer from preparing returns for others and from owning, operating, or franchising any tax return preparation business in the future.
According to the court’s order, Kathy R. Moton and K&M Tax Essentials LLC consented to entry of the injunction, which permits the United States to conduct full post-judgment discovery to monitor compliance. The terms of the order require that Moton and K&M Tax Essentials send notice of the injunction each person for whom they prepared federal tax returns, other tax forms, or claims for refund after Jan. 1, 2018, and to advertise the injunction on social media for one year. The civil complaint filed against defendants alleged that their fraudulent activities resulted in a loss to the Treasury of over $1 million.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County Man Indicted for Possessing Semi-Automatic Rifle and a Large Quantity of OxycodoneRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted for possessing a semi-automatic rifle loaded with a high-capacity magazine, several rounds of ammunition, and a large quantity of oxycodone, Acting U.S. Attorney Rachael A. Honig announced today.
Shaquille Hankerson, aka “Jaquil L. Tukes,” 30, of Newark, is charged with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute oxycodone, and one count of possession of a firearm in furtherance of a drug trafficking crime. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On Sept. 22, 2020, law enforcement officers were conducting patrol when they observed Hankerson, who appeared to be sleeping in the driver’s seat of a running vehicle. As the officers approached Hankerson, he jumped up in his seat and began shuffling around the front center area of the vehicle. The officers then observed a prescription pill bottle with no label containing an unknown substance in the front center cup holder. The officers searched the vehicle and recovered the following: one .223 caliber Bushmaster Carbon-15 semi-automatic rifle loaded with a high capacity magazine that contained 26 rounds of .223 caliber ammunition; one magazine loaded with 10 rounds of .40 caliber ammunition; 317 oxycodone pills; and one bag containing marijuana. The officers also recovered $542.75 from Hankerson.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.
This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division; and members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara, with the investigation leading to the charges and arrest.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations against the defendant are merely accusations, and he is presumed innocent unless and until proven guilty.
Eleven Defendants Charged with Murder in Indian CountryRead the Press Release
A federal grand jury in the Eastern District of Oklahoma has returned separate indictments charging 11 defendants with murder and other various violent crimes arising out of Indian Country.
Over the course of a three-day grand jury session in the U.S. District Court for the Eastern District of Oklahoma, trial attorneys with the Justice Department’s Organized Crime and Gang Section, working with and in support of the U.S. Attorney’s Office for the Eastern District of Oklahoma, obtained the indictments charging the 11 defendants. These indictments followed the reversal or dismissal of state cases as a result of the U.S. Supreme Court’s decision in McGirt v. Oklahoma.
In July 2020, the U.S. Supreme Court determined in McGirt v. Oklahoma that the historical boundaries of the Muscogee (Creek) Nation were never disestablished by Congress and therefore that the State of Oklahoma did not have jurisdiction to prosecute Jimcy McGirt for first degree rape and other state crimes. On March 11, the Oklahoma Court of Criminal Appeals ruled that the Cherokee reservation and the Chickasaw reservation were likewise never disestablished. Similar rulings affecting the Seminole and Choctaw reservations were issued by the Oklahoma Court of Criminal Appeals on April 1. As a result of these decisions, the United States has primary federal jurisdiction to prosecute major crimes committed by—or against—Native Americans occurring within the 26 counties of the Eastern District of Oklahoma.
The following indictments were returned by the federal grand jury and filed in the U.S. District Court for the Eastern District of Oklahoma:
United States v. Gregory Gamblin – Murder in Indian Country.
United States v. Gunnar Mathew Hemingway – Murder in Indian Country; using, carrying, and discharging a firearm during and in relation to a crime of violence; causing the death of a person.
United States v. Cody Nash James –Murder in Indian Country; causing the death of a person.
United States v. Brian Mack – Murder in Indian Country.
United States v. Robert Mitchell – Murder in Indian Country.
United States v. Clifton Parish – Murder in Indian Country; kidnapping resulting in death in Indian Country.
United States v. Jeffrey Pierce – Murder in Indian Country.
United States v. Tyas Short – Second degree murder in Indian Country; using, carrying, and discharging a firearm during and in relation to a crime of violence; causing the death of a person.
United State v. Devin Sizemore – Murder in Indian Country; second degree murder in Indian Country; voluntary manslaughter in Indian Country; child abuse in Indian Country; assault resulting in serious bodily injury in Indian Country; and assault on a police officer in Indian Country
United States v. John Duncan Stubbs – Murder in Indian Country; using, carrying, and discharging a firearm during and in relation to a crime of violence; causing the death of a person.
United States v. Johnson Wisdom – Murder in Indian Country.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma; and Special Agent in Charge Melissa R. Godbold of the FBI’s Oklahoma City Field Office made the announcement.
The FBI is investigating the cases.
Trial Attorneys Gerald Collins, Rebecca Dunnan, Alex Gottfried, Lisa Man, Matthew Mattis, Christina Taylor, Christopher Taylor, and Kristen Taylor of the Criminal Division’s Organized Crime and Gangs Section are prosecuting the cases with the U.S. Attorney’s Office for the Eastern District of Oklahoma.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Doctor Sentenced to 38 Months for Unlawful Drug Distribution and Identity TheftRead the Press Release
ALBANY, NEW YORK – Scott McMahon, age 52, of Clifton Park, New York, was sentenced today to 38 months in prison for distributing controlled substances outside the course of professional practice and for no legitimate medical purpose, and to misusing personal information in the course of fraudulently obtaining controlled substances.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
Senior United States District Judge Thomas J. McAvoy also ordered McMahon to forfeit $6,774.76, and to serve a 3-year term of supervised release.
Today, McMahon also agreed to surrender his New York State medical license, as well as his DEA registration that had allowed him to prescribe controlled substances. McMahon has been in custody since September 10, 2020.
In 2019, McMahon had a medical practice in Clifton Park, having previously maintained offices in Albany and other locations in the Capital Region. He specialized in psychiatry and addiction treatment.
In pleading guilty, McMahon admitted that from at least December 2018 through August 2019, he provided certain patients with prescriptions for the Schedule II controlled substance methylphenidate – the generic of Ritalin – with the intent of having them kick back a portion of each prescription to him for his own personal use. As part of the scheme, McMahon obtained the names and birthdates of the children of a patient. McMahon used that information to issue methylphenidate prescriptions in the children’s names. The patient picked up these prescriptions in his children’s names, and split the methylphenidate with McMahon.
In a separate civil case brought by the United States, McMahon agreed to pay $43,225.24 to settle claims arising from his improper prescribing of ketamine and failure to keep proper records of ketamine treatment.
In the civil case, McMahon admitted that he improperly prescribed ketamine intranasal spray to an individual who had no legitimate medical need for it. A sampling of McMahon’s records showed that he failed to record the amount of ketamine injected for each patient on each treatment date, the name of each patient who was injected, and the person who injected the ketamine. McMahon also failed to conduct an initial inventory when he began dispensing ketamine.
The criminal case was investigated by the DEA Albany District Office’s Tactical Diversion Squad and its Capital District Drug Enforcement Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
The DEA Tactical Diversion Squad also investigated the civil case, in which Assistant U.S. Attorney Christopher R. Moran represented the United States.
Also assisting in the investigations were the New York State Police, the New York State Bureau of Narcotic Enforcement, and the DEA Resident Office in Burlington, Vermont.
Deputy U.S. Marshal Charged with Cyberstalking and PerjuryRead the Press Release
A federal grand jury in the Central District of California returned an indictment Wednesday charging a Deputy U.S. Marshal with conspiracy to commit cyberstalking, cyberstalking, and perjury.
According to the indictment, Ian R. Diaz, 43, of Brea, California, who serves as a Deputy U.S. Marshal with the U.S. Marshals Service, along with his former wife, who is alleged to be an unindicted co-conspirator, agreed to and did pose as a person with whom Diaz was formerly in a relationship (Jane Doe) and, in that guise, sent to themselves harassing and threatening electronic communications that contained apparent threats to harm Diaz’s former wife; solicited and lured men found through Craigslist “personal” advertisements to engage in so-called “rape fantasies” in an attempt to stage a purported sexual assault on Diaz’s former wife; and staged one or more hoax sexual assaults and attempted sexual assaults on Diaz’s former wife. Diaz and his then-wife then reported this conduct to local law enforcement, falsely claiming that Jane Doe posed a genuine and serious threat to Diaz and his then-wife, and thereby caused local law enforcement to arrest, charge, and ultimately detain Jane Doe in jail for nearly three months for conduct for which they framed her and in fact perpetrated themselves.
According to the indictment, Diaz and his former wife also allegedly took steps to conceal their conduct, including using falsely registered email accounts, using virtual private networks to access the internet anonymously, and communicating with each another using encrypted messaging services.
Diaz is charged with one count of conspiracy to commit cyberstalking, one count of cyberstalking, and one count of perjury for his false testimony in a deposition in connection with a federal civil lawsuit brought by Jane Doe. The defendant was arrested Thursday and made his initial court appearance before U.S. Magistrate Judge Douglas F. McCormick of the U.S. District Court for the Central District of California, Southern Division. If convicted, he faces a maximum penalty of five years in prison on each of the counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General Cyber Investigations Office made the announcement.
The Department of Justice Office of the Inspector General is investigating the case.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dentists to Pay $3.1 Million to Resolve Allegations They Submitted False Claims for Services Not Provided to Underprivileged ChildrenRead the Press Release
Two North Texas dentists, their dental management companies, and certain affiliated pediatric dental practices have paid the United States $3.1 million to resolve allegations that they defrauded the Texas Medicaid program and violated the False Claims Act by knowingly billing for pediatric dental services that were not rendered or that falsely identified the person who provided the service, announced Acting U.S. Attorney Prerak Shah of the Northern District of Texas.
“These defendants knowingly defrauded Medicaid, a program that provides medical coverage for more than 4 million low-income Texans,” said Acting U.S. Attorney Shah. “If they thought they could get away with this scam by targeting underprivileged populations, they were sorely mistaken.”
Drs. Gunjan Dhir, 43, and Gaurav Puri, also 43, have owned and operated dental clinics and dental management companies throughout Texas since 2009. The clinics serve primarily low-income children enrolled in the Texas Medicaid program; the dental management companies provide management and administrative services to the clinics. After opening their first dental clinic in 2009, Drs. Dhir and Puri rapidly expanded their operation to include 35 dental clinics operating statewide by 2015.
This settlement resolves allegations that between May 30, 2011 and May 30, 2017, Drs. Dhir, Puri, and their affiliated management companies and pediatric dental clinics submitted or caused the submission of false claims for payment to the Texas Medicaid Program for fillings in children that were not actually performed. The settlement also resolves allegations that they submitted or caused the submission of claims using erroneous Medicaid provider numbers misrepresenting the dentists who performed pediatric procedures.
Funded jointly by the states and the federal government, Medicaid is intended to serve low-income families and children. The State of Texas paid for part of the Medicaid claims at issue and will receive approximately half of the government’s share of the settlement amount.
Part of the allegations resolved by this settlement were originally filed under the qui tam, or whistleblower, provisions of the False Claims Act by relators Sandy Puga, Nelda Torres-Brown, and Sonia Cardoso, all former employees of the implicated dental management companies and/or pediatric dental practices, who will receive a fraction of the settlement. (The Act permits private persons with evidence of fraud to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.)
The case was handled for the government by Assistant U.S. Attorneys Kenneth Coffin and Braden Civins on behalf of the Department of Health & Human Services Office of Inspector General and the State of Texas, with assistance from the Texas Attorney General’s Office, Civil Medicaid Fraud Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.Customs officer admits to helping undocumented nanny enter the countryRead the Press Release
LAREDO, Texas – A 40-year-old Laredo woman has entered a guilty plea to conspiracy to encourage or induce a foreign national to enter the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Walker was a Customs and Border Protection (CBP) officer at the time of the offense.
On Jan. 2, she improperly used another officer’s computer login information to help the Mexican woman enter the United States through the Laredo Port of Entry, scanning her immigration documents before entry. The woman had no legal status to reside or work in the United States. However, Walker intended for the woman to illegally enter the country and work for her as a housekeeper and nanny.
Walker also lied to authorities. She falsely stated Trevino was her biological aunt and denied processing her entry or employing her in her home.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 9. At that time, Walker faces up to 10 years in prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Connecticut Man Pleads Guilty to Stolen Firearms Offenses and Making False StatementsRead the Press Release
BOSTON – A Connecticut man pleaded guilty yesterday in federal court in Springfield to a variety of charges in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents.
Christian Castro, 31, of New Britain, Conn., pleaded guilty to one count each of theft of firearm from a Federal Firearms Licensee; being a felon in possession of firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 23, 2021
In September 2020, Castro was charged by criminal complaint with co-defendant Fernando Rivera, who pleaded guilty on May 5, 2021 and is pending sentencing.
Castro was a felon on state probation for two prior convictions in Connecticut for larceny and possessing narcotics with intent to distribute. Shortly after midnight on or about Aug. 29, 2020, Castro and Rivera engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts or attempted thefts and culminated in the theft of 17 firearms from a federal firearms licensee in West Springfield, Mass.
On Sept. 18, 2020, federal agents arrested Rivera and Castro at their homes in Connecticut. During interviews with investigators Castro admitted that he drove to and from several ATM robberies and the gun store robbery, but falsely stated he never received, kept or even touched any of the stolen guns.
During a search of Rivera’s phone investigators identified several photographs and videos depicting Rivera (and Castro in one instance) with many of the stolen firearms. A forensic extraction of the defendants’ phones allegedly revealed communications indicating that on Sept. 4, 2020, Rivera discovered that he was a suspect in the thefts and then traveled with Castro to New York to sell at least three of the firearms.
The firearms charges each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of making false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Co-Defendants Plead Guilty in Southwest Georgia Drug Trafficking CaseRead the Press Release
ALBANY, Ga. – Multiple co-defendants involved in a high-volume drug trafficking operation located in a southwest Georgia city have pleaded guilty to their crimes in federal court this week.
On Thursday, May 13, James Malone, 51, of Albany, pleaded guilty to distribution of methamphetamine. Malone faces a maximum sentence of life in prison and a $10,000,000 fine. Laura Ann Dungee-Ali, 49, of Albany, pleaded guilty to maintaining a drug-involved premises. Dungee-Ali faces a maximum sentence of twenty years in prison and a $1,000,000 fine. William Cook, 46, of Albany, pleaded guilty to possession with intent to distribute hydrocodone. Cook faces a maximum sentence of twenty years in prison and a $1,000,000 fine.
On Wednesday, May 12, Patricia Odom, 50, of Albany, pleaded guilty to possession with intent to distribute methamphetamine. Odom faces a maximum sentence of twenty years in prison and a $1,000,000 fine.
On Tuesday, May 11, Sherrod Winchester, 39, of Albany, pleaded guilty to conspiring to distribute controlled substances. Winchester faces a maximum sentence of life in prison and a maximum $10,000,000 fine.
Previously, Shannon Marie Mason, 39, of Leesburg, Georgia, pleaded guilty to distribution of methamphetamine. If convicted, Mason faces a maximum sentence of life in prison and a $10,000,000 fine. Anthony Dewayne Pearson, 42, of Sylvester, Georgia, pleaded guilty to conspiracy to possess with intent to distribute hydrocodone. Pearson faces a maximum sentence of twenty years in prison and a $1,000,000 fine.
The hearings were presided over by U.S. District Judge Leslie Gardner.
According to court documents, in 2019, Albany-Dougherty Drug Unit (ADDU) detectives identified defendants Malone and Winchester as significant distributors of methamphetamine and heroin. As a result, GBI, DEA and FBI initiated a joint investigation into the distribution of controlled substances at 520 9th Avenue, Albany, Georgia. The location was an open-air drug market run by Malone and Winchester, dispensing diverted pharmaceutical medications, heroin, methamphetamine, cocaine and other controlled substances. On a daily basis, the location maintained a large volume of foot and vehicle traffic, approximately twenty cars or more, with the visits lasting no more than a few minutes. Customers would approach a covered shelter to acquire illegal drugs, in a manner similar to a drive-thru window at a fast-food restaurant. Confidential sources were recorded making purchases of these illegal drugs from several of the co-defendants. Co-defendant Mason admitted to transporting large quantities of illegal substances at the behest of Winchester. Mason was taken into custody with more than a kilo of cocaine and more than a kilo of crystal methamphetamine in her vehicle. More than $40,000 in drug proceeds were seized from Malone’s residence.
The case was investigated by the FBI, DEA, GBI and the Albany-Dougherty Drug Unit.
Assistant U.S. Attorney Leah McEwen is prosecuting the case.
Cavour Man Indicted on Child Pornography and Enticement ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Cavour, South Dakota, man has been indicted by a federal grand jury for Attempted Production of Child Pornography, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
David Robert Farrell, age 39, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 10, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 22, 2021, Farrell knowingly attempted to employ, use, persuade, induce, entice, and coerce a minor female to engage in sexually explicit conduct for the purpose of producing visual depictions. Such images would be then transported in interstate and foreign commerce with a computer.
The Indictment also alleges that on or about April 27, 2021, Farrell knowingly traveled to engage in sexual conduct with the same minor. Farrell again used his cellular telephone to attempt to knowingly persuade that minor to engage in sexual activity.
Finally, the Indictment alleges that between April 22, 2021, and April 23, 2021, Farrell also used his cellular telephone to transfer and attempt to transfer obscene materials to the minor female, who had not attained the age of 16.
The charges are merely accusations and Farrell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Farrell was released on bond pending trial. A trial date has not been set.
Cattle rustling scheme sends Bozeman man to prisonRead the Press Release
MISSOULA – A Bozeman man accused in a cattle rustling scheme of stealing cattle and embryos while defrauding a bank and a business partner was sentenced today for conviction in the case to 30 months in prison, followed by three years of supervised release and was ordered to pay $450,993 restitution, Acting U.S. Attorney Leif M. Johnson said.
Joshua James Chappa, 45, pleaded guilty on Jan. 21 to conversion of secured property and to wire fraud.
U.S. District Judge Dana L. Christensen presided. Judge Christensen allowed Chappa to self-report to prison.
In court documents filed in the case, the government alleged that Chappa was a ranch manager and worked for Hayes Ranch, LLC, in Wilsall, from 2008 until 2017. Chappa also formed Cold Smoke Cattle, LLC, in 2015. While working for Hayes Ranch, Chappa had access to the cattle, embryos and other items. When the owners were out of the country, Chappa began dealing in cattle, including stealing cattle from the Hayes Ranch and selling them as if they were his own.
The government alleged that in 2015, Chappa signed two security agreements with Northwest Farm Credit Services, PCA, which is a member of the Farm Credit System. Chappa pledged his cattle as collateral. Between 2015 and 2017, Chappa intended to defraud Northwest by selling cattle in which Northwest had a security interest without remitting the proceeds as promised. Chappa defaulted on the loan and Northwest suffered a loss.
The government further alleged that Chappa partnered with Willers Mitten Brand, in Norfolk, Nebraska, in various cattle ventures and failed to remit payment to Willers Mitten Brand when selling the cattle. In a cattle sale at Billings Livestock Commission in January 2017, Chappa requested that payment of $41,262 be made to his company, Cold Smoke Cattle, saying that Willers Mitten Brand had “already signed the brand release for that to happen.” When questioned by Willers Mitten Brand about the payment, Chappa deceived it, ensured he received the full amount and failed to split the proceeds.
The government alleged that between 2015 and 2017, Chappa stole cattle and embryos, and sold cattle in which Northwest Farm Credit Services had a security interest, resulting in a total loss of approximately $481,805.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the FBI and the Montana Department of Livestock.
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Buffalo Man Pleads Guilty to His Role in Three Armed Credit Union RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adrian D. Applewhite a/k/a Boons, 33, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to three counts of aggravated bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that the defendant robbed three credit unions:
• On the morning of October 26, 2017, Applewhite and two other associates robbed the Lakeshore Federal Credit Union on Erie Road in Evans, NY. Applewhite planned the robbery and provided instructions and a firearm to Khalil Holland to assist the robbery. Holland entered the Lakeshore Federal Credit Union wearing a mask and brandishing a semi-automatic pistol while Applewhite waited in a car nearby. Holland approached the teller and demanded money; however, the alarm was activated, and Holland left without taking any money. Holland was arrested shortly thereafter and subsequently convicted by the Erie County District Attorney’s Office. Applewhite also fled the scene but was not apprehended.
• On July 24, 2019, Applewhite entered the South Towns Community Federal Credit Union on South Park Avenue in Lackawanna, NY while co-defendant Ronald Morris, a/k/a Cracks, waited outside. Inside the credit union, Applewhite approached the teller, asked a question, and “cased” the credit union. The next day, on July 25, 2019, Morris and another associate entered the credit union wearing dark colored clothing and face masks and conducted a bank robbery with pepper spray and a pistol while Applewhite, the getaway driver, sat in a car nearby. Morris and the associate traversed the teller’s counter, sprayed the tellers with pepper spray, and went to the unlocked safe. Morris and the associate took $290,500 in United States currency. Applewhite took a share of the proceeds for his role.
• On October 31, 2019, Applewhite entered the Clarence Community and School Federal Credit Union on Sheridan Drive in Clarence, NY. Applewhite approached the teller and asked whether the credit union had an ATM. Applewhite’s sole purpose in entering the credit union was to “case” it and facilitate a future effort by him and his associates to rob it. On November 7, 2019, Morris, and co-defendant Carl Wilson, a/k/a Baby C, armed with a pistol and donning masks and gloves, entered the credit union, and conducted a bank robbery while Applewhite, the getaway driver, sat in a car nearby. Morris and Wilson ordered all the employees to the ground and demanded money. Wilson went behind the teller line and went through teller’s drawers. Morris went to the vault. A total of $148,793.90 in United States currency was taken. The defendant took a share of the proceeds for his role.
Carl Wilson was previously convicted and is awaiting sentencing. Charges remain pending against Ronald Morris. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the New York State Police, under the direction of Major James Hall; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Lackawanna Police Department, under the direction of Chief Mark Packard; the Evans Police Department, under the direction of Chief Douglas J. Czora; the Tonawanda Police Department, under the direction of Chief James P. Stauffiger; and the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing will be scheduled at a later date.
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Brooklyn Man Sentenced for Stealing Mail in LiverpoolRead the Press Release
SYRACUSE, NEW YORK – Kevin Ronny Williams, age 24, of Brooklyn, New York, was sentenced yesterday to serve six-months of home detention, followed by three-years supervised release announced Acting United States Attorney Antoinette T. Bacon, Joseph Cronin, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service, and Matthew Modafferi, Special Agent in Charge of the United States Postal Service, Office of Inspector General-Northeast Region. Williams was also ordered to perform 120 hours of community service.
On September 16, 2020, Williams pled guilty to one count of possession with the intent to unlawfully use a United States Postal Service key, and one count of theft of mail.
As part of his guilty plea Williams admitted that on March 5, 2020 into the early morning hours of March 6, 2020, he used a United States Postal Service (“USPS”) arrow key that he obtained from a USPS employee, to open blue mail collection boxes in Liverpool, New York. Williams wore a USPS letter carrier uniform jacket and carried a USPS mail satchel that he obtained from USPS employee Quayshaun Mitchell. Once the mail collection boxes were opened, Williams stole the contents, including 49 pieces of first-class mail. All of the mail was recovered from Williams. The USPS employee, Quayshaun Mitchell, also pled guilty to one count of possession with the intent to unlawfully use a United States Postal Service key, and one count of theft of mail. Mitchell will be sentenced on August 11, 2021.
This case was investigated by the United States Postal Inspection Service (USPIS) and the United States Postal Service-Office of Inspector General (USPS-OIG), and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
Boston-Area Real Estate Developer Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Tewksbury real estate developer pleaded guilty yesterday in federal court in Boston to defrauding the government of more than $480,000 by engaging in a multi-year tax evasion scheme.
Arnold Martel, 61, pleaded guilty to one count of tax evasion. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for Sept. 22, 2021. Martel was charged on April 9, 2021.
For tax years 2014 through 2017, Martel personally received more than $1.2 million in payments for upgrades to condominiums his company sold. Martel deposited the payments into his personal accounts or cashed them, but did not report this income on this tax returns.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Martel is also required to pay restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and David Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Boone County Woman Pleads Guilty to Federal Methamphetamine ChargeRead the Press Release
CHARLESTON, W.Va. – A Boone County woman pleaded guilty today to a federal methamphetamine charge.
According to court documents, Sherri Hill, 57, admitted that she possessed more than 100 grams of methamphetamine on June 25, 2020, on U.S. 119 in Boone County. Law enforcement officers stopped Hill shortly after she purchased the methamphetamine. Hill was subsequently interviewed and admitted to having dealt methamphetamine for several years throughout the state.
Hill pleaded guilty to possession with intent to distribute methamphetamine and faces a minimum of 5 years and up to 40 years in prison when she is sentenced on August 18, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the West Virginia State Police and the DEA. Assistant United States Attorney L. Alexander Hamner is prosecuting the case.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-0194.
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Baltimore Man Facing Federal Indictment for Using Female Aliases on Social Media and Messaging Applications to Entice Boys to Send Him Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Matthew K. Walsh, age 23, of Baltimore, Maryland, for the federal charges of sexual exploitation of a minor; coercion and enticement of a minor to engage in sexually explicit conduct; and receipt of child pornography. The indictment was returned on May 12, 2021, and unsealed today upon Walsh’s arrest. Walsh had an initial appearance today in U.S. District Court in Baltimore before U.S. Magistrate Judge Boardman. Walsh consented to detention pending a detention hearing which will be held on May 20, 2021 at 11:30 a.m.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the six-count indictment, beginning no later than November 2019, Walsh used text messaging, an internet-based social media company, and a messaging application for mobile devices to meet and communicate online with minor males. The indictment alleges that Walsh often posed as a female in these communications, using the aliases “Linamarie” or “Mariel” on social media and “lslow6_5” on the messaging application. Walsh allegedly used his online female aliases to cause and attempt to cause minor males to produce sexually explicit images of themselves and send those images to Walsh.
Specifically, the indictment alleges that from November 4, 2019 through December 23, 2020, Walsh, using his online female aliases, enticed and coerced Victim 1, who was a 14 to 15-year-old minor male, to produce a series of sexually explicit visual depictions of Victim 1, including several video files, which Victim 1 sent to Walsh. Further, the indictment alleges that from March 8, 2020 through March 12, 2020, Walsh, using his online female aliases, enticed and coerced Victim 2, a 15-year-old minor male, to produce a series of sexually explicit visual depictions of himself, which he sent to Walsh.
If you believe you or a loved one was a victim of Walsh please contact the FBI Baltimore Field Office at (410) 265-8080.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
If convicted, Walsh faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for each of two counts of sexual exploitation of a minor; a maximum sentence of life in federal prison for each of two counts of enticement and coercion of a minor to engage in sexually explicit conduct; and a mandatory minimum of five years in federal prison and a maximum sentence of 20 years for each of two counts of receipt of child pornography. 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.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Armed Career Criminal Sentenced to 200 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an Armed Career Criminal to 200 months in prison, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Abdul K. Kallon sentenced Preston Chyenne Johnson, 38, for being a felon in possession of a firearm. Johnson, who was prohibited from having a firearm because of prior felony convictions, unlawfully possessed an Anderson AM-15 5.56mm rifle on October 31, 2019. Johnson pleaded guilty to the charge in January.
ATF investigated the case along with the Alabama Law Enforcement Agency and several other local law enforcement agencies. Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted the case.