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22 April 2021
Robeson County Man Convicted of Firearm Charges and Assault on Federal OfficersRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Robeson County man yesterday on multiple firearm charges and for assaulting two federal officers.
According to court records and evidence presented at trial, Gary Lynn Gatlin, 50, was charged with a 3-Count Superseding Indictment on April 15, 2020. Evidence presented at trial showed that on February 8, 2019, two Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) agents were conducting surveillance on Water Tower Road in Orrum, North Carolina on suspicion of firearm trafficking. While sitting in their vehicle, they were approached by the defendant, Gary Gatlin, who accused them of being on his property and threatened to blow their heads off. Gatlin left and returned a few minutes later carrying a pump action shotgun. Gatlin fired a shot into the air and then fired two more shots at the vehicle. Both officers identified themselves as police. In response, Gatlin crouched down, reloaded his shotgun, and fired two more shots into the vehicle before the officers escaped.
Officers with the Robeson County Sheriff’s Office arrived on the scene to search for Gatlin and recover evidence. While searching the property, they recovered five empty 12-gauge shotgun shell cartridges. They also recovered a Mossberg Maverick Model 88 shotgun. A firearm examiner determined that the Model 88 shotgun fired the shells recovered on the scene. In addition, officers executed a search warrant at 888 Water Tower Road, Gatlin’s residence, and recovered additional firearms.
A review of Gatlin’s criminal history shows that he pled guilty to common law robbery in Robeson County in 2008, which is a class G felony.
Gatlin faces a mandatory minimum of 120 months in prison when sentenced during the September 7, 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms & Explosives, Robeson County Sheriff’s Office, Harnett County Sheriff’s Office, Cumberland County Sheriff’s Office, and the State Bureau of Investigation are investigating the case and Assistant U.S. Attorneys Chad E. Rhoades and Robert J. Dodson are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:19-cr-00033-FL-1.
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Residents of Davis, Sacramento and Roseville Indicted for International Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Parampreet Singh, 55, of Davis; Ranvir Singh, 38, of Sacramento; and Amandeep Multani, 33, of Roseville, charging them with conspiracy to distribute and possess with intent to distribute at least 5 kilograms of cocaine, at least 1 kilogram of a mixture containing heroin, opium, and ketamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, no later than August 2020, an investigation began into a drug trafficking organization that was based in Sacramento and extended to the greater Toronto Area in Canada. Parampreet Singh, Ranvir Singh and Multani allegedly were facilitating the trafficking of cocaine, heroin, opium, and ketamine across international borders. Between October 2020 and March 2021, the defendants arranged multiple kilogram-level drug deals with a Canadian undercover officer using encrypted applications on their cellphones.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the York Regional Police in Canada, the Royal Canadian Mounted Police, and the Placer County Special Investigations Unit. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Parampreet Singh was ordered to be released upon posting a $6 million secured bond. Ranvir Singh was ordered to be released upon posting a $700,000 secured bond. Amandeep Multani was ordered detained pending trial.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Reno Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
RENO, Nev. – A Reno man is in federal custody for receipt and possession of child pornography after making his initial court appearance on Monday, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
According to court documents, beginning on or about April 24, 2018, Ryan Thomas Eley, 24, received and possessed USB flash drives, an external hard drive, and a cell phone that contained images of minors engaged in sexually explicit conduct. Some of these images were of prepubescent minors and minors under twelve years of age.
A federal grand jury had returned an indictment charging Eley with one count of receipt of child pornography and one count of possession of child pornography. Eley made his initial court appearance before U.S. Magistrate Judge William G. Cobb, who scheduled a jury trial to start on June 21, 2021 before Chief U.S. District Judge Miranda M. Du.
If convicted, Eley faces a maximum statutory sentence of 20 years in prison.
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, Washoe County Sheriff’s Office, Sparks Police Department, Homeland Security Investigations, and the Nevada Attorney General’s Office. Assistant U.S. Attorney Randolph J. St. Clair is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 and for information about internet safety education, please visit www.justice.gov/psc.
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Reagor Dykes Owner Indicted for Bank FraudRead the Press Release
Reagor Dykes Auto Group owner Bart Reagor has been charged with lying about using business loans for personal expenses, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Thursday, a federal grand jury indicted Bart Wade Reagor, 55, on two counts of bank fraud and one count of making false statements to a bank insured by the FDIC. He will make his initial appearance before U.S. Magistrate Judge Lee Ann Reno in Amarillo on Monday at 2 p.m.
“Even as his businesses struggled financially, Mr. Reagor diverted business loan funds into his personal bank accounts, expressly violating his agreement with the bank,” said Acting U.S. Attorney Prerak Shah. “Lying to an FDIC-insured financial institution is a federal crime, one we will not abide. We are determined to hold to account every Reagor Dykes employee who engaged in financial misconduct.”
“Mr. Reagor used his executive influence to allegedly defraud a lending institution and cause the loss of a significant amount of money,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Corporate fraud schemes, like those that involve diverting millions of dollars to personal funds, have the potential to cause immeasurable damage to the public’s confidence in our economy.”
According to the indictment, in the first quarter of 2017, one of Reagor Dykes’ floorplan lenders conducted an audit that placed the auto group in a weak cash position.
In order obtain cash to continue operations, D & R Acquisitions, a limited liability company formed to hold Reagor Dykes’ real estate assets, entered into a loan agreement with International Bank of Commerce (IBC). The agreement included a $10,000,000 working capital loan, which was distributed by IBC to D&R in two tranches: $5,000,000 in July 2017 and another $5,000,000 in February 2018, to be disbursed to the various RDAG entities.
However, in applying for the loan, Mr. Reagor allegedly misrepresented its purpose, concealing from IBC the fact that he planned to divert some of the proceeds from the working capital loan into his own personal account for personal expenses. (The loan agreement expressly prohibited Mr. Reagor and others from diverting loan proceeds to their personal bank accounts, and IBC would not have approved the loan if Mr. Reagor or anyone else had disclosed to IBC that some of the loan proceeds would be diverted to Mr. Reagor’s personal bank accounts.)
In total, Mr. Reagor diverted more than $1.7 million to his personal account at Prosperity Bank -- $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money.
Prior to Mr. Reagor’s indictment, 15 of his employees pleaded guilty to various crimes involving dummy flooring and check kitting at Reagor Dykes, including:
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud; he is slated to be sentenced on July 27.
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 20.
- Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 13.
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
- Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
- Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 6.
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud; she is slated to be sentenced on May 13.
- Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony; she is slated to be sentenced on May 6.
- Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud; he is slated to be sentenced May 6.
- Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony; he is slated to be sentenced June 22.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Reagor is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Reagor faces up to 90 years in federal prison, and will be required to forfeit any property traceable to the offense.
The Federal Bureau of Investigation’s Dallas Field Office and Internal Revenue Services - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case.
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud; he is slated to be sentenced on July 27.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced Jeffrey L. Viken, District Judge.
Marvin Brings Plenty, age 30, was sentenced on April 16, 2021, to 30 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Brings Plenty, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Hi-Point 9mm Luger semi-automatic pistol in May 2020 at Rapid City, which was found after Brings Plenty came into contact with law enforcement during a traffic stop.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case 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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Brings Plenty was immediately remanded to the custody of the U.S. Marshals Service.
Prescription Drug “Take Back Day” to Take Place Saturday, April 24th in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Saturday, April 24, 2021, from 10:00 a.m. to 2:00 p.m. is National Prescription Drug “Take Back Day.” This year marks the 20th biannual event in the ten-year history of the Drug Take Back initiative. Drug Take Back Day gives the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous, expired, unused, and unwanted prescription drugs.
The United States Attorney’s Office for the Eastern District of Washington will be partnering this Saturday with the Drug Enforcement Administration (DEA), Spokane Police Department, and other community partners at Northtown Mall, 4750 North Division, located in the northwest corner of Division Street and Queen Avenue in Spokane. To keep everyone safe, collection sites will follow local COVID-19 guidelines and regulations.
At its last Take Back Day in October 2020, DEA collected nationally a record-high amount of expired, unwanted, and unused prescription medications, with the public turning in close to 500 tons of unwanted drugs. Over the 10-year span of Take Back Day, DEA has brought in more than 6,800 tons of prescription drugs. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential. Of those numbers, Washington State collected 13,842 pounds of prescription drugs at approximately 56 collections sites operated by the DEA and 61 of its state and local law enforcement partners. In its previous events, Washington State alone has collected 270,260 pounds of prescription drugs. Overall, in its 19 previous Take Back events, DEA and its partners have taken in 13,684,848 pounds (6,842.4 tons) of pills.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic. The increase in drug overdose deaths appeared to have begun prior to the COVID-19 health emergency but accelerated during the pandemic.
Acting U.S. Attorney Harrington said, “Participating in drug take-back events is one step that individuals can do to help positively impact the opioid crisis and protect their loved ones. We now face a national epidemic reaching every corner of America. Opioid overdoses have skyrocketed since the late 1990’s, becoming the worst drug epidemic in modern American history. The United States is seeing an increase in overdose deaths during the COVID-19 pandemic. Prescription drug misuse and overdose deaths do not discriminate – they can impact anyone of any age, race, gender or demographic.”
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day. The FDA provides information on how to properly dispose of prescription drugs. To find out where year-round disposal sites are located, go to https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.
For more information about Annual Prescription Drug Take Back Day, go to www.DEATakeBack.com
Pittsburgh Felon Sentenced to 8 Years in Prison for Illegally Possessing a Stolen Rifle and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to eight years (96 months) in prison on his conviction of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Cheron Shelton, age 34.
According to information presented to the court, on March 12, 2016, Shelton possessed a stolen .22 caliber rifle and ammunition that was recovered from his mother’s residence by Allegheny County Police Homicide Detectives. The rifle and ammunition were recovered during the investigation into the March 9, 2016 murder of five people in Wilkinsburg, PA. The rifle was not used in the March 9, 2016 mass shooting.
Assistant United States Attorneys Doug Maloney and Brendan Conway prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the efforts of the Allegheny County District Attorney’s Office, the Allegheny County Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The resolution of this case was the result of the collaborative effort of these agencies.
Ph.D. Chemist Convicted of Conspiracy to Steal Trade Secrets, Economic Espionage, Theft of Trade Secrets and Wire FraudRead the Press Release
WASHINGTON – A federal jury in Greeneville, Tennessee, convicted a U.S. citizen today of conspiracy to steal trade secrets, economic espionage and wire fraud.
Following a twelve-day trial, Dr. Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage, and wire fraud. You was originally indicted in February 2019 for trade secret offenses and wire fraud, and was charged in a superseding indictment with economic espionage and conspiracy to commit economic espionage in August 2020.
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, Georgia, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, and cost nearly $120,000,000 to develop.
According to court documents and evidence presented at trial, You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). Documents related to You’s Thousand Talents Program application were admitted at trial; those documents, and other evidence presented at trial, showed the defendant’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
You is scheduled to be sentenced on Nov. 1 at 10:30 a.m.
Assistant Attorney General John C. Demers of the National Security Division; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case.
Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. April Denard and Bryan Brandenburg of the U.S. Attorney’s Office for the Eastern District of Tennessee provided technical assistance at trial.
Ph.D. Chemist Convicted of Conspiracy to Commit Economic Espionage, Theft of Trade Secrets, and Wire FraudRead the Press Release
GREENEVILLE, Tenn. Following a twelve-day trial, Dr. Xiaorong You, a/k/a Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit economic espionage, conspiracy to steal trade secrets, possession of stolen trade secrets, economic espionage, and wire fraud. Dr. You was originally indicted in February 2019 for trade secret offenses and wire fraud, and a superseding indictment adding economic espionage and conspiracy to commit economic espionage issued in August 2020. Sentencing has been set for November 1, 2021 at 10:30 a.m., before the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
According to court documents and evidence presented at trial, Dr. You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. Evidence introduced at trial proved that Dr. You stole these trade secrets for the purpose of establishing a global can-coating manufacturer in China with a Chinese chemical company called the Weihai Jinhong Group. Dr. You’s plan was designed to benefit the Chinese Communist Party, the Chinese government, the government of the Shandong Province, and the government of the City of Weihai – a city of 2.5 million people on the Northeast Coast of China – by advancing the Made in China 2025 Initiative and the 13th Five-Year Plan.
Dr. You was granted access to the trade secrets while working at the Coca-Cola company in Atlanta, Georgia, and Eastman Chemical company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical company, and cost nearly $120,000,000 to develop.
According to court documents and evidence presented at trial, Dr. You stole the trade secrets to set up a new BPA-free coating company in China. Dr. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). Documents related to Dr. You’s Thousand Talents Program application were admitted at trial; those documents, and other evidence presented at trial, showed the defendant’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through Aug. 31, 2017, Dr. You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of Dr. You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, Dr. You was employed as a packaging application development manager for Eastman Chemical company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
Assistant Attorney General John C. Demers of the National Security Division; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case investigated the case.
Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. April Denard and Bryan Brandenburg of the U.S. Attorney’s Office for the Eastern District of Tennessee provided technical assistance at trial.
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Paterson Man Admits Distributing Heroin that Caused Death of New York ResidentRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man today admitted possessing and distributing heroin that caused the death of a Warwick, New York, resident, Acting U.S. Attorney Rachael A. Honig announced.
Shameik Byrd, 31, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of distribution and possession with intent to distribute heroin relating to the overdose death of a 25-year-old man, identified in court documents as Victim-1.
According to the documents filed in this case and statements made in court:
On April 1, 2016, Byrd sold Individual-1 and Individual-2 five glassine envelopes of heroin stamped “Trap Queen.” The next day, Byrd sold Individual-1 and Inidividual-2 approximately 13 additional glassine envelopes of heroin stamped “Trap Queen.” Immediately following each purchase, Individual-1 and Individual-2 sold the same heroin they had obtained from Byrd to Victim-1. On April 3, 2016, officers from the Warwick Police Department responded to a residence on a report of an unresponsive male, Victim-1, who was later pronounced dead at the scene. Law enforcement agents observed nine empty glassine envelopes stamped “Trap Queen” and eight glassine envelopes of heroin stamped “Trap Queen.” An autopsy was later conducted on Victim-1, whose cause of death was determined to be “acute heroin intoxication.”
The count of possession and distribution of heroin carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 14, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the New Jersey Division of Criminal Justice, Gangs and Organized Crime Bureau, under the direction of Director Veronica Allende; detectives from the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and detectives from the Warwick Police Department, under the direction of Chief Thomas McGovern Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill, of the Office’s Health Care Fraud Unit.
North Carolina Man Sentenced for COVID-19 Relief Fraud SchemesRead the Press Release
A North Carolina man was sentenced today to 63 months in prison for perpetrating three fraud schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s Economic Injury Disaster Loan program (EIDL), created to assist small business owners during the pandemic.
Brandon Lewis, 35, of Greensboro, pleaded guilty to two counts of wire fraud and one count of making a false statement to the Small Business Administration (SBA) on Aug. 31, 2020.
According to court documents, in March 2020, Lewis created a fake website for orders for pandemic-critical goods, defrauding consumers of hundreds of thousands of dollars. Lewis also created a fake “COVID-19 Relief Fund,” which he used to defraud dozens of small business owners, and submitted approximately 68 fraudulent applications for loans and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; Acting Special Agent in Charge Mona Passmore of the IRS Criminal Investigation (IRS-CI); Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General’s Eastern Region; and Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA. Trial Attorney David A. Stier, formerly of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Meredith C. Ruggles prosecuted the case with valuable assistance from the Fraud Section’s Victim Assistance Unit.
In light of the large volume of victims, the court set a deadline of July 21, 2021, for issuance of a final order of restitution. Victims may find additional information here: https://www.justice.gov/criminal-vns/case/brandon-lewis, and may contact the Victim Assistance Line toll-free at (888) 549-3945 or by email at [email protected].
North Carolina Man Is Indicted for $1.5 Million Covid-Relief FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted a North Carolina man for fraudulently obtaining more than $1.5 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP), announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Mona Passmore, Acting Special Agent in Charge of the of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations in the federal indictment, Maurice Kamgaing, 41, of Archdale, N.C., and a former Charlotte resident, fraudulently obtained more than $1.5 million in COVID-relief funds, by submitting fraudulent PPP loan applications to a federally insured financial institution on behalf of two businesses. The indictment alleges that the two PPP loan applications contained false and misleading information and fraudulent supporting documentation about the two businesses, including fake federal tax filings and payroll reports.
As alleged in the indictment, on April 7, 2020, Kamgaing filed a fraudulent application for a PPP loan for Apiagne, Inc. (Apiagne). The Apiagne PPP application allegedly included false information about the company’s purported payroll, and fraudulent documentation about its monthly payroll disbursements. For example, according to the indictment, Apiagne’s PPP loan application falsely represented that the company had an average monthly payroll of $260,000 and needed the loan to support its ongoing operation and its 46 employees. As a result of the fraudulent representations, on or about May 6, 2020, Apiagne received a PPP loan for $856,463, which Kamgaing used for unauthorized purposes and for his personal benefit.
According to allegations in the indictment, on April 27, 2020, Kamgaing filed another fraudulent PPP loan application on behalf of AKC Solutions, which falsely represented that the company had 23 employees, and had an average payroll of $260,000. As a result of the fraudulent representations, a PPP loan for $650,000 was disbursed by a financial institution on May 5, 2020, and within days of receiving the loan Kamgaing allegedly used the proceeds for improper purposes and personal expenses.
Kamgaing is charged with wire fraud in relation to a disaster benefit which carries a maximum prison sentence of 30 years in prison; two counts of making false statements to a bank which carry a maximum penalty of 30 years in prison per count; and two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years per count.
The charges in the indictment are allegations. The defendant is innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and IRS-CI for their investigation of this case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (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. In April 2020, Congress authorized over $300 billion in additional PPP 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.
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. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Newton Man Charged with Defrauding Federal Agency by Inflating Expenses and Submitting Fake BidsRead the Press Release
BOSTON – A Newton man was charged yesterday in connection with defrauding the General Services Administration.
Benedetto Valente, 60, was charged and has agreed to plead guilty to one count of wire fraud. A plea hearing has not yet been scheduled by the court.
According to the charging documents, Valente engaged in a scheme to defraud the U.S. General Services Administration (GSA), as well as the company he worked for, by causing expenses to be billed that neither GSA nor the company actually incurred. Valente allegedly did so by inflating payroll expenses and charging items he used in his personal business and then creating fake documents to make it appear that those items were intended for GSA. Valente also allegedly arranged to award contracts for scaffolding and masonry repair to a family member, including by submitting fake bids so his family member could obtain the contracts, and by diverting a subcontract awarded to another contractor to his family member at an inflated price.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. 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 Dattoria, Special Agent in Charge of the General Services Administration, Office of Inspector General, Boston Field Investigations Office made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is 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.
New York Man Facing Federal Indictment in Maryland for Cyberstalking and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late yesterday charging Desmond Babloo Singh, age 19, of New York, New York, for the federal charges of cyberstalking and aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“HSI remains committed to protecting the public from cyberstalking and other online harassment,” said Special Agent in Charge James R. Mancuso of Homeland Security Investigations Baltimore field office. “The internet and social media platforms are not safe havens for criminal conduct and we will continue to pursue and hold the individuals accountable for their crimes.”
According to the four-count indictment, Singh, the younger brother of a former middle school classmate of Victim 1’s, began following Victim 1 on multiple social media platforms after Singh’s family moved from Maryland to Texas. Between approximately 2014 to February 14, 2020, Victim 1 and Singh exchanged limited communications online, but there was never a romantic relationship of any sort between Singh and Victim 1; in fact, Victim 1 had never met Singh in person. Despite this, on Valentine’s Day 2020, Singh shared with Victim 1 a private social media post in which he professed his love for Victim 1. He also shared with Victim 1 a separate online posting in which he further expressed his romantic interest in Victim 1. Victim 1 rebuffed his advances and eventually asked him not to contact her any further.
The indictment alleges that over the course of the next 10 months, Singh orchestrated and executed a relentless cyberstalking and harassment campaign against Victim 1. Singh carried out a similar cyberstalking campaign against Victim 2, an associate of Victim 1’s, whom Singh perceived to be a romantic rival. Specifically, the indictment alleges Singh used more than 100 different social media, electronic communication, and phone accounts to send Victim 1 harassing communications, some of which included express or implied threats of death or bodily injury, sexualized violence. The communications also contained racial slurs directed at Victim 1. The indictment further alleges that Singh used images of Victim 1 in the harassing communications, in which he denigrated Victim 1’s appearance and character and encouraged others to harass Victim 1. The indictment further alleges Singh posted identifying information of Victim 1 including her address, phone number, school, social media identities, birth date, and other identifying information. One post containing Victim 1’s identifying information included the text, “UGLY [racial slur] GIRL PLS DO MORE TO HER”.
According to court documents, Victim 1 pleaded with Singh and his immediate family members to cease the online harassment, but to no avail. Victim 1 told Singh that if he did not cease the harassment, she would seek a no-contact order. In response, Singh allegedly sent a text message to Victim 1 stating, “You think I’m kidding I’m genuinely never going to stop, its going to be really funny…”
On July 19, 2020, a harassing account, allegedly created by Singh, posted Victim 1’s parents’ Maryland address and stated there would be a party at that address the following day. On July 20, 2020, Victim 1’s parents’ address was the subject of a false bomb threat, which was reported anonymously to the Baltimore County Police. The following day, Singh allegedly texted Victim 1 from an anonymous phone number, writing “you’re getting swatted.”
As detailed in court documents, Singh’s alleged harassment campaigns also involved gaining unauthorized access to Victim 1’s social media accounts. Specifically, Singh is alleged to have gained unauthorized access to two such accounts. Singh used his unauthorized access to those accounts to obtain private photos of Victim 1, which he then posted online. Singh also posted pictures of himself from one of Victim 1’s accounts, along with the text, “omg he’s so hot!!!”.
Finally, Singh allegedly conducted a similar cyberstalking and harassment campaign targeting Victim 2, which included creating social media accounts to denigrate Victim 2’s character, post Victim 2’s identifying information, and threats to engage Victim 2 in physical violence. For instance, Singh allegedly posted a video to social media platforms, which showed an unidentified person knocking on front door of a residence where Victim 2 previously lived. In this communication and others, Singh allegedly threated to seek out and fight Victim 2.
If convicted, Singh faces a maximum sentence of five years in federal prison for each of two counts of cyberstalking and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Singh is currently detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christopher M. Rigali and Zachary A. Myers, who are prosecuting this case.
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New York City Council Member Pleads Guilty to Tax FraudRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced that CHAIM DEUTSCH, a New York City Council Member, was charged and pled guilty today in Manhattan federal court to filing a false tax return in connection with outside income he received from his real estate management corporation. DEUTSCH pled guilty before United States Magistrate Judge James L. Cott.
U.S. Attorney Audrey Strauss said: “New York City Council Member Chaim Deutsch admitted today that he defrauded the IRS in connection with his real estate business. As an elected official and community leader, Deutsch had a particular responsibility to follow the law. Instead, over a multi-year period, Deutsch concealed his true business income to avoid paying his fair share of taxes. My Office will continue to work tirelessly with our law enforcement partners to hold our elected officials accountable when they break the law for their own financial benefit.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “The defendant’s admissions today are the result of the hard work of a talented and dedicated cadre of IRS CI special agents and federal prosecutors. This investigation should also make it clear that no one is above paying their fair share of taxes, even those who occupy elected office.”
DOI Commissioner Margaret Garnett said: “It is dispiriting when a sitting City Councilmember is convicted of a crime. Rather than set an example of integrity and fidelity to the rule of law, this City Councilman’s actions placed personal advantage over the public interest, and undermined public trust in elected officials. DOI was pleased to work side-by-side with our partners at the IRS and the U.S. Attorney’s Office for the Southern District of New York on this investigation.”
According to the allegations contained in the Information, other court filings, statements made during court proceedings, and publicly available information:
Since in or about 2014, DEUTSCH has served as the New York City Council Member for the 48th District, which includes portions of Brooklyn. During at least a portion of that time, DEUTSCH was the sole owner of Chasa Management, Inc., a real estate management business. In or about March 2016, DEUTSCH filed a personal tax return for calendar year 2015 that included false and fraudulent information concerning his income and business expenses in connection with operating Chasa Management. In total, during the tax years 2013 through 2015, DEUTSCH’s failure to properly pay taxes on his income from Chasa Management evaded approximately $82,076 in taxes due to the IRS. Effective on or about January 1, 2017, New York City Council Members were prohibited from earning most outside income.
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DEUTSCH, 52, of Brooklyn, New York, pled guilty to a single count of filing a false tax return for the tax year 2015, and agreed to restitution in the amount of at least $82,076 plus interest. DEUTSCH is scheduled to be sentenced before Judge Cott on July 29, 2021, at 10:00 a.m.
The charge against DEUTSCH carries a maximum sentence of one year in prison, a maximum term of one year of supervised release, a maximum fine of $100,000, and an order of restitution. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Ms. Strauss praised the outstanding work of IRS-CI and the Special Agents of the U.S. Attorney’s Office. Ms. Strauss also thanked the New York City Department of Investigation for its assistance in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
Nevada Man Sentenced to 18 Months in Prison for Defrauding Banks in $9 Million Shotgun Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Henderson, Nevada, man was sentenced today to 18 months in prison for his role in a scheme to use bogus information and simultaneous loan applications at multiple banks – known as “shot-gunning” – to attempt to obtain home equity lines of credit (HELOCs), Acting U.S. Attorney Rachael A. Honig announced.
Joseph A. Gonzalez, 46, previously pleaded guilty before U.S. District Judge John Michael Vazquez to Count One of an indictment charging him with one count of conspiracy to commit bank fraud. Judge Vazquez imposed the sentence today by videoconference. Gonzalez is the sixth person to plead guilty as part of the scheme.
According to documents filed in the case and statements made in court:
From 2010 through 2018, Jorge Flores and Simon Curanaj, a real estate broker in the Bronx who has previously pleaded guilty and is awaiting sentencing, ran a mortgage fraud scheme in which they applied for more than $9 million in HELOCs from banks on residential properties in New Jersey and New York.
Gonzalez and Flores used a property in Jersey City, New Jersey, as part of the scheme. Gonzalez had been allowed by the owner of the property to live there in exchange for management services, but neither he nor Flores owned the property. Gonzalez also recruited an individual with good credit to act as a straw buyer (Individual 1). Unbeknownst to the owner of the property, a “quitclaim” deed – which contains no warranties of title – was prepared transferring the property to Individual 1. The signatures on the deed were forged.
Gonzalez and Flores then applied for two HELOCs from multiple banks using the Jersey City property as collateral in Individual 1’s name. They concealed the fact that the property offered as collateral was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Individual 1’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the property was less than the amount of the HELOC loans for which Gonzalez and Flores applied.
The victim banks eventually issued loans to Individual 1 in excess of $500,000. After the victim banks funded the HELOCs and deposited money into Individual 1’s bank account, Individual 1 disbursed almost all of it to Gonzalez, Flores, and others. Gonzalez used $43,000 of the illicit proceeds to buy a luxury car. Individual 1 eventually defaulted on both HELOC loans.
In addition to the prison term, Judge Vazquez sentenced Gonzalez to three years of supervised release and ordered him to pay restitution of $512,500.
Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Jason S. Gould, Acting Chief of the Violent Crimes Unit, and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
Monongalia County man sentenced for role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dylan Conaway, of Morgantown, West Virginia, was sentenced today to three years of probation for his role in a firearms conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Conaway, age 27, pled guilty in December 2020 to one count of “Conspiracy to Violate Federal Firearms Laws.” Conaway admitted to working with others to illegally purchase firearms in May 2018 in Monongalia County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexico Extradites Accused Money Launderer and Methamphetamine Dealer to Colorado for ProsecutionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Raul Rodriguez-Romero, 32, formerly of Colorado Springs, Colorado, was extradited from Mexico to Denver, Colorado, so he can face money laundering and drug charges. The defendant made his initial appearance in federal court in Denver yesterday before U.S. Magistrate Judge Scott T. Varholak.
The indictment charges the defendant with distributing more than 500 grams of methamphetamine in November 2015. It also charges the defendant with eleven counts of money laundering, alleging that between May and October 2015, the defendant took money that was represented to be the proceeds of methamphetamine trafficking and then used checks drawn on bank accounts to conceal and disguise the fact that it was drug money. If convicted of distributing methamphetamine, the defendant faces not less than 10 years in prison, as well as up to a $10,000,000 fine. If convicted of money laundering, the defendant faces not more than 20 years in prison and a fine of up to $500,000 on each count.
The charges in the indictment are allegations and the defendant is presumed innocent until proven guilty.
The investigation in this case was conducted by the United States Drug Enforcement Administration. The prosecution is being handled by Assistant U.S. Attorneys Bryan Fields and Candyce Cline, District of Colorado, Denver, with substantial assistance from the Department of Justice’s Office of International Affairs in Washington, D.C.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 16-cr-266
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Mexican man sentenced for having meth welded to tiresRead the Press Release
BROWNSVILLE, Texas – A 33 year-old Mexican citizen residing in Matamoros, Mexico, has been ordered to federal prison for possessing 43 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Leonardo Banuelos-Garcia pleaded guilty Sept. 27, 2019.
Today, U.S. District Judge Fernando Rodriguez handed Banuelos-Garcia a 96-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court noted the quantity of narcotics involved in the crime.
On March 28, 2019, Banuelos-Garcia arrived at the Gateway Port of Entry in Brownsville driving a Jeep Liberty. Authorities noticed the sport utility vehicle was clean and had only one key and referred him to secondary inspection.
Law enforcement noticed Banuelos-Garcia was sweating profusely and appeared nervous. An X-ray examination indicated anomalies in some of the tires.
Banuelos-Garcia was ultimately found in possession of 18 packages of meth welded to three tires of his Jeep Liberty. He admitted he was going to be paid $1000 to transport the narcotics.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Joe Esquivel prosecuted the case.
Mexican National admits to using stolen identityRead the Press Release
BILLINGS — A Mexican national accused of using personal information stolen from another person to live and work in the Billings community pleaded guilty today to charges, Acting U.S. Attorney Leif Johnson said.
Hugo Javier Quiroga, also known as Antonio Alatorre, 47, pleaded guilty to false representation of a Social Security number, false claim to United States citizenship and aggravated identity theft. Quiroga faces a maximum five years in prison, a $250,000 fine and three years of supervised release and a mandatory consecutive two years in prison, a $250,000 fine and one year of supervised release on the identity theft count.
U.S. Magistrate Judge Timothy J. Cavan presided. Judge Cavan ordered Quiroga detained. A sentencing date will be set.
The government alleged in court documents that in 2018, law enforcement began investigating a complaint from an individual named Antonio Alatorre, originally from Brownsville, Texas, who said his identification documents had been stolen in the 1990s and that he had encountered problems due to having his identity stolen. The complainant had learned that someone in Billings was using his identity.
Investigators determined that the individual in Billings was Quiroga, who went by the alias Antonio Alatorre, and that Quiroga had admitted to a former wife that he swam across the Rio Grande to enter the United States, lived in Brownsville, Texas for a couple of years, and used the alias as a “work name.” Investigators also obtained the marriage license from the marriage to his former wife, which showed that Quiroga was born in Matamoros, Mexico.
The government further alleged that Quiroga falsely used the name, date of birth, and social security number for Alatorre to join the boilermakers union and work for several companies in Montana. Additionally, Quiroga falsely claimed that he was a United States citizen on one of the employment application forms.
Assistant U.S. Attorney Brendan McCarthy is prosecuting the case, which was investigated by the FBI and Billings Police Department.
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Mexican Man Sentenced to Federal Prison for Immigration, Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Wednesday, April 21, 2021, United States District Court Judge Stephanie M. Rose sentenced Ismael Salazar Montes, age 30, of Nogales Sonora, Mexico, to 160 months in prison for Illegal Reentry, Possession with Intent to Distribute Controlled Substances, and Illegal Alien in Possession of Firearm and Ammunition announced Acting United States Attorney Richard D. Westphal. Following his prison term, Salazar Montes was ordered to serve five years of supervised release and pay $300 to the Crime Victims’ Fund.
The investigation began in October 2019, when law enforcement stopped Salazar Montes’s vehicle in Mount Pleasant. After stopping the vehicle, law enforcement had a canine conduct a sniff of the vehicle, resulting in an alert as to the presence of narcotics. As officers searched the vehicle, Salazar Montes admitted he had a handgun in his suitcase. Officers searched the suitcase and located an unloaded, nine-millimeter Ruger handgun. Salazar Montes admitted he did not have a permit for the firearm and knew he could not lawfully possess the firearm because he was not legally present in the United States. A search of the backseat of the vehicle revealed a cooler where officers located three bags of controlled substances—812.8 grams of methamphetamine, 958.7 grams of heroin, and 307.27 grams of fentanyl. Salazar Montes admitted he placed the controlled substances in the cooler and was transporting them from Tucson, Arizona to Chicago, Illinois.
This matter was investigated by the Department of Homeland Security, Immigrations and Customs Enforcement, Drug Enforcement Agency, Mount Pleasant Police Department, and the Henry County Sheriff’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Meridian Woman Pleads Guilty Under Project EJECT to being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – Mia Francine Sims, 53, of Meridian, Mississippi, pleaded guilty today before Senior U.S. District Judge Tom S. Lee to possession of a firearm by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On January 23, 2020, as part of an ongoing narcotics investigation, a joint team of Meridian Police officers and FBI agents conducted a search warrant on a residence in Meridian belonging to Sims. During the search, the team discovered a handgun and relatively small amounts of cocaine and methamphetamine at the residence. Though Sims was not home at the time of the search, witnesses confirmed that Sims was the only resident of the home. Further investigation revealed that Sims had two prior felony drug convictions and is prohibited from possessing a firearm.
On February 12, 2020, Sims was indicted for being a felon in possession of a firearm.
Sims will be sentenced on July 29, 2021 and faces a maximum penalty of ten years in prison and a $250,000.00 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Meriden Man Pleads Guilty to Fentanyl and Heroin Trafficking ChargesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JAVIER MARTINEZ, 40, of Meriden, pleaded guilty today to fentanyl and heroin trafficking offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, on February 13, 2020, law enforcement conducted a traffic stop of Martinez’s vehicle in West Haven and found Martinez in possession of approximately 100 grams of a mixture of fentanyl and heroin. A subsequent search of Martinez’s residence in Meriden revealed nearly a kilogram of heroin, approximately 180 grams of a mixture of fentanyl and heroin, more than 300 fentanyl pills, and items used to process and package narcotics for street sale.
Martinez pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 28, 2021.
Martinez is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force, Connecticut State Police Statewide Narcotics Task Force and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Marion Man Pleads Guilty to Racial Interference with Federally Protected Housing RightsRead the Press Release
ABINGDON, Va. – A Marion man pleaded guilty today to using force or the threat of force to interfere with federally protected housing rights based on the race or color of the victims.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, James Brown, 41, burned a cross on the front yard of an African-American family in the early morning hours of June 14, 2020. One of the family members had organized a civil rights protest the day before in Marion, Virginia. Brown admitted to burning the cross to two witnesses and also was known to use racial epithets when referring to the African-American family.
“Acts of hatred, intimidation and the threat of force, carried out by the racially motivated cross burning in this case, illegally interfered with their federally protected housing rights,” Acting U.S. Attorney Bubar said today. “This illegal, divisive behavior destroys communities and will not be tolerated. I’m proud of the work of the FBI and our state partners, who brought James Brown to justice.”
“There is absolutely no room for racial intimidation or injustice occurring in our communities,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said today. “FBI Richmond is steadfast in our commitment of protecting residents of the Commonwealth, regardless of race or ethnicity; and will continue to work with our investigative and prosecutorial partners to hold accountable the offenders who attempt to fracture our communities.”
Brown pleaded guilty today to one count of criminal interference with federally protected housing rights based upon the victim’s race.
The Federal Bureau of Investigation, the Marion Police Department, and the Smyth County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Assistant United States Attorneys Zachary T. Lee and Daniel Murphy are prosecuting the case.
Man Sentenced to Life in Prison for ISIS-inspired Bombing in New York City Subway Station in 2017Read the Press Release
A New York man was sentenced today to life in prison for detonating a bomb in a New York City subway station. He admitted that he conducted the terrorist attack on behalf of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Akayed Ullah, 31, of Brooklyn, New York, and a lawful permanent resident of Bangladesh, was convicted by a federal jury of offenses related to the detonation and attempted detonation of a bomb in a subway station near the New York Port Authority Bus Terminal in New York City on Dec. 11, 2017. According to court documents, on Dec. 11, 2017, at approximately 7:20 a.m., Ullah detonated a pipe bomb strapped to his chest in a subway station near the Port Authority Bus Terminal in midtown Manhattan. Shortly after the blast, first responders located Ullah lying on the ground in the station where he had detonated the improvised explosive device, and he was taken into custody. Surveillance footage captured Ullah walking through the station immediately prior to the explosion and then detonating the bomb.
“Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to harm and terrorize as many people as possible - and he admitted that he did it on behalf of ISIS," said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “This case reminds us that the threat of ISIS-inspired terrorism remains real. This sentence holds Ullah accountable, as he will spend the rest of his life in federal prison for his crimes. I want to thank all of the agents, analysts, and prosecutors whose outstanding work made this result possible.”
“Akayed Ullah, previously convicted in a New York federal court of carrying out a lone-wolf bombing attack on behalf of ISIS at the Port Authority Bus Terminal, a bustling transit artery in New York City, admittedly intended to murder as many innocent Americans as possible,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “Ullah’s motive was clear and unambiguous: a deeply held ideological hatred for America. Ironically, Ullah’s actions resulted only in reaffirming the greatness of America by displaying the fairness and impartiality for which our justice system stands. Ullah received a speedy, fair, public trial, and was convicted by a jury of his peers. Akayed Ullah’s message of hatred clearly backfired; his just sentence of life in prison only exemplifies that cowardly acts of terrorism will be met with law enforcement’s unwavering resolve to protect our core values of freedom and democracy.”
“The defendant sought to attack innocent Americans who were going about their daily lives," said Acting Assistant Director Patrick Reddan for Counterterrorism at the FBI. “He will now spend the rest of his life in prison, where he will not be in a position to attempt another attack. While the terrorism threat continues to evolve in this country, groups like ISIS remain committed to attacking America, and the FBI will continue to work with our JTTF partners across the country in our commitment to track down and disrupt terrorists who seek to harm our homeland.”
According to court documents and the evidence presented at trial, Ullah began radicalizing in approximately 2014. Ullah disagreed with U.S. foreign policy in the Middle East and began seeking out online materials promoting radical Islamic terrorist ideology. In particular, Ullah was inspired by ISIS propaganda, including a video in which ISIS instructed supporters to carry out attacks in their homelands if they were unable to travel overseas to join ISIS. Ullah began researching how to build a bomb about a year prior to his attack. He built his pipe bomb in the weeks leading up to the attack at his Brooklyn apartment.
Following the attack on Dec. 11, 2017, law enforcement located remnants of the pipe bomb on Ullah’s person and strewn across the attack site in the subway station. Law enforcement found, among other things: (i) a nine-volt battery inside Ullah’s pants pocket, which he used as the power source for triggering the bomb; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) plastic zip ties underneath Ullah’s jacket, which he used to strap the bomb to his body; (iv) several fragments of a metal pipe, which Ullah had filled with an explosive substance that he made using sugar and match heads; (v) fragments of Christmas tree lightbulbs attached to wires, which Ullah used to ignite the explosion; and (vi) numerous metal screws. Ullah filled his pipe bomb with dozens of metal screws to function as shrapnel, for the purpose of causing maximum damage.
On the morning of the attack, shortly before detonating his bomb, Ullah posted a statement on Facebook referring to the then-President of the United States, stating: “Trump you failed to protect your nation.” Ullah also posted an ISIS slogan so that ISIS would know that he had carried out the attack on behalf of the foreign terrorist organization.
After Ullah was taken into custody following the attack, he waived his Miranda rights and spoke to law enforcement. Ullah was inspired by ISIS to carry out the Dec. 11 attack, and stated, among other things, “I did it for the Islamic State.” He also said that he chose a busy weekday morning for the attack in order to “terrorize as many people as possible.” One commuter who was inside the station when Ullah detonated the pipe bomb suffered a shrapnel wound to his leg, and two other victims partly lost their hearing as a result of the blast. Ullah’s attack caused the Port Authority subway station and bus terminal to shut down temporarily, disrupting the lives of commuters across the New York City area.
After the attack, law enforcement searched Ullah’s apartment pursuant to a search warrant. Agents recovered, among other things, Ullah’s passport, which contained the handwritten statement, “O AMERICA, DIE IN YOUR RAGE.” Less than two weeks before carrying out the attack, Ullah had watched and drawn inspiration from a particular ISIS propaganda video that proclaimed, “die in your rage, America,” with an image of the U.S. Capitol in the background.
Later in December 2017, while in custody at the Metropolitan Correctional Center on the charges in this case, Ullah began chanting “more is coming” at a correctional officer, and then told the officer: “You started this war, we will finish it. More is coming, you’ll see.”
Assistant Attorney General Demers and Acting U.S. Attorney Strauss praised the outstanding investigative efforts of the FBI, the New York Police Department (NYPD) and Port Authority Police Department (PAPD). Ullah’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the Justice Department’s National Security Division, and the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
Assistant U.S. Attorneys Rebekah Donaleski and George D. Turner for the Southern District of New York prosecuted this case with assistance from Trial Attorneys Jason Denney and Felice Viti of the National Security Division’s Counterterrorism Section.
Man Charged with High Speed Flight from Border Patrol Checkpoint in an RVRead the Press Release
Assistant U. S. Attorney Timothy D. Coughlin (619) 546-6768
NEWS RELEASE SUMMARY – April 22, 2021
SAN DIEGO – Vicente Villegas of Riverside appeared in federal court today in connection with charges that he fled a U.S. Border Patrol checkpoint at high speed during a smuggling incident in which he was allegedly driving a recreational vehicle with undocumented immigrants aboard.
At today’s hearing, Villegas was ordered by U.S. Magistrate Judge Sheri Pym to remain in custody without bond on grounds that he is a flight risk and a danger to the community.
According to the complaint, in the early morning hours of December 12, 2020, Border Patrol agents observed a large group of undocumented immigrants cross the U.S.-Mexican border in an area known to agents as “Second Breaks.” The agents saw the group of about 40 people climb into the RV.
Border Patrol agents attempted to conduct a traffic stop on the RV near Old Highway 80 and Highway 94. According to the complaint, Villegas failed to yield to a Border Patrol vehicle displaying lights and sirens and accelerated to 70 miles per hour as he merged onto westbound Interstate 8. Agents on duty at the Border Patrol Checkpoint located in Pine Valley, California were notified of the ongoing pursuit and received authorization to use a spike strip to stop the RV at the Checkpoint.
As the RV approached the Checkpoint, the agent on duty deployed the spike strip, and the RV swerved from the primary traffic lanes, drove around the primary position and through the dirt parking lot. Villegas drove back onto the Interstate at the west end of the Checkpoint, effectively evading all spike positions. Pursuing agents followed the RV for two and half hours as it continued west on Interstate 8, west on State Route 52, and north on Interstate 15. At approximately, 5:19 a.m. Border Patrol agents terminated the pursuit of the RV.
Agents were later able to trace the RV to Villegas, the complaint said. The agents were able to retrieve from cell phones what are believed to be photos and videos taken by Villegas during the pursuit.
The complaint said the RV had been purchased by Villegas and another person on December 2, 2020 for $13,000. Villegas provided his California Identification Card as a form of identification for the sale. The previous RV owner observed Villegas drive the RV away from his home.
“Smugglers think nothing of putting their passengers in grave danger in order to escape law enforcement and make money,” said Acting U.S. Attorney Grossman. “We are determined to preserve public safety and achieve justice.” Grossman praised prosecutor Tim Coughlin and U.S. Border Patrol agents who tracked down this defendant through dogged investigation.
“The actions taken by the driver of the RV in this incident endangered not only the lives of the migrants being smuggled, but also the general public and our agents,” said San Diego Sector Border Patrol Chief Aaron M. Heitke, “I am proud of the dedication and persistence of our agents. This arrest is a direct result of their efforts.”
This case is being prosecuted by Assistant U. S. Attorney Timothy D. Coughlin.
DEFENDANT Case Number 21mj1273-MDD
Vicente Villegas Age: 20 Riverside, CA
SUMMARY OF CHARGES
High Speed Flight from an Immigration Checkpoint – Title 18, U.S.C., Section 758
Maximum penalty: Five years of imprisonment and $250,000 fine
AGENCY
United States Border Patrol, San Diego Sector Intelligence Unit
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Madison County Man Sentenced to over 8 Years in Federal Prison for Being a Convicted Felon-in-Possession of a FirearmRead the Press Release
Jackson, TN – Reggie Carnell James, Jr., 26, of Denmark, Tennessee, has been sentenced to 100 months in federal prison for being a convicted felon-in-possession of a firearm. Acting U.S. Attorney, Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on August 20, 2019, the United States Marshals Service and the Jackson Police Department Gang and Street Crimes Unit, were completing the execution of a search warrant on North Parkway in Jackson, TN, when an investigator observed James driving a vehicle. James, who had a suspended driver’s license, was observed pulling into apartment building and was the only occupant in the vehicle. He was subsequently arrested and charged with driving on a suspended license.
After being taken into custody, James’s person was searched and officers located five hydrocodone pills in his front right pocket, and 4.48 grams of marijuana and $495 in cash in his front left pocket.
Officers also observed in plain view, a Glock pistol in the floorboard of the driver’s seat, which had been reported stolen by its owner. The officers searched James car and found a drum magazine that was loaded with 21 rounds of ammunition and a backpack in the front passenger seat which contained eight individually wrapped baggies of marijuana that totaled approximately 203.41 grams, a clear bag containing approximately 3.45 grams of methamphetamine, a digital scale, and 16 THC vape cartridges. The backpack also contained an unloaded Taurus 9mm handgun and a loaded Smith & Wesson .38 caliber revolver.
James is a convicted felon, having been previously convicted of aggravated burglary, arson, and evading arrest in Madison County, Tennessee in 2014. As a result of his felony convictions, James is prohibited by federal law from possessing firearms or ammunition.
On March 31, 2021, U.S. District Judge J. Daniel Breen sentenced James to serve 100 months in federal prison to be followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by the Jackson Police Department, the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Lodge Grass man admits burning down house on Crow Indian ReservationRead the Press Release
BILLINGS —A Lodge Grass man accused of setting fire to an occupied house on the Crow Indian Reservation admitted charges today, Acting U.S. Attorney Leif Johnson said.
Travis Rusty Wallace, 18, pleaded guilty to arson, as charged in an indictment. Wallace faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Wallace was released pending further proceedings. A sentencing date will be set.
In court documents filed in the case, the government alleged that on June 23, 2020, the victim, identified as John Doe, was in his residence in Lodge Grass when he smelled smoke. He went into his bedroom and saw that the curtains were on fire. While extinguishing the flames, he saw Wallace was in the back yard running from the house. After putting out the fire, Wallace left the residence for approximately an hour and a half. While Doe was gone, his roommate returned home from work and fell asleep in a back bedroom. A smoke alarm awakened the roommate, who ran into the hallway and saw that Doe’s bedroom was engulfed by flames. The roommate ran out the back door and saw Wallace drop a gas can on the lawn and drive away. A neighbor saw Wallace repeatedly driving around the neighborhood past Doe’s home before the fires were set.
The government further alleged that Wallace denied he set the fire and consented to his clothes being taken. The fire marshal determined the fire was set with gasoline, and an analysis found gasoline on Wallace’s clothes.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI and Bureau of Indian Affairs.
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Last Defendant in Drug and Firearms Trafficking Conspiracy Sentenced to 13 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced on Wednesday to 13 years in federal prison for selling methamphetamine and firearms, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI, and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Ever Antonio Alvarado-Coronado, 29, conspired with co-defendants Daniel Luis Bowlin, Marquis Dion Patrick-Howard, and Dennis Green to distribute over 15 pounds of methamphetamine and to sell nine firearms in Las Vegas: (a) one of the firearms had been reported stolen; (b) another firearm had an obliterated serial number; and (c) others were “AR” style semi-automatic assault firearms.
Alvarado-Coronado pleaded guilty to one count of conspiracy to distribute a controlled substance. He has three prior narcotics convictions and, in January 2014, he was convicted of illegal reentry and was deported to Mexico. Alvarado-Coronado unlawfully returned to the United States and engaged in this methamphetamine and firearms conspiracy.
In May 2018, a federal grand jury returned a 21-count superseding indictment charging Alvarado-Coronado and the co-defendants for their roles in the drug and firearm trafficking conspiracy. For their roles in the conspiracy: Bowlin, aka “OG,” pleaded guilty to one count of felon in possession of a firearm, and was sentenced to 33 months in prison; Patrick-Howard, aka “Black,” pleaded guilty to one count of felon in possession of a firearm and one count of distribution of a controlled substance, and was sentenced to 10 years in prison; and Green, aka “Loc,” pleaded guilty to one count of distribution of a controlled substance, and was sentenced to three years in prison.
The case was investigated by the FBI and ATF.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Las Vegas Businessman Pleads Guilty to His Role in $13 Million Fraud Upon North Carolina Medicaid ProgramRead the Press Release
RALEIGH, N.C. – A Las Vegas, Nevada man pleaded guilty today to Conspiracy to Commit Health Care Fraud and Wire Fraud, Conspiracy to Commit Money Laundering, and Aggravated Identity Theft, and further agreed to forfeit the proceeds of his crimes. In additional to cash, forfeitable property included the defendant’s interest in a British Aerospace Bae 125-800A Aircraft, a 2017 Aston Martin DB 11 sports car; a 2016 Ford F-150 Super-Crew pickup truck; real property held in the name of Assured Healthcare Systems in Hertford County, North Carolina; real property located in Charles County, Maryland; as well as various other items of designer jewelry and luxury items seized from the defendant’s penthouse condominium in Las Vegas.
According to court documents, Timothy Mark Harron, 52, admitted to conspiring with his wife, Latisha Harron, to carry out a massive fraud upon the North Carolina Medicaid Program (“NC Medicaid”) by billing the government for fictitious home health services. Harron further admitted to working with his wife to launder the proceeds of the fraud into, among other things, a private jet, luxury jewelry and clothing, and properties in Ahoskie and Rich Square, North Carolina. Latisha Harron has already pleaded guilty to similar charges and is awaiting sentencing.
According to the charges, Latisha Harron created, and was operating, Agape Healthcare Systems, Inc. (“Agape”) an alleged Medicaid home health provider, in Roanoke Rapids, North Carolina. As charged, to enroll Agape as a Medicaid provider, Latisha Harron fraudulently concealed her prior felony conviction for Identity Theft. In 2012, Harron moved out of North Carolina to Maryland. Despite that move, Harron continued to bill NC Medicaid as though Agape was providing home health services to North Carolina recipients.
As charged, in May of 2017, Latisha Harron moved to Las Vegas, Nevada to live with the defendant Timothy Mark Harron, and that the two were married in 2018. The indictment alleges that Harron was also a previously convicted felon, and that this fact was concealed from the NC Medicaid on enrollment documents. Harron pleaded guilty to allegations that he and his wife worked together to expand the Agape fraud upon NC Medicaid -- fraudulently billing the program for millions in just the few years in which he participated in the scheme.
As charged, Harron admitted that he and his wife carried out the fraud by exploiting an eligibility tool that was entrusted only to NC Medicaid providers. Specifically, Harron and his wife searched publicly available sources, such as obituary postings on the internet by North Carolina funeral homes, to locate recently deceased North Carolinians. Harron admitted that the two would then extract from the obituary postings certain personal information for the deceased, including their name, date of birth, and date of death. Then, utilizing the extracted information, the defendants would then query the NC Medicaid eligibility tool to determine whether the deceased individual had a Medicaid Identification Number. If the deceased North Carolinian had a valid Medicaid Identification Number and was otherwise eligible for Medicaid coverage during their life, the defendants would use that individual’s identity to “back-bill” NC Medicaid, through Agape, for up to one year of fictitious home health services that were allegedly rendered prior to the death of the individual. NC Medicaid then disbursed millions to Agape, all of which flowed into accounts controlled by the Harrons.
As charged, the fraud was carried out via the internet from locations around the globe, including their corporate office building in Las Vegas, their penthouse condominium in Las Vegas, a corporate office in North Carolina, and from various hotels and luxury resorts in and outside of the United States.
Harron further pled guilty to laundering the proceeds of the Agape fraud into various luxury items. These expenses included a $900,000 wire for the purchase of a British Aerospace Bae 125-800A private jet, hundreds of thousands of dollars in Tiffany & Co. and Brioni clothing and jewelry, thousands of dollars on Eastern North Carolina business properties, and thousands of dollars in gym equipment.
Harron pleaded guilty to (1) Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349, which carries a maximum punishment of up to 20 years in prison, (2) one count of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, which carries a maximum punishment of not less than, nor more than 2 years in prison consecutive to other sentences, and (3) Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 1956(h), which carries a maximum punishment of 10 years in prison.
Acting United States Attorney G. Norman Acker, III made the announcement after U.S. District Judge Richard E. Myers II accepted the plea. The Federal Bureau of Investigation, the United States Department of Health and Human Services Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and the North Carolina Attorney General’s Office Medicaid Investigations Division, are all investigating the case. Assistant U.S. Attorney William M. Gilmore is the prosecutor on this case. Assistant U.S. Attorney John Harris represents the United States with respect to forfeiture aspects of the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-cr-00005-M-2.
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Justice Department Warns Taxpayers to Avoid Fraudulent Tax PreparersRead the Press Release
With less than one month left in this year’s tax season, the Department of Justice urges taxpayers to choose their return preparers wisely. Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams. Unscrupulous preparers who include errors or false information on a customer’s return could leave a taxpayer open to liability for unpaid taxes, penalties, and interest.
Over the last year, the Justice Department’s Tax Division has worked with U.S. Attorney’s Offices around the country to bring both civil and criminal action against dishonest tax preparers, seeking as appropriate civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal sanctions. The department intends to send a strong message that those who prepare fraudulent returns will face serious and lasting consequences.
Examples of civil injunctions obtained by the Tax Division over the last year include:
- On Feb. 25, 2021, a federal court in Delaware enjoined return preparers Jorge Bravo, Michael Eller Income Tax Service, Nelson Graciano and Pedro Toala from preparing, filing or assisting in the preparation or filing of any federal tax returns which claim ineligible persons as dependents, claim improper business expenses or losses, or improperly claiming the Child Tax Credit and other credits. The injunction runs through Dec. 31, 2026, and requires the defendants to hire an independent monitor to examine selected returns.
- On Nov. 17, 2020, a federal court in the Northern District of New York entered a stipulated permanent injunction against Demetric Williams, individually and doing business as Poor No More LLP, that bars him from preparing returns for others, and from owning or operating a tax return preparation business, and from representing customers in connection with any matter before the IRS. Williams was required to notify his customers of the order.
- On Aug. 27, 2020, a federal court in the Western District of Tennessee permanently enjoined Rickey Greer and Stacie Smith (formerly Greer) from acting as federal tax return preparers, assisting in any way in the preparation of federal income tax returns, and representing any person before the IRS. Under the terms of the injunction, the Greers agreed to give up their IRS-assigned preparer identification numbers.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year,
- On March 3, 2021, a federal court in the Middle District of Florida, Orlando Division, enjoined Michelle Jenkins from acting as a return preparer, owning a tax preparation business, or training others in the preparation of tax returns. Jenkins must immediately, permanently close any tax preparation stores she owns, and may not franchise any tax return business to others or her customer lists. Jenkins was ordered to disgorge $25,000 in proceeds from her fraudulent tax preparation. On April 9, 2021, Jenkins’ co-defendants, Ben Philippe, Clebert Philippe, and Reliance 1 Tax Services LLC, were similarly enjoined. Ben Philippe was ordered to disgorge $96,945.10; Clebert Philippe and Reliance 1 Tax Services together were ordered to disgorge $134,633.00.
- On Jan. 27, 2021, a court in the Southern District of Florida permanently enjoined a West Palm Beach return preparer, Lena Cotton, and her business, Professional Accounting LDC, from preparing federal income tax returns for others. The court determined that the defendants were in contempt of several prior orders that had allowed them to prepare returns subject to restrictions and that, in light of previous violations by Cotton and Professional Accounting LDC of the court’s injunctions, “any remedy short of a permanent injunction on return preparation [was] inadequate.”
- On Aug. 5, 2020, a federal district court in the Northern District of Illinois sanctioned Courtney Norwood for contempt for continuing to prepare tax returns in violation of an earlier injunction. He was ordered to pay $91,200 in disgorgement, reflecting the fees he earned for any returns prepared after the injunction was entered.
Criminal convictions obtained by the Tax Division over the last year include:
- On Nov. 13, 2020, Kenneth Crawford Jr. was convicted at trial and sentenced to 78 months in prison for conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws. According to evidence presented at trial, between 2015 and 2016, Crawford and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme that sought fraudulent refunds from the IRS for their clients.
- On Oct. 7, 2020, Terry Williamson was sentenced to 70 months in prison for conspiracy to commit mail and wire fraud, following his conviction at trial by a federal jury in Las Vegas. The evidence at trial proved that from January 2009 through April 2011, Williamson and his co-conspirators filed false tax returns with the IRS to fraudulently obtain tax refunds using the names and social security numbers of deceased taxpayers.
The Tax Division reminds taxpayers that the IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. (More information can also be found here.) The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
Acting Assistant Attorney General David A. Hubbert of the Tax Division made the announcement. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Finds that Alameda County, California, Violates the Americans with Disabilities Act and the U.S. ConstitutionRead the Press Release
The Justice Department concluded today, based upon a thorough investigation, that there is reasonable cause to believe that Alameda County is violating the Americans with Disabilities Act (ADA) in its provision of mental health services, and that conditions and practices at the county’s Santa Rita Jail violate the U.S. Constitution and the ADA.
The department’s investigation found that the county fails to provide services to qualified individuals with mental health disabilities in the most integrated setting appropriate to their needs. Instead, it unnecessarily institutionalizes them at John George Psychiatric Hospital and other facilities. In Olmstead v. L.C., the U.S. Supreme Court held that Title II of the ADA requires public entities to provide community-based services to persons with disabilities when appropriate services can reasonably be provided to individuals who want them. However, on any given day in Alameda County, hundreds of people are institutionalized for lengthy stays at one of several large, locked psychiatric facilities in the county or are hospitalized at John George Psychiatric Hospital, while others are at serious risk of admission to these psychiatric institutions because of the lack of community-based services. Without connection to adequate community-based services, people return to John George Psychiatric Hospital in crisis again and again.
“The ADA protects individuals with mental health disabilities from unnecessary institutionalization, and the Constitution guarantees all prisoners necessary medical care, including mental health care,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “Our investigation uncovered evidence of violations that, taken together, result in a system where people with mental health disabilities in Alameda County find themselves unnecessarily cycling in and out of psychiatric institutions and jails because they lack access to proven services that would allow them to recover and participate in community life.”
The department also concluded that there is reasonable cause to believe that conditions at the jail violate the Eighth and Fourteenth Amendments of the Constitution, as well as the ADA. Specifically, the department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate mental health care to prisoners with serious mental health needs, including those at risk of suicide; that the jail violates the constitutional rights of prisoners with serious mental illness through its prolonged use of restrictive housing; and that the jail violates the ADA by denying prisoners with mental health disabilities access to services, programs, and activities because of their disabilities.
As a result of these failures, prisoners with serious mental health needs have experienced worsening mental health conditions, are sent repeatedly to John George Psychiatric Hospital for acute care, have experienced prolonged stays in restrictive housing, and, at times, have seriously injured themselves or died.
The Civil Rights Division’s Special Litigation Section initiated the investigation under the ADA and under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the department to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Individuals with relevant information are encouraged to contact the department via phone at (844) 491-4946 or by email at [email protected].
Members of the public may report possible civil rights violations at https://civilrights.justice.gov/.
Jury Finds Green Bay Man Guilty of Drug Trafficking and Firearm OffensesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 21, 2021, a jury seated in the federal district court in Green Bay, found Lonel L. Johnson, Jr., (age: 44) guilty of possession with intent to distribute 50 grams or more of methamphetamine, two counts of possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime.
The evidence presented at trial proved that on April 3, 2020, after a standoff that lasted over an hour, investigators from the Brown County Drug Task Force seized a half pound of methamphetamine and a .22 caliber rifle from Johnson’s residence. Prior to the search warrant, Johnson posted a video on Facebook Live in which he was pointing a .45 caliber handgun at the camera. Johnson, a convicted felon, was prohibited from possessing firearms.
Johnson will be sentenced before Senior U.S. District Judge William C. Griesbach on July 26, 2021. Johnson faces a mandatory ten year prison term and a maximum of life imprisonment.
The Brown County Drug Task Force investigated the case, with assistance from the Brown County Sheriff’s Office SWAT Team. Assistant United States Attorneys Alexander Duros and William Roach prosecuted the case.
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Johnson County Man Sentenced 10 Years in Federal Prison for Child Pornography CrimesRead the Press Release
A Johnson County man who was arrested with 110,000 images of child pornography has been sentenced to 10 years in federal prison, announced Acting U.S. Attorney Prerak Shah.
Timothy Lynn Vandeventer, 55, pleaded guilty to receipt of child pornography in November. He was sentenced yesterday before U.S. District Judge Ed Kinkeade.
According to court documents, HSI agents learned that Vandeventer was downloading child pornography from the internet to an IP address located at his residence in Alvarado, Texas.
Agents executed a search warrant at Vandeventer’s residence and seized a laptop computer, five external hard drives, and printing equipment.
Vandeventer purchased child pornography on the internet and downloaded it to his laptop and external hard drives so that he could easily access the illicit content. Additionally, Vandeventer used a computer printer to print images of child pornography to view for his sexual gratification.
A forensic analysis of Vandeventer’s computer located 110,000 images and 62 videos of child pornography including multiple images of prepubescent minors and minors less than 12-years-old.
Homeland Security Investigations conducted the investigation with assistance from the Johnson County Sheriff’s Office and the U.S. Secret Service. Assistant U.S. Attorney Shane Read prosecuted the case.
Iowa Woman Pleads Guilty to Hate Crime Charges for Attempting to Kill Two Children Because of their Race and National OriginRead the Press Release
An Iowa woman pleaded guilty yesterday in federal court to hate crime charges for attempting to kill two children because of their race and national origin.
According to admissions Nicole Poole Franklin, 42, made during the hearing, on the afternoon of Dec. 9, 2019, Poole Franklin was driving her Jeep Grand Cherokee on Creston Avenue in Des Moines, Iowa, where the first child-victim was walking along the sidewalk with another young relative. Upon seeing the children and believing that the victim was of Middle Eastern or African descent, Poole Franklin drove her vehicle over the curb towards both children, striking one of them. Poole Franklin then drove away from the scene. The assault resulted in injury to the victim, including cuts, bruising, and swelling. Approximately 30 minutes later, Poole Franklin was driving her Jeep near Indian Hills Junior High School in Clive, Iowa, where the second child-victim was walking on the sidewalk. Poole Franklin, believing that the child was Mexican, drove her vehicle over the curb and struck the victim, causing serious injury, including a concussion, bruises, and cuts. Poole Franklin again drove away from the scene but was apprehended later that day.
Poole Franklin is also expected to plead guilty in state court later today to two counts of attempted murder.
“Nicole Poole Franklin attempted to kill two children because she thought they came from another country,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “All people in the United States, regardless where they come from, have the right to be free from fear of violence because of who they are. The Justice Department will continue to protect the civil rights of all individuals and prosecute hate crimes, as we have done in this case.”
“Our office will vigorously pursue civil rights prosecutions against individuals, such as Ms. Poole Franklin, for hate motivated attacks,” said Acting U.S. Attorney Richard Westphal of the Southern District of Iowa. “Protecting the rights of the residents of our community, more importantly, the families and children who live here, is one of the most important functions of the United States Attorney’s Office. These young and courageous victims, whatever their race, color, religion, or national origin, should not have to fear for their safety by merely walking down the street. The message from today’s hearing should be crystal clear – this sort of hateful violence is unacceptable, and the Department of Justice will continue to work with our federal, state, and local partners to hold accountable all who choose to violate another’s civil rights.”
“FBI Omaha agents worked diligently with our law enforcement partners to bring Nicole Poole Franklin to justice,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “It’s unimaginable that violence based on race, sexual identity or religious beliefs still exists in this day and age. The FBI will not tolerate someone committing such abhorrent violence against two children, just because of the color of their skin. The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated, and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”
Poole Franklin’s federal sentencing date is set for Aug. 19. She faces a maximum statutory penalty of life in prison and a fine of up to $250,000 for each of the charged offenses.
This case was investigated by the FBI, with assistance from Des Moines and Clive Police Departments. Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa and Trial Attorneys Katherine DeVar and Andrew Manns of the Civil Rights Division are prosecuting the case.
Hudson County Man Admits Role in Bank RobberyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in a bank robbery, Acting U.S. Attorney Rachael A. Honig announced.
Juan Rojas Hernandez, 21, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to Count Two of an indictment charging him with one count of bank robbery. His co-defendants were charged in the same indictment for their roles in a Union City bank robbery.
According to documents filed in this case and statements made in court:
On Nov. 5, 2019, Rojas Hernandez and his co-defendants robbed a bank in Union City, New Jersey. Rojas Hernandez served as the lookout during the robbery while co-defendant William Tedeschi entered the bank and handed a note to a bank teller demanding money. Rojas Hernandez and his co-defendants then fled with approximately $10,200 and split the proceeds of the robbery.
The bank robbery charge to which Rojas Hernandez pleaded guilty carries a maximum potential penalty of 20 years in prison and $250,000 fine. Sentencing is scheduled for Aug. 26, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the Union City Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Vijay Dewan of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Houston man sent to prison for coercion and enticement via KikRead the Press Release
HOUSTON – A 63-year-old Houston resident has been ordered to federal prison after attempting to obtain sexual images of a young boy, announced Acting U.S. Attorney Jennifer B. Lowery.
Mark Wayne Cottrell pleaded guilty Dec. 12, 2019.
Today, U.S. District Judge Gray Miller ordered Cotrell to serve a total of 121 months in prison. He was further ordered to pay $3000 to a victim who’s image appeared in the child pornography found in Cottrell’s possession. He must also register as a sex offender and serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet.
At the time of Cotrell’s plea, he admitted to engaging in conversations via the Kik application with an individual whom he believed had access to a 10-year-old boy. Cottrell had engaged in sexually-charged conversations and requested an image of the boy’s genitals. He also sent links that contained over 1000 image files and 300 video files of child pornography.
Cottrell admitted he discussed travelling to New York to meet with the fictious boy and to possessing child pornography on his phone. Authorities also found child pornographic images on a laptop in Cottrell’s possession.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Hot Springs Couple Sentenced to 28 Years Combined in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Steven Mark Zuber, age 57, of Hot Springs, Arkansas, was sentenced on April 20, 2021 to 216 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Tammy Ronette Lent, age 54, of Hot Springs, Arkansas, was sentenced today to 120 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
In August of 2018, investigators with the 18th Judicial Drug Task Force and agents with Homeland Security Investigations Little Rock launched an investigation into Zuber’s drug trafficking in the Western District of Arkansas. Over the course of the investigation, investigators and agents were able to conduct several controlled purchases of methamphetamine from Zuber and Lent. During the arrest of Zuber and Lent, a search of their residence was conducted by investigators and agents. The search resulted in locating three firearms, methamphetamine, drug paraphernalia and approximately $14,161.00.
Zuber and Lent were indicted by a federal grand jury in Dec. of 2018 and entered guilty plea’s in Nov. of 2020.
This case was investigated by the 18th Judicial Drug Task Force and Homeland Security Investigations Little Rock. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
This case was prosecuted as 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.
Henderson County Man Indicted for ArsonRead the Press Release
Alleged Arsonist Charged with Destroying Water Utility Pumping Stations that Serviced Hundreds of Athens Homes
TYLER, Texas - A federal grand jury in Tyler returned an indictment this week charging an Athens man with arson in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
According to court documents, Brandon Blake Neeley, 19, of Athens, was arrested on Oct. 5, 2020 as he attempted to leave the scene of a fire at the Dogwood Estates Water Company Pump No. 2 building. Four days earlier, on Oct. 1, 2020, another building belonging to Dogwood Estates that housed Pump No. 4, was also set ablaze. Dogwood Estates Water Company serves more than 400 Athens-area homes. After both Pump No. 2 and Pump No. 4 were destroyed, Dogwood was forced to use a backup pump not designed to bear the full load of customer demands. Customers have been asked to limit their water usage until the burned pumps can be repaired or replaced. The two fires caused more than $200,000 in damage.
“The destruction of the Dogwood Estates Pumps threatened water access for numerous Athens residents who rely on the pumping station to go about their daily lives,” said Acting U.S. Attorney Nicholas J. Ganjei. “Protection of our nation’s critical infrastructure from criminals, vandals, and saboteurs is a top priority for federal, state, and local law enforcement, and these charges demonstrate that.”
Neeley is charged with arson of property used in interstate commerce. If convicted, he faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson County Sheriff’s Office are investigating the case. Assistant U.S. Attorney Ryan Locker is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Havre man admits meth trafficking on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Havre man accused of supplying large quantities of methamphetamine to individuals on the Rocky Boy’s Indian Reservation pleaded guilty to a trafficking crime today, Acting U.S. Attorney Leif Johnson said.
Clayton Cree Morsette, 23, pleaded guilty to possession with intent to distribute meth. Morsette faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Aug. 5 and ordered Morsette detained.
In court documents filed in the case, the government alleged that in 2019, law enforcement officers learned from individuals that co-defendant Kristina Russette, of Washington, and her boyfriend, Morsette, worked together to distribute meth from the Spokane area to the Rocky Boy’s Reservation. In addition, in May 2020, Russette was driving a vehicle stopped in Washington for traffic violations. Morsette was a passenger. During a search of the vehicle, officers found multiple bags containing approximately 1.6 pounds of meth. Morsette told an officer that he and Russette had picked up those drugs in Spokane and that some of it was destined for Montana.
Multiple other individuals told law enforcement that Morsette was a longtime supplier of large quantities of meth to persons on and around the Rocky Boy’s Reservation and described him as working with Russette. Morsette admitted to working with Russette to distribute meth, making multiple trips to bring ounces of meth to the reservation and to having brought a pound of meth in a trip in March or February of 2020. Russette pleaded guilty in the case and is awaiting sentencing.
Assistant U.S. Attorney Ethan Plaut is prosecuting the case, which was investigated by the FBI, Chippewa Cree Law Enforcement Services, Tri-Agency Drug Task Force, Bureau of Indian Affairs, Kalispel Tribe Public Safety Department in Washington and the Airway Heights Police Department in Washington.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Samuel Robert Loretta, of Clarksburg, West Virginia, was sentenced today to 12 months and one day of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Loretta, 54, pled guilty in December 2020 to one count of “Unlawful Possession of Firearm.” Loretta, a person prohibited from having a firearm because of prior felony convictions, admitted to having .45 caliber revolver in March 2020 in Harrison County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksburg Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Guatemalan Man Charged with Multiple Firearm ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Guatemala City, Guatemala, man has been indicted by a federal grand jury for Delivering Package with Firearms without Written Notice to the Carrier, Transferring Firearms to Out of State Resident, Making False Statement in Connection with a Purchase of Firearms, and Smuggling Goods from the United States.
Jordi Raul Rogel-Rodas, a/k/a “Jordy Raul,” age 23, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 20, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $800 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 27, 2020, June 11, 2020, August 3, 2020, October 30, 2020, and November 24, 2020, Rogel-Rodas, in connection with the attempted acquisition of several firearms, falsely indicated he was purchasing firearms for himself, when he was, in fact, buying them for another person.
The Indictment also alleges that on January 6, 2021, Rogel-Rodas, not being a licensed firearms dealer, mailed seven firearms and 939 rounds of assorted caliber ammunition to someone residing in Guatemala.
The charges are merely accusation and Rogel-Rodas is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Alcohol, Tobacco, Firearm, and Explosives and Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Rogel-Rodas was released on bond pending trial, which has been set for July 20, 2021.
Great Lakes Dredge & Dock Company Charged Causing 2016 Oil SpillRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that GREAT LAKES DREDGE & DOCK COMPANY, LLC (“GREAT LAKES”), a Texas company, was charged today with violating the Clean Water Act in connection with an oil spill in 2016.
According to the Bill of Information, GREAT LAKES negligently discharged and caused to be discharged a harmful quantity of oil into a navigable water of the United States, upon adjoining shorelines, and affecting the United States’ natural resources. The spill took place on September 5, 2016, on the edge of Bay Long near the Chenier Ronquille barrier island, which is east of Grand Isle.
If convicted, GREAT LAKES faces a possible term of probation and a fine of up to $200,000 or twice the gross gain to the defendant or twice the gross loss to any victim. A bill of information is merely a charge, and the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Department of Transportation’s Office of Inspector General, and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Gloucester Man Admits Trafficking Prescription Pills and Engaging in SNAP FraudRead the Press Release
CAMDEN, N.J. – A Gloucester City, New Jersey, man today admitted conspiring to distribute Adderall, selling oxycodone, and defrauding the federal Supplemental Nutrition Assistance Program (SNAP) in connection with his role in a drug trafficking ring operating in and around Gloucester City, Acting U.S. Attorney Rachael A. Honig announced.
Michael DePoder, 41, of Gloucester City, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count each of conspiring to distribute and possess with intent to distribute Adderall, distributing oxycodone, and unlawfully acquiring and using SNAP benefits.
According to documents filed in this case and statements made in court:
DePoder admitted that on multiple occasions from December 2019 to March 2020, he distributed Adderall, a Schedule II controlled substance containing amphetamine, to his father, Rocco DePoder, as part of a drug distribution conspiracy. Michael DePoder also sold oxycodone pills to an associate on March 8, 2020. He also admitted unlawfully acquiring SNAP benefits in exchange for controlled substances and unlawfully using and possessing those and other SNAP benefits totaling $2,676. SNAP, formerly known as the Food Stamp program, is administered by the U.S. Department of Agriculture.
Michael DePoder was charged along with 17 others in March 2020 in connection with an investigation by the FBI into the illegal distribution of prescription drugs, including high dosage oxycodone pills, to customers in Gloucester City and Camden.
The drug conspiracy and distribution counts are punishable by up to 20 years in prison and the SNAP fraud counts are punishable by up to five years in prison. Michael DePoder also faces a fine of up to $1,000,000 on each of the drug distribution offense and a fine of up to $250,000 for the SNAP fraud offense. As part of his plea agreement, he must pay $2,676 in restitution. Sentencing is scheduled for Aug. 24, 2021.
Eleven other defendants – Rocco DePoder, 68, Marcus Rushworth, 47, and Kenneth Rushworth, 60, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood; Wayne Muse, 74, of Lindenwold, New Jersey; Eric Bell, 50, Steven Walker, 50, Alexander Siaca, 55, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea.
She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch and Sara F. Merin of the Newark Office.
The charges and allegations contained in the complaints and indictments against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Fugitive narcotics trafficker apprehendedRead the Press Release
BROWNSVILLE, Texas – A 33-year-old Brownsville resident has been taken into custody after being on the run from law enforcement for the past year, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities found William Garcia allegedly living illegally in Mexico April 21. He is expected to make his initial appearance today at 9 a.m. in Brownsville before U.S. Magistrate Judge Ignacia Torteya III.
Garcia is charged in a nine-count indictment unsealed today with conspiracy and possessing with intent to distribute cocaine and heroin, money laundering and operating an unlicensed money transmitting business. Garcia allegedly operated a drug trafficking conspiracy which moved cocaine and heroin from Mexico into the United States since 2016. Garcia is also accused of returning the illegal drug proceeds from the sale of heroin and cocaine back to Mexico, according to the charges.
The indictment also alleges Garcia used the United States banking system to collect his drug money.
If convicted, Garcia is up to life in prison and up to a $10 million possible fine.
Homeland Security Investigations, Drug Enforcement Administration and IRS-Criminal Investigation conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation La Camelia. Customs and Border Protection and Cameron County District Attorney’s Office also provided assistance. Assistant U.S. Attorney Karen Betancourt is prosecuting the case.
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. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Union Official Sentenced to Probation for Forgery SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announces that Matthew Cuomo, age 55, of Kansas City, Missouri, was sentenced on April 21, 2021 to three (3) years of probation following his previous guilty plea to Forgery, in violation of Title 18, United States Code, Section 513, before the Honorable Judge Lance M. Africk.
Cuomo was the former president of a local labor union for employees of the Transportation Security Administration (TSA) and worked at multiple airports in Louisiana and Mississippi. An audit in 2017 revealed that union funds were missing, and a subsequent investigation revealed that Cuomo forged checks from the union’s bank account and used union funds for personal expenses. Cuomo forged approximately 50 checks, resulting in a loss of $15,000 to the local union. As part of his sentence, the defendant must make restitution of $15,000 to the local union.
U.S. Attorney Evans praised the work of the United States Department of Labor and the Transportation Security Administration for their investigation in this case.
“While the vast majority of union officers and employees do their work diligently and without incident, unfortunately civil and criminal violations do sometimes occur and, when they do, the union is the victim. The U.S. Department of Labor will continue to protect unions and their members by seeking appropriate punishment of, and restitution from, anyone attempting to use their position for personal financial gain at the expense of union members,” said Office of Labor-Management Standards Supervisory Investigator Tara Thibodaux in New Orleans, Louisiana. “This sentence and restitution order sends a clear message that there are consequences for individuals who breach the trust placed in them to be good stewards of union funds. We remain committed to working with our law enforcement partners to protect the financial integrity of labor unions.”
The prosecution is being handled by Assistant United States Attorney Myles Ranier.
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Former Memphis Attorney Convicted in Scheme to Defraud ClientsRead the Press Release
Memphis, TN – Following a four-day trial, a federal jury returned guilty verdicts on all seven counts of the indictment this afternoon of former Memphis Attorney George E. Skouteris, Jr. 56. Acting U.S. Attorney, Joseph C. Murphy, Jr., announced the verdict today.
According to the indictment, between 2007 and March 2013, Skouteris engaged in a scheme to defraud his clients by settling cases without notifying them and forging their endorsements on the settlement checks made jointly payable to him and the client. The indictment alleges that Skouteris then deposited the checks to bank accounts he maintained at TrustOne Bank. Skouteris fraudulently obtained in excess of $250,000 during the scheme.
A sentencing hearing is scheduled before U.S. District Judge John T. Fowlkes, Jr., on August 19, 2021. Skouteris faces a mandatory maximum penalty of 30 years imprisonment, a fine of $1,000,000 and five years supervised release as to each count. There is no parole in the federal system.
This case was investigated by the Tennessee Bureau of Investigation and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Carroll L. André III and David N. Pritchard prosecuted the case on behalf of the government.
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Former Ironworkers Treasurer Pleads Guilty to Stealing Union FundsRead 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 Scott Russell Merritt, 40, of Celoron, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to theft from a labor union. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that between May 2011, and August 2018, the defendant was the treasurer of Ironworkers Local 470. As treasurer, Merritt embezzled $50,850.71 in union funds. The defendant wrote union checks to pay various personal expenses.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, under the direction of the Boston-Buffalo District Director Jonathan Russo.
Sentencing is scheduled for August 18, 2021, at 2:00 p.m. before Judge Sinatra.
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Former Greene Co. Sheriff’s Lieutenant Sentenced to Two Years in PrisonRead the Press Release
LITTLE ROCK—A former Greene County Sheriff’s Lieutenant has been sentenced to two years in prison after stealing over $30,000 used in a ruse undercover drug operation. Allen Scott Pillow, 56, of Paragould, was sentenced today by United States District Judge Lee P. Rudofsky.
Pillow pleaded guilty on December 21, 2020, to one count of theft of government funds. In addition to the term of 24 months’ imprisonment, Judge Rudofsky also sentenced Pillow to two years of supervised release following his term of imprisonment as well as a $15,200 fine.
After receiving information that former Lieutenant Pillow might be abusing his role with the Greene County Sheriff’s Office, FBI Special Agents and Task Force Officers conducted a ruse narcotics investigation and sought Pillow’s help with the investigation. Pillow had previously retired from Arkansas State Police, where he was suspected to be involved with multiple instances of theft. On November 4, 2019, FBI task force officers parked a rental vehicle in a commercial parking lot in Paragould and staged a glass drug pipe in the vehicle along with a red backpack containing $76,000. The cash was divided into ten bundles of $7,600 each, and investigators recorded the serial numbers.
After staging the vehicle, two FBI Task Force Officers contacted Pillow on his cell phone and asked him to respond to the scene. The officers relayed to Pillow that they began a narcotics investigation in Tennessee and now needed Pillow’s help as the target had traveled into Arkansas. Pillow traveled to the scene in his Sheriff’s Department vehicle, searched the staged rental vehicle, and recovered the glass pipe, backpack, and currency.
Later that day, Pillow called the officers and informed them that the backpack had contained $45,600, leading agents to believe Pillow had taken four bundles of $7,600 each, totaling $30,400 of stolen FBI funds. Agents obtained a search warrant for Pillow’s residence and found $2,300 in his possession and $27,820 in a safe in his attic. The serial numbers on the discovered currency matched the original FBI serial numbers. The remaining $280 in stolen funds was not located.
Pillow was indicted in November 2019, and the case was investigated by the FBI and prosecuted by Assistant United States Attorney Erin O’Leary.
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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
Florida Man Who “Tweeted” Child Sexual Abuse Images Pleads Guilty to Federal ChargesRead the Press Release
Tampa, Florida – Marchaun Browning (24, Gibsonton) has pleaded guilty to distributing and possessing images depicting the sexual abuse of children. He faces a mandatory minimum sentence of 5 years, and up to 70 years, in federal prison. A sentencing date has not yet been set.
According to court documents, in June 2017, Browning created several Twitter accounts. On several different occasions, he posted child sex abuse images and tagged other Twitter accounts associated with public officials, media outlets, and public figures. Browning’s tweets also contained messages directed at the intended and tagged recipients.
Law enforcement officers executed a search warrant at Browning’s residence in Gibsonton and seized electronic devices that contained more than 160 images and one video depicting the sexual abuse of children, including some as young as toddlers.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.