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Newest first across public DOJ and U.S. Attorney press releases.
5 May 2021
Outside Facilitator in Prison Corruption Scheme Sentenced to More Than Three Years in Federal Prison for Racketeering Conspiracy Involving Former Correctional Officers and Inmates at Jessup Correctional InstitutionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Chaz Chriscoe, age 40, of Owings Mills, Maryland, yesterday to 39 months in federal prison, followed by three years of supervised release, for a racketeering conspiracy at the Jessup Correctional Institution (JCI). The conspiracy included former correctional officers, inmates, and outside “facilitators,” like Chriscoe, who paid bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison.
On May 3, 2021, JCI inmate Darnell Smith, a/k/a “Hook,” age 40, pleaded guilty to his role in the racketeering conspiracy.
The sentence and guilty plea were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert Green, of the Maryland Department of Public Safety and Correctional Services.
“Prison corruption does not just endanger the lives of correctional officers and of the inmates entrusted to their care and supervision, but of the entire community, as it allows inmates to direct criminal activity from their prison cells” said Acting United States Attorney Jonathan F. Lenzner. “The United States Attorney’s Office will continue to work with our law enforcement partners to root out prison corruption and prosecute correctional officers and others who facilitate and engage in criminal behavior.”
“From corrupt officials to outside facilitators, we cannot and will not accept the perpetuation of a cycle of illegal activity inside prison walls,” said Rachel Byrd, Acting Special Agent in Charge of the FBI Baltimore Field Office. “Federal, state, and local officials will continue to work together to root out those who undermine the administration of justice at our prisons.”
“Anyone—inmate, family member, community member, or employee—who tries to bring contraband into a correctional facility puts hundreds of people at risk, and must be prosecuted to the fullest extent of the law,” said Robert Green, Secretary of Maryland's Department of Public Safety and Correctional Services.
JCI was a maximum-security prison that housed approximately 1,800 male inmates, with approximately 423 Correctional Officers (COs).
According to their plea agreements, from at least 2017 until their arrests in 2020, Chriscoe, who also goes by the name “Cheese,” and Smith conspired with JCI COs, inmates, and outside facilitators to smuggle contraband into JCI, including narcotics, alcohol, tobacco, and cell phones, in order to enrich themselves and protect and expand their criminal operation. According to their plea agreements and other court documents, COs accepted or agreed to accept payments from facilitators and/or inmates or engaged in sexual relations with inmates as consideration for smuggling contraband into JCI. Inmates acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, conspirator inmates could purchase Suboxone strips for approximately $3 each and sell them inside JCI for approximately $50 each, or for a profit of more than 1,000 percent.
As detailed in their plea agreements, Chriscoe maintained relationships with several inmates and COs at JCI, including CO Chanel Pierce and inmate Darnell Smith. Chriscoe acted as the primary conduit through which coconspirators would get contraband, including controlled dangerous drugs, such as Suboxone, to CO Pierce and others to smuggle into JCI and then distribute the contraband to inmates. On a nearly daily basis, Chriscoe met with other outside facilitators to gather and package contraband before meeting with a CO to provide the contraband and bribe payment.
For example, between December 30, 2018 and January 12, 2019, law enforcement intercepted communications indicating that Chriscoe was meeting with a JCI CO at the CO’s home to deliver drugs and bribe money. When the CO was arrested a few days later, Chriscoe became the primary coordinator for the smuggling conspiracy because he and Darnell Smith had a connection with another JCI CO, specifically Chanel Pierce, with whom Smith was engaged in a romantic relationship. Over the next several months, investigators intercepted daily communications between Chriscoe, Smith, Pierce and other JCI inmates and their outside facilitators to coordinate contraband drop-offs and payments. The calls showed that outside facilitators would drop contraband off with Chriscoe, who then met with and provided the contraband to CO Pierce for smuggling into JCI. Sataya Hall was Smith’s financial facilitator and sent payments to both Chriscoe and Pierce on Smith’s behalf. In addition, Hall accepted payments on Smith’s behalf from facilitators for other JCI inmates in payment for contraband Smith had sold inside of JCI.
Smith admitted that during the time of the conspiracy, he possessed a contraband cell phone inside JCI that he used to further the smuggling operation, routinely using the contraband phone to communicate with CO Pierce, Hall, and Chriscoe. In addition, there were numerous conversations in which Smith discussed the types and quantities of drugs that were to be smuggled into JCI, as well as the money that other inmates and outside facilitators would pay for them. Smith also used the phone to conduct his romantic relationship with CO Pierce, coordinate her bribe payments and facilitate her meetings with Chriscoe.
As detailed in their plea agreements, early on the morning of May 25, 2019, Chriscoe met Pierce at her home and provided her with several balloons filled with controlled substances to smuggle into JCI. Pierce then went to work and was stopped by law enforcement as she entered the facility and searched. Law enforcement recovered a concealed purple balloon containing Suboxone from Pierce’s person. A subsequent search of Pierce’s home revealed several more balloons filled with contraband that she intended to smuggle into JCI.
Smith faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang has scheduled sentencing for August 4, 2021, at 2:00 p.m.
A total of nine defendants, including Chriscoe, Smith, Pierce, and Hall, have pleaded guilty to their roles in the racketeering conspiracy. Six defendants are still facing charges. Former Correctional Dietary Officer Chanel Pierce, age 28, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy and is awaiting sentencing. Co-defendant inmates Page Boyd, age 37, and Marshall Hill, a/k/a “Boosie,” age 29, pleaded guilty to their roles in the racketeering conspiracy and were each sentenced to four years in federal prison. Co-defendant facilitators Sataya Hall, age 38, of Baltimore, and Trinesse Butts, age 37, of Parkville, Maryland also pleaded guilty to the racketeering conspiracy and were sentenced to six months in federal prison and a year and a day in federal prison, respectively.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Lauren E. Perry and Special Assistant U.S. Attorney Craig G. Fansler, who are prosecuting this case.
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Orlando Man Sentenced to Federal Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Ricardo Silva De Oliveira (33, Orlando) to 31 months in federal prison, to be followed by five years of supervised release, for bank fraud and aggravated identity theft. In addition, De Oliveira was ordered to pay $190,530 in restitution.
De Oliveira had pleaded guilty on February 8, 2021.
According to court documents, De Oliveira and others installed approximately 80 credit card skimmers and multiple pinhole cameras on ATMs at various SunTrust Bank locations in Florida and Georgia. Those devices captured, among other things, customers’ account numbers and personal identification numbers. De Oliveira and his co-conspirators would then retrieve those devices and use the information from the skimmers and cameras to make unauthorized access devices (cloned cards). De Oliveira used those cloned cards causing the Bank and/or customers to lose a total of $190,530.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorneys Terry B. Livanos and Roger B. Handberg.
Okmulgee County Resident Pleads Guilty to Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Glen Thomas West, age 35, of Okmulgee County, Oklahoma entered a guilty plea to Murder in Indian Country- Second Degree, in violation of Title 18, United States Code, Sections 1111(a) 1151, and 1153, punishable by death or imprisonment for life, a fine up to $250,000.00, or both.
The Indictment alleged that on or about July 10, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, willfully, deliberately, maliciously, and with premeditation and malice aforethought, did unlawfully kill Edwin Dominic Reid, an Indian, with a firearm.
The charges arose from an investigation by the Henryetta Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, 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.
Assistant United States Attorney David Youll represented the United States.
New York Man Sentenced for Conspiring to Distribute Heroin in Western PARead the Press Release
PITTSBURGH – A former resident of New York, NY, has been sentenced in federal court to a sentence of time served on his conviction of conspiracy to distribute heroin, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Pedro Rosario, age 29.
According to information presented to the court, the defendant conspired to traffic 100 grams or more of heroin from New York to the Western District of Pennsylvania.
Prior to imposing sentence, Judge Bissoon stated that sentence was sufficient but not greater than necessary to achieve the goals of sentencing. The defendant had already served 33 months’ imprisonment pending his sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Pennsylvania State Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Rosario.
Neurosurgical Associates, LTD and Dignity Health, D/B/A St. Joseph's Hospital, Paid $10 Million to Resolve False Claims AllegationsRead the Press Release
PHOENIX, Ariz. – Acting United States Attorney Glenn McCormick announced today that Neurosurgical Associates, LTD and Dignity Health, d/b/a St. Joseph’s Hospital, agreed to pay $10 million to resolve civil allegations that they violated the federal False Claims Act (FCA).
Dignity Health is one of the largest healthcare systems in the United States and does business under the names of hospitals that it owns and operates, including St. Joseph’s Hospital in Phoenix, Arizona. Neurosurgical Associates, LTD is an Arizona corporation, located on the campus of St. Joseph’s Hospital.
The December 2020 settlement resolves allegations that St. Joseph’s Hospital and Neurosurgical Associates, LTD billed Medicare for certain doubly and triply concurrent and overlapping surgeries, in violation of applicable regulations and reimbursement policies.
“We expect health care providers participating in Medicare to bill for their services accurately and honestly,” said Acting U.S. Attorney Glenn McCormick. “Proper billing ensures fair compensation and protects Medicare dollars that are much needed for patient care.”
“With every Medicare dollar desperately needed, we simply will not tolerate the submission of false claims to this vital health care program,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with investigative and prosecuting agencies around the country, we will continue to fight for these programs and the people they serve.”
The settlement resolves a lawsuit filed in June 2018 by Dr. Bruce P. Kingsley under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.
Contemporaneous with a settlement of the FCA claims in this matter, Neurosurgical Associates, LTD entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA addresses the conduct at issue and requires, among other things, that Neurological Associates, LTD maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to annually review Neurosurgical Associates’ Medicare and Medicaid claims.
The settlement is neither an admission of liability by Neurosurgical Associates, LTD, or St. Joseph’s Hospital, nor is it a concession by the United States that its claims are not well founded.
The case was handled by the United States Attorney’s Office for the District of Arizona. The investigation was conducted by the United States Department of Health and Human Services, Office of Inspector General.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs should contact the relevant federal agency. A list of agencies and contact information can be found on our office’s website, https://www.justice.gov/usao-az/agency-links.
CASE NUMBER: CV-17-00692-PHX-JZB
RELEASE NUMBER: 2021-031_Dignity Health Settlement# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Mumford Man Going to Prison for 10 Years on Child Pornography ChargeRead 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 Justin Rosenzweig, 33, of Mumford, NY, who was convicted of possession of child pornography involving a prepubescent minor following a prior conviction, was sentenced to serve 120 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in June 2010, the defendant was sentenced to serve 60 months in jail and designated a Level III Sex Offender after he was convicted in Livingston County Court of engaging in a sexual act with a victim who was less than 13 years old. The defendant was paroled in 2014. On April 26, 2019, a NYS Parole Officer found an Apple iPod containing 290 images and one video of child pornography in Rosenzweig’s possession. Some of the images depicted prepubescent minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
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McKees Rocks Man Charged with Possessing HeroinRead the Press Release
PITTSBURGH, PA - A resident of McKees Rocks, 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 Devon Lamont Johnson, age 32, as the sole defendant.
According to the Indictment, on April 22, 2021, Johnson possessed with the intent to distribute a quantity of heroin.
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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives 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.
Mary Ida Townson Appointed U.S. Trustee for Florida, Georgia, Puerto Rico and the U.S. Virgin IslandsRead the Press Release
Attorney General Merrick B. Garland has appointed Mary Ida Townson as the U.S. Trustee for Florida, Georgia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands (Region 21). Ms. Townson will assume her duties in June and will replace Nancy Gargula, who is the U.S. Trustee in Region 10 and who has served as the interim U.S. Trustee in Region 21 since April 2019.
Ms. Townson brings more than 30 years of bankruptcy experience to the position, including the past 18 years as a standing chapter 13 trustee for the Northern District of Georgia and, before that, in private practice representing debtors and creditors and serving as a chapter 7 panel trustee. She also has held various leadership positions with the National Association of Chapter 13 Trustees and the Southeastern Bankruptcy Law Institute over the past 10 years. Ms. Townson received a Bachelor of Arts with Honors from Auburn University and her Juris Doctor from the University of Georgia Law School.
“Ms. Townson has committed her career to improving the bankruptcy system and we are excited to have her join our leadership team,” said U.S. Trustee Program (USTP) Director Cliff White. “We also are indebted to Ms. Gargula for her expert leadership of Region 21 over these past two years.”
The USTP 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. The USTP has 21 regions and 90 field office locations. Region 21 is headquartered in Atlanta, Georgia, with additional offices in Macon and Savannah, Georgia; Miami, Orlando, Tallahassee and Tampa, Florida; and San Juan, Puerto Rico.
Man Sentenced for Assaulting his Girlfriend with a Knife and Illegally Possessing a FirearmRead the Press Release
A Tulsa man was sentenced today in federal court for cutting his girlfriend’s throat and for illegally possessing a firearm, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge John E. Dowdell sentenced Devin Charles Staller, 24, to 70 months in federal prison followed by 3 years of supervised release. Staller previously pleaded guilty to assault with a dangerous weapon in Indian Country and to being a felon in possession of a firearm.
“Devin Staller will spend nearly six years in federal prison where he can no longer intimidate, threaten and harm this victim,” said Acting U.S. Attorney Clint Johnson. “Intimate partner violence accounts for 15% of all violent crime. My office and our law enforcement partners support victims of domestic violence and will hold accountable their abusers in a court of law.”
In his written plea agreement, Staller admitted that he had intent to do bodily harm when he assaulted the female victim with a knife by cutting her throat on June 24, 2020.
He further admitted to being a felon in possession of a Montgomery Ward Savage 16 gauge pump-action shotgun. Staller had the firearm when police located him at an apartment in Tulsa on July 17, 2020. Staller was previously convicted of eight felonies.
The Tulsa Police Department, FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant U.S. Attorney Kevin Fletcher prosecuted the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
Malvern Residents Charged in Fraudulent Puppy ScamRead the Press Release
LITTLE ROCK-Two Malvern residents have been charged with fraudulently selling purebred, registered puppies that did not actually exist. Helda Verla Berinyuy and Thierry Assoueesoh Ekwelle, both 31, are charged with one count of conspiracy to commit wire fraud and 22 counts of wire fraud in an indictment handed down by a federal grand jury on May 4, 2021, that became public today.
The indictment alleges that Berinyuy and Ekwelle were Cameroon citizens who came to the United States and attended college in Arkansas, with Ekwelle eventually becoming a naturalized American citizen. According to the indictment, Berinyuy and Ekwelle were neighbors and students at Arkansas State University Three Rivers in Malvern.
Allegedly, from August 2018 through November 2020, Berinyuy and Ekwelle used websites to advertise the sale of purebred, AKC registered puppies such as French Bulldogs, Boxers, Toy Poodles, English Bulldogs, and others, when in fact, they did not have any puppies for sale.
In order to collect money from purchasers, the indictment claims, the defendants promised to deliver the puppies via airplanes. After receiving the initial purchase money, the defendants would request added fees to cover costs such as puppy crates, extra handling fees due to COVID-19, and pet insurance, among other things.
The indictment alleges that each purchaser sent the defendants an amount of money ranging from $500 to $5,000. The defendants would use various aliases to pick up the money, which was sent via Western Union and Walmart transfers at various locations throughout Arkansas. As a result of the scheme, according to the indictment, Berinyuy and Ekwelle “sold” puppies to approximately 153 victims from multiple states and received approximately $110,691.50.
Berinyuy and Ekwelle will appear for arraignment later this month before United States Magistrate Judge Thomas Ray. The FBI is conducting the investigation. Assistant United States Attorney Pat Harris is prosecuting the case.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Kissimmee Heroin Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Eddie Quinones Santiago (38, Kissimmee) to 10 years in federal prison for conspiracy to distribute 100 grams or more of heroin, possession of 100 grams or more of heroin with intent to distribute, and possession of cocaine with intent to distribute.
Quinones Santiago had pleaded guilty on December 29, 2020.
According to court documents, Quinones Santiago was part of a drug trafficking organization (DTO) that sold heroin in the Central Florida area. Federal, state, and local law enforcement conducted a joint investigation into the DTO. Statements by coconspirators and recorded conversations identified Quinones Santiago as a member of the DTO who was responsible for distributing large quantities of heroin in Orlando and Tampa. As part of the investigation, law enforcement obtained search warrants and conducted searches of storage units, a residence, and a vehicle connected to Quinones Santiago. The searches revealed approximately 406 grams of heroin and 427 grams of cocaine in storage facilities controlled by Quinones Santiago and a coconspirator. Investigators also seized proceeds from Quinones Santiago’s drug trafficking, including approximately $332,000 in cash and $63,000 worth of jewelry.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Florida Department of Law Enforcement, the Florida Highway Patrol, the Tampa Police Department, and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Justice Department Issues Statement Announcing Decision to Appeal Alabama Association of Realtors v. HHSRead the Press Release
Brian M. Boynton, Acting Assistant Attorney General for the Justice Department's Civil Division, released the following statement:
“The CDC’s eviction moratorium — which Congress extended last December and the CDC later extended through June 30, 2021 — protects many renters who cannot make their monthly payments due to job loss or health care expenses. Scientific evidence shows that evictions exacerbate the spread of COVID-19, which has already killed more than half a million Americans, and the harm to the public that would result from unchecked evictions cannot be undone.
“The Department of Justice respectfully disagrees with today’s decision of the district court in Alabama Association of Realtors v. HHS concluding that the moratorium exceeds CDC’s statutory authority to protect public health. In the department’s view, that decision conflicts with the text of the statute, Congress’s ratification of the moratorium, and the rulings of other courts.
“The department has already filed a notice of appeal of the decision and intends to seek an emergency stay of the order pending appeal.”
Jefferson County Woman Sentenced for Distributing MethamphetamineRead the Press Release
BEAUMONT, Texas - A Nederland woman has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Keri Colleen Beck, 49, pleaded guilty on Jan. 27, 2021, to possession with intent to distribute methamphetamine and was sentenced to 151 months in federal prison today by U.S. District Judge Michael Truncale.
According to information presented in court, on Jan. 19, 2020, the Jefferson County Narcotics Task Force executed a search warrant at Beck’s Nederland residence and found approximately one pound of methamphetamine. Beck also possessed an assortment of drug trafficking paraphernalia including resealable bags and digital scales. Beck was indicted by a federal grand jury on Nov. 4, 2020 and charged with drug trafficking violations.
“Cases like this that partner local and federal law enforcement resources significantly interrupt the destructive flow of methamphetamine into our local communities,” said Acting U.S. Attorney Nicholas J. Ganjei.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
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Honduran National Is Sentenced to 30 Years for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – Oscar Hernandez Maldonado, 48, a Honduran national residing in Charlotte, was sentenced today to 30 years in prison followed by a lifetime of supervised release for producing child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Maldonado to register as a sex offender after his term of incarceration.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
Maldonado was charged via a criminal bill of information with inducing, enticing and coercing a minor to engage in sexually explicit conduct for the purpose of producing images of the sexual abuse. According to today’s sentencing hearing and documents filed with the Court, beginning in or about 2008, Maldonado sexually abused five minor victims, four females and one male, at various times and on multiple occasions over an eight-year period. A forensic analysis by HSI of Maldonado’s seized electronic devices revealed that Maldonado produced images depicting the sexual abuse of the minors and attempted to erase those images. In December 2019, Maldonado pleaded guilty to production of child pornography.
Maldonado is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI for their outstanding investigation of the case and commended CMPD for their invaluable assistance.
Assistant United States Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted 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 the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
Gulf Coast Man Sentenced to Almost Four Years in Prison for Firearms OffenseRead the Press Release
Gulfport, Mississippi – A Harrison County man was sentenced today to 46 months in prison for being an unlawful user of a controlled substance in possession of a firearm and ammunition, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in Mississippi.
According to court documents, on September 2, 2020, officers with the Biloxi Police Department stopped a vehicle that was being driven by Cameron Malik Dajon Payton, 19, of Harrison County, Mississippi. During the course of the stop, law enforcement officials found a handgun magazine and ammunition on Payton. The vehicle was subsequently searched and two handguns, one of which was stolen, were located under the front passenger seat. One of the handguns matched the magazine and ammunition found on Payton.
The investigation also revealed that Payton was an unlawful user of a controlled substance. Therefore, he was prohibited from possessing a firearm or ammunition. Furthermore, at the time of this offense, Payton was on bond for an aggravated assault charge out of Harrison County for allegedly shooting someone.
The FBI and Biloxi Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner prosecuted the case.
Grand Jury Indicts Jamestown Woman on Meth ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Antasia Babcock, 28, of Jamestown, NY, with narcotics conspiracy, possessing with intent to distribute methamphetamine, maintaining a premises for drug use and distribution, and possessing with intent to distribute methamphetamine on premises where an individual under 18 was present and resided. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that according to the indictment and a previously filed criminal complaint, on October 16, 2020, the Jamestown Metro Drug Task Force executed a New York State search warrant at Babcock’s Wescott Street residence. During that search, the defendant was present along with three small children. Law enforcement officers seized one pound of suspected methamphetamine hydrochloride, drug paraphernalia, and approximately $62,000 in cash.
The defendant was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
The indictment is the result of an investigation by the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Four North Texans Sentenced for Sex Trafficking OperationRead the Press Release
SHERMAN, Texas – A Plano man has been sentenced for crimes involving firearms and sex offenses in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Wayne Edward Bearden, 40, pleaded guilty on Dec. 4, 2019, to being a felon in possession of firearms and to coercion, enticement and aiding and abetting, and was sentenced to a total term of imprisonment of 180 months by U.S. District Judge Amos L. Mazzant today.
“Today’s sentence takes a dangerous man off the street, and will bring a measure of closure and comfort to those he victimized,” said Acting U.S. Attorney Nicholas J. Ganjei. “While this case began as a firearms investigation, due the excellent work of our federal and local law enforcement partners we were able to uncover – and dismantle – a commercial sex trafficking operation.”
“We will work relentlessly with all of our committed law enforcement partners to identify and rescue victims of human trafficking, and bring their exploiters and consumers to justice,” said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “This sentence may successfully conclude this particular operation but HSI’s efforts to eradicate sex trafficking continues.”
According to information presented in court, in August 2018, Bearden called the Plano Police Department after individuals robbed his Plano home. Responding officers observed a number of firearms in the home, and a subsequent investigation revealed that Bearden was a previously convicted felon, prohibited from possessing firearms under federal law. During the course of the investigation, Plano detectives and special agents with Homeland Security Investigations determined that Bearden was the organizer and leader of a sex trafficking operation. Specifically, Bearden employed a “booker” who coordinated the ads for sexual services, websites, and appointments for commercial sex appointments, and used other women in managerial roles, transporting the prostituted women to locations around the United States, obtaining hotel rooms, and managing cash payments. As the leader of the operation, Bearden controlled the acts the women performed, where they worked, how often they worked, how much money they made, with Bearden controlling the proceeds the prostituted women earned. As part of his plea, Bearden admitted to persuading, inducing, enticing, or coercing women to travel to other states to engage in illegal prostitution.
After his release from prison, Bearden will serve a total term of supervised release of five years. In addition to Bearden, other members of the operation were previously sentenced by Judge Mazzant for conspiracy to travel or cause another to travel in interstate commerce and to use facilities of interstate commerce to promote, manage, establish, carry on and facilitate unlawful activity, including:
- Ashlynn Clark – sentenced on July 2, 2020 to five months in federal prison, five months home detention, and one year of supervised release;
- Shelby Holzen – sentenced on June 4, 2020 to three years of probation;
- Ashley Judith Schafer – sentenced on June 3, 2020 to six months in federal prison, six months home detention, and two years of supervised release.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by Homeland Security Investigations – Dallas, the Plano Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Marisa Miller and Tracey Batson.
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Fort Collins Bookkeeper Pleads Guilty to Mail Fraud and Money LaunderingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that Rose Horne, age 66, formerly of Fort Collins, Colorado pleaded guilty today to mail fraud and money laundering. Horne was indicted on March 11, 2014, and was a fugitive until her arrest in California in June 2020. She is now scheduled to be sentenced in federal court in Denver before U.S. District Court Judge Robert E. Blackburn on August 19, 2021.
According to court documents, Horne worked as a bookkeeper for a small family-run plumbing business in Fort Collins for 27 years. From at least October 2005 through June 2011, Horne devised a scheme to steal over $1 million from her employer. As part of her scheme, Horne wrote approximately 170 unauthorized checks to herself from her employer’s payroll bank account. Horne used unauthorized checks drawn on her employer’s general business accounts to pay her personal balances as well as other personal bills. Horne forged the owner’s signature on some checks or presented checks to the authorized signatories under the guise the checks were to pay business expenses. Horne attempted to conceal the theft by writing void on check stubs, falsely writing the name of an actual vendor on the check stubs, and by cutting and blacking out portions of her employer’s bank statements that included copies of the checks in question.
Mail fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of not more than $250,000 or twice the gain or loss from the offense, and restitution. Engaging in a monetary transaction with proceeds derived from criminal activity carries a sentence of up to 10 years in prison, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
Case No. 14-cr-00093-REB
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Former Indian River County Mail Carrier Sentenced to Probation for Mail TheftRead the Press Release
Miami, Fl. – A South Florida female who stole cash deposits from different retailers participating in the U.S. Postal Service Deposit by Mail program was sentenced today to five years’ probation, 180 days of home detention, and ordered to pay $49,235.42 in restitution.
According to court documents, Christina M. Bolden, 37, worked as a United States Postal Service rural carrier from October 9, 2015 to December 6, 2019. She collected cash deposits from the Vero Beach Outlet Mall from October 27, 2018 to July 5, 2019. In early July of 2019, the Outlet Mall was assigned to another mail carrier but still processed at the same post office. After receiving multiple mail theft complaints of cash deposits submitted by participating retailers located at the Outlet Mall, USPS OIG began conducting various surveillance operations at the Citrus Ridge Post Office. On October 28, 2019, and November 18, 2019, Bolden removed cash deposits from the Priority Mail hamper as she processed the mail from her assigned route. Bolden admitted to stealing these cash deposits and others. Bolden also relinquished $505.00 in cash deposits that she still had in her possession which she had stolen from May 28, 2019 through December 2, 2019.
In addition to imposing a five-year term of probation and 180 days of home detention electronic monitoring, Judge Kenneth A. Marra ordered Bolden to pay $49,235.42 to the retailers.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office, made the announcement.
“The U.S. Postal Service Office of Inspector General did an excellent job uncovering and investigating this crime. Their work helped preserve the integrity of the U.S. Postal Service workforce and the public’s trust in the U.S. Postal Service,” said Acting U.S. Attorney Juan Antonio Gonzalez. “The U.S. Attorney’s Office will continue to work with the U.S. Postal Service Office of Inspector General and our other law enforcement partners to maintain the integrity of our federal agencies.”
“The vast majority of our Postal Service employees are honest, hardworking individuals who would never dream of violating the public trust in this manner,” said Special Agent in Charge Pierce. “An employee who decides otherwise, however, will be aggressively investigated by OIG special agents. This case serves as an excellent example of the successful partnership between the USPS OIG and U.S. Attorney’s Office to pursue and prosecute employees involved in criminal activity.”
USPS OIG investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-14030.
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Former Corporate Executive Pleads Guilty to $30 Million Embezzlement SchemeRead the Press Release
BOSTON – The former Chief Financial Officer of Alden Shoe Co. pleaded guilty today to embezzling approximately $30 million from the company as part of a long-running scheme.
Richard Hajjar, 64, of Duxbury, pleaded guilty to one count each of wire fraud, unlawful monetary transactions and filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 15, 2021 at 3 p.m.
From at least 2011 through October 2019, when he was terminated by Alden Shoe Co., Hajjar embezzled money by writing checks to himself from company bank accounts and transferring funds from company accounts to his personal accounts and to another individual. In total, Hajjar embezzled approximately $30 million which he used to enrich himself and to buy gifts and luxury travel for others close to him, including private flights to the Caribbean and diamond jewelry.
In addition, between approximately 2014 and 2019, Hajjar failed to report the proceeds of his embezzlement as income on his tax returns, thereby failing to pay approximately $5,112,822 in taxes to the Internal Revenue Service.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine or twice the gross gain/loss, whichever is greater. The charge of unlawful monetary transaction provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol E. Head of Mendell’s Asset Recovery Unit are prosecuting the case.
Former City Officials Sentenced for Accepting Bribes in Exchange for Cannabis Dispensary PermitRead the Press Release
Two California men were each sentenced today to two years in prison for accepting bribes in return for a guarantee of a city permit to open a commercial cannabis dispensary.
According to the plea documents, former Calexico, California, City Councilman David Romero, 37, and Bruno Suarez-Soto, 29, a former commissioner on the city’s Economic Development and Financial Advisory Commission, accepted $35,000 in cash bribes from an undercover FBI Agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto guaranteed the rapid issuance of a city permit for the dispensary and to revoke or hinder other applicants, if necessary, to ensure that the bribe payer’s application was successful. Both men also acknowledged that they had taken bribes from others in the past. Referring to this $35,000 payment, one of them told the undercover agent, “This isn’t our first rodeo.”
According to admissions in the plea agreements and other documents filed in court, Romero and Soto accepted the $35,000 from the undercover FBI agent in two installments. At the conclusion of a meeting between the defendants and the undercover FBI agent on Jan. 9, 2020, with Romero looking on, the undercover agent handed Soto $17,500 in cash. The agent asked whether “we’re good,” and Romero responded, “Trust me.” On Jan. 30, 2020, Romero and Soto accepted the second installment of $17,500 in cash.
In addition to being a councilman, Romero served as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Soto recently resigned from the city commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the city of Calexico. Romero resigned his position with the city in connection with his plea agreement, effective June 8, 2020.
In addition to the prison sentence, Romero and Soto were ordered to pay forfeiture in the amount of $17,500.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Randy Grossman for the Southern District of California; and Special Agent in Charge Suzanne Turner of the FBI’s San Diego Field Office made the announcement.
The FBI investigated the case.
Trial Attorney Joshua Rothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nicholas Pilchak of the Southern District of California prosecuted the case.
Former Calexico City Officials Sentenced to Prison for BriberyRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – May 5, 2021
SAN DIEGO – Former Calexico City Councilman and Mayor Pro Tem David Romero, along with Bruno Suarez-Soto, a former commissioner on the city’s Economic Development and Financial Advisory Commission, were each sentenced to two years in prison today for taking bribes in exchange for “guaranteeing” a City permit for a cannabis business.
In pronouncing sentence, U.S. District Judge Cathy Ann Bencivengo observed that public officials should not “take positions of power to line their own pockets” and that the pair’s conduct “taints how we hope to believe democracy works.”
Romero and Suarez-Soto, both Calexico residents, previously pleaded guilty on June 11, 2020 to conspiracy to commit federal program bribery. Per their plea agreements, Romero and Suarez-Soto accepted $35,000 in cash bribes from an undercover FBI agent whom they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Suarez-Soto promised to “guarantee” the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Moreover, both men admitted they had taken other bribes in the past. In fact, referring to this corrupt arrangement, Suarez-Soto told an undercover agent that “This isn’t our first rodeo.”
Romero previously served as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Suarez-Soto was appointed to the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Both men resigned their positions with the City in June 2020 as part of their plea agreements.
“Public office is a public trust,” said Acting U.S. Attorney Randy Grossman. “Anyone who violates that trust by selling the government’s business to satisfy their own greed should face a reckoning. Citizens of this district deserve no less.”
“The FBI, to include our Imperial County Resident Agency, remains committed to investigating all levels of public corruption, including those engaged in pay-to-play and bribery schemes,” said FBI Special Agent in Charge Suzanne Turner. “This case is one example of how the FBI will bring to justice those who use their positions of power to harm our communities and diminish public trust.”
According to court documents and their plea agreements, Romero and Suarez-Soto met with the undercover FBI agent three times in December 2019 and January 2020. They demanded a $35,000 bribe at their first meeting on December 19, 2019. In return, Suarez-Soto told the agent that his application would be “guaranteed” once the payment was made. He assured the undercover that he and Romero wouldn’t “disappear” after the payment, and Romero explained “I can’t [disappear]. I’m Mayor Pro Tem. In July, I’ll be Mayor. If anything, I ran based on this platform—which is cannabis.”
When the undercover agent asked whether his payment would get his application to the front of the line of other applicants, per court filings, Suarez-Soto answered, “Hell yeah,” and Romero told him he “didn’t want to say it in front of everybody, but it will.” Romero added that he could revoke permits from other applicants if he wanted, to ensure that the undercover agent’s submission would succeed. Romero did demand that the undercover agent pay the bribe up front, however, because he complained that he had “burn[ed] favors” and “pull[ed] strings” for other parties before who refused to pay after the favors were rendered.
At the second meeting, on January 9, 2020, Suarez-Soto told the undercover agent that having Romero on board would help the agent cut through the “bullshit [red] tape” at City Hall, according to court filings. When the undercover agent sought to clarify what would happen with his application, Romero told him that “the people who have to approve your license” were Romero’s “best friends at the entire City Hall.” When the undercover asked whether Romero’s “best friends” had already signed off on the plan, Romero responded “F*ck, yeah!” and laughed. When the undercover agent handed Suarez-Soto two envelopes totaling $17,500 in cash in the parking lot with Romero looking on, per court documents, he asked the men whether “we’re good.” Romero responded, “Trust me.”
Both defendants admitted in their plea agreements that they accepted a second round of cash payments totaling $17,500 in a restaurant parking lot on January 30, 2020 as part of the scheme. They also acknowledged that they accepted both payments intending to be influenced in the performance of their duties on behalf of the City of Calexico, and that the $35,000 collective bribe was not the first they had accepted as part of their scheme.
As set out in court records, both defendants were interviewed by the FBI following the second cash payment, and both were warned it was a crime to make false statements. Nevertheless, each defendant lied repeatedly to the interviewing agents, attempting to distance themselves from the corruption that had just taken place.
Acting U.S. Attorney Grossman praised Assistant U.S. Attorney Nicholas Pilchak and prosecutors Ryan Crosswell and Joshua Rothstein of DOJ’s Public Integrity Section, and FBI agents for working hard to achieve the outcome in this case.
DEFENDANTS Case Number 20cr1215-CAB
David Romero Age: 37 Residence: Calexico, CA
Bruno Suarez-Soto Age: 29 Residence: Calexico, CA
SUMMARY OF CHARGES
Conspiracy to Commit Federal Program Bribery, in violation of Title 18, United States Code, Sections
371 and 666(a)(1)(B)
Maximum Penalty: Five years in prison; $250,000 fine.
AGENCY
Federal Bureau of Investigation
Federal Indictment Returned in Kidnapping and Carjacking Resulting in DeathRead the Press Release
Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury in Columbia returned a multiple-count indictment in connection with a kidnapping and carjacking that started in Horry County, continued into North Carolina, and culminated in a murder in Marion County.
Dominique Devonah Brand, 29, of Marion, was charged in a three-count indictment with kidnapping resulting in death, carjacking resulting in death, and use of a firearm in furtherance of a crime of violence resulting in death of a person in such a manner to constitute murder. Brand could receive a sentence of up to life without the possibility of parole or death on all counts.
The indictment alleges that on or about March 28, 2021, Brand entered the home of Mary Ann Elvington in Nichols, South Carolina, and kidnapped her. The indictment further alleges that Brand forced Elvington to drive him in her 2012 Buick Lacrosse to Lake Waccamaw, North Carolina, and then back to Lakeview, South Carolina. There, according to the indictment, Brand forced Elvington into the back seat of the vehicle and he drove away with her in it. It is alleged that, shortly thereafter, Brand shot and killed Elvington behind an abandoned grocery store at the Zion Crossroads in Marion County. Brand then drove the vehicle to a wooded area behind a nightclub in Marion, South Carolina, and abandoned it, according to the indictment.
Brand will be arraigned by a United States Magistrate Judge at the McMillan Federal Courthouse in Florence, South Carolina, in the coming weeks. He is currently in custody on related state charges in Marion County.
The case was investigated by a joint team consisting of the Horry County Police Department, Marion County Sherriff’s Office, Dillon County Sherriff’s Office, Myrtle Beach City Police Department, Lakeview Police Department, and the South Carolina Law Enforcement Division. The Federal Bureau of Investigation’s Pee Dee Safe Streets Gang Task Force is also assisting in the investigation. Assistant United States Attorney Everett E. McMillian and Special Assistant United States Attorney Scott Hixson are prosecuting the federal case in close coordination with the 15th and 12th Circuit Solicitors’ Offices.
“While the indictment in this specific case speaks for itself, brazen violence, particularly against the elderly, will always be met with a strong, unified effort by law enforcement to bring the victims justice,” said Acting U.S. Attorney DeHart. “We will never waver in our work to stop violent crime in South Carolina.”
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Indictment Returned in Bishopville Post Office and City Hall ArsonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a Federal Grand Jury in Columbia returned a multiple-count indictment in connection with the destruction of Bishopville’s Post Office and damage to Bishopville’s City Hall.
Jeffrey Albert Scott, 61, of Bishopville, was charged in a five-count indictment with three counts of malicious damage to a building by means of fire and two counts of destruction of letter boxes and mail.
The indictment alleges that on or about January 19, 2017, Scott set fire to the Bishopville Post Office, also damaging the mail boxes inside. The indictment further alleges that on or about October 17, 2020, just a few years later, Scott again set fire to the Bishopville Post Office, as well as Bishopville City Hall. The fire destroyed the Post Office, including the mail within.
Scott, who has pleaded not guilty on all five charges, was arraigned Tuesday by a United States Magistrate Judge in Columbia. He is currently detained pending trial and is in custody on related state charges in Sumter County.
The case was investigated by a joint team of the United States Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives; South Carolina Law Enforcement Division; the Bishopville Police Department, and the Lee County Department of Public Safety. Assistant U.S. Attorney Derek A. Shoemake is prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until proven guilty.
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Federal Grand Jury Indicts Atlanta Man for His Role in Romance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Tochukwu Okerulu a/k/a MT, 35, of Atlanta, Georgia, with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, for his role in a romance fraud scheme. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the indictment, the defendant is accused of participating in a romance fraud, a scheme orchestrated to obtain cash and property from unsuspecting victims using romantic overtures and appealing to victims’ emotions. Okerulu allegedly conspired with others to defraud a victim in the Western District of New York with another member of the conspiracy falsely expressing a romantic interest in the victim, which prompted the victim to send more than $220,000 to members of the conspiracy.
In addition to the victim in the Western District of New York, other victims nationwide were similarly defrauded, through romance fraud and other schemes. A total of 29 victims lost approximately $1,745,928 as a result of Okerulu’s role in this conspiracy.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury A Indictments Announced-MayRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the May 2021 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Gerardo Benitez-Jimenez. Unlawful Reentry of Removed Alien. Benitez-Jimenez, 44, of Tulsa, is charged with unlawfully being in the United States after having been deported on Dec. 4, 2014 at or near New Orleans, Louisiana. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency.
Stacey Dewayne Berry. Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact with a Minor Under 12 Years of Age in Indian Country; Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact with a Minor Aged 12-16 Years in Indian Country; Abusive Sexual Contact without Permission in Indian Country. Berry, 57, is charged with sexually abusing 3 children. Some victims were abused as early as 2000. This case was previously prosecuted by the state of Oklahoma. The FBI, Craig County Sheriff’s Office and District Attorney’s Office- District 12 conducted the investigation.
Devon Blevins; Jacob Bruce Banks. First Degree Murder in Indian Country; Causing Death by Using and Discharging a Firearm During and Relation to Crimes of Violence; Felon in Possession of a Firearm and Ammunition. On April 12, 2019, Blevins, 28, and Banks, 21, both of Tulsa, aided and abetted one another when they allegedly killed Maurice L. Burgess by shooting him with a firearm. The two are also charged with aiding and abetting one another when they knowingly used and discharged a firearm during and in relation to crimes of violence- First Degree Murder and Second Degree Murder in Indian Country. Blevins is also charged with assaulting the victim by shooting him. Finally, Banks is charged with being a felon in possession of a New Frontier LW-15 multi caliber rifle and ammunition. The FBI and Tulsa Police Department are the investigative agencies.
Thomas Darrel Blossom. Second Degree Murder in Indian Country; Involuntary Manslaughter in Indian Country. Blossom is charged with killing Lucus Chuckluck on Sept. 22, 2020, by driving in a reckless manner, traveling over the posted speed limit on a wet roadway and while under the influence of alcohol. The FBI, Oklahoma Highway Patrol and Oklahoma State Bureau of Investigation are the investigative agencies.
Jeremy Nicholas Botonis. Coercion and Enticement of a Child in Indian Country; Abusive Sexual Contact with a Child in Indian Country. From June 1, 2019, to September 3, 2019, Botonis, 43, of Sand Springs, allegedly enticed and coerced a minor to engage in any sexual activity. On August 24, 2019, Botonis knowingly engaged in, and attempted to engage in sexual contact with a minor between 12 and 16 years of age. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Mayes County Sheriff’s Office are the investigative agencies.
Walter Franklin Deerinwater. Felon in Possession of a Firearm and Ammunition. Deerinwater, 30, of Bristow, is charged with being a felon in possession of a Taurus .45 ACP caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Bristow Police Department are the investigative agencies.
Dustin Lee Dennis; Michael Scott Dennis. Child Neglect in Indian Country (Counts 1-4); Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony (Counts 5-19). From June 12 to June 13, 2020, Dustin Dennis, 32, of Tulsa, allegedly failed to provide adequate care for his two children, who died while under his supervision. During the same timeframe, Dustin Dennis is further charged with failing to protect his children from exposure to the use, possession and sale of illegal drugs and illegal activities. Further, Dustin Dennis and his brother Michael Dennis, 49, of Tulsa, are charged with using their cell phones while committing, causing, and facilitating the commission of a drug trafficking felony on June 12 and June 13 and other dates alleged in the indictment. The FBI and Tulsa Police Department are the investigative agencies.
Travis Loran Dry. Assault of an Intimate Partner and Dating Partner by Strangling and Attempting to Strangle in Indian Country; Aggravated Sexual Abuse by Force in Indian Country. Dry, 33, of Tulsa, is charged with strangling and attempting to strangle a dating partner on Jan. 13, 2019. He is also charged with aggravated sexual abuse by force in regard to a second victim, occurring sometime between Dec. 18, 2018 and Jan. 17, 2019. The FBI and Rogers County Sheriff’s Office are the investigative agencies.
Kenneth Jermaine Ferrell. Felon in Possession of a Firearm and Ammunition. Ferrell, 36, of Tulsa, is charged with being a felon in possession of a Taurus .40 caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Jimmy Glenn Hendrix. Causing Death by Using and Discharging a Firearm During and in Relation to Crimes of Violence. Hendrix, 42, of Tulsa, is charged with using and discharging a firearm during and in relation to crimes of violence- First Degree Murder and Second Degree Murder in Indian Country. Hendrix allegedly used a firearm to shoot and kill Jarrod Young on March 11, 2008. The FBI and Tulsa Police Department are the investigative agencies.
Matthew Steven Janson. Distribution and Receipt of Child Pornography; Possession of Child Pornography in Indian Country. Between April 18, 2016, to May 25, 2016, Janson, 37, of Tulsa, is alleged to have knowingly distributed and received child pornography. He is further charged with knowingly possessing and accessing with intent to view the child pornography. Some of the depictions involved the use of prepubescent minors and minors who had not attained 12 years of age. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
Adrian Robert Jones. Felon in Possession of a Firearm and Ammunition. Jones, 29, of Tulsa, is charged with being a felon in possession of a Smith and Wesson .40 S&W caliber semi-automatic pistol with an extended 30 round magazine and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Johnny Lee Jumper Jr. and Herman Junior Snell II. First Degree Murder in Indian Country. Jumper Jr., 44, and Snell II, 41, are charged with maliciously and deliberately killing another man by repeatedly beating him during a robbery on May 1, 1994. The FBI, Oklahoma State Bureau of Investigation, and Mayes County Sheriff’s Office are the investigative agencies.
Raymond Lane Jr. Possession of Methamphetamine with Intent to Distribute; Possession of Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of Firearm and Ammunition. Lane Jr., 46, of Tulsa, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. He is further charged with possessing a Smith and Wesson 9 mm pistol in furtherance of his drug trafficking crimes and with being a felon in possession of a firearm and ammunition. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.
Jaquan Dawantee Lee. First Degree Burglary in Indian Country (Count 1); Assault by Strangulation in Indian Country (Counts 2 and 4); Witness Tampering (Count 3) (superseding). On Aug. 25, 2019, Lee, 27, of Tulsa, allegedly broke into a home by kicking in the door while the occupants were present. He is further charged with assaulting an intimate partner by attempting to strangle and suffocate her on Aug. 25, 2019, and with trying to persuade the victim to make false statements in relation to an official proceeding. Finally, Lee is charged with assaulting the same victim on Jan. 9, 2018, by strangling and suffocating the woman. The FBI and Tulsa Police Department are the investigative agencies.
Ashley Lorene Parnell. First Degree Murder in Indian Country. Parnell, 39, is charged with killing a 2-year-old boy by causing blunt force trauma to the child’s head. Parnell allegedly perpetrated the murder as part of a pattern and practice of assault and torture against the child. The crime occurred in Jenks in March 2008. The FBI and Tulsa and Jenks Police Departments are the investigative agencies.
Robert William Perry II. Aggravated Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact of a Minor in Indian Country (superseding). Perry II, 30, is charged with sexually abusing a child under 12 years of age from May 6, 2017, to May 15, 2018. The FBI and Tulsa Police Department are the investigative agencies.
Justin Marquis Render. Felon in Possession of Firearm and Ammunition. Render, 27, of Tulsa, is charged with being a felon in possession of a Sig Sauer 9 mm Parabellum caliber pistol and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Don Westley Roe Jr. Enticement. Roe Jr., 62, of Tulsa, is charged with using an electronic device to entice and coerce an individual who he believed had not attained the age of 18 to engage in sexual activity. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bristow Police Department are the investigative agencies.
Cornelius Prince Shanklin. Child Abuse in Indian Country; Child Neglect in Indian Country. Shanklin, 30, allegedly engaged in the abuse of an infant on July 15, 2015. He is further charged with child neglect. The FBI and Tulsa Police Department are the investigative agencies.
Jeffrey Brent Thomas. Aggravated Assault of Federal Officer with a Deadly and Dangerous Weapon (Counts 1 and 2); Eluding Peace Officer in Indian Country (Count 3). On April 6, 2021, Thomas, 43, of McAlester, allegedly assaulted and resisted a Task Force Officer with the U.S. Marshals Service when he struck the officer’s vehicle with his truck. He also allegedly assaulted and resisted members of the Tulsa County Sheriff’s Office who were assisting the U.S. Marshals Service by striking their vehicles with his truck. Members of the U.S. Marshals Service Violent Crimes Task Force were attempting to arrest Thomas at the time. The FBI and Tulsa County Sheriff’s Office are the investigative agencies.
Jose Tyler Vaught. First Degree Murder in Indian Country; Causing Death by Using and Discharging a Firearm During and in Relation to Crimes of Violence. Vaught, 28, of Lexington, is charged with deliberately and maliciously shooting and killing Joey Aguirre on July 30, 2015. Vaught is also charged with using and discharging a firearm during and in relation to crimes of violence, First Degree Murder and Second Degree Murder in Indian Country. The FBI and Tulsa Police Department are the investigative agencies.
El Paso Man Convicted of Drug Trafficking ConspiracyRead the Press Release
OKLAHOMA CITY – Yesterday, a federal jury convicted JASON ALAN VILLEGAS, 28, of El Paso, Texas, of conspiring to distribute cocaine and possessing cocaine with intent to distribute, announced Acting U.S. Attorney Robert J. Troester.
On February 19, 2021, a federal grand jury returned a two-count Superseding Indictment against Villegas. Count 1 charged Villegas with conspiring to distribute cocaine. Count 2 charged him with possessing cocaine with intent to distribute.
Yesterday, after a two-day trial, a jury returned guilty verdicts on both counts. Evidence at trial showed that on August 10, 2020, Villegas was arrested after a search of his vehicle at a traffic stop in Canadian County resulted in the seizure of approximately six kilograms of cocaine hidden in a secret compartment built into his vehicle. Evidence at trial also showed that Villegas’ arrest on August 10, 2020 took place on his third such trip from El Paso for drug trafficking purposes.
At sentencing in approximately 90 days, Villegas faces a minimum sentence of ten years in federal prison and up to a life sentence for each count. Each count also carries a fine of up to $10,000,000 and a minimum term of supervised release of five years following imprisonment.
This case is the result of investigations by Homeland Security Investigations and the Oklahoma Bureau of Narcotics. Assistant U.S. Attorneys Thomas Snyder and Travis Leverett prosecuted the case.
Reference is made to court filings for further information.
Eight Indicted in Credit Card Fraud SchemeRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that eight individuals were charged for their roles in a scheme that used stolen and fraudulent credit card accounts to purchase at least $750,000 worth of various items, including retail goods, large construction and building materials, appliances and equipment.
Charged in a 22-count indictment with conspiracy to commit access device fraud, access device fraud and aggravated identity theft are Diontae WALLACE, 35, of Warrensville Heights, Ohio; Adrienne CAMPBELL, 53, of Cleveland, Ohio; JOVANNA BROWN, 33, of Warrensville Heights, Ohio; Marcellus SMITH, 27, of Cleveland, Ohio; James LUKE, 43, of Cleveland, Ohio; Glenn KING, 27, of Cleveland, Ohio; Shirley LADSON, 37, of Shaker Heights, Ohio and JOSEPH BROWN, 62, of Campbell, Ohio.
According to the allegations, from around December of 2016 and continuing through approximately April of 2020, WALLACE recruited a number of co-conspirators, including CAMPBELL, JOVANNA BROWN, SMITH, LUKE, KING, LADSON and JOSEPH BROWN to participate in the credit card fraud scheme.
It is alleged that WALLACE would purchase personal identifying information from the dark web and use it to open fraudulent credit card accounts. WALLACE would then create fictitious identification cards bearing the stolen personal identifying information and a photograph of a co-conspirator. The indictment states that WALLACE provided the fraudulent identification cards and credit cards to his co-conspirators to use at his direction.
According to the indictment, WALLACE, CAMPBELL, JOVANNA BROWN, SMITH, LUKE, KING, LADSON and JOSEPH BROWN would use the fraudulent credit card accounts and identification cards to purchase various items, including retail goods, construction and building materials, appliances and equipment from various stores and vendors around Northeast Ohio and elsewhere. As part of the alleged scheme, WALLACE would then sell the purchased items to others and use the proceeds for his own benefit and to pay his co-conspirators.
In addition, it is alleged that WALLACE, the named co-conspirators and others known and unknown to the Grand Jury, used the fraudulent credit card accounts to make purchases of goods such as clothing, household items and craft supplies, which they kept for their personal benefit.
In total, it is alleged that WALLACE, CAMPBELL, JOVANNA BROWN, SMITH, LUKE, KING, LADSON and JOSEPH BROWN made at least $750,000 in purchases throughout the scheme.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland FBI and the United States Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Andrea Isabella and Brad J. Beeson.
Des Moines Kum & Go Shooter Found Guilty of Federal Ammunition ChargeRead the Press Release
Federal Charge Brought Following Split Jury Verdict in Polk County District Court
DES MOINES – Today a federal jury convicted Ceeron Tearrence Williams, age 29, of Des Moines, for felon in possession of ammunition. Williams faces a sentence of up to 10 years in prison on the conviction. Williams was ordered to remain detained pending his sentencing on September 10, 2021.
According to court documents and evidence presented at the three-day trial, shortly after 4 a.m. on January 21, 2018, Williams fired nine gunshots from a pistol while he and a group of individuals were standing near the storefront of a Des Moines Kum & Go store. Williams struck a victim with seven of his gunshots, including in the stomach and hips. Williams fled the shooting scene with his pistol. The victim survived.
Williams was indicted in federal court in February 2021 for possessing ammunition on the date of the shooting, having been previously convicted of a felony. The federal indictment followed a prosecution by the Polk County Attorney’s Office where Williams was charged with Attempted Murder, Intimidation with a Dangerous Weapon with Intent, and related state charges. In September 2020, a Polk County jury acquitted Williams of Attempted Murder but convicted him of several less severe charges. He also has an undischarged term to serve on the state convictions.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by the Des Moines Police Department, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI Safe Streets Task Force. The case was prosecuted by United States Attorney’s Office for the Southern District of Iowa.
Denton County Man Sentenced for Production of Child PornographyRead the Press Release
SHERMAN, Texas – A Flower Mound man has been sentenced for the sexual exploitation of a child in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jermaine Lanie Codrington, 39, was convicted by a jury on Sep. 4, 2020, of production of child pornography. Codrington was sentenced to 30 years in federal prison by U.S. District Judge Amos L. Mazzant on May 4, 2021. Upon his release from custody, Codrington will be on supervised release for 10 years and will be required to register as a sex offender.
“The exploitation of a child is among one of the worst offenses a person can commit, and the sentence handed down in this case reflects that,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas will continue to work with our federal, state, and local partners to punish those that engage in such heinous acts, and hopefully deter those that might be inclined to similarly engage in such acts of exploitation.”
“The sexual exploitation of a child is an inexcusable and unconscionable crime, often causing life-long harm to those victimized, said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “The lengthy sentence imposed will not eliminate the trauma endured by the victim, but it does highlight the seriousness of the sexual offense perpetrated by the abuser.”
According to information presented in court, in April 2019, a minor child reported sexual abuse by Codrington. Law enforcement investigating the matter discovered images of child pornography on Codrington’s cellular phone. Codrington testified at trial and admitted to taking the photographs, stating that he had done so at the child’s request, to teach the child about their anatomy. Other evidence introduced at trial detailed the child’s interactions with Codrington and established that the child had no contemporaneous knowledge of the photos. The district court determined that an upward variance from the U.S. Sentencing Guidelines was warranted and sentenced Codrington to a term of imprisonment of 30 years.
This case is 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 the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by members of Homeland Security Investigations – Dallas and the Flower Mound Police Department. The case was prosecuted by Assistant U.S. Attorneys Marisa Miller and Maureen Smith.
Defendant in Scheme to Steal Digital Currency and Social Media Accounts Pleads Guilty and is Sentenced to Two Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Jordan K. Milleson, age 20, of Timonium, Maryland, to two years in federal prison, followed by one year of supervised release, for aggravated identity theft, in connecting with schemes to use the identity information of victims to steal digital currency and social media accounts. Milleson entered his guilty plea today. Chief Judge Bredar also ordered Milleson to pay restitution of $34,329.01.
The guilty plea and sentence were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his plea agreement, since at least September 23, 2017, Milleson was a computer “hacker” who accessed computers, networks, and electrometric accounts without authorization to perpetrate fraud schemes.
As detailed in the plea agreement, between September 23, 2017, and July 29, 2020, Milleson set up Internet domains and fraudulent websites, designed to appear to be legitimate websites belonging to wireless providers, but which were intended to steal account credentials and enabled Milleson and his co-conspirators to access unsuspecting victims’ electronic accounts without authorization. Milleson used techniques such as phishing and vishing to deceive victims into visiting the fraudulent websites and providing their credentials to access their electronic accounts. Victims of phishing attacks were generally contacted by e-mail, phone, or text message by persons purporting to be from reputable companies in order to induce the victims to reveal confidential information. Vishing is “voice phishing” where imposters use Internet phone services to trick victims into turning over critical financial or personal information over the phone.
Milleson admitted that he and his co-conspirators used electronic account credentials stolen from employees and affiliates of wireless providers to access those companies’ computer networks without authorization. After obtaining access to these networks, Milleson took over individual victims’ wireless accounts through “SIM swapping,” whereby customers’ mobile numbers, which are linked to unique subscriber identity modules (“SIM”), were instead linked to a SIM installed in a device controlled by Milleson or his co-conspirators. Once Milleson gained control over the victims’ mobile phone numbers, he was often able to also gain unauthorized access to the victims’ other electronic accounts, including e-mail, social media, and cryptocurrency accounts. Milleson and his co-conspirators changed the passwords to the accounts to prevent the victims from accessing their own accounts.
As detailed in the plea agreement, Milleson used stolen account passwords to take over social media accounts of Victim 1 and Victim 6, both of whom had thousands of followers and had monetized their accounts through sponsored links, product placements, and product reviews. Milleson changed the email address and password of the accounts, preventing Victim 1 and Victim 6 from accessing their accounts, and posted material to the victims’ accounts without their authorization. As a result of the takeover Victim 6 lost all of their followers on one of their social media accounts and was unable to advertise to them, losing their “brand deals,” the proceeds of which had been used to pay for college tuition, transportation, and groceries.
Milleson also admitted that, using a fraudulent website hosted at the domain Milleson registered, Milleson stole the login credentials of Victim 2, an employee of a third-party retailer for a wireless provider, who had access to the wireless provider’s computer networks. Milleson and others used the credentials of Victim 2, to gain access to the provider’s computer network system and execute SIM swapping attacks, taking control of the wireless calls and text messages sent to the accounts of Victim 3, Victim 4, and Victim 5.. This swapping attack resulted in the transfer of approximately $19,029.48 in digital currency from accounts belonging to Victim 3 and Victim 5. In addition, Victim 4 had a social media account with a two-character username, coveted by other social media users for its uniqueness and simplicity. On about June 25, 2019, Milleson took unauthorized control of Victim 4’s social media account. On January 25, 2020, Victim 7’s mobile phone stopped working as a result of a SIM swapping attack. Soon thereafter, Victim 7’s personal email password was reset without authorization. An unauthorized user then accessed Individual Victim 7’s account on a digital currency exchange and stole digital currencies worth approximately $12,300 at the time.
On June 26, 2019, a co-conspirator anonymously called the Baltimore County Police Department and falsely reported that he, purporting to be a resident of the Milleson family residence, had shot his father at the residence. During the call, the co-conspirator, posing as the purported shooter, threatened to shoot himself and to shoot at police officers if they attempted to confront him. This call was a “swatting” attack, a criminal harassment tactic in which a person places a false call to authorities that will trigger a police or special weapons and tactics (SWAT) team response—thereby causing a life-threatening situation.
Following his indictment, Milleson’s home was searched on June 29, 2020. Review of the devices seized from Milleson at that time showed that they were used to complete two-factor authentication password resets for several digital currency account and contained login credentials and passwords belonging to Individual Victims 1 and 6. Investigators also recovered incriminating messages between Milleson and his co-conspirators that detailed the group’s methodology of account infiltration and cryptocurrency theft.
Acting United States Attorney Jonathan F. Lenzner praised the HSI and Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christopher M. Rigali and Zachary A. Myers, who prosecuted the case.
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Deepwater Man Pleads Guilty to $500,000 CARES Act FraudRead the Press Release
SPRINGFIELD, Mo. – A Deepwater, Missouri, man pleaded guilty in federal court today to fraudulently obtaining more than $500,000 in Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Brian Ruth, Sr., 44, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of wire fraud and two counts of money laundering.
By pleading guilty today, Ruth admitted that he applied online in May and June 2020, and received three PPP loans totaling $522,765 for three separate business entities. Each of the loan applications contained materially false statements and included fraudulent supporting documents. Ruth falsely claimed his three businesses were operational and employed numerous individuals in February 2020, when in reality, the businesses had not been open or operational and did not employ any other individuals.
Ruth also admitted that he directed the fraudulently obtained PPP loan proceeds to be wired to his bank accounts. He used the proceeds to purchase a 2016 Cadillac, a 2020 Dodge Charger, and a 2017 Dodge Challenger. Ruth traded the Cadillac and the Charger (along with $27,415) to purchase the Challenger.
Under federal statutes, Ruth is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Nhan Nguyen. It was investigated by IRS-Criminal Investigation.
Dayton man pleads guilty to robbing credit union at gunpointRead the Press Release
DAYTON – Samuel Hayes, 61, of Dayton, pleaded guilty in U.S. District Court today to armed bank robbery and using a firearm during a crime of violence.
The parties involved in Hayes’s case have recommended a sentence of 141 months in prison.
According to court documents, on Jan. 11, 2020, Hayes robbed a credit union at gunpoint. Hayes entered the Universal One Federal Credit Union on Harshman Road in Dayton and pointed the firearm directly at credit union tellers and customers. Hayes stole $3,770 during the robbery.
Sentencing is scheduled for Aug. 3.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Cross-Country Methamphetamine Traffickers Plead Guilty to Federal Drug ConspiracyRead the Press Release
WILMINGTON, Del. – A New Castle couple pleaded guilty today to conspiracy to distribute methamphetamine that was shipped to them from California. The announcement was made today by David C. Weiss, U.S. Attorney for the District of Delaware, after Chief Judge Leonard P. Stark of the United States District Court for the District of Delaware accepted the plea.
According to statements made in open court, a Drug Enforcement Administration (“DEA”) investigation revealed that Imanuel Villalba, 22, of New Castle, Delaware, was a major methamphetamine trafficker. Before the COVID-19 pandemic, Villalba was routinely getting shipments of 40 pounds of methamphetamine per week from California. The COVID-19 pandemic disrupted his supply for several months, until he was able to get back into the methamphetamine business in June 2020. On June 15, 2020, Villalba and his girlfriend, Hayley Carello, also 22, of New Castle, Delaware, flew together to California to order several pounds of methamphetamine with the intention of selling that methamphetamine to customers in Delaware. Several days later, after Villalba and Carello returned to Delaware, a package containing four pounds of methamphetamine was shipped from California to Delaware. That package was delivered to Villalba and Carello, resulting in their arrest.
Villalba and Carello each pled guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Villalba faces a mandatory minimum of ten years in prison, and Carello faces a mandatory minimum of five years. Both are scheduled to be sentenced on September 1, 2021. Chief Judge Stark will determine their respective sentences after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Illicit drug traffickers are ravaging our communities. Together with our law enforcement partners, my Office will continue to investigate and vigorously prosecute those who choose to engage in the illegal drug trade.”
"Villalba and Carello were responsible for importing and distributing substantial amounts of methamphetamine," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "They received shipments, some as large as 40 pounds of methamphetamine, from California for distribution to customers in Delaware."
Assistant U.S. Attorneys Jennifer K. Welsh and Ruth Mandelbaum are prosecuting the case. The case was investigated by the Drug Enforcement Administration (“DEA”) Group 41, which is part of the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (“HIDTA”). The DEA received significant assistance from the Wilmington Police Department, Delaware State Police, and the Newport Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cr-54 (LPS).
Court Authorizes Service of John Doe Summons Seeking Identities of U.S. Taxpayers Who Have Used CryptocurrencyRead the Press Release
A federal court in the Northern District of California entered an order today authorizing the IRS to serve a John Doe summons on Payward Ventures Inc., and Subsidiaries d/b/a Kraken (Kraken) seeking information about U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency during the years 2016 to 2020. The IRS is seeking the records of Americans who engaged in business with or through Kraken, a digital currency exchanger headquartered in San Francisco, California.
“Gathering the information in the summons approved today is an important step to ensure cryptocurrency owners are following the tax laws,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer.”
“There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions,” said IRS Commissioner Chuck Rettig. “This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share.”
Cryptocurrency, as generally defined, is a digital representation of value. Because transactions in cryptocurrencies can be difficult to trace and have an inherently pseudoanonymous aspect, taxpayers may be using them to hide taxable income from the IRS. On April 1, 2021, a federal court in the District of Massachusetts granted an order authorizing the IRS to serve a similar John Doe summons on Circle, a digital currency exchange headquartered in Boston.
Today’s order from the Northern District of California grants the IRS permission to serve what is known as a “John Doe” summons on Kraken. The United States’ petition does not allege that Kraken has engaged in any wrongdoing in connection with its digital currency exchange business. Rather, according to the court’s order, the summons seeks information related to the IRS’s “investigation of an ascertainable group or class of persons” that the IRS has reasonable basis to believe “may have failed to comply with internal revenue laws.” According to the copy of the summons filed with the petition, the IRS directed Kraken to produce records identifying the U.S. taxpayers described above, along with other documents relating to their cryptocurrency transactions.
The IRS has issued guidance regarding the tax consequences on the use of virtual currencies in IRS Notice 2014-21,which provides that virtual currencies that can be converted into traditional currency are property for tax purposes, and a taxpayer can have a gain or loss on the sale or exchange of a virtual currency, depending on the taxpayer’s cost to purchase the virtual currency (that is, the taxpayer’s tax basis).
Chicago Area Rapper Charged with Making False Statements to Federal AgentRead the Press Release
BOSTON – A Chicago area rap artist was charged in federal court in Springfield, Mass. with allegedly making a false statement to a federal agent.
Herbert Wright, 25, a/k/a “G Herbo,” was charged with one count of making a false statement to a federal official. Wright and five co-defendants, including Antonio Strong, a rap promoter, were previously indicted for conspiracy to commit wire fraud and aggravated identity theft.
According to the previous indictment, beginning in approximately March 2016, the defendants allegedly conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information to obtain valuable goods and services, such as private jet and yacht charters, exotic car rentals, luxury hotel and vacation rental accommodations, private chef and security guard services, designer puppies, limousine and chauffer services, commercial airline flights, consumer goods and meals.
Yesterday, Wright was charged with allegedly making false statements to a federal agent on Nov. 24, 2018. Specifically, it is alleged that Wright falsely told the federal agent that he never worked with or was assisted by Antonio Strong; he never provided Strong any money; he never received anything of value from Strong; and he had no direct relationship with Strong. In fact, since at least 2016, it is alleged that: (1) Strong worked with and assisted Wright; (2) Wright provided Strong money; (3) Wright received valuable goods from Strong, including private jet charters, luxury accommodations, and exotic car rentals; and (4) Wright had frequent direct contact with Strong, including phone conversations, text messages and Instagram messages.
The charge of false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Frederick Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office and Trial Attorney Andrew Tyler of the Justice Department’s Criminal Division’s Fraud Section.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charlotte Woman and Her Co-Conspirator Are Sentenced to Prison for Stealing $300,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that a Charlotte woman and one of her two co-conspirators were sentenced to prison today for their involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge for the FBI in North Carolina, Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Joseph Hatley of the Mint Hill Police Department.
U.S. District Judge Max O. Cogburn Jr. sentenced Donna Graves, 58, to 97 months in prison and two years of supervised release. On October 2, 2020, a federal jury convicted Graves of conspiracy to commit wire fraud and money laundering conspiracy. Grave’s co-conspirator, Gerald Maxwell Harrison, 54, of Mint Hill, N.C., was ordered to serve three years in prison, followed by three years of supervised release. Harrison pleaded guilty in May 2020, to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. In addition to the prison terms imposed, Judge Cogburn also ordered Graves and Harrison to pay $298,407.85 as restitution, jointly and severally.
A third co-conspirator, Elizabeth Robin Williams, previously pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy and is currently awaiting sentencing.
According to filed court documents, evidence presented at Graves’ trial and witness testimony, including testimony provided by Harrison, from January 2015 through September 2019, Graves, who was the ringleader of the criminal conspiracy, conspired with Williams and Harrison to engage in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges. During the relevant time period, Graves and her co-conspirators exploited K.T.’s vulnerabilities and defrauded the victim through a web of forged documents, lies, and deceptions.
According to evidence presented at Graves’ trial, beginning in 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Over the course of the scheme, the co-conspirators isolated the victim from her friends and family, induced the victim to give them power and control over her personal affairs, and fabricated a power of attorney purporting to give Graves and Williams control over the victim’s financial affairs. Once they gained access and control, Graves, Williams, and Harrison moved the victim out of her residence in Indian Land, South Carolina, first to an apartment in Charlotte, and later to a rental home in Mint Hill, refusing to let the victim’s friends and family know where she was living.
According to court records and trial testimony, Graves, Williams, and Harrison engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, and “maxed out” at least one credit card in the victim’s name. The co-conspirators also fraudulently transferred or attempted to transfer the victim’s Indian Land residence to themselves by creating a quit claim deed purporting to gift the residence to Harrison; they then attempted to sell the residence and intended to split the proceeds amongst each other. They also pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of approximately $300,000.
According to court documents and information presented at today’s sentencing hearing, over the course of the scheme, Graves and her co-conspirators failed to provide the victim with proper medical care, which greatly diminished the victim’s health. Furthermore, once the victim’s money was depleted, the co-conspirators abandoned the victim, who was later moved to a nursing home in New York, where she passed away in large part due to the mental and physical deterioration she had suffered in the hands of Graves and her co-conspirators.
In announcing Graves’s sentence, Judge Cogburn said the defendants knew that the victim was vulnerable and that this was a shameful manipulation of a person. Judge Cogburn also said the defendant’s made “the last part of her (the victim’s) life the worst part of her life.”
Graves will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. Harrison is currently in custody. A sentencing date for Williams has not been set. Williams faces a maximum penalty of 20 years in prison and a $250,000 fine for the wire fraud conspiracy charge carries. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine, and the interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the Mint Hill Police Department, the FBI, and USPIS for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
June 15TH Is World Elder Abuse Awareness Day
June 15, 2021, is World Elder Abuse Awareness Day (WEAAD). First launched in 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, the purpose of WEAAD is to raise awareness about abuse and neglect toward the elderly and to prevent elder exploitation.
According to the National Council on Aging, elder abuse is a silent problem that robs seniors of their dignity, security, and – in some cases – it costs them their lives. “Up to five million older Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion.”
Combating elder abuse and financial fraud targeted at older adults is a key priority of the Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year.
Together with our law enforcement partners, the Justice Department and the U.S. Attorney’s Office are committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services and public awareness. Visit the Justice Department’s Elder Justice Initiative to learn more about available resources, including how to report elder abuse and financial exploitation.
California Man Sentenced to Five Years in Prison for Role in Drug ConspiracyRead the Press Release
TRENTON, N.J. – A California man was sentenced today to 60 months in prison for his role in a drug distribution conspiracy connected to the seizure of fentanyl and heroin at a New Jersey rest stop last year, Acting U.S. Attorney Rachael A. Honig announced today.
Luis Aponte, 50, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute fentanyl and heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in court:
On March 1, 2019, Aponte drove a tractor-trailer truck to a rest stop in Bloomsbury, New Jersey. The next day, he met his co-defendant, Denny Diaz, 31, of Philadelphia, Pennsylvania, in a car and gave Diaz approximately six kilograms of fentanyl. Both men were arrested shortly thereafter. Law enforcement officers searched Aponte’s truck at the rest stop and found an additional two kilograms of fentanyl and 11 kilograms of heroin inside. Diaz pleaded guilty in September 2019 and was sentenced on May 26, 2020, to 33 months in prison.
In addition to the prison term, Judge Sheridan sentenced Aponte to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Raymond P. Donovan, New York Division; New York City Police Commissioner Dermot F. Shea; and New York State Police Superintendent Keith M. Corlett with the investigation leading to today’s sentencing. This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
California Man Sentenced to 151 Months for MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Ricardo Barraza, age 41 of Los Angeles, California, was sentenced today in federal court in Omaha, Nebraska. United States District Judge Brian C. Buescher sentenced Barraza to 151 months’ imprisonment. After completing his term of imprisonment, Barraza will be required to serve a 5-year term of supervised release. There is no parole in the federal system. Barraza’s prison sentence was extended by approximately 5 years as he absconded after pleading guilty and while on pretrial release in 2005. He was rearrested in November of 2019.
On October 12, 2004, law enforcement stopped a red Chrysler PT Cruiser for a traffic violation while traveling in New Mexico. The driver of the vehicle, Ricardo Barraza, was accompanied by a passenger identified as Victor Jose Barraza Cazares. During the traffic stop, the officer became suspicious that the two were involved in criminal activity and requested permission to search the vehicle. Barraza granted permission for a search which resulted in the discovery of approximately 1,663 grams of methamphetamine. During a post arrest statement, Barraza admitted to his involvement in transporting the drugs to an individual in Grand Island, Nebraska.
The passenger was found guilty in July of 2005 of Conspiracy to Distribute Methamphetamine and was sentenced to 188 months’ imprisonment.
This case was investigated by the New Mexico State Police and the Drug Enforcement Administration.
Bronx Man Charged with 2012 Murder of Michael PerezRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging SHAREEF LANDSMARK, a/k/a “Reef, a/k/a “Wreef,” with murdering Michael Perez in the Bronx, New York, on September 17, 2012. LANDSMARK was arrested yesterday and will be presented later today before U.S. Magistrate Judge Katharine H. Parker. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Audrey Strauss said: “As alleged in the Indictment, almost nine years ago, Shareef Landsmark executed Michael Perez in the streets of the Bronx. Thanks to the perseverance of the NYPD, Landsmark now stands charged in federal court.”
NYPD Commissioner Dermot Shea said: “Today’s charges prove that the best investigators in the world will never cease to secure justice that is owed to victims and their families. I would like to thank the NYPD Detectives, our law enforcement partners, and the prosecutors of the U.S. Attorney’s Office for the Southern District of New York for their dedication to this investigation.”
As alleged in the Indictment[[1]] unsealed yesterday in Manhattan federal court:
On September 17, 2012, LANDSMARK was hired by a co-conspirator to kill Michael Perez in furtherance of a conspiracy to distribute crack cocaine. Later that night, LANDSMARK shot and killed Perez, who was standing in the street near the intersection of East 213th Street and Willett Avenue in the Bronx.
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LANDSMARK, 35, from the Bronx, New York, is charged with one count of murder through use of a firearm, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of five years in prison; one count of murder in connection with a drug trafficking crime, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of 20 years in prison; and one count of murder-for-hire, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of the NYPD. She also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Alexandra Rothman and Adam Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Bristol, Tennessee Woman Pleads Guilty as Part of Ongoing Prosecution of CARES Act FraudstersRead the Press Release
ABINGDON, Va. – A Bristol, Tennessee woman pleaded guilty yesterday to conspiring to defraud the United States as part of the ongoing prosecution into dozens of individuals who fraudulently filed for more than $499,000 in pandemic unemployment benefits and committed mail fraud.
According to court documents, Melissa Hayes, 51, conspired with others, including those previously convicted as part of the ongoing prosecution, to file claims for pandemic unemployment benefits through the Virginia Employment Commission [VEC] website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including for numerous inmates incarcerated in southwest Virginia regional jails.
Conspiracy members lied on the filings as part of the scheme to make filers appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, those filing reverified and re-certified the false statements on numerous occasions throughout the scheme.
In all, the conspiracy filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid.
The aggregate actual loss for all fraudulent claims in which Hayes was directly involved is more than $70,000.
Hayes pleaded guilty to one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud. She is scheduled to be sentenced on July 26, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Daniel P. Bubar, Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation announced the guilty plea today.
The Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Bay Area Executives Charged with Conspiracy to Commit Wire FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Geoffrey M. Palermo and Adan Roldan, aka George Villanuevo, charging the defendants with conspiracy in connection with an alleged plot to bilk a California company of more than $1.5 million as part of a kickback scheme, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The indictment adds to charges filed by the grand jury against Palermo in June of last year.
According to the indictment, Palermo, 57, of Novato, Calif., was working as the manager of a Hilton hotel located in downtown San Francisco between 2008 and 2016. During this timeframe, Palermo had authority to enter into contracts, choose contractors, and otherwise manage construction and capital improvement projects at the hotel. Further, between January 2013 and June 2016, Roldan, 53, was the owner of a construction company, A. Roldan Construction, that Palermo hired to perform various construction projects at the San Francisco Hilton. The indictment describes how Palermo arranged for the review and approval of millions of dollars of checks paid from Hilton’s owners to A. Roldan Construction based on invoices submitted by Roldan’s construction company.
According to the indictment, much of the billing dispensed by Roldan’s construction company to the Hilton was contained in fraudulent and inflated invoices. In addition, the indictment explains that Roldan allegedly created and submitted the false and fraudulent invoices as part of the scheme to conceal kickbacks to Palermo. Specifically, Palermo continued to hire Roldan to perform work at the Hilton and arranged to have the fraudulent invoices paid while Roldan arranged to kick back part of the funds to Palermo. The indictment alleges that between January 2013 and June 2016, Palermo authorized issuance and payment to Roldan’s construction company of more than 450 checks totaling approximately $6.4 million.
The indictment also describes how Palermo and Roldan used various bank accounts to carry out their scheme. Most prominently, Roldan maintained an account entitled “Bahama Reef Living Trust” from which he withdrew funds to make payments to various accounts controlled by Palermo. For example, the indictment describes how Roldan deposited four checks in October of 2015 totaling approximately $145,915 from the Hilton’s owners into the construction company bank account. On the same day, Roldan then allegedly transferred $125,000 from the construction company account into the Bahama Reef account and then, again on the same day, wrote a check for $125,000 from the Bahama Reef account to an account controlled by Palermo. The indictment estimates that by writing checks from the Bahama Reef account to various bank accounts controlled by Palermo, Roldan funneled to Palermo kickbacks totaling approximately $1,535,965.
The indictment filed against Palermo and Roldan charges each defendant with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. The conspiracy charge carries a maximum statutory penalty of up to 20 years in prison and a $250,000 fine. These charges are in addition to a separate indictment against Palermo filed on June 30, 2020, in which he was charged with honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; wire fraud, in violation of 18 U.S.C. § 1343; and making a false statement in a loan application to an FDIC-insured lender, in violation of 18 U.S.C. § 1014. The honest services fraud charges carry the same maximum penalties as the wire fraud charges and the false statement charge carries a maximum of 30 years in prison and a $1,000,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the indictments are mere allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
The defendants are scheduled to make their initial appearances in federal court on May 13, 2021, before U.S. Magistrate Judge Thomas S. Hixson. The court will likely determine bond conditions at that time.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by the FBI.
Bank Robber Pleads GuiltyRead the Press Release
NEW ORLEANS – REGINALD LUMAR, age 29, a resident of New Orleans, pleaded guilty to two counts of bank robbery before the Honorable Susie Morgan, announced U.S. Attorney Duane A. Evans. LUMAR faces up to 20 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment fee, as to each count. Sentencing is currently scheduled for August 10, 2021.
According to count one of the indictment, on or about September 10, 2019, LUMAR and Byron Watson robbed the Total Choice Federal Credit Union located at 100 Palmetto Drive in LaPlace, Louisiana. They obtained approximately $7,000 in the robbery. According to count two of the indictment, on or about September 26, 2019, LUMAR and Watson robbed the Fidelity Bank located at 9099 Jefferson Highway, Jefferson, Louisiana. They obtained approximately $6,000 in that robbery.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, and Saint John Parish Sheriff’s Office. Assistant United States Attorney Jon Maestri is handling the prosecution.
Baltimore Man Sentenced to More Than Four Years in Federal Prison for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gerald Marshall, age 31, of Baltimore, Maryland, yesterday to 54 months in federal prison, followed by five years of supervised release, for conspiracy to engage in sex trafficking of a minor. Marshall admitted that he conspired to traffic two minor girls, ages 15 and 17, to engage in commercial sex acts. Judge Hazel ordered Marshall to pay $2,405 in restitution to each of the minor victims. Judge Hazel also ordered that, upon his release from prison, Marshall will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Russell E. Hamill, III of the Laurel Police Department.
According to Marshall’s plea agreement, beginning in or about January 2018, Marshall conspired with co-defendant Sean Dean to recruit, harbor, transport, and/or maintain three females, including two minors, to engage in commercial sex acts. In furtherance of the sex trafficking enterprise, Marshall rented hotel rooms in Timonium and Laurel, Maryland to be used by the victims to engage in commercial sex acts. Marshall and Dean transported the victims to the various hotels where they would stay for multiple days. While in the hotel rooms, at Dean’s direction the victims used a website to advertise themselves for commercial sex acts. The advertisements contained pictures of the victims in provocative poses and provided contact information for clients to use to secure a “date” with the victims. The victims were required to share a portion of the proceeds from any commercial sex acts with Dean.
As detailed in his plea agreement, during the first week of January 2018, Marshall and Dean transported the minor girls and the woman to a hotel in Timonium. The victims were at the hotel for approximately one week and met with multiple customers per day to engage in commercial sex acts. The victims shared a portion of the proceeds earned from their commercial sex acts with Dean.
During the second week of January, Marshall and Dean transported the victims to a hotel in Laurel, where they stayed for one or two days, engaging in commercial sex. On about January 11, 2018, Marshall and Dean transported the three females to a second hotel in Laurel. Marshall went to the front desk and obtained keys to the rooms intended for the two minor girls and the woman to use for commercial sex. Law enforcement subsequently responded to that hotel, after receiving a complaint about the smell of marijuana coming from the two rooms Marshall rented. The two minor females and the woman were located in the two rooms along with condoms and other items use in connection with their commercial sex acts.
Sean Dean, age 28, of Baltimore, previously pleaded guilty to conspiracy to engage in sex trafficking of a minor. Dean and the government have agreed that if the Court accepts the plea agreement Dean will be sentenced to 10 years in federal prison.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner commended HSI Baltimore and the Laurel Police Department for their work in the investigation and thanked the Baltimore County Police Department and the Federal Bureau of Investigation for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Joseph R. Baldwin and Elizabeth Wright, who are prosecuting the case.
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Baltimore Man Pleads Guilty to Participating in a Conspiracy to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – Victor Davis, age 41, of Baltimore, Maryland, pleaded guilty on May 4, 2021, to conspiracy to distribute and posses with the intent to distribute cocaine base (crack cocaine). As part of his plea agreement, Davis admitted that during his participation in the conspiracy the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from December 2019 through September 29, 2020, Davis conspired with at least two others to distribute crack cocaine in the area of the 2600 block of Greenmount Avenue and the 400 block of East Lorraine Avenue in Baltimore, Maryland, where Davis’s drug trafficking organization (DTO) operated a “drug shop.” Members of the DTO, including Davis, conducted multiple hand-to-hand sales of drugs to confidential informants.
Davis admitted that he sold crack cocaine to confidential informants on four different occasions. For example, on January 30, 2020, Davis sold two clear bags of crack cocaine to a confidential informant in exchange for $300. In February 2020, a witness observed Davis in a home in the 400 block of East Lorraine Avenue preparing crack cocaine for street-level distribution and discussed future purchases of narcotics. The witness also saw several guns in the home. Davis admitted that the firearms were used to protect the DTO business and, therefore, were possessed in furtherance of the drug conspiracy.
As detailed in the plea agreement, Davis sold a confidential informant two bags of crack cocaine base $600 on February 26, 2020 and again March 4, 2020. On March 18, 2020, the confidential informant purchased four bags of crack cocaine from Davis for $650 and discussed a potential firearm transaction. Davis told the confidential informant that he possessed a “joint,” which is a slang term for a firearm.
As detailed in the plea agreement, Davis agrees that it is reasonably foreseeable to him that the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
Davis and the government agreed that, if the Court accepts the plea agreement, Davis will be sentenced to five years in federal prison. U.S. District Judge Catherine C. Blake has not set a date for sentencing.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lindsey McCulley and Zachary B. Stendig, and Special Assistant U.S. Attorney Lindsay DeFrancesco who are prosecuting the case.
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Attorney General Merrick B. Garland's Statement on Missing and Murdered Indigenous Persons Awareness DayRead the Press Release
Attorney General Merrick B. Garland issued the following statement:
“Generations of American Indians and Alaska Natives have experienced violence or mourned a murdered or missing family member or loved one. The lasting effects of such trauma and suffering ripple across their communities.
“Today, we reaffirm our commitment to Tribes across the country who need and deserve our resources to help bring answers and justice to their grieving communities. In partnership with Tribal, federal, state and local agencies, the Justice Department is committed to finding lasting solutions to the public safety challenges Tribal communities encounter and to protecting them from violence, abuse, and exploitation.”
Arizona Man Sentenced to 46 Months in Prison for Conspiring to Distribute Five Kilograms of FentanylRead the Press Release
NEWARK, N.J. – An Arizona man was sentenced today to 46 months in prison for conspiring to distribute fentanyl and for possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.
Jose Manuel Ramos Lemus, 51, a citizen of Mexico residing in Arizona, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl. Judge Cecchi imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On July 6, 2019, Ramos Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had five kilograms of China White heroin for distribution. After leaving the vehicle, Ramos Lemus returned with a duffle bag containing five kilograms of fentanyl and was arrested.
In addition to the prison term, Judge Cecchi sentenced Ramos Lemus to three years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant United States Attorney Lauren E. Repole of the Economic Crimes Unit.
Alabama Doctor Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
An Alabama doctor and her husband were sentenced Tuesday to 52 and 30 months in prison, respectively, for prescribing and dispensing controlled substances without a legitimate medical purpose and outside the course of professional practice.
Elizabeth Korcz, M.D., 48, and Matthew Korcz, 47, both of Hoover, pleaded guilty to conspiracy to distribute and dispense a controlled substance on Dec. 16, 2020. According to court documents, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not examined by a medical professional and while Dr. Korcz was absent from their clinic. The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary. The defendants did not employ registered nurses or other qualified medical professionals, despite Dr. Korcz’s absences. The defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary while Dr. Korcz was out of state on multiple occasions.
“Doctors who abuse their position of trust to unlawfully prescribe opioids for profit are fueling our country’s epidemic,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The devastation to our communities caused by that betrayal of trust requires just punishment, as the court imposed.”
“It is disheartening when trusted medical professionals are engaged in the diversion of controlled substances,” said Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration (DEA). “Doctors have an obligation to ensure that prescription medications are getting into the hands of legitimate patients. This investigation is the result of DEA’s continued commitment to hold accountable those who participate in illegally dispensing controlled substances in our communities.”
“Health care professionals should be trusted and not exploit their profession to line their pockets,” said Special Agent in Charge Johnnie Sharp Jr of the FBI’s Birmingham Field Office. “I applaud the sentence handed down that holds the Korczs accountable for their greed, fraud and deceit. The FBI and our law enforcement partners will continue to root out fraud in the health care industry at every level and protect the public from their illegal and potentially deadly schemes.”
The DEA and FBI investigated the case.
Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama prosecuted the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
"Get Dat Money" Gang Leader Sentenced to 20 Years in Federal PrisonRead the Press Release
MACON, Ga.– The leader of Macon’s “Get Dat Money” (GDM) methamphetamine drug trafficking organization was sentenced to serve 20 years in prison as the result of a lengthy investigation into the network’s illegal activities throughout Middle Georgia.
According to court documents, on Tuesday, May 4, Kelvin D. Carswell, aka “K-9,” “Nine,” “Kinineso Harlem Carswell,” “9ne Oharlem,” “Kninepunkin KinGcarswell,” 41, of Macon, was sentenced to serve 240 months in federal prison to be followed by three years of supervised release after he pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 15, 2020.
The following individuals were also sentenced to prison on Tuesday, May 4:
Terrico Wade, 40, of Macon, was sentenced to serve 71 months in prison to be followed by three years of supervised release after he pleaded guilty to distribution of methamphetamine on December 15, 2020.
Quateshia Carswell, 27, of Macon, was sentenced to serve 48 months in prison to be followed by three years of supervised release after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on December 1, 2020.
Trent Burton, 50, of Macon, was sentenced to serve 48 months in prison to be followed by one year of supervised release after he pleaded guilty to use of communication facility on December 16, 2020.
Jahmi Booker, 38, of Macon, was sentenced to serve 10 months in prison to be followed by one year of supervised release after he pleaded guilty to use of communication facility on December 15, 2020.
Jacobi Jones, Sr., 35, of Macon, was sentenced to serve seven months in prison to be followed by one year of supervised release after he pleaded guilty to misprision of felony on December 21, 2020.
The following individuals were sentenced to prison on Monday, May 3:
Chad Cummings, 37, of Macon, was sentenced to serve 60 months in prison to be followed by three years of supervised release after he pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
Trayvion Burney, 27, of Macon, was sentenced to serve 33 months in prison to be followed by one year of supervised release after he pleaded guilty to misprision of a felony on January 27, 2021.
Henry Flowers, 32, of Macon, was sentenced to time served to be followed by one year of supervised release after he pleaded guilty to use of a communication facility on January 11, 2021.
The following defendants are awaiting sentencing:
Tabitha Whitehead, 36, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on December 21, 2020, and faces a maximum of twenty years imprisonment to be followed by at least three years of supervised release and a maximum fine of $1,000,000.
Davan Randolph, 49, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on December 15, 2020, and faces a maximum twenty years imprisonment to be followed by at least three years of supervised release and a maximum fine of $1,000,000.
Kelly Jones, 38, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years in prison to be followed by one year of supervised release and a maximum fine of $250,000.
Kewaunis King, 31, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years imprisonment to be followed by one year of supervised release and a maximum fine of $250,000.
U.S. District Judge Tilman E. “Tripp” Self, III handed down the sentences.
There is no parole in the federal system.
“Many lives have been undoubtedly damaged, even destroyed, due to the actions of Kelvin Carswell and the members of the ‘Get Dat Money’ drug trafficking organization. Carswell brazenly orchestrated a prolific meth trafficking organization from behind prison bars, and he has now received the maximum penalty provided by law. He, along with his co-conspirators, are being held accountable for their destructive choices,” said Acting U.S. Attorney Peter D. Leary. “The FBI and Bibb County Sheriff’s Office did an outstanding job investigating and ultimately shutting down this stream of methamphetamine into Middle Georgia.”
“Carswell and fellow members of the ‘Get Dat Money’ drug trafficking organization got serious prison time thanks to our partnerships with the Bibb County Sheriff Office and the U.S. Attorney’s Office,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Carswell’s actions, selling drugs from inside prison walls, were aberrant and unacceptable. The community can rest assured that this dangerous criminal organization is out of business.”
“This case illustrates the reach of a career criminal from even behind prison bars. Thanks to the determined work of Bibb Sheriff’s investigators and FBI agents, Kelvin Carswell and his associates will face the appropriate and undeniable consequences of their actions,” said Bibb County Sheriff David Davis.
According to the stipulation of fact entered into court, in 2017, the Macon office of the FBI and the Bibb County Sheriff’s Office initiated an investigation into the Carswell drug trafficking organization known as “Get Dat Money” or “GDM.” On May 30, 2012, Carswell had been incarcerated by the Georgia Department of Corrections, serving a sentence for attempted carjacking with a maximum release date of October 12, 2026. In June 2017, the FBI received information that Carswell was orchestrating the sale of drugs while incarcerated at the Washington State Prison in Sandersville, Georgia. A search of Carswell’s prison cell uncovered a quantity of drugs and a cellular phone with multiple SD cards. Investigators discovered Carswell was texting his co-conspirators explicit instructions via his contraband cell phone to facilitate the distribution of methamphetamine, heroin and crack cocaine from prison. The drugs, once obtained, were sold from a residence Carswell and his co-conspirators referred to as “The Mansion” located at 373 Fulton Street in Macon. Carswell’s co-conspirators would sell drugs out of “The Mansion” at his direction. Drugs were also sold by distributors working at the behest of Carswell at multiple motels located in Macon. Throughout the course of the conspiracy, Carswell’s co-conspirators obtained more than 10,000 grams of methamphetamine for distribution at his direction.
The FBI and Bibb County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Steven Ouzts prosecuted the case.
4 May 2021
Wyoming County Man Arrested, Charged with Receipt and Possession of Child PornographyRead 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 Ronald Longhini, 59, of Warsaw, NY, was arrested and charged by complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on January 21, 2021, an undercover law enforcement officer identified an IP address downloading videos of suspected child pornography from a peer to peer sharing network. The IP address was traced to the defendant’s residence in Warsaw. Similar videos of suspected child pornography were also downloaded in February and March 2021. The videos included pre-pubescent minors engaged in sexual acts with adults. On April 28, 2021, investigators seized several digital items during the execution of a search warrant at Longhini’s residence.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was held pending a detention hearing on May 6, 2021, at 2:45 p.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Steve Belongia; the Wyoming County Sheriff’s Office, under the direction of Sheriff Gregory J. Rudolph; and the Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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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