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Tuesday 23 March 2021
Tioga County Man Sentenced to 124 Months for Attempted Online Enticement of a MinorRead the Press Release
SYRACUSE, NEW YORK - Jacob Gorman, age 39, of Waverly, New York, was sentenced today to serve 124 months in federal prison for attempted online enticement of a minor, announced Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previous guilty plea Gorman admitted that between August 11, 2020 and August 27, 2020, he exchanged text messages with an undercover officer he believed was the mother of a 9 year old girl. In those messages, Gorman expressed an interest in meeting the child and engaging in sex acts with her. Gorman negotiated a price he was willing to pay to engage in sex acts with the child and on August 27, 2020, drove to a pre-determined location in Broome County to meet and have sex with the child. Gorman was then encountered by law enforcement and arrested.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Gorman is released from prison, and ordered Gorman to pay a $100 special assessment. As a result of his conviction, Gorman will be required to register as a sex offender upon his release from prison.
Gorman’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Indicted in Bribery Scheme Related to U.S. Military Contracts in AlaskaRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Wilson announced that Ryan Dalbec, 42, Raihana Nadem, a/k/a/ Raihana Dalbec, 27, of Virginia, and Brian Lowell Nash II, 30, of Washington, have been charged in a 26 count indictment with conspiracy, bribery, and money laundering involving millions of dollars’ worth of U.S. military contracts in Alaska.
According to the indictment, Ryan and Raihana Dalbec owned and managed Best Choice Construction, LLC (Best Choice), a federal government contractor that provided construction and other services. Through Best Choice, the Dalbecs bid on and were awarded multiple U.S. military construction contracts throughout Alaska.
From March through November 2019, Ryan and Raihana Dalbec allegedly paid and promised Nash, an enlisted Contract Specialist in the U.S. Air Force assigned to Joint Base Elmendorf-Richardson (JBER), over $460,000 in bribes. In exchange, Nash allegedly supplied the Dalbecs with confidential, non-public bidding information that helped Best Choice win numerous Alaska military contracts, including a construction contract related to the F-35 aircraft program at Eielson Air Force Base and contracts to perform construction and related services at JBER. The indictment also alleges the defendants committed multiple overt acts in furtherance of the bribery conspiracy. Additionally, between March and October 2019, the Dalbecs and Nash are alleged to have laundered payments and proceeds from the bribery scheme to conceal their unlawful activities.
If convicted, each defendant faces up to 20 years in prison and a $500,000 fine for the most serious charges in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and the Air Force Office of Special Investigations (AFOSI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Three Defendants Charged in $1.6 Million Covid-19 Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, New York Division, Federal Bureau of Investigation (“FBI”) and Amaleka McCall-Brathwaite, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), announced today the unsealing of a complaint charging ALICIA AYERS, ANDREA AYERS, and TRACI PROCTOR with conspiracy to commit wire fraud, wire fraud, false statements, and aggravated identity theft in connection with a scheme to defraud the U.S. Small Business Administration (“SBA”), resulting in a loss to the SBA of more than $1.6 million. All three defendants were arrested this morning. ALICIA AYERS and ANDREA AYERS will be presented this afternoon before United States Magistrate Judge Judith C. McCarthy. TRACI PROCTOR will be presented in United States District Court for the Northern District of Georgia.
U.S. Attorney Audrey Strauss said: “As alleged, the defendants schemed to defraud the SBA by submitting disaster loan and grant applications for non-existent businesses. In so doing, they stole funds intended for the many small businesses that are struggling as a result of the COVID-19 pandemic. We thank the FBI and SBA-OIG for their partnership in investigating the scheme alleged.”
FBI Assistant Director William F. Sweeney Jr. said: “While small businesses throughout the country were clamoring for the economic support they so desperately needed after the first quarter of the pandemic, those charged today allegedly saw the SBA’s Economic Injury Disaster Loan Program as nothing more than an opportunity to turn a quick profit. As alleged, Ayers, Ayers, and Proctor filed more than 300 online applications on behalf of others that included false information to support their claims. This resulted in nearly $1.7 million worth of payments from the SBA, a portion of which the defendants received in the form of kickbacks. No matter how creative the scheme is, rest assured those who siphon money from taxpayer funded programs will be aggressively pursued. This investigation remains ongoing, and we ask anyone with information to call us at 1-800-CALL-FBI or reach us online at tips.fbi.gov.”
SBA OIG’s Eastern Region Special Agent-in-Charge Amaleka McCall-Brathwaite said: “Law enforcement will aggressively unmask fraudsters who allegedly hid behind stolen identities to gain access to SBA’s EIDL funds. SBA OIG will aggressively pursue evidence of fraud with its law enforcement partners. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
As alleged in the Complaint:[1]
The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program. In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.
In June and July 2020, ALICIA AYERS, ANDREA AYERS, and TRACI PROCTOR used the identities of approximately 300 other individuals (the “Applicants”) to submit approximately 315 online applications to the SBA, seeking over $3 million of funds through the SBA’s EIDL Program. (the “EIDL Applications”). In connection with the EIDL Applications, ALICIA AYERS, ANDREA AYERS, and PROCTOR falsely represented to the SBA, among other things, that the Applicants were the owners of businesses with ten or more employees. In fact, however, the applications falsely reported the businesses’ numbers of employees, and the vast majority of the purported businesses appear not to have existed at all. Based on the fraudulent EIDL Applications, the SBA made advance payments of approximately $1,690,000 to the Applicants, who often then kicked back a portion of the advance payments to ALICIA AYERS, ANDREA AYERS, and TRACI PROCTOR.
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ALICIA AYERS, 34, and ANDREA AYERS, 54, of Mount Vernon, New York, and TRACI PROCTOR, 47, of Clarkston, Georgia, are charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) wire fraud, which carries a maximum sentence of 2 years in prison, (3) false statements, which carries a maximum sentence of five years in prison, and (4) aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the outstanding work of the FBI and the SBA-OIG.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman and Courtney Heavey are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Swainsboro, Ga., woman admits defrauding government program designed to provide COVID-19 small business reliefRead the Press Release
STATESBORO, GA: An Emanuel County woman has admitted creating a fake business and using it to receive funding from a federal COVID-19 small business relief program.
Tracy Kirkland, 40, of Swainsboro, pled guilty to an Information charging her with Wire Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charge carries a maximum statutory penalty of 30 years in prison and a $1 million fine. As a result of the plea, Kirkland agrees to repay $66,400 and will forfeit a 2019 Dodge Charger and $16,250. After any prison term, Kirkland could be required to spend up to three years on supervised release.
There is no parole in the federal system.
“Congress provided funding under the Coronavirus Aid, Relief and Security (CARES) Act specifically to help financially struggling businesses during the pandemic,” said Acting U.S. Attorney Estes. “Tracy Kirkland stole from those funds, and she is being held accountable for that theft.”
As described in court documents and testimony, in August 2020 Kirkland received a federally guaranteed loan for $66,400 under the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program comprised of funds appropriated by the CARES Act. In applying for the funding, Kirkland falsely claimed to own a business in Swainsboro with three employees, “Kirklands Hair N Beauty,” that had suffered economic harm because of the COVID-19 pandemic.
Soon after receiving the SBA loan proceeds into her personal account, Kirkland, a previously convicted felon, used the funds to purchase a 2019 Dodge Charger R/T; made large cash withdrawals from her bank account; and made other non-business-related purchases.
SBA’s General Counsel Peggy Delinois Hamilton stated, “We commend the work of the U.S. Attorney in prosecuting this case, involving SBA’s EIDL Program, which is designed to provide much-needed economic relief to small businesses that are greatly affected by the current pandemic. Such fraud hurts legitimate small businesses that need financial assistance. We appreciate the work of our Inspector General and other law enforcement partners to uncover and prosecute individuals who commit fraud in the CARES Act loan programs.”
The U.S. Small Business Administration Office of Inspector General is investigating the case with assistance from the Swainsboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with prosecution for the United States by Assistant U.S. Attorneys Steven H. Lee and Asset Recovery Unit Chief Xavier A. Cunningham.
St. Louis man pleads guilty for his role in trafficking ring involving 45 kilograms of methamphetamineRead the Press Release
ST. LOUIS – Nathaniel Hill, 39, of St. Louis, Missouri, pleaded guilty to conspiracy to distribute methamphetamine. Hill appeared, today, before United States District Court Judge Audrey G. Fleissig.
In November 2017 the Federal Bureau of Investigation (FBI) and the United States Postal Inspectors Service (USPIS) initiated an investigation into methamphetamine trafficking led by Hill and involving nine co-defendants. Beginning in or about May 2017, Hill and a co-defendant purchased kilogram quantities of methamphetamine from a San Diego source of supply. Initially, Hill arranged for packages of methamphetamine to be sent to St. Louis through the mail. Two of those packages were intercepted by law enforcement: one containing 1.336 kilograms on August 7, 2017; and, one containing 4.4 kilograms on April 9, 2018.
Investigators also applied for and received authorization to wiretap Hill’s cellular telephone. On the wiretap, investigators heard Hill talk to co-conspirators regarding methamphetamine shipments, proceeds, and methods of transportation. The conspirators traveled between San Diego and St. Louis and used hotel rooms and rental cars to facilitate and hide their activities from law enforcement.
During the investigation, a confidential source made several controlled purchases of methamphetamine directly from Hill including 450 grams on December 12, 2017, 223 grams on January 18, 2018, and 224 grams on February 28, 2018.
On June 13, 2018, Hill was present at his residence in the 11000 block of Cadigan expecting a large shipment of methamphetamine. Agents executed a search warrant where they seized 25.064 kilograms of methamphetamine. Investigators also seized multiple firearms, $29,850 in cash, multiple items of jewelry and a BMW sedan, all of which were either derived from proceeds of the sale of methamphetamine or possessed in furtherance of the drug activity.
Based on the intercepted packages, the controlled purchases, the seizures on June 13, 2013, the intercepted calls and other evidence gathered by law enforcement, Hill admitted being responsible for at least 45 kilograms of methamphetamine and consented to the forfeiture of various assets seized by agents.
Judge Fleissig has set sentencing for June 29, 2021.
The St. Louis County Police Department, Federal Bureau of Investigation and United States Postal Inspection Service investigated the case.
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Spartanburg Felon Sentenced to 15 Years in Federal Prison for Unlawful Gun PossessionRead the Press Release
Greenville, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Jerrod Dupree Lyman, Jr., 30, of Spartanburg, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented in court established that on August 8, 2019, members of the Spartanburg County Sheriff’s Office were looking for Lyman on outstanding warrants. Deputies observed Lyman come out of a residence in Inman and flee into the woods. During the chase, deputies observed Lyman carrying a backpack and gave him several commands. Lyman dropped the backpack but continued to flee. Lyman was eventually taken into custody. The recovered backpack contained two loaded 9mm pistols. Lyman was also in possession of a quantity of methamphetamine. Due to prior convictions for domestic violence and multiple drug offenses, Lyman is prohibited from possessing firearms and ammunition. Based on his prior record, the Court sentenced Lyman as an Armed Career Criminal.
United States District Court Judge Timothy M. Cain imposed a sentence of 180 months in federal prison to be followed by 60 months of supervised release. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Max Cauthen prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Seven Individuals Indicted and Arrested on Wire Fraud Charges in Relation to A Scheme to Defraud the Municipality of MayagüezRead the Press Release
SAN JUAN, PUERTO RICO – On March 22, 2021, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging seven individuals with thirty-three counts of wire fraud and money laundering. W. Stephen Muldrow, United States Attorney, District of Puerto Rico and Tyler R. Hatcher, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Rafael Riviere-Vázquez, Special Agent in Charge of the FBI, San Juan Field Office, made the announcement.
“The defendants charged in this conspiracy were trusted to invest public money for the benefit of the municipality of Mayagüez and the western area, but instead they used part of it for personal gain and expenses, defrauding the government,” said U.S. Attorney Muldrow. “We will continue to focus on these types of fraud schemes and work with our law enforcement partners to bring the defendants to justice.”
Acting Special Agent in Charge Tyler R. Hatcher, of IRS Criminal Investigation, Miami Field Office, said: “Persons in a position of trust that use public monies to perpetrate fraud for personal enrichment betray the trust of the citizens they are supposed to serve. These funds were designated to improve the quality of life of the citizens for a region of Puerto Rico and this fraud will not go unpunished. We are all responsible for complying with laws, regardless of position of influence. IRS Criminal Investigation along with our law enforcement partners will continue our collective efforts to enforce the law and foster public trust.”
“The FBI is committed to fight fraud at every level. This case is the result of patient, detail-oriented, hard work. I'd like to thank our dedicated team as well as our IRS partners for their continued support to the FBI mission,” said Rafael Riviere-Vázquez, Special Agent in Charge of the FBI, San Juan Field Office.
The indictment alleges that from March 2016 to June 2018, defendants Eugenio García-Jiménez, a.k.a. “Gino”; Stephen Kirkland, a.k.a. “Steve”; Steve Minger; Alejandro Riera-Fernández; Joseph Kirkland; Arnaldo J. Irizarry-Irizarry; and Roberto Mejill Tellado orchestrated a scheme to defraud the municipality of Mayagüez and Mayagüez Economic Development Inc. (hereinafter “MEDI”) of monies belonging to Mayagüez, by falsely representing that the totality of $9,000,000 in principal belonging to Mayagüez and entrusted to MEDI for investment was in fact invested and yielding a significant rate of return. MEDI is a domestic for-profit public corporation created with the purpose of promoting the economic development of Mayagüez and the western region of Puerto Rico, creating jobs, supporting infrastructure projects, and improving the quality of life of citizens. The defendants transferred, distributed, and spent the money in ways inconsistent with the representations made to Mayagüez and MEDI about the investment of the money, to include purchases of: a marine vessel, jewelry, clothing, school tuition, restaurants, utilities, credit card payments, and home décor, as well as real estate improvements (pools, for example) and the payment of home mortgages.
Using multiple shell corporate entities and financial accounts, defendants collectively received hundreds of thousands of dollars belonging to Mayagüez, intended for investment, which defendants then used for personal expenses and purchases of personal and real property. The use of shell corporate entities further served to conceal the scheme to defraud Mayagüez and MEDI and allowed defendants to lull Mayagüez and MEDI into believing that the nine million dollars was invested as falsely represented by defendants. Of the nine million dollars obtained from the municipality through material misrepresentations, the defendants only returned $1,800,000 to Mayagüez and in doing so, falsely represented that the $1,800,000 was a return on investment.
If found guilty, the defendants face a maximum statutory sentence of up to 20 years in prison and a fine up to $250,000 for charges relating to wire fraud, and up to 10 years in prison for the money laundering charges.
U.S. Attorney W. Stephen Muldrow commends the investigative efforts of IRS-CI’s Miami Field Office and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Myriam Fernández, Chief of the Asset Recovery and Money Laundering Unit and Seth A. Erbe, Chief of the Financial Fraud and Public Corruption Unit. An indictment contains only charges and is not evidence of guilt. All defendants are presumed to be innocent unless and until proven guilty.
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Serial Fraudster Sentenced to over Three Years in Prison for Scamming Elderly Victims Out of Hundreds of Thousands of Dollars in Fraudulent Payment SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York announced that MICHAEL PIZARRO, a/k/a “Eric Miller,” was sentenced today to 40 months in prison in connection with PIZARRO’s scheme to defraud individuals (the “Victims” ) by representing to them that they had qualified for a government grant, which could only be accessed upon the payment of an up-front refundable application fee. In actuality, the government grant did not exist and none of the Victims had been approved for such a grant. PIZARRO pled guilty to a one-count information on August 20, 2019, before United States Magistrate Judge Gabriel W. Gorentstein. Today, United States District Judge Paul A. Crotty accepted PIZARRO’s guilty plea and imposed the sentence.
U.S. Attorney Audrey Strauss said: “Michael Pizarro promised government grants to his victims under the condition they pay an up-front application fee. Regretfully, Pizarro’s victims, many of whom were over 70 years old, eventually discovered that they had fallen prey to a serial fraudster – there were no government grants, and they would not be receiving any funds. Michael Pizarro has now been sentenced to time in federal prison for his brazen fraud.”
According to allegations in the criminal complaint, the information, and other documents filed in federal court, as well as statements made in public court proceedings:
Beginning in at least February 2017 through July 25, 2019, PIZARRO called the Victims, many of whom were more than 70 years old, and told them that his name was “Eric Miller” and that he was calling on behalf of a company named “National Grants.” PIZARRO informed the Victims that they had been approved for a government grant, which was being held in escrow at an account with the “World Bank” in Washington, D.C. Before the funds could be released, however, the Victims would have to pay a registration fee. In fact, none of the Victims had been approved for a grant, the grants did not exist, and no Victim ever received any funds.
In April 2018, PIZARRO was charged in New York Supreme Court in connection with his involvement with National Grants from October 2015 through January 2017. PIZARRO pled guilty to those charges in December 2018 and was awaiting sentencing when he was arrested in connection with this scheme on May 2, 2019. After he was released on bail in connection with the federal charges, PIZARRO continued to seek contact information for additional Victims in furtherance of the scheme. In total, not including the conduct charged in New York Supreme Court, PIZARRO defrauded the Victims out of approximately $270,000.
In addition to his prison sentence, PIZARRO, 38, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay forfeiture and restitution in the amount of $278,853.37.
Ms. Strauss praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations and the New York City Police Department.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher and Benet J. Kearney are in charge of the prosecution.
Serial Bank Robber Sentenced to Almost 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell today sentenced Edward Omar Johnson, age 37, of Baltimore, Maryland to 141 months in federal prison, followed by three years of supervised release, for committing five bank robberies and two attempted bank robberies in Baltimore and York, Pennsylvania, between February 27, 2019, and March 19, 2019. During each robbery, Johnson presented the victim teller with a demand note stating that he had a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Commissioner Michael Muldrow of the York City (Pennsylvania) Police Department.
According to his plea agreement, on February 27, 2019, Johnson robbed a bank in the 400 block of West Baltimore Street in Baltimore and robbed the same bank again on March 12, 2019. On March 4 and March 5, 2019, Johnson unsuccessfully attempted to rob banks in the 300 block of West Baltimore Street and the 2100 block of Eastern Avenue, both in Baltimore. On March 5, 2019, Johnson robbed a bank located in the 2000 block of East Monument Street in Baltimore. On March 12, 2019, Johnson robbed a second bank located in the 1100 block of North Charles Street in Baltimore. Finally, on March 19, 2019, Johnson robbed a bank in the unit block of West Market Street in York, Pennsylvania, throwing the demand note at the teller, then reaching into the victim teller’s cash drawer and stealing $430 in cash. In that robbery, Johnson also inadvertently took a GPS tracker hidden in bait money, which he threw in a nearby dumpster.
On March 14, 2020, the FBI Violent Crimes Task Force issued a media release of the robbery surveillance images captured during the robberies in Maryland. The Baltimore Police Department subsequently received an anonymous tip that the robber was Johnson. Law enforcement obtained prior photos of Johnson which matched the physical appearance of the suspect in the bank robberies. On March 22, 2019, the York City Police Department located and arrested Johnson in York, Pennsylvania. A search of Johnson recovered a bank robbery demand note, the language of which was consistent with the language in the notes used in previous robberies. Johnson waived his rights and during an interview with law enforcement admitted committing the robberies and identified himself in surveillance photos from the robberies. Later investigation revealed the existence of Johnson’s latent fingerprints on the demand notes he left behind after the attempted bank robbery and successful bank robbery on March 5, 2019, and the two March 12, 2019, bank robberies.
Acting United States Attorney Jonathan F. Lenzner praised the FBI, the Baltimore Police Department, and the York City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
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Schenectady Woman Charged with Possession of a Defaced FirearmRead the Press Release
ALBANY, NEW YORK – Nakia Barber, age 46, of Schenectady, New York, was charged by criminal complaint today with unlawfully possessing a defaced firearm. The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The charge filed against Barber alleges that she possessed a defaced Walther P22 .22 caliber pistol on October 30, 2018. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Barber appeared today in Albany before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending further proceedings.
The charge filed against Barber carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and the Schenectady County Sherriff’s Office, and is being prosecuted by Assistant United States Attorney Alexander P. Wentworth-Ping.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download.
Savannah drug dealer faces up to 20 years in prison after guilty pleaRead the Press Release
SAVANNAH, GA: A Chatham County man who admitted to distributing cocaine and marijuana faces up to 20 years in federal prison.
Okemi Mon Lawton, 45, of Savannah, pled guilty in U.S. District Court to Possession with Intent to Distribute Cocaine and Marijuana, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Lawton forfeited $19,640.31 seized during the investigation, and the charge carries a statutory penalty of up to 20 years in federal prison, followed by up to three years of supervised release.
There is no parole in the federal system.
“Supervised release is designed to allow convicted felons a controlled opportunity to reintegrate into society after completion of a prison sentence,” said Acting U.S. Attorney Estes. “Okemi Lawton instead reverted to criminal behavior, and now faces the prospect of more hard time in prison.”
As described in court documents and testimony, Lawton was on supervised release following a prison sentence for a federal firearms charge in August 2018 when the Chatham-Savannah Counter Narcotics Team began investigating suspected drug distribution activity from Lawton’s Savannah residence. With assistance from the FBI, agents documented Lawton’s sale of cocaine, and a subsequent search of the residence discovered drugs, drug manufacturing and packaging materials, nearly $20,000 in cash, and a semi-automatic pistol.
Lawton remains in custody pending sentencing, which has not yet been scheduled.
“After getting a chance to change his criminal behavior, Okemi Mon Lawton chose to continue his life of crime by spreading drugs in our community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now he faces more severe prison time to think about his future, and hopefully doesn’t waste another opportunity to change.”
The case is being investigated by CNT and the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and Noah J. Abrams.
Rochester Man Sentenced to over 21 Years in Prison for Armed Robbery of Cell Phone StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Troy L. McCullough a/k/a Trey, 49, of Rochester, NY, who was convicted of Hobbs Act robbery and brandishing and carrying a firearm during a crime of violence, was sentenced to serve 262 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Robert A. Marangola, who handled the case, stated that on December 3, 2019, the defendant and co-defendants James A. Houston a/k/a Hood, and Raekwon D. Fuqua, and others, robbed at gunpoint the AT&T store located on E. Ridge Road in the Town of Irondequoit. McCullough entered the store wearing a mask and gloves, brandished and pointed a firearm at a store employee while ordering him to open the safe, held the employee at gunpoint while he and defendant Fuqua removed 32 cellular phones from the store safe, and took them out of the store. The cellular telephones were valued at over $32,344. McCullough was arrested shortly after the robbery at a residence on Champlain Street in Rochester, where the stolen phones were recovered.
Co-defendants Fuqua and Houston were previously convicted of Hobbs Act robbery and are awaiting sentencing.
The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; and the Irondequoit Police Department, under the direction of Chief Alan Laird.
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Rochester Man Arrested on Gun Charge After Attempting to Flee from PoliceRead 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 Tyree Sommerville, 24, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Meghan E. Leydecker, who is handling the case, stated that late in the morning on December 6, 2020, Buffalo Police Officers were on routine patrol when they observed a vehicle with Ohio license plates fail to signal 100 feet prior to turning at the intersection of Dartmouth Avenue and Orleans Street. Officers activated their overhead lights and sirens to conduct a traffic stop. The operator of vehicle refused to stop and continued to drive before turning into a lot on Stockbridge Avenue. At that point, three individuals exited the vehicle, including Sommerville, who jumped out of the vehicle and fled from officers on foot. After a foot chase, law enforcement officers apprehended the defendant on Hewitt Avenue. As he was being apprehended, officers recovered a semiautomatic pistol from Sommerville. In July 2014, the defendant was convicted of Criminal Possession of a Weapon in the Second Degree, in New York State Court and as a result is legally prohibited from possessing a firearm.
The defendant was ordered detained this morning following a detention hearing before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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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Rock Springs Cpa Pleads Guilty to Assisting in Preparation of False Federal Income Tax ReturnRead the Press Release
Acting United States Attorney Bob Murray announced today that Paul Edman, age 53 and a Certified Public Accountant, of Rock Springs, Wyoming, pled guilty before U.S. District Court Judge Alan B. Johnson to aiding or assisting in the preparation of a false document filed with the Internal Revenue Service. According to the charges, on or about April 15, 2015, Edman willfully counseled taxpayers in the preparation of Internal Revenue Service Form 1040 for calendar year 2014, knowing the Form 1040 was false.
Edman faces a prison sentence of up to 3 years; up to one year of supervised release, and a fine of up to $100,00.00. Edman is scheduled to be sentenced on June 1, 2021.
This case was investigated by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorney Stephanie I. Sprecher.
Queens Man Indicted for $1.7 Million Paycheck Protection Program FraudRead the Press Release
An indictment was returned in federal court in Brooklyn yesterday charging Gelpys Joel Peralta-Gutierrez with wire fraud conspiracy relating to a fraudulent application for a loan under the United States Small Business Administration (the “SBA”)’s Paycheck Protection Program (“PPP”), which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Peralta-Gutierrez was previously arrested in February 2021 on a criminal complaint and will be arraigned at a later date.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG), announced the charges.
“As alleged, Peralta-Gutierrez claimed falsely that he needed government loan benefits to pay his employees during the pandemic, but instead deliberately lined his own pockets with $1.7 million,” stated Acting United States Attorney Lesko. “This Office will not hesitate to bring the full weight of the law against those who, for personal gain, take advantage of the COVID crisis and unlawfully divert funds from vitally important government relief programs.”
“Peralta, as alleged, took advantage of the Paycheck Protection Program, which was created to provide emergency financial assistance to businesses who need it during the pandemic. While claiming to have 62 employees on his payroll, he received $1.7 million worth of taxpayer-funded relief in support of his claims. According to other business relief applications he filed, however, he had only one employee. The FBI will continue to aggressively pursue those who are using the money from this economic relief program to pad their own pockets. If you know of similar instances of fraud, please call us at 1-800-CALL-FBI,” stated FBI Assistant Director-in-Charge Sweeney.
“Lying to gain access to economic stimulus funds will be met with justice,” stated SBA-OIG Special Agent-in-Charge McCall-Brathwaite. “SBA-OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
As set forth in court filings, in June 2020, Peralta-Gutierrez arranged for a PPP loan application to be submitted on behalf of his company, J Films HD Inc., claiming that he employed 62 employees with a total monthly payroll of nearly $700,000. Based on these representations, Peralta-Gutierrez’s business was granted a loan in excess of $1.7 million. The location that Peralta-Gutierrez submitted as his business address, however, was a New York City Housing Authority apartment at the Queensbridge Houses. In applications Peralta-Gutierrez submitted for other business relief, he acknowledged that, in reality, his business had only one employee, and total revenues of approximately $50,000.The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, he faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.
The Defendant:
GELPYS JOEL PERALTA-GUTIERREZ (also known as “Joel Peralta”)
Age: 31
Long Island City, New YorkE.D.N.Y. Docket No. 21-CR-149 (DG)
Postal Clerk Sentenced for Stealing from CustomersRead the Press Release
SAN DIEGO – U.S. Postal Service employee Esteban Sanchez was sentenced in federal court today to time served and ordered to pay $20,153.23 in restitution for stealing money orders from 21 post office customers.
Sanchez pleaded guilty on November 3, 2020 to Theft of Mail by Postal Employee. The stolen money was often needed to pay the customers’ rent and other essentials.
The defendant was a clerk at the Encanto, Southeastern and Andrew Jackson post offices in San Diego. Beginning in February 2019 and continuing through May 2019, Sanchez stole approximately 31 money orders from customers who purchased them from him at the Encanto and Southeastern Offices.
The customers put the money orders in envelopes and provided them to Sanchez for him to mail. Instead of mailing the money orders, Sanchez set them aside and after the customers left, he cashed the money orders and pocketed the money.
In April and May 2019, two customers filed complaints at the post office stations where Sanchez worked. The customers reported that the money orders that they’d purchased and mailed were never delivered to the intended recipients. Agents for the U.S. Postal Service, Office of Inspector General (USPS OIG) conducted an investigation and data analysis and determined that Sanchez cashed at least 31 money orders, from 21 different customers, totaling $20,153.23. Some of the thefts were captured on video surveillance from inside the Post Office.
All of the victims of Sanchez’s thefts have been reimbursed by the United States Postal Service.
"Customers trust the post office with important business, and we are going to keep it that way," said Acting U.S. Attorney Randy Grossman. "In the rare case where a postal employee is unworthy of that trust, we will step in and make it right." Grossman praised prosecutor Andrew Sherwood and U.S. Postal Service investigators for their excellent work on this case.
"The majority of Postal Service employees are hardworking and honest people. On the rare occasion that an employee betrays that trust, the U.S. Postal Service Office of Inspector General will aggressively pursue the actions and allegations of theft. I want to stress that we are committed to preserving the integrity of the U.S. Mail and U.S. Postal Service resources," said Special Agent in Charge Brian Washington, with the U.S. Postal Service Office of Inspector General.
To report fraud, waste, and misconduct to the U.S. Postal Service Office of Inspector General, please visit www.uspsoig.gov/hotline or send your complaint to ATTN: HOTLINE, USPS OIG, 1735 North Lynn Street, Arlington, VA 22209-2020.
DEFENDANT Criminal Case No. 21-CR-02453-GPC
Esteban Sanchez Age: 26 San Diego, CA
SUMMARY OF CHARGE
Theft of Mail by Postal Employee (Felony) – Title 18, U.S.C., Section 1709
Maximum penalty: Five years in prison; $250,000 fine
INVESTIGATING AGENCY
United States Postal Service, Office of Inspector General
Pittsburgh Woman Charged with Drugs and Firearms OffensesRead the Press Release
PITTSBURGH, PA. - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute a quantity of cocaine and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Monique Matthews, 25, of Pittsburgh, PA 15208, as the sole defendant.
According to the Indictment, on or about February 25, 2021, Matthews was found to be in possession of cocaine and a firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant is currently being detained at Allegheny County Jail.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Indicted on Drug ChargeRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Quenton McCoy, age 35, formerly of Pittsburgh, Pennsylvania 15210, as the sole defendant.
According to the Indictment, on or about February 14, 2021, McCoy possessed with intent to distribute a quantity of heroin and fentanyl.
The law provides for a maximum total sentence of not more than 30 years’ imprisonment and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Penn Hills Police Department and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Admits Role in Heroin Trafficking OrganizationRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Doron McCarthy, 29, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that McCarthy conspired to distribute and possessed with intent to distribute heroin from September of 2018 through October of 2019. In 2018, the Federal Bureau of Investigation began investigation a heroin trafficking organization operating throughout the greater Pittsburgh area of which McCarthy was a member. Beginning in February of 2019 and continuing through September of 2019, the FBI initiated a Title III wiretap investigation into the organization. McCarthy was intercepted communicating with his codefendants about acquiring quantities of heroin, prices of heroin, and the purity of the heroin. Through extensive physical and electronic surveillance, McCarthy was observed meeting with his co-conspirators to conduct heroin transactions.
Judge Stickman scheduled sentencing for May 4, 2021. The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police conducted the investigation leading to the prosecution of McCarthy.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Sentenced to 14 Years in Prison for Gun TraffickingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mario Ramirez, 33, of Philadelphia, PA, was sentenced to 14 years in prison, and three years of supervised release by United States District Judge Gene E.K. Pratter for trafficking weapons, conspiracy, and being a felon in possession of firearms as part of his family’s firearms trafficking ‘business’ in Philadelphia. The defendant committed these crimes while under the supervision of the Commonwealth of Pennsylvania for a prior gun offense.
In March 2020, the defendant pleaded guilty to all charged offenses in two separate Indictments. First, in January 2019, the defendant was charged with being a felon in possession of firearms stemming from the recovery of four of the defendant’s firearms which he had stored in his mother’s home in Philadelphia. Then in October 2019, the defendant was charged with conspiracy to deal in firearms without a license, dealing in firearms without a license, and being a felon in possession of firearms, all stemming from a law enforcement operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in the fall of 2018. During the operation, ATF purchased 35 firearms, including machinegun conversion kits and 11 self-made, non-serialized firearms, in eight transactions from the defendant, who conspired with co-defendant Matthew “Montana” Stephens who had brokered the sales and received a percentage of each sale as a fee.
On March 4, 2021, the defendant’s sister, Elena Ramirez, was sentenced to three years in prison for trafficking firearms and ammunition – sales which were also brokered with the assistance of Stephens.
“Mario Ramirez added to the chaos and carnage on the streets of our city by illegally selling firearms,” said Acting U.S. Attorney Williams. “When he was arrested on these charges, his sister stepped in to fill the gap – and now they will both face the consequences of their actions in federal prison.”
“Firearms trafficking continues to help fuel violent gun crime throughout the Commonwealth of Pennsylvania,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Illegally selling firearms presents an obvious threat toward the safety of our communities. Had it not been for the collaborative work between investigators and the United States Attorney’s Office, dozens of firearms would have been on the streets of Philadelphia where they would have been used in an untold number of violent crimes.”
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Pasco County Meth Dealer Sentenced to More Than Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. today sentenced Jason A. Crowder (42, Zephyrhills) to 10 years and 1 month in federal prison for possession with the intent to distribute 50 grams or more of methamphetamine. Crowder had pleaded guilty on December 8, 2020.
According to court documents, on January 17, 2020, deputies from the Pasco Sheriff’s Office executed a search warrant at Crowder’s residence and recovered 325 grams of methamphetamine from a safe inside the home.
This case was investigated by the Drug Enforcement Administration and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Orlando Man Pleads Guilty to Conspiring and Distributing Fentanyl-Laced HeroinRead the Press Release
Orlando, Florida – Freddie Miguel Velez-Gonzalez (53, Orlando) has pleaded guilty to one count of conspiracy to possess with the intent to distribute more than 40 grams of fentanyl and more than 100 grams of heroin, and to six counts of distribution and possession with the intent to distribute controlled substances. Velez-Gonzalez faces a minimum mandatory sentence of 5 years, and up to 40 years, in federal prison. A sentencing date has not yet been set.
According to court documents, Velez-Gonzalez was a member of a drug trafficking organization (DTO) that distributed controlled substances including, heroin, fentanyl, cocaine, marijuana, and tramadol, in the Middle District of Florida. Between approximately April 23 and August 11, 2020, at the direction of law enforcement, a confidential source negotiated and met with Velez-Gonzalez at the same designated location and purchased narcotics from him. This occurred on six different dates and resulted in the purchase of approximately 106 grams of mixtures containing heroin, fentanyl, or a combination of the two substances. Velez-Gonzalez sold the drugs to the confidential source to further a drug trafficking conspiracy with other members of the DTO.
On September 8, 2020, Velez-Gonzalez was arrested alongside his co-defendant, Inginio Santos-Garcia, at an address on Brosche Road in Orlando from which the co-defendants were distributing narcotics in furtherance of the conspiracy. Santos-Garcia pleaded guilty on November 9, 2020, and is awaiting sentencing.
This case was investigated by the Drug Enforcement Administration, with assistance from the Orlando Police Department. It is being prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Ilianys Rivera Miranda.
Oklahoma Man Pleads Guilty to Child Pornography ChargesRead the Press Release
An Oklahoma man pleaded guilty today to producing and possessing child pornography.
According to court documents, Hunter Jacob James Hope, 21, of Muldrow, engaged in a pattern of conduct that involved threatening to share sensitive (typically undressed or partially undressed) images of minors unless the minors either engaged in sexual acts with him or provided him over the internet with sexually explicit images of themselves.
Hope pleaded guilty to seven counts of production of child pornography and one count of possession of child pornography. According to his written plea agreement, he will face a term of imprisonment between 262 to 327 months. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The plea agreement also requires that Hope pay restitution.
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 Ryan L. Spradlin of U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas made the announcement.
HSI investigated the case.
Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) is prosecuting the case.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oklahoma City Attorney Sentenced to Serve 24 Months in Federal Prison for Possessing a Firearm While Subject to Victim Protective OrderRead the Press Release
OKLAHOMA CITY – Today, Oklahoma City attorney KEEGAN KELLEY HARROZ, 37, was sentenced to serve 24 months in federal prison for being a prohibited person unlawfully in possession of a firearm, announced Acting U.S. Attorney Robert J. Troester.
On September 29, 2020, Harroz pled guilty to one count of unlawfully possessing a firearm while subject to victim protective order. Specifically, Harroz admitted that, on or about August 4, 2019, she possessed a firearm in violation of federal law because she was subject to a state-court victim protective order at the time she possessed the firearm.
Today, U.S. District Judge Scott L. Palk sentenced Harroz to 24 months of imprisonment, to be followed by a three-year term of supervised release. In announcing the sentence, Judge Palk noted the nature and circumstances of the offense and the history and characteristics of Harroz. Harroz has been in federal custody since September 27, 2019.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the United States Marshals Service and Oklahoma City Police Department, along with other law enforcement partners. Assistant U.S. Attorneys Matthew P. Anderson, Jacquelyn M. Hutzell, and Danielle M. Connolly are prosecuting the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
North Attleboro Man Admits to Leading Steroid Distribution ConspiracyRead the Press Release
PROVIDENCE – A North Attleboro, MA, man arrested twice for leading a conspiracy to import and distribute large quantities of steroids faces up to 40 years in federal prison and will, according to a plea agreement filed with the court, forfeit more than $640,000 derived from his criminal activity, after pleading guilty today in federal court in Providence to conspiracy and money laundering charges.
David M. Esser, 47, first arrested in February 2020, and rearrested in December 2020, admitted that he arranged for the importation of large quantities of raw steroids from international suppliers, primarily based in Hong Kong. The raw steroids were shipped directly to various locations in the United States where individuals, working at Esser’s direction and paid by Esser, “cooked” the raw steroid product into liquid form, packaged the product in vials, and shipped the vials to a stash house in North Attleboro. From there, Esser and others shipped the product to customers throughout the United States.
Esser, who was released on $50,000 unsecured bond while awaiting trial following his arrest on February 14, 2020, was re-arrested on December 14, 2020, on charges he arranged with a Virginia resident he conspired with in the past to resume the sale, packaging, and distribution of anabolic steroids.
Esser was ordered detained in federal custody following his second arrest.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Esser pleaded guilty to conspiracy to distribute anabolic steroids, conspiracy to distribute anabolic steroids while on release, and money laundering, announced Acting United States Attorney Richard B. Myrus and Homeland Security Investigations Acting Special Agent in Charge William S. Walker.
According to a plea agreement filed with the court, Esser will forfeit proceeds from his criminal activity to include a total of $160,359.85 in cash and bank accounts seized at the time of his arrests; cryptocurrency equal to $268,692.74; $214,000 – the value of thirteen properties purchased by Esser in Pennsylvania, purchased using proceeds from his criminal activity; four vehicles; and jewelry.
Esser, who remains detained in federal custody, is scheduled to be sentenced on June 7, 2021.
At sentencing, Esser faces statutory penalties of up to 40 years imprisonment; two years to lifetime supervised release; and a fine of $1.5 million dollars.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Acting United States Attorney Myrus acknowledges and thanks the United States Postal Inspection Service, Alamance County North Carolina Narcotics Enforcement Team, U.S. Food and Drug Administration, Internal Revenue Service, HSI Special Agents in the Houston and Winston-Salem Field Offices, and officers and detectives from the North Attleboro and Mansfield Police Departments for their assistance in the investigation of this matter and arrest of defendants involved in this matter.
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Newport Man Pleads Guilty to Unlawful Possession of FirearmsRead the Press Release
CONCORD - Jacob Valley, 26, of Newport, pleaded guilty in federal court to unlawful possession of firearms, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on November 15, 2019, law enforcement officers searched Valley's home pursuant to a federal search warrant. During the search, they found firearms and ammunition. As a person with felony convictions, Valley is legally prohibited from possessing firearms and ammunition.
Valley is scheduled to be sentenced on July 13, 2021.
“In order to protect the public from violent crime, it is vitally important to keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute felons who possess guns unlawfully.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the New Hampshire Attorney General's Drug Task Force; the Sullivan County Sheriff's Office; the Manchester Police Department, Claremont Police Department, Charlestown, Police Department; and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Muskogee Resident Pleads Guilty to Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Demarco Latrel Patterson, age 25, of Muskogee, Oklahoma entered a guilty plea to Sexual Abuse of a Minor in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2243(a), and 2246, punishable by not more than 15 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 22, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly engage in a sexual act as defined in Title 18, United States Code, Section 2246(2)(A), with a minor female who at that time had attained the age of 12 years, but had not attained the age of 16 years, and who was at least four years younger than defendant.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Kyle J. Essley represented the United States.
Muldrow Resident Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hunter Jacob James Hope, age 21, of Muldrow, Oklahoma entered a guilty plea to seven counts of production of child pornography, in violation of Title 18, United States Code, Section 2251, and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252. According to the plea agreement, he will face a term of imprisonment between 262 and 327 months and a fine up to $250,000.00.
According to court documents, Hope engaged in a pattern of conduct that involved threatening to share sensitive (typically undressed or partially undressed) images of minors unless the minors either engaged in sex acts with him or provided him with sexually explicit images of themselves over the internet.
The charges arose from an investigation by the Sallisaw, Oklahoma Police Department and the Department of Homeland Security, Homeland Security Investigations.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Gwendelynn Bills represented the United States.
Missouri Couple Charged with Bankruptcy Fraud and Evading Bank Reporting RequirementsRead the Press Release
A Camden County, Missouri couple are facing bankruptcy fraud and structuring charges arising out of
a scheme to defraud the federal bankruptcy court for the Southern District of Illinois. Kevin and
Catharine Kahrig are named in a four-count indictment that accuses the pair of
bankruptcy fraud and structuring. The indictment also charges Kevin Kahrig, age 47, with making a
long list of false statements and omissions to the bankruptcy court.
According to the indictment, from 2016-2018, the Kahrigs launched a scheme to conceal Kevin’s
assets from his creditors and fraudulently transfer at least $550,000 in assets to his wife,
Catharine, age 34. Kevin and Catharine allegedly deposited over $160,000 in cash and checks
belonging to Kevin into Catharine’s bank account. Catharine allegedly used the commingled funds in
her account to purchase property and selectively pay Kevin’s expenses, while Kevin emptied and
closed his own bank accounts, cashing over $200,000 in checks rather than depositing them with the
bank. The Kahrigs also allegedly structured over $100,000 in deposits in an attempt to evade bank
reporting requirements.The indictment further alleges that Kevin instructed his business customers to make out payments to
Catharine and other family members rather than to himself or his business. The couple is also
accused of selling Kevin’s boat and using the $395,000 check to pay off Catharine’s
mortgage rather than pay Kevin’s debts.Kevin Kahrig filed for bankruptcy in May 2018. The indictment charges him with making numerous
false statements and omissions in his bankruptcy filings and subsequent statements under
oath to conceal the scheme to defraud.“Abuse of the bankruptcy system by concealing assets for personal gain threatens the
integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Southern
Illinois, Central Illinois and Indiana (Region 10). “I am gratified by the actions taken by United
States Attorney Wei hoeft and our law enforcement partners to prosecute those who engage in
fraudulent conduct.”Each charge carries a maximum sentence of five years imprisonment and a fine of up to
$250,000. The Kahrigs’ initial appearances and arraignments were held earlier today, and both
defendants entered a plea of not guilty. Trial is set for May 19, 2021, before United States
District Judge Stephen P. McGlynn.An indictment is merely a formal charge against a defendant. Under the law, the
defendants are presumed to be innocent of the charges until proven guilty beyond a reasonable doubt
to the satisfaction of a jury.The investigation was conducted by the FBI, in collaboration with the Southern District of Illinois
Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10, after referral by the
U.S. Trustee. The U.S. Trustee Program is the component of the Justice Department that protects the
integrity of the bankruptcy system by overseeing case administration and litigating to enforce the
bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria,
Illinois, and South Bend, Indiana. The case is being prosecuted by Assistant United
States Attorney Peter T. Reed.Mexican National Convicted at Trial After Attempting to Eat Memory Cards Containing Child PornographyRead the Press Release
RALEIGH, N.C. – A federal jury today convicted David Sierra Orozco, 31, a Mexican national and recent resident of Georgia, of possessing child pornography.
According to court records and evidence presented at trial, on July 25, 2017, members of the Harnett County Sheriff’s Office were observing traffic outside of Dunn city limits, when they spotted a Lexus whose registered owner had an expired license. They followed the Lexus, and after observing it twice drift across the center lane, conducted a traffic stop.
The driver identified himself as Orozco and presented a Mexican consular ID but no valid driver’s license. Officers noticed that Orozco appeared extremely nervous—he was sweating profusely despite the air conditioner on high and was shaking uncontrollably. They also noticed tool marks on the car’s instrument panel and that the cover was not flush with the dashboard. Recognizing this as signs of a possible hidden “trap” in the dashboard, officers called for a K-9 deputy. As the traffic stop proceeded, Orozco consented to a search, and the K-9 arrived and alerted to the car. Within a trap in the dashboard, officers found $111,252 in cash, wrapped in blocks within grocery bags.
While being processed into the Harnett County Jail on a charge of driving without a license, Orozco was searched. A folded up $100 bill was removed from his pocket, and as law enforcement unfolded it, several MicroSD memory cards fell out. Orozco lunged for the floor, picked up what appeared to be two memory cards, and put them in his mouth. Officers recovered one chewed half of a memory card from his mouth and three intact cards from the floor.
Law enforcement obtained a search warrant based on possible narcotics trafficking. But upon opening the first MicroSD memory card, they spotted what appeared to be child sexual abuse material, commonly referred to as child pornography. After securing a second search warrant, a full forensic review uncovered over 261 videos and 2 images of child pornography on one MicroSD memory card, another 14 videos on a second memory card, and 5 child pornography thumbnails on the defendant’s smart phone. Most files depicted children under 12 years of age.
Along with the child pornography, the forensic examiner found files linking the devices to Orozco. Two of the memory cards and the cell phone contained photographs that Orozco had taken of himself. The other card contained a photo of a car that an officer confirmed was the same make, model, and color as the Lexus that Orozco had been driving. Forensics further showed that Orozco had taken and sent one of the photos of himself using the same mobile application that had been used to collect the child pornography.
Orozco faces a maximum of 240 months in prison and is scheduled to be sentenced during the court’s June 21, 2021 term.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Harnett County Sheriff’s Office and Department of Homeland Security have investigated the case, which Assistant U.S. Attorney Jake D. Pugh is prosecuting.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00095-D.
Max Meadows Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
ABINGDON, Va.- A Max Meadows, Virginia man, who willfully filed false tax returns for tax years 2014 through 2016, pleaded guilty yesterday in U.S. District Court in Abingdon, to a federal felony of willfully filing a false tax return, Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigations announced today.
Matthew Wood Ridgaway, 61, waived his right to be indicted and pleaded guilty yesterday to one count of willfully filing a false tax return. A sentencing, Ridgaway faces a maximum possible sentence of three years in prison and/or a fine of $250,000. A sentencing hearing has been scheduled for June 17, 2021, at 10:30 a.m.
According to court documents, for tax years 2014 through 2016, Ridgaway failed to disclose on his Forms 1040 income tax returns over $130,000 in payments he received as rental income from properties he owns.
The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Manlius Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chester Hammond, age 44, of Manlius, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of distribution of child pornography and one count of possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
Hammond, who remains detained pending his sentencing scheduled for July 27, 2021, faces at least 15 years in prison and up to 60 years imprisonment on the charges. The Court will also impose a term of supervised release of between five (5) years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Hammond admitted that while using a social media messaging application he sent an image depicting child pornography to another individual over the internet. A subsequent search of Hammond’s cellular telephone revealed that he was in possession of over 400 images of child pornography. Hammond is registered sex offender who was convicted in 1996 of attempted sexual abuse in the first degree.
Hammond’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Man indicted for smuggling meth in truck tiresRead the Press Release
LAREDO, Texas – A 23-year-old Houston resident has been indicted for conspiracy and importation of 50 grams or more of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
The federal grand jury in Laredo returned the two-count indictment against Mike Mendoza today. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.
The criminal complaint originally filed in the case alleges Mendoza and others conspired to import more than one kilogram of meth in the tires of a Ford F-150.
On Feb. 25, Mendoza allegedly arrived at the Lincoln Juarez Bridge in Laredo driving the truck. Law enforcement detected anomalies in the tires and soon found 24 bundles of meth, according to the charges.
They allegedly had a total combined weight of 60.04 kilograms with an estimated street value of $360,000.
If convicted, Mendoza faces up to life in prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam E. Harper is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Man Pleads Guilty to the Sexual Exploitation of Two ChildrenRead the Press Release
ALEXANDRIA, Va. – A Mexican national pleaded guilty today to two counts of production of child pornography.
According to court documents, in March 2018, Abel Ambrocio, 54, of Alexandria, Virginia, developed an online relationship with a woman in Honduras over a social media platform. From around October 2018 through at least February 2019, Ambrocio instructed the woman to record and send him over 100 images of herself sexually abusing her two children—an approximately three-year-old boy and an approximately ten-year-old girl. Ambrocio instructed the mother to engage in specific sex acts with her children and record herself doing so on multiple occasions, even when she told Ambrocio that one of the children was in pain and crying from the previous sex act. Later, in March 2019, Ambrocio distributed images of the woman sexually abusing her three-year-old son over a social media platform.
“The defendant’s conduct, which caused the sexual abuse of two young children, is both horrific and heartbreaking” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The production of child pornography inflicts devastating and lifelong harm to society’s most vulnerable victims. EDVA is committed to working with our law enforcement partners to bring child sexual predators to justice.”
Ambrocio pleaded guilty to two counts of production of child pornography. He is scheduled to be sentenced on August 4 and faces a mandatory minimum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorney Jonathan S. Keim are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police. Tips regarding child exploitation and human trafficking can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-135.
Man Pleads Guilty to Setting Fires to Raleigh Business During RiotsRead the Press Release
RALEIGH, N.C. – A Raleigh man pled guilty today to setting a fire inside a store in Raleigh after a demonstration over the death of George Floyd in Minneapolis, Minnesota.
Richard Rubalcava, of Raleigh was arrested on June 18, 2020, by special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and was charged by indictment with two counts of maliciously damaging or destroying, or attempting to damage or destroy, by means of fire or an explosive, any building or other real or personal property affecting interstate or foreign commerce.
According to the indictment, on May 30, 2020, at approximately 12:13a.m., a fire was discovered at the Dollar General Express located at 149 East Davie Street, Raleigh, after it had been looted by rioters. Video surveillance was obtained from the Dollar General Express. The video shows Rubalcava enter the business and place numerous items in a Dollar General Bag. Rubalcava leaves and re-enters the business numerous times. Each time Rubalcava enters the business, he would steal items from the store. Further video surveillance captured Rubalcava inside the Dollar General Express setting fire to miscellaneous items located on an aisle endcap. Rubalcava appears to exit the store after setting the fire.
Rubalcava faces a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 20 years in prison, and a maximum fine of $250,000.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert B. Jones, Jr. accepted the plea. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00341-FL
Lincoln Man Sentenced for Conspiracy to Distribute Methamphetamine and Use of a Firearm in Relation to that ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Mitchell Ryan Pond, 39, of Lincoln, Nebraska, was sentenced on March 23, 2021, in federal court in Lincoln for conspiracy to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual methamphetamine, and for using a firearm during and in relation to that conspiracy. Senior United States District Judge Richard G. Kopf sentenced Pond to 15 years of imprisonment for the conspiracy and a consecutive 5 years of imprisonment for the use of the firearm during and in relation to that conspiracy. There is no parole in the federal system. Pond was also sentenced to a 10-year term of supervised release.
As part of a narcotics investigation regarding Pond, law enforcement seized about 90 grams of actual methamphetamine attributable to him in April 2019. Thereafter, law enforcement obtained and executed a search warrant on Pond’s residence. Inside the residence, law enforcement found methamphetamine residue and a handgun. Law enforcement continued its investigation and found that between November 1, 2018 and July 10, 2019, Pond was responsible for the distribution of at least 1.5 kilograms of methamphetamine in the Lincoln area. Because Pond had previously been convicted under Nebraska state law of robbery for which he served more than 12-months’ imprisonment, he faced a 15-year mandatory-minimum sentence for the conspiracy conviction.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Cocaine Distribution Conspiracy Sentence to More Than Eight Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Douglas Brian Quander, age 39, of Bowie, Maryland to 100 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine, and for distribution of crack cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division.
According to his plea agreement, from October 2017 to June 2018, Quander conspired with Keshia Renee Dawkins and others to distribute cocaine and crack cocaine. During the course of the investigation, the Drug Enforcement Administration (DEA) used an undercover agent and a confidential source to conduct several controlled buys of cocaine and crack cocaine from Quander, or at Quander’s direction, from his co-conspirators. Over six drug transactions, Quander and his co-conspirators sold the undercover agent and confidential source a total of approximately 276.71 grams of cocaine or crack cocaine for $6,700.
On June 25, 2018, law enforcement executed a search warrant at Quander and Dawkins’ residence. Law enforcement seized two firearms, ammunition, 316.8 grams of cocaine, 5.5 grams of heroin, 6.2 grams of marijuana, two digital scales, and $19,122 in cash.
Keisha Renee Dawkins, age 41, of Bowie, previously pleaded guilty and was sentenced for her role in the conspiracy.
Acting United States Attorney Jonathan F. Lenzner praised the DEA for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Dwight Draughon, who prosecuted the case.
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Justice Department Settles Sexual Harassment Lawsuit Against Cumberland County, Tennessee for $1.1 MillionRead the Press Release
The Justice Department announced today that it has reached a settlement with Cumberland County, Tennessee, to resolve allegations that the county discriminated against ten female employees because of their sex in violation of Title VII of the Civil Rights Act of 1964.
Title VII is a federal statute that prohibits employment discrimination on the basis of race, sex, color, national origin and religion. Under the terms of the settlement, which still must be approved by the court in the form of a consent decree, Cumberland County will pay approximately $1.1 million in compensatory damages to ten women whom the United States alleged were sexually harassed by the former director of the county’s Solid Waste Department. Cumberland County will also revise its policies, procedures, and training to better prevent sexual harassment in the workplace.
“Today’s resolution, through settlement, will bring some measure of closure and vindication to the vulnerable women who were victimized by the egregious and abusive behavior in this case,” said Pamela S. Karlan, Principal Deputy Assistant Attorney General of the Civil Rights Division. “Sexual harassment must not be tolerated in the workplace, and we remain committed to eliminating it root and branch through our vigorous enforcement of Title VII.”
“No individual should have to endure the unwanted sexual advances of another, especially from someone who wields a position of authority over another as alleged here,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “We will seek all available remedies to address such unwanted and unlawful conduct and will continue to protect the civil rights of all of our citizens. They deserve nothing less.”
“State and local governments are among our largest employers. It is important that they understand that the federal anti-discrimination laws also apply to them,” said Delner Franklin-Thomas, District Director of the Memphis District of the Equal Employment Opportunity Commission (EEOC). “The egregious sexual harassment that these women were subjected to contravenes Title VII. The EEOC will continue to collaborate with the Justice Department to ensure the protection of our workers in governmental workplaces.”
The Justice Department’s complaint, filed March 8, in the U.S. District Court for the Middle District of Tennessee, alleged, among other things, that Cumberland County failed to take adequate precautions to prevent the former director of the county’s Solid Waste Department from sexually harassing the women. According to the complaint, the former director regularly subjected the women, who all worked for him, to unwanted sexual contact, including kissing and groping; unwelcome sexual advances, including propositioning the women for sexual favors; and offensive sexual remarks about their bodies and sex acts. The former director has been indicted on criminal charges and is awaiting trial in state court.
Four of the women had filed charges of discrimination with the EEOC. The EEOC’s Nashville Area Office, in its Memphis District, investigated the charges and found reasonable cause to believe Cumberland County discriminated against the four women and other similarly situated employees. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department’s Civil Rights Division. The Justice Department brought this lawsuit as part of a joint effort to enhance collaboration between the Department and the EEOC in the vigorous enforcement of Title VII.
This lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative, which is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach and development of effective remedial measures to address and prevent future sex discrimination and harassment.
This lawsuit was handled by Trial Attorneys Jen Swedish and Julia Quinn of the Civil Rights Division’s Employment Litigation Section and by Assistant U.S. Attorney Kara Sweet of the U.S. Attorney’s Office for the Middle District of Tennessee.
The full and fair enforcement of Title VII is a top priority of the Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Jury finds Poplar Bluff resident guilty on conspiracy and distribution of methamphetamineRead the Press Release
CAPE GIRARDEAU – A jury found Marcus Nelson, 39, of Poplar Bluff, Missouri guilty of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine following a two-day jury trial on March 23, 2021. He appeared before the United States District Judge Stephen N. Limbaugh, Jr.
The evidence during the trial proved Nelson conspired with others to bring 45 pounds of methamphetamine from Texas to Missouri between December 2018 and March of 2019. On March 19, 2019, SEMO Drug Task Force Officers received information a subject who lived in Ripley County near Doniphan, Missouri was expecting a large shipment of methamphetamine. Officers traveled to the residence and were speaking with the subject in the driveway when someone threw a duffle bag off a side deck of the residence. Officers recovered the duffle bag and discovered approximately 11 pounds of methamphetamine and eight ounces of heroin inside. Further investigation determined Marcus Ray Nelson brought the bag to the residence and threw it out upon learning police arrived. Nelson, Matthew Wade Stoutt and Gino Wells Sr. were indicted and charged with conspiring to distribute 500 grams or more of a mixture or substance containing methamphetamine. Nelson was also charged with possession of 500 grams or more of a mixture or substance containing methamphetamine with intent to distribute and possession of more than 100 grams of heroin with intent to distribute.
The Ripley County Sheriff’s Department, SEMO Drug Task Force and Missouri State Highway Patrol investigated the case. Assistant United States Attorneys Keith D. Sorrell and Julie A. Hunter handled the case.
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Jones County Felon Pleads Guilty to Possessing Multiple Firearms under Project EJECTRead the Press Release
Hattiesburg, Miss. – Jacob Daniel Williams, 26, of Laurel, pled guilty today before U.S. District Judge Taylor B. McNeel to being a felon in possession of multiple firearms, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On October 19, 2019, Williams was found in possession of four firearms while passing through a checkpoint being operated by the Jones County Sheriff’s Office. The firearms included three shotguns and a pistol. Williams had been convicted of drug possession felonies in Jones County in 2016.
Williams was originally indicted for this offense on June 23, 2020. He will be sentenced before Judge McNeel on June 23, 2021.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jones County Sheriff’s Office investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Inmate Sentenced for Having Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. - An inmate at the Federal Correctional Institution (FCI) McDowell was sentenced today for possessing a weapon at the correctional facility. Rashun Evans, 23, of New York, was sentenced to 18 months in prison to run consecutively to the sentence he currently is serving. He also was sentenced to three years of supervised release following his imprisonment.
Evans previously pleaded guilty and admitted that on February 5, 2020 he possessed a handcrafted weapon at FCI McDowell. A staff member at the prison found the shank underneath a telephone in a common area where Evans had hidden it. The weapon was a seven inch long piece of metal sharpened on one end with a cloth handle on the other end. Evans also admitted that the shank was designed and intended to be used as a weapon.
“I commend the Federal Bureau of Prisons,” said Acting United States Attorney Lisa G. Johnston, “for their vigilant efforts to prevent potential violence among inmates.”
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:20-cr-00203.
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Indictment Charges 4 Men with Stealing Millions in Vehicles, Phones and Other MerchandiseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced the unsealing of a 13-count superseding indictment that charges four men with federal offenses related to their alleged theft of millions of dollars in vehicles, phones, ATMs and other merchandise from numerous locations in Connecticut, New York and elsewhere.
The superseding indictment, which was returned by a federal grand jury in Hartford on February 16 and unsealed yesterday, charges JOSEPHER Y. CARTAGENA, 25, of the Bronx, N.Y.; ALEXANDER J. SANTIAGO, 26, of the Bronx; DOUGLAS NOBLE, 27, of the Bronx, and JUSTIN J. HERRERA, 21, formerly of Levittown, N.Y.
As alleged in court documents and statements made in court, Cartagena, Santiago, Noble and Herrera are members of a theft ring that burglarized car dealerships, mobile phone stores, and check cashing businesses in Connecticut and elsewhere, often burglarizing multiple locations in one night. From dealerships, they stole vehicle key fobs and vehicles; from mobile phone stores, they stole cell phones, electronics and other merchandise; from check cashing businesses, they stole ATMs. They then transported the stolen property back to New York, often escaping from police by engaging the police in high-speed chases, which the police must terminate for safety reasons.
Members of the theft ring are suspected to have committed more than 130 burglaries and stolen millions of dollars in property.
The indictment charges each of the defendants with one count of conspiracy to possess and transport stolen vehicles and property, an offense that carries a maximum term of imprisonment of five years. The defendants are also charged with various counts of transportation of a stolen vehicle, possession of a stolen vehicle, transportation of stolen property and possession of stolen property. These offenses carry a maximum term of 10 years on each count.
On December 23, 2020, when law enforcement first attempted to arrest Cartagena on a federal arrest warrant, Cartagena dropped a firearm and was able to escape by ramming multiple FBI vehicles with his vehicle, which was stolen. Investigators apprehended Cartagena late that night after an all-day search. A court-authorized search of Cartagena’s residence revealed hundreds of thousands of dollars of suspected stolen merchandise, more than 30 vehicle key fobs, various license plates, 9mm ammunition, and approximately $89,000 in cash.
On January 15, 2021, when investigators sought to conduct a court-authorized search of Santiago’s residence, Santiago’s pit bull attacked an FBI agent and badly wounded his arm. Santiago was arrested, and a search of the residence revealed approximately 20 new cell phones in boxes, approximately 40 vehicle key fobs, a police radio, a glass-punch device, two firearms and a substantial amount of ammunition.
Herrera was arrested in Florida, where he had recently moved, on March 10, 2021.
Noble surrendered to law enforcement yesterday.
Cartagena and Santiago are detained, and Herrera and Noble are released on bond.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and Connecticut State Police, with the assistance of numerous local police departments.
This case is being prosecuted by Assistant U.S. Attorneys Robert S. Ruff and Michael S. McGarry.
Indian Cancer Drug Manufacturer to Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) was sentenced to pay $50 million in fines and forfeiture after pleading guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection.
In a criminal information previously filed in federal court in the District of Nevada, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution with the Department of Justice, FKOL agreed to plead guilty to the misdemeanor offense. U.S. District Judge Jennifer A. Dorsey accepted the company’s guilty plea and sentenced FKOL to pay a criminal fine of $30 million, forfeit an additional $20 million, and implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By concealing and destroying drug manufacturing records, FKOL undermined FDA’s regulatory authority and placed vulnerable consumers at risk,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s sentence holds the company accountable for its past conduct and seeks to ensure it will fully comply with its obligations to the FDA going forward.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. Prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the plant and deleted spreadsheets that contained evidence of the plant’s noncompliant practices.
“Today’s sentencing reflects our office’s and the department’s commitment to holding accountable companies that disregard FDA regulations, at the risk of consumers’ health and safety,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our agency partners, we will continue to ensure that drug manufacturers fully comply with their obligations to maintain the integrity of records and data.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “Today’s sentencing proves that we will continue to aggressively investigate and bring to justice those who attempt to subvert requirements that protect the public health.”
The FDA Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter. The Justice Department’s Office of International Affairs provided investigative assistance.
This case was prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Civil Division’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada.
Indian Cancer Drug Manufacturer to Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
LAS VEGAS, Nev. – Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) was sentenced to pay $50 million in fines and forfeiture after pleading guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection.
In a criminal information previously filed in federal court in the District of Nevada, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution with the Department of Justice, FKOL agreed to plead guilty to the misdemeanor offense. U.S. District Judge Jennifer A. Dorsey accepted the company’s guilty plea and sentenced FKOL to pay a criminal fine of $30 million, forfeit an additional $20 million, and implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By concealing and destroying drug manufacturing records, FKOL undermined FDA’s regulatory authority and placed vulnerable consumers at risk,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s sentence holds the company accountable for its past conduct and seeks to ensure it will fully comply with its obligations to the FDA going forward.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. Prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the plant and deleted spreadsheets that contained evidence of the plant’s noncompliant practices.
“Today’s sentencing reflects our office’s and the department’s commitment to holding accountable companies that disregard FDA regulations, at the risk of consumers’ health and safety,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our agency partners, we will continue to ensure that drug manufacturers fully comply with their obligations to maintain the integrity of records and data.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “Today’s sentencing proves that we will continue to aggressively investigate and bring to justice those who attempt to subvert requirements that protect the public health.”
The FDA Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter. The Justice Department’s Office of International Affairs provided investigative assistance.
This case was prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Civil Division’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada.
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Houston Man Pleads Guilty to Federal Charges Stemming from Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Robert Lance Kuperman, 71, pleaded guilty to interstate transportation of money by fraud on March 22, 2021 before U.S. District Judge Michael J. Truncale.
“Insurance fraud ultimately harms individual Americans in the form of higher insurance premiums, making every business more expensive to operate, and passing these costs on to the consumer in the form of higher prices” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will diligently prosecute those who seek to commit insurance fraud in the Eastern District of Texas.”
According to information presented in court, Kuperman purchased a home on Lake Livingston in Polk County, Texas in 2013, and, in July of 2015, submitted an insurance claim related to water damage to the house that he said was caused by a defective water heater. As part of the claim, Kuperman submitted fraudulent documentation for out-of-pocket costs for the purported replacement of personal property destroyed by the water leak. Based on Kuperman’s fraudulent claims, American Strategic Insurance Company issued a series of checks, made payable to Kuperman including a check for more than $136,000.00. As part of the plea, Kuperman has agreed to repay $136,000.00.
A federal grand jury returned an indictment charging Kuperman with federal violations on July 1, 2020. Under federal statutes, Kuperman faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Polk County Sheriff’s Office, and the Texas State Fire Marshals Office and is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman.
Heroin and Methamphetamine Traffickers Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Alexander C. Van Hook announced that two men have been sentenced in the Western District of Louisiana for trafficking heroin and methamphetamine.
LAFAYETTE, La. - Blandon Richard a/k/a Blandon Todd Bessard, 45, of Kaplan, Louisiana, was sentenced today by United States District Judge Michael J. Juneau to 90 months (7 years, 6 months) in prison, followed by 3 years of supervised release, for conspiracy to possess with intent to distribute heroin. Richard was indicted by a federal grand jury in May 2019 on the charge and he pleaded guilty November 4, 2020. The charges in the indictment stemmed from an investigation into the drug trafficking activities of Richard and his co-defendants in the Lafayette area beginning in January 2019. Law enforcement agents obtained authority to intercept cell phone calls of Richard’s co-defendant. During the course of their investigation, agents overheard Richard on phone calls on multiple occasions between he and his co-defendant wherein Richard discussed obtaining heroin to redistribute to other people for profit.
In February 2019, law enforcement agents intercepted phone calls from Richard to his co-defendant making arrangements to obtain heroin from him. Agents conducting physical surveillance observed Richard go to the co-defendant’s house and come out a short time later. Surveillance of Richard’s vehicle continued and after committing a traffic violation, officers with the Lafayette Parish Sheriff’s Office stopped the vehicle. Officers observed in plain view in the ashtray of the vehicle a baggie which contained what appeared to be a controlled substance. At that time, officers retrieved the controlled substance and put Richard in handcuffs and advised him of his Miranda rights. An occupant in the vehicle with Richard was also handcuffed and advised of her Miranda rights. She admitted to law enforcement officers that when they were stopped by law enforcement, Richard told her to hide the baggie containing what was thought to be a controlled substance and she put in her pants. She retrieved the drugs and officers seized it. The substance in the bag weighing approximately 11.6 grams was later field-tested and was determined to be heroin.
The FBI and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
MONROE, La. – John Allen Whitaker, 49, of West Monroe, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 96 months (8 years) in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Whitaker was indicted by a federal grand jury on December 18, 2019 and he later pleaded guilty to the charge on November 4, 2020. The charge stems from a traffic stop conducted by a Ouachita Parish Sheriff’s Office deputy on August 15, 2019. Whitaker was stopped for a traffic violation and during the stop, deputies found that he possessed more than 50 grams of methamphetamine. Deputies arrested Whitaker and after a voluntary waiver of his Miranda rights, he admitted that the methamphetamine belonged to him.
The DEA and Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike Shannon prosecuted the case.
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Hattiesburg Man Pleads Guilty to Possession of Methamphetamine with the Intent to Distribute under Project EJECTRead the Press Release
Hattiesburg, Miss. – Raymarcus Hollimon, also known as “Smoke Loc,” 30, of Hattiesburg, pled guilty today before U.S. District Judge Taylor B. McNeel to possession of methamphetamine with the intent to distribute, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On January 16, 2019, Hollimon was encountered by members of the Drug Enforcement Administration and the Hattiesburg Metro Narcotics Task Force during a narcotics detail. Hollimon was found in possession of over 190 tablets containing methamphetamine and other drug distribution paraphernalia.
Hollimon was indicted for this offense on June 10, 2020. He will be sentenced before Judge McNeel on June 23, 2021.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Former children’s autism service provider pays over $2.7 million to resolve health care fraud allegationsRead the Press Release
HOUSTON – The former owner and sole shareholder of The Shape of Behavior (TSOB), a Texas-based provider of therapy services for children with autism, has agreed to pay to resolve allegations that the company submitted improper claims to the TRICARE program, announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Domonique Randall, 45, Spring, has now paid a total of $2,729,083.23.
TRICARE is an entitlement program for uniformed service members, retirees and their families around the world.
Authorities initiated an investigation after TRICARE’s managed care support contractor - Humana Military Program Integrity – uncovered alleged improper claims. These were for applied behavior analysis therapy to beneficiaries with autism spectrum disorder.
Today’s settlement resolves allegations that nine separate TSOB locations submitted claims to TRICARE that misrepresented the identity of the actual rendering providers, that medical records could not substantiate or when individual providers billed excessive hours on individual dates of service.
“The welfare of our service members and the extended Department of Defense (DoD) family is of vital importance to the DoD Inspector General,” said Acting Special Agent in Charge Gregory P. Shilling of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office. “This resolution is a testament to the collaboration between the DCIS and our partners in ensuring TRICARE beneficiaries receive the highest level of care from health care providers while also ensuring those providers are being stewards of valuable taxpayer resources.”
The Defense Health Agency - Office of Program Integrity, DCIS and Humana Military Program Integrity all assisted in the joint investigation resulting in the settlement announced today. Assistant U.S. Attorney Kenneth Shaitelman handled the matter on behalf of the United States.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Venezuelan Official Pleads Guilty in Connection with International Bribery and Money Laundering SchemeRead the Press Release
A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), pleaded guilty Monday in connection with his role in laundering millions of dollars in bribes and corruptly providing business advantages to multiple individuals who obtained contracts with Citgo and PDVSA.
According to court documents, between approximately 2013 and 2019, Jose Luis De Jongh Atencio (De Jongh), 48, a former procurement officer and manager in Citgo’s Special Projects Group, accepted more than $7 million in bribe payments from businessmen including Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in procuring contracts with Citgo, and providing them with other business advantages.
De Jongh admitted to directing bribe payments from Gonzalez, Farias, and others into bank accounts in the names of shell companies that he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias, and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert. Gonzalez and Farias also entered guilty pleas in connection with the case.
“Jose Luis De Jongh Atencio accepted millions of dollars in bribe payments — placing law-abiding individuals and companies at a competitive disadvantage — and then laundered those bribe payments into the United States to fund his lavish lifestyle,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This guilty plea demonstrates the commitment of the department and our law enforcement partners to hold accountable individuals who engage in corruption and use our financial system to promote and launder the proceeds of their crimes.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair-trade practices,” said Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “This plea is a step in the right direction, but we will continue to level the playing field for companies and consumers by aggressively investigating individuals and corporations who violate the FCPA and misuse our financial system.”
De Jongh pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced by U.S. District Judge Gray H. Miller on Aug. 19, and faces a maximum penalty of 20 years in prison. Judge Miller will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. In addition, as part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties that he purchased with his corrupt proceeds.
To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.
Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Sioux City Council Member Pleads Guilty to Environmental CrimesRead the Press Release
A man who unlawfully stored and transported hazardous waste pled guilty March 19, 2021, in federal court in Sioux City.
Aaron Rochester, 47, from Sioux City, Iowa, was convicted of one count of unlawful storage of hazardous waste and one count of transportation of hazardous waste.
At the plea hearing, Rochester admitted that beginning on or about June 2015 through about January 2017, as owner and operator of Recycletronics, he knowingly and unlawfully stored and transported hazardous waste, namely CRTs (cathode ray tubes) and leaded glass from televisions and computers at various facilities in and around Sioux City, Iowa.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Rochester remains free on bond previously set pending sentencing. Rochester faces a possible maximum sentence of five years’ imprisonment, a maximum fine of up to $50,000 for each day of the violation, and three years of supervised release following any imprisonment.
“If improperly managed, hazardous waste can pose serious risks to human health and the environment,” said Lance Ehrig, Special Agent in Charge of EPA’s criminal enforcement program in Iowa. “The defendant’s illegal transportation and storage practices significantly threatened and burdened nearby communities and the environment. Today’s plea demonstrates that those who knowingly violate our nation’s environmental laws will be held responsible for their crimes.”
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the United States Environmental Protection Agency (EPA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4073.
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