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Friday 5 March 2021
Cynthiana Man Sentenced to 36 Months for Mail FraudRead the Press Release
LEXINGTON, Ky. – A Cynthiana, Ky., man, Randall Perry, 54, was sentenced on Thursday to 36 months in federal prison, by U.S. District Judge Karen Caldwell, for mail fraud.
Perry pleaded guilty to one count of mail fraud in June 2020. According to his plea agreement, Perry was an employee at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown, Ky. Perry admitted that between November 9, 2015 and November 6, 2017, he stole various parts and equipment from the Georgetown plant, then sold some of those stolen parts through eBay and other means, fraudulently representing to online consumers that he was in lawful possession of the equipment he offered for sale. Perry mailed stolen equipment to purchasers and obtained $254,799.30 from this scheme.
TMMK identified 842 stolen parts and valued them at $1,216,147.61. The Court found TMMK’s loss calculation to be appropriate and ordered Mr. Perry to also pay restitution equal to that loss amount.
Under federal law, Perry must serve 85 percent of his prison sentences. Perry will be under the supervision of the U.S. Probation Office for one year, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, jointly announced the sentence.
The investigation was conducted by USPIS and Georgetown Police Department. The United States was represented by Assistant U.S. Attorney Tashena Fannin.
Cryptocurrency Fraudster Pleads Guilty to Securities Fraud and Money Laundering Charges in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, a citizen of Sweden, pleaded guilty to securities fraud, wire fraud, and money laundering charges, announced Acting United States Attorney Stephanie M. Hinds; Acting Assistant Attorney General Nicholas McQuaid of the Justice Department’s Criminal Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
A criminal complaint filed March 4, 2019, charged Karlsson, 47, and his company, Eastern Metal Securities (EMS), with crimes involving a scheme to defraud victims of more than $16 million. Karlsson, also known by several aliases including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg, was arrested on June 17, 2019, in Thailand and was extradited to the United States to face the charges. A federal grand jury indicted Karlsson and EMS on July 25, 2019.
“The internet has pioneered extraordinary opportunities for commerce,” said Acting U.S. Attorney Hinds. “Unfortunately, the same tools that have provided innovative methods of doing business also have provided fertile grounds for fraudsters to take advantage of the unwary. This case demonstrates that we will pursue fraudsters who seek to find their victims in the Northern District of California, even if such criminals operate from outside the country.”
“Karlsson’s false promises of a profitable investment with minimal risk bilked tens of millions of dollars from his unsuspecting victims,” said IRS-CI Special Agent in Charge Jackson. “Karlsson’s admission today will hopefully provide some measure of justice for more the more than 3,500 victims he scammed and put them on a path to financial restoration. We were glad to provide our expertise in tracing virtual currency in this investigation, diminishing the belief of anonymity associated with these transactions.”
The indictment and a factual basis filed by the government describe a long-running scheme by which Karlsson and EMS used a website to commit wire fraud against thousands of victims. Specifically, the indictment explains that from November 27, 2012, through June 19, 2019, Karlsson and EMS used www.easternmetalsecurities.com to make fraudulent representations and convince victims to send funds using a virtual currency exchange. During the same period, Karlsson and EMS used deceptive “devices and contrivances” to sell securities and then tried to conceal the proceeds of the wire fraud and securities fraud. In sum, the indictment charges Karlsson and EMS with one count each of wire fraud, in violation of 18 U.S.C. § 1343; securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. § 240.10b-5; and money laundering, in violation of 18 U.S.C. § 1957. Karlsson pleaded guilty to all the charges pending against him. EMS has ceased to exist.
During the hearing, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000. Karlsson advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. Karlsson admitted he had no way to pay off the investors. Instead, the funds provided by victims were transferred to Karlsson’s personal bank accounts and he then used proceeds to purchase expensive homes and a resort in Thailand.
As the government has alleged, Karlsson also used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson brought the investors in HCI25 together with the investors in the “Pre Funded Reversed Pension Plan” and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson admitted he defrauded no less than 3,575 victims of more than $16 million.
Karlsson faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen and Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case. Assistant U.S. Attorney Karen Beausey of the Asset Forfeiture Unit of the U.S. Attorney’s Office is prosecuting the forfeiture proceedings. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. The Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.
Correctional Officer and Inmate Sentenced to Prison for Bribery and Smuggling SchemeRead the Press Release
TEXARKANA, Texas – A correctional officer and federal inmate have been sentenced for a bribery conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“EDTX is committed to the principle that no person, regardless of their title, status, or position, is above the law,” said Acting U.S. Attorney Nicholas J. Ganjei. “This corrupt law enforcement officer exploited his position of public trust and endangered the inmates and staff at FCI Texarkana. This office will work tirelessly to protect the trust and confidence that East Texans have placed in their law enforcement community.”
James Thompson, a 55-year-old Titus County, Texas, man, pleaded guilty on August 5, 2020, to conspiring to commit bribery and was sentenced to 46 months in federal prison by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Thompson to forfeit $17,200.00 in U.S. currency and cash proceeds from his scheme.
Gilbert Gomez, a 54-year-old federal inmate, pleaded guilty on August 31, 2020, to conspiring to commit bribery and was sentenced to 46 months in federal prison by Judge Schroeder. Judge Schroeder also ordered Gomez to forfeit $15,000 in cash proceeds from his scheme.
According to information presented in court, beginning before August 2019 and continuing through January 2020, Thompson, a federal correctional officer, and Gomez, a federal inmate, engaged in a scheme to smuggle contraband into the Federal Correctional Institution located in Texarkana, Texas. During the scheme, Thompson received cash bribe payments and prison contraband at a post office box under the alias of “Bobby Brown.” Thompson then smuggled the contraband into FCI Texarkana when he entered the facility to go to work. Gomez coordinated the scheme from inside the institution, where he arranged cash bribe payments and delivered the smuggled contraband to other inmates. Thompson and Gomez received more than $30,000.00 total for smuggling contraband into FCI Texarkana.
This case was investigated by the Dallas Field Office of the U.S. Department of Justice, Office of the Inspector General, the Fort Worth Division of the U.S. Postal Inspection Service, and the Bureau of Prisons, Special Investigative Services. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Convicted felon sentenced to over nineteen years for selling methRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Leon Perry Jr., 37, of Indianapolis, was sentenced to 235 months in federal prison by U.S. District Judge James P. Hanlon for Distribution of Methamphetamine. Perry Jr. was previously convicted of a serious violent felony, and his mandatory minimum sentence was enhanced for that reason.
“Prosecuting those who have a history of violence, like Perry Jr., who choose to sell the illegal drugs that are devastating our communities and igniting violence, will continue to be a priority of this office,” said Childress. “It is just another tool that can be used to help curb the violence that has been escalating in this city and throughout the country.”
In 2019, Perry Jr. was being investigated for the distribution of methamphetamine in and around the Indianapolis area. Not only was he distributing methamphetamine throughout the community, he was unknowingly selling it to the officers investigating him. In total, Perry Jr. sold over 600 grams to the officer.
Perry Jr. was considered a serious violent felony due to his prior conviction in 2010 for Aggravated Battery, a B felony in Marion County, Indiana, Cause Number 49G04-0903- FA-036591. In addition to that conviction, Perry Jr. had four other prior felony convictions in Marion County, Indiana, including felony Carrying a Handgun without a License under Cause Number 49G05-0508-FC-130910 in 2005, and felony Criminal Recklessness under Cause Number 49G04-0709-FC-197671 in 2008.
This investigation was conducted by the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department.
“This lengthy sentence clearly demonstrates the FBI and our partners remain committed to going after those who not only endanger the community by selling illegal substances, but who have a history of violent activity,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “It is important for those who traffic meth and other narcotics to know we will continue to use all available resources to prevent dealers from peddling their poison in our communities.”
According to Assistant United States Attorney Michelle P. Brady, who prosecuted this case for the government, Perry Jr. must also pay a $1000 fine and serve 10 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to prosecute organizations and individuals distributing cocaine, marijuana, and other controlled substances. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Construction Company Owners Pleaded Guilty to Defrauding Federal Program Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
Two Texas construction company owners have pleaded guilty in a long-running scheme to defraud the United States.
Michael Wibracht of San Antonio, Texas, the former owner of several companies in the construction industry, conspired to defraud the United States in order to obtain valuable government contracts under programs administered by the U.S. Small Business Administration (SBA) for which neither his nor his co-conspirators’ companies were eligible. One co-conspirator, Ruben Villarreal, also of San Antonio, pleaded guilty on Nov. 20, 2020, to participating in the same conspiracy.
“For many years, this conspiracy undermined the integrity of the federal procurement process,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice Antitrust Division. “This conduct robbed opportunities from honest businesses, especially those owned by historically disadvantaged individuals and service-disabled veterans.”
According to court documents filed in the Western District of Texas in San Antonio, Wibracht, Villarreal, and other co-conspirators conspired to defraud the United States by interfering with the function of the SBA and fraudulently obtaining money from agencies of the United States as early as 2004 continuing at least through 2017. As part of this scheme, the conspirators installed Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Wibracht and other co-conspirators, however, exercised disqualifying financial and operational control over the construction company. The conspirators concealed that control in order to secure over $250 million in government contracts that were “set aside” for SDVOSBs in order to benefit their larger, non-qualifying businesses. The SBA administers the SDVOSB program, which is designed to increase the number of government contracts awarded to small businesses owned and controlled by service-disabled veterans. To qualify as an SDVOSB, a company, among other things, must be owned and controlled by a service-disabled veteran.
“Conspiring to fraudulently gain access to federal contracts set aside for small businesses owned and operated by disadvantaged individuals or service-disabled veterans is unacceptable,” said Inspector General Hannibal “Mike” Ware. “The guilty pleas send a strong message that those responsible will be held accountable. I want to thank the Antitrust Division and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“These plea agreements showcase the unique expertise of the U.S. Army CID’s specialized unit, the Major Procurement Fraud Unit,” said Special Agent in Charge Ray A. Rayos of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Together, with our partner agencies and the Department of Justice Antitrust Division, those individuals responsible for engaging in a complex and long running scheme to defraud the United States government have been brought to justice.”
“The General Services Administration Office of Inspector General is committed to working with its law enforcement partners and the Department of Justice Antitrust Division to ensure that individuals and companies who fraudulently obtain contracts meant for legitimate small and disadvantaged businesses are investigated and prosecuted to the full extent of the law,” said Inspector General Carol Ochoa of the General Services Administration.
“The defendants conspired to fraudulently obtain multi-million dollar government contracts under a program designed to benefit service-disabled veterans,” said Inspector General Michael J. Missal of the Department of Veterans Affairs. “These guilty pleas send a clear message that individuals and companies who defraud the government contracting process for service-disabled veterans will be held accountable. The VA OIG thanks the Department of Justice Antitrust Division and our law enforcement partners for their joint efforts to achieve justice in this case.”
“This outcome is a testament to the commitment of the Defense Criminal Investigative Service (DCIS) and our Law Enforcement partners in safeguarding the integrity to the DoD contracting process,” said Acting Special Agent-in-Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will utilize all available resources to pursue allegations of fraud and corruption, bringing to justice those who seek to enrich themselves through the exploitation of Small Business Administration programs designed to help disadvantaged groups.”
Wibracht pleaded guilty to one count of conspiring to commit wire fraud and defraud the United States. Villarreal pleaded guilty to conspiracy to defraud the United States and is scheduled to be sentenced before Judge Xavier Rodriguez on June 23, 2021. Both men face a maximum penalty of five years in prison and a $250,000 fine. The maximum fine for an individual may be increased to twice the gain derived from the crime, or twice the loss suffered by victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The SBA Office of Inspector General, Army Criminal Investigation Command’s Major Procurement Fraud Unit, General Services Administration Office of Inspector General, Department of Veterans Affairs Office of Inspector General, and DCIS are investigating the case, with assistance from the U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency.
The Department of Justice Antitrust Division’s Washington Criminal II Section is prosecuting the case. Special thanks are extended to Assistant U.S. Attorney William F. Lewis, Jr. of the U.S. Attorney’s Office for the Western District of Texas.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement and grant and program funding at all levels of government — Federal, state, and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Colombian national extradited to Columbus, Ohio, charged with conspiring to ship thousands of kilograms of cocaine to AmericaRead the Press Release
COLUMBUS, Ohio – A Colombian national was extradited to Ohio yesterday to face federal drug charges in the Southern District of Ohio. He appeared in U.S. District Court here today.
Sergio L. Valderrama-Areiza, 35, allegedly conspired with others to coordinate the shipment of thousands of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico, to the United States.
The defendant – also known as Blindaje, Blindaje Artesanal and Rasputin – is alleged to be involved in moving tens of millions of dollars’ worth of cocaine to America.
As part of this case, law enforcement officers seized more than 250 kilograms of cocaine total in Panama in February, March, May and November 2018. An additional 278 kilograms of cocaine was seized by law enforcement in Panama in August and September 2018 and April 2019.
The indictment details that, as part of the conspiracy, individuals would use “load” coordinators to assist with logistics of cocaine shipments, locate drivers and boat operators for narcotic-laden vehicles and vessels, and secure shared investments from multiple co-conspirators in specific cocaine shipments.
Fishermen and other commercial maritime laborers were allegedly recruited by conspirators to transport cocaine and refueling vessels.
Conspirators allegedly paid a “tax” or “fee” to send cocaine through areas controlled by a different drug trafficking organization or cartel.
Members of the conspiracy allegedly shared information on the activities and locations of law enforcement and military personnel assigned to interdict narcotics shipments. It is alleged co-conspirators also sheltered individuals who were at risk of extradition to other countries.
Low-level co-conspirators would allegedly take responsibility for an entire load of seized cocaine in order to free higher-level members.
The narcotics conspiracy in this case is punishable by 10 years up to life in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the charges. Assistant United States Attorneys Jonathan J.C. Grey, Elizabeth Rabe and Kelly A. Norris are representing the United States in this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendant’s extradition from Colombia.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Cedar Rapids Felon Sentenced to Two Years in Federal Prison for Possessing a FirearmRead the Press Release
A felon who possessed a firearm was sentenced today to two years in federal prison.
Anthony Rush, age 32, of Cedar Rapids, Iowa, received the sentence after a September 28, 2020 guilty plea to one count of being a felon in possession of a firearm. At the plea hearing, Rush admitted that, in May 2020, he knowingly possessed a .380 auto caliber pistol. The record at the sentencing hearing established that defendant ran from Cedar Rapids police officers and discarded a loaded pistol before being arrested. Rush was convicted of attempted burglary in the second degree in Linn County in 2012.
Rush was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rush was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-62.
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Cape Coral Man Sentenced to More Than 17 Years in Prison for Distributing Fentanyl Causing the Death of AnotherRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Steven Clements Telgenhof (28, Cape Coral) to 17 years and 6 months in federal prison for distribution of and possession with the intent to distribute fentanyl. Telgenhof had pleaded guilty on February 6, 2020.
According to court documents, on March 12, 2019, Telgenhof sold the victim approximately one gram of fentanyl. The victim ingested the fentanyl later that evening and was found in his bedroom, unresponsive, by his parents early the next morning. Attempts to resuscitate the victim were unsuccessful and he passed away from acute fentanyl toxicity four days later.
Evidence gathered during the investigation led law enforcement to Telgenhof’s Cape Coral residence on March 22, 2019, where they executed a search warrant and seized Telgenhof’s stash of fentanyl and nearly $8,000 in proceeds from his distribution activities.
This case was investigated by the Cape Coral Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Camp Hill Man Sentenced to 12 Months and One Day Imprisonment for Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Forney, age 41, of Camp Hill, Pennsylvania, was sentenced today to 12 months and one day imprisonment followed by one year supervised release and a $40,000 fine by U.S. District Court Judge Jennifer P. Wilson on four counts of tax evasion.
According to Acting United States Attorney Bruce D. Brandler, on September 23, 2018, police were called to the residence of Matthew and Kim Forney for reports of a shooting. Upon arrival, police discovered that their daughter’s boyfriend had shot both Matthew and Kim Forney. While securing the residence, officers observed bloody footprints leading through the house to an outside pool house. Inside the pool house, the police located a garbage bag, which contained a large amount of bundled United States currency. Police obtained and executed a search warrant. Inside a large gun safe located in the residence, police found additional amounts of bundled cash attached to business receipts. The officers seized the cash and receipts.
The Forney’s daughter’s boyfriend was charged with two counts of aggravated assault in connection with the shooting, but charges were ultimately dismissed on June 19, 2019.
An investigation conducted by the Internal Revenue Service – Criminal Investigation determined that this currency was income that Matthew and Kim Forney earned through their business, but omitted on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
Kim Forney was sentenced to 12 months’ imprisonment by Judge Wilson on March 4, 2021.
“The license to run a business is not a license to evade taxes,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. and Mrs. Forney thought they could hoard all of their cash earnings and fly under the radar of the IRS, but they couldn’t be more wrong. Anyone contemplating similar criminal conduct should beware; IRS Criminal Investigation Special Agents are uniquely qualified to trace all sources of income.”
The case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI). Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
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California Man Sentenced to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on February 22, 2021, to more than 11 years in federal prison.
Daryl David Blair, 36, from Los Osos, California, received the prison term after a September 18, 2020, guilty plea to one count of conspiracy to distribute methamphetamine.
At sentencing, Blair was found to have been involved with trafficking 16 pounds of methamphetamine across California, Iowa, and South Dakota. On February 8, 2020, while patrolling the Grand Falls Casino parking lot in Larchwood, IA, law enforcement searched a vehicle connected to Blair and ultimately recovered nearly 3 pounds of methamphetamine, and drug trafficking materials. Earlier that winter, Blair and his coconspirators had brought pounds of methamphetamine to the Midwest for distribution.
Blair was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Blair was sentenced to 140 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Lyon County Sheriff’s Office, Lyon County Attorney’s Office, and Iowa Department of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4068.
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California Man Sentenced for Illegally Exporting Cesium Atomic Clocks to Hong KongRead the Press Release
BOSTON – A California man was sentenced on Wednesday, March 3, 2020 in federal court in Boston for illegally exporting cesium atomic clocks to Hong Kong.
Alex Yun Cheong Yue, 69, of South El Monte, Calif., was sentenced by U.S. District Court Judge Indira Talwani to time-served (one day) and three years of supervised release, a year of which must be served in home confinement. Yue is also prohibited from engaging in import or export transactions during the period of supervised release. In August 2020, Yue pleaded guilty to one count of conspiracy to commit export violations, two counts of unlawful exports and attempted exports of U.S. goods to Hong Kong and one count of smuggling.
Yue was arrested and charged in June 2019. Wai Kay Victor Zee, 56, of Hong Kong, along with his company, Premium Tech Systems, Limited were also charged. Zee remains at large in Hong Kong Special Administrative Region of the People’s Republic of China.
Beginning in December 2015, Yue, Zee, and Premium Tech conspired to procure U.S.-origin cesium atomic clocks and export them to Hong Kong without obtaining the required export licenses. Cesium atomic clocks are used in global positioning system solutions, network timing protocols, encryption programs and national defense and space applications. They are controlled for export by the U.S. Department of Commerce for national security reasons.
To obtain the atomic clocks, Yue purchased them using a fictitious company, “Ecycle Tech International Ltd.,” by falsely representing to the U.S. seller that the atomic clocks would be used solely in the United States for cordless phone research and development. Based on Yue’s false representations, the U.S. seller sold the cesium atomic clocks to Ecycle. On Feb. 19, 2016, the atomic clocks shipped from the manufacturing facility in Beverly, Mass., to Yue in California. Three days later, on Feb. 22, 2016, Yue reshipped the controlled cesium atomic clocks to Zee at Premium Tech in Hong Kong, with paperwork that falsely described what the clocks were and undervalued their worth. Neither Yue, Zee, nor Premium Tech ever applied for or obtained the required export licenses from the U.S. Department of Commerce. On Feb. 24, 2016, Zee allegedly confirmed receipt of the cesium atomic clocks in Hong Kong.
In December 2017, Yue attempted to purchase an additional cesium atomic clock. Prior to the sale, however, the U.S. seller required Yue to provide an end-user statement detailing where and for what the clocks would be used. In April 2018, Yue sent an end-user certificate on Ecycle letterhead stating that the atomic clocks would be used in a calibration lab in California. In response to further inquiries from the U.S. seller, Yue falsely declared that he was not intending to export the cesium atomic clocks. When the U.S. seller insisted on a site visit to the California location where the atomic clocks would be utilized, Yue abruptly canceled the order. On July 13, 2018, Yue received a refund payment from the U.S. seller. Three days later, on July 16, 2018, Yue sent a wire transfer to Premium Tech’s bank account in Hong Kong with the refunded money.
Acting United States Attorney Nathaniel R. Mendell; William Higgins, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; and William S. Walker, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Scott Garland, Deputy Chief of Mendell’s National Security Unit, prosecuted the case.
Buffalo Man on Federal Probation Arrested on Gun ChargeRead 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 Larry Watkins, Jr., 54, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a weapon. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Meghan E. Leydecker and Franz M. Wright, who are handling the case, stated that according to the complaint, the defendant is currently on federal probation following a 2019 conviction for being a felon in possession of ammunition. On March 2, 2021, United States Probation Officers, assisted by other law enforcement personnel, searched Watkins’ Stanton Street residence and recovered a 9mm pistol in his bedroom. The defendant was also previously convicted in New York State Court of drug and gun charges and is legally prohibited from possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on March 17, 2021.
The complaint is the result of an investigation by the United States Probation Office, under the leadership of Chief Probation Officer Timothy C. Englerth, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bowie County Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
TEXARKANA, Texas – A Bowie County sex offender has been sentenced to federal prison for possessing child pornography in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
William Johnson Springer, 60, of Texarkana, Texas, pleaded guilty on Oct. 5, 2020, to possessing child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Springer to pay restitution to his victims, to register as a sex offender, and to serve a life term of supervised release following his imprisonment.
“This repeat sex offender victimized the weakest in our community by viewing and possessing child pornography,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office will continue to find and prosecute those who sexually exploit our children by viewing, possessing, distributing, or producing child pornography.”
According to information presented in court, Springer possessed a cell phone, which he used to download and collect images and videos containing child pornography. His collection of more than 600 images included depictions of prepubescent minors, sadistic or masochistic abuse or violence, and sexual abuse and exploitation of infants and toddlers.
Springer was previously convicted of possession of child pornography in the U.S. District Court for the Northern District of Oklahoma and on Feb. 9, 2009, was sentenced to 67 months in federal prison and five years of supervised release as a result of that conviction. Springer also has pending charges for failure to comply with registration requirements in the 202nd District Court in Bowie County.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Boston Man Indicted on Methamphetamine Distribution ChargesRead the Press Release
BOSTON – A Boston man was indicted by a federal grand jury this week on methamphetamine distribution charges.
Daniel Lennon, 31, was indicted on Wednesday, March 3, 2021 on one count of distribution of five grams or more of methamphetamine and two counts of distribution of 50 grams or more of methamphetamine. Lennon was initially arrested on Feb. 4, 2021 and charged by criminal complaint.
According to charging documents, investigators conducted three undercover purchases of methamphetamine from Lennon in January and February 2021.
The charge of distribution of five grams or more of methamphetamine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of distribution of 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Lauren A. Graber of Mendell’s Narcotics and Money Laundering 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.
Andrea T. Martinez Appointed Acting United States Attorney for the District of UtahRead the Press Release
SALT LAKE CITY – Andrea T. Martinez is the Acting United States Attorney for the District of Utah, appointed on March 1, 2021, by virtue of the Vacancies Reform Act. As Acting U.S. Attorney, Ms. Martinez will serve as the District’s chief federal law enforcement official until a successor is nominated by the President and confirmed by the U.S. Senate. Ms. Martinez is only the third woman to serve as the Acting United States Attorney in the District of Utah and is the first Latina to hold the position.
Ms. Martinez is a career prosecutor who has dedicated her professional life to public service. She has served in the United States Attorney’s Office for more than a decade. As an Assistant United States Attorney, Ms. Martinez has been involved in the full spectrum of violent crime prosecution including drug trafficking, federal firearm, and child exploitation cases. She also prosecuted crimes in Indian Country. Ms. Martinez has held an array of leadership positions within the office, including First Assistant United States Attorney, Violent Crime Deputy Section Chief, Senior Litigation Counsel, Violence Against Women Act Coordinator, District Diversity Chairperson, and Project Safe Childhood Coordinator.
Ms. Martinez began her career at the Salt Lake County District Attorney’s office where she prosecuted felony narcotic, aggravated assault, special victim and homicide cases. She also prosecuted cases while assigned to the Juvenile and Misdemeanor Divisions. Ms. Martinez is from Utah. She graduated from the University of Utah, S.J. Quinney College of Law in 2001, and was awarded a Bachelor of Arts degree, with a double major, from the University of Utah in 1998.
Appleton Man Indicted for Defrauding InvestorsRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that earlier today an 11-count indictment was unsealed in federal court charging Robert Narvett (age: 56) of Appleton, Wisconsin, with: (1) four counts of wire fraud, in violation of 18 U.S.C. § 1343; (2) one count of bank fraud, in violation of 18 U.S.C. § 1344; (3) one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and (4) five counts of money laundering, in violation of 18 U.S.C. § 1956.
According to the indictment, beginning on or about January 1, 2014, Narvett defrauded victims by promising them he could invest their money and return it with significant interest and dividends when, in fact, Narvett was using his victims’ money to fund his own lifestyle and to make lulling payments to other victims. The indictment also alleges that Narvett applied for, and obtained, loans from financial institutions in his victims’ names without their authorization. The indictment alleges that between 2014 and 2019, Narvett fraudulently obtained over $1.5 million from his victims.
According to public records, in 2013, Narvett was charged by the Securities and Exchange Commission with engaging in a fraudulent investment scheme. A judgment in the amount of $654,583.92 was entered against Narvett in October 2014.
Acting U.S. Attorney Frohling stated: “Prosecuting financial crimes remains a top priority for the Department of Justice. This indictment was the result of tireless and thorough investigative work – all with the aim of seeking justice for the victims of Mr. Narvett’s latest alleged scheme.”
FBI Special Agent in Charge Robert Hughes stated: “I applaud the great work of our team. This offender can longer use his investment scheme to prey on innocent victims for his own personal gain. With our partners, the FBI will continue to use all available resources to investigate and bring those to justice who take advantage of consumers.”
If convicted of wire fraud or money laundering, Narvett would face a maximum sentence of twenty years in prison per count. If convicted of bank fraud, he would face a maximum sentence of thirty years in prison. If convicted of aggravated identity theft, Narvett would face a mandatory minimum sentence of two years in prison.
The Federal Bureau of Investigation investigated the case, which Assistant United States Attorneys Julie F. Stewart and Daniel Humble will prosecute. The Commodities Futures Trading Commission assisted in the investigation.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For further information contact: Public Information Officer Kenneth Gales
[email protected], (414) 297-1700
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18 Charged in Related Methamphetamine ConspiraciesRead the Press Release
OKLAHOMA CITY – Acting U.S. Attorney Robert J. Troester, FBI Special Agent in Charge Melissa Godbold, OCPD Chief of Police Wade Gourley, and IRS Criminal Investigations Acting Special Agent in Charge Mark Pearson jointly announce that earlier this week, more than 100 federal, state, and local law enforcement officers executed 15 search warrants and multiple arrest warrants throughout the Oklahoma City metro area targeting a drug trafficking organization distributing methamphetamine.
This operation was the culmination of a two-year joint state-wide investigation led by the Federal Bureau of Investigation, the Oklahoma City Police Department, the Internal Revenue Service Criminal Investigation, and the United States Attorney’s Office. Between March 3 and March 4, 2021, a coordinated takedown was conducted that resulted in the arrest of 15 defendants and the seizure of nearly 200 gallons of liquid meth, more than 300 pounds of crystal meth, 25 firearms, and more than $100,000 in U.S. currency. Over the course of the entire two-year investigation of this drug trafficking organization, law enforcement seized a combined total of nearly 300 gallons of liquid meth, more than 750 pounds of crystal meth, 40 firearms, and more than $1,000,000 in cash in the cases announced today and all related cases.
According to affidavits filed in support of the first criminal complaint, OSCAR HERNANDEZ FLORES, 36, and LUCERO HERNANDEZ FLORES, 41, former residents of Oklahoma, have allegedly been directing the Hernandez Drug Trafficking Organization (DTO) from San Luis Potosi, Mexico, since at least January 2018. The charging documents also allege that the Hernandez DTO is responsible for the importation, transportation, and distribution of thousands of kilograms of meth per year in the Western District of Oklahoma and elsewhere, using contacts in Oklahoma to carry out the daily operations of the DTO. Allegedly, the organization earns millions of dollars a year in drug proceeds, most of which is ultimately transferred back down to Mexico, either through bulk cash smuggling or through third party wire transfers. The remaining defendants in this complaint can be found in the attached public filing.
According to affidavits filed in support of the second criminal complaint, IAN BASWELL, 46, and TERRY HAMMONS, 36, who were incarcerated at North Fork Correctional Center in Sayre, Oklahoma, are charged for their alleged furtherance of Hernandez DTO activities through drug distribution operations from the North Fork Correctional Center, utilizing contraband cellphones and non-incarcerated couriers. The remaining defendants in this complaint can be found in the attached public filing. Likewise, CHARLES MANSFIELD, 42, who is presently incarcerated at the Lawton Correctional Facility, and MATTHEW PERRY, 31, who is presently incarcerated at the Lexington Correctional Center, were also charged in the first complaint for their alleged part in distributing drugs imported by the Hernandez DTO from their respective correctional facilities, also through the use of contraband cellphones.
The complaints charge each defendant with conspiracy to possess with intent to distribute and to distribute more than 500 grams of meth. If convicted, each defendant faces a term of imprisonment of no less than ten years and up to life and a fine of up to $10,000,000.
"These charges are the result of tremendous effort, cooperation, and teamwork between law enforcement partners to protect our communities from illegal drugs that devastate communities across the State," said Acting U.S. Attorney Troester. "Specifically, I commend the leadership of the FBI, Oklahoma City Police Department, and the Internal Revenue Service-Criminal Investigation for their countless hours of hard work in bringing this investigation together."
"Cases that are this large and this complex require teamwork, and the results we achieved this week would not have been possible without the collaboration of the law enforcement agencies from throughout Oklahoma," said FBI SAC Godbold. "This partnership led to the arrests and seizures of drugs that will make our streets safer and our communities stronger. It is the type of cooperation that the public not only deserves, but has come to expect from law enforcement and I want to thank and congratulate our partners on this week’s safe and successful operation."
"The Oklahoma City Police Department appreciates the partnerships we have with our state and federal agencies," said OCPD Chief Gourley. "Public safety in Oklahoma City takes a considerable team effort. This investigation is a perfect example of how we work together to combat major crimes, which have a huge impact on the safety of our residents. Methamphetamine use and its associated criminal activity have a detrimental effect on our city and this operation will certainly make our community safer. Thank you to everyone involved for your continued support and dedication to the safety of Oklahoma City residents."
"This week’s arrests are an important victory for the American public. The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs," said IRS-CI SAC Pearson. "Without these ill-gotten gains, the traffickers cannot finance their organizations. The role of IRS-CI in narcotics investigations is to follow the money to financially disrupt and dismantle drug trafficking and money laundering organizations. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice."
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
These charges are the result of more than two years of state-wide investigation led by the Federal Bureau of Investigation—Oklahoma City Field Office; the Oklahoma City Police Department; and the Internal Revenue Service—Criminal Investigations, with the assistance of Homeland Security Investigations, the Oklahoma Bureau of Narcotics, the Comanche County Sheriff’s Office, and the Lawton Police Department.
Assistant U.S. Attorneys David McCrary and Nick Coffey are prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Thursday 4 March 2021
Windsor Woman Sentenced to 12 Months’ Imprisonment for Aiding and Abetting the Preparation and Filing of False Tax Returns with the IRSRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kim Forney, age 48, of Windsor, Pennsylvania, was sentenced today to 12 months’ imprisonment followed by one year supervised release by U.S. District Court Judge Jennifer P. Wilson on four counts of aiding and abetting the preparation and filing of false tax returns.
According to Acting United States Attorney Bruce D. Brandler, on September 23, 2018, police were called to the residence of Matthew and Kim Forney for reports of a shooting. Upon arrival, police discovered that their daughter’s boyfriend had shot both Matthew and Kim Forney. While securing the residence, officers observed bloody footprints leading through the house to an outside pool house. Inside the pool house, the police located a garbage bag, which contained a large amount of bundled United States currency. Police obtained and executed a search warrant. Inside a large gun safe located in the residence, police found additional amounts of bundled cash attached to business receipts. The officers seized the cash and receipts.
The Forney’s daughter’s boyfriend was charged with two counts of aggravated assault in connection with the shooting, but charges were ultimately dismissed on June 19, 2019.
An investigation conducted by the Internal Revenue Service – Criminal Investigation determined that this currency was income that Matthew and Kim Forney earned through their business, but omitted on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
Matthew Forney’s sentencing hearing is scheduled for March 5, 2021 before Judge Wilson.
“The license to run a business is not a license to evade taxes,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. and Mrs. Forney thought they could hoard all of their cash earnings and fly under the radar of the IRS, but they couldn’t be more wrong. Anyone contemplating similar criminal conduct should beware; IRS Criminal Investigation Special Agents are uniquely qualified to trace all sources of income.”
The case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI). Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
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Williamsport Man Sentenced to 210 Months’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wayne Davidson, age 27, of Williamsport, Pennsylvania, was sentenced to 210 months’ imprisonment followed by a four-year term of supervised release by U.S. District Court Judge Matthew W. Brann for his involvement in a drug trafficking conspiracy.
According to Acting U.S. Attorney Bruce D. Brandler, Davidson pled guilty in October 2020 to conspiring to distribute 100 grams or more of heroin (which is approximately 2,000 individual doses) and a mixture of heroin and carfentanil. During a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro reported treating 51 such cases within a 48-hour period.
Two of Davidson’s co-conspirators, Markeese Askew and Nathan Crowder also pled guilty in October 2020 to the same charge. They both face minimum sentences of 11 years’ imprisonment. Raymond Howard was convicted after a five-day jury trial and awaits sentencing.
In total, Davidson and the three co-conspirators were charged with delivering a mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals.
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Alisan V. Martin and Geoffrey W. MacArthur are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Whitley County Man Pleads Guilty to Producing Child PornographyRead the Press Release
LONDON, Ky. - A Williamsburg, Ky., man, Amos Sparkman, 25, pleaded guilty on Tuesday, before U.S. District Judge Claria Horn Boom, to the production of child pornography.
According to his guilty plea agreement, in October 2020, Sparkman started an online relationship with a minor female, using the social media platform Snapchat. Sparkman confessed to a sexual relationship with the minor and possessed a video of the minor engaging in sexually explicit conduct with Sparkman. Sparkman admitted that he used the minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transferred using Snapchat.
Sparkman was indicted in January 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
Sparkman is scheduled to be sentenced on July 13, 2021. He faces a minimum of 15 years and a maximum of 30 years in prison, in addition to a maximum $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
White Supremacists Plead Guilty to Violent Crime in Aid of RacketeeringRead the Press Release
Two members of the Aryan Circle (AC) pleaded guilty this week to their roles in a violent assault of a man in October 2016.
Michael Martin, aka Aryan Prodigy, aka AP, 38, of Austin, Texas, and Bobby Dayle Boney, 50, of Sulphur Springs, Texas, each pleaded guilty to assault resulting in serious bodily injury in aid of racketeering. Martin and Boney committed the assault as part of their membership in the AC, a gang that operates in Texas and other states throughout the country.
This case is part of a larger investigation into the AC, Operation Noble Virtue, that has targeted AC leadership and resulted in prosecutions and convictions in six different jurisdictions to date. According to information presented in court and contained in court filings, the AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Martin and Boney both joined the AC in the early 2000s and have gang tattoos indicating their affiliation. Both served in leadership roles within the gang. For a period of time, Martin served as an upper board member, which meant that he was one of the five highest-ranking leaders in the gang. Also, for a period of time, Boney held the leadership rank of vice president, which meant that he gave orders to other AC members and disciplined members who were not following the gang’s directives, among other things.
Prior to October 2016, AC members learned that another member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Martin ordered AC members to attack the former member in order to “X” him, or remove him from the gang, because it violated the AC’s rules to join another organization. AC members, including Martin and Boney, held a “church,” or meeting, at an AC member’s home in the Tyler, Texas, area where they planned the logistics of the assault.
On Oct. 2, 2016, Martin, Boney, and other AC members met at a park near Tyler to carry out the assault. On Martin’s order, Boney and another AC member violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care.
Martin and Boney will be sentenced at a date to be determined.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas made the announcement.
This case is part of a larger investigation into the Aryan Circle by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas are prosecuting the case.
Washington woman sentenced for meth trafficking on Rocky Boy’s Indian Reservation, Great FallsRead the Press Release
GREAT FALLS – A Washington woman who admitted trafficking methamphetamine on the Rocky Boy’s Indian Reservation and in Great Falls was sentenced on March 3 to seven years in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Georgie Elaine Russell, 41, of Spokane, Washington, pleaded guilty on Oct. 22, 2020 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided. Russell was detained.
The government alleged in court documents filed in the case that the Great Falls Police Department learned in January 2020 that Russell was on federal supervised release for a meth conviction in the Eastern District of Washington and was trafficking meth from Washington to the Rocky Boy’s Indian Reservation and Great Falls. During an approved trip to Montana in January 2020, law enforcement made a traffic stop of a vehicle in which Russell was a passenger. The vehicle was impounded, and a search warrant was obtained. Officers found an air-sealed bag that contained approximately 222 grams of meth, or nearly one half pound of meth.
Assistant U.S. Attorney Ethan Plaut prosecuted the case, which was investigated by the Drug Enforcement Administration, Chippewa Cree Law Enforcement Services and Great Falls Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. 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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Utah Resident Pleads Guilty to Federal Charges for $850,000 Mining Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that a Utah man appeared in federal court and pleaded guilty to federal charges for orchestrating an investment scheme involving mining for precious metals. Andrew Malcolm Lovett, 59, a former resident of Cornelius, N.C., currently residing in Utah, pleaded guilty to securities fraud and transactional money laundering before U.S. Magistrate Judge David C. Keesler.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed plea documents and today’s plea hearing, from 2014 to 2016, Lovett executed a financial fraud scheme involving investments in mining projects involving precious metals. During the course of the scheme, Lovett fraudulently obtained nearly $850,000 from more than 30 investors, by inducing victims to invest in Safari Minerals, Inc. (Safari) and other entities with which Lovett was affiliated. To induce victims to invest their money, Lovett falsely told them that their money would be used to grow Safari and to develop various purported mining projects.
According to court records, Lovett described Safari to his investors as “an emerging junior exploration and mining company” that focused on acquiring and developing properties in Nevada which “contains an abundance of … Gold, Silver, Platinum Group Metals and Rare Earth Elements….” Lovett also misled investors by touting his experience as a seasoned businessman with a wealth of experience in the mining industry. As Lovett admitted in court today, among other things, he lied to investors about the progress and viability of Safari and failed to disclose to investors his diversion of several hundred thousand dollars from Safari for his own personal use.
According to documents filed in court, rather than use the victims’ money to grow Safari’s business as promised, Lovett used a significant portion of the investments to pay for personal expenses like rent, entertainment and travel, and to make Ponzi-style payments to other victim investors.
Following his court appearance, Lovett was released on bond. The securities fraud charge carries a maximum penalty of 20 years in prison and a $1 million fine. The transactional money laundering charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI, FBI, and the USPIS for its investigation of the case.
Assistant United States Attorneys Daniel Ryan and Caryn Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
U.S. Attorney’s Office joins federal partners urging taxpayers to ‘Slam the Scam’Read the Press Release
ST. LOUIS - The United States Attorney’s Office for the Eastern District of Missouri and Social Security Office of the Inspector General want you to know about widespread phone scams where callers impersonate government officials.
The imposters tell you about a Social Security-related problem to gain a taxpayer’s trust and steal their money. “Slam the scam” by immediately hanging up!
The predators may:
- Call to threaten you with arrest or legal action if you do not immediately pay a debt, fine or fee.
- Tell you that your Social Security number has been suspended, offer to increase your benefits or resolve identity theft problems in exchange for payment.
- Demand payment using retail gift cards, prepaid debit cards, wire transfers, internet currency or by mailing cash.
- Demand secrecy in handling a Social Security-related problem or tell you to make up a story to tell your friends, family or store/bank employees.
- Text you unsolicited to tell you about a problem with your Social Security number or benefits.
- Email you attached documents containing your personal information to convince you they are Social Security officials.
Hard-working taxpayers should be cautious if they receive an unsolicited call from the government and don’t recognize the problem or issue they’re calling about.
Tips to help ‘Slam the Scam’ include:
- Don’t provide personally identifiable information over the phone.
- Discuss major financial decisions with trusted friends or family.
- If you ever owe money to Social Security, the agency will mail you a letter with payment options and appeal rights.
Taxpayers should report Social Security scams by clicking onto oig.ssa.gov and other scams by clicking onto ftc.gov/complaint.
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U.S. Attorney’s Office Reminds Public of CDC Eviction Moratorium OrderRead the Press Release
DETROIT – As part of the federal response to the COVID-19 outbreak, the U.S. Attorney’s Office for the Eastern District of Michigan is reminding landlords of their obligations and tenants of their rights under the Centers for Disease Control’s (CDC) Order temporarily halting residential evictions of tenants who meet certain income eligibility requirements and who are unable to pay their full rent. The Order prohibits landlords from evicting such tenants for non-payment of rent through March 31, 2021.
As the Justice Department recently clarified, the decision of the Texas district court in Terkel v. Center for Disease Control does not extend beyond the particular plaintiffs in the case and does not prohibit the application of the CDC’s eviction moratorium to other parties. Accordingly, the CDC’s Order remains in effect.
The CDC’s Order, imposing a Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, aims to mitigate the spread of COVID-19 by enabling people who get sick or who are at risk for severe illness from COVID-19 to protect themselves and others by staying in one place to quarantine. Under the CDC Order, tenants who meet income eligibility requirements (generally, those earning less than $99,000 per year, or $198,000 if filing jointly) and who are unable to pay their full rent due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses, can obtain protection from eviction by providing a sworn declaration regarding their situation to their landlord. Once this declaration is provided, a landlord is prohibited from evicting the tenant while the moratorium remains in effect. Landlords who violate the prohibition on eviction may be subject to substantial penalties, including fines of up to $250,000 and up to a year in jail.
The Order is not intended to prevent landlords from starting eviction proceedings, but rather to stop the actual eviction of a covered person for non-payment of rent. Moreover, the Order does not affect the obligation of tenants to pay rent, nor does it bar the collection of fees, penalties, and interest.
Acting United States Attorney Saima S. Mohsin encourages anyone who has knowledge of a landlord violating the CDC Order to contact the U.S. Attorney’s Office for the Eastern District of Michigan by calling the Civil Rights Hotline at 313.226.9151 or by sending an email to [email protected]. More information on the CDC Order is available here.
Given the gravity of the current public health crisis, tenants covered by the CDC Order should consider taking appropriate steps to obtain legal protection from eviction and landlords are encouraged to consider alternatives to legal action while the CDC moratorium remains in effect. Federal resources are available through the Consumer Financial Protection Bureau to assist landlords with mortgage relief here.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2010 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edmi/programs/civil-rights
U.S. Attorney’s Office Reminds East Texans to Beware of Social Security Scam CallsRead the Press Release
BEAUMONT, Texas – In connection with the Social Security Administration’s March 4th National “Slam the Scam” Day, the United States Attorney’s Office for the Eastern District of Texas reminds the public to be vigilant of Social Security scam calls.
“For the past year, we have seen a steady increase in Social Security-related scam calls,” said Acting U.S. Attorney Nicholas J. Ganjei. “The financial exploitation of older Americans will not be tolerated. We are partnering with the Social Security Administration Office of the Inspector General to spread the word about these scams. We encourage anyone who receives such calls to hang up.”
“We are working with the Department of Justice and law enforcement agencies across the United States to combat Social Security imposter scams—but our best weapon in this fight will always be awareness,” said Inspector General Gail S. Ennis. “I want to thank the many agencies and organizations that have joined us in our effort this year to alert Americans to hang up on suspicious calls, and talk to their family and friends about phone scams.”
Last year, the (SSA-OIG) received over 700,000 reports of Social Security-related telephone scams—with a total of nearly $45 million lost. Victims reported an average loss of $5,800. The scams involve an imposter calling from what appears to be a local or government phone number. Scammers often use robocalls, but they may also have a live person call. They may also follow up with emails or texts to try to convince you they are a government official, and they are investigating you. These scammers will state that the individual’s Social Security Number has been compromised or has already been suspended for fraudulent activity. The caller may even threaten to suspend the account or have the person arrested if they do not take immediate action.
The U.S. Attorney’s Office and SSA-OIG offer the following information about how to spot these scams:
- SSA may call you in some situations, but will NEVER call you and:
- Tell you that your Social Security Number has been suspended or offer to increase your benefits or resolve an identity theft issue for a fee.
- Threaten you with arrest or legal action if you do not immediately pay a debt, fine, or fee.
- Request immediate payment or even accept payment via gift cards, pre-paid debit cards, cash, wire transfers, or internet currency, such as Bitcoin.
- Demand secrecy from you in handling a Social Security-related problem, or tell you to make up a story to tell your friends, family, or store and bank employees.
- If you owe money to Social Security, the agency will generally mail you a letter with payment options and appeal rights.
- SSA will not send you an email with an attachment containing your personal information.
- SSA will only send you emails or text messages when you have subscribed with SSA to receive updates, or as part of SSA’s enhanced security when accessing your personal my Social Security account.
If you receive such a call, hang up immediately. Do not give anyone your personal information such as your Social Security Number, bank account, or credit card numbers. If you receive a voice mail, do not return the call. Report any scams to OIG.SSA.GOV.
Two Men Indicted for Possession of Firearms While Being Unlawfully in the United StatesRead the Press Release
SAN JUAN, Puerto Rico – On March 3, 2021, a federal grand jury returned a one-count indictment charging Jorge Luis Hernández Flores and Martires Andrés Encarnación Castro with possessing firearms while being unlawfully in the United States, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on February 22, 2021 around 1:40 AM, Jorge Luis Hernández Flores fired multiple shots from a gun while he was driving on Avenida Ramal 8 in San Juan. Nearby police intervened and recovered a Glock pistol near the car, and shell casings in the rear seat. Another Glock was found in the car between Jorge Luis Hernández Flores and the passenger, Martires Andrés Encarnación Castro, who had a fanny packing with almost 100 rounds of ammunition.
Neither Jorge Luis Hernández Flores nor Martires Andres Andrés Encarnación was present legally in the United States.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. Homeland Security Investigations is in charge of the investigation. If convicted, the defendants face up to ten years in prison.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Two Fayetteville Residents Arrested on Alien Smuggling for Commercial Advantage, Forced Labor, and Money Laundering ChargesRead the Press Release
RALEIGH, N.C. – Two Fayetteville residents were arrested on charges within an Indictment returned by a federal grand jury and relating to violations of conspiracy to smuggle, transport and harbor aliens for commercial advantage or private financial gain, conspiracy to commit forced labor, and money laundering.
According to the forty-two (42) count indictment, Martha Zelaya-Mejia, age 37, a permanent resident of the United States, born in Honduras, and David Darnell Whitehead, age 42, a United States citizen, conspired with others to smuggle four Honduran females and their minor children from Honduras, through Mexico into the United States for commercial advantage and private financial gain. Once the Honduran females were in the U.S. Zelaya-Mejia, Whitehead and others transported, harbored, and placed them into the residence of an individual residing in Willard, North Carolina in order to obtain the labor and services by means of force, threat, physical restraint, or threats of physical restraint to the Honduran females.
On August 9, 2019, the Pender County Sheriff’s Office responded to a 911 call from one of the Honduran females that was placed at the Willard residence stating that she was not free to leave and was being held against her will, and tased by the owner of the residence.
In order to smuggle the females into the U.S. Zelaya-Mejia, Whitehead and others involved in the conspiracy transmitted thousands of dollars in various wire transfers from locations in the Eastern District of North Carolina to Honduras, Mexico and areas located on the US – Mexican border to smugglers.
If convicted of conspiracy to smuggle, transport, and conceal aliens, Zelaya-Mejia, and Whitehead face up to a maximum imprisonment of 10 years per count, a $250,000 fine, and a term of supervised release following any term of imprisonment. If convicted of conspiracy and forced labor, they face up to a maximum imprisonment of 20 years imprisonment, $250,000 fine and a term of supervised release following any term of imprisonment. If convicted of conspiracy and money laundering, they face up to a maximum term of 20 years imprisonment, $500,000 fine and a term of supervised release following any term of imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina said, “Human smugglers, time and time again, prove the they have little regard for human life. Travelling from Honduras through Mexico into the US with small children, poses immense dangers from smugglers, gangs, and cartels that are only interested in their personal financial gain. This office will continue to aggressively prosecute those organizations that are operating in the Eastern District and deter criminals that choose to take advantage of those that are most vulnerable.”
“The arrests will bring an end to the reign of terror that these two predators inflicted on their victims. Human smuggling is akin to modern day slavery and the perpetrators of this evil do tremendous physical and mental damage to their victims,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. "Having these two off the street is a small step in making this country safer and we will continue our relentless pursuit of any and all who would choose to follow in their path.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with Homeland Security Investigations, Pender County Sheriff’s Office, and the Cumberland County Sheriff’s Office Organized Crime Unit are investigating the case and Assistant U.S. Attorney Gabriel Diaz is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:20-CR-191.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Three Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that CHRISTOPHER BLACKSTONE (“BLACKSTONE”), JOSEPH CAMPO (“CAMPO”), and MARIO DELUCA (“DELUCA”) have each pled guilty in federal court relating to their roles in a health care fraud conspiracy.
BLACKSTONE, age 43, a resident of Baton Rouge, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Lance M. Africk to Count One of a Bill of Information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
CAMPO, age 78, a resident of New Orleans, Louisiana, pled guilty on February 25, 2021 before U.S. District Judge Susie Morgan to Count One of a Bill of Information charging him with conspiracy to commit health care fraud and money laundering, in violation of Title 18, United States Code, Section 371.
DELUCA, age 37, a resident of Metairie, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Jane Triche Milazzo to Count One of a Bill of Information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
According to the charging documents, CAMPO was a licensed pharmacist in the State of Louisiana and worked as the Pharmacist-in-Charge (“PIC”) at Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana. BLACKSTONE served as the owner of Prime and DELUCA served as the Information Technology (“IT”) Director.
Between 2014 and 2016, Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families.
BLACKSTONE, CAMPO, DELUCA, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications.
“Individuals involved in this scheme illegally bilked TRICARE out of close to $15 million and I am pleased that the U.S. Attorney’s Office is requiring justice,” said Special Agent in Charge Cynthia Bruce, Defense Criminal Investigative Service, Southeast Field Office. “There are no victimless crimes and DCIS agents will continue to pursue unscrupulous greedy individuals who steal from our military health care system and all taxpayers.”
The Court set sentencing of BLACKSTONE and DELUCA for August 11, 2021 and CAMPO for August 19, 2021. CAMPO faces a maximum term of imprisonment of five (5) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, a $100 special assessment fee and restitution in the amount of $3,015,579.17 to be paid to TRICARE. BLACKSTONE and DELUCA face a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee. BLACKSTONE has agreed to pay restitution in the amount of $10,689,005 to TRICARE, and DELUCA has agreed to pay restitution in the amount of $777,749.20 to TRICARE.
U.S. Attorney Evans praised the work of the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.
Three Members of Extensive Mail Theft Ring Face Federal ChargesRead the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed today in federal court following the arrest of two of the three defendants charged with mail theft, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.
Haleem Cornelius Gilliland, 23, of Charlotte, North Carolina, Shemar Isaiah Walker, 20, of, Atlanta, Georgia, and Daron Quashawn Wright, 20, of Shelby, North Carolina, are each charged with conspiracy to commit mail theft. Gilliland is also charged with wire fraud and aggravated identity theft. Law enforcement apprehended Gilliland and Walker on March 3, 2021. Wright has not been arrested yet.
According to allegations in the indictment, between November 2019 and February 2020, Gilliland, Walker, Wright and other co-conspirators stole and took letters, postal cards, packages, bags, and other mail (collectively, mail) from the mailboxes of at least nine apartment complexes in North and South Carolina. As alleged in the indictment, Gilliland and other co-conspirators used the stolen mail, including stolen driver’s licenses and stolen credit cards, to pay for car rentals, hotel rooms, and to pay for other personal expenditures.
Gilliland and Walker are currently in custody. The charge of conspiracy to commit mail theft carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a mandatory term of two years in prison, to be served consecutively to any other term of imprisonment imposed, and a $250,000 fine.
The charges contained in the indictment are allegations. The defendants are presumed innocent until and unless proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the USPIS for their investigation which led to the charges.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Three Lewistown family members sentenced to prison for trafficking methamphetamineRead the Press Release
GREAT FALLS – Three members of a Lewistown family were sentenced today for their roles in a methamphetamine trafficking scheme in which meth was sent from California to Lewistown for distribution, Acting U.S. Attorney Leif Johnson said.
Kathleen Elizabeth Francis, 54, of Lewistown, was sentenced to 42 months in prison and four years of supervised release. Francis’ daughter, Amber Rachelle Carr, 36, of Lewistown, was sentenced to 20 months in prison and four years of supervised release. Francis’ mother, Shirley Ann Adcock, 73, of Springfield, Michigan, formerly of California, was sentenced to eight months in prison and three years of supervised release. Francis and Adcock pleaded guilty to possession with intent to distribute meth, while Carr pleaded guilty to conspiracy to possess with intent to distribute meth. All three defendants pleaded guilty on Nov. 10, 2020.
Chief U.S. District Judge Brian M. Morris presided and ordered the defendants to self-report to prison.
In court documents filed in the case, the government alleged that in May 2019, the Lewistown Police Department learned that Francis was receiving packages of meth in the mail from the Bakersfield area in California. The investigation determined that Francis received delivery on two to three parcels per month. When a suspect package arrived addressed to Francis on September 2019 at the Lewistown Post Office, officers obtained a federal search warrant for the package and found it contained about 15 grams of meth. The package was delivered, officers executed a search warrant of Francis’ residence and arrested Francis. While officers were at the home, Carr arrived and was detained.
Carr admitted she had drugs sent to her mother’s house and said that the meth was shipped by Adcock, her grandmother, from California. Francis admitted she was using meth and allowed meth to be shipped to her home in exchange for Carr giving her meth to use. Adcock admitted to mailing the intercepted package, to mailing packages of meth to Francis on two or three prior occasions and to receiving money orders or money transfers for payment of the drugs.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the U.S. Postal Service, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Lewistown Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. 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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Three Essex County Men Admit Conspiring to Defraud Banks of over $250,000 Using Credit Cards and Blank Checks Stolen from MailRead the Press Release
NEWARK, N.J. – Three Essex County, New Jersey, men admitted conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced today.
Alexander Varice, 22, and Dashawn Duncan, 27, both of South Orange, New Jersey, and Nasheed Jackson, 24, of Newark; of South Orange, New Jersey, pleaded guilty this week by videoconference before U.S. District Judge Susan D. Wigenton to informations charging each of them with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Varice, Jackson, and Duncan engaged in a scheme to use stolen credit cards or checks to fraudulently make purchases and withdraw money from two banks. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey, and never reached the intended cardholders. After obtaining the stolen cards, Varice, Jackson, and Duncan used them to make unauthorized purchases at various retail stores and to withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. The blank checks were also stolen from various New Jersey-based post office facilities, and never reached their intended recipients. Varice and Jackson altered the date, payee, and amount of the stolen checks prior to deposit into a third-party account so that they could manually enter the amounts that they wanted to fraudulently withdraw from a victim bank ATM.
The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled as follows: Varice, July 13, 2021; Jackson, July 14, 2021; and Duncan, July 19, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. States Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Texarkana Man Sentenced to 70 Months in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Gerson Eduardo Magana, 25, of Texarkana, Arkansas, was sentenced today to 70 months in federal prison, followed by five years of supervised release, for the Distribution of more than 50 grams or more of pure methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, in the United States District Court’s Texarkana Division.
According to court records, the Federal Bureau of Investigation (FBI) and the Bi-State Narcotics Task Force conducted a controlled purchase of methamphetamine from Magana in June of 2018. The substance purchased from Magana was submitted to the Arkansas State Crime Laboratory, which found it to contain at least 70.8 grams of pure methamphetamine.
Magana was indicted by a federal grand jury in June of 2019 and entered a guilty plea in October of 2019.
This case was investigated by the FBI and the Bi-State Narcotics Drug Task Force. Assistant United States Attorney Graham Jones prosecuted the case for the Western District of Arkansas.
Talladega County Man Sentenced for Possession of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a Childersburg man yesterday for possession of child pornography, announced United States Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge R. David Proctor sentenced Seth Thompson, 41, to 168 months in prison followed by 240 months supervised release. In September 2020, Thompson pleaded guilty to possession of child pornography. This conviction will require him to register as a sex offender.
“Children are the most vulnerable victims and my Office will do everything in our power to prosecute criminals who victimize our children through the internet, videos, or photos,” U.S. Attorney Escalona said.
“I am pleased with the sentence handed down today that now holds Thompson accountable for these sickening crimes,” SAC Sharp said. “I encourage anyone who may have information about possible child sexual exploitation, including posts on social media, to report it to the National Center for Missing and Exploited Children (NCMEC) at CyberTipline.org or by calling 1-800-THE-LOST. This case emphasizes the importance of concerned citizens making those reports.”
According to the plea agreement, law enforcement received Cyber-Tips from the National Center for Missing and Exploited Children ("NCMEC") that images of child pornography had been uploaded to certain Facebook and Google accounts registered to Thompson. Thompson was located and arrested by Childersburg police on unrelated charges, and a federal search warrant was obtained for Thompson’s cell phones. During a forensic review of Thompson’s cell phones, a total of 153 images and 69 videos of children being sexually exploited were identified. Thompson admitted he had seen images of child pornography and that he had received certain images and videos in a Kik group.
The FBI investigated the case, along with Alabama Law Enforcement Agency and with the assistance of Childersburg Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Croix Man Sentenced to a Total of 15 Years in Prison for His Murder-for-Hire Plot and for Attempted Retaliation against a WitnessRead the Press Release
St. Croix, USVI – The United States Attorney, Gretchen C.F. Shappert announced today that on Wednesday, March 3, 2021, Chief Judge Wilma Lewis sentenced Delroy Thomas, 30, of St. Croix, to 120 months in prison, a $3,000 fine, three years of supervised release and a $100 special assessment for the federal charge of murder for hire. Judge Lewis also sentenced Thomas to five years on the Virgin Islands local charge of attempted retaliation against a witness, to run consecutive to the federal sentence.
According to the evidence presented at a July 2019 trial, between March 9, 2015 to March 11, 2015, Thomas made a series of telephone calls, while in Golden Grove Correctional Facility, to another inmate. He solicited the inmate’s assistance to eliminate two witnesses in his pending Superior Court case. Thomas described the location of the witnesses’ residence to the inmate and texted their photographs to the other inmate. He told the inmate that he wanted them “off”; that he was dead serious; that he would get the gun (to commit the murders of the witnesses); that this was the result of Thomas’s eight months of thinking; and that there were no ifs, ands, buts or changing of his mind.
Thomas discussed the price for the planned “hit” and directed a female to place $500.00 into a particular vehicle, intending that the money would serve as a down payment for the planned murders. He also admitted that if the inmate did not carry out the hit, he (Thomas) would find someone else to commit the crimes. Unbeknownst to Thomas, the inmate with whom Thomas was communicating was a confidential informant for the Drug Enforcement Administration, which recorded the phone calls. One of the witnesses at trial identified Thomas’s voice on the calls.
Post arrest, Thomas told agents that he may have discussed eliminating witnesses in his case with other inmates when he was angry, but he denied that there was any murder for hire plot. Thomas testified at his trial that he did make the recorded statements in the jail calls, but that was merely “going along” with a scheme by the inmate, who had threatened him into participating in the calls. Thomas claimed that the calls were rehearsed, and that he simply followed the plan.
The Government, however, presented evidence of text messages Thomas sent to other individuals, before the phone calls, stating in substance that Thomas was planning a massacre and that if officials did not let him out of prison, he would put a hit on the witness and her mother.
On March 12, 2015, Bureau of Corrections officers searched Thomas’s prison cell and seized three cellular telephones and a knife from a chase accessible from his cell.
This case was investigated by the Drug Enforcement Administration, the Virgin Islands Police Department and the Gang Intelligence Search Team of the V.I. Bureau of Corrections. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
St. Croix Man Sentenced to 14 Months for Cocaine Possession ConvictionRead the Press Release
St. Thomas, USVI – Malachi Benjamin, 25, was sentenced to 14 months and 10 days by District Judge Robert A. Molloy on his conviction of possession with intent to distribute cocaine, United States Attorney Gretchen Shappert announced today. Judge Molloy also sentenced Benjamin to three years of supervised release and $100 special assessment.
According to court records, on June 14, 2018, Virgin Islands Police Department (“VIPD”) officers conducted a traffic stop of a vehicle operated by Glenn David with Benjamin in the front passenger seat. After the traffic stop, officers approached Benjamin to advise him that he was a person of interest in recent double homicide on St. Croix, and Benjamin responded by immediately fleeing the scene on foot. After Benjamin fled the scene, David, the driver and owner of the vehicle, granted the officers permission to search his vehicle.
A forensic team of VIPD officers later recovered three pre-packaged baggies of suspected cocaine hidden inside of a Pepperidge Farm container. The suspected cocaine was recovered from the passenger side floor of the vehicle where Benjamin had been seated.
A field test conducted on the suspected cocaine yielded a positive result. The forensic team also collected buccal swaps from the cocaine baggies that were hidden inside of the Pepperidge Farm container for DNA analysis. When compared with DNA previously collected from Benjamin, a DNA laboratory confirmed that Benjamin was the source of DNA collected from the cocaine wrappings.
Benjamin is also charged in the Virgin Islands Superior Court with unlawful firearm possession charges, and in the U.S. District Court with drugs and firearms conspiracy charges.
This case was investigated by Drug Enforcement Administration and the Virgin Islands Police Department.
Smith County Woman Sentenced for Methamphetamine TraffickingRead the Press Release
TYLER, Texas – A Tyler, Texas woman was sentenced to prison today for a federal drug trafficking crime in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Alexa Leigh Brown, 51, pleaded guilty on Sep. 8, 2020, to possession with intent to distribute methamphetamine and was sentenced to 71 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“The illegal drug trade brings with it violence, property crime, and severe health risks,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are committed to aggressively investigating and prosecuting those who would harm our communities.”
According to information presented in court, beginning in April 2019, Brown sold more than 165 grams of methamphetamine to a confidential informant over five separate occasions. On August 26, 2019, Brown was arrested following the execution of a search warrant at her residence in Tyler, which resulted in the seizure of additional quantities of methamphetamine and firearms. Brown and eight other co-conspirators were indicted by a federal grand jury on Jan. 15, 2020, and charged with violations of federal drug trafficking and firearms laws.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Smith County Sheriff’s Office; and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.
Sioux Falls Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on March 1, 2021, by U.S. District Judge Karen E. Schreier.
Samantha Kay Hill, a/k/a Samantha Kay Rieger, age 33, was sentenced to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hill was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 20, 2020. She pled guilty on December 7, 2020.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately July 20, 2020.
On October 12, 2019, a vehicle Hill was driving, for the purposes of transporting methamphetamine, was stopped and searched by law enforcement. Inside the vehicle, law enforcement located over 50 grams of actual methamphetamine.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Hill was immediately turned over to the custody of the U.S. Marshals Service.
Rogers County Mother Charged with Production of Child PornographyRead the Press Release
A 29-year-old Claremore woman has been indicted in federal court for producing child pornography involving her young child, announced Acting U.S. Attorney Clint Johnson.
Brittney Jo Wallace was charged with production of child pornography by a parent and with possession of child pornography. The Court ordered Wallace detained pending trial.
“This Office seeks justice for victims, period. The allegations against Brittney Wallace are heartbreaking, and I have confidence that Assistant U.S. Attorney Tilli Villalobos will fight for this young child and hold the defendant accountable under the law,” said Acting U.S. Attorney Clint Johnson. “I appreciate the dedicated work of the OSBI Internet Crimes Against Children Unit and Tulsa’s Homeland Security Investigations Child Exploitation Task Force who led this investigation and their commitment to protecting Oklahoma’s children.”
“We are thankful to work with our state and federal partners on behalf of the children of Oklahoma,” said Oklahoma State Bureau of Investigation Director Ricky Adams. “Through our collaborative efforts at the local, state and federal levels, we will do all we can to protect our children and take child sexual predators off the streets.”
According to the indictment, Wallace knowingly permitted the young child to engage in sexually explicit activity while she took photos on her cell phone on Sept. 26, 2015. From Sept. 26 to May 13, 2016, Wallace also knowingly possessed with intent to view the child pornography.
At a detention hearing on March 2, Assistant U.S. Attorney Matilda Villalobos argued the defendant was a danger to the community and should be detained based on her criminal record and evidence she abused her children in 2015 and 2016. AUSA Villalobos stated evidence would show that in 2016, the defendant’s children were taken from the home after a doctor found signs of severe child abuse. Wallace’s parental rights were later terminated. The Court ruled in favor of the United States and ordered the defendant detained.
During the 2016 investigation conducted by the State, authorities seized the defendant’s phone which was later suppressed. Recently, the Oklahoma Court of Criminal Appeals found the seizure and subsequent search of her phone were proper, and it was turned over to investigators. When authorities conducted a forensic examination of the phone, they discovered the alleged child pornography.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On March 1, 2021, the U.S. Marshal Service arrested Wallace on a federal arrest warrant. The Oklahoma State Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Rogers County Sheriff’s Office, and Claremore Police Department conducted the investigation.
Assistant U.S. Attorney Matilda Villalobos is prosecuting the case. AUSA Villalobos is a prosecutor from the District of New Mexico. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress.
If you suspect a child is being sexually exploited, contact the National Center for Missing and Exploited Children immediately at 1-800-THE-LOST or cybertipline.org. You can also contact the OSBI ICAC Unit at (800) 522-8017 or [email protected].
Robert and Todd Morgan, Two Others, Charged with Wide-Ranging Mortgage and insurance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 104-count indictment charging Robert Morgan, Todd Morgan, Frank Giacobbe, and Michael Tremiti, with conspiracy to commit wire fraud and bank fraud for their roles in a wide-ranging mortgage fraud scheme. The defendants each face charges of wire and bank fraud. Robert and Todd Morgan are also charged with defrauding insurance companies. The charges carry a maximum penalty of 30 years in prison and a fine in the amount of double the loss caused by the crimes.
“Upon executing search warrants in this case, my Office, together with our law enforcement partners, acted quickly to take action in an effort to try to limit the amount of damage occasioned by the defendants’ alleged widespread fraud,” noted United States Attorney Kennedy. “While that effort succeeded in that objective, the unfortunate truth is that the swiftness with which we moved may have also contributed to the reasons for which the original indictment in this case was dismissed by the Court. In the end, however, this new indictment now ensures that the defendants will be held to answer for the serious crimes alleged therein.”
Assistant U.S. Attorneys Elizabeth R. Moellering and Douglas A.C. Penrose, who are handling the case, stated that according to the indictment, between 2007 and January 2019, the defendants conspired with Kevin Morgan, Patrick Ogiony, Scott Cresswell, and others fraudulently to obtain funds from financial institutions such as Arbor Commercial Mortgage, LLC, Berkadia Commercial Mortgage, LLC, UBS and Deutsche Bank, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae).
During the course of the conspiracy, the defendants engaged in a scheme to defraud financial institutions and government sponsored enterprises by providing false information to lenders in support of applications for mortgage loans to purchase properties, refinance properties or build properties. As part of the applications for mortgage loans, the defendants submitted inflated and false rent rolls which included non-existent tenants and inflated rents to fraudulently increase the income for a building in order to justify a loan amount that they would not otherwise qualify for. Similarly, in order to further inflate the income, defendants told lenders they were receiving fake fees, such as stating that residents paid for cable when it was actually included in the rent. Defendants also fraudulently reduced and improperly capitalized expenses in order to make the property appear to generate more income to, again, justify a larger mortgage loan than they would otherwise qualify for.
The defendants took steps to conceal the fraud from the lenders, including by making vacant units appear occupied during inspections by turning radios on in vacant units, by placing welcome mats and shoes in hallways outside vacant units, and by paying individuals to pretend to be tenants in units the inspectors would enter.
In the wire fraud conspiracy to defraud insurers, Todd Morgan and Robert Morgan are accused of conspiring with Kevin Morgan and Scott Cresswell to present false and inflated contracts and invoices to insurance companies for repairs after damages to properties in Robert Morgan’s real estate portfolio.
While the loans which were the subject of defendants’ alleged fraudulent conduct exceeded $400 million in value, the total loss sustained by financial institutions and government sponsored enterprises throughout the mortgage fraud scheme is currently estimated to exceed $9,500,000. The loss resulting from the insurance fraud scheme is currently estimated at approximately $3,000,000.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder and were released on conditions.
Defendants Kevin Morgan and Patrick Ogiony were previously convicted of conspiracy to commit bank fraud, and defendant Scott Cresswell was previously convicted of conspiracy to commit wire fraud for their roles in the multi-million dollar fraud scheme. All three defendants are awaiting sentencing.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Roanoke Man Sentenced on Child Enticement, Child Pornography ChargesRead the Press Release
ROANOKE, Va. - A Roanoke man, who used an online chat website to engage in sexually explicit conversations with a 12-year-old child and later induced the victim to engage in sexually explicit conduct over video chat, was sentenced today in U.S. District Court here to 150 months in federal prison to be followed by 10 years of supervised release, Acting United States Attorney Daniel P. Bubar announced.
Roger Allen Bellini, 31, pleaded guilty in 2020 to one count of coercion and enticement of a minor and one count of possession of child pornography.
“As this case demonstrates, online predators are all too real and willing to prey upon our children using computers,” Acting U.S. Attorney Bubar stated today. “We hope that today’s sentence continues the healing process for the victim in this case and reinforces the need for continued vigilance as we spend increasing portions of our lives online.”
According to court documents, Department of Homeland Security (DHS) Homeland Security Investigations (HIS) learned that Bellini used an online messaging service to send and receive child pornography. Forensic review of his devices showed that Bellini possessed dozens of videos and hundreds of images of child pornography. HSI agents interviewed Bellini, who admitted to possessing child pornography. Bellini also admitted to using a video chat website to engage in sexually explicit communications with children. Specifically, Bellini admitted to communicating with a 12-year old child and used screen capture software to record his computer screen while he engaged in video chats with the minor. In these video chats, Bellini exposed his genitals and induced the minor to engage in sexually explicit conduct.
The investigation of the case was conducted by Department of Homeland Security- Homeland Security Investigations. Department of Justice Trial Attorney Leslie Fisher, Trial Attorney Eduardo Palomo, and Assistant United States Attorney Rachel Swartz prosecuted the case for the United States.
Raymond Man Convicted for Attempted Possession of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Nathaniel Walker, 33, of Raymond, Nebraska, was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for attempted possession of child pornography. Walker was sentenced to 11 years in prison and 10 years of supervised release. There is no parole in the federal system. Walker was additionally ordered to pay $9,000 in restitution.
This case began when Kik flagged a September 29, 2018 conversation in which Walker and other Kik users discussed an interest in child pornography and Walker shared a link to a Dropbox folder which contained child pornography material. On March 2, 2019, Homeland Security Investigations conducted a knock and talk with Walker at his residence. Walker admitted he used Kik about three times a week at night to seek out child pornography. Walker also admitted that he would share links during Kik chats which he knew contained child pornography, but that he did not own the Dropbox accounts. He indicated that he shared these links in the hopes of receiving new links from other individuals on Kik. Walker had previously been convicted in 2012 of attempted possession of child pornography in Lancaster County.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations.
Public Warning: Please Report Scam CallsRead the Press Release
JEFFERSON CITY, Mo. – It has come to our attention that a number of residents in various parts of the state have received scam calls that falsely claimed to be from the U.S. Attorney’s Office in Jefferson City, Mo. In some instances, the caller claimed to be with Cyber Crimes and said they (the receiver of the call) had a phone that was identified as a phone used in a cyber crime.
The public should be on the alert for such calls, and aware that the U.S. Attorney’s Office does not contact the public in this manner. If you receive such a call, please contact the FBI at 816-512-8200.
Phoenix Man Sentenced to 15 Years for Planning to Release Stolen Radiological Materials in Scottsdale and PaysonRead the Press Release
PHOENIX, Ariz. – Jared Trent Atkins, 27, of Phoenix, Arizona, was sentenced today by U.S. District Judge John J. Tuchi to 15 years in prison, followed by twelve years of supervised release. Atkins previously pleaded guilty to attempted use of a weapon of mass destruction.
In the early morning hours of April 28, 2019, Atkins entered a gas station in Phoenix, Arizona, and stabbed the night clerk working inside. Atkins then fled the gas station and drove to his place of employment, where he stole three radiological devices containing Iridium-192 along with the tools to open the devices and expose the radiological material. Approximately one hour after the stabbing and theft, Atkins set fire to a vehicle at a Mesa car dealership.
Atkins texted his co-workers to inform them he had the radiological devices. He warned his co-workers to stay home until the devices were found. Security footage from Scottsdale Fashion Square Mall shows Atkins driving on Camelback Road adjacent to the Mall. Atkins later told the Federal Bureau of Investigation (FBI) he intended to have a “last stand” and considered conducting it at the Mall.
Atkins then drove to Mt. Ord in the Payson area and called his family to say goodbye. Atkins opened one of the radiological devices. Atkins planned to commit suicide by irradiation, knowing he would harm anyone who tried to stop or arrest him. For unknown reasons, however, Atkins closed the radiological device and returned to Phoenix.
Later the same morning, Atkins drove back to his apartment, with the radiological devices and the bloody knife he used to stab the gas station clerk. The Phoenix Police Department and FBI agents responded to the scene, but Atkins barricaded himself inside his apartment. After roughly two hours of a standoff and working with a negotiator, Atkins agreed to surrender and was taken into custody without further incident. Law enforcement safely recovered all three radiological devices, including all stolen radiological material, from Atkins’s vehicle.
On April 28, 2019, Atkins was arrested on state charges in Maricopa County. He subsequently pleaded guilty to Aggravated Assault and Arson of Property, and was sentenced to three and a half years in prison. Atkins’s federal sentence will run consecutive to his state sentence.
“Today’s sentence sends a powerful message of deterrence to would-be criminal actors who plan to weaponize industrial technologies,” said Acting United States Attorney Anthony Martin. “As was done in this case, we stand ready to work alongside our federal and state partners to respond quickly to any threats to public safety.”
“This case is a prime example of how the FBI and our partners come together to keep our communities safe,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “From beginning to end, this investigation was truly a team effort. I commend the FBI’s Joint Terrorism Task Force and the Phoenix Police Department, which did significant work on this investigation from the day of the incident, to the weeks, and months that followed. I also commend the Phoenix Stabilization Task Force members, who played an important role in this case by finding and successfully securing the radiological material.”
The FBI Joint Terrorism Task Force and the Phoenix Police Department investigated the case, with support and assistance from the FBI Phoenix Stabilization Task Force, Laboratory, and Intelligence Analysts.
This case was prosecuted by Assistant U.S. Attorney Kristen Brook of the District of Arizona, and Celeste Corlette and Jason Denney of the National Security Division’s Counterterrorism Section.
CASE NUMBER: CR-20-00344-PHX-JTT
RELEASE NUMBER: 2021-112_Atkins# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Philadelphia Woman Sentenced to Three Years in Prison for Firearms TraffickingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Elena Ramirez, 34, of Philadelphia, PA, was sentenced to three years in prison and three years of supervised release by United States District Court Judge Gene E.K. Pratter, for trafficking weapons and ammunition as part of her family’s firearms trafficking ‘business’ in Philadelphia.
In November 2020, the defendant pleaded guilty to conspiracy to deal in firearms without a license, dealing in firearms without a license, and possession of a machinegun and a non-registered machinegun, arising from a series of purchases made during the course of an undercover law enforcement operation. In January 2019, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) purchased a total of 19 machinegun conversion devices, two privately made firearms (“PMFs”), two rifles, and more than one hundred rounds of ammunition over four separate transactions from Ramirez. The defendant provided the inventory for these transactions and received the net-profits from the sales, which were brokered through a co-defendant, Matthew “Montana” Stephens, who received a percentage of each sale as a fee.
In 2019, the defendant’s brother, Mario Ramirez, was indicted for selling firearms, ammunition and machinegun conversion devices, also with the help of Stephens, and is awaiting sentencing. Thus, despite having personal knowledge of the legal consequences of engaging in firearms trafficking, Elena Ramirez stepped into her brother’s role and continued to supply weapons for sale.
“Elena Ramirez threatened the safety of our communities by illegally selling firearms on the street,” said Acting U.S. Attorney Williams. “Even after witnessing her brother’s arrest and conviction for the exact same crimes, this defendant chose to follow in his footsteps and will now spend years in prison. Thanks to the steady, determined efforts of investigators at the ATF, the Ramirez family business is closed.”
“Federal law requires gun dealers to obtain a license and to conduct background checks on their customers,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “These laws are in place to prevent guns from falling into the hands of dangerous people. When a person circumvents the license-and-background-check framework by engaging in the business of unlicensed dealing, that person increases the threat to public safety. ATF, along with our local, state and federal partners, are committed to countering that public safety threat as a part of its broader strategy to combat violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Philadelphia Armed Robber Sentenced to 30 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Hughes, 32, of Philadelphia, PA, was sentenced to 30 years in prison, five years of supervised release and ordered to pay restitution to his victims by United States District Court Judge Cynthia M. Rufe, for two armed robberies in which two victims were shot in the leg in August 2016.
In January 2020, a jury convicted Hughes of all charges against him: two counts of robbery which interferes with interstate commerce (known as Hobbs Act robbery), and two counts of using, carrying, bradishing, and discharging a firearm during and in relation to a crime of violence. The charges stem from Hughes’s participation in an armed robbery and shooting, along with co-defendant Nashadeem Henderson, of a marijuana dealer in the area of 2600 Allegheny Avenue in Philadelphia; and an armed robbery and shooting of a pizza deliveryman employed by Mimmo’s Pizza in the area of 3000 North Taney Street in Philadelphia. Henderson pleaded guilty prior to the trial and was sentenced to 18 years in prison for his role in the crimes.
“Michael Hughes acted with complete disregard for the lives of his victims, shooting indiscriminately in an effort to score some quick cash,” said Acting U.S. Attorney Williams. “Philadelphia is in the midst of a public safety crisis, with alarming rates of homicides and shootings. Our Office is doing everything it can to investigate and aggressively prosecute violent crimes like those committed by this defendant.”
“Michael Hughes took part in two violent armed robberies in one week, which saw two victims shot and seriously wounded,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Anyone who thinks they can make their money this way, anyone who thinks they can carry out this kind of crime with impunity, should take a good hard look at the 30-year sentence just handed down to Mr. Hughes. The FBI and our partners are committed to combating the violence scarring so many lives in Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and Roberta Benjamin.
Pharmacist Sentenced to More Than 14 Years in Federal Prison for a Drug Distribution Conspiracy and for Murder for HireRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced David Robinson, age 51, of Baltimore, Maryland, to 171 months in federal prison, followed by three years of supervised release, for the federal charges of conspiracy to distribute oxycodone and alprazolam and for murder for hire. Robinson, formerly a licensed pharmacist who owned and operated the Frankford Family Pharmacy, located in the 5400 block of Sinclair Lane in Baltimore pleaded guilty on October 10, 2018, to a federal drug conspiracy involving the distribution of oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose. On December 17, 2020, Robinson pleaded guilty to a federal charge of murder for hire, admitting that he ordered a “hit” on the person he believed had cooperated with law enforcement that led to his indictment on those charges. Robinson’s pharmacist license was suspended on August 7, 2017.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Commissioner Michael Harrison of the Baltimore Police Department; and Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services.
“Pharmacists who divert pharmaceutical drugs for illegal purposes further the tragic cycle of addiction and the epidemic of opioid overdose deaths,” said Acting U.S. Attorney Jonathan F. Lenzner. “David Robinson not only betrayed the trust placed in him by diverting drugs in order to line his own pockets, he then attempted to have the person killed whom he believed had reported his abuses. We have zero tolerance for any effort to intimidate or retaliate against witnesses.”
According to Robinson’s plea agreement for the drug distribution conspiracy, a confidential source (CS-1) advised law enforcement that the pharmacist at Frankford Family Pharmacy knowingly filled fraudulent prescriptions for alprazolam and oxycodone at the pharmacy. During the DEA’s investigation, between January and July 2016, the confidential source made a number of controlled purchases from Robinson at the pharmacy, using blank prescriptions provided to the source by DEA. Robinson knew that the prescriptions were fraudulent because he told the confidential source what name to use on the prescriptions and what quantity of oxycodone tablets to write on the prescriptions. Robinson also told the source to include non-controlled medications on the same prescriptions in order to evade law enforcement. Between April 2015 and June 2017, Robinson fraudulently distributed approximately 12,330 units of alprazolam and 10,000 milligrams of oxycodone.
On June 22, 2017, a federal grand jury in Maryland indicted Robinson for a drug conspiracy involving the distribution of oxycodone and alprazolam. Robinson was arrested on June 27, 2017 and was released from custody on June 29, 2017, under the supervision of U.S. Pretrial Services. On October 10, 2018, Robinson pled guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone and alprazolam and one count of distribution and possession with intent to distribute oxycodone and alprazolam. Robinson was allowed to continue on conditions of release until his sentencing, scheduled for February 15, 2019.
DEA investigators also learned that during Robinson’s tenure as a pharmacist working the night shift at a pharmacy in Waldorf, Maryland, Robinson also filled fraudulent prescriptions for oxycodone. Robinson admitted that he wrote prescriptions using the names of prominent athletes provided to him as the purported patients. Between September and December 2015, Robinson admitted that he dispensed at least 85,500 milligrams of oxycodone outside the scope of professional practice and not for a legitimate medical purpose.
On October 27, 2018, Baltimore City’s Citi-Watch camera system captured a drug transaction, which led to the arrest of an individual, CS-2. A search of CS-2’s vehicle resulted in the recovery of two shoeboxes containing a total of 35 stock pharmacy bottles of the prescription medications promethazine and clonidine.
CS-2 had obtained the prescription medications from David Robinson. CS-2 had known Robinson for approximately three years, and had previously purchased oxycodone, Xanax, clonidine, and promethazine from Robinson at the Frankford Family Pharmacy. After the search warrant was executed at Robinson’s pharmacy on June 27, 2017, Robinson began providing CS-2 with boxes of medications in exchange for cash without requiring a prescription. Robinson continued to sell promethazine and clonidine and six months after the raid, Robinson was still ordering pills from his vendors.
As detailed in his plea agreement for the murder for hire, following his arrest in 2017, Robinson told CS-2 about an individual that Robinson believed had cooperated with law enforcement and led to his arrest (i.e., CS-1). CS-2 and Robinson had a discussion about CS-1 being killed. After some time, the two agreed to have CS-1 killed. Robinson provided CS-2 with some information about CS-1. CS-2 told Robinson that he/she knew someone that could do a “hit” on CS-1. CS-2 told Robinson that the fee would be $5,000 up front and $5,000 when CS-l was killed.
Robinson admitted that from December 13, 2018 through February 7, 2019, CS-2 made three controlled purchases of drugs from Robinson, at the direction of law enforcement, using cash provided by DEA agents. CS-2 purchased a total of 118 stock pharmacy bottles of clonidine, each containing 100 tablets; and 24 stock pharmacy bottles of 50 mg promethazine tablets, with each bottle containing 100 tablets. Robinson did not request, nor did CS-2 provide, a prescription for any of the drugs.
During a controlled purchase on January 24, 2019, CS-2 and Robinson discussed the murder of CS-1 (which was audio-recorded). During this conversation, they discussed a $5,000 fee that had already been paid to the hitman, and that an associate of the hitman had information about the location of CS-1. The associate wanted an additional $3,000 to be paid to him/her in order to provide CS-1’s location to the hitman. Robinson was upset over this additional fee required to identify the location and accomplish the murder of CS-1 and did not agree to pay the additional fee. On February 4, 2019, CS-2 sent a text message to Robinson’s cell phone advising that he had provided the additional $3,000 in order to obtain CS-1’s address.
On February 14, 2019, CS-2 called Robinson and told Robinson that the murder was done and that the hitman would want his money. CS-2 then met with Robinson, who provided CS-2 with $2,000. CS-2 put the cash in his pocket and Robinson asked CS-2 for proof that the murder had been completed. CS-2 showed Robinson several fake photos in which it appeared that CS-l had been bound with zip ties, shot several times, and killed. After the meeting, law enforcement arrested Robinson.
Robinson will also forfeit items seized on June 27, 2017 during the execution of search warrants at his residence, the Frankford Family Pharmacy, his vehicle, and a safe deposit box rented by Robinson. These include: $159,862 in cash from Robinson’s home; $46,927 in a briefcase, blank prescriptions, a prescription pad, and a loaded 9mm pistol from Robinson’s car; $60,486 in cash, an AR-15 rifle with a magazine, several boxes of ammunition for the rifle from the pharmacy; and $25,041 in cash, $4,500 in gold coins, and $1,010 in silver coins from the safe deposit box.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, HHS OIG, the Baltimore Police Department, and the Maryland Department of Public Safety and Correctional Services for their terrific work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
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Orange County Man Sentenced to 5 Years in Prison for Threatening to Attack SchoolRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Kevin P. Bruen, Acting Superintendent of the New York State Police (“NYSP”), announced that BRENDAN VAUGHAN was sentenced today to 60 months in prison, in connection with threats VAUGHAN made to classmates and law enforcement to carry out a school shooting in Washingtonville, New York. VAUGHAN pled guilty to a three-count Information on December 3, 2019, before U.S. Magistrate Judge Judith C. McCarthy, and was sentenced today by U.S. District Judge Kenneth M. Karas.
U.S. Attorney Audrey Strauss said: “In the wake of the many recent tragic school shootings committed in our country, parents, school administrators, and students are increasingly alert to the frightening possibility that their community could be next. The defendant callously preyed on those fears in one community with a series of terrifying threats spread out over months, and took steps to act on those threats. Today’s sentencing sends a clear message that making violent threats will merit a serious prison sentence.”
FBI Assistant Director William F. Sweeney Jr. said: “No child should have to live in a society where the simple act of going to school invokes a sense of fear. Unfortunately, for many school-aged children, this has become an all-too-familiar reality. Vaughan’s clear and direct threats to his fellow classmates and others were so egregious that he was ultimately charged and convicted of a federal crime. May this, along with the sentencing he received today, serve as a message to others like him – there are life-changing penalties for this type of behavior.”
State Police Acting Superintendent Kevin P. Bruen said: “I applaud the work done by the State Police and our law enforcement partners on this case, which no doubt saved lives. Threats to our schools and the communities we serve are always taken seriously, and investigated to the fullest. We are committed to working with our law enforcement partners to combat and prevent these types of crimes from occurring. Our priority is the safety of all New Yorkers.”
According to the Information, court filings, and statements made during court proceedings:
In May 2018, VAUGHAN, who was then a senior at a high school in Washingtonville, New York, communicated to a number of classmates via a social media chat group that he intended to carry out a school shooting on the final day of school. Even after being visited by law enforcement toward the end of May 2018, VAUGHAN continued his threatening behavior by sending additional threatening messages to a classmate about committing a school shooting and asking that classmate “not to go to the cops.” VAUGHAN also took some preliminary steps toward carrying out such an attack, including drafting a kill list, compiling lists of his “favorite” school shooters, researching “pipe bombs” on the Internet, accessing a website to purchase a firearm, and composing diary entries expressing his desire for imminent “revenge.” VAUGHAN also told a law enforcement officer that he intended to kill a specific classmate.
In August 2018, VAUGHAN sent a number of additional messages on social media in which he threatened an imminent attack in Washingtonville. Specifically, on successive days, VAUGHAN posted:
- a message that said: “I regret nothing,”
- a graphic that included the text “The 845” (that is, the designated area code for Hudson Valley) and a series of 15 gun and bomb emojis,
- a video depicting a red plastic gas container and pool chemicals with the text: “[smiley face emoji] Plans [smiley face emoji] bang.bang,” and,
- immediately following the posting of the pool chemical video, a video of himself in a car in which he was turning the ignition on and clutching the steering wheel.
After VAUGHAN was detained in March 2019, he continued his threatening behavior, compiling another kill list that included classmates, family members, medical personnel, and the FBI agent and Assistant U.S. Attorney assigned to his case.
* * *
In addition to his prison sentence, VAUGHAN, 20, of Campbell Hall, New York, was sentenced to three years of supervised release.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, the Washingtonville Police Department, the New York State Police, and the Orange County District Attorney’s Office.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution.
Northern Colorado Man Pleads Guilty for Possessing Pipe BombsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Bradley Bunn, 55, of Loveland, Colorado, pleaded guilty to one count of making destructive devices and four counts of possessing destructive devices in violation of Title 26, United States Code, Section 5861. Each count carries a maximum potential penalty of 10 years imprisonment, followed by three years of supervised release. Bunn was remanded to the custody of the U.S. Marshals following today’s hearing before U.S. District Judge Christine Arguello. A sentencing hearing is scheduled for June 3, 2021.
According to the facts contained in the plea agreement, on May 1, 2020, the FBI executed two search warrants at Bunn’s home. They found four explosive devices. Each device consisted of galvanized steel pipe with end caps and a fuse. The devices measured 2 inches in diameter and between 13.5 and 9.25 inches in length. FBI Bomb Technicians concluded that each of the devices was filled with explosive materials. Agents recovered additional bomb-making components in the house, including more steel pipes, end caps, primers, fuses, and bottles of smokeless powder. The defendant had not registered the devices in the National Firearms Registration and Transfer Record and he had not complied with any regulations concerning the making of destructive devices.
“The United States Attorney’s Office is committed to making Colorado safer,” said Acting United States Attorney Matthew T. Kirsch. “Thanks to the hard work of our law enforcement partners and prosecutors, we were able to find and remove these dangerous devices before the defendant could cause serious harm.”
“The operation to remove and render safe the explosives discovered in Mr. Bunn's home averted a potentially hazardous situation from endangering innocent people in our community. According to facts in the public record, Mr. Bunn knowingly and willingly assembled home-made explosives with the intent to use them against law enforcement,” said FBI Denver Special Agent in Charge Michael Schneider. “The FBI and our partners stand ready to identify, disrupt, and dismantle any plans to inflict harm on our communities and hold individuals accountable for their criminal actions.”
The investigation was conducted by the Federal Bureau of Investigation, the ATF, the Northern Colorado Bomb Squad, and the Larimer County Sheriff’s Office. Assistant United States Attorney David Tonini is handling the prosecution.
Case number: 20-cr-00158-CMA
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North Dakota man sentenced to more than 12 years in prison for meth trafficking at Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A North Dakota man convicted of methamphetamine trafficking crimes after investigators seized nearly two pounds of meth that were hidden in a pinata and a jar of peanut butter was sentenced today to 12 years and six months in prison followed by five years of supervised release, Acting U.S. Attorney Leif Johnson said.
A jury found Christopher Michael Stebbins, 53, of Williston, N.D., guilty on Nov. 6, 2020 of conspiracy to possess with intent to distribute meth and with attempted possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided and continued Stebbins’ detention.
In court documents and during trial, the prosecution presented evidence that on Nov. 8, 2019, Don Fred Baldwin, of Merced, California, mailed almost two pounds of meth to Stebbins to an address of a Brockton residence, located on the Fort Peck Indian Reservation. The meth was hidden in a jar of peanut butter and inside a “cop dog” pinata. Law enforcement officers intercepted the package, obtained a search warrant and found 1.7 pounds of meth inside the pinata and the peanut butter jar. The quantity of meth seized is the equivalent of about 6,208 doses. Baldwin was sentenced to six years in prison for conviction in a companion case.
A witness told law enforcement officers that Stebbins received meth from Baldwin and that the shipments were usually one-pound quantities. Baldwin typically shipped the meth to Stebbins’ home in Williston and that the Nov. 8, 2019 package was the only shipment to the Brockton residence. Stebbins would re-package the meth to sell to others.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the FBI, U.S. Postal Service and the Merced Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. 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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