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21 April 2021
Cedar Rapids Man Sentenced to Federal Prison for Fraud ChargesRead the Press Release
DAVENPORT, Iowa — On Monday, April 19, 2021, United States District Court Judge Stephanie M. Rose sentenced Christopher Michael Goerdt, age 40, of Cedar Rapids, to 69 months in prison for Bank Fraud, Aggravated Identity Theft, Wire Fraud, and Misapplication by Bank Officer announced Acting United States Attorney Richard D. Westphal. Goerdt was ordered to serve five years of supervised release to follow his prison term and pay $1,500 to the Crime Victims’ Fund. Furthermore, Goerdt was ordered to pay $1,124,343.60 in restitution to the victims of his crimes. The victims include County Bank, Peoples Trust and Savings Bank, Farm Bureau Financial Services, and Everest Insurance.
This investigation began as early as 2006 when Goerdt participated in fraudulent activities at multiple financial institutions. Goerdt obtained and used a credit card in the name of a bank for his personal use. Further, Goerdt falsified loan documents, diverted loan proceeds, altered appraisals, made false statements to investigators, and obtained loans without the knowledge of customers. The Court found the loss attributable to Goerdt for the 15 counts he pleaded to was nearly $900,000. Furthermore, Goerdt knew he was being investigated by law enforcement and continued his pattern of deception by seeking employment that would allow him to commit additional fraud at Farm Bureau Financial Services.
This matter was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG). This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Camden County Man and Woman Indicted for Trafficking High-Dose Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A federal grand jury today separately indicted a Camden man and woman for selling oxycodone pills as part of their roles in South Jersey high-dosage oxycodone trafficking rings, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Williams, 40, of Mount Ephraim, New Jersey, was charged in a five-count indictment with conspiring to distribute and possess with intent to distribute oxycodone, distributing and possessing with intent to distribute quantities of oxycodone, and attempting to do the same, and using a communications facility to further a drug trafficking crime. Lolita Paynter, 56, of Camden, was separately charged in a four-count indictment with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone and attempting to do the same. Williams and Paynter were previously charged by criminal complaint in March 2020. They will be arraigned on dates to be determined.
According to documents filed in this case and statements made in court:
In early 2020, the FBI led a wiretap investigation into drug distribution operations that dealt in, among other drugs, high-dose, 60- and 80-mg oxycodone pills. Intercepted telephone calls revealed that on multiple occasions from January 2020 to March 10, 2020, Williams discussed obtaining redistribution quantities of oxycodone from Erick Bell in and around Camden, and surveillance confirmed their meeting. These included discussions of purchases by Williams from Bell of, on Feb. 3, 2020, 100 80 mg. oxycodone pills, and, on Feb. 18, 2020, 100 60 mg. oxycodone pills. Bell and Williams employed coded language and used multiple phones to conceal their activities. The investigation also revealed that on multiple occasions Paynter supplied quantities of oxycodone to Rocco DePoder on dates from January 2020 to March 10, 2020. Intercepted calls and surveillance showed that DePoder was regularly reselling oxycodone pills to customers in and around Gloucester City, New Jersey.
Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The conspiracy and distribution and possession with intent to distribute charges against Williams and Paynter each carry maximum prison terms of 20 years and maximum fines of $1 million. The use of a communication facility charges against Williams each carry a maximum prison term of four years and a maximum fine of $250,000.
Eleven other defendants – Rocco DePoder, 68, Marcus Rushworth, 47, and Kenneth Rushworth, 60, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood; Wayne Muse, 74, of Lindenwold, New Jersey; Bell, 50, Steven Walker, 50, and Alexander Siaca, 55, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges.
She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden office and Sara F. Merin of the Newark Office.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
California Man Charged with COVID-Relief Fraud SchemeRead the Press Release
A federal grand jury in Los Angeles, California, returned an indictment on April 13, charging a California man with stealing hundreds of thousands of dollars from the Paycheck Protection Program (PPP).
According to court documents, Oumar Sissoko, 59, of Temecula, submitted a PPP loan application on behalf of his company, Road Doctor California LLC, that sought and obtained $7.25 million. The loan application certified that the funds would be used to retain workers and maintain payroll or make mortgage-interest payments, lease payments, and utility payments. Between on or about May 1 to May 12, 2020, Sissoko misappropriated hundreds of thousands of dollars of the PPP loan proceeds to use for impermissible purposes, including the purchase of a luxury car for more than $100,000, the satisfaction of a loan made to Sissoko in connection with his prior acquisition of a different luxury car, and the purchase of a computer for almost $6,000. Sissoko also attempted to transmit approximately $150,000 to accounts in Mauritania associated with a different company for which Sissoko purports to serve as CEO.
Sissoko is charged with four counts of wire fraud. The defendant is scheduled for his initial court appearance at a later date in the U.S. District Court for the Central District of California. If convicted, he faces a maximum penalty of 20 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tracy L. Wilkison of the Central District of California; Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Weston King of the U.S. Small Business Administration’s Office of Inspector General’s (SBA-OIG) Western Region; and Special Agent in Charge Wade V. Walters of the San Francisco Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG) made the announcement.
The FBI, SBA-OIG and FDIC-OIG are investigating the case.
Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander C.K. Wyman of the Central District of California are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man with Ties to the Alma Avenue Gang Pleads Guilty to Drug ConspiracyRead 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 Quamain Simms-Calhoun, 25, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to conspiracy to distribute controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Justin G. Bish and Meghan E. Leydecker, who are handling the case, stated that the defendant admitted that he is associated with the Alma Avenue Gang, a group of individuals who grew up around Alma Avenue and “represent” their neighborhood by flashing distinctive group hand signals and distinguish themselves on various social media platforms. Simms-Calhoun conspired with co-defendant Dajon Woods to sell crack cocaine, cocaine, heroin, and fentanyl. Between May 8 and August 15, 2019, the defendant coordinated the distribution of these illegal substances on nine separate occasions to an individual working with law enforcement. Simms-Calhoun also distributed drugs to a number of customers in the Buffalo area.
Charges remain pending against Dajon Woods. 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.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Lackawanna Police Department, under the direction of Chief Mark Packard.
Sentencing will be scheduled at a later date.
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Baltimore Man Sentenced to 5+ Years as Part of Nationwide Scam to Pass Counterfeit Checks Worth over $1 MillionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Sean Harrington, 42, of Baltimore, MD, was sentenced to five years and four months in prison, three years of supervised release, and ordered to pay restitution in the amount of $204,066 by United States District Judge Joseph F. Leeson, Jr. for aggravated identity theft and conspiracy to commit wire fraud.
In September 2019, the defendant pleaded guilty to charges of aggravated identity theft, conspiracy and wire fraud. Harrington was one of nine men charged in a Superseding Indictment as part of a coordinated scheme that operated for over two years, between June 2016 and July 2018, with the purpose of committing identity theft in order to defraud various banks and Walmart, Inc., by presenting and cashing over $1,000,000 worth of counterfeit checks at Walmart stores throughout the United States.
All nine defendants in this case pleaded guilty to similar charges; many were previously sentenced and received the following sentences from Judge Leeson: Ahmad Becoate, 34, of Philadelphia, PA, was sentenced to 75 months in prison; Jeffrey Roach, 35, of Baltimore, MD, was sentenced to 94 months in prison; Jethro Richardson, 42, of Greensboro, NC, was sentenced to 70 months in prison; Nathaniel Jones, 41, of High Point, NC, was sentenced to 24 months in prison; Leander Rowell, 44, also of Greensboro, NC, was sentenced to 87 months in prison; and Brian Cherry, 45, of Charlotte, NC, was sentenced to 70 months in prison. All defendants were also ordered to pay substantial amounts of restitution.
“This was a sophisticated scheme involving many defendants that took excellent investigative work to unravel,” said Acting U.S. Attorney Williams. “Financial fraud and identity theft harm hard-working individuals every day. Our office will continue to aggressively prosecute the perpetrators and seek justice for victims.”
“Passing stolen or counterfeit checks is as old a scheme as the concept of checks themselves,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of Postal Inspection Service. “Investigating and prosecuting these cases is tedious but necessary work as it helps to maintain confidence in our economic system. Also, real people are the ones hurt by these schemes as they are forced to work with their banks to recoup their lost money, close compromised accounts and open new clean accounts. Thank you to the United States Attorney, the Secret Service, and the Office of Inspector General from the Social Security Administration for working with us on this case and many other similar cases.”
“This case exemplifies the shared commitment of Federal law enforcement agencies to combat large-scale identity theft that harms businesses and consumers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the U.S. Secret Service and the U.S. Postal Inspection Service, as well as the U.S. Attorney’s Office, for their partnership as we work to maintain the integrity of the Social Security number as a key identifier.”
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, and Social Security Administration Office of Inspector General, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Bakersfield Medical Practice Agrees to Resolve False Claims Act Allegations Involving Cares Act Paycheck Protection ProgramRead the Press Release
SACRAMENTO, Calif. — Sandeep S. Walia, M.D., a Professional Medical Corporation (Walia PMC), and Sandeep S. Walia, M.D., the corporation’s owner and president, have agreed to pay a combined $70,000 in damages and penalties to resolve allegations that they knowingly made a false statement to obtain a loan under the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Acting U.S. Attorney Phillip A. Talbert announced today.
As part of the settlement, Walia PMC also agreed to repay the $430,000 PPP loan that it obtained because of the false statement, with interest.
The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion, and in December 2020, Congress authorized nearly $285 billion in additional PPP funding.
During the first round of the PPP, no eligible borrower was permitted to receive more than one PPP loan. The SBA determined this limitation was necessary to help ensure that as many eligible borrowers as possible could obtain a PPP loan. This helped advance Congress’s goal of keeping workers employed and paid across the United States in 2020.
The settlement resolves allegations that Dr. Walia falsely certified to a PPP lender that his medical practice had not received a PPP loan after it had already received one for approximately $280,000 from a different lender. As a result, Walia PMC obtained a second PPP loan for $430,000, to which it was not entitled. Walia PMC did not seek forgiveness for the $430,000 loan, but its false statement caused a false claim to be made to the SBA for processing fees. This settlement resolves allegations that Walia and Walia PMC’s conduct violated the False Claims Act, which allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. Walia and Walia PMC cooperated fully with the investigation.
“The second PPP loan should have been disbursed to another small business suffering financially during the COVID-19 pandemic,” said Acting U.S. Attorney Talbert. “The Department of Justice and our partners at the SBA will use all of the tools at our disposal, including civil fraud statutes, to recover funds for federal programs intended to help those in need during this national emergency.”
“It is unacceptable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Assistant U.S. Attorney Matthew R. Belz handled the case for the United States. The investigation was conducted with the U.S. Small Business Administration, Office of Inspector General.
Attorney General Merrick B. Garland Announces Investigation of the City of Minneapolis, Minnesota, and the Minneapolis Police DepartmentRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland announced today the Justice Department has opened a pattern or practice investigation into the City of Minneapolis (the City) and the Minneapolis Police Department (MPD). The investigation will assess all types of force used by MPD officers, including uses of force involving individuals with behavioral health disabilities and uses of force against individuals engaged in activities protected by the First Amendment. The investigation will also assess whether MPD engages in discriminatory policing. As part of the investigation the Justice Department will conduct a comprehensive review of MPD policies, training and supervision. The department will also examine MPD’s systems of accountability, including complaint intake, investigation, review, disposition and discipline. The Department of Justice will also reach out to community groups and members of the public to learn about their experiences with MPD.
“The investigation I am announcing today will assess whether the Minneapolis Police Department engages in a pattern or practice of using excessive force, including during protests,” said Attorney General Garland. “Building trust between community and law enforcement will take time and effort by all of us, but we undertake this task with determination and urgency, knowing that change cannot wait.”
This morning, Department of Justice officials informed Minneapolis Mayor Jacob Frey, MPD Chief Medaria Arradondo, City Attorney Jim Rowader, City Coordinator Mark Ruff, and City Council President Lisa Bender of the investigation. The department will continue to work closely with both the City and MPD as the investigation progresses.
“One of the Civil Rights Division’s highest priorities is to ensure that every person in this country benefits from public safety systems that are lawful, responsive, transparent and nondiscriminatory,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department's Civil Rights Division. “It is essential that police departments across the country use their law enforcement authority, including the authority to use force, in a manner that respects civil rights and the sanctity of human life.”
“People throughout the city of Minneapolis want a public safety system that protects and serves all members of our community,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This investigation by the Department of Justice provides a vital step to restore and build trust in the Minneapolis Police Department and its officers.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Department of Justice to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the First, Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964 and Title II of the Americans with Disabilities Act.
The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the District of Minnesota, in Minneapolis, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at [email protected] or by phone at 866-432-0268. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available on its website at https://www.justice.gov/usao-mn.
Attorney General Merrick B. Garland Announces Investigation of the City of Minneapolis, Minnesota, and the Minneapolis Police DepartmentRead the Press Release
Attorney General Merrick B. Garland announced today the Justice Department has opened a pattern or practice investigation into the City of Minneapolis (the City) and the Minneapolis Police Department (MPD). The investigation will assess all types of force used by MPD officers, including uses of force involving individuals with behavioral health disabilities and uses of force against individuals engaged in activities protected by the First Amendment. The investigation will also assess whether MPD engages in discriminatory policing. As part of the investigation the Justice Department will conduct a comprehensive review of MPD policies, training and supervision. The department will also examine MPD’s systems of accountability, including complaint intake, investigation, review, disposition and discipline. The Department of Justice will also reach out to community groups and members of the public to learn about their experiences with MPD.
“The investigation I am announcing today will assess whether the Minneapolis Police Department engages in a pattern or practice of using excessive force, including during protests,” said Attorney General Garland. “Building trust between community and law enforcement will take time and effort by all of us, but we undertake this task with determination and urgency, knowing that change cannot wait.”
This morning, Department of Justice officials informed Minneapolis Mayor Jacob Frey, MPD Chief Medaria Arradondo, City Attorney Jim Rowader, City Coordinator Mark Ruff, and City Council President Lisa Bender of the investigation. The department will continue to work closely with both the City and MPD as the investigation progresses.
“One of the Civil Rights Division’s highest priorities is to ensure that every person in this country benefits from public safety systems that are lawful, responsive, transparent and nondiscriminatory,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department's Civil Rights Division. “It is essential that police departments across the country use their law enforcement authority, including the authority to use force, in a manner that respects civil rights and the sanctity of human life.”
“People throughout the city of Minneapolis want a public safety system that protects and serves all members of our community,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This investigation by the Department of Justice provides a vital step to restore and build trust in the Minneapolis Police Department and its officers.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Department of Justice to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the First, Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964 and Title II of the Americans with Disabilities Act.
The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the District of Minnesota, in Minneapolis, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at [email protected] or by phone at 866-432-0268. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available on its website at https://www.justice.gov/usao-mn.
Alleged Bay Area Gang Members Charged with August 11, 2018, Murder in San FranciscoRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Jonathan Escobar (aka Wicked, aka Rico) and Jose Aguilar (aka Slim), charging both defendants with firearms violations in connection with crimes including murder and attempted murder committed to enhance the defendants’ position in the Sureño criminal street gang, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King.
“Street gangs resort to violence to assert control over peaceful neighborhoods, expecting to create safe havens for drug trafficking, robberies, and other violent crimes,” said Acting U.S. Attorney Hinds. “In this case, the indictment describes how firearms are deliberately used to achieve these goals through murder and attempted murder. This office will continue to partner with local and federal law enforcement agencies to wrest control of our streets from the gangs who threaten our residents.”
“Our communities have the right to be safe and not succumb to senseless violence. I am proud of the dedicated agents who have duly executed their duties in our collective pursuit of law, order and justice," said Special Agent in Charge King, who oversees HSI operations in Northern California. "Gang violence will not be tolerated, and law enforcement’s collaborative efforts are key to disrupting the lawless activities that threaten public safety."
The indictment, filed April 15, 2021 and unsealed this morning, alleges that Escobar, 24, of Richmond, Calif., and Aguilar, 32, of San Francisco, were members of a racketeering enterprise referred to in the indictment as “the 19th Street/16th Street Sureños.” The street gang was the amalgamation of two gangs, one that claimed “territory” bounded by 19th Street to the South, 16th Street to the North, Folsom Street to the East, and Dolores Street to the West and the other that generally operated around 16th Street and Mission Street, in the Mission District of San Francisco. The enterprise also operated in Dolores Park and Franklin Square Park (also known as Bryant Park). The indictment describes how the gang sought to maintain control of drug distribution in the areas that it sought to claim and how gang members engaged in numerous illegal acts to meet its aims including narcotics sales, robberies, and other violent crimes, including murder.
According to Count One of the two-count indictment, on August 11, 2018, in San Francisco, Escobar and Aguilar used a firearm during the commission of a murder in aid of racketeering and committed the murder for the purpose of maintaining and increasing their position in the criminal enterprise. The indictment also alleges that the murder was premeditated, deliberate, and willful, and therefore “murder in the first degree” under California law.
In addition to the murder allegations, the indictment alleges in Count Two that Escobar and Aguilar used a firearm during the commission of attempted murder in aid of racketeering. In this count of the indictment, the document alleges that the defendants willfully and with deliberation and premeditation attempted to murder five additional victims, again for the purpose of maintaining and increasing position in the 19th Street/16th Street Sureños.
Both defendants are charged with use or carrying of a firearm resulting in death during and in relation to a crime of violence (murder in aid of racketeering), in violation of 18 U.S.C. §§ 924(j)(1) and 2 and use or carrying of a firearm during and in relation to of a crime of violence (attempted murder in aid of racketeering), in violation of 18 U.S.C. §§ 924(c) and 2. If convicted of the murder count, both defendants are eligible for the death penalty. If convicted of the attempted murder count, both defendants can be sentenced to a maximum prison term of life and a minimum term of not less than ten years. In addition to a prison term, the court may also order a term of supervised release, restitution, and fines; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants were arrested on April 20, 2021 and made their initial federal court appearance this morning before U.S. Magistrate Judge Jacqueline S. Corley. Magistrate Judge Corley ordered the defendants to remain in custody pending trial. The next federal court appearance for the defendants is scheduled for May 12, 2021, before United States Magistrate Judge Thomas S. Hixon for appointment of counsel.
The case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by Homeland Security Investigations with assistance from the San Francisco Police Department’s Gang Task Force and Homicide Unit.
23rd Defendant Sentenced in Sweeping Federal Drug and Gang CaseRead the Press Release
SALT LAKE CITY – A joint FBI and DEA federal narcotics investigation has resulted in the conviction of 23 federal defendants in Utah, taking out a large-scale methamphetamine distribution organization in Salt Lake County run by members of eight street gangs and supplied by a Mexican drug cartel.
Throughout the course of the complex multi-year investigation, agents from the FBI, DEA, and multiple federal, state, and local law enforcement agencies worked together using advanced court authorized investigative techniques and undercover purchases to determine that 24 defendants (including one that remains a fugitive in Mexico) were operating a complex methamphetamine distribution scheme in Salt Lake County. The organized narcotics ring was set up like a business which included security, counter-surveillance, secret codes, firearms, and large amounts of cash, with each member having a distinct role in in the group.
During the operation and resulting arrests of the 23 defendants, law enforcement officers seized 41 pounds of methamphetamine and 17 firearms, including 13 firearms and assorted ammunition from one defendant who was prohibited under federal law from possessing a firearm after a felony conviction. Collectively, these 24 defendants were members of eight separate gangs and the organization was supplied by members of a Mexican drug cartel in Southern California.
The street gangs involved were the Surenos, Nortenos, La Raza, Vario Chosen Few, East Side Raskals, Baby Regulators, Soldiers of Aryan Culture, and Tiny Oriental Posse.
The sentences received by each defendant are:
- Cesar Gutierrez, age 41 of Magna, sentenced April 13, 2021, to 164 months in prison for Conspiracy to distribute 500 grams or more of methamphetamine;
- Siosifina Ositamani (aka Fina Halai), age 45 of Salt Lake City sentenced February 25, 2020, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jon Martinez (aka Droopy), age 50 of Salt Lake City, sentenced August 13, 2019, to 5 years of probation;
- Cerina Gutierrez, age 49 of Salt Lake City sentenced June 17, 2019, to 120 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Sompheth Thaodara (aka Diamond), age 52 of West Valley City sentenced January 4, 2019, to 60 months in prison for Conspiracy to distribute 500 grams or more of methamphetamine;
- Timote Fangupo (aka Double Barrel), age 40 of West Jordan, sentenced September 18, 2018, to 18 months in prison for unlawful use of a communication device;
- Linda Sosa, age 42 of Kearns, sentenced September 18, 2018, to 36 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Man Tat Le (aka Asian Le), age 46 of West Valley City sentenced September 17, 2018, to 18 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Melissa Delgado, age 25 of Murray, sentenced August 20, 2018, to time served for conspiracy to distribute 500 grams or more of methamphetamine;
- Silvio McKenzie-Gainza, age 39 of Salt Lake City, sentenced August 2, 2018, to 151 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- David Tyson Madden, age 44 of Salt Lake City sentenced July 17, 2018, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Brandon Callaway, age 33 of Salt Lake City, sentenced July 6, 2018, to 84 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Raul Enrique Lizarraga Lopez (aka Maestro), age 26 of Los Angeles, sentenced July 2, 2018, to 120 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Makasini Lomu (aka Maka), age 54 of West Valley City, sentenced July 2, 2018, to 180 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Morgan Harris (aka Ace), age 62 of Murray sentenced June 8, 2018, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jake Duran (aka Troublez), age 29 of Salt Lake City, sentenced May 25, 2018, to 84 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Justin Dahlquist, age 30 of Salt Lake City sentenced May 24, 2018, to 24 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Steven Trujillo, age 27 of Tooele sentenced May 8, 2018, to 72 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jeremy Najera, age 37 of Salt Lake City sentenced May 7, 2018, to 48 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Gary Bronson Dean (aka Gary Dean Bronson), age 46 of Salt Lake City sentenced May 7, 2018, to 18 months in prison for conspiracy to distribute marijuana;
- Mario Cerna (aka Havoc), age 38 of West Valley City sentenced May 7, 2018 to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Michael Shane Tisdale, age of 58 of West Valley City, sentenced May 7, 2018, to 48 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Greg Montoya, age 47 of Salt Lake City, sentenced October 25, 2017, to 49 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Ciro Santamaria-Zepeda, age 39 of Salt Lake City, still a fugitive in Mexico.
“State and federal cooperation is one of the hallmarks of effective law enforcement. This operation highlights these partnerships, which work especially well together in Utah,” said Acting United States Attorney Andrea T. Martinez. “Dangerous, gang-affiliated drug trafficking organizations, like the organization prosecuted in this particular indictment, bring violence and chaos to our city streets. We pledge to continue to work together to disrupt and dismantle any drug trafficking organizations that target our state.”
“This case isn’t just about the massive amount of drugs that were brought into our neighborhoods, but the gang activity and violent crime that often accompanied it. These drug organizations run like a big business, and we were able to target this one at every level,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “The unfortunate reality is that our work is far from over. Rest assured, the FBI and our partners are committed to identifying, investigating, and dismantling these criminal enterprises that threaten the safety of our kids and communities.”
"This long-term joint investigation targeted local area gangs that were responsible for the distribution of significant amounts of methamphetamine within our neighborhoods. As evidenced during the course of this case, these gang members utilized violence and intimidation to maintain control of their territories,” said DEA Assistant Special Agent in Charge Michael J. Tinkler. “Through the concerted efforts of local, state and federal law enforcement agencies, this organization was successfully dismantled highlighting the impact that partnerships have on addressing drug and violence related crime in Utah."
This case was prosecuted by Assistant United States Attorneys Stephen Nelson and Stewart Young from the Utah United States Attorney’s Office under the Department of Justice’s Organized Crime Drug Enforcement Task Force, and the investigation was conducted by Special Agents from the FBI and DEA. Assisting with the investigations were officers from the Salt Lake City Police Department, West Valley City Police Department, Sandy Police Department, West Jordan Police Department, and the Utah Department of Public Safety, who participate as members of the FBI’s Safe Street Task Force; the Unified Police Department and the Metro Gang Unit; the Murray Police Department, the United States Marshals Service, ATF, and ICE Enforcement and Removal Operations.
20 April 2021
Wilkinsburg Man Facing Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – A resident of Wilkinsburg, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Andre Randolph, 50, as the sole defendant.
According to the Indictment, on or about March 23, 2021, Randolph was found to be in the possession of heroin and a firearm in furtherance of a drug trafficking crime. His prior felony conviction makes it unlawful for him to possess a firearm.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1.5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants. The defendant is currently being detained at Allegheny County Jail
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office, FBI and ADL to Host Discussion on Hate Crimes, Hate Incidents and Discrimination Against Asian AmericansRead the Press Release
LOS ANGELES – The United States Attorney’s Office, along with the FBI’s Los Angeles Field Office and the Anti-Defamation League, will host a virtual discussion on Thursday, April 22, to explain how the federal government investigates and works to combat hate crimes and discrimination, including against the Asian-American and Pacific Islander community. The event will be open to the public on the WebEx platform, and pre-registration is required.
Assistant United States Attorneys will provide information on the legal framework of criminal and civil investigations into hate crimes and discrimination. The prosecutors are expected to discuss the distinction between hate crimes and hate speech, alternatives to prosecution, civil enforcement of civil rights statutes, and an overview of a hypothetical criminal hate crime investigation from complaint to conviction.
Representatives from the FBI will discuss hate crime statistics, local hate crime investigations and the FBI’s collaboration with local partners. The event will also include speakers from the Anti-Defamation League and the Department of Justice’s Community Relations Service will discuss their respective roles in interfacing with the community and stakeholders to monitor and address acts of hate locally and nationally.
The event, called “Federal Responses to AAPI Hate in the Central District of California: Awareness, Civil Actions & Criminal Enforcement,” will include time for questions and answers from the public.
The event announcement is available in English, Korean, Chinese, Tagalog, and Vietnamese. Anyone interested in attending the discussion should register here. Translation services will be available for this event upon request.
“With this program, we hope to continue working with our partners to empower the community with more knowledge about reporting hateful acts and how authorities investigate those reports. Everyone should be free from violence, threats and discrimination based on race or national origin,” said Acting United States Attorney Tracy L. Wilkison. “I encourage anyone with knowledge of discrimination, hate incidents and hate crimes to report them immediately.”
“The FBI is committed to investigating federal hate crimes and protecting the civil rights of Asian Americans and Pacific Islanders,” said Kristi K. Johnson, Assistant Director in Charge of the FBI Los Angeles Division. “Violent acts motivated by bias are not only an attack on the victim, but also threaten and intimidate an entire community and are contrary to our values of equality for all Americans.”
“For over 100 years, ADL has fought against hatred and bigotry of all kinds. ADL wrote the model hate crimes legislation that has now been adopted in 47 states and the District of Columbia, as well as the federal hate crimes statute,” said ADL Deputy Regional Director Ariella Loewenstein. “Hate crimes are message crimes telling victims that they are not safe or welcome in their communities. It is incumbent upon all of us to send a countervailing message of inclusivity and safety for all. We are participating in this important program, along with our federal partners, to show that hate targeting one group is hate targeting all of us, and it will not be tolerated locally or nationally.”
The U.S. Attorney’s Office, the FBI and other partners strongly encourage anyone who has knowledge or information concerning any hate crime or incident involving bias or discrimination on the basis of race, national origin, religion, disability, gender, gender identity, sexual orientation or any other factor prohibited by federal law to report it to the FBI. The FBI’s Los Angeles Field Office can be reached 24 hours a day at (310) 477-6565. Reports also can be made online at https://tips.fbi.gov/. The FBI handles complaints in multiple languages.
Individuals with knowledge or information concerning discrimination based on the above factors in places of public accommodation, housing, lending, education, employment, voting or any other factor prohibited by federal law should file a complaint with the United States Attorney’s Office by calling (213) 894-2879, emailing [email protected] or submitting this form. The U.S. Attorney’s Office is equipped to handle complaints in more than 70 languages.
U.S. Attorney’s Office warns scammers are ‘spoofing’ the office phone number to try to obtain money or personally identifying informationRead the Press Release
Seattle – The U.S. Attorney’s Office Western District of Washington has seen a recent increase in phone calls that “spoof,” or fake, the U.S. Attorney’s Office main phone number, so the call appears to originate from the office on the recipient’s caller ID. Fraudulent callers pose as a “Justice Department investigator.” The scammers attempt to use a fake name and nonexistent case number to trick the victim. The fraudsters have demanded money claiming it is “attorney fees” to resolve the case. In some instances, the scammers appear to have some personally identifiable information on the victim or have reviewed social media posts for information that makes their spiel sound credible.
Law enforcement defines this type of scam as government impersonation fraud, in which criminals impersonate government officials. The criminals often threaten to extort victims with physical or financial harm. Scammers are becoming more sophisticated and organized in their approach, are technologically savvy, and often target young persons and the elderly.
The U.S. Attorney’s Office staff will never ask for money or personally identifying information over the phone.
According to the Internet Crime Complaint Center (IC3), 12,334 people reported being victims of government impersonation scams in 2020, with losses totaling more than $106 million. In Washington State in 2020, 358 victims reported $2 million in losses. Since January 1, 2021, 106 victims have already reported $777,045 in losses in Washington State. To protect yourself from falling victim to this scam, be wary of answering phone calls from unrecognized numbers. Do not send money to anybody that you do not personally know and trust. Never give out your personal information, including banking information, Social Security number, or other personally identifiable information, over the phone or to individuals you do not know.
Anyone who feels they were the victim of this or any other online scam should report the incident immediately using the IC3 website at www.ic3.gov. More information about government impersonation schemes and other online fraud schemes can be found at https://www.fbi.gov/scams-and-safety/common-fraud-schemes.
Two Texas Men Charged with Dealing CocaineRead the Press Release
PITTSBURGH - Two residents of Texas have been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Felipe Ramos, age 41, and Ruben David Apellaniz-Figueroa, age 38, as co-defendants.
According to the Indictment, in March 2021, Ramos and Apellaniz-Figueroa possessed and conspired to distribute a mixture and substance containing 500 grams or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years in prison, a fine of not more than $5,000,000.00, a term of supervised release of at least 4 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Senior Managers in Italy Charged with Conspiracy to Cheat U.S. Emissions Tests and Defraud U.S. ConsumersRead the Press Release
An indictment was unsealed today in the Eastern District of Michigan charging two Italian nationals, along with a previously charged co-conspirator, for their alleged role in a conspiracy to defraud U.S. regulators and customers by making false and misleading statements about the emissions controls and fuel efficiency of more than 100,000 diesel vehicles sold in the United States by FCA US LLC.
According to court documents, Sergio Pasini, 43, of Ferrera, Italy, and Gianluca Sabbioni, 55, of Sala Bolognese, Italy, two senior diesel managers at Fiat Chrysler Automobiles Italy S.p.A. (FCA Italy), a wholly owned subsidiary of Stellantis N.V. — along with a previously charged co-conspirator, Emanuele Palma, 42, of Bloomfield Hills, Michigan — were responsible for developing and calibrating the 3.0-liter diesel engine used in certain FCA diesel vehicles. Their responsibilities included calibrating several software features in the vehicles’ emissions control systems to meet emissions standards for nitrogen oxides (NOx), a family of poisonous gases that are formed when diesel fuels are burned at high temperatures, while also achieving best-in-class fuel efficiency targets set by FCA US LLC.
The superseding indictment alleges that Palma, Pasini, Sabbioni, and their co-conspirators, purposely calibrated the emissions control functions to produce lower NOx emissions under conditions when the subject vehicles would be undergoing testing on the federal test procedures or driving “cycles,” and higher NOx emissions under conditions when the subject vehicles would be driven in the real world. Palma, Pasini, Sabbioni, and their co-conspirators allegedly referred to the manner in which they manipulated one method of emissions control as “cycle beating.” As alleged, by calibrating the emissions control functions on the subject vehicles to produce lower NOx emissions while the vehicles were on the driving “cycle,” and higher NOx emissions when the vehicles were off the driving “cycle,” or “off cycle,” the three defendants purposely misled FCA’s regulators by making it appear that the subject vehicles were producing less NOx emissions than they were, i.e., in real world driving conditions. Palma, Pasini, and Sabbioni also allegedly made and caused others to make false and misleading representations to FCA’s regulators about the emissions control functions of the subject vehicles in order to ensure that FCA obtained regulatory approval to sell the subject vehicles in the United States.
The superseding indictment also alleges that Palma, Pasini, and Sabbioni employed “cycle beating” to achieve best-in-class fuel efficiency and make the subject vehicles more attractive to FCA’s potential customers, i.e., by increasing fuel economy and reducing the frequency of a required emissions control system service interval. The superseding indictment alleges that the co-conspirators understood their “cycle beating” calibration would harm consumers who purchased the vehicle, leading them to acknowledge that “there will always be the unlucky customer who will have the misfortune of using our loser cal[ibration].”
Pasini and Sabbioni are each charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, and six counts of violating the Clean Air Act. If convicted, Pasini and Sabbioni each face up to five years in prison on the conspiracy count to defraud the United States and to violate the Clean Air Act, up to 20 years in prison on the conspiracy count to commit wire fraud, and up to two years in prison for each count of violating the Clean Air Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Palma is charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, six counts of violating the Clean Air Act, and two counts of making false statements to representatives of the FBI and the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID). If convicted, Palma faces up to five years in prison on the conspiracy count to defraud the United States and to violate the Clean Air Act, up to 20 years in prison on the conspiracy count to commit wire fraud, up to two years in prison for each count of violating the Clean Air Act, and up to five years in prison for each count of making false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Principal Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima S. Mohsin of the U.S Attorney’s Office for the Eastern District of Michigan; Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD); Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; and Special Agent in Charge Lance Ehrig of the EPA-CID’s West-Central Region made the announcement.
Principal Assistant Chief Henry P. Van Dyck and Trial Attorneys Kyle W. Maurer and Jason M. Covert of the Criminal Division’s Fraud Section, ENRD Senior Trial Attorney Todd W. Gleason, and Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse for the Eastern District of Michigan are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Plead Guilty to Federal Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – Two defendants pleaded guilty to federal drug charges today before United States District Judge Robert C. Chambers.
Travis Lee Cloninger, 30, of Huntington, pleaded guilty to an Information charging him with possession with intent to distribute 50 grams or more of methamphetamine. According to the plea agreement and statements made in court, law enforcement officers executed a search warrant at Cloninger’s Wayne County home on June 5, 2019 and seized 340 grams of methamphetamine and 453 grams of heroin. Cloninger admitted that he intended to sell the methamphetamine and heroin. Cloninger faces at least five years and up to 40 years in federal prison when he is sentenced on July 19, 2021. The Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West, and the Wayne County Sheriff’s Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
In a separate case, Tuniesia Monique Adams, 43, of Detroit, Michigan, pleaded guilty to possession with intent to distribute oxycodone. Adams was indicted by a federal grand jury in April 2017. According to the plea agreement and statements made in court, on November 29, 2016 Adams transported 382 30mg oxycodone pills from Detroit to Fort Gay in Wayne County where she intended to sell the pills with the help of another individual. When Adams met with the individual, they were approached by law enforcement officers who discovered and seized the pills. Adams admitted that she intended to sell the pills and that she had made previous trips from Detroit to sell pills in Wayne County. Adams faces up to 20 years in federal prison when she is sentenced on July 19, 2021. The Drug Enforcement Administration (DEA) conducted the investigation with assistance from the Wayne County Sheriff’s Department and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:21-cr-00044 (Cloninger) and 3:17-cr-00059 (Adams).
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Two Companies and Nine Individuals Indicted for Alleged Large-Scale Visa Fraud Employment SchemeRead the Press Release
An indictment returned by a federal grand jury in the Southern District of Georgia has been unsealed charging two businesses and nine of their officers and managers located across the country for their roles in an alleged conspiracy to defraud the U.S. government and commit various fraud and criminal immigration offenses for profit.
According to court documents, Regal Hospitality Solutions, LLC; Educational World, Inc.; Karen Makaryan, 42, Sargis Makaryan, 42, and Samvel Nikoghosyan, 40, of Destrehan, La.; Artur Grigoryan, 38, of Biloxi, Miss.; Armen Ayrapetyan, 37, of Duluth, Ga.; Jason Hill, 28, of Virginia Beach, Va.; Fremie Balbastro, 49, of Myrtle Beach, S.C.; and Larisa Khariton, 73, and Jon Clark, 71, of North Port, Fla., were charged in a 36-count indictment returned by a federal grand jury on April 8. Each defendant was charged with one count of conspiracy to defraud and commit offenses against the United States, including encouraging and inducing an alien to reside in the United States, alien harboring, transporting aliens, and visa fraud. Each defendant also was charged with substantive counts of encouraging and inducing an alien to reside in the United States, alien harboring, and transportation of aliens. In addition, Regal Hospitality Solutions, LLC; Karen Makaryan; Sargis Makaryan; Samvel Nikoghosyan; Artur Grigoryan; Armen Ayrapetyan; Fremie Balbastro; and Jason Hill were also charged with one count of conspiracy to commit wire fraud and 10 counts of wire fraud.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves by exploiting both the immigration system and noncitizen workers,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Systemic fraud and abuse of U.S. visa programs and processes designed to protect American workers and businesses will not be tolerated, and offenders will be held accountable.”
“Hospitality venues often struggle with finding workers, and in recent years that has been an even greater challenge,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “Agencies that provide workers can be exceptionally helpful in such circumstances – but they must provide that assistance in accordance with the law. In this case, businesses in St. Simons Island were among those allegedly exploited along with the illegally provided workers.”
“The Department’s Bureau of Educational and Cultural Affairs aims to increase mutual understanding between the people of the United States and the people of other countries by means of educational and cultural exchange,” said Acting Assistant Inspector General for Investigations Robert Smolich of the U.S. Department of State, Office of Inspector General, Office of Investigations. “When bad actors corrupt these programs for personal gain, it not only diminishes an important tool of diplomacy, it harms the thousands of individuals who participate in these programs hoping to gain skills and experience to make a better life. Today we took a step forward in restoring integrity back to those programs.”
“These defendants’ alleged scheme to game the immigration system and defraud the government has backfired and they will now be held accountable,” said Special Agent in Charge Katrina W. Berger of Homeland Security Investigations (HSI), Georgia and Alabama. “Schemes like this not only exploit the noncitizen workers involved, they also damage the other legitimate businesses in the community. Protecting the integrity of the visa program and immigration system is vital to the security of our nation.”
According to the indictment, from an unknown date through at least May 2017, the individual defendants enriched themselves by participating in a scheme to recruit and hire noncitizen laborers without authorization to work for defendant Regal Hospitality Solutions, LLC (RHS). RHS allegedly entered into contracts to provide hospitality-related businesses with lawful laborers to work in housekeeping, retail, and food service positions. To fill those positions, RHS defendants hired noncitizens who were not authorized to work for RHS in the United States. In some cases, the RHS defendants arranged for and provided housing and transportation to the workers.
The defendants and other co-conspirators also allegedly encouraged and induced noncitizen laborers on expiring and expired J-1 exchange visitor visas to obtain B-2 tourist visas and to work in the United States for RHS, knowing that employing such laborers on B-2 visas was illegal. Educational World, Inc. (Ed World) – a visa preparation company – and the Ed World defendants, after charging noncitizen laborers approximately $650 per application, prepared and submitted applications for B-2 visas on behalf of the workers, which contained false and misleading statements designed to indicate that the noncitizens intended to obtain the B-2 visa for the purpose of engaging in tourism and that the noncitizens were complying with United States immigration laws. In fact, the Ed World defendants knew that those noncitizens were already present in and intended to stay in the United States for employment, not tourism.
The indictment further alleges that the Ed World defendants submitted petitions for H-2B temporary work visas that contained false and misleading information about the location where noncitizen laborers allegedly were to be employed. RHS paid a commission to Ed World for noncitizens Ed World recruited to work for RHS, including those who were not authorized to work for RHS in the United States.
According to the indictment, RHS and the RHS defendants also made false and misleading representations that RHS would staff positions at the hospitality establishments contracting with RHS only with laborers who were legally authorized to work for RHS in the United States.
Individual defendants have made their initial court appearances and the arraignment of all defendants will be scheduled before U.S. Magistrate Judge Benjamin W. Cheesbro of the U.S. District Court for the Southern District of Georgia. If convicted, the individual defendants face maximum potential statutory penalties of five years in prison on the count of conspiracy to defraud and commit offenses against the United States; 10 years in prison on the counts of encouraging and inducing an alien to reside in the United States, alien harboring, and transportation of aliens; and 20 years in prison on the counts of wire fraud conspiracy and substantive wire fraud. The organizational defendants are subject to a maximum fine on each count of conviction of $500,000 or twice the gross amount of gain or loss resulting from the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of State Office of Inspector General is investigating the case with assistance provided by HSI and U.S. Citizenship and Immigration Services.
Trial Attorneys Frank Rangoussis and John-Alex Romano of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Alejandro V. Pascual IV of the Southern District of Georgia are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Brothers Plead Guilty to Conspiracy Charge for Attempting to Steal Guns from FFLsRead the Press Release
PITTSBURGH – Three brothers residing in Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit an offense against the United States, United States Attorney Stephen R. Kaufman announced today.
Jerwahn Atkins, 24, Jerquay Atkins, 23, and Jamir Atkins, 22, each pleaded guilty to one count before United States District Judge W. Scott Hardy on April 16, 2021, April 19, 2021 and April 20, 2021, respectively.
In connection with the guilty pleas of the three brothers, the court was advised that the Atkins brothers conspired to steal firearms from a federal firearm licensee, Allegheny Arms and Gun Works, on the night of May 30, 2020. The Atkins’s used a crowbar in an attempt to gain entry to the gun store, which triggered a burglary alarm. This alarmed caused the brothers to run away to which Jerquay and Jerwahn left the scene in the same vehicle while Jamir departed in a separate vehicle, not arriving at the next crime scene. Jamir Atkins and Jerwahn Atkins then drove to the National Armory in Moon Township, also a federal firearm licensee. On May 31, 2020, a crowbar was again used to pry open the door triggering the burglary alarm causing the two brothers to flee once more.
Judge W. Scott Hardy scheduled sentencing for Jamir Atkins on August 26, 2021 at 10:00 a.m., Jerquay Atkins on August 25, 2021 at 10:00 a.m., and Jerwahn Atkins on August 24, 2021 at 10:00 a.m. The law provides for a total sentence of not more than five years’ imprisonment, a term of supervised release not more than three years, and/or a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Jerwahn and Jerquay Atkins to the custody of the United States Marshals Service. Jamir Atkins was continued on bond pending sentencing.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Jerwahn Atkins, Jamir Atkins and Jerquay Atkins.
Three Brooklyn Residents Charged in Money Laundering Scheme with Stealing over $30 Million from Foreign BanksRead the Press Release
An indictment was unsealed earlier today in federal court in Brooklyn charging Val Cooper, Alex Levin and Garri Smith with money laundering conspiracy and conspiracy to violate the Travel Act in connection with their roles in a scheme to steal over $30 million in cash and other valuables from safe deposit boxes located at banks abroad, primarily in Eastern Europe. The defendants were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Office (HSI); and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“The defendants and their co-conspirators were allegedly part of a sophisticated network of criminals that used high-tech camera equipment to steal millions in cash and other valuables from victims who had tried to protect their property by using safe deposit boxes in foreign countries, and they then laundered the proceeds of their scheme through the United States financial system,” stated Acting United States Attorney Lesko. “This Office will hold accountable anyone who uses our financial system to commit fraud and theft here or abroad.” Mr. Lesko expressed his grateful appreciation to the European Union Agency for Law Enforcement Cooperation (Europol), and the governments of Azerbaijan, Latvia, Moldova, North Macedonia, Ukraine and Uzbekistan for their assistance in the investigation.
“The crimes we allege in this indictment read like something straight out of Hollywood fiction,” stated FBI Assistant Director-in-Charge Sweeney. “The thieves used sophisticated tools to thwart security systems at foreign banks and tried to cover their tracks by laundering money through U.S. banks. However, thanks to the outstanding work of our FBI Eurasian Organized Crime Task Force and our international partners, these criminals now face real federal charges and the possibility of real time in federal prison.”
“Using state of the art technology, these modern-day bank robbers allegedly exploited small, unsophisticated banks to gain access to safety deposit boxes and looted $30 million in other people’s cash and valuables. Cooper, Levin and Smith then used bank accounts located in the United States, to launder the proceeds of their illegal activities,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI is proud to work along-side our domestic and international law enforcement partners, including the United States Attorney’s Office, EDNY, and will utilize our unique and broad authorities to bring to justice those who engage in criminal activity for their own financial gain. These defendants must now face our system of justice and answer to the allegations contained in the indictment.”
As set forth in the indictment and court filings, between March 2015 and October 2019, the defendants and their co-conspirators allegedly stole over $30 million in cash and other valuables from safe deposit boxes at banks in multiple foreign countries, including the Ukraine, Russia, North Macedonia, Moldova, Latvia, Uzbekistan and Azerbaijan. The co-conspirators targeted foreign banks that appeared to lack security features, including video surveillance cameras in certain areas. After a bank was selected, they rented safe deposit boxes at the location by posing as customers. The co-conspirators entered the safe deposit box rooms of the targeted banks and used sophisticated camera equipment, including borescopes that are typically used in medical procedures, to photograph the insides of locks of safe deposit boxes belonging to other individuals. Another co-conspirator used these photographs to create duplicate keys, and then other co-conspirators used the duplicate keys to open the victim safe deposit boxes in order to steal the contents, including currency, gold bars, jewelry and other property.
Cooper, the leader of the network, directed others, received stolen property and used his bank accounts in the United States to launder proceeds from the scheme. Levin used his bank accounts in the United States to purchase camera equipment used in some of the thefts and also to launder the proceeds. Smith committed some of the safe deposit box thefts himself, flying from the United States to foreign countries to steal property from victim safe deposit boxes at the targeted banks.
Earlier today, agents executed a search warrant at, among other places, Cooper’s residence. There, agents discovered, among other things, safe deposit box keys with no numbering on them, cash, jewelry and high-end handbags. Agents also searched a storage unit in Brooklyn controlled by Cooper and found a borescope and a safe deposit box lock.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of money laundering conspiracy, the defendants face up to 20 years’ imprisonment.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level money launderers 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.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman, Andrey Spektor and Joy Lurinsky are in charge of the prosecution, assisted by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit.
The Defendants:
VAL COOPER (also known as “Val Konon” and “Valeriy Kononenko”)
Age: 56
Brooklyn, New YorkALEX LEVIN
Age: 52
Brooklyn, New YorkGARRI SMITH (also known as “Igor Berk” and “Igor Berkovich”)
Age: 49
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-208 (LDH)
Statement of Attorney General Merrick B. Garland on the Verdict in the Chauvin TrialRead the Press Release
U.S. Attorney General Merrick B. Garland's statement following the verdict in the state of Minnesota's trial of Derek Chauvin:
"The jury in the state trial of Derek Chauvin has fulfilled its civic duty and rendered a verdict convicting him on all counts. While the state’s prosecution was successful, I know that nothing can fill the void that the loved ones of George Floyd have felt since his death. The Justice Department has previously announced a federal civil rights investigation into the death of George Floyd. This investigation is ongoing."
Statement of Acting U.S. Attorney Juan Antonio Gonzalez on the Verdict in the Chauvin TrialRead the Press Release
MIAMI – Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez's statement following the verdict in the state of Minnesota's trial of Derek Chauvin:
“Today, a Minneapolis jury found former police officer Derek Chauvin guilty of murdering George Floyd. While no verdict can bring Mr. Floyd back to his family, I pray that today's decision brings them a measure of peace and all people a renewed faith in our justice system. As Attorney General Merrick Garland recently announced, the Department of Justice's federal civil rights investigation into the death of George Floyd is ongoing. Also ongoing is the commitment of the U.S. Attorney's Office for the Southern District of Florida to strengthening trust between law enforcement and our community, holding all those who break civil rights laws accountable, and seeking justice on behalf of all victims.”
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St. Louis man pleads guilty to charges related to drug-trafficking ringRead the Press Release
ST. LOUIS – Darryl Lennell Moore, 32, of St. Louis Missouri, pleaded guilty to two counts of conspiracy to distribute and possess with the intent to distribute a controlled substance, one involving fentanyl, the other involving methamphetamine. Moore also pleaded guilty to an additional count of possession with the intent to distribute methamphetamine. Moore appeared, today, before United States District Court Judge Ronnie L. White.
Beginning in 2016, the Drug Enforcement Administration and St. Louis County Police Department were actively investigating the distribution of large quantities of fentanyl and crystal methamphetamine in the St. Louis Metropolitan Area. Moore conspired with members of the conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl and more than 50 grams of almost pure methamphetamine.
At the height of the conspiracy, nine co-conspirators were involved and would distribute more than 20,000 doses of fentanyl per week. Distribution occurred using "runners" who also provided armed protection for the co-conspirators. Moore was primarily responsible for supplying the drugs for the conspiracy.
Judge White has set sentencing for July 22, 2021.
The St. Louis County Police Department and Drug Enforcement Administration investigated the case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Sioux City Woman Pleads Guilty to COVID-19 Related Unemployment FraudRead the Press Release
A Sioux City woman who stole government funds using a COVID-19 unemployment scheme pled guilty on April 20, 2021, in federal court in Sioux City.
Linda Bosquez, age 59, from Sioux City, Iowa, was convicted of theft of government funds. In a plea agreement, Bosquez admitted that from April 30, 2020 through July 22, 2020, she stole at least $24,235 from the United States Department of the Treasury.
Bosquez falsely claimed, in her name and those of others, unemployment benefits, through the States of Arizona, Georgia, Michigan, and Ohio, including benefits related to COVID-19 relief funds to which she was not entitled.
Bosquez received a total of at least 35 ACH credits (electronic deposits) for unemployment insurance claims (32 from Georgia, 1 from Michigan, 1 from Ohio, and 1 from Arizona). Bosquez made approximately 11 cash withdrawals following unemployment insurance credits, totaling approximately $27,299.30. Bosquez was receiving benefits from other states via ACH and prepaid cards in the names of other individuals, while she was also receiving Social Security Disability Insurance (SSDI) benefits.
The case was prosecuted by United States Attorney Ron Timmons and was investigated by the United States Department of Labor and the Office of Inspector General and the Federal Bureau of Investigation.
Rooting out COVID-19 fraud is a priority of the Department of Justice. On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits.
These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sentencing for Bosquez will be before United States District Court Chief Judge Leonard T. Strand and will be set after a presentence report is prepared. Bosquez will remain free on bond pending sentencing. Bosquez faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4029.
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Shequille Carter Sentenced to Five Years in Prison for Federal Drug OffenseRead the Press Release
The Acting United States Attorney for the District of Vermont announced today that Shequille Carter, 28, was sentenced to 60 months in prison for possessing with intent to distribute heroin, fentanyl, and more than 28 grams of cocaine base. Chief Judge Geoffrey Crawford also ordered that Carter serve a four-year period of supervised release following the prison term.
According to court documents and evidence presented at trial, on August 21, 2019, Carter traveled with two others from the Burlington area to a St. Johnsbury residence linked to drug trafficking. After a brief stop at the residence, Carter and the others were driving back toward Burlington when a Vermont State Trooper stopped their car for a traffic infraction. A search of the car’s interior yielded approximately 290 bags of heroin laced with fentanyl and approximately 41 grams of crack cocaine. The drugs were recovered from a center console in the rear seat of the vehicle, where Carter had been sitting. Carter also had $3,071 in cash on his person. In Carter’s cellphone, investigators found text messages and other entries indicative of drug-trafficking, including messages arranging sales of heroin and cocaine. A federal jury in Rutland convicted Carter of this offense following a two-day trial in September of 2020.
At the time of Carter’s drug trafficking activity in Vermont, he was serving a term of supervised release following a prior federal conviction for conspiracy to distribute marijuana sustained in the Southern District of New York. Carter subsequently failed to appear for revocation proceedings in the Southern District of New York, and absconded supervision. On January 2, 2020, DEA agents located and arrested Carter in Burlington, Vermont. Carter faces additional proceedings in the Southern District of New York related to his supervised release violations.Acting United States Attorney Jonathan Ophardt commended the investigative efforts of the Drug Enforcement Administration (DEA), the Vermont State Police, the Burlington Police Department, and the assistance of the Vermont Drug Task Force.
Carter is represented by Assistant Federal Public Defender Elizabeth Quinn and Federal Public Defender Michael Desautels. The prosecutors are Assistant U.S. Attorneys Gregory Waples and Spencer Willig.Schenectady Woman Sentenced for Stealing More Than $95,000 in Social Security BenefitsRead the Press Release
ALBANY, NEW YORK – Jody Lyons, age 54, of Schenectady, New York, was sentenced on Friday to 2 years of probation for stealing Social Security benefits paid into her deceased mother’s bank account.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA), Office of the Inspector General, New York Field Office.
As part of her earlier guilty plea, Lyons admitted that beginning in January 2015 (the month of her mother’s death), Lyons withdrew and spent Social Security benefits that continued to be deposited into her mother’s bank account until August 2018, when the SSA learned of the death and benefit payments ceased. Lyons also admitted that she withdrew and spent her mother’s Social Security benefits despite knowing that the benefits were intended for her mother, and that Lyons was not entitled to the money.
United States District Judge Mae A. D’Agostino also ordered Lyons to pay full restitution to the SSA in the amount of $95,961 and to complete 50 hours of community service.
This case was investigated by the SSA Office of the Inspector General and prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Rapid City Man Found Guilty of Fifteen Internet Crimes Against ChildrenRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Kyle Garret Soto, 34, of Rapid City, South Dakota, was convicted of five counts of Sexual Exploitation of a Minor, one count of Attempted Sexual Exploitation of a Minor, six counts of Enticement of a Minor Using the Internet, two counts of Receipt of Child Pornography, and one count of Possession of Child Pornography following a week-long federal jury trial held in U.S. District Court in Rapid City. The guilty verdicts were returned on April 16, 2021.
Between February 2014 and April 2018, Soto engaged in prolific sexual activity with numerous minors over the internet, including demanding, receiving, and sending pornographic images and videos. Soto threatened to distribute the minors’ images and videos online if they failed to comply with his ultimatums to provide him with additional pornographic items. Subsequent to his arrest in April 2018, forensic examination of Soto’s devices revealed hundreds of images of child pornography. Soto’s victims ranged in age from approximately 7 years old to 15 years old.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Department of Homeland Security, Pennington County Sheriff’s Office, Rapid City Police Department, Rhode Island Internet Crimes Against Children Task Force, and the New Mexico Office of the Attorney General.
Assistant U.S. Attorneys Sarah Collins and Heather Sazama prosecuted the case.
Quad Cities Man Sentenced to 18 Years in Prison for Heroin Distribution Resulting in DeathRead the Press Release
ROCK ISLAND, Ill. – Chief U.S. District Judge Sara Darrow sentenced Ajayi Marcel McIntyre, 42, on April 13, 2021, to serve 18 years in federal prison for distribution of heroin in April 2018, that resulted in the death of an East Moline, Ill., man. According to court documents, the heroin McIntyre distributed on April 17, 2018, was subsequently given to Kyle Medinger, who used the heroin and died of a heroin overdose.
McIntyre pleaded guilty on Sept. 16, 2020, to two counts of distribution of heroin in Rock Island County. McIntyre has remained in the custody of the U.S. Marshals Service since he was charged in a federal indictment in June 2018.
Two individuals related to this incident, David Flores and Ashley Gengler, were charged in Rock Island County court.
The Moline Police Department; the Quad City Metropolitan Enforcement Group; and, the Milan Police Department conducted the investigation of the case. Assistant U.S. Attorney Jennifer L. Mathew prosecuted the case in cooperation with the Rock Island County State’s Attorney’s Office.
Powder Springs man indicted for laundering over two million dollars in proceeds from a Business Email Compromise schemeRead the Press Release
ATLANTA - Denis Onderi Makori has been indicted on charges relating to a business email compromise (BEC) scheme targeting a Pennsylvania university and allegedly defrauding it out of more than $2 million.
“Business email compromise schemes pose a severe risk of financial loss to public and private institutions alike,” said Acting U.S. Attorney Kurt R. Erskine. “In this case, Makori allegedly helped orchestrate a scheme that caused a university to transfer unknowingly over $2 million to bank accounts he controlled.”
“BEC schemes like this alleged one are a big reason why the Georgia Cyber Fraud Task Force, comprised of federal, state and local agencies, was launched in February,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It takes a combination of education and our priority to investigate and prosecute these cases to make it a deterrent to those who contemplate committing these crimes.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Various individuals allegedly engaged in a fraudulent BEC scheme to cause a university located in Pennsylvania to send payments totaling more than $2 million via Automated Clearing House (ACH) to a bank account controlled by Makori, rather than to the intended beneficiary of such payments, a medical supply company based in Alpharetta, Georgia.
In furtherance of the scheme, a fraudulent email was allegedly sent to the university that purported to be from the medical supply company. The fraudulent email allegedly contained ACH payment instructions that directed the university to transfer payments to an account that purportedly belonged to the medical supply company. The university then transferred more than $2 million dollars to the bank account allegedly controlled by Makori. Then, Makori allegedly moved and laundered the funds between and among bank accounts associated with his logistics company, and then to bank accounts in Kenya, to himself, and to other persons associated with him.
Denis Onderi Makori, 34, of Powder Springs, Georgia, was indicted by a federal grand jury on April 20, 2021. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. U.S. Customs and Border Protection Chicago Field Office provided valuable assistance in this case.
Assistant U.S. Attorney Ryan M. Christian is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pleasant Hills Felon Indicted for Violating Federal Firearms and Narcotics LawsRead the Press Release
PITTSBURGH, PA – A resident of Pleasant Hills has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms & narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Marvin L. Sheppard III, age 27, as the sole defendant.
According to Indictment, on or about March 13, 2021, Marvin L. Sheppard III, a convicted felon, possessed a firearm and ammunition. Federal law prohibits a convicted felon from possessing a firearm or ammunition. On or about March 25, 2021. Sheppard possessed with the intent to distribute 10 grams or more of an analogue of fentanyl and a quantity of fentanyl.
At each count, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00 or both, for the firearm charge. For the drug charge, the law provides for a sentence of not less than 10 years in prison, a fine of not more than $10,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosive and the Brentwood Borough Police Department conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Admits Conspiring to Export Firearms Parts from United States to Turkey and Republic of GeorgiaRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, Acting U.S. Attorney Rachael A. Honig announced.
Samet Doyduk, 35, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to violate the Arms Export Control Act and anti-smuggling laws.
According to the documents filed in this case and other cases and statements made in court:
Doyduk admitted that from November 2018 through March 2019, he and other conspirators agreed to ship firearms parts from the United States to Turkey and the Republic of Georgia. Doyduk and others used credit cards, Pay-Pal accounts, and other forms of payment to purchase firearms parts from suppliers in the United States. Doyduk and the other conspirators would then repackage the firearms parts, falsely label the contents of the package, and export the firearms parts to their customers in Turkey and the Republic of Georgia. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, the customers in Turkey and in the Republic of Georgia paid Doyduk and the other conspirators by international wire transfers or directly paid one of the conspirators in cash while that individual was in Turkey. The firearms parts included upper receivers, barrels, and magazines for several different types of Glock handguns, including Glocks in the following calibers: 9mm, .40 caliber, and .357 caliber.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State. Doyduk and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to Turkey and the Republic of Georgia without the required export license.
The conspiracy charge to which Doyduk pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 23, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), Cherry Hill Resident Agency, under the direction of Special Agent in Charge Jason J. Molina in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s guilty plea. She also thanked HSI agents in Ankara, Turkey and Frankfurt, Germany; U.S. Customs and Border Protection (CBP) and U.S. Postal Inspection Services, JFK airport, for their assistance.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Palm Beach Tax Preparer Indicted for Tax FraudRead the Press Release
Miami, Florida – A Palm Beach County man appeared on Thursday, April 15, 2021, before Federal Magistrate Judge William Matthewman in West Palm Beach to face an indictment charging him with two counts of filing a false individual tax return for tax years 2014 and 2015; and one count of failing to file an individual tax return for tax year 2016.
According to the indictment, Kasali Opabola, Jr. of Palm Beach County, Florida, managed a tax return preparation organization FTP Tax Solutions, LLC. It is alleged that Opabola, Jr. falsely underreported the total income and gross receipts for FTP Tax Solutions, and that Opabola, Jr. knew that the total income and gross receipts were substantially greater than the reported amount.
If convicted of all counts, Opabola, Jr. faces up to 3 years of imprisonment as to Counts 1 and 2 and up to 1 year as to Count 3.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office made the announcement.
This case is being investigated by IRS-CI Miami. The case is being prosecuted by Assistant United States Attorney Robin Waugh.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80042.
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Oklahoma City Man Sentenced to Serve More Than Twenty-Four Years in Federal Prison for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Last week, ROLANDO CIFUENTES-LOPEZ, 37, of Oklahoma City, was sentenced to serve more than 24 years in federal prison for child sex trafficking, announced Acting U.S. Attorney Robert J. Troester.
On November 20, 2019, Cifuentes-Lopez was stopped by the Oklahoma City Police Department and arrested by Homeland Security Investigations when it was determined he was undocumented and lacked legal status in the United States. On December 4, 2019, a federal grand jury returned a two-count Indictment against Cifuentes-Lopez, charging him with child sex trafficking of two children, aged 14 and 15. According to court documents, Cifuentes-Lopez recruited, obtained, harbored, and patronized the child victims, knowing they would be caused to engage in commercial sex acts. Cifuentes-Lopez owned the trailer where the two child victims lived and threatened to evict their family if he and other men were not provided with sex. He engaged in this conduct with one child between November 2016 and January 18, 2019, and with the second child between March 2018 and January 18, 2019.
On March 9, 2020, Cifuentes-Lopez pleaded guilty to both counts of child sex trafficking.
On April 16, 2021, U.S. District Judge Charles B. Goodwin sentenced Cifuentes-Lopez to serve 292 months in federal prison, followed by five years of supervised release. In addition, Judge Goodwin ordered Cifuentes-Lopez to pay $10,200 in special assessments and stated that restitution for the victims will be determined at a subsequent hearing. In imposing the sentence, Judge Goodwin noted that Cifuentes-Lopez had exerted undue influence over the children and had engaged in a pattern of prohibited sexual conduct.
Two other defendants in this investigation have already been sentenced, both for sex trafficking of the same children. On October 21, 2020, ERI LEONARDO CIFUENTES-LOPEZ, 42, of Oklahoma City, was sentenced to more than 24 years in prison, followed by five years of supervised release. On February 11, 2021, WILSON GRAMAJO-MALDONADO, 30, of Oklahoma City, was sentenced to 27 years in prison, followed by five year of supervised release. In addition to those terms of incarceration, Judge Goodwin ordered both Eri Cifuentes-Lopez and Gramajo-Maldonado to pay $5,100 in special assessments.
Upon their release from prison, all three men will be required to register as sex offenders.
"Sex trafficking of children is a horrendous crime that preys upon the most vulnerable in our society and steals their innocence," said Acting U.S. Attorney Troester. "Prosecuting those who exploit child victims rescues child victims from the abusive life of sex trafficking and helps them reclaim their lives. I commend the incredible work by the prosecutors, Federal Bureau of Investigation, Homeland Security Investigations, and Oklahoma City Police Department in holding accountable those who sell children for sex."
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division, U.S. Homeland Security Investigations, and the Oklahoma City Police Department. Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to public filings for more information.
Ocean County Man Admits Operating an Illegal Lottery and Filing False Tax ReturnRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey man today admitted operating an illegal lottery and failing to pay more than $65,000 in federal taxes on his earnings from the scheme, Acting U.S. Attorney Rachael A. Honig announced.
Edward O’Neill, 54, of Beachwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of managing an illegal gambling business and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between 2014 and 2019, O’Neill managed an illegal lottery in Hudson County that was based on the New Jersey Lottery Commission’s Pick Six. Participants in the illegal lottery paid a $20 entry fee and selected six numbers between 1 and 49. The first participant in the illegal lottery to have all six of their numbers selected in the official Pick Six drawing won a cash prize. For each drawing of the illegal lottery, O’Neill collected entry fees and participants’ numbers and entered the numbers into ledgers, which included identifying information for each participant and the numbers each participant had selected. O’Neill monitored the numbers selected in the official Pick Six and, when there was a winner of the illegal lottery, caused the winning participant to be paid in cash.
According to the ledgers, each drawing of the illegal lottery included up to 8,000 participants and the cash prize for each drawing often exceeded $100,000. In exchange for operating and managing the illegal lottery, O’Neill kept for himself 10 percent of the winnings from each drawing. O’Neill admitted that he failed to account for approximately $250,000 in cash winnings from the illegal lottery on tax returns he filed with the IRS between 2014 and 2018, causing him to underpay his federal incomes taxes by $65,674.
The gambling charge to which O’Neill pleaded guilty carries a maximum penalty of five years in prison, while the subscribing to a false federal income tax return count is punishable by up to three years in prison. Both charges carry a potential fine of $250,000 or twice the gross gain or loss from the offenses, whichever is greater. Sentencing is scheduled for Aug. 25, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
North Bend Man Arrested and Charged with Sexually Exploiting a Child, Additional Potential Victims SoughtRead the Press Release
PORTLAND, Ore.—Acting U.S. Attorney Scott Erik Asphaug announced today that a North Bend, Oregon, man has been charged with sexually exploiting a minor female victim.
On April 15, 2021, a federal grand jury in Eugene returned a three-count indictment charging Shannon Stacey Weatherbee, 47, with sexual exploitation of children.
According to the indictment, beginning around July 2017, Weatherbee is alleged to have knowingly coerced a minor female to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. These visual depictions were transmitted online.
On April 16, 2021, investigators arrested Weatherbee while executing a search warrant on his North Bend residence.
Weatherbee made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin on June 22, 2021.
This case is being investigated by the FBI with assistance from the North Bend Police Department. It is being prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about possible crimes committed by Weatherbee, or the physical or online exploitation of any children, are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
If a child discloses an incident that did happen to him or her, or that they observed happen to someone else, the parent should not ask the child detailed questions about the incident. Instead, please contact your local law enforcement agency or the FBI immediately.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Member of Narcotics Conspiracy Sentenced to More Than Three Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Kris Ralf Salvi (27, Tampa) to three years and four months in federal prison for conspiracy to distribute and possess with the intent to distribute fentanyl.
Salvi had pleaded guilty on January 21, 2021. In September 2020, Salvi and nine others were charged in this case. The remaining cases are pending.
According to court documents, between April 14 and May 27, 2020, Salvi purchased two ounces of fentanyl from one of his co-defendants across a series of four transactions.
This case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, the Florida Highway Patrol, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Charlie D. Connally.
This investigation is also the result of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Massachusetts Eye and Ear Agrees to Pay $2.6 Million to Resolve False Claims Act AllegationsRead the Press Release
BOSTON – Massachusetts Eye and Ear Infirmary, Massachusetts Eye and Ear Associates, Inc., and the Foundation of the Massachusetts Eye and Ear Infirmary, Inc. (collectively “Massachusetts Eye and Ear”) have agreed to pay $2.678 million to resolve allegations that they violated the False Claims Act.
Massachusetts Eye and Ear provides inpatient and outpatient services to patients with a range of ailments involving the eye, ear, nose and throat. Over an eight-year period, Massachusetts Eye and Ear improperly billed federal health care programs for certain office visits, defrauding the United States of more than a million dollars.
“When health care providers submit improper claims to Medicare and Medicaid, they do two bad things: they unjustly enrich themselves, and they drain money needed for legitimate patient care,” said Acting United States Attorney Nathaniel R. Mendell. “This settlement punishes bad billing and helps safeguard government health care programs from fraud, waste and abuse.”
“Our federal healthcare system relies on the basic premise that providers abide by the rules and bill properly, and the American taxpayers who fund the Medicare and Medicaid programs deserve nothing less,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “Today’s announcement demonstrates our continued and unwavering commitment to rooting out false claims that threaten the integrity of our healthcare system.”
“Mass Eye and Ear received more than a million dollars from fraudulently billing federal healthcare programs over the course of eight years, undermining the integrity of our healthcare system, and increasing the financial burden on hard-working taxpayers,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We would like to thank the patient who had the courage to come forward with allegations of illegal conduct, and we’d like to encourage others to do the same because standing up for what’s right and safeguarding taxpayer dollars is critical, given that every year, the submission of false claims to the government costs taxpayers billions.”
The United States contends that between Jan. 1, 2012 and Feb. 1, 2020, Massachusetts Eye and Ear regularly submitted claims to Medicare and MassHealth—Massachusetts’s Medicaid program—for office visits at which physicians performed certain medical procedures, specifically, nasal endoscopies and laryngoscopies. Medicare and MassHealth do not permit billing for such office visits in addition to billing for the procedures, except under special circumstances that were not present here. As a result of the illegal conduct, Massachusetts Eye and Ear obtained reimbursements to which it was not entitled.
The False Claims Act settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive 15 percent of the recovery.
Acting U.S. Attorney Mendell, HHS-OIG SAC Coyne and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys Steven Sharobem and Charles Weinograd of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Manchester Woman Pleads Guilty to Participating in Drug Trafficking ConspiracyRead the Press Release
CONCORD – Melissa Gazaway, 33, of Manchester, pleaded guilty in federal court to conspiracy to distribute, and possess with intent to distribute, fentanyl and crack cocaine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the spring of 2020, investigators received information from confidential sources that Gazaway and her co-defendants, Jovan and Chrystal Callaghan, were selling crack cocaine and fentanyl from their residence in Manchester. Law enforcement officers learned that Gazaway and Chrystal Callaghan would travel to New York to purchase crack cocaine. On three separate occasions, officers conducted lawful traffic stops of their vehicle returning from New York and seized over 300 grams of crack cocaine. In late 2020, confidential sources conducted six controlled purchases of fentanyl and crack cocaine from the three co-defendants.
On December 24, 2020, investigators executed a search warrant at the residence and seized over one kilogram of fentanyl and a firearm, along with large amounts of cash and drug use and packaging materials.
Jovan and Chrystal Callaghan previously pleaded guilty and are scheduled to be sentenced on July 6, 2021.
Gazaway is scheduled to be sentenced on August 9, 2021.
“Drug trafficking continues to threaten public health and safety in communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “In order to protect the citizens of the Granite State, we are working closely with our law enforcement partners to stop the flow of illegal drugs into New Hampshire. Today’s conviction is another example of our efforts to target the drug dealers who seek to profit from the sale of fentanyl and other dangerous drugs.”
This matter was investigated by the Drug Enforcement Administration, the New Hampshire State Police, the Manchester Police Department, and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Madison County man charged with making online threats to kill individuals connected with abortion services non-profitRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged James David Hampton, 40, of London, Ohio, with 10 counts of making online threats to individuals connected with a non-profit organization whose mission is to help people access safe abortions.
According to the indictment, on Aug. 26, 2020, Hampton searched “Abortion Support Network” on Facebook and commented on the ASN page, in part, “we kill scum like you…we follow you…we stalk you…then we kill you” and “there will be no pity when I myself stand over your cowering body as you beg and weep for your own life…just before I cut your throat.”
Hampton allegedly added, “we know where you live..your routines..we kidnap your kind…we torture you for information.”
The indictment details that Hampton allegedly made 10 separate, explicit threats to individuals online.
Hampton appeared in federal court today to be arraigned on the indictment charges.
Transmitting threats in interstate communication is a federal crime punishable by up to five years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant Deputy Criminal Chief Jessica W. Knight is representing the United States in this case.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty in a court of law.
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Logan County Man Sentenced to 10 Years in Federal Prison for Drug Trafficking and Illegal Possession of A FirearmRead the Press Release
BOWLING GREEN, KY. – Chief United States District Judge Greg Stivers yesterday sentenced Kenneth S. Embry, age 34, to 120 months’ imprisonment, followed by five years of supervised release, announced Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky. Embry pled guilty to the charges of Possession with the Intent to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person on February 2, 2021. There is no parole in the federal system.
“I appreciate and commend the outstanding work of the South Central Kentucky Drug Task Force and HSI in this case,” said Acting U.S. Attorney Bennett. “The task force officers and federal agents assigned to the case, working together with AUSA Yurchisin, ensured a successful prosecution which resulted in the removal of a dangerous individual from the Western District of Kentucky.”
In the plea agreement, Embry admitted that on April 2, 2020, he knowingly possessed with the intent to distribute, greater than fifty (50) grams of actual methamphetamine. He also admitted that he knowingly possessed a firearm, identified as a Colt .380 semiautomatic pistol and ammunition, after having previously been convicted of the felony offense of Possession of a Controlled Substance-1st Degree, Second Offense, on or about October 29, 2019, in Logan County Circuit Court.
The case was prosecuted by Assistant United States Attorney Mark J. Yurchisin II of the United States Attorney’s Bowling Green Branch Office. The investigation was conducted by the South Central Kentucky Drug Task Force and Homeland Security Investigations (HSI).
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La Crosse Felon Sentenced to 51 Months for Possessing GunRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Martin Curlee, 39, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James Peterson to 51 months in federal prison for being a felon in possession of a firearm. Curlee pleaded guilty to this charge on January 7, 2021.
On October 8, 2020, La Crosse police were called to respond to Curlee walking around with a loaded 9mm pistol in his hand. When contacted by officers, he threw the gun on the ground. Curlee admitted to being a felon and knew that he should not have the gun, but claimed it was for protection. Officers noted that Curlee appeared paranoid and thought that he was going to get shot in the jail.
At sentencing, Judge Peterson said that Curlee had a substantial criminal history and noted that his mental health issues were exacerbated by drug abuse. Judge Peterson found that Curlee posed a danger because he chose to arm himself against imagined threats, therefore protection of the community was the number one goal in the sentence. Because of that, Judge Peterson determined that a longer period of incarceration was appropriate and also imposed the maximum 3-year term of supervised release.
The charge against Curlee was the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Kansas City Man Sentenced to Prison for Gun and Drug ChargesRead the Press Release
COUNCIL BLUFFS, IA – On April 19, 2021, United States District Court Chief Judge John A. Jarvey sentenced D'Ante Decarl Dirks, age 26, of Kansas City, Missouri, to 132 months in prison for distributing methamphetamine, carrying a firearm in relation to drug trafficking and knowingly in possession of a firearm as a felon announced Acting United States Attorney Richard D. Westphal. Dirks was ordered to serve four years of supervised release to follow his prison term and pay $300 to the Crime Victims’ Fund. There is no parole in the federal system.
On July 7, 2020, the Iowa State Patrol conducted a traffic stop on a car driven by Dirks. As the Trooper attempted to issue a citation, Dirks sped off. In an effort to elude law enforcement, Dirks drove in excess of 100 mph, drove into oncoming traffic, and passed on the shoulder of the highway until he was forced into a ditch in rural Mills County. Dirks ran from the scene and threw a loaded handgun into a nearby cornfield.
A search of the car Dirks was driving located marijuana, synthetic marijuana, powder cocaine and cocaine base (crack cocaine). Further investigation revealed Dirks intended to sell the drugs found in the car. Dirks pleaded guilty on December 4, 2020, to the gun and drug charges.
This investigation was conducted by the Iowa State Patrol, Mills County Sheriff’s Office, and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Iowa Drug Traffickers Sentenced to Federal PrisonRead the Press Release
COUNCIL BLUFFS, IA – On April 19, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jessica Joy Martinez, age 31, of Carroll, to 120 months in prison; Shaun Lee Walker, age 40, of Council Bluffs, to 135 months in prison; and Jonathan Samuel Dings, age 28, of Glidden, to 160 months in prison for Conspiracy to Distribute Methamphetamine announced Acting United States Attorney Richard D. Westphal. Each defendant was ordered to serve five years of supervised release to follow their prison terms and pay $100 to the Crime Victims’ Fund. There is no parole in the federal system.
On January 10, 2020, Carroll County law enforcement served a search warrant on Dings’ residence in Glidden. While conducting the search, law enforcement learned Martinez and Walker planned to supply Dings – that day – with approximately a pound of methamphetamine they obtained from Omaha, Nebraska. Dings was to sell the methamphetamine in Carroll and Audubon Counties. Law enforcement attempted to intercept the load car containing the methamphetamine that was driven by Walker with Martinez as a passenger, in Audubon, which resulted in a pursuit occurring before Walker and Martinez were arrested.
This investigation was conducted by the Carroll County Sheriff’s Office, Audubon County Sheriff’s Office, Audubon Police Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement and the Drug Enforcement Agency. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Houma Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – JUDE LEBOEUF, age 24, a resident of Houma, with previous felony convictions, was charged on April 16, 2021 in a one-count indictment by a Federal Grand Jury for possessing a firearm and ammunition while being a convicted felon, announced U.S. Attorney Duane A. Evans.
LEBOEUF has 9 previous felony convictions out of Terrebonne Parish, including charges for possession with intent to distribute narcotics and possession of a bomb.
If convicted, LEBOEUF faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Houma Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Mike Trummel.
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Hospital researcher sentenced to prison for conspiring to steal trade secrets, sell to ChinaRead the Press Release
press_release.pdfCOLUMBUS, Ohio – A former Dublin, Ohio man was sentenced to 33 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 51, pleaded guilty in December 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain. Zhou also conspired to commit wire fraud.
“Yu Zhou sought to exploit U.S. taxpayer dollars intended to fund critical, life-saving research at Nationwide Children’s Hospital through the whole-sale theft of their trade secrets,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Zhou’s greed was encouraged and enabled by a series of Chinese Government programs which incentivize thievery in an attempt to supplement China’s own research and development goals on the back of American ingenuity and investment. This successful prosecution should serve as a warning to anyone who seeks to profit from pilfering hard-earned U.S. trade secrets.”
“Yu Zhou willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Zhou and his wife executed a scheme over the course of several years to set up businesses in China, steal American research, and profit from doing so. The couple deserves the time it received in federal prison.”
According to court documents, Zhou and his co-conspirator and wife, Li Chen, 48, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital. Chen was sentenced in February to 30 months in prison for her role in the scheme.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from samples as small as one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
Zhou and Chen started a company in China to sell the kits.
The defendants received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. Zhou and Chen were also part of application processes related to multiple Chinese government programs, including talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
As part of their convictions, the couple will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. They were also ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus.
Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio; Assistant Attorney General John C. Demers for the National Security Division; and Special Agent in Charge Chris Hoffman of the FBI's Cincinnati Division announced the sentence imposed today by U.S. District Judge Sarah D. Morrison.
National Security Division Trial Attorney Matthew J. McKenzie, Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, and Special Assistant U.S. Attorney J. Michael Marous are representing the United States in this case.
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Hospital Researcher Sentenced to Prison for Conspiring to Steal Trade Secrets and Sell to ChinaRead the Press Release
WASHINGTON – An Ohio man was sentenced yesterday to 33 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 51, of Dublin, Ohio, pleaded guilty in December 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain. Zhou also conspired to commit wire fraud.
“Yu Zhou sought to exploit U.S. taxpayer dollars intended to fund critical, life-saving research at Nationwide Children’s Hospital through the whole-sale theft of their trade secrets,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Zhou’s greed was encouraged and enabled by a series of Chinese Government programs which incentivize thievery in an attempt to supplement China’s own research and development goals on the back of American ingenuity and investment. This successful prosecution should serve as a warning to anyone who seeks to profit from pilfering hard-earned U.S. trade secrets.”
“Yu Zhou willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Zhou and his wife executed a scheme over the course of several years to set up businesses in China, steal American research, and profit from doing so. The couple deserves the time it received in federal prison.”
According to court documents, Zhou and his co-conspirator and wife, Li Chen, 48, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital. Chen was sentenced in February to 30 months in prison for her role in the scheme.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from samples as small as one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
Zhou and Chen started a company in China to sell the kits.
The defendants received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. Zhou and Chen were also part of application processes related to multiple Chinese government programs, including talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
As part of their convictions, the couple will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. They were also ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus.
Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio; Assistant Attorney General John C. Demers for the National Security Division; and Special Agent in Charge Chris Hoffman of the FBI's Cincinnati Division announced the sentence imposed today by U.S. District Judge Sarah D. Morrison.
National Security Division Trial Attorney Matthew J. McKenzie, Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, and Special Assistant U.S. Attorney J. Michael Marous are representing the United States in this case.
Goldsboro Gang Leader Sentenced to 18 Years in Federal Prison for Crystal Methamphetamine TraffickingRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 216 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Methamphetamine and Distribution of 50 Grams or More of Methamphetamine, as well as Aiding and Abetting.
According to court documents, Tierea Demon Atkins, a/k/a “Red Dot,” 24, a local leader of the Bloods gang in Goldsboro, was responsible for the distribution of over 22 kilograms of crystal methamphetamine between May 2018 and February 2020. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and began by conducting controlled purchases of crystal methamphetamine from individuals supplied by Atkins. Several of the controlled purchases took place at a residence on East Pine Street in Goldsboro, which was a known hub of operations for Atkins’ drug trafficking organization. ATF then arranged for controlled purchases of methamphetamine directly from Atkins and his co-defendants. The investigation revealed that Atkins worked closely with Alexander Rickey Shaw, Jr., a/k/a “Ruger Red,” who was previously sentenced to 204 months’ imprisonment for his role in the methamphetamine trafficking.
The investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation, Carolina’s Ice Fall, which targeted large-scale methamphetamine dealers operating in and around Goldsboro. 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. To date, Operation Carolina’s Ice Fall has resulted in the prosecutions of 26 individuals for their role in methamphetamine distribution and other crimes.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The ATF, in conjunction with the Goldsboro Police Department, the Drug Enforcement Administration (“DEA”), and the Wayne County Sheriff’s Office, investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-355-D.
Four Philadelphians Charged with Sex Trafficking of MinorsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that John Adams, 41, Mercedes Hampton-Devero, 28, Malachai Kendall, 20, and Chukuw Ossai, 31, all of Philadelphia, PA, were arrested and charged in two separate Indictments with sex trafficking of minors. Kendall was also charged with both production and distribution of child pornography, and Adams was also charged with tampering with evidence in a federal investigation.
According to publicly filed court documents, Adams, whose self-professed nickname was “Captain Save-A-Hoe,” along with co-defendants Hampton-Devero and Kendall, trafficked two minors during approximately three weeks in January of 2020 from multiple locations in Philadelphia. The defendants allegedly used their cell phones to post advertisements of the victims on a website which is known to be used for advertising sexual services for a fee, directed the minors to participate in commercial sex acts, and took a portion of the proceeds on each occasion. During this time, Kendall also allegedly used his cell phone to record one of the minors performing oral sex on him and then sent the video to the minor victim. Also according to court documents, Adams and Kendall each coerced the minors into having sex with them on multiple occasions, and Hampton-Devero instructed one of the minor victims to record commercial sex acts on her cell phone for Devero to post online to attract more sex buyers. When the minors were rescued and Adams learned he was under investigation by the FBI, he allegedly wiped his cell phone clean of all incriminating evidence.
In a separate Indictment, Ossai is charged with the sex trafficking of a minor in late January 2020. According to public filings, Ossai trafficked one minor, took her to a lingerie store where he picked out lingerie for her, posted an advertisement of her on a website used to advertise sexual services for a fee, and harbored her in a hotel room in Lester, PA. As charged, Ossai drove the minor victim to a housing project in Philadelphia for her to engage in a commercial sex act, and he attempted to have sex with her himself. The minor was rescued from Ossai’s vehicle after he was pulled over in Tinicum Township.
“The crimes alleged in these Indictments will have a devastating and long-lasting impact on these minor victims,” said Acting U.S. Attorney Williams. “We will continue to work collectively with our law enforcement partners to investigate and prosecute these destructive crimes against vulnerable children.”
If convicted, each defendant faces a maximum possible sentence of life imprisonment.
These cases were investigated by the Federal Bureau of Investigation, with assistance from the Tinicum Township Police Department and the Philadelphia Police Department, and are being prosecuted by Assistant United States Attorney Erica Kivitz.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Supervisory U.S. Border Patrol Agent sentenced to 15 years in federal prison for production of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Jason Christopher Davis, 48, of Las Cruces, New Mexico, was sentenced in federal court on April 7 to 15 years in prison for production of child pornography. Davis pleaded guilty on Oct. 3, 2018.
According to Davis’ guilty plea and other court records, on May 17, 2015, Davis produced a pornographic video of a five-year-old child and uploaded the video onto his laptop computer. At the time of the offense, Davis was employed as a Supervisory U.S. Border Patrol Agent.
Upon his release from prison, Davis will be subject to 20 years of supervised release and will be required to register as a sex offender.
The Las Cruces office of Homeland Security Investigations, the Office of Inspector General of the U.S. Department of Homeland Security, and the Las Cruces Police Department investigated this case with assistance from the Office of Professional Responsibility of the U.S. Customs and Border Protection, the Management Inquiry Team of the U.S. Border Patrol, the FBI, and the New Mexico Attorney General’s Office.
Assistant U.S. Attorney Marisa A. Ong prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit justice.gov/psc. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437 or Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Inmate Admits Role in Scheme to use Drones to Smuggle Contraband into Fort Dix Federal PrisonRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted participating in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, and to possessing heroin and fentanyl with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Jason Arteaga-Loayza, aka “Juice,” 30, of Jersey City, New Jersey, a former inmate at Fort Dix, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count of conspiracy to defraud the U.S. Bureau of Prisons and one count of possession of heroin and fentanyl with the intent to distribute. Arteaga-Loayza, who was on federal supervised release at the time of the offenses, also pleaded guilty to violating the terms of his supervised release.
Three other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha;” Nicolo Denichilo; and Johansel Moronta also have been charged with participating in the scheme to use drones to smuggle contraband into Fort Dix prison.
According to the documents filed in this case:
Arteaga-Loayza, an inmate at Fort Dix from June 2017 to September 2018, participated in multiple drone deliveries of contraband into Fort Dix after his release from prison. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages that Arteaga-Loayza smuggled in included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments. Arteaga-Loayza also collected contraband for upcoming drone drops and stored it at his residence in Jersey City.
Arteaga-Loayza and his conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones.
Arteaga-Loayza and his conspirators used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops. A contraband cell phone used by Moronta, who was an inmate at Fort Dix, contained text messages with Arteaga-Loayza about the collection of profits from the sale of the contraband inside of the prison. In one exchange, Moronta messaged Arteaga-Loayza about an inmate, “Ok so I am tell him 10 phones and 100 baco [i.e. tobacco] he has to pay 10 bands and 500 on each phone?” Arteaga-Loayza responded, “And well even give him an ounce of weed tell him.” One of Arteaga-Loayza’s cell phones contained messages between him and Goolcharran coordinating drone drops. For example, in April 2019, Arteaga-Loayza sent Goolcharran marked-up aerial photos of Fort Dix to show Goolcharran where to drop the contraband. In another exchange, Arteaga-Loayza sent Goolcharran a message asking, “U think that u cud do something 2m.” Goolcharran replied, “2m too windy 20mph.”
During a search of Arteaga-Loayza’s residence on June 27, 2019, agents found a kitchen closet containing packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before a drone drop on Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. The kitchen closet also contained a Bugler tobacco box, consistent with the tobacco recovered in earlier drone drops. Arteaga-Loayza also had a suitcase in his bedroom that contained his driver’s license, 20 packets of Suboxone Sublingual Film, a prescription opiate, and a plastic bag containing over 21 grams of a substance containing heroin and fentanyl. Following the search of his home, Arteaga-Loayza moved and did not inform his probation officer of his whereabouts.
Arteaga-Loayza faces a maximum penalty of five years in prison and maximum fine of $250,000 for the conspiracy count, and 20 years in prison and a $1 million fine for the narcotics count. Arteaga-Loayza also faces a maximum penalty of two years in prison for violating the terms of his supervised release. Sentencing is scheduled for Sept. 9, 2021.
Acting U.S. Attorney Honig credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; Detachment 307, Office of Special Investigations, Department of the Air Force, under the direction of Special Agent Nick Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Daniel Helzner, with the investigation leading to the charges.
She also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden Lamine N’Diaye; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas J. Mahoney; and officers with the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; Pemberton Township Police Department, under the direction of Chief David King; and Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jeffrey J. Manis of the Office’s Special Prosecutions Division in Newark.
The charges and allegations contained in the criminal complaints issued against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Five Defendants Involved in SWGA Meth Trafficking Wiretap Case Plead GuiltyRead the Press Release
ALBANY, Ga.– Five defendants involved in the distribution of up to 13 kilograms of methamphetamine in southwest Georgia have pleaded guilty to their crimes in federal court, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
On Monday, April 19, Xavier Jordan, 32, of Cairo, Georgia, pleaded guilty to possession with intent to distribute methamphetamine. Tobias Sanders, 31, of Cairo, Georgia, pleaded guilty to pleaded guilty to one count conspiracy to possess with intent to distribute methamphetamine. On Thursday, April 15, R. Kevin Barrineau, 47, of Cairo, Georgia, pleaded guilty to one count conspiracy to possess with intent to distribute controlled substances. Joseph “Bae Bae” Jones, 31, of Cairo, Georgia, pleaded guilty to one count conspiracy to possess with intent to distribute controlled substances. On July 7, 2020, Phil Grim, 44, of Cairo, pleaded guilty to one count conspiracy to possess with intent to distribute controlled substances. All defendants entered their pleas before U.S. District Judge Leslie Gardner. All five defendants face a mandatory minimum of ten years to a maximum of life imprisonment to be followed by a minimum of five years of supervised release and a $10,000,000 fine. There is no parole in the federal system.
“Drug traffickers who distribute large quantities of methamphetamine in the Middle District of Georgia face steep federal prison sentences,” said Acting U.S. Attorney Leary. “I want to commend the GBI for conducting this significant investigation into methamphetamine trafficking in southwest Georgia and working to protect our communities from this poison.”
“The pleas of these defendants are the direct result of the effective partnership between our local, state and federal agencies. We will work tirelessly together to hold accountable drug dealers supplying our neighborhoods with poison. The GBI is dedicated to thoroughly investigating these crimes to lead to successful prosecution,” said GBI Director Vic Reynolds.
GBI agents conducted a wiretap investigation into the drug distribution activities of Jones, beginning in March 2019. The investigation revealed that Jones and his co-defendants were engaged in the distribution of methamphetamine in southwest Georgia. According to Jones’ signed plea agreement, the investigation into his methamphetamine distribution activities began when a police report was filed on December 13, 2017, with the Cairo Police Department about the kidnapping of Jones, Sanders and another individual. From that investigation, and subsequent video and undercover surveillance of Jones and co-defendants, law enforcement learned that Jones was a major methamphetamine supplier operating in Cairo.
Jones was taken into custody following a search of his residence on Alison Drive in Cairo on June 12, 2019. Inside the home, agents found a quantity of methamphetamine floating in the toilet and in the sewage line, $13,323 in cash, two handguns, digital scales and 16 cellular phones. In addition, written ledgers describing various transactions amounting to the distribution of 13 kilograms of methamphetamine were discovered in Jones’ vehicle. Co-defendant Jordan, acting under Jones’ direction as a courier and under surveillance, was arrested in possession of 1,850 grams of 98% pure methamphetamine on May 5, 2019. Co-defendant Grim was captured under surveillance purchasing quantities of methamphetamine from Jones and admitted in his signed plea agreement to seeing four to five pounds of methamphetamine during one encounter with Jones at his Alison Drive residence. Co-defendant Sanders was taken into custody following a June 12, 2019 search of his Marshall Street, Thomasville, Georgia, residence where agents found a quantity of methamphetamine, digital scales, two handguns and $1,923 in cash. In addition, Sanders was listed as a recipient of methamphetamine in Jones’ ledger book. Co-defendant Barrineau was intercepted in wiretaps purchasing quantities of methamphetamine from Jones.
The case was investigated by GBI. Assistant U.S. Attorney Leah E. McEwen prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.