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Friday 12 March 2021
Members of Harrison County Drug Ring Sentenced for Methamphetamine TraffickingRead the Press Release
MARSHALL, Texas – Two Harrison County men were sentenced to prison today for federal drug trafficking and firearms crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Armando Ivan De La Torre, a.k.a. “Poncho,” pleaded guilty on Oct. 6, 2020, to possession with intent to distribute methamphetamine and use and carrying of a firearm during a drug trafficking crime. De La Torre was sentenced to 190 months in federal prison today by U.S. District Judge Rodney Gilstrap. Judge Gilstrap also sentenced Martin Lopez to 84 months in federal prison for possession with intent to distribute methamphetamine.
“Interagency cooperation between federal, state, and local agencies is essential in achieving our mission of dismantling drug trafficking organizations—from top to bottom—and disrupting the flow of drug-related crime and violence into our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those involved in this investigation serve as an example of how that cooperation brings about shared success.”
According to information presented in court, both men were members of an organization responsible for importing large quantities of methamphetamine from Mexico and distributing it in Marshall. The ring operated as both direct seller of methamphetamine, as well as a source-of-supply to other drug dealers.
On Feb. 19, 2020, De La Torre and Lopez were indicted by a federal grand jury along with seven other co-conspirators, and charged with violations of federal drug trafficking laws.
Operation Pine Curtain is a long-term drug trafficking and money-laundering investigation that has already resulted in the arrest and prosecution of numerous co-conspirators. Danny Brian Hernandez, Ronald Charles Parker, Daniel Ramirez, Guadalupe Salvador Diosdado, Erik Alberto Galindo, and Rachel Naomi Hernandez have pleaded guilty and have been sentenced. Andres Michael Martinez-Juarez, Cristian Leobardo Torres-Santana, Francisco Moreno, Fernie Moreno, Amanda Jean Crisp, and Damarcus Damon Armstrong have pleaded guilty and are awaiting sentencing. Several others have been arrested, pleaded not guilty, and are awaiting trial.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Maryland Woman Pleads Guilty in Rhode Island to Aggravated Identity TheftRead the Press Release
PROVIDENCE – An Abington, Maryland, woman appeared in U.S. District Court in Providence, RI, on Thursday and admitted that she used the stolen identity of a customer of a Maryland business where she was employed in June 2018 and stolen blank checks from two businesses to fraudulently obtain money and services, including for the rental of a home in southern Rhode Island.
Lauren Houck, 31, admitted to the court that she gained the personal identity of the customer and forged her signature on 83 checks totaling more than $291,400. Most of the funds were used to finance a lavish lifestyle.
Houck admitted that as part of her schemes, she used the stolen identity and stolen business checks for payment to rent a house in southern Rhode Island from November 2018 to December 2019. As payment, Houck submitted three stolen checks totaling $14,000, each containing the forged signature of the person whose identity she stole.
Appearing before U.S. District Court Judge William E. Smith, Houck pleaded guilty to aggravated identity theft, announced Acting United States Attorney Richard B. Myrus, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Houck is scheduled to be sentenced on May 27, 2021.
Aggravated identity theft is punishable by a statutory mandatory term of imprisonment of two years in federal prison, a fine of up to $250,000, and a term of up to one year of federal supervised release.
The case, investigated by the U.S. Postal Inspection Service and Rhode Isand State Police, is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Man Sentenced to 20 Years in Debit Card Theft SchemeRead the Press Release
A U.S. citizen who formerly resided in the Dominican Republic has been sentenced to 20 years in federal prison for his role in a scheme to steal debit cards from bank customers, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Gregory Jean-Louis, a 46-year-old U.S. citizen living in the Dominican Republic at the time of his crime, was charged with fraud conspiracies in the Northern District of Texas and in the Southern District of Florida in 2019 and 2020, respectively. The Florida case was transferred to the Northern District of Texas, and Mr. Jean-Louis pleaded guilty in both cases to charges of conspiracy to commit bank fraud and access to device fraud. He was sentenced today by U.S. District Judge Reed O’Connor to 240 months in federal prison and was ordered to pay more than $3.3 million in restitution to Bank of America and Citizens Bank.
During the sentencing hearing, internal investigators from Bank of America and Citizen’s Bank testified about their years-long investigation into the fraud, which revealed that the defendant and his coconspirators had victimized hundreds of customers.
According to plea papers, Mr. Jean-Louis admitted that he and his coconspirators used stolen PII (personal identification information) to obtain debit cards in the names of customers of Bank of America and Citizens Bank.
Posing as actual customers of the financial institutions, Mr. Jean-Louis – also known to his coconspirators as “G.” – reached out to the banks, requesting that they mail duplicate debit cards and PIN numbers to customers’ actual addresses.
He then directed coconspirator “runners” to steal the debit cards and PIN numbers from the customers’ mailboxes, and to send him photos of the cards and PINs so he could activate them.
Using the fraudulently obtained cards, the group withdrew thousands of dollars from customers’ accounts from ATMs across the country, including in Texas, New York, Massachusetts, Rhode Island, Connecticut, California, and Pennsylvania. Much of the money was wired to Mr. Jean-Louis.
The United States Postal Inspection Service conducted the investigation; the U.S. Marshals Service assisted in Mr. Jean-Louis’ apprehension. Assistant U.S. Attorney Rob Boudreau prosecuted the case.
Man Sentenced in Ft. Pierce to over 12 Years in Prison for Smuggling Migrants by Sea as Hurricane ApproachedRead the Press Release
Miami, Florida – Yesterday, a federal judge in Ft. Pierce sentenced a Bahamian man to 151 months in prison for trying to smuggle migrants into the United States on a poorly-equipped and overloaded boat while the area was under a hurricane warning.
According to court documents, on the night of July 30, 2020, Vonne Rolle, 29, of Coopers Town, Bahamas, attempted to pilot a vessel from Freeport, Bahamas, to the St. Lucie Inlet, with twelve migrants on board. At the time, the area was under a hurricane warning due to the approaching storm, Isaias. The vessel, which was overloaded and not equipped with food, water, or life jackets, broke down prior to arriving in Florida. It drifted until a boater discovered it the next day. The United States Coast Guard rescued Rolle and the other migrants, including a minor, 26 miles off the coast of Stuart, Florida. Rolle was arrested and charged. On December 11, 2020, Rolle pled guilty to migrant smuggling.
Rolle was convicted and sentenced in 2016 on a separate alien smuggling charge investigated by HSI in Fort Pierce, Florida. Rolle was previously deported from the U.S. in April 2018.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami investigated this case, with assistance from the U.S. Coast Guard and U.S. Border Patrol. Assistant U.S. Attorney Justin Hoover is prosecuting the case.
You may find related court documents and information 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 20-14029-CR-JEM.
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Man Sentenced for Attempting to Board International Flight with a Loaded FirearmRead the Press Release
Assistant U.S. Attorney Jaclyn Stahl (619) 546-8456
NEWS RELEASE SUMMARY – March 12, 2021
SAN DIEGO – Elan Leroy Gwynn, a San Diego resident, was sentenced today to nine months in custody for attempting to board an international flight from San Diego International Airport to London with a loaded gun in his carry-on luggage.
According to admissions in his plea agreement, Gwynn proceeded through the Transportation Security Administration (TSA) security checkpoint on March 17, 2020. Gwynn placed his carry-on luggage on the conveyor belt for the X-ray machine, and TSA officers identified an object that appeared to be a loaded firearm.
Officers with the San Diego Harbor Police responded and discovered, loose in the bottom of Gwynn’s bag, a Glock 19 replica ghost gun with a fifteen-round magazine, loaded with eleven 9-millimeter rounds of ammunition. A ghost gun is a firearm made by an individual without a serial number or other identifying markings. Ghost guns are illegal under California law. Gwynn was also in possession of several grams of methamphetamine. The FBI responded and placed Gwynn under arrest.
U.S. District Judge Janice L. Sammartino also ordered Gwynn to pay a $5,000 fine and ordered forfeiture of the gun and ammunition seized in this case.
“Firearms have no place on airplanes and pose a serious threat to all aboard,” said Acting U.S. Attorney Randy Grossman. “If individuals engage in this type of dangerous behavior, the FBI and the U.S. Attorney’s Office will investigate and bring appropriate charges.” Grossman thanked Assistant U.S. Attorney Jaclyn Stahl as well as the FBI, San Diego Harbor Police and TSA for their excellent work on this case.
“The FBI's Joint Terrorism Task Force (JTTF) is available to respond immediately to investigate federal violations of law that threaten the safety of airline passengers,” said FBI Special Agent in Charge Suzanne Turner. “The safety of the flying public is a priority for the FBI.”
The FBI and U.S. Attorney’s Office will continue to dedicate resources to investigations related to national security and criminal activity at San Diego air, land, and sea ports. This case was investigated by the San Diego FBI and the U.S. Attorney's Office, with support from San Diego Harbor Police and the Transportation Security Administration. Other agencies supporting the FBI include, the Department of Homeland Security, U.S. Customs and Border Protection, the Federal Aviation Administration, and the San Diego Port Authority.
DEFENDANT Case No. 20-CR-1188-JLS
Elan Leroy Gwynn Age: 36 San Diego, California
SUMMARY OF CHARGES
Carrying a weapon or explosive on an aircraft, in violation of 49 U.S.C. § 46505.
Maximum Penalty: Ten years in prison; $250,000 fine.
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Harbor Police
Transportation Security Administration
Man Charged in Yosemite National Park Sexual AssaultRead the Press Release
FRESNO, Calif. — A five‑count indictment was unsealed today charging Charles Porter, 30, formerly of Chino Hills, charging him with assault with intent to commit aggravated sexual abuse, assault with the intent to commit abusive sexual contact, attempted aggravated sexual abuse, abusive sexual contact, and assault by striking, beating or wounding, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 14, 2020, in Yosemite National Park, Porter assaulted the victim while making non-consensual sexual contact with him in an attempt to sexually assault the victim.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorneys Katherine E. Schuh and Laura Jean Berger are prosecuting the case.
If convicted, Porter faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lone Rock Man Sentenced for Social Security FraudRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Christopher M. Hynek, 47, of Lone Rock, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 1 year and 1 day in prison for Social Security fraud and ordered to pay restitution in the amount of $98,256. Hynek pleaded guilty this charge on September 1, 2020.
According to a 2018 grand jury indictment, Hynek made a claim to his private disability insurer in 2002 for injuries he had suffered to his arms in 2000. He then filed a claim for Social Security Disability Insurance benefits in 2003, alleging the same injuries.
While receiving benefits, Hynek was working at his parents’ printing business, Hynek Printing in Richland Center, Wisconsin, and subsequent printing businesses that Hynek Printing later acquired as it expanded. The fact that Hynek continued to work made him ineligible for Social Security disability benefits, but Hynek concealed and failed to disclose his work activity and money from the business that he was paid “under the table,” as the judge found.
In explaining the need for a prison sentence, Judge Conley noted the seriousness of the offense and observed that Hynek perpetrated a “prolonged fraudulent scheme out of greed.”
“This sentencing should stand as a warning to those who would conceal information from SSA to receive benefits—we will hold you accountable,” said Inspector General Ennis. “The Office of the Inspector General will continue to ensure the integrity of SSA’s programs, which provide a critical safety net for those who cannot work.”
The charge against Hynek was the result of an investigation conducted by the Social Security Administration Office of the Inspector General. The prosecution of the case has been handled by Assistant U.S. Attorneys Robert Anderson and Zachary Corey.
Little Rock Woman Sentenced to 41 Months in Prison for COVID Relief FraudRead the Press Release
LITTLE ROCK—A Little Rock woman was sentenced to 41 months in federal prison after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the sentence of Ganell Tubbs, 41.
Tubbs pleaded guilty to bank fraud in December 2020 and admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.
The indictment, which was returned by a grand jury on July 7, 2020, charged Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs’ earlier guilty plea to one count of bank fraud was received in exchange for dismissal of the remaining charges.
United States District Judge Brian S. Miller imposed the sentence, which included two years of supervised release in addition to the 41 month prison sentence. Judge Miller also ordered Tubbs to pay $14,000 restitution, as the rest of the nearly $2 million was able to be recovered previously. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey prosecuted the case.
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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
Lexington Woman Gets 10 Years in Federal Prison on Drug ChargesRead the Press Release
Columbia, South Carolina – Acting United States Attorney M. Rhett Dehart announced today that Ashley Shay Cook, 38, of Lexington, was sentenced to ten years in federal prison after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and cocaine.
Evidence presented in court established that on December 21, 2018, deputies with the Lexington County Sheriff’s Department responded to Cook’s residence in search of a wanted person known to frequent the residence. After consent to search the residence for the fugitive, law enforcement observed drug paraphernalia in plain view. Law enforcement obtained and executed a search warrant on the residence and located approximately 241 grams of methamphetamine, approximately 2 grams of cocaine, baggies commonly used to package drugs for individual sales, and digital scales. After waiving her Miranda rights, Cook admitted to possessing the drugs and making drug sales. Cook was on probation at the time of the instant offense.
United States District Judge Mary Geiger Lewis sentenced Cook to 120 months in federal prison, followed by 48 months of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 10 was:
Holly Michele Hedberg, 38, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Hedberg faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 20-109.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Gunrunner and his accomplices sentenced for trafficking more than 100 firearms from Georgia to MarylandRead the Press Release
ATLANTA – Warren Vernell Robertson, III, a prolific gun trafficker, along with two of his accomplices, has been sentenced for a variety of federal offenses involving the illicit resale of Georgia-sourced firearms on the streets of Baltimore, Maryland.
“Criminals who unlawfully traffic in firearms often only export crime and violence to other communities,” said Acting U.S. Attorney Kurt R. Erskine. “The impact of gun trafficking on our communities is especially acute now, given the uptick in violent crime occurring in many cities.”
“These defendants put guns in the hands of criminals,” said Arthur Peralta, ATF Atlanta Special Agent in Charge. “ATF will continue to focus its attention on anyone who chooses to arm criminals and willfully contribute to the violence harming our communities.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From 2018, through the date of his arrest in mid-2020, Robertson trafficked more than 100 firearms from Georgia to Maryland. During that time, Robertson paid at least four other people, including co-defendant Asante Moore, to unlawfully purchase firearms on his behalf. Robertson also purchased firearms online using nearly a dozen fictitious names and email addresses. Robertson then sold the firearms in Baltimore.
Several of the guns trafficked by Robertson were recovered by law enforcement officers and from individuals involved in criminal activities. For example, ATF agents in Maryland seized nearly a dozen pistols and a rifle from inside a rental car Robertson had driven from Atlanta. Additionally, only weeks after Moore purchased a semiautomatic pistol for Robertson, Baltimore police officers recovered the firearm from a drug dealer. The pistol was fully loaded at that time.
In addition, during the first three months of 2020, Moore purchased more than 20 guns for Robertson. On March 16, 2020, Moore, Robertson, and Robertson’s cousin, Erik Alfonso Cohen, Jr., traveled together to a pawn shop in Jonesboro, Georgia, to purchase three of those guns. At the time, Cohen was prohibited from possessing firearms because he had been convicted of a weapons-related offense in Maryland. Robertson’s criminal history also included convictions for drug possession and other offenses.
All three defendants pleaded guilty to the following offenses and were sentenced by U.S. District Judge Leigh Martin May:
- Warren Vernell Robertson, III, 25, of East Point, Georgia and Aberdeen, Maryland, was sentenced on March 10, 2021, to three years in prison, to be followed by three years of supervised release. He pleaded guilty on November 20, 2020, to the offense of making a false statement to a licensed firearms dealer.
- Erik Alfonso Cohen, Jr., 23, of Edgewood, Maryland, was sentenced on March 3, 2021, to one year, six months in prison, to be followed by three years of supervised release. Cohen pleaded guilty on December 3, 2020, to the charge of unlawful possession of a firearm.
- Asante Moore, 24, of Atlanta, Georgia, was sentenced on December 2, 2020, to three months in prison to be followed by three years of supervised release. Moore pleaded guilty on September 9, 2020, to the offense of unlawfully dealing in firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Attorney’s Office for the District of Maryland provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
This case was also brought as part of Project Guardian, a national Department of Justice initiative to reduce gun violence and enforce federal firearms laws, including those related to firearms trafficking. More information about Project Guardian can be found at https://www.justice.gov/projectguardian.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gift Stores Owner Pleads Guilty to Unlawfully Prescribing and Distributing Controlled Substances and Prescription Drugs, Generating Nearly $1.7 Million in SalesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas gift stores owner pleaded guilty today to the unlawful prescription and distribution of controlled substances and prescription drugs at her two stores, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada.
Patricia Padilla, 62, of Las Vegas, pleaded guilty to one count of conspiracy to distribute a controlled substance, and one count of conspiracy to import prescription drugs and distributing prescription drugs when not licensed as an importer, wholesaler, a pharmacist, and practitioner. U.S. District Judge James C. Mahan scheduled a sentencing hearing for June 11, 2021.
According to court documents and admissions made in court by Padilla, she owned and operated Sinaloa Store, Inc. (from approximately May 30, 2013 to August 18, 2020) and Deportes Y Mas Store, Inc. (from May 2019 to August 18, 2020), both gift stores in Las Vegas. Padilla would meet “patients” with an alleged medical problem or condition in a back room of a store. On a note card, she would write a “prescription” for controlled substances to treat the alleged medical problem or condition. The patient would then pay an employee at the front of the store to “fill” the prescription. To ensure the stores’ drug inventories were stocked, Padilla conspired with others to import prescription drugs and controlled substances in bulk quantities from Mexico and El Salvador into the United States.
Padilla has no state or federal license that would have permitted her to lawfully prescribe, distribute, or dispense controlled substances. The total amount of drug proceeds seized from Padilla during the investigation was $1,698,655.60.
The maximum statutory penalties faced by Padilla are: (a) 10 years in prison for conspiracy to distribute a controlled substance; (b) five years in prison for conspiracy to import prescription drugs and distributing prescription drugs when not licensed as an importer, wholesaler, a pharmacist, and practitioner; (c) a period of supervised release; and (d) a monetary fine.
The case was investigated by the Drug Enforcement Administration and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Peter S. Levitt is prosecuting the case.
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Four Additional Members of Los Angeles-Based Fraud Ring Indicted for Exploiting COVID-Relief ProgramsRead the Press Release
A federal grand jury in Los Angeles returned a superseding indictment, unsealed Thursday, charging four additional individuals for their alleged participation in a scheme to submit over 150 fraudulent loan applications seeking over $21.9 million in COVID-19 relief funds guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Manuk Grigoryan, 27, of Sun Valley, California; Arman Hayrapetyan, 38, of Glendale, California; Edvard Paronyan, 40, of Granada Hills, California; and Vahe Dadyan, 41, of Glendale, were each charged in a superseding indictment filed in the Central District of California with one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit money laundering.
Grigoryan, Hayrapetyan, and Paronyan were each also charged with 11 counts of wire fraud and eight counts of bank fraud. In addition, Grigoryan and Hayrapetyan were each charged with one count of aggravated identity theft. Vahe Dadyan was charged with six counts of wire fraud, three counts of bank fraud, and one count of money laundering.
Grigoryan, Paronyan, and Vahe Dadyan made their initial court appearances before U.S. Magistrate Judge Maria A. Audero of the U.S. District Court for the Central District of California. If convicted, each defendant faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The superseding indictment adds charges to previously charged co-defendants Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, and Tamara Dadyan for wire fraud, bank fraud, conspiracy to commit money laundering, and aggravated identity theft.
According to the superseding indictment, the defendants conspired together, and with others, as part of a disaster-relief loan fraud ring based in and around Los Angeles, California, and used the fraudulently obtained funds as down payments on luxury homes and to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags and clothing, cryptocurrency, and securities.
Richard Ayvazyan and Tamara Dadyan are also charged with committing crimes while they were released on bond awaiting trial. Richard Ayvazyan is charged with five counts of money laundering, and Tamara Dadyan is charged with one count of attempted bank fraud. The superseding indictment alleges that Richard Ayvazyan continued to use his alias “Iuliia Zhadko” to launder the proceeds of the scheme, including by using the money to buy cryptocurrency and securities. As alleged, Tamara Dadyan repeatedly lied to a bank as part of a scheme to unlawfully obtain disaster-relief funds that had been frozen in an account that she had fraudulently opened using a stolen identity.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tracy L. Wilkison of the U.S. Attorney’s Office for the Central District of California; Special Agent in Charge Kristi Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office; Special Agent in Charge Weston King of the Small Business Administration’s Office of Inspector General (SBA-OIG) Western Region; and Special Agent in Charge Jay N. Johnson of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG) Western Region made the announcement.
The FBI, IRS-CI, SBA-OIG, and FHFA-OIG are investigating the case.
Trial Attorney Christopher Fenton of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Brian Faerstein and Scott Paetty of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program. In April 2020, Congress authorized over $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Sheriff’s Captain Sentenced to Prison for Illegal Gun Deals and CorruptionRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961
NEWS RELEASE SUMMARY – March 12, 2021
SAN DIEGO – Former San Diego County Sheriff’s Captain Marco Garmo was sentenced to two years in prison today for years of unlawful firearms transactions and for an array of corrupt conduct relating to unlicensed marijuana dispensaries operating in his former jurisdiction.
In pronouncing sentence, U.S. District Judge Gonzalo Curiel said that Garmo’s conduct demonstrated arrogance reaching a level where Garmo was “almost becoming a mob boss of sorts” in picking winners and losers and dispensing unlawful favors to friends and family.
Garmo admitted in pleading guilty in September that he had acted as an unlicensed firearm dealer, buying almost 150 weapons and re-selling almost 100 over a period of roughly six years. A number of those transactions involved “straw purchases,” where Garmo acquired firearms for others by falsely claiming that they were for him. This was an important part of Garmo’s firearms dealing because California law limits the initial purchase of certain newer handguns to law enforcement officers only.
In his plea agreement, Garmo admitted that one of his goals in selling so many guns was profit, but another was to curry favor with prominent county residents whom he expected might support his planned run for Sheriff of San Diego County.
Garmo also acknowledged tipping off an illegal marijuana dispensary that he believed was about to be searched by Sheriff’s deputies, in order to give an advance warning to his cousin, who was one of the dispensary’s owners. The unlawful cannabis operation cleared its shelves of cash and valuable products the same night it received Garmo’s warning. And once the dispensary had reopened—after receiving the all-clear from Garmo the following morning—Garmo’s cousin sought his help again weeks later, after the premises was posted with an abatement notice. The warning would have required the dispensary to close its doors and cease its lucrative business, but Garmo forwarded it to an acquaintance employed at the county and asked “Can we push it back?” Garmo’s associate replied, “Yes you can.”
Court documents explain how Garmo also bent his public authority for his private gain by pitching a corrupt “consulting” arrangement to another property owner whose premises had been condemned for hosting a different unlicensed marijuana dispensary. While acting as the chief law enforcement officer in charge of eradicating such unlawful activity, Garmo suggested that the landlord hire Garmo’s co-defendant Waiel “Will” Anton along with Garmo’s associate at the County as outside “consultants” to reopen his property. According to his plea agreement and court filings, Garmo had secretly arranged with the County associate for Garmo to receive a 10 percent kickback on the fees. When the landlord declined the offer, Garmo told the County employee to have the County “piss on” him by way of retaliation.
“This investigation uncovered blatant and repetitive violations of the public trust by a senior law enforcement officer,” said Attorney for the United States Linda Frakes. “Garmo was sworn to uphold the law, but instead he abused his authority and the legal privileges he enjoyed as a police officer for his own personal benefit, and then lied to cover it up. The U.S. Attorney’s Office is committed to ensuring that no public official is above the law.”
Garmo’s unlawful conduct persisted despite repeated warnings and admonitions from his superiors, the ATF, and the San Diego County District Attorney’s Office, according to court filings. Garmo’s firearms dealing resulted in a prior disciplinary warning and his near prosecution by state authorities in 2017, but nevertheless continued with only minor alterations designed to avoid further scrutiny. Garmo’s efforts to avoid answering for his conduct continued even after he was confronted by FBI and ATF agents in February 2019, when he lied repeatedly during an interview. As he admitted in his plea agreement, Garmo lied to agents about tipping off marijuana dispensaries, conducting straw purchases, and receiving money from Anton as part of a separate kickback scheme.
In that enterprise, Anton had set up a different “consulting” venture in which he offered services to applicants for permits to carry a concealed weapon from the County. In exchange for substantial fees, Anton would help his applicants submit their paperwork and secure an appointment with the civilian County staff that processed them. As set out in Court records, Anton’s services included an eight-month reduction in the wait time for the initial appointment with the County—a service that Anton could provide because he had built an unusual relationship with County staff. In particular, the indictment alleges that Anton made an illegal cash payment to a County clerk who ensured favored treatment for his clients. Garmo admitted in his plea papers that his role in Anton’s scheme was to refer “consulting” clients to Anton in exchange for kickbacks of $100 apiece.
According to the indictment, Garmo was a Sheriff’s deputy for the San Diego County Sheriff’s Department for almost 27 years until September 20, 2019. In his plea, Garmo admitted that he was engaged in the unlawful acquisition, transfer, and sale of firearms during his entire tenure as the Captain of the Rancho San Diego Station.
In fact, one of Garmo’s firearms transactions involved a brazen sale inside the Captain’s Office of the Rancho San Diego Station on October 28, 2016. Garmo admitted that on that date, he and co-defendant Giovanni Tilotta (a licensed San Diego gun dealer) sold a Glock handgun, an AR-15 style rifle, and a Smith & Wesson handgun to local defense attorney Vikas Bajaj inside Garmo’s office. Garmo coordinated backdated paperwork to avoid the 10-day waiting period required by California law for handgun purchases, and Garmo supplied Bajaj with misappropriated San Diego Sheriff’s Department-issued ammunition. Garmo acknowledged that this sale violated California law, which requires firearms sales to be conducted at a handful of specific locations such as the dealer’s premises.
Bajaj entered his own guilty plea on December 9, 2020, to a misdemeanor charge of aiding and abetting Tilotta with the entry of false records during the unlawful October 28 sale. According to Bajaj’s plea agreement, he knew that the firearms transfer records were backdated and falsified, but signed the forms and went ahead with the transfer regardless. U.S. Magistrate Judge Jill L. Burkhardt sentenced Bajaj to one year of probation and ordered him to forfeit all four firearms involved in the transaction.
Garmo’s co-defendant and prominent San Diego jeweler Leo Hamel pleaded guilty in November 2019 to aiding and abetting Garmo’s unlicensed dealing. Hamel admitted working with Tilotta to create falsified records to make Garmo’s firearms straw purchases appear legitimate. Hamel also acknowledged that Garmo benefited from his arrangement with Hamel by securing Hamel’s future support for Garmo’s anticipated campaign for Sheriff of San Diego County. Former Sheriff’s Lieutenant Fred Magana pleaded guilty at the same time, acknowledging his role in the straw purchase of two handguns at Tilotta’s gun shop for Hamel.
The next hearing in the ongoing case against Anton and Tilotta is set for April 29, 2021 before Judge Curiel.
In total, approximately 297 firearms and 131,458 rounds of ammunition have been forfeited as part of this investigation. Garmo was also sentenced to pay a fine of $8,350.
Frakes praised the lead prosecutors on the case, Assistant U.S. Attorneys Nicholas Pilchak and Andrew Haden, as well as the talented and dedicated investigators from the ATF and FBI. Frakes added that the U.S. Attorney’s Office wishes to extend its sincerest gratitude to the San Diego County Sheriff’s Department for initiating this investigation, and for their assistance and support throughout its course.
“ATF’s mission of deterring illegal firearms trafficking and violent gun crime is best addressed through cooperative efforts with our partner law enforcement agencies,” said ATF Los Angeles Special Agent in Charge Monique Villegas. “This is an excellent example of working with multiple agencies to protect the public and increase public safety. ATF pledges an unwavering commitment to targeting, identifying and investigating trafficking schemes that divert firearms from lawful commerce into the illegal marketplace.”
FBI Special Agent in Charge Suzanne Turner said, “Former San Diego Sheriff's Department Captain Marco Garmo failed his department, his sworn oath, and the public trust. Today’s sentence demonstrates that no one is above the law – not even a high-ranking law enforcement official. This case demonstrates the FBI's commitment to investigating public corruption at all levels and highlights our dedication to preserving public confidence in law enforcement. SAC Turner further stated, “I want to commend the San Diego Sheriff's Department and the ATF for their partnership and commitment to fully investigating the corrupt actions by this former law enforcement officer.”
U.S. v. Garmo, et. al, 19-CR-4768-GPC
Defendants
Morad Marco Garmo, 52 years old
Leo Joseph Hamel, 62 years old
Giovanni Vincenzo Tilotta, 38 years old
Fred Magana, 42 years old
Waiel Yousif Anton, 35 years old
Summary of Charges
Title 18, U.S.C., Sec. 922(a)(1)(A) – Engaging in the Business of Dealing in Firearms Without a License
Maximum Penalty: Five years in prison
Investigating Agencies
Bureau of Alcohol Tobacco Firearms & Explosives (ATF)
Federal Bureau of Investigation (FBI)
*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty.
Former Rohnert Park Police Officers Charged with Conspiracy to Commit Extortion and Related Charges in Marijuana Seizure SchemeRead the Press Release
SAN FRANCISCO – The United States Attorney’s Office for the Northern District of California unsealed charges today in a criminal complaint charging former Rohnert Park police officers Brendon Jacy Tatum and Joseph Huffaker with conspiracy to commit extortion under color of official right, announced Acting United States Attorney for the Northern District of California Stephanie M. Hinds, FBI Special Agent in Charge Craig D. Fair, and Internal Revenue Service-Criminal Investigations Acting Special Agent in Charge Michael Daniels. Tatum also is charged with falsification of records in a federal investigation and tax evasion.
According to the complaint, Tatum, from Santa Rosa, and Huffaker, from Rohnert Park, were employed as officers by the City of Rohnert Park Department of Public Safety Police Services Patrol Division (RPDPS). Tatum was employed with RPDPS between 2003 and 2018, and Huffaker was employed with RPDPS between 2012 and 2019. RPDPS operated an interdiction team between 2014 and early 2017 that conducted traffic stops on vehicles along Highway101 between Cloverdale and Rohnert Park in a program designed to seize illegal drugs. Tatum and Huffaker were both assigned to the interdiction team at various times between 2015 and January 2017—when interdiction operations were terminated by RPDPS.
The criminal complaint describes how Tatum and others allegedly conducted numerous interdictions while on duty, in which Tatum is alleged to have extorted at least $3,700 in cash and significant amounts of marijuana from victim drivers they stopped along Highway 101, by threatening to arrest them and seize the assets and marijuana if the victim drivers did not consent to the seizures. In these cases, Tatum and the other officers made no reports of the seizure, did not submit the marijuana or assets into evidence, and sought no destruction orders for the marijuana. These seizures were completely undocumented by the officers, contrary to policy, but were captured in audio and video footage from the officers’ body-worn cameras.
The undocumented stops and seizures allegedly occurred even after termination of the interdiction team’s operations. On December 5, 2017, the complaint alleges, Tatum and Huffaker stopped a driver along Highway 101. Neither were wearing RPDPS uniforms and they claimed to be ATF agents. The complaint alleges Tatum and Huffaker extorted marijuana from the victim driver and the seizure went completely undocumented. Again, on December 18, 2017, Tatum and another officer stopped another driver carrying 23 pounds of marijuana, packaged in one-pound bags, labeled by date and strain. That driver also had four crates of hash, all destined for a dispensary lab. Again, Tatum and the other officer were not in RPDPS uniforms and identified themselves as ATF agents when they told the driver they would either arrest him and seize the marijuana and hash, or the driver could agree to let them take the marijuana. Tatum and the officer took the marijuana.
In February 2018, the press began reporting on robberies along Highway 101 by purported law enforcement agents, and specifically the robbery that took place on December 5, 2017. These reports indicated that the victims had been interviewed by the FBI. The criminal complaint alleges that Tatum responded by drafting a press release claiming RPDPS was responsible for the December 5, 2017 stop, and then prepared a false police report to conceal his criminal activity.
The complaint also alleges that during 2016, at the same time Tatum was extorting marijuana from drivers along Highway 101, he made hundreds of thousands of dollars in cash deposits into his own accounts, as well as his wife’s bank account. The complaint explains that the deposits all were made in amounts under $10,000, in an apparent attempt to avoid banking laws requiring disclosure of the deposits. In addition, during the same period, Tatum used approximately $46,000 in cash that did not come from any of his accounts to purchase a fishing boat. In summary, the cash deposits into Tatum’s and his family members’ accounts during that year, along with the cash used to purchase the fishing boat, totaled $443,059. The complaint alleges all these assets went unreported on Tatum’s tax returns for 2016.
“The public entrusts police officers to enforce the law,” said Acting U.S. Attorney Hinds. “The public faith erodes when that trust is violated. The abuse of police powers cannot be tolerated and must be vigorously prosecuted.”
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant. The Rohnert Park Department of Public Safety cooperated fully with the FBI to put a stop to this serious breach of public trust and to hold these individuals accountable for their actions,” said FBI Special Agent in Charge Craig Fair. “There is no greater responsibility for law enforcement than to abide by the oath of office and respect the Constitutional rights of all people.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, like Tatum, allegedly deposits large amounts of cash below the Currency Transaction Reporting requirements to evade any filings by financial institutions and evade income taxes from the IRS,” said IRS Criminal Investigation, Acting Special Agent in Charge Michael Daniels. “With both law enforcement and financial investigation expertise, our agents are uniquely qualified to follow these types of financial transactions. Today’s action show the IRS is committed pursing justice for all including those who violate the public trust.”
In sum, Tatum and Huffaker are charged with conspiracy to commit extortion under color of official right, in violation of 18 U.S.C. § 1951. In addition, Tatum is charged with falsifying records in a federal investigation, in violation of 18 U.S.C. § 1519, and tax evasion, in violation of 26 U.S.C. § 7201.
A complaint merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Tatum and Huffaker are scheduled to make their initial appearance on March 12, 2021, before the United States Magistrate Judge Sallie Kim.
If convicted, the defendants face a maximum sentence of 20 years in prison, 3 years of supervised release, and a fine of $250,000 on the conspiracy charge. In addition, Tatum faces a maximum statutory sentence of 20 years on the false records charge and 5 years on the tax evasion charge. 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 the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. This case is being investigated by the FBI and the IRS-CI.
Former Federal Prison Official and Factory manager at USP-Marion Sentenced to PrisonRead the Press Release
Benton, Ill. – Shawn E. Whitecotton, 50, of Herrin, Illinois, was sentenced to 16 months
confinement today, consisting of 8 months in federal prison and 8 months of home confinement after
his release. At his sentencing, United States District Court Judge Staci M. Yandle agreed with
federal prosecutors that Whitecotton knowingly obtained thousands of dollars by abusing
his management position at the federal penitentiary at Marion, Illinois (USP-Marion), lied about
it, and then obstructed justice while trying to cover up his scheme.“It is important for the community to have faith in our institutions, including our federal
prisons,” U.S. Attorney Steven D. Weinhoeft said. “We will always hold public officials
accountable if they abuse positions of public trust for their own financial benefit.”“Whitecotton failed to inform the government that, while he was a UNICOR factory
manager, he was also being paid directly by a contractor he oversaw; and he doubled down when he
thought he’d get caught. Today’s sentencing shows that there is no place for lying and deceit among
federal employees,” said William J. Hannah, Special Agent in Charge of the Department of Justice
Office of the Inspector General Chicago Field Office.Whitecotton was a career federal corrections officer and served as the factory manager of the
UNICOR manufacturing facility operating within USP-Marion. ¹ In 2014, USP-Marion’s UNICOR
facility contracted with a private company, PGB Hanger, Inc. (“PGB”), to manufacture wire clothing
hangers. As factory manager, Whitecotton was directly responsible for the PGB contract.
Shortly after the work began, Whitecotton approached PGB’s owner and offered to work for PGB as a
salesperson – in direct violation of government ethics rules. PGB agreed and they signed a
written contract setting Whitecotton’s compensation at $1,500.00 a month, plus a
commission for each hanger sold on new accounts and a monthly phone allowance. He
then accepted over $20,000.00 in payments from PGB during the following year.
¹ UNICOR is a wholly-owned government corporation administered by the Bureau of Prisons (BOP) that
operates manufacturing facilities in certain BOP facilities. The goal is to prepare federal inmates
for successful reentry into society by providing them with job training and work skills. UNICOR
hires BOP inmates to work in its factories,
at different locations. In some circumstances, UNICOR contracts with private vide product
manufacturing services.In 2015, while Whitecotton was continuing to work for PGB as a salesperson, he became aware that
federal investigators were interviewing staff and inmates working in his factory. Worried
that his prohibited job with PGB might be exposed, Whitecotton concocted a cover-up. He amended
documents to make it appear that his son had been working for PGB, as opposed to Whitecotton. He
also instructed PGB’s owner not to cooperate with investigators if anyone asked for an interview.
Whitecotton further told PGB’s owner that if he did agree to speak to investigators,
the owner should say that Whitecotton’s son, not Whitecotton, had been working with PGB as a
salesperson and receiving payments for the past year.
Whitecotton further attempted to conceal his prohibited job with PGB by making false statements on
certified government forms. As a supervisory employee in the executive branch of the United States,
Whitecotton was required to annually report his financial interests, any outside employment
activities, and any positions held outside his role at the prison. The purpose of this requirement
was to uncover any possible conflicts of interest a supervisory employee may have in the
performance of his or her duties. The forms specifically required Whitecotton to disclose any
sources of income over $200. At the time, Whitecotton had received over $20,000 in payments from
PGB, but he knowingly failed to disclose that information, to prevent federal investigators from
discovering the truth.In December 2020, Whitecotton pled guilty to two counts of making materially false
statements related to those government forms.Along with 8 months in prison and 8 months of home confinement, Judge Yandle ordered Whitecotton to
pay restitution in the amount of $23,475.25 – the total amount he earned from PGB. As part of his
sentence, Whitecotton was also ordered to serve 10 months on supervised release after his home
confinement ends.This case was investigated by the FBI and Department of Justice Office of the Inspector
General. The case was prosecuted by Assistant United States Attorney Luke J. Weissler.
Final Member of Wausau Methamphetamine Conspiracy SentencedRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Ger Moua, 32, Wausau, Wisconsin, pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 66 months in federal prison for distributing methamphetamine and possessing a firearm as a felon.
Moua was a close associate of the leader of the drug trafficking operation, Lisa Xiong, early in the conspiracy. She helped Lisa Xiong by directly distributing methamphetamine and overseeing the money and drug exchanges of lower-level associates in the trafficking operation. Moua’s relevant conduct includes approximately 130 grams of methamphetamine.
During one drug deal in March 2019, Moua brought a firearm for protection and then used the gun as collateral while she awaited a larger methamphetamine supply. Judge Peterson noted the devastation left in the wake of the methamphetamine crisis but emphasized the increased danger to the community when a firearm is possessed during a drug deal.
Moua’s criminal history includes one prior state offense, and she was on supervision for that offense when she participated in this drug-trafficking operation. According to Judge Peterson, her history combined with her methamphetamine distribution and possession of a firearm warranted a lengthy sentence, to provide just punishment and protect the community.
Eleven individuals were charged in an indictment returned by a federal grand jury in September 2019 for their roles in this methamphetamine distribution conspiracy. Charges against one of the original defendants were redacted from the indictment following the death of that individual. Ger Moua is the final defendant to plead guilty and be sentenced. The others are:
1. Meng Xiong, Wausau, was sentenced to 5 years on June 12, 2020;
2. Chou Xiong, Wausau, was sentenced to 78 months on December 8, 2020;
3. Soua Khang, Wisconsin Rapids, Wisconsin, was sentenced to 7 years on December 9, 2020;
4. Lisa Xiong, Wausau, was sentenced to 156 months on December 21, 2020;
5. John Gates, Hewitt, Wisconsin. was sentenced to 5 years on December 23, 2020;
6. Ya Yang, Wausau, was sentenced to 30 months on January 11, 2021;
7. Vang Yang, St. Paul, Minnesota, was sentenced to 30 months on January 21, 2021;
8. Chai Thao, Wausau, was sentenced to 5 years on March 1, 2021; and
9. Chong Chueneng Moua, St. Paul, Minnesota, was sentenced to 84 months on March 2, 2021.
The charges against these defendants was the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Lincoln County Sheriff’s Office; Wausau Police Department; Everest Metro Police Department; and Wisconsin State Patrol. The prosecution of the cases has been handled by Assistant U.S. Attorney Diane Schlipper.
Felon Sentenced for Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday for being a felon in possession of a firearm and ammunition.
Nathaniel Toribio, 22, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 21 months in prison and three years of supervised release. In November 2020, Toribio pleaded guilty to being a felon in possession of a firearm and ammunition. Toribio was federally charged in July 2020.
On Nov. 24, 2019, state parole officers were in Lawrence in an attempt to locate Toribio, who had removed his GPS monitoring device and absconded from parole supervision. Upon locating Toribio, the officers discovered an un-holstered, loaded firearm inside Toribio’s waistband. The firearm was identified as a Ruger Security-9 9mm pistol with 10 rounds of ammunition in the magazine.
Due to previous convictions punishable by more than one year in prison, Toribio is prohibited from possessing firearms and ammunition.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Everett Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – An Everett man has been charged in connection with committing armed bank robbery.
Jamaine Howell, 35, was charged by criminal complaint with bank robbery and using a firearm in furtherance of a crime of violence. Howell made an initial appearance yesterday before U.S. District Court Magistrate Judge M. Page Kelley. Howell has been in state custody since his arrest on state charges on Feb. 16, 2021.
According to charging documents, on Feb. 7, 2021, Howell entered a branch of TD Bank on Commonwealth Avenue in Allston and gave a demand note and a plastic bag to the teller. Howell threatened the teller and stated that he had a gun. Howell then allegedly threatened two bank customers and displayed a firearm. After taking his plastic bag – now containing about $5,900 – from the teller, Howell instructed one of the customers to come with him and led the customer out of the bank. After walking about a block with Howell, the customer managed to flee while the defendant was distracted.
It is further alleged that, later that week, police received a report that Howell brandished a firearm at a guest at a hotel in Sharon. On Feb. 16, 2021, police officers arrested Howell, and found him armed with a loaded .45 caliber Ruger handgun. Police also found a loaded semi-automatic shotgun in a vehicle that had previously been rented to Howell.
The charge of bank robbery provides for a sentence of up to 25 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of using a firearm in furtherance of a crime of violence provides for an additional sentence of five years to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Boston, Sharon and Lynn Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Charles Dell’Anno of Mendell’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficker from Ringgold, Louisiana Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that James Coleman, 44, of Ringgold, Louisiana, was sentenced by United States District Judge Elizabeth E. Foote to 132 months (11 years) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possession with intent to distribute methamphetamine.
Coleman was involved in a drug trafficking organization that was selling illegal narcotics and was charged in a federal indictment with drug offenses. The investigation that led to these charges began in January 2017. Law enforcement agents learned that Coleman and others were distributing and possessing methamphetamine and crack cocaine. Their investigation revealed that Coleman purchased illegal narcotics from other co-conspirators and then distributed them to various individuals in and around the Ringgold, Louisiana area.
During the investigation, law enforcement agents obtained authority to intercept phone calls on a cell phone belonging to a co-defendant. On several occasions, agents intercepted phone calls wherein Coleman discussed drug trafficking. Agents also conducted controlled purchases of narcotics from Coleman between January 1, 2017 and June 2018. Each purchase took place in the Ringgold area and was video and audio recorded. The narcotics purchased during the controlled buys were sent to the lab for analysis and it was determined that Coleman sold 9.3 grams of crack cocaine and 125.74 grams of pure methamphetamine.
The FBI and members of its Northwest Louisiana Violent Crime Task Force, which included officers from the Bienville Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Caddo Parish Sheriff’s Office, Desoto Parish Sheriff’s Office, and Louisiana State Police, conducted the investigation. Assistant U.S. Attorney Allison L. Duncan prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Dominican National Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican man previously residing in Lawrence was sentenced today in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 28, was sentenced by U.S. District Court Judge Patti B. Saris to 29 months in prison. Guzman will face deportation proceedings upon completion of his sentence. In December 2020, Guzman pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. Guzman was charged by complaint and arrested by state authorities on Nov. 20, 2019.
Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with the witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Detroit Man Sentenced to Federal Prison for Fentanyl DistributionRead the Press Release
BECKLEY, W.Va. – Acting United States Attorney Lisa G. Johnston announced that Honorable United States District Judge Frank W. Volk sentenced Cornelius Pope, 24, of Detroit, Michigan to 12 months and one day in federal prison for distribution of fentanyl and three years of supervised release.
Pope previously pled guilty on October 2, 2020. According to court documents, Pope admitted to distributing fentanyl and heroin on four separate occasions between November 7, 2018 and May 26, 2020, to confidential informants throughout the Beckley area.
Johnston commended the law enforcement officers and Assistant U.S. Attorney Alex Hamner for their excellent work.
“The proliferation of fentanyl in the Southern District of West Virginia and throughout the United States is threatening the lives of countless individuals,” said Acting U.S. Attorney Lisa G. Johnston.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley-Raleigh Drug and Violent Crime Unit.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00085.
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Department of Justice Issues Statement Regarding Decision in Skyworks v. CDCRead the Press Release
Brian M. Boynton, Acting Assistant Attorney General for the Civil Division of the Department of Justice, released the following statement:
"The CDC’s eviction moratorium—which Congress extended last December and the CDC later extended through March 31, 2021—protects many renters who cannot make their monthly payments due to job loss or health care expenses. By preventing people from becoming homeless or having to move into more-crowded housing, the moratorium helps to slow the spread of COVID-19.
The Department of Justice respectfully disagrees with the March 10 decision of the district court in Skyworks v. CDC 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.
In any event, the decision applies only to the particular plaintiffs in that case. It does not prohibit the application of the CDC’s eviction moratorium to other parties. For other landlords who rent to covered persons, the CDC’s eviction moratorium remains in effect."
Defendant Sentenced for Involuntary Manslaughter after Killing a Man at Tulsa’s Downtown Bus StationRead the Press Release
A Tulsa man was sentenced today in federal court for involuntary manslaughter in Indian Country after killing Barry James Harrell during a brief altercation in downtown Tulsa, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Harlan Frank Hardiman, 51, to 24 months in prison followed by three years of supervised release.
“Harlan Hardiman punched Barry Harrell in the head and walked away. When Mr. Harrell fell, his head struck the concrete, and he lay unconscious for 15 minutes before being discovered by a Tulsa police officer. He later died as a result of the injuries sustained at the hands of the defendant,” said Acting U.S. Attorney Clint Johnson. “Harlan Hardiman will now spend the next two years in federal prison for his actions. I am thankful for the Tulsa Police Department and Assistant U.S. Attorney Kevin Fletcher who pursued justice for the victim and his family.”
At a November plea hearing, Hardiman admitted that on Sept. 3, 2020, he punched Harrell in the head at the downtown Tulsa Transit bus terminal located at 319 S. Denver Ave. As a result of the punch, the victim fell and hit his head on the concrete sidewalk. Harrell subsequently died of a massive head bleed, called a subdural hematoma.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Kevin Fletcher is 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 the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Daughter of Prolific Mexican Cartel Leader Pleads Guilty to Criminal Violation of the Foreign Narcotics Kingpin Designation ActRead the Press Release
A dual U.S.-Mexican citizen pleaded guilty today to willfully engaging in financial dealings with Mexican companies that had been identified as Specially Designated Narcotics Traffickers by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC).
According to court documents, Jessica Johanna Oseguera Gonzalez, 34, of Guadalajara, Mexico, violated the criminal penalties of the Foreign Narcotics Kingpin Designation Act (the Kingpin Act) by engaging in property transactions with six Mexican businesses that OFAC previously designated to be “specially designated narcotics traffickers.” These six businesses were so designated because they provided material support to the Mexican drug trafficking organization known as the Cartel Jalisco Nueva Generacion (CJNG), which was itself designated by OFAC in April 2015. Oseguera Gonzalez’s father, Nemesio Ruben Oseguera Cervantes, aka “El Mencho,” who is the leader of CJNG, and her uncle, Abigael Gonzalez Valencia, who is the leader of the Los Cuinis drug trafficking organization, were also sanctioned by OFAC in April 2015.
“The Kingpin Act is a critically important tool in the U.S. government’s unrelenting efforts to target foreign drug cartels that seek to flood American streets with illegal drugs,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Department of Justice will aggressively investigate and criminally prosecute those who willfully violate Treasury Department sanctions under the Kingpin Act, as a key component of our broader whole-of-government strategy to dismantle and disrupt foreign drug cartels.”
“Today’s guilty plea is a result of our relentless commitment to disrupt and dismantle all aspects of the CJNG organization,” said Special Agent in Charge Bill Bodner of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division. “Our efforts will continue to include a focus on those who facilitate these illicit drug networks. Together with the Department of Justice, we will use all the investigative tools available, including OFAC designations, to bring to justice those who engage in illegal activity that is fueling the drug crisis nationwide.”
Court documents indicate that Oseguera Gonzalez was an owner of two Mexican companies designated by OFAC, J&P Advertising S.A. de C.V., and JJGON S.P.R. de R.L. de C.V., and that she was an officer, director, or agent of four additional sanctioned businesses, Las Flores Cabanas, Mizu Sushi Lounge, Tequila Onze Black, and Operadora Los Famosos S.A. de C.V., doing business as Kenzo Sushi. She remained an owner, officer, director, or agent of those entities following their OFAC designations, and did not seek the required license from OFAC to engage in those financial transactions.
Oseguera Gonzalez pleaded guilty to willfully violating the Kingpin Act’s prohibitions on engaging in transactions or dealings in property with entities or persons sanctioned under the Kingpin Act, and to being an officer, director, or agent of entities who knowingly participated in Kingpin Act violations. She is scheduled to be sentenced on June 11 and faces a maximum penalty of up to 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA’s Los Angeles Field Division is investigating the case, and the Justice Department particularly thanks the Office of Foreign Assets Control of the Department of the Treasury for its support. The Justice Department’s Office of International Affairs provided investigative assistance.
Trial Attorneys Brett Reynolds, Kaitlin Sahni, and Kate Naseef of the Justice Department’s Narcotic and Dangerous Drug Section are prosecuting the case.
This case received significant support from the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program supports investigations around the country to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Dallas County Man Convicted at Trial for Child EnticementRead the Press Release
PLANO, Texas – An Irving, Texas man has been convicted of attempted coercion and enticement of a minor in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Cody Ryan Turner, 37, was found guilty by a jury on March 10, 2021, following a three-day trial before U.S. District Judge Sean D. Jordan.
“I commend our law enforcement partners for their vigilance in ensuring the safety of our children,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those who target child victims are the worst among us. Their actions will not be tolerated. The Eastern District of Texas will continue to find such individuals and bring them to justice.”
According to information presented in court, in August 2019, Turner began messaging an individual he believed to be a young teen on a popular social media application. After receiving no response throughout August 2019, he sent a graphic image to the child in December 2019. Turner then messaged the child again in June 2020. The individual who Turner believed to be a teen responded and identified herself as a child. From June-September 2020, Turner sent a series of sexually explicit messages to this individual.
On September 8, 2020, believing that the child was at home attending school online because of COVID, Turner sent a message asking, "want company"? Evidence introduced at trial showed that Turner drove from Irving to a location in Plano to meet the child, at which time he was arrested by a joint law enforcement team comprised of officials from the FBI and the Plano Police Department.
Turner was indicted by a federal grand jury on September 17, 2020. Under federal statutes, he faces a minimum of 10 years and up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller and Special Assistant U.S. Attorney Bethany Pickett.
Crow Agency man admits stabbing manRead the Press Release
BILLINGS — A Crow Agency man today admitted stabbing another man last year on the Crow Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Dee Bad Bear, 59, pleaded guilty to an indictment charging him with assault with a dangerous weapon. Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set. Bad Bear was detained.
In court documents filed in the case, the prosecution alleged the assault occurred on April 17, 2020 at a Lodge Grass residence, located on the Crow Indian Reservation. Bad Bear and the victim, identified as John Doe, were drinking alcohol and talking. Doe went to the bathroom and when he came out, Bad Bear slashed him with a knife. Doe was treated for injuries at a hospital in Billings. A knife matching a description by the victim was recovered from Bad Bear’s car.
Assistant U.S. Attorney Jeanne Torske is prosecuting the case, which was investigated by the FBI.
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Convicted Felon, Drug User, and Domestic Abuse Misdemeanant Who Possessed a Firearm Sentenced to Federal PrisonRead the Press Release
A man who possessed a loaded pistol was sentenced March 12, 2021, to more than one year in federal prison.
David Devall, age 43, from Sioux City, Iowa, received the prison term after an October 13, 2020, guilty plea to being a felon, drug user and domestic abuse misdemeanant in possession of a firearm and ammunition. Devall was previously convicted of felony and domestic abuse crimes which made it illegal for him to possess a gun.
Evidence at Devall’s, detention, change of plea, and sentencing hearings revealed that on in the early morning hours of December 17, 2019, officers with the Sioux City, Iowa, police department observed a suspicious vehicle in an area behind a closed business. An officer in an unmarked vehicle began following the suspicious vehicle, and learned the vehicle was registered to Devall through the license plate. Shortly thereafter, the vehicle accelerated away and travelled in excess of 65 mph for an unspecified distance. The officers following Devall noted that the vehicle, which had slowed significantly, was making a series of suspicious turns down various streets in Sioux City. A marked police unit was summoned, which activated its emergency lights and followed the defendant into the drive-through of a closed McDonald’s restaurant, where the vehicle was stopped. Officers observed the driver, who was later found to be Devall, making movements inside the vehicle, at which time he was ordered to exit the vehicle. During a search of the car, officers located a black backpack behind the front passenger’s seat, inside of which were two baggies, a jar containing marijuana, a marijuana pipe, a methamphetamine pipe, a scale, methamphetamine, and a loaded 9mm Smith & Wesson handgun. There was a round in the chamber of the gun and 14 rounds in the magazine.
Devall was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Devall was sentenced to 16 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Devall is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4007.
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Child Predator and Cyberterrorist, Buster Hernandez, aka "BrianKil," is Sentenced to 75 years in Federal PrisonRead the Press Release
Indianapolis – Acting U.S. Attorney John Childress announced today that Buster Hernandez, 29, of Bakersfield, California, was sentenced to 75 years in federal prison by U.S. District Judge Tanya Walton Pratt.
In August 2017, Hernandez was initially charged with sexually exploiting a minor, threatening to use an explosive device and threatening to kill, kidnap, or injure another person. Those charges eventually extended to include 41 separate allegations including: the production of child pornography, the coercion and enticement of minors, the receipt and distribution of child pornography, the threatened use of explosive devices, extortion, threats to kill, kidnap or injure other persons, witness tampering, obstruction of justice and retaliation against a victim. The offense conduct included the actual or attempted sextortion of at least 375 victims including those from two foreign countries, threats to kill, rape, and kidnap hundreds and threats to use explosive devices against Plainfield and Danville High Schools, the Shops at Perry Crossing, and a local Walmart.
“Today we mark, with quiet satisfaction, that here evil has been met with justice. Conduct like this falls so far outside even the most basic understanding of human decency and compassion that our natural inclination might be to look away from this horrible spectacle,” said Childress. “We cannot do so. We must acknowledge that evil such as this exists in our world so that we might give thanks for those brave men and women who give their all to see that it does not prevail and so that we are all reminded to do whatever we must to protect our children.”
“Today also marks a milestone in a long and complex case that represents the efforts of an extremely talented group of federal prosecutors and law enforcement and state and local law enforcement from across the county. Sadly, but with hope for the future, today also allows us to importantly acknowledge the many victims of the defendant and even more importantly allows us to express our solidarity with them and to pledge our continued efforts in support of their healing.”
In December of 2015, the Brownsburg Police Department contacted the FBI asking for assistance with a cyber-threat case involving a minor female victim (Victim 1) who was a resident of Plainfield, Indiana. For approximately 16 months, Hernandez used Facebook under different aliases to communicate with Victim 1 to extort sexually explicit pictures from her. This crime is commonly referred to as “sextortion.”
When Victim 1’s mother intervened, and refused to provide additional images, Hernandez, using the alias, “Brian Kil” threatened to kill Victim 1, her mother, younger sister, and boyfriend. Hernandez also posted on Facebook that he intended to bomb Plainfield and Danville High Schools, The Shops at Perry Crossing, and Walmart in the Plainfield area.
Hernandez posted, “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” Hernandez also threatened school administrators and parents.
In the interest of public safety, school administrators decided to close the Plainfield and Danville High Schools and The Shops at Perry Crossing in Plainfield was also evacuated and closed until Dec. 19, 2015.
In response to the threats, Plainfield school administrators and law enforcement scheduled a community forum at the high school. More than 1000 people attended. As part of his criminal tradecraft, Hernandez used counterintelligence at the forum. He coerced Victim 3, whom he had been extorting for years, to attend the forum, take notes, and record law enforcement’s statements about the investigation into “Brian Kil.” Hernandez then posted information about the forum to make it appear as though he lived among his victims and could harm them at any moment. When discussing sending Victim 3 to the community forum, Hernandez said to Victim 3, “a lot of people think im too far to do anything. Thanks to you ill be quoting [expletive] directly from the forum. People are going to think twice about their kids safety after that.”
Hernandez also sexually exploited and threatened several other minor victims in Hendricks County and other cities in Indiana. When victims stopped complying with his demands, he posted sexually explicit images and videos that the victim had sent against their will and often threatened to kill them and their families.
Hernandez also used sophisticated methods to obfuscate his identity and encrypt his devices. In the summer of 2017, the FBI discovered that the person using the moniker “Brian Kil” and hundreds of other aliases was an unemployed 26-year-old male named Buster Hernandez. Hernandez was living with his girlfriend and her 85-year-old grandmother in Bakersfield California. In total, Hernandez victimized no less than 375 victims from around the country.
This investigation was jointly conducted by the FBI, the Indiana State Police, the Plainfield Police Department, the Brownsburg Police Department, and the Washington County Maryland Sheriff’s Office.
“Mr. Hernandez has been sitting in a jail cell for more than three years since a collective law enforcement effort put an end to his reign of terror, and today’s sentence ensures he will remain behind bars for a very long time, unable to victimize anyone else, ever again,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The communities of Plainfield and Danville, and those in other states where he victimized young girls, can rest easy knowing the FBI and our partners worked tirelessly and used all our resources to find him and bring this day about.”
The Indiana State Police proudly stands with our law enforcement partners as this complex case comes to a close and a person is held accountable for their actions that affected so many people,” said Indiana State Police Superintendent Doug Carter.
“The Plainfield Police Department is very pleased with the outcome of this multi-jurisdictional and nationwide investigation, prosecution and sentencing,” said Plainfield Police Chief Jared McKee. “Our hope is that the conviction and sentencing of this perpetrator is a relief to the many victims seeking closure. The countless victims, Town of Plainfield residents, the entire Plainfield Community School Corporation, and communities all over the country can find comfort in knowing that justice has been served. Our agency would like to thank the efforts of our federal, state, and local partners in bringing this case to closure, including the FBI, the U.S. Attorney’s Office for the Southern District of Indiana, the Indiana State Police and the Brownsburg Police Department.”
“This investigation is a shining example of the local, state, and federal cooperation that exists to effectively investigate and capture the predators that focus upon our children, said Brownsburg Police Chief Joseph Grimes. “The Brownsburg Police Department is proud to be part of the team that makes the protection of our children a priority and does not waiver in its stance to effectively locate and apprehend those who seek to bring them harm. We stand steadfast in support of the victims in their time of healing, as they are the true heroes in demonstrating bravery through adversity.”
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Hernandez must also serve a lifetime of supervised release following his imprisonment.
Attached to this release is a list of other account usernames that Hernandez used to communicate with his victims. If you believe you have been a victim of sextortion by Buster Hernandez, a/k/a Brian Kil, a/k/a Purge of Maine, and or any of the usernames listed, please contact the Indianapolis FBI Office at 317-595-4000, Option 2, or submit the information to https://www.fbi.gov/tips.
In November of 2020, Acting U.S. Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to prosecute those who exploit and harm children, produce and distribute child pornography, and use sextortion. See U.S. Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1 and 4.4.
Hernandez User NamesCañon City Man Charged for Interfering with Flight CrewRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that Landon Perry Grier, 24, of Cañon City has been charged with interfering with a flight crew in violation of Title 49, United States Code, Section 46504. Grier made his initial appearance in federal court in Denver yesterday, where he was advised of the charge against him and ordered released on conditions of pre-trial supervision.
According to the facts contained in the complaint, on March 9, 2021, Grier was a passenger onboard Alaska Airlines flight 1474 traveling from Seattle to Denver. During the flight, Grier was asked eight to ten times to put on a face mask, as required by airline policy. Grier initially ignored the flight attendant, but then struck her arm. Later, passengers notified a different flight attendant that Grier was urinating in his seat. A flight attendant notified the captain. When the captain was notified, he was preparing to land after declaring an emergency for an unrelated maintenance issue.
Interfering with a flight crew carries a potential penalty of up to 20 years in prison and/or a fine of up to $250,000.
The charge in the criminal complaint is an allegation and the defendant is presumed innocent until proven guilty.
The investigation was conducted by the Federal Bureau of Investigation with substantial assistance from the Denver Police Department. Assistant United States Attorneys Brad Giles and David Tonini are handling the prosecution.
Case number: 21-mj-00038-MEH-1
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California man pleads guilty to email compromise scheme that stole millions from Northwest maritime construction firmsRead the Press Release
Seattle – A 44-year-old Inglewood, California, man pleaded guilty today in U.S. District Court in Seattle to an email compromise scheme that stole more than $3.3 million from a boat-building company, announced Acting U.S. Attorney Tessa M. Gorman. LESLIE REDD III, pleaded guilty to conspiracy to commit wire fraud and wire fraud. He is scheduled for sentencing before Chief U.S. District Judge Ricardo S. Martinez on June 25, 2021.
According to records filed in the case, including the plea agreement, in October 2018, REDD entered a scheme with a co-conspirator in Pennsylvania and others. The scheme began when a malicious link was sent to an email address of an employee at the engine-building company. The link allowed the conspirators to gain access to the company’s email system and review various emails such as invoices. The conspirators then posed as a billing executive at the engine manufacturing company and sent the boat-building company instructions to wire the payment funds to a specific bank account. The conspirators had set up a fake company and the account at a Pennsylvania bank specifically to receive these funds. The false emails indicated the engine-building company’s usual bank account was undergoing an audit and said that the engine-building company therefore needed to use a different bank than it had previously.
On October 29, 2018, the boat builder paid the invoice for $3,316,730 by wiring the funds as directed by the fraudulent emails. The co-conspirator in Pennsylvania quickly forwarded $3,074,500 to bank accounts controlled by REDD and other co-conspirators. Of the ill-gotten funds, REDD kept $857,350 in accounts he controlled. Investigators were able to seize $420,817 from those accounts.
As part of his plea agreement REDD has agreed to forfeit the money in his bank account and make restitution in an amount to be agreed upon at sentencing. Both wire fraud and conspiracy to commit wire fraud are punishable by up to 20 years in prison.
The case is being investigated by the FBI Seattle Office Cyber Task Force.
The case is being prosecuted by Assistant United States Attorney Andrew Friedman.
Belizean National Convicted of Using Fraudulent Immigration and Social Security Cards at Nevada DMVRead the Press Release
LAS VEGAS, Nev. – A federal jury convicted a Belize citizen yesterday for using a fraudulent United States Permanent Resident Card and a fake Social Security card (listing a Social Security number not assigned to him) while applying for a "Real ID" identification card at a Nevada Department of Motor Vehicles office in Henderson.
After a four-day jury trial, Rickon Amyon Wade, aka “Ricky Wade,” 35, was found guilty of one count of Fraud and Misuse of Visas, Permits, and Documents, and one count of Misuse of a Social Security Number. A sentencing hearing has been scheduled for June 16, 2021, before U.S. District Judge Gloria M. Navarro.
According to court documents and evidence presented at trial, on October 1, 2020, Wade applied for a Nevada Real ID identification card at a DMV office in Henderson. As part of the application process, Wade filled out a form and provided a DMV Field Technician with a United States Permanent Resident Card and Social Security card as identification. The Field Technician could not validate and verify the identification cards Wade presented. Wade had obtained the counterfeit immigration and Social Security cards from a street vendor in California.
An investigation revealed that Wade traveled from Belize to Mexico and entered the United States at a Texas Port of Entry in January 2000, as a temporary visitor for pleasure or tourism. He was authorized to stay in the United States until July 2000. Because Wade did not have a pending application with U.S. Customs and Immigration Services to remain in the United States after July 2000, his continued stay was unlawful.
Wade faces a maximum sentence of 15 years in prison, supervised release, and a monetary fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Special Agent in Charge Robb Stickley for the Social Security Administration (SSA), Office of the Inspector General (OIG), San Francisco Field Division made the announcement.
The case was investigated by HSI and the SSA-OIG after referral by the Nevada Department of Motor Vehicles Compliance Enforcement Division. Assistant U.S. Attorneys Jessica Oliva and Kimberly Frayn are prosecuting the case.
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Auto Transport Company Owner Sentenced for Falsifying Motor Carrier Safety Records, Fraud, ID Theft, Tax EvasionRead the Press Release
PROVIDENCE – The owner of an East Providence automobile transport company has been sentenced to 30 months in federal prison for falsifying U.S. Department of Transportation (DOT) - Federal Motor Carrier Safety Administration (FMCSA) records, utilizing another person’s personal identifying information to continue to illegally operate his auto hauling business after being ordered to shut down, fraudulently obtaining more than $400,000 from various financial institutions, and taking evasive steps to avoid paying personal income taxes owed to the IRS.
According to information presented to the court, Michael Chaves, 41, owner of CAT Inc., continued to operate a fleet of auto transport trucks after having been cited for, among other things, allowing drivers to operate without a current or properly classified license; failing to maintain certifications that drivers were medically able to drive; failing to implement a driver alcohol or controlled substances testing program; and allowing drivers to exceed the maximum number of hours of driving allowed under the law.
Chaves utilized another person’s personal identifying information to continue to illegally operate the business after FMCSA ordered the business shutdown.
Additionally, Chaves fraudulently obtained more than $400,000 from various financial institutions by employing schemes during which he obtained $332,000 in loans and funds from several banks and credit unions by providing fraudulent earning statements, tax returns, motor vehicle purchase contracts, and Department of Motor Vehicle documents; caused the fraudulent wire transfer between financial institutions of $72,864.28; and executed a scheme by submitting 15 fraudulent checks he created to an automobile seller’s bank account from which he obtained $64,453.
Additionally, according to information presented to the court, Chaves took several steps to evade income taxes by, among other things, commingling business and personal expenses; using a check casher to divert third-party income; creating fraudulent third-party checks and cashing them using a check casher, rather than a bank; and maintaining approximately 15 different bank accounts using at least five different company names.
Chaves pleaded guilty on August 22, 2020, to a ten-count information charging him with falsification of records, aggravated identity theft, five-counts of bank fraud, two-counts of wire fraud, and tax evasion.
Chaves was sentenced on Wednesday by U.S. District Court Judge William E. Smith to 30 months in federal prison to be followed by three years of federal supervised release, announced Acting United States Attorney Richard B. Myrus Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Ramsey E. Covington, and Acting Special Agent-in-Charge Daniel Helzner, U.S. Department of Transportation Office of Inspector General, Northeast Region.
A restitution order will be forthcoming from the court. In addition to restitution to be paid in the fraud schemes connected to the operation of his auto transport company, the order will include restitution to be paid by Chaves to Amazon. It was alleged in court documents that Chaves defrauded Amazon through theft of inventory through falsely represented returns. It is alleged in court documents that Chaves ordered products from Amazon and, at times, replaced the original products with lesser value replacements, often items different than the ones he originally ordered, before returning the packages to Amazon for refunds.
Chaves’ alleged Amazon refund scams were discovered during the investigation by Internal Revenue Service Criminal Investigation and U.S. Department of Transportation Office of Inspector General into Chaves’ auto transport company.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
Acting United States Attorney Myrus thanks officers from the East Providence Police Department and the National Crime Insurance Bureau for their assistance in the investigation of this matter.
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Austin Man Sentenced to 20 Years in Prison for Distributing Child PornographyRead the Press Release
Acting United States Attorney W. Anders Folk today announced the sentencing of PHILLIP ARLAN KOONTZ, 53, to 20 years in prison for distributing child pornography. KOONTZ, who pleaded guilty on January 22, 2020, was sentenced yesterday afternoon by Judge Joan N. Ericksen in U.S. District Court.
“The sexual exploitation of children is a heinous crime, one deserving of a lengthy prison sentence,” said Acting U.S. Attorney Anders Folk. “Here in Minnesota we are fortunate to have dedicated federal, state, and local investigators who are committed to seeking justice for those who abuse and exploit innocent children.”
“This repeat offender will spend the next 20 years behind bars,” said Jamie Holt, acting special agent in charge of HSI St. Paul. “Community safety is our top priority and hopefully this lengthy sentence will give peace of mind to his victims and their families. HSI special agents will continue to work with our Minnesota law enforcement partners, like the Austin police, to relentlessly pursue child predators and ensure they are brought to justice.”
According to the defendant’s guilty plea and documents filed with the court, on April 30, 2018, KOONTZ began chatting online with an undercover federal agent who was posing as a 13-year-old girl. KOONTZ sent to the agent multiple images containing sexually explicit content involving minors, falsely representing that the images were of KOONTZ’s daughters and her friends. KOONTZ also possessed 478 sexually explicit images depicting minors, including prepubescent minors. KOONTZ has a previous felony conviction in Mower County for criminal sexual conduct in the second degree.
This case was the result of an investigation conducted by Homeland Security Investigations and the Austin Police Department.
This case was prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Defendant Information:
PHILLIP ARLAN KOONTZ, 53
Austin, Minn.
Convicted:
- Distribution of child pornography, 1 count
Sentenced:
- 240 months in prison
- 20 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Acting U.S. Attorney Leary Warns About Fraudsters Stealing Personal Information and Claiming COVID-19 Benefits Using Fake WebsitesRead the Press Release
MACON, Ga. – The Department of Justice’s National Unemployment Insurance Fraud Task Force (NUIFTF) is warning that criminals are creating websites mimicking unemployment benefit websites, including state workforce agency (SWA) websites, to steal personal information and file fraudulent unemployment insurance (UI) benefits provided as a response to the COVID-19 pandemic, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
“Fraudsters, true to form, are taking criminal advantage of the unemployment insurance benefits provided to people in real need during the COVID-19 pandemic and committing identity theft by filing for benefits using stolen information. This crime is widespread, and citizens need to keep their guard up against phishing schemes and other attempts to steal personal information,” said Acting U.S. Attorney Leary. “Our office will continue our ongoing efforts to investigate and prosecute all those committing identity theft here in the Middle District of Georgia.”
The NUIFTF recently alerted citizens about the issuance of erroneous 1099-G Forms as a result of this fraud. Since UI benefits are taxable income, SWAs issue 1099-G Forms to recipients and the Internal Revenue Service (IRS) to report the amount of taxable unemployment compensation received and any withholding. Due to widespread fraud, much of it involving identity theft, citizens may receive a 1099-G indicating they collected UI benefits, when in fact they have not. In other instances, Americans may not receive a 1099-G, but later learn from the IRS or another party that their identity was used to file for UI benefits without their knowledge or consent.
There are steps that victims can take to help remedy the situation if they receive a 1099-G Form for unemployment compensation they did not receive, including filing an identity theft complaint with the Department of Justice’s National Center for Disaster Fraud (NCDF). To learn more about these steps, please visit the following website: https://www.irs.gov/identity-theft-fraud-scams/identity-theft-and-unemployment-benefits. To report fraud, taxpayers can complete an NCDF complaint form online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form or by calling 866-720-5721.
To lure consumers to these fake websites, fraudsters send spam text messages and emails purporting to be from an SWA and containing a link. The fake websites are designed to trick consumers into thinking they are applying for unemployment benefits and disclosing personally identifiable information and other sensitive data. That information can then be used by fraudsters to commit identity theft.
Unless it is received from a known and verified source, consumers should never click on links in text messages or emails claiming to be from an SWA offering the opportunity to apply for unemployment insurance benefits. Instead, anyone needing to apply for unemployment benefits should go to an official SWA website, a list of which can be found at https://www.careeronestop.org/localhelp/unemploymentbenefits/unemployment-benefits.aspx.
Schemes that use links embedded in unsolicited text messages and emails in attempts to obtain personally identifiable information are commonly referred to as phishing schemes. Phishing messages may look like they come from government agencies, financial intuitions, shipping companies, and social media companies, among many others. Carefully examine any message purporting to be from a company and do not click on a link in an unsolicited email or text message. Remember that companies generally do not contact you to ask for your username or password. When in doubt, contact the entity purportedly sending you the message, but do not rely on any contact information in the potentially fraudulent message.
If you believe you may have entered information into a fraudulent website, resources on how to protect your information can be found at: www.identitytheft.gov.
Further information about the SWA-imposter scheme, and other major scams targeting American consumers, can be found at the Justice Department’s Transnational Elder Fraud Strike Force website: https://www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
Members of NUIFTF include: Department of Labor Office of Inspector General, U.S. Secret Service, Homeland Security Investigations, IRS-Criminal Investigation, U.S. Postal Inspection Service, Social Security Administration Office of Inspector General and FDIC Office of Inspector General. Find out more about the NUIFTF at: https://www.justice.gov/file/1319301/download.
For more information about the Consumer Protection Branch, visit http://www.justice.gov/civil/consumer-protection-branch. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
3 Additional Members of Alleged Fraud Ring Based in San Fernando Valley Arrested on Charges of Exploiting COVID-Relief ProgramsRead the Press Release
LOS ANGELES – Expanding a case in which four people were indicted last year, federal authorities have charged four new defendants with participating in a scheme that allegedly submitted more than 150 fraudulent loan applications seeking nearly $22 million in COVID-19 relief funds authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Justice Department announced today.
Three of the new defendants were arrested Thursday as the result of a 33-count superseding indictment that charges a total of eight defendants with using fake, stolen or synthetic identities to submit fraudulent applications for loans guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Relief Program (EIDL) and the Paycheck Protection Program (PPP) under the CARES Act.
The three defendants arrested Thursday are: Manuk Grigoryan, 27, of Sun Valley; Edvard Paronyan, 40, of Granada Hills; and Vahe Dadyan, 41, of Glendale. All three were arraigned on the superseding indictment Thursday afternoon in United States District Court in downtown Los Angeles. During court appearances that continued into the evening, a United States Magistrate Judge released all three on bond and ordered them to stand trial on May 4.
A fourth new defendant charged in the superseding indictment – Arman Hayrapetyan, 38, of Glendale – is still being sought by federal authorities.
The superseding indictment, which was filed on Tuesday, adds the four new defendants to an indictment filed in November that led to the arrests of co-defendants Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan and Tamara Dadyan.
According to the superseding indictment, the eight defendants conspired together, and with others, as part of a disaster-relief loan fraud ring that submitted fraudulent loan applications that often included fake identity documents, tax documents and payroll records. The eight defendants “submitted and caused the submission of at least 151 fraudulent PPP and EIDL loan applications seeking a total of at least $21.9 million in PPP and EIDL proceeds from the SBA and at least 11 financial institutions, and received a total of at least $18 million in PPP and EIDL loan proceeds from the SBA and financial institutions,” the indictment states.
The defendants allegedly used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags and clothing, cryptocurrency, and securities, according to the indictment.
All of the defendants named in the superseding indictment are charged with conspiracy to commit wire fraud and bank fraud, as well as conspiracy to commit money laundering. Each defendant is named in various other counts in the indictments which allege wire fraud, bank fraud, money laundering and aggravated identity theft.
The superseding indictment alleges that Richard Ayvazyan and Tamara Dadyan committed crimes after they were released on bond in this case. The superseding indictment further alleges that Richard Ayvazyan continued to use his alias “Iuliia Zhadko” to launder the proceeds of the scheme, including by using the money to buy cryptocurrency and securities. As alleged, Tamara Dadyan repeatedly lied to a bank as part of a scheme to unlawfully obtain disaster-relief funds that had been frozen in an account that she had fraudulently opened using a stolen identity.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation in this case is being conducted by the FBI, IRS Criminal Investigation, the Small Business Administration’s Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General.
This case is being prosecuted by Assistant United States Attorneys Brian Faerstein of the Environmental and Community Safety Crimes Section and Scott Paetty of the Major Frauds Section, and Trial Attorney Christopher Fenton of the Justice Department’s Fraud Section.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program. In April 2020, Congress authorized more than $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
Thursday 11 March 2021
Zurich’s Oldest Private Bank Admits to Helping U.S. Taxpayers Hide Offshore Accounts from IRSRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General for the Department of Justice’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced the filing of a criminal Information against RAHN+BODMER CO. (“R+B”), a financial institution located in Zurich, Switzerland. The Information charges R+B with one count of conspiring to help U.S. accountholders evade their U.S. tax obligations, file false federal tax returns, and otherwise defraud the Internal Revenue Service (“IRS”) by hiding hundreds of millions of dollars in offshore bank accounts at R+B.
Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced a deferred prosecution agreement with R+B (the “Agreement”), under which R+B admits to its unlawful conduct in assisting U.S. accountholders in violating their legal duties. R+B’s admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires R+B to provide ongoing assistance to the Department of Justice and to pay a total of $22 million in restitution, forfeiture, and penalties. If R+B abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charge.
Manhattan U.S. Attorney Audrey Strauss said: “As Rahn+Bodmer now admits, it aided U.S. taxpayers in evading their tax responsibilities to the tune of more than $16 million. This venerated banking institution knowingly offered banking services that assisted its U.S. customers in evading their tax obligations, and affirmatively schemed to conceal from the IRS the assets and income of U.S. accountholders. Now Rahn+Bodmer will pay $22 million and commit to helping the Justice Department uncover tax evasion by U.S. customers.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Under today’s resolution, Rahn+Bodmer is paying $22 million for helping U.S. accountholders evade their taxes, and has agreed to fully cooperate with investigations into those taxpayers. With the April 15 tax filing date fast approaching, there is a clear message for those intending not to pay their fair share – nothing remains hidden forever.”
IRS-CI Chief James C. Lee said: “Through a years-long scheme, the R+B bank hid the assets of U.S. accountholders to shield them from their tax obligations. Today’s admission and agreement provide a clear path to recovery of funds owed to the U.S. government, and sends a strong signal that offshore accounts are not beyond the reach of special agents with IRS CI.”
According to the Agreement, the accompanying Statement of Facts, and other documents filed today in Manhattan federal court:
From at least in or about 2004 and continuing until at least in or about 2012, R+B conspired with certain of its U.S. accountholders and others to defraud the United States with respect to taxes, file false federal tax returns, and commit tax evasion. R+B’s bankers assisted U.S. accountholders in concealing their ownership and control of assets and funds held in undeclared R+B accounts, which enabled those U.S. accountholders to evade their U.S. tax obligations. R+B admitted to holding undeclared accounts on behalf of approximately 340 U.S. taxpayers, who collectively evaded approximately $16.4 million in U.S. taxes between in or about 2004 and in or about 2012. The assets under management that R+B held for undeclared U.S. accountholders increased from approximately $391 million in 2004 to approximately $550 million in 2007, its peak year for undeclared assets under management.
In furtherance of the scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, R+B undertook the following actions, among others:
- R+B opened “numbered” or “pseudonym” accounts for U.S. accountholders in order to reduce the risk that U.S. tax authorities would learn their identities.
- R+B opened and maintained accounts for U.S. accountholders in the names of non-U.S. corporations, foundations, trusts, or other legal entities, thereby helping U.S. taxpayers conceal their beneficial ownership of the accounts.
- R+B agreed to hold bank statements and other account-related mail in Switzerland, rather than send them to the U.S. accountholders in the United States, which helped ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
- After Liechtenstein and the United States signed a Tax Information Exchange Treaty in December 2008, R+B transferred the undeclared assets of certain U.S. taxpayers from accounts held in the names of sham foundations organized under the laws of Liechtenstein to new accounts held in the names of new sham foundations organized under the laws of Panama, in an effort to further conceal the accounts from U.S. tax authorities.
- R+B allowed U.S. accountholders and third-party asset managers to make withdrawals by check from undeclared accounts in amounts of less than $10,000, in an apparent attempt to conceal transactions from U.S. authorities.
- On occasion, R+B opened accounts for U.S. taxpayers who were exiting UBS AG and other Swiss banks, and allowed these U.S. taxpayers to continue to conceal their undeclared assets at R+B. R+B additionally opened “escrow” accounts on behalf of a Swiss attorney to facilitate the transfer of undeclared assets of U.S. accountholders that had been converted to gold and other precious metals held in a vault at UBS.
- R+B helped U.S. accountholders to repatriate funds to the United States in a manner designed to ensure that U.S. tax authorities did not discover the undeclared accounts, including by transferring the funds of one U.S. accountholder in increments of approximately $100,000 to another Swiss bank before the U.S. accountholder routed the funds to a diamond dealer in Manhattan, where the U.S. accountholder ultimately received them.
- R+B, through its bankers, made regular visits to the United States to solicit, open, and service undeclared accounts of U.S taxpayers.
Under today’s resolution, R+B is required to cooperate fully with the Department of Justice and affirmatively disclose new information it may later uncover regarding U.S.-related accounts. R+B is also required to disclose information consistent with the Department’s Swiss Bank Program relating to accounts closed between January 1, 2009, and December 31, 2019.
As part of the resolution, R+B will pay a total of $22 million, which has three parts. First, R+B has agreed to pay $4.9 million in restitution to the IRS, which represents the estimated unpaid taxes resulting from R+B’s participation in the conspiracy. Second, R+B has agreed to forfeit $9.7 million to the United States, which represents the approximate gross fees that R+B earned on its undeclared U.S.-related accounts between 2004 and 2012. Finally, R+B has agreed to pay a penalty of $7.4 million. The penalty takes into consideration that R+B conducted a thorough internal investigation and provided a substantial volume of documents to the Department, as well as implemented remedial measures to protect against the use of its services for tax evasion in the future.
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Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI. Ms. Strauss also thanked the Department of Justice’s Tax Division for their partnership on this case.
This case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorney Olga I. Zverovich and Trial Attorney Ellen M. Quattrucci are in charge of the case.
- R+B opened “numbered” or “pseudonym” accounts for U.S. accountholders in order to reduce the risk that U.S. tax authorities would learn their identities.
York Man Sentenced to 15 Years’ Imprisonment for Drug and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 10, 2021, Justin Rashaad Brown, age 31, of York, Pennsylvania, was sentenced to 15 years’ imprisonment to be followed by six years of supervised release, by U.S. District Court Judge Sylvia H. Rambo, for distributing crack cocaine and possessing a firearm as a previously convicted felon.
According to Acting United States Attorney Bruce D. Brandler, Brown sold crack cocaine in York on multiple occasions in 2016. Law enforcement executed search warrants at Brown’s residence in July 2016 and November 2016, and found crack cocaine during each search and a stolen revolver during the second search.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the York County Drug Task Force, and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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West Springfield Man Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A West Springfield man was sentenced today in federal court in Springfield on child pornography charges.
Luke Gagnon, 34, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and 10 years of supervised release. In September 2020, Gagnon pleaded guilty to one count of distributing child pornography and one count of possession of child pornography. Gagnon was arrested and charged in January 2020.
After an investigation into child pornography distribution, agents executed a search warrant at Gagnon’s residence in West Springfield and seized a hard-drive from a desktop computer belonging to Gagnon which contained several videos and images of child pornography. In addition, from September 2019 to January 2020, Gagnon knowingly distributed child pornography.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; West Springfield Police Chief Paul Connor; and South Hadley Police Chief Jennifer Gundersen made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Mendell’s Springfield Branch Office prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Violent Sioux City Drug Conspiracy Dismantled and Members Sent to Federal PrisonRead the Press Release
Raymond Nieman, age 39, Lesandro Jose Alvizo-Allison, age 21, Kelly Davis, age 34, and Erwin Scott, age 25, all from Sioux City, Iowa, received prison terms, ranging from over nine years to 16 years for their roles in a conspiracy to distribute a controlled substance, a conspiracy to commit robbery and extortion, a robbery, a conspiracy to commit arson, and possession, use, and discharge of a firearm in furtherance of a drug trafficking crime.
Raymond Nieman, Kelly Davis, and Erwin Scott were each convicted of one count of conspiracy to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of conspiracy to commit arson. Lesandro Jose Alvizo-Allison was convicted of one count each of conspiracy to distribute a controlled substance, conspiracy to commit robbery and extortion, robbery, possession of a firearm in furtherance of a drug trafficking crime, conspiracy to commit arson, and possession of a firearm by a felon. Alvizo-Allison was previously convicted of Forgery, in Iowa, in 2019.
Evidence presented by the United States revealed from on or about March 18, 2018, until August 8, 2019, Raymond Nieman distributed methamphetamine from his Sioux City home and other places. On or about August 7, 2019, Nieman attempted to purchase $600.00 worth of methamphetamine from a source of supply in Sergeant Bluff, Iowa. During that transaction, Nieman was provided what he concluded was bad dope. Nieman returned to his home and recruited Kelly Davis, Erwin Scott, and Lesandro Alvizo-Allison to assist him in his plan to seek redress against the suspected Sergeant Bluff source of supply. The three agreed to participate in Nieman’s plan which included robbing the source of supply of his drugs and money, and burning down the home of the source of supply if necessary to get what they wanted. The four men, along with Jennifer Crook, traveled, in Nieman’s van, to Sam’s Mini Mart, where Nieman and Davis filled a gas can with gasoline. The group then drove to the supposed home of the source of supply. As they drove, the group discussed burning down the alleged source of supply’s home if he did not give them money or drugs. All the men knew there were loaded guns in the van. Once at the scene, Nieman and Davis each armed themselves with loaded .22 rifles. Scott donned a wolf mask and picked up a baseball bat. All four men then walked to the supposed home of the source. Crook stayed in the van.
Nieman fired shots, including at least one at the house, shouted demands for money, and made threats of violence, including a threat to burn down the house if they did not get money or drugs. The alleged source of supply and others, who had been in front of the house, retreated inside, and after a brief standoff, Nieman, Davis, Scott, Alvizo-Allison and Crook fled the scene in Nieman’s van.
Davis was sentenced on August 21, 2020, Scott was sentenced on October 9, 2020, Alvizo-Allison was sentenced on December 3, 2020, and Nieman was sentenced on March 11, 2021, in United States District Court in Sioux City by United States District Court Chief Judge Leonard T. Strand. Davis was sentenced to 180 month’s imprisonment, Scott was sentenced to 132 months’ imprisonment, Alvizo-Allison was sentenced to 117 months’ imprisonment, and Nieman was sentenced to 192 months’ imprisonment. Davis, Scott, Alvizo-Allison, and Nieman each must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Jennifer Crook, was sentenced to 10 years in State prison after pleading guilty in Woodbury County District Court to charges of intimidation with a dangerous weapon, going armed with intent, assault while participating in a felony, conspiracy, and aggravated assault.
Alvizo-Allison, Scott, Davis and Nieman are each being held in the United States Marshal’s custody until they can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States (1) Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives; (2) the Sergeant Bluff Police Department; (3) the Sioux City Police Department, (4) the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; (5) the Woodbury County Sherriff’s Office; and (6) the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4082.
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Images attached.
Unregistered St. Louis tax preparer pleads guilty to tax fraudRead the Press Release
ST. LOUIS – Lakisha Smith, 39, of St. Louis, Missouri, pleaded guilty to two counts of tax fraud. Smith appeared, today, before United States District Court Judge John A. Ross.
According to court documents, from 2013 to 2016, Lakisha Smith prepared approximately 28 fraudulent tax returns for her clients using the TaxAct commercial website. Smith prepared client returns reporting false income and withholdings in order to generate larger tax refunds. Smith typically received cash payments of up to $2,500.00 from the false refunds paid to her customers. The defendant was not registered with the Internal Revenue Service as a return preparer and she did not sign as the preparer on the returns that she prepared and filed for other individuals.
“Return preparer fraud is a priority for IRS Criminal Investigation and we are committed to investigating and prosecuting cases like this,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Paid return preparers must sign the returns they prepare and include their Preparer Tax Identification Number (PTIN) issued by the IRS. Taxpayers are encouraged to visit IRS.gov for tips about choosing a tax professional.”
Judge Ross has set sentencing for June 17, 2021 at 10:00 a.m.
The Internal Revenue Service investigated the case. Assistant United States Attorney Jennifer Roy is handling the case.
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Two Former Louisiana Supervisory Correctional Officers Sentenced for Civil Rights Offense Arising Out of the Death of an InmateRead the Press Release
Two Louisiana men, former jail supervisors, were sentenced today to five years in prison and over four years in prison respectively for being deliberately indifferent to an inmate’s serious medical needs.
As a result of this civil rights offense, 19-year-old Nimali Henry died in the custody of the St. Bernard Parish Prison (SBPP) on April 1, 2014. Henry died after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated.
Former SBPP Captain Andre Dominick, 61, of New Orleans, was sentenced to five years in prison. Dominick previously pleaded guilty to violating Henry’s civil rights under color of law. In pleading guilty, Dominick admitted that he knew that Henry had serious medical needs that required medication. Dominick acknowledged that he had reviewed Henry’s written request for help, in which she wrote that, if she did not continue the medical treatment her doctor had prescribed, there was a 90% chance she would die. Dominick also spoke with Henry about her medical condition; spoke with Henry’s social worker, who confirmed her medical needs; and observed Henry’s deteriorating physical condition while she was in jail. However, despite knowing Henry’s plight, Dominick – who was also acting as the medical officer during Henry’s incarceration – failed to take any reasonable steps to get her the medical attention she needed, as he was required to do under the law.
Former SBPP Corporal Timothy Williams, 41, of New Orleans, was sentenced to 57 months in prison. Williams also previously pleaded guilty to violating Henry’s civil rights under color of law. In his guilty plea, Williams admitted that he knew from his conversations with Henry and her fellow inmates that Henry had serious medical conditions that required medication. Williams also personally observed Henry as she grew sicker throughout her incarceration. However, Williams failed to take any reasonable steps to get Henry necessary medical care for her serious medical needs, as the law required him to do. In his factual basis, Williams further admitted that, rather than obtain medical care for Henry, he placed her in a holding cell, a placement typically reserved for misbehaving inmates, in order to discourage her from making future medical complaints. He also told Henry’s fellow inmates to stop requesting help on Henry’s behalf.
“Nimali Henry’s death was not the result of neglect or a lapse of judgment. Her death was the slow, painful, and completely preventable result of the deliberate choices made by these defendants, each of whom knew that he had the constitutional duty to provide necessary medical care for a young woman who was completely dependent on them for help while she was in their custody,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “Prosecuting corrections officers who intentionally violate their constitutional responsibilities is a critical part of the Department’s mission.”
“The protection of all of our citizens’ civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the FBI, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens' civil rights.”
“Captain Andre Dominick and Corporal Timothy Williams were responsible for the welfare of inmates at the St. Bernard Parish Prison.” said Special Agent in Charge Bryan A. Vorndran for the FBI New Orleans Field Office. “Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused or neglected. Their actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address her known medical conditions, ultimately resulting in her death. The FBI New Orleans Field Office is appreciative of its partnerships with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana and we remain committed to protecting the rights of all Americans, to include those incarcerated.”
On March 10, two former SBBP Deputies, Lisa Vaccarella and Debra Becnel, were sentenced for their roles in covering up the circumstances of Henry’s death.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight for the Eastern District of Louisiana.
Two Former Louisiana Supervisory Correctional Officers Sentenced for Civil Rights Offense Arising Out of the Death of an InmateRead the Press Release
WASHINGTON – Two Louisiana men, former jail supervisors, were sentenced today to five years in prison and over four years in prison respectively for being deliberately indifferent to an inmate’s serious medical needs.
As a result of this civil rights offense, 19-year-old Nimali Henry died in the custody of the St. Bernard Parish Prison (SBPP) on April 1, 2014. Henry died after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated.
Former SBPP Captain Andre Dominick, 61, of New Orleans, was sentenced to five years in prison. Dominick previously pleaded guilty to violating Henry’s civil rights under color of law. In pleading guilty, Dominick admitted that he knew that Henry had serious medical needs that required medication. Dominick acknowledged that he had reviewed Henry’s written request for help, in which she wrote that, if she did not continue the medical treatment her doctor had prescribed, there was a 90% chance she would die. Dominick also spoke with Henry about her medical condition; spoke with Henry’s social worker, who confirmed her medical needs; and observed Henry’s deteriorating physical condition while she was in jail. However, despite knowing Henry’s plight, Dominick – who was also acting as the medical officer during Henry’s incarceration – failed to take any reasonable steps to get her the medical attention she needed, as he was required to do under the law.
Former SBPP Corporal Timothy Williams, 41, of New Orleans, was sentenced to 57 months in prison. Williams also previously pleaded guilty to violating Henry’s civil rights under color of law. In his guilty plea, Williams admitted that he knew from his conversations with Henry and her fellow inmates that Henry had serious medical conditions that required medication. Williams also personally observed Henry as she grew sicker throughout her incarceration. However, Williams failed to take any reasonable steps to get Henry necessary medical care for her serious medical needs, as the law required him to do. In his factual basis, Williams further admitted that, rather than obtain medical care for Henry, he placed her in a holding cell, a placement typically reserved for misbehaving inmates, in order to discourage her from making future medical complaints. He also told Henry’s fellow inmates to stop requesting help on Henry’s behalf.
“Nimali Henry’s death was not the result of neglect or a lapse of judgment. Her death was the slow, painful, and completely preventable result of the deliberate choices made by these defendants, each of whom knew that he had the constitutional duty to provide necessary medical care for a young woman who was completely dependent on them for help while she was in their custody,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “Prosecuting corrections officers who intentionally violate their constitutional responsibilities is a critical part of the Department’s mission.”
“The protection of all of our citizens’ civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the FBI, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens' civil rights.”
“Captain Andre Dominick and Corporal Timothy Williams were responsible for the welfare of inmates at the St. Bernard Parish Prison.” said Special Agent in Charge Bryan A. Vorndran for the FBI New Orleans Field Office. “Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused or neglected. Their actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address her known medical conditions, ultimately resulting in her death. The FBI New Orleans Field Office is appreciative of its partnerships with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana and we remain committed to protecting the rights of all Americans, to include those incarcerated.”
On March 10, two former SBBP Deputies, Lisa Vaccarella and Debra Becnel, were sentenced for their roles in covering up the circumstances of Henry’s death.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight for the Eastern District of Louisiana.
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Two Former Louisiana Correctional Officers Sentenced for Cover up Following Death of an InmateRead the Press Release
Two Louisiana women, former jail deputies, were sentenced today to over a year in prison and six months in prison respectively for their roles in covering up a civil rights violation arising out of an inmate’s death at the St. Bernard Parish Prison (SBPP).
On April 1, 2014, 19-year-old Nimali Henry died in custody after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated there.
Former SBPP Deputy Lisa Vaccarella of New Orleans was sentenced to 21 months in prison with three years of supervised release for failing to take any affirmative steps to alert federal authorities that she knew that other officers had willfully violated Ms. Henry’s civil rights by depriving her of necessary medical treatment. Vaccarella was also sentenced for lying to FBI agents about her own observations of Ms. Henry. Specifically, Vaccarella admitted that she falsely told FBI agents that she saw Henry get up on her command, stand without help, and walk without any difficulty when, in fact, Vaccarella watched Henry fall to the floor and then, without offering Henry any assistance, closed the cell door, leaving Henry lying on the floor.
Former SBPP Deputy Debra Becnel of New Orleans was sentenced to six months in prison with three months to be served in custody followed by three months of home detention and three years of supervised release for lying to FBI agents during the federal investigation. In pleading guilty, Becnel admitted that she falsely told FBI agents that neither Henry nor the inmates talked to her about Henry’s medical needs, when, in fact, Henry and other inmates had told Becnel and other correctional officers that Henry was ill, needed medical treatment and might die if she did not get her medical treatment.
“When officers obstruct justice and lie during investigations, it threatens our ability to prosecute civil rights cases and erodes the public’s confidence in law enforcement itself," said Pamela S. Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. "To ensure that justice prevails, the Department will continue to prosecute officers who lie to investigators and cover up crimes."
“The protection of all of our citizen’s civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the Federal Bureau of Investigation, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizen’s civil rights.”
"Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment," said Special Agent in Charge Bryan Vorndran for the FBI New Orleans Field Office. "Nimali Henry suffered incredible unusual punishment at the hands of Deputies Lisa Vaccarella and Debra Becnel. The two deputies willfully deprived Henry of the medical attention she desperately needed and lied to federal authorities to conceal their failure to act in a compassionate and humane manner, let alone honor the oath they swore to uphold. The law suffers the most when those in a position of trust abuse their power. The FBI New Orleans Field Office appreciates its partnerships with the trial attorneys from the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana.”
Former SBPP Captain Andre Dominick and former SBPP Corporal Timothy Williams are also due to be sentenced today for the role each played in Henry’s death. Dominick and Williams each have pleaded guilty to violating Henry’s civil rights under color of law by being deliberately indifferent to her serious medical needs.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Two Former Louisiana Correctional Officers Sentenced for Cover up Following Death of an InmateRead the Press Release
WASHINGTON – Two Louisiana women, former jail deputies, were sentenced today to over a year in prison and six months in prison respectively for their roles in covering up a civil rights violation arising out of an inmate’s death at the St. Bernard Parish Prison (SBPP).
On April 1, 2014, 19-year-old Nimali Henry died in custody after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated there.
Former SBPP Deputy Lisa Vaccarella of New Orleans was sentenced to 21 months in prison with three years of supervised release for failing to take any affirmative steps to alert federal authorities that she knew that other officers had willfully violated Ms. Henry’s civil rights by depriving her of necessary medical treatment. Vaccarella was also sentenced for lying to FBI agents about her own observations of Ms. Henry. Specifically, Vaccarella admitted that she falsely told FBI agents that she saw Henry get up on her command, stand without help, and walk without any difficulty when, in fact, Vaccarella watched Henry fall to the floor and then, without offering Henry any assistance, closed the cell door, leaving Henry lying on the floor.
Former SBPP Deputy Debra Becnel of New Orleans was sentenced to six months in prison with three months to be served in custody followed by three months of home detention and three years of supervised release for lying to FBI agents during the federal investigation. In pleading guilty, Becnel admitted that she falsely told FBI agents that neither Henry nor the inmates talked to her about Henry’s medical needs, when, in fact, Henry and other inmates had told Becnel and other correctional officers that Henry was ill, needed medical treatment and might die if she did not get her medical treatment.
“When officers obstruct justice and lie during investigations, it threatens our ability to prosecute civil rights cases and erodes the public’s confidence in law enforcement itself," said Pamela S. Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. "To ensure that justice prevails, the Department will continue to prosecute officers who lie to investigators and cover up crimes."
“The protection of all of our citizen’s civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the Federal Bureau of Investigation, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizen’s civil rights.”
"Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment," said Special Agent in Charge Bryan Vorndran for the FBI New Orleans Field Office. "Nimali Henry suffered incredible unusual punishment at the hands of Deputies Lisa Vaccarella and Debra Becnel. The two deputies willfully deprived Henry of the medical attention she desperately needed and lied to federal authorities to conceal their failure to act in a compassionate and humane manner, let alone honor the oath they swore to uphold. The law suffers the most when those in a position of trust abuse their power. The FBI New Orleans Field Office appreciates its partnerships with the trial attorneys from the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana.”
Former SBPP Captain Andre Dominick and former SBPP Corporal Timothy Williams are also due to be sentenced today for the role each played in Henry’s death. Dominick and Williams each have pleaded guilty to violating Henry’s civil rights under color of law by being deliberately indifferent to her serious medical needs.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
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Two Charged with Conspiracy to Defraud Bank, Bank Fraud and Aggravated Identity TheftRead the Press Release
CAMDEN, N.J. – A Camden County man and a Bronx, New York, man were charged for their participation in a scheme to steal bank customer identities and then use that information to steal more than $600,000, Acting U.S. Attorney Rachael A. Honig announced today.
Jamere Hill-Birdsong, 32, of Gloucester City, New Jersey, and Lamar Melhado, 31, of the Bronx, New York, are each charged in a 10-count indictment with one count of conspiracy to commit bank fraud, multiple counts of bank fraud and aggravated identity theft. Both Hill-Birdsong and Melhado were arrested and will appear before U.S. Magistrate Judge Ann Marie Donio in Camden federal court via videoconference this afternoon.
According to the indictment:
From August 2016 through August 2017, Hill-Birdsong and Melhado conspired with each other and others to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center. The conspirator bank employees would then take photographs or screenshots of the bank customer’s account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of moneys from the customer’s accounts.
Hill-Birdsong is charged with bank fraud conspiracy, five counts of bank fraud and one count of aggravated identity theft. Melhado is charged with bank fraud conspiracy, six counts of bank fraud and two counts of aggravated identity theft. Each count of conspiracy to commit bank fraud and bank fraud are punishable by a maximum of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Each count of aggravated identity theft is punishable by an additional consecutive term of imprisonment of up to two years.
Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Trenton Man Admits Conspiring to Distribute Fentanyl that Caused the Death of a Monmouth County WomanRead the Press Release
TRENTON, N.J. – A Trenton man admitted conspiring with others to distribute fentanyl that caused the death of a Monmouth county woman, Acting U.S. Attorney Rachael A. Honig announced today.
Quasaan Bethea, 33, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson on March 10, 2021, to Count Two of an indictment charging possession with intent to distribute fentanyl.
According to the documents filed in this case and statements made in court:
On May 15, 2018, Bethea conspired with others to distribute fentanyl to a 39-year-old Monmouth County woman, referred to in the indictment as Victim-1. Victim-1 had sought out Bethea and others to purchase heroin, not fentanyl, a significantly more potent narcotic than heroin. Bethea admitted that the fentanyl he sold to Victim-1 was stamped “CAMEL” and packaged to look like heroin. Shortly after Victim-1’s second purchase of fentanyl from Bethea and others, Englishtown police responded to a report of an overdose death. Upon their arrival, they discovered Victim-1, and in Victim-1’s possession were several wax folds of suspected heroin stamped “CAMEL” and empty wax folds stamped “CAMEL” as well. Laboratory analysis of these wax folds bearing the “CAMEL” stamp determined the substance to be fentanyl. An autopsy of Victim-1 found her cause of death to be acute fentanyl toxicity.
The count of conspiracy to distribute and possess with intent to distribute fentanyl carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 26, 2021.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Englishtown Police Department, under the direction of Peter S. Cooke, Jr., and the Trenton Police Department’s Narcotics Task Force, under the direction of Police Director Sheilah Coley, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill, of the Office’s Opioids Abuse & Prevention Task Force.
Three Members of Monument Street Drug Trafficking Organizations in East Baltimore Sentenced to Federal Prison and a Fourth Defendant Will Be Sentenced on FridayRead the Press Release
Baltimore, Maryland – In the last week, U.S. District Judge Ellen L. Hollander has sentenced three members of the Monument Street drug trafficking organizations to at least five years in federal prison related to their roles in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. Specifically, on March 4, 2021, Judge Hollander sentenced Tony Solomon, age 55, of Baltimore, to 10 years in federal prison, followed by five years of supervised release on charges of conspiracy and possession with intent to distribute controlled substances. On March 9, 2021, Judge Hollander sentenced Perez Scruggs, age 25, and Noah Walston age 30, both of Baltimore, to 65 months and five years in federal prison, respectively, each followed by three years of supervised release. Scruggs had previously pleaded guilty to the drug conspiracy and to possession with intent to distribute cocaine. Walston pleaded guilty to the drug conspiracy and to being a felon in possession of a firearm. A fourth co-defendant, Windeer Washington, age 45, of Baltimore is scheduled to be sentenced on March 12, 2021. Washington and the government have agreed that, if the Court accepts his plea agreement, Washington will be sentenced to three years in federal prison.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said Acting U.S. Attorney Jonathan F. Lenzner. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, investigators identified Solomon as a source of supply in the conspiracy; identified Scruggs and Washington as wholesale drug customers; and identified Walston as a drug distributor. Walston also operated another street level shop in the 800 block of North Milton, in conjunction with the OTM shop. On numerous occasions law enforcement intercepted calls in which the defendants discussed the distribution of drugs, including powder cocaine and crack cocaine, heroin, and fentanyl, among others.
Solomon admitted that he maintained at least two stash locations used for storing, cutting, and packaging controlled dangerous substances with other members of the conspiracy, located in the 1600 block of North Spring Street and the 3200 block of Brighton Street, both in Baltimore. Solomon conspired with coconspirators to use the North Spring Street location to meet with drug customers for the purposes of collecting money and providing controlled substances to them.
In January 2019, law enforcement executed search warrants at both stash locations, and at residences associated with Solomon, recovering a total of approximately 200 grams of crack cocaine, five grams of powder cocaine, and 147 grams of a heroin/fentanyl mixture; drug paraphernalia, including a small hydraulic press, small and large kilo presses, digital scales, gel caps, and packaging materials; more than $41,000 in cash, believed to be drug proceeds; and a loaded .45-caliber semi-automatic pistol with eight .45-caliber cartridges, which Solomon admitted he possessed in connection to his drug trafficking activities.
As detailed in their plea agreements, on January 2, 2019, investigators executed a search and seizure warrant at Washington’s residence in the 2900 block of McElderry Street in Baltimore, where they recovered approximately 118 grams of cocaine and fentanyl mixture and 34 grams of crack cocaine, a small hydraulic press and mail in Washington’s name. On May 23, 2019, investigators executed a search warrant at Scruggs’ residence in the 2400 block of Woodbrook Avenue in Baltimore. Investigators seized approximately 255 grams of a mixture containing cocaine; an electric scale with drug residue; and three firearms and ammunition. Specifically, law enforcement recovered a .22 caliber semi-automatic long rifle; a 12 gauge shotgun pump action, with no serial number; a 12 gauge semi-automatic shotgun with an extended magazine and five 12 gauge cartridges mounted on the side of the weapon; and six 9mm cartridges, as well as one additional 12 gauge shotgun shell found in a china cabinet. Washington and Scruggs admitted that they possessed the drugs with the intent to distribute them for sale.
Additionally, on June 9, 2020, Baltimore Police officers (BPD) attempted to initiate a traffic stop of Walston in the area of the 200 block of North Caroline Street in Baltimore. However, the vehicle failed to stop, and attempted to speed away to evade law enforcement. Due to high traffic, the vehicle could not escape the officers, and the driver, later identified as Walston, fled the vehicle, throwing a black gun away with his right hand as he ran. The gun, a 9mm Luger semi-automatic pistol, loaded with six rounds of ammunition, was later recovered in the same area that Walston was observed throwing the gun.
Solomon, Scruggs, and Walston are all prohibited from possessing firearms or ammunition as a result of previous felony convictions.
Throughout the course of their involvement, it was reasonably foreseeable to Solomon and Scruggs, and within the scope of the conspiracy that they or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Washington, and within the scope of the conspiracy that he would distribute between 500 grams and two kilograms of cocaine, as well as quantities of cocaine base and fentanyl, during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Walston, and within the scope of the conspiracy that he or other members of the conspiracy would distribute more than 280 grams of cocaine base (“crack”), as well as quantities of cocaine, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Of the 25 defendants indicted in this case, 14—including Solomon, Scruggs, Walston, and Washington—have pleaded guilty. The remaining defendants have trial dates in May or November 2021.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Suspected Gang Member Arrested, Charged with Being A Felon in Possession of A Firearm After Leading Police on A ChaseRead 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 Sydney Johnson, 28, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, in August 2019, the FBI Safe Streets Task Force initiated an investigation into members of the Fruit Belt Posse (FBP). The FBI learned that members and associates of the FBP are actively engaged in the distribution of narcotics, firearms offenses, and gang activity. On February 26, 2021, task force members and the Niagara Frontier Transportation Authority (NFTA) Police Department were conducting surveillance on the defendant, a suspected member of the FBP. Investigators observed Johnson, whose driver’s license is currently suspended, driving a rental vehicle in the City of Buffalo. NFTA marked patrol units initiated a traffic stop on the defendant’s vehicle, but Johnson attempted to elude police officers. As officers pursued the vehicle, one officer observed a firearm being thrown from the passenger side of Johnson’s vehicle. In addition, dash cam footage from the patrol vehicle captured the firearm being thrown from the vehicle. Officers retrieved the loaded firearm from the side of the road. Johnson continued to flee and was later observed exiting the vehicle on foot and running. NFTA officers took the defendant into custody after a foot chase.
In October 2020, Johnson was convicted of Attempted Criminal Possession of a Weapon in the Second Degree in New York State Court and as a result is legally prohibited from possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained pending trial.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Niagara Frontier Transportation Authority Police Department, under the direction of Chief George Gast; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
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.
# # # #Superior Residents Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Steven Ranta, 42, Superior, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 96 months in federal prison for possessing with the intent to distribute 50 grams or more of methamphetamine as part of a conspiracy. This prison term will be followed by 5 years of supervised release. Ranta pleaded guilty to the conspiracy charge on February 4, 2021. Ranta’s co-defendant, Christina Nord, 35, Superior, pleaded guilty and was sentenced on December 29, 2020 for her role in the same conspiracy to 3 years in federal prison followed by 3 years of supervised release.
The charges against Ranta and Nord are the result of an investigation conducted by the Superior Police Department in November and December 2019. As a part of this investigation, officers arranged a series of controlled buys for methamphetamine. A confidential informant successfully purchased methamphetamine from either Ranta, Nord, or both together, on a total of 9 occasions. In a search of Ranta’s apartment on December 31, 2019, investigators located an additional 136 grams of methamphetamine and indicia of drug distribution.
In sentencing both Nord and Ranta, Judge Peterson noted the seriousness of their offenses. With respect to Ranta’s sentence, Judge Peterson explained that a lengthy sentence was warranted given the sheer volume of Ranta’s criminal history, which included a prior federal conviction for methamphetamine distribution; crimes of violence; and sexual deviance. Judge Peterson also expressed that Ranta’s criminal conduct appeared to be related to his lack of self-control, and that this created a real danger to the community. In contrast, in sentencing Nord, Judge Peterson imposed a shorter sentence given her minimal criminal history.
The charges against Ranta and Nord were the result of an investigation conducted by the Superior Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.