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16 April 2021
Iowa Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that an Inwood, Iowa, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kyle William King, age 34, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on King, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between October 1, 2020, and February 8, 2021.
The charge is merely an accusation and King is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
King was remanded to the custody of the State pending trial. A trial date has not been set.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 13 was:
Khalil Lajuan Lyons, 19, of Eastpoint, Michigan, on charges of conspiracy to possess with intent to distribute oxycodone and fentanyl and possession with intent to distribute oxycodone and fentanyl. If convicted of the most serious crime, Lyons faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Lyons was detained pending further proceedings. The FBI, Bureau of Indian Affairs, Fort Peck Law Enforcement Services and Roosevelt County Sheriff’s Office investigated the case.
PACER case reference. 21-25.
Jason Tyrell Lee, 45, of Prior Lake, Minnesota, on charges conspiracy to possess and distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to commit money laundering and money laundering. If convicted of the most serious crime, Lee faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Lee was released pending further proceedings. The FBI, Drug Enforcement Administration, Roosevelt County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 21-11.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 13 was:
Leanna Martie Miranda, 52, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Miranda faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Miranda was released pending further proceedings. The FBI Transnational Organized Crime West Task Force investigated the case. PACER case reference. 21-15.
Appearing on April 15 was:
Christian Mikal David Bramley, 21, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Bramley faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bramley was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-09.
Larry Sylvester Hines, 41, of Billings, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Hines faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Hines was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-12.
Teisha Nicole West, 35, of Wichita Falls, Texas, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, West faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the fraud counts and two years in prison consecutive to any other crime, a $250,000 fine and one year of supervised release on the identity theft count. West was released pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 21-19.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Unsealed Charging Six Defendants with Conspiracy to Fraudulently Acquire Personal Protective Equipment and Event TicketsRead the Press Release
OKLAHOMA CITY – Earlier this week, an Indictment was unsealed charging six defendants with conspiracy to commit wire fraud in a scheme to fraudulently acquire personal protective equipment and event tickets, announced Acting U.S. Attorney Robert J. Troester.
On April 8, 2021, a federal grand jury returned a sealed Indictment against STEVEN MESROP, 29, of Richmond Hill, Ontario, Canada; MIRNA MAHROUS HABIB, 24, of Mississauga, Ontario, Canada; ROBERT VINNIK, 26, of Ontario, Canada; KATAYUN OSKOI, 24 of Ontario, Canada; CAROLINA MESROP, 23, of Ontario, Canada, and DIJON CORNELIUS SHEPARD, 27, of Los Angeles, California. All defendants were charged with conspiracy. In addition, Steven Mesrop and Vinnik are charged with wire fraud and aggravated identity theft.
According to the Indictment, Mesrop and his associates operated a scheme to use stolen credit card and identity information to induce businesses to provide goods and services, such as event tickets and personal protective equipment, to resell for a profit. At the onset of the COVID-19 pandemic, it is alleged that the conspirators began targeting U.S.-based businesses selling goods that were scarce due to the pandemic. The conspirators allegedly used stolen credit card information to purchase items such as nitrile gloves, masks, and gowns and to resell them to third parties. The Indictment alleges the conspirators operated the scheme from Canada, the Dominican Republic, Spain, Greece, and Dubai. The Indictment alleges the conspirators targeted sports teams and event venues throughout the United States and Canada, including Madison Square Garden in New York City.
The Indictment further alleges that Mesrop and his associates used 21 different alias email accounts and information from 52 stolen credit cards to purchase over 1,800 tickets to Oklahoma State University athletic events between November 2019 and January 2020. In March 2020, the conspirators allegedly used stolen credit card information to purchase approximately $18,000 worth of toilet paper from a paper supply company in Oklahoma City.
Mesrop was arrested on March 18, 2021, in Georgia. On March 24, 2021, Mesrop was ordered to be detained pending trial. On April 16, 2021, Shepard was arrested in Los Angeles, California. The other defendants remain at large.
If convicted of conspiracy or any wire fraud count, each defendant faces a term of imprisonment on each count up to 20 years. If convicted of aggravated identity theft, each defendant faces an additional two years in prison per count, to be served consecutively to a sentence on any other count of conviction. Each count of conviction also includes a fine up to $250,000.
This case is the result of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations New York’s El Dorado Task Force, the New York City Police Department, and the Irvine (California) Police Department, with assistance from Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney William Farrior.
The public is reminded these charges are merely accusations and that each defendant is presumed innocent unless proven guilty beyond a reasonable doubt. Attached is the Indictment the federal grand jury returned in this matter.
Reference is made to court filings for further information.
Hoover Criminal Gang Member Faces Drug and Gun Charges in Fentanyl Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—Aumontae Wayne Smith, 27, a known Hoover Criminal Gang member and resident of Portland, is facing federal drug and gun charges for his role in a fentanyl trafficking conspiracy, announced Acting U.S. Attorney Scott Erik Asphaug.
On April 6, 2021, a federal grand jury in Portland returned an indictment charging Smith with conspiring to distribute and possess with intent to distribute fentanyl, possessing with intent to distribute fentanyl, and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and testimony, Smith and an unnamed accomplice conspired with one another to distribute fentanyl disguised as oxycodone pills in and around Portland. Smith advertised selling the fake oxycodone pills and guns via Snapchat posts that were observed by law enforcement. Investigators seized six firearms from Smith and his accomplice and, with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Further investigation revealed Smith purchased 16 firearms since 2019 that linked to 17 different shootings in the Portland area between April and December 2020.
Smith voluntarily surrendered to law enforcement today and made his initial appearance in federal court before a U.S. Magistrate Judge. He was arraigned and pleaded not guilty. A three-day jury trial is scheduled to begin on June 15, 2021.
This case was investigated by the Portland Police Bureau, FBI, and ATF. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
High-level organizer of notorious hacking group FIN7 sentenced to ten years in prison for scheme that compromised tens of millions of debit and credit cardsRead the Press Release
Seattle – The first high-level manager of the notorious hacking group FIN7 was sentenced today in U.S. District Court in Seattle to ten years in prison, announced Acting U.S. Attorney Tessa A. Gorman. Fedir Hladyr, 35, a Ukranian national, served as a high-level manager and systems administrator for FIN7. He was arrested in Dresden, Germany, in 2018 at the request of U.S. law enforcement and was extradited to Seattle. In September 2019, he pleaded guilty to conspiracy to commit wire fraud and one count of conspiracy to commit computer hacking. At today’s sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said, “Cybercrime has become the greatest threat to American’s financial health, and to citizens around the globe.”
“This criminal organization had more than 70 people organized into business units and teams. Some were hackers, others developed the malware installed on computers, and still others crafted the malicious emails that duped victims into infecting their company systems,” said Acting U.S. Attorney Gorman. “This defendant worked at the intersection of all these activities and thus bears heavy responsibility for billions in damage caused to companies and individual consumers.”
According to records filed in the case, since at least 2015, FIN7 members (also referred to as Carbanak Group and the Navigator Group, among other names) engaged in a highly sophisticated malware campaign to attack hundreds of U.S. companies, predominantly in the restaurant, gaming, and hospitality industries. FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers which were used or sold for profit.
FIN7, through its dozens of members, launched numerous waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. FIN7 carefully crafted email messages that would appear legitimate to a business’s employees and accompanied emails with telephone calls intended to further legitimize the email. Once an attached file was opened and activated, FIN7 would use an adapted version of the notorious Carbanak malware in addition to an arsenal of other tools ultimately to access and steal payment card data for the business’s customers. Since 2015, many of the stolen payment card numbers have been offered for sale through online underground marketplaces.
In the United States alone, FIN7 successfully breached the computer networks of businesses in all 50 states and the District of Columbia, stealing more than 20 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. Additional intrusions occurred abroad, including in the United Kingdom, Australia, and France. Companies that have publicly disclosed hacks attributable to FIN7 include such familiar chains as Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin, and Jason’s Deli.
“These cyber thieves orchestrated an elaborate network of hackers and systems to infiltrate businesses and exploit consumers’ personal information,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “Their specialized skills to target certain industries amplified the damage exponentially. Thanks to the hard work of law enforcement partners both in the U.S. and overseas, these fraudsters are not beyond our reach and cannot hide from the law.”
Hladyr originally joined FIN7 via a front company called Combi Security—a fake cyber security company that had a phony website and no legitimate customers. Hladyr admitted in his plea agreement that he quickly realized that, far from being a legitimate company, Combi was part of a criminal enterprise. Hladyr served as FIN7’s systems administrator who, among other things, played a central role in aggregating stolen payment card information, supervising FIN7’s hackers, and maintaining the elaborate network of servers that FIN7 used to attack and control victims’ computers. Hladyr also controlled the organization’s encrypted channels of communication.
Speaking to the court, Hladyr said he had “ruined years of my life and put [his] family through great risk and struggle.”
Noting that cyber criminals must be deterred by significant sentences, Chief Judge Martinez said he was cognizant of the “ease of sitting at a keyboard and stealing money from people around the globe” and emphasized that would-be cybercriminals “must understand that, once caught, the punishment will be significant.” The judge also ordered Hladyr to pay $2.5 million in restitution.
This case is the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Attorney’s Office for the Western District of Washington, with the assistance of the Justice Department’s Computer Crime and Intellectual Property Section and Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as numerous international agencies. German law enforcement authorities provided significant assistance by arresting Hladyr.
This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington, and Trial Attorney Anthony Teelucksingh of the Justice Department’s Computer Crime and Intellectual Property Section.
High-Level Organizer of Notorious Hacking Group Sentenced to Prison for Scheme that Compromised Tens of Millions of Debit and Credit CardsRead the Press Release
A Ukrainian national was sentenced today in the Western District of Washington to 10 years in prison for his high-level role in the criminal work of the hacking group FIN7.
Fedir Hladyr, 35, served as a manager and systems administrator for FIN7. He was arrested in Dresden, Germany, in 2018, at the request of U.S. law enforcement and was extradited to Seattle, Washington. In September 2019, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer hacking.
“The defendant and his conspirators compromised millions of financial accounts and caused over a billion dollars in losses to Americans and costs to the U.S. economy,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Protecting businesses – both large and small – online is a top priority for the Department of Justice. The department is committed to working with our international partners to hold such cyber criminals accountable, no matter where they reside or how anonymous they think they are.”
“This criminal organization had more than 70 people organized into business units and teams. Some were hackers, others developed the malware installed on computers, and still others crafted the malicious emails that duped victims into infecting their company systems,” said Acting U.S. Attorney Tessa M. Gorman of the Western District of Washington. “This defendant worked at the intersection of all these activities and thus bears heavy responsibility for billions in damage caused to companies and individual consumers.”
“These cyber thieves orchestrated an elaborate network of hackers and systems to infiltrate businesses and exploit consumers’ personal information,” said Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office. “Their specialized skills to target certain industries amplified the damage exponentially. Thanks to the hard work of law enforcement partners both in the U.S. and overseas, these fraudsters are not beyond our reach and cannot hide from the law.”
According to documents filed in the case, since at least 2015, members of FIN7 (also referred to as Carbanak Group and the Navigator Group, among other names) engaged in a highly sophisticated malware campaign to attack hundreds of U.S. companies, predominantly in the restaurant, gambling, and hospitality industries. FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers that were then used or sold for profit. FIN7, through its dozens of members, launched waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. To execute its scheme, FIN7 carefully crafted email messages that would appear legitimate to a business’ employees, and accompanied emails with telephone calls intended to further legitimize the emails. Once a file attached to a fraudulent email was opened and activated, FIN7 would use an adapted version of the Carbanak malware, in addition to an arsenal of other tools, to access and steal payment card data for the business’s customers. Since 2015, many of the stolen payment card numbers have been offered for sale through online underground marketplaces.
In the United States alone, FIN7 successfully breached the computer networks of businesses in all 50 states and the District of Columbia, stealing more than 20 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. According to court documents, victims incurred enormous costs that, according to some estimates, totaled billions of dollars. Additional intrusions occurred abroad, including in the United Kingdom, Australia, and France. Companies that have publicly disclosed hacks attributable to FIN7 include such chains as Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin, and Jason’s Deli.
Hladyr originally joined FIN7 via a front company called Combi Security – a fake cyber security company that had a phony website and no legitimate customers. Hladyr admitted in his plea agreement that he soon realized that, rather than a legitimate company, Combi was part of a criminal enterprise. Hladyr served as FIN7’s systems administrator who, among other things, played a central role in aggregating stolen payment card information, supervising FIN7’s hackers, and maintaining the elaborate network of servers that FIN7 used to attack and control victims’ computers. Hladyr also controlled the organization’s encrypted channels of communication.
This case is the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Department of Justice. The Justice Department’s Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as a number of international agencies provided significant assistance. German law enforcement authorities provided significant assistance by arresting Hladyr.
This case was prosecuted by Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington.
Harrison County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Dustin Cain Anderson, of Clarksburg, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Anderson, 27, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Anderson, a person prohibited from having firearms, admitted to having a .22 caliber revolver in November 2020 in Upshur County.
Anderson is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Upshur County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hardin woman admits burning down house on Crow Indian ReservationRead the Press Release
BILLINGS — A Hardin woman today admitted charges accusing her of burning down a house that was being renovated on the Crow Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Vanessa Faith Prettyontop, also known as Vanessa Faith Gunshows, 34, pleaded guilty to arson as charged in an indictment. Prettyontop faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
U.S. District Judge Susan P. Watters presided. Prettyontop was released pending further proceedings. Sentencing has been set for Aug. 19.
In court documents filed in the case, the government alleged that on Oct. 3, 2020, Prettyontop started a fire in a house owned by the victim, identified as John Doe. When the fire occurred, Doe had nearly finished repairs and renovations and was planning to move back in. Prettyontop tried unsuccessfully to break into the residence through the front door, then entered through an open back door. Prettyontop intentionally lit a mattress on fire with a lighter. The fire spread to the rest of the house and Prettyontop walked out the front door. Prettyontop called 911 to turn herself in, confessed and said she was tired of people fighting over the house.
Assistant U.S. Attorney Jeanne Torske is prosecuting the case, which was investigated by the FBI and the Bureau of Indian Affairs.
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Greene County man who allegedly shot ODNR officer charged federally with illegal gun possessionRead the Press Release
CINCINNATI – A Greene County man was arrested by federal ATF agents on an illegal gun possession charge that stems from an incident in which an Ohio wildlife officer was shot.
Brian R. Liming, 44, of Jamestown, Ohio, was charged by a federal grand jury on April 14. His case was unsealed today, and he appeared in federal court this afternoon.
According to the indictment, on Dec. 20, 2020, Liming illegally possessed a loaded 20-gauge shotgun. On that date, an officer with the Ohio Department of Natural Resources was shot while investigating illegal deer hunting near Martinsville, Ohio.
Liming was previously convicted of a misdemeanor crime of domestic violence. Possessing a firearm or ammunition after having been convicted of a crime of domestic violence is a federal crime punishable by up to 10 years in prison.
Liming is currently out on bond on charges in the Clinton County Common Pleas Court, including felony assault and misdemeanor hunting charges related to the shooting. His Clinton County charges remain pending.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges. Assistant United States Attorney Ashley N. Brucato and Adam Cullman, Department of Justice Trial Attorney from the Environment and Natural Resources Division are representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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GirlsDoPorn Employee Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – April 16, 2021
SAN DIEGO – Valorie Moser, former bookkeeper for the adult website GirlsDoPorn, pleaded guilty in federal court today to conspiring with the operators of the website to fraudulently coerce young women to appear in sex videos.
Moser, who worked for GirlsDoPorn (GDP) from 2015 to 2018, pleaded guilty before U.S. Magistrate Linda Lopez to Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion. Moser, the third of six defendants to plead guilty, admitted that she served as GDP’s bookkeeper, made travel arrangements for models, provided transportation for approximately 100 models once they arrived in San Diego, and performed miscellaneous other tasks. Moser reported her accounting activities to co-defendant Matthew Wolfe, and her interactions with the models to co-defendant Michael Pratt and others.
Moser admitted she knew that GDP produced pornographic videos for publication and dissemination on the internet, and that the young women being recruited to star in these pornographic videos had been provided false assurances that the videos would not be published on the internet. For example, Moser overheard Pratt, using the alias “Mark,” telling prospective models that the video footage would only be distributed on DVDs in Australia, and that the models would remain anonymous, statements that Moser knew to be false.
Further, Pratt instructed Moser not to tell the women the truth about their video’s distribution as she drove the young women to and from the video shoots. Moser was to tell the women that she was just an Uber driver. Later, Pratt told Moser to tell the women that she was bound by a non-disclosure agreement and could not discuss it.
After the videos were posted on-line and widely available, many women contacted Moser to ask that their videos be taken down. Pratt, Wolfe and co-defendant Ruben Garcia all told Moser to block any calls from these women.
Moser also attempted to recruit potential models. Pratt gave her a list of names and numbers and showed her how to use a spoof program to conceal her actual phone number when making calls. Moser was aware that Pratt had a grading system for young women, and that she would get paid more if Pratt found the recruited women attractive. Pratt instructed Moser to tell all prospective models the same lie - that the videos would be released solely on DVD in Australia. Moser knew this to be false. Moser never actually recruited anyone and therefore never made these promises.
“This defendant was a willing participant in a scheme that has traumatized many victims,” said Acting U.S. Attorney Randy Grossman. “We will continue to seek justice for these women, and to prevent others from becoming ensnared by sex traffickers.” Grossman commended the excellent work of Assistant U.S. Attorneys Joseph Green and Alexandra F. Foster, as well as FBI agents and members of the San Diego Human Trafficking Task Force, for their continuing effort to investigate and prosecute this important case.
“Valorie Moser’s guilty plea closes yet another chapter in this deplorable crime ring,” said FBI Special Agent in Charge Suzanne Turner. “The defendant used lies and deceit to help facilitate this sex trafficking conspiracy.”
Moser is scheduled to be sentenced by U.S. District Judge Janis L. Sammartino on July 2, 2021, at 9:00 a.m. The next hearing in the ongoing case is May 7, 2021 at 2:00 p.m., also before Judge Sammartino.
Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.
The FBI is offering a reward of up to $10,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.
For further information, please see:
- Wanted Poster: https://www.fbi.gov/wanted/additional/michael-james-pratt
- Press Release: https://www.fbi.gov/contact-us/field-offices/sandiego/news/press-releases/fbi-seeks-public-assistance-in-locating-sex-trafficking-suspectDEFENDANT Case Number 19cr4488-JLS
Valorie Moser Age: 38 San Diego, CA*
*Pleaded guilty to a Superseding Information charging Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 371.
Maximum Penalty: Five years in prison, $250,000 fine, a special assessment of $100.
CO-DEFENDANTS
Michael James Pratt Age: 36 Fugitive
Matthew Isaac Wolfe Age 37 San Diego, CA
Ruben Andre Garcia Age: 31 San Diego, CA**
** Pleaded guilty to Counts 1 and 7
Theodore Gyi Age: 42 Rancho Aliso, CA**
** Pleaded guilty to Superseding Information charging Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 371
Amberlyn Dee Nored Age: 27 San Diego, CA
SUMMARY OF CHARGES
Count 1 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594(c)
Maximum Penalty: Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 2 (Pratt)
Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)
Minimum penalty: Fifteen years in prison; Maximum penalty: 30 years in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.Count 3 (Pratt)
Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)
Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
INVESTIGATING AGENCY
Federal Bureau of Investigation – San Diego Field Office
San Diego Human Trafficking Task Force
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Georgia Man Indicted on Conspiracy and Fraud ChargesRead the Press Release
NEWARK, N.J. – A Georgia man was arraigned today on conspiracy and fraud charges after surrendering to federal authorities, Acting U.S. Attorney Rachael A. Honig announced.
Isaac Newton, 53, of Loganville, Georgia, is charged by indictment with one count of conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, two counts of mail fraud, and one count of unlawfully obtaining $5,000 or more from a federally funded local government. He appeared by videoconference before the U.S. Magistrate Judge James B. Clark III, entered a plea of not guilty, and was release on $100,000 unsecured bond.
According to the indictment:
Newton was a consultant whose family member was enrolled in a graduate program at a university in New Jersey with Willis Edwards III, a public official in the local government of the City of Orange Township, New Jersey.
From June 2015 to June 2016, Newton and Edwards conspired to dupe Orange into making payments to Newton, which were, at least in part, for academic papers that Newton arranged to have written for Edwards. Edwards plagiarized the papers that Orange paid for and passed them off as his own work to professors at the university. Between December 2015 and March 2016, Newton submitted three fraudulent invoices to Orange calling for payments of $12,000, $16,000, and $10,000 for purported professional services. Orange paid the money to Newton, and Edwards received from Newton academic papers that had been written for Edwards. On June 20, 2016, Edwards submitted to several professors papers that were virtually identical to the papers that he had received from Newton. In emails sent to the professors, to which the papers were attached, Edwards asked the professors to grade the attached outstanding assignments so that he did “not receive a failing grade for all of the hard work that [he had] done.”
On Sept. 29, 2020, Edwards was charged in a 31-count superseding indictment, Counts 17 to 25 of which are related to the charges contained in Newton’s indictment. His case is pending trial.
Each count of conspiracy to commit mail and wire fraud, mail fraud and wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The count of unlawfully obtaining more than $5,000 from a local government receiving federal funds is punishable by up to 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Cari Fais of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Tribal Employee Sentenced to Serve Five Years of Probation for Embezzlement and TheftRead the Press Release
OKLAHOMA CITY – Yesterday, CAYLE LEIGH KLINEKOLE, 48, of Elgin, was sentenced to serve five years of probation for embezzlement and theft from an Indian tribal organization, announced Acting U.S. Attorney Robert J. Troester.
On October 30, 2020 Klinekole pleaded guilty to a single-count felony Indictment charging her with embezzlement and theft from an Indian tribal organization.
According to court documents and public record, Klinekole worked at the Kiowa, Comanche, and Apache Intertribal Land Use Committee ("KCA") as the Executive Director from 2016 to 2017. The KCA is a designated representative body of each of the three tribes authorized to manage and conduct business regarding jointly owned lands. During the time of her employment, Klinekole stole funds by forging checks, entering into labor agreements with companies without proper authorization, and making unauthorized purchases on credit accounts at different vendors.
On April 15, 2021, U.S. District Judge Charles Goodwin sentenced Klinekole to serve 5 years of probation, including home confinement for the first year, and 50 hours of community service. Judge Goodwin also ordered Klinekole to pay $194,573.18 in restitution to the Kiowa, Comanche, and Apache Intertribal Land Use Committee. In announcing the sentence, Judge Goodwin noted the nature and circumstances of the offense and the need for the sentence to reflect the seriousness of the offense.
This case is the result of an investigation by the Comanche Nation Police Department. Assistant U.S. Attorney Jessica L. Cárdenas prosecuted the case.
Reference is made to public filings for more information.
Former Temple Business School Dean Indicted for FraudRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced during a press conference today that Moshe Porat, the former Dean of Temple University’s Richard J. Fox School of Business and Management (“Fox”), has been indicted on charges that he conspired and schemed to deceive the school’s applicants, students, and donors into believing that the school offered top-ranked business degree programs, so they would pay tuition and make donations to Temple.
Porat, 74, of Bala Cynywd, PA, was Dean of Fox Business School from 1996 until 2018. He also was the Dean of Temple’s School of Sports, Tourism & Hospitality Management from 1998 until 2018.
The Indictment charges Porat with one count of conspiracy to commit wire fraud and one count of wire fraud. According to the Indictment, from at least 2014 until at least 2018, Porat conspired with a Fox professor named Isaac Gottlieb and a Fox employee named Marjorie O’Neill to submit false information about the school’s online MBA (“OMBA”) and part-time MBA (“PMBA”) programs to U.S. News & World Report in order to inflate Fox’s rankings in the annual U.S. News surveys of top OMBA and PMBA programs.
Among other things, the conspirators allegedly agreed to provide false information to U.S. News about the number of Fox’s OMBA and PMBA students who had taken the Graduate Management Admission Test (“GMAT”); the average work experience of Fox’s PMBA students; and the percentage of Fox students who were enrolled part-time because it was believed that better numbers for these metrics would result in better rankings for the programs.
The Indictment charges that the scheme was successful. Relying on the false information it had received from Fox, U.S. News ranked Fox’s OMBA program Number One in the country four years in a row (2015 – 2018). U.S. News also moved Fox’s PMBA program up its rankings from No. 53 in 2014 to No. 20 in 2015, to No. 16 in 2016, and to No. 7 in 2017.
According to the Indictment, Porat boasted about these rankings in marketing materials directed at potential Fox students and donors. Enrollment in Fox’s OMBA and PMBA programs grew dramatically in a few short years, which led to millions of dollars a year in increased tuition revenues.
Gottlieb and O’Neill have been charged in a separate Information with one count of conspiracy to commit wire fraud.
“The success of the higher education system in the United States relies not only on the academic excellence and rigor of the programs offered, and not only on the aptitude and hard work of the applicants and students,” said Acting U.S. Attorney Williams, “but also on transparency and honesty about the system itself. Moshe Porat allegedly misrepresented information about Fox’s application and acceptance process, and therefore the student-body itself, in order to defraud the rankings system, potential students, and donors. His conduct, as alleged, undermines the integrity of the entire academic system and forever hurts the students who worked so hard for admission.”
“Moshe Porat knew that burnishing the MBA programs’ rankings would make Fox more competitive, bringing in more students and more dollars,” said Lilian S. Perez, Assistant Special Agent in Charge of the FBI’s Philadelphia Division.“Fudging the school’s data was a means to that end. But countless applicants, students, and donors made big decisions, financial decisions, based on the lies at the heart of this alleged conspiracy. This was an extended and extensive fraud, for which those involved must be held accountable.”
“Today’s action alleges that Mr. Porat knowingly abused his position of trust to defraud the very ones he promised to serve – Temple students. That is unacceptable,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “As the law enforcement arm of the U.S. Department of Education, we will continue to aggressively pursue those who scam students or rig the system for their selfish purposes.”
“Leadership at institutions of higher education owe a duty to provide honest and accurate information about their schools and programs. As these leaders know, students, prospective students, prospective employees, employers, and others rely on the information they disseminate, and trust in its veracity,” said Postal Inspector in Charge Damon Wood. “Unfortunately, we have seen far too many examples of these leaders breaching this duty by engaging in deceptive activity. Today, the United States Attorney charged the former Dean of the Fox School Business at Temple University with providing fraudulent information to college ranking publications and then widely sharing that information with prospective students. This fraudulent data helped propel Temple Business School’s online degree program to a number one ranking in the US News and World Report and caused the program’s application and enrollment numbers to balloon. Many of these students would not have considered Temple if not for the number 1 ranking. The team from the FBI, the US Department of Education Office of Inspector General, and the Postal Inspection Service, spent several years working together to unravel this fraud. Today, thanks to their investigation, we are holding one of those individuals who engaged in this destructive conduct responsible and accountable.”
If convicted, Porat faces a maximum possible sentence of 25 years in prison, followed by three years of supervised release, and a $500,000 fine. Gottlieb and O’Neill each face a maximum possible sentence of five years in prison, followed by three years supervised release; and a $500,000 fine.
The case was investigated by the FBI, the United States Postal Inspection Service, and the Department of Education’s Office of the Inspector General; and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Member of "Head Shot Mafia" Drug Crew Pleads Guilty to Fentanyl DistributionRead the Press Release
BOSTON – A former member of the “Head Shot Mafia” (HSM) Brockton drug crew pleaded guilty on Wednesday, April 14, 2021 to conspiracy charges involving fentanyl.
Djoy Defrancesco, 24, of Brockton, pleaded guilty to one count of conspiracy to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 8, 2021. Defrancesco and three fellow HSM members were indicted by a federal grand jury in November 2019.
As alleged in court documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew, which referred to itself as “Head Shot Mafia” (HSM) ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by HSM crew members, which included Defrancesco. HSM members worked together to deliver the fentanyl order. Beginning in September 2019, agents introduced an undercover law enforcement officer to HSM, who made six purchases of fentanyl from members of the crew.
Defrancesco sold fentanyl to the undercover officer while on pre-trial release from a Plymouth Superior Court indictment charging him with trafficking in fentanyl and possession of a high capacity feeding device, among other offenses.
The charge of conspiracy to distribute 40 grams or more of fentanyl provides for up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Credit Union CEO Pleads Guilty to Embezzling, Failure to File TaxesRead the Press Release
PITTSBURGH, PA - A Beaver County resident pleaded guilty in federal court to charges of embezzlement from a federal credit union and willful failure to file tax returns, Acting United States Attorney Stephen R. Kaufman announced today.
Stacey Shaw, 47, of Industry, PA pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Shaw was the President and CEO of the International Brotherhood of Electrical Workers Local Union 712 Federal Credit Union, and beginning in May 2017 she opened six credit cards in her name without getting approval from the Board of Directors. Over the course of approximately three years, and without authorization, Shaw raised the credit limits on her credit cards approximately 138 times, using the available credit to make personal purchases. When her conduct was discovered, the six credit cards had a total outstanding balance of approximately $2.1 million, all of which resulted in a loss to the credit union. Ultimately, the loss was so profound, the credit union went out of business. The Court was further advised that Shaw had significant income for the years 2018 and 2019, but she willfully failed to file tax returns for those years.
Judge Horan scheduled sentencing for August 10, 2021 at 9:30 A.M. The law provides for a total sentence of 31 years in prison, a fine of $1,100,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Shaw on a $50,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Shaw.
Florida Drug Traffickers Convicted for Large-Scale Cocaine OperationRead the Press Release
PLANO, Texas – A jury in Plano, Texas has convicted two Florida men of drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Omar Daniel Garcia-Agosto and Steven Thomas Mathis were found guilty by a jury for conspiracy to possess with intent to distribute cocaine following a week-long trial before U.S. District Judge Sean Jordan.
“Today’s guilty verdict sends a clear message to drug traffickers,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District is dedicated to dismantling their organizations—from top to bottom—and disrupting the flow of illegal drugs through the State of Texas. We appreciate the hard work of the DEA as well as our state and local partners in putting this case together.”
According to evidence presented in court, from at least January 2019, and continuing until their arrests in December 2019, Garcia-Agosto, 46, of Deltona, FL, and Mathis, 34, of Orlando, FL, were involved in a drug trafficking operation that was responsible for distributing hundreds of kilograms of cocaine through the United States, including the North Texas area. Supplied by members of the Cartel Del Noreste in Mexico, the cocaine was sent to Laredo, Dallas, and Houston, Texas. From there, couriers transported the multi-kilogram shipments by car to Florida and locations in New York. The defendants then purchased and distributed cocaine throughout the United States. The investigation included the seizure of approximately 30 kilograms of cocaine and more than $300,000 in currency.
Following their conviction at trial, each defendant faces a minimum of 10 years and up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration, the Rockwall Police Department, the Mesquite Police Department, Lewisville Police Department, the Collin County Sheriff’s Office and the North Texas Criminal Interdiction Unit. The case was prosecuted by Assistant United States Attorneys Ernest Gonzalez and Colleen Bloss and Special Assistant United States Attorney Bethany R. Pickett.
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Fayetteville Man Sentenced to 12 Years After Second Federal Conviction for Firearms and Drug DistributionRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced to a total of 144 months in prison for discharging a firearm in furtherance of a drug trafficking offense.
According to court documents, Zhivargo Kinta Jenkins, also known as Fefe, 43, discharged a firearm inside an apartment where he ran a drug distribution enterprise involving marijuana, cocaine, and cocaine base (crack). On the night of December 15, 2018, Fayetteville Police Officers responded to a report of shooting inside an apartment. Upon arrival, officers found several large quantities of drugs, distribution material, and spent rounds of ammunition. Officers noted holes in the walls from the bullets, but no one was injured. At the time of the incident, Jenkins was serving a term of post-release supervision for federal convictions involving firearms and the distribution of narcotics.
For his actions in December 2018 and its corresponding federal charges, Jenkins was sentenced to 120 months’ imprisonment by U.S. District Judge Louise Flanagan. In addition to this sentence, Jenkins was sentenced to an additional 24 months’ imprisonment for the revocation of his post-release supervision by U.S. District Judge James C. Dever, III. The twenty-four-month sentence will run consecutive to his 120-month sentence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney J.D. Koesters 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-528 and 5:05-CR-204.
Enrolled member of the Navajo Nation sentenced to six years in federal prison for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Steven Barbone, 38, of To’hajiilee, New Mexico, and an enrolled member of the Navajo Nation, was sentenced to six years and four months in prison on April 12 for assault with a dangerous weapon in Indian Country.
Barbone pleaded guilty to this offense on May 12, 2020. According to the plea agreement and other court documents, in Sept. 2019, Barbone arrived under the influence of alcohol at his estranged wife’s home on the Navajo Nation and held Jane Doe against her will for two days. Barbone admitted to punching Jane Doe and using a taser to cause bodily harm. At some point, Barbone injected Jane Doe with methamphetamine under threat and without her consent. Jane Doe was hospitalized for three days to treat and recover from her injuries.
Upon his release from prison, Barbone will be subject to three years of supervised release.
The Albuquerque Field Office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Fredrick T. Mendenhall prosecuted the case.
EDVA Reminds Community Partners That the Americans with Disabilities Act Applies to COVID-19 Related ServicesRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today that it will be providing the attached
Dear Colleague Letter reminding community partners that are involved in the COVID-19 pandemic response that the Americans with Disabilities Act (“ADA”) applies to their services.“The COVID-19 pandemic has had a severe and distressing impact on people with disabilities, who, through no fault of their own, have faced additional barriers due to the public health crisis,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will vigorously pursue justice on behalf of those who are not provided equal access because of their disability. It is absolutely critical that COVID-19 resources, including vaccines and testing, are implemented in a manner that ensures individuals with disabilities are not subjected to discrimination and are able to access those services.”
The Dear Colleague Letter explains that ADA “considerations may include: whether registration systems and websites are available to individuals who have vision or hearing disabilities; whether facilities selected as vaccine or COVID-19 testing sites are accessible to people with mobility disabilities; and whether there is effective communication for people with disabilities in conveying information about such services.”
The Dear Colleague Letter includes links to numerous federal publications that provide a detailed discussion of the ADA’s requirements, including publications on ADA.gov. The U.S. Department of Justice has issued a technical assistance document titled “ADA Checklist for Polling Places,” which may serve as a helpful guide to states and municipalities in selecting vaccination sites, as well as providing temporary remedies to ensure that vaccination programs are accessible to people with disabilities. Like polling places, vaccination sites often have another primary use (such as a gym or community center), so the considerations for their selection and the methods used for ensuring their accessibility are applicable. The Dear Colleague Letter also includes links to additional resources and publications provided by the U.S. Department of Health and Human Services and the Federal Emergency Management Agency.
The U.S. Attorney’s Office for the Eastern District of Virginia, through its Civil Rights Enforcement (“CRE”) Unit, in partnership with the Justice Department’s Civil Rights Division, vigorously enforces a variety of federal statutes that prohibit discrimination, including the ADA, the Civil Rights Act of 1964, the Civil Rights of Institutionalized Persons Act, and the Equal Educational Opportunities Act of 1974. EDVA’s CRE Unit also enforces the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act of 1994.
For more information on the ADA, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
EDVA Dear Colleague Letter (COVID-19 ADA)
Drug Conspiracy Defendant Sentenced to 16 + Years in Federal PrisonRead the Press Release
SHREVEPORT, La. – Roderick Dewaine Hogan, 39, of Plain Dealing, Louisiana was sentenced today by United States District Judge Donald E. Walter to 200 months (16 years, 8 months) in prison, followed by 5 years of supervised release, on a drug conspiracy charge.
On July 17, 2019, a federal grand jury returned an indictment charging Hogan and others with conspiracy to possess with intent to distribute methamphetamine after an investigation by the Drug Enforcement Administration (DEA) into drug trafficking activities in the Plain Dealing and Springhill areas of Louisiana. Hogan pleaded guilty to the charge on October 22, 2019.
During their investigation, DEA agents learned that Hogan received a phone call on November 30, 2018 from Damione Brock, his co-conspirator, who was a prisoner at the Louisiana State Penitentiary in Angola. During the phone call, Brock asked Hogan to put together a package of methamphetamine to be delivered to Angola. Brock told Hogan that he had a girl who would pick up the methamphetamine in Alexandria if another co-conspirator, Marvin Beck, could deliver it to her. Hogan provided the narcotics to Beck and allowed him to drive Hogan’s vehicle to deliver the narcotics to the girl, who was later identified as Keisarah McGee, another co-conspirator. McGee was a correctional officer at Angola during this time.
On December 2, 2018, DEA agents surveilled the transportation of the methamphetamine, which was hidden in fake soda cans and was driven by Beck from Bossier City to Alexandria. Beck put the package into McGee’s vehicle, who then took the methamphetamine hidden in fake soda cans with the plan to take them with her into Angola when reporting for work. DEA agents alerted Louisiana Department of Corrections investigators to expect the female officer to try and enter the facility with the hidden narcotics. Agents were able to stop her at the gate at Angola and search the vehicle and found the methamphetamine and seized it prior to her entry into the facility.
The DEA conducted the investigation. Assistant U.S. Attorneys J. Aaron Crawford and Brandon B. Brown prosecuted the case.
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Dallas Attorney Charged in Narcotics Money Laundering SchemeRead the Press Release
A Dallas lawyer has been charged with laundering what he believed to be proceeds of narcotics trafficking, announced Acting U.S. Attorney Prerak Shah.
Rayshun Jackson, the 51-year-old attorney at the helm of The Jackson Law Firm, was arrested Wednesday, charged via criminal complaint with money laundering. He made his initial appearance in federal court Friday morning.
“Attorneys swear an oath to conduct themselves with integrity and uphold the rule of law. Mr. Jackson instead chose to ignore his oath by allegedly laundering money for purported narcotics dealers,” said Acting U.S. Attorney Prerak Shah. “He explicitly instructed them on how to further violate the law and profit from the devastation of our nation’s opioid epidemic, lining his own pockets in the process. He will now have to face the consequences of his actions.”
“Global drug trafficking depends on criminal money launderers to take ill-gained profits and weave a fictitious web of businesses and bank accounts to appear legitimate. These illicit activities cannot exist without each other,” said Eduardo A. Chavez, Special Agent in Charge of the DEA in Dallas. “As alleged, Mr. Jackson used his law degree not in the furtherance of justice, but to line his own pockets, a true travesty of the law. The DEA will tirelessly investigate and seek justice for drug money launderers, who enable criminal organizations to profit from those who find themselves addicted to controlled substances.”
According to the complaint, Mr. Jackson surfaced during the DEA’s years-long investigation of a large-scale opioid distribution ring, when a high-level dealer offered to introduce an undercover agent to someone who could launder drug proceeds.
Asked if he knew anyone capable of laundering around half a million dollars of “drug money,” the dealer stated he knew “business people” who “do this for a fee.”
“He’s gonna clean it. He’s gonna wash it,” the dealer told the undercover agent in August 2020. “I don’t know the ins and outs… he’s the lawyer.”
Two weeks later, the dealer accompanied the undercover agent and a confidential source to Mr. Jackson’s office on Pacific Avenue in Dallas, where the dealer vouched for the undercover agent’s trustworthiness. Still posing as a drug trafficker, the undercover agent told Mr. Jackson that he would need to clean around “half a mil a month.”
“It’s straight dope money,” the undercover agent admitted.
“I don’t care where the money comes from,” the attorney responded.
The pair allegedly negotiated a 4 percent fee, plus bonus, for the defendant to launder the money. Mr. Jackson suggested setting up a “shell corporation,” as well as a cash business like a coin laundry or car wash that would make it difficult for authorities to track proceeds. He said he could get everything up and running in two to four weeks. The pair agreed on a $100,000 trial run, with more to come, and the undercover agent departed the office with the dealer and confidential source.
“This dude has been leading us. We are successful because of him,” the dealer told the undercover after they left. “Ray is the bomb… He’s a thug, he’s just got a law degree.”
In late September, the undercover agent again traveled to Mr. Jackson’s office to deliver $100,000 in cash made from purported drug sales.
Before the undercover turned over the money, Mr. Jackson tried to clarify his long-term commitment to the drug trafficking organization.
“I can get out at any point, right? Long as ya’ll got your money?” the attorney asked.
“I know that we can come across as threatening, but we are not savages,” the undercover agent responded. “So when you are ready to be done, then we’re gonna be done.”
The undercover agent then handed Mr. Jackson a black backpack containing the cash. Mr. Jackson allegedly took the bag and looked inside. He warned the undercover agent and confidential sources to speak in code when they contacted him, and told them he would not put anything substantive in a text.
“You take care of me and I am gonna take care of you,” he told the undercover agent before he left.
The following month, a Jackson Law Firm bank account made three deposits totaling $95,000 into a DEA undercover bank account. Mr. Jackson allegedly kept $5,000, the 4 percent commission plus a 1 percent bonus.
In late November, the undercover agent returned to Mr. Jackson’s office to deliver $300,000 in purported drug sale cash. The undercover agent expressed concern about Mr. Jackson allowing anyone access to his bank accounts, since the amount of money had increased. Mr. Jackson assured the undercover that he had “full control and only control.”
Mr. Jackson allegedly began to transfer the money to the black backpack he’d kept from the prior transaction, then paused to ask if the undercover had taken steps to ensure the money did not smell like narcotics, to which the agent replied in the affirmative. Mr. Jackson continued to stuff cash into the backpack, struggling to zip it closed. When the undercover agent offered to have the confidential source escort Mr. Jackson to his vehicle, the attorney laughed and said, “nobody knows, I take stuff down all the time.”
Over the following three months, a Jackson Law Firm bank account made eleven more deposits totaling $285,000 into undercover DEA bank accounts. Each deposit was less than $50,000, just as Mr. Jackson had promised. Mr. Jackson once again allegedly kept 5 percent, or $15,000.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Jackson is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 year in federal prison per laundered transaction.
The Drug Enforcement Administration’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigations and the Dallas Police Department. Assistant U.S. Attorney Courtney Coker, the Northern District of Texas’ Deputy Criminal Chief, is prosecuting the case along with Assistant U.S. Attorneys Juanita Fielden and Nashonme Johnson.
DOJ and Washington Department of Children, Youth and Family Services settle claims of Americans with Disabilities Act (ADA) violationsRead the Press Release
Seattle – The Washington State Department of Children, Youth and Family Services (DCYF) will pay $300,000 and make sweeping changes to procedures for providing services to families where a parent or child is deaf or hard of hearing, announced Acting U.S. Attorney Tessa M. Gorman of the Western District of Washington and Acting U.S. Attorney Joseph H. Harrington of the Eastern District of Washington. The settlement follows an investigation of complaints by two Washington State families about DCYF’s Child Welfare Program (CWP).
“At every step communication is key to the relationship between a family facing challenges and social workers who are trying to protect and serve children,” said Acting U.S. Attorney Gorman. “It is critical whether in a home assessment, a supervised visit, or a therapeutic service, that a parent who is deaf or hard of hearing be able to understand and communicate with a caseworker. DCYF has agreed to a path forward that will provide these critical services.”
“No individual should be denied or delayed access to public services because of a disability,” said Acting United States Attorney Joseph H. Harrington for the Eastern District of Washington. “Services provided by the State of Washington whether through DCYF or other important areas of civic life must comply with the ADA and its effective communication requirements. The ADA for over thirty years has strengthened our society and this settlement should serve as a stark reminder of why this landmark legislation is so important.”
According to the settlement agreement, DOJ found evidence that on more than 100 occasions between 2017 and 2019, the Child Welfare Program failed to provide appropriate auxiliary aids or services, including qualified sign language interpreters, for the complainant families. The communications included high stakes interviews during investigations regarding the possible termination of parental rights and during court-ordered treatments and counseling required for reunification with children.
The investigation by the U.S. Attorney’s Offices in both the Western and Eastern Districts of Washington determined that the failure to provide auxiliary aids and services, including qualified interpreters, denied the complainant families equal access to DCYF’s services, programs, and activities. This failure to provide qualified interpreters in a timely manner, meant that the complainant families were not provided communication that was as effective as the agency’s communications to people without disabilities. That is the standard set out in the Americans with Disabilities Act.
The investigation concluded that complainant families were frequently unable to participate fully in agency investigations, had unequal access to case resolutions options like mediation, and experienced delays in moving through court-ordered services such as counseling and drug treatment. DCYF employees also improperly relied on ineffective means of communication such as the use of note-writing for the parents whose primary language was ASL, or the use of family members to interpret instead of qualified interpreters. There was also evidence that the parents’ status as individuals who are deaf or hard of hearing and their legitimate requests for qualified interpreters resulted in caseworkers having a negative view about the willingness of such parents to cooperate in DCYF’s investigation.
DOJ concluded that the delays and barriers to access to DCYF’s services, including resolution of investigations and visitations with their children, caused significant emotional distress to the complainant parents and their children. The investigation also reflected that these problems were likely not limited to the complainant parents but reflected a more widespread inability to communicate effectively with families with members who are deaf or hard of hearing.
Under the terms of the settlement DCYF Child Welfare Program must devise and implement, with input by the U.S. Attorney’s Offices, new policies, practices, and procedures on how it will communicate effectively with constituents who have communication disabilities, including individuals who are deaf or hard of hearing. The new communications policies will follow the ADA requirements and will ensure there are a variety of resources, including appropriate auxiliary aids and services, for caseworkers to use in communicating with families. The new policy will prohibit the use of interpreters who are family members and children, as required by the ADA.
The settlement agreement also calls for DCYF to enter or maintain sufficient contractual arrangements across all the counties of Washington State to meet the expected needs for qualified interpreters. Video remote interpreting may be used following the ADA’s standards and requirements.
The settlement agreement further calls for publicizing the new communications plan, appointing an ADA coordinator, training employees on the new plan and ADA requirements, and keeping a log of when auxiliary aids and services, including interpreter services, are used. The log will be part of the information provided to the U.S. Attorney’s Offices to ensure DCYF remains in compliance with the settlement agreement.
Under the terms of the settlement, the $300,000 will be divided between the complainants in Western and Eastern Washington. Some of the money will be held in trust for two of the children whose reunification with their parents was delayed by a repeated lack of interpreters.
The Department of Children, Youth and Families cooperated fully in the investigation.
The investigation was conducted by Assistant United States Attorney Christina Fogg who serves as the Civil Rights Program Coordinator for the U.S. Attorney’s Office, Western District of Washington, and Assistant United States Attorney Joseph Derrig of the Eastern District of Washington.
The U.S. Attorney’s Offices (in coordination with the Civil Rights Division of the United States Department of Justice) vigorously enforce federal civil rights laws throughout Washington. These laws prohibit discrimination, protect the constitutional rights of residents, and affirm equal opportunity for all. Find more information on our civil rights program here.
Convicted Felon Detained on Firearm and Drug Trafficking ChargesRead the Press Release
PROVIDENCE – A Providence man previously convicted in Rhode Island state court on felony drug charges and awaiting trial in state court on additional assault and firearm charges, has been detained in federal custody on unrelated drug trafficking and weapons charges, following an ATF and Providence Police investigation that determined the man was allegedly delivering fentanyl to customers in Massachusetts, at times trading for firearms as payment.
It is alleged in court documents that two individuals confirmed to ATF agents that they purchased fentanyl from Joaquin Fabian, 23, one claiming they exchanged firearms as payment.
According to court documents, beginning in January 2021, ATF agents, with the assistance of Providence Police, employing various surveillance techniques, determined that on several occasions Fabian allegedly drove to Southeastern Massachusetts to conduct his drug trafficking business. Law enforcement also surveilled Fabian participate in meetings in Providence that agents believe were related to his alleged drug trafficking activity. During this time, Fabian routinely changed vehicles and, at times, employed counter-surveillance techniques while driving.
It is alleged that on Wednesday, Fabian drove to Franklin, Massachusetts, consistent with past trips he made to meet with his drug customers. About an hour later, as law enforcement monitored Fabian’s social media accounts, Fabian allegedly posted a photograph of a handgun positioned in between what appeared to be his legs while seated in a motor vehicle. As Fabian returned to the area of his Providence residence, ATF agents and Task Force officers conducted a traffic stop of his vehicle. Fabian exited the vehicle, hesitated, grabbed towards his waistline consistent with the drawing of a firearm, and fled on foot. Agents quickly located and approached Fabian, who had his hands raised. Three cell phones were located on the ground beside him. A firearm, consistent with the firearm earlier posted in a photograph to Fabian’s social media account, was located nearby.
On Fabian’s person, agents allegedly found a packet containing 2.7 grams of fentanyl. In his vehicle agents located and seized a pound of marijuana. A court-authorized search of his residence resulted in the seizure of three plastic bags containing 70 grams of fentanyl, 439.9 grams of marijuana, three loaded magazines of ammunition, a box containing 44 rounds of ammunition, a plastic bag containing 249 rounds of various types of ammunition, and $18,802 in cash.
Fabian appeared on Thursday before U.S. District Court Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with possession of a firearm by a prohibited person, possession of ammunition by a prohibited person, possession of more than 40 grams of fentanyl with intent to distribute, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Fabian’s arrest and detention are announced by Acting United States Attorney Richard B. Myrus, Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
The case is being prosecuted by Assistant U.S. Attorney William F. Ferland.
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Company Owners Plead Guilty to Falsifying Pension Contribution ReportsRead the Press Release
BOSTON – Co-owners of a New Hampshire asbestos abatement company have been charged and agreed to plead guilty to making false statements to employee pension plans.
Richard Quinn, 58, of Sterling, Mass., and Gary McCaffrey, 65, of Salem, N.H., were charged and agreed to plead guilty to one count of making false statements to a pension plan covered by the Employee Retirement Security Act (ERISA).
According to the charging documents, Quinn and McCaffrey owned and operated Absolute Environmental Inc., an asbestos abatement company. Between November 2014 and May 2017, Quinn and McCaffrey continued to employ several undocumented individuals after being notified of their status. During this time period, McCaffrey and Quinn knowingly falsified reports to the relevant pension plans about the work performed by the undocumented individuals, failing to make required pension contributions of over $337,000.
Pursuant to the plea agreement, the government will recommend a sentence of two years of supervised release, six months of home confinement and a fine of $10,000 to $25,000 for each defendant.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Nathaniel R. Mendell; Michael C. Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of the Inspector General, Office of Investigations Labor Racketeering and Fraud, New York Region; and Carol Hamilton, Boston Regional Director of the Employee Benefits Security Administration made the announcement. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colorado Man Indicted for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Colorado Springs, Colorado, man has been indicted by a federal grand jury for Possession with Intent to Distribute Methamphetamine.
Chad William Chapman, age 36, was indicted on April 13, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on April 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 16, 2021, in the District of South Dakota, Chapman knowingly and intentionally possessed 50 grams or more of methamphetamine with intent to distribute it. Chapman was pulled over by the Aberdeen Police Department in Aberdeen and found in possession of nearly a pound of methamphetamine and $6,135 in U.S. currency.
The charge is merely an accusation and Chapman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Aberdeen Police Department and the Brown County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Chapman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been scheduled.
Chicago Man Indicted for Allegedly Straw Purchasing Handguns in Suburban StoreRead the Press Release
CHICAGO — A Chicago man has been indicted on a federal firearm charge for allegedly straw purchasing handguns in a suburban store on behalf of another individual.
On July 15, 2020, DARIUS BROWN purchased three handguns from a licensed firearms dealer in Mokena, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed today in U.S. District Court in Chicago. In reality, Brown purchased the guns on behalf of another individual, the charges allege.
Brown, 24, is charged with one count of making a false statement in connection with the acquisition of firearms. He pleaded not guilty today during his arraignment in federal court in Chicago. A status hearing was set for April 30, 2021, before U.S. District Judge John Z. Lee.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The government is represented by Assistant U.S. Attorney Ankur Srivastava.
“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally purchase them.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the indictment is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Cedar Rapids Man with Violent History Sentenced to Federal Prison for Possessing GunRead the Press Release
A Cedar Rapids man, responsible for possessing a gun while using marijuana and being a felon, was sentenced today to 60 months in prison.
Marcus Lynn Brown, Jr., age 20, from Cedar Rapids, Iowa, received the prison sentence after a November 10, 2020 guilty plea to possession of a firearm by a prohibited person.
Information disclosed at sentencing and at his plea hearing showed that, in May 2020, Cedar Rapids police officers stopped a vehicle Brown was a passenger in because Brown had active arrest warrants. Once the vehicle stopped, Brown tried to run from police and fought with them as he was being arrested. Brown left a gun in the vehicle just before running. Officers located the gun, which was loaded. The gun had Brown’s DNA on it. Brown had marijuana in his pocket and tested positive for using marijuana. Brown has five prior adult criminal convictions, three of which involved violence or firearms.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 60 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number 20-CR-79.
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Cedar Rapids Man Sent to Federal Prison After Receiving Fifty Pounds of Methamphetamine for ResaleRead the Press Release
A man who distributed pounds of methamphetamine was sentenced on April 15, 2021, to more than 20 years in federal prison.
Jamie Allen Medulan, age 46, from Cedar Rapids, Iowa, received the prison term after an October 22, 2020 guilty plea to conspiracy to distribute methamphetamine and possessing a firearm during and in furtherance of a drug trafficking crime.
On July 13, 2020, officers searched a hotel room being used by Medulan and located more than five kilograms of “ice” methamphetamine, two firearms, $31,448 in cash, and other evidence of drug trafficking. Medulan later admitted receiving more than 50 pounds of methamphetamine from his source over the course of months. Medulan’s criminal history includes convictions in 31 separate cases, including convictions related to theft, assault, burglary, and manufacturing of methamphetamine.
Medulan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Medulan was sentenced to 251 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Medulan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Linn County Sheriff’s Office, the Marion Police Department, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-55.
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Cedar Falls Man Sentenced to Federal Prison for Illegally Acquiring and Possessing FirearmsRead the Press Release
A Cedar Falls man who illegally acquired and possessed firearms after shooting a man in the face in 2017 was sentenced today to more than 5 years in federal prison.
DeShaun Anthony Bullock, Jr., age 29, from Cedar Falls, Iowa, received the prison term after a September 2020 guilty plea to possession of a firearm by a drug user.
Evidence at sentencing showed that Bullock shot a Waterloo man in the face in March 2017. Bullock was acquitted of a charge related to the March 2017 shooting in state court; however, after the acquittal, he admitted to the shooting in text messages. In July 2018, Bullock fraudulently obtained a state permit to carry weapons by lying about his drug use on the application form. In March 2019, Bullock possessed a firearm during a drug transaction. After officers observed the drug transaction, they conducted a traffic stop on Bullock’s vehicle and seized the firearm and marijuana. A month later, in April 2019, Bullock fraudulently and illegally obtained a second firearm by lying about his drug use on an ATF form required to purchase the firearm. In July 2019, officers executed a search warrant at Bullock’s residence and seized the firearm he bought in April 2019 and marijuana. Bullock admitted to officers that he had been a user of marijuana since he was 13 years old.
Bullock was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bullock was sentenced to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bullock is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02018.
Follow us on Twitter @USAO_NDIA.
Camden Man Charged with Sex Trafficking of a MinorRead the Press Release
CAMDEN, N.J. – A Camden man is scheduled to make his initial appearance today on a sex trafficking charge, Acting U.S. Attorney Rachael A. Honig announced.
Semaj A. Gilmore, 31, is charged by complaint with one count of sex trafficking of a minor. He is scheduled to appear by videoconference before U.S. Magistrate Judge Karen M. Williams this afternoon.
According to documents filed in this case and statements made in court:
In April 2021, investigators learned that a missing juvenile from Pennsylvania was being advertised for sexually illicit activities on a website that is often used to advertise acts of prostitution. On April 13, 2021, an undercover agent contacted a phone number associated with the advertisement. The undercover agent and the user of the phone number, later revealed to be Gilmore, exchanged a series of messages that ultimately led to the undercover agent meeting the victim in a motel room in or around Mount Laurel, New Jersey, purportedly to engage in sexual activities in exchange for cash. Among other messages, Gilmore instructed the undercover agent to “get condoms” and to confirm that he was not “a cop.” When uniformed officers entered the motel room, Gilmore, who had been waiting in a car in the adjacent parking lot, fled the scene. Officers stopped Gilmore’s car and recovered the phone used to arrange the meeting between the victim and the undercover agent.
The count of sex trafficking of a minor carries a statutory mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, with the investigation leading to the charge. She also thanked members of the Mount Laurel Police Department, under the direction of Chief Steve Riedener, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Caguas Resident Indicted for Tax FraudRead the Press Release
SAN JUAN, P.R. – On April 14, 2021, the Federal Grand Jury in the District of Puerto Rico returned a seven-count indictment charging Jose A. Pabón-Sanabria, 50 yrs. old, of Caguas, Puerto Rico, with willfully attempting to evade and defeat the payment of a substantial portion of the employment taxes due to the federal government in violation of 26 U.S.C. § 7201, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI).
According to the indictment, Jose A. Pabón-Sanabria operated GAP Security Services, LLC (“GAP”), a security guard business with its principal place of business in Caguas. At the time of the events, GAP employed more than 50 full time employees.
It is alleged that Pabón-Sanabria caused employment taxes, including Federal Insurance Contribution Act (“FICA”) taxes, to be withheld from GAP’s employees’ wages, but failed to fully pay the taxes to the IRS from the first quarter of 2014 through the third quarter of 2015, among other employment tax quarters. As a result, Pabón-Sanabria failed to pay the IRS in excess of $262,000 in employment taxes for GAP employees.
The Internal Revenue Service (“IRS”) is an agency within the Department of Treasury responsible for administering and enforcing the tax laws of the United States, and collecting taxes owed to the Treasury of the United States by its citizens and other entities.
The Internal Revenue Code and associated statutes and regulations requires employers to withhold from employees’ gross pay federal income taxes and FICA taxes, which represent Social Security and Medicare taxes, and to account for and pay the withheld taxes to the IRS on a quarterly basis. These taxes are held in trust for the United States by the employer and required to be paid for the benefit of employees.
In addition to the taxes that must be withheld from pay, employers are separately required to make contributions under FICA for Social Security and Medicare in amounts matching the amounts withheld from their employees’ pay for those purposes. Together, they are commonly referred to as “employment taxes.”
“Employers such as Pabón Sanabria are required by law to withhold taxes from their employees’ wages, hold those funds in trust, and pay over those funds to the IRS,” said U.S. Attorney Muldrow. “Willful failure to comply with this requirement is a crime. Those individuals who choose to maintain their business and line their pockets with the trust funds of their employees are stealing from the U.S. Treasury –and will face substantial consequences including incarceration.”
Violations of 26 U.S.C. § 7201 carry a penalty of imprisonment for up to 5 years and three years of supervised release, along with a fine.
This case is being investigated by IRS-CI and prosecuted by Assistant United States Attorney María L. Montañez-Concepción.
An indictment is only an accusation and not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Brockton Man Charged with Aggravated Identity TheftRead the Press Release
BOSTON – A Brockton man who has been living under a false identity was arrested on Wednesday, April 14, 2021 on charges of aggravated identity theft and misuse of a Social Security number.
An individual referred to as “John Doe” was charged with one count of misusing a Social Security number and one count of aggravated identity theft. Following an initial appearance before U.S. Magistrate Judge Marianne B. Bowler, Doe was detained pending a detention hearing scheduled for April 19, 2021.
According to charging documents, Doe used the name and Social Security number of a U.S. citizen to apply for and obtain a Massachusetts REAL ID driver’s license. Doe also used this person’s identifiers to apply for and receive Pandemic Unemployment Assistance (PUA).
The charge of misuse of a Social Security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the U.S. Department of Labor, Office of Inspector General; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of State, Diplomatic Security Service; U.S. Postal Inspection Service; Massachusetts State Police; and the Brockton Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Aroostook County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Presque Isle man pleaded guilty in federal court yesterday to conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Reece Humphrey, 27, and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Humphrey traveled with co-conspirators on at least one such trip to Mexico and Arizona to obtain methamphetamine and transport it back to Maine.
Humphrey faces up to 20 years in prison and a fine of up to $1 million. He also faces between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Aberdeen Man Indicted on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Aberdeen, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Brent Wayne Vostad, age 36, was indicted on April 13, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on April 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 27, 2021, in Aberdeen, South Dakota, Vostad, while knowingly being a convicted felon and a user of a controlled substance, knowingly possessed a loaded handgun, which had been transported in interstate commerce.
The charge is merely an accusation and Vostad is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Aberdeen Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Vostad was remanded into the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
79th Defendant Linked to SWGA Meth Distribution Ring is Sentenced to PrisonRead the Press Release
ALBANY, Ga. – The seventy-ninth and final defendant connected to a major methamphetamine distribution ring supplying illegal drugs across the southeastern United States was sentenced to serve 96 months in a federal prison, said Peter Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Kim Wesley, 48, of Nashville, Georgia, was sentenced on Thursday, April 15, by U.S. District Judge Leslie Gardner to 96 months imprisonment to be followed by eight years of supervised release. Wesley previously pleaded guilty to one count distribution of methamphetamine. Wesley is one of 79 co-defendants in the 2016 Boris Fuller methamphetamine distribution wiretap investigation. All 79 defendants have been federally charged, convicted and sentenced. There is no parole in the federal system.
“The investigation to bring down a significant drug trafficking organization operating out of a small southwest Georgia community began four years ago. Law enforcement has never backed down from ensuring justice is served to dozens of individuals involved in distributing large amounts of methamphetamine into communities across the southeastern United States,” said Acting U.S. Attorney Leary. “I want to thank our many law enforcement partners who worked together to dismantle this drug trafficking ring.”
Between May 17, 2016 and August 2, 2016, state and federal search warrants were obtained authorizing investigators to obtain text messages and other electronic content from relevant cell phones. A review of these communications revealed that the known leader of the methamphetamine distribution ring, Boris Fuller, 42, of Moultrie, and his co-conspirators were distributing approximately four pounds of methamphetamine a week to customers in Georgia, Florida, Kentucky and South Carolina. These communications also showed that Fuller controlled a network of couriers that were traveling to Atlanta to acquire bulk quantities of methamphetamine. For his crime, Fuller was sentenced to serve 30 years in a federal prison to be followed by ten years of supervised release on October 26, 2018, by Judge Gardner after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. Authorities estimate that an organization of 79 individuals regulated by Fuller was responsible for the distribution of more than 20 kilograms of methamphetamine in and around Moultrie from May until November 2016. The names of the additional defendants previously sentenced to prison for their involvement in the Fuller methamphetamine distribution investigation are listed in earlier press releases on the USAO Middle District of Georgia website. You can find them by visiting www.justice.gov/usao-mdga.
The case was investigated by the DEA, GBI, Georgia Department of Corrections, Georgia Department of Community Supervision, Mid-South Narcotics Task Force, Colquitt County Sheriff’s Office, Crisp County Sheriff’s Office, Tift County Sheriff’s Office, Henry County Sheriff’s Office, Grady County Sheriff’s Office, Berrien County Sheriff’s Office, Cook County Sheriff’s Office, Leon County Florida Sheriff’s Office, Volusia County Florida Bureau of Investigation and Moultrie Police Department. 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.
20 Indicted on Meth Trafficking and Firearms ChargesRead the Press Release
Twenty central Texas residents face federal drug trafficking and firearms charges stemming from five separate, but related, federal grand jury indictments unsealed today in Waco, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety (DPS) Director Steven McCraw; Temple Police Chief Shawn Reynolds; Killeen Police Chief Charles Kimble; and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division.
Indictment #1 – U.S. v. Gutierrez, et al.
This federal grand jury indictment charges the following defendants with conspiracy to possess with intent to distribute methamphetamine:
Anthony Gutierrez, aka Cuzzo, age 34 of San Juan; Jose Francisco Gutierrez, age 33 of Killeen; Sarah Elizabeth Crigger, age 30 of Nolanville; Bobby Quinton Gentile, age 43 of Holland; Ashley Nicole Sutton, age 31 of Belton; Wesley Warrick, age 50 of Cameron; Carlos Avila, age 38 of Buckholts; Joe David Beck, age 50 of Temple; Lesleigh Arianne Bittner, age 33 of Belton; Aleah Freitag, age 29 of Rockdale; Kimberly Lee, age 26 of Gatesville; Colton Lane Lewis, age 30 of Temple; Angela Loy, age 32 of Temple; Frank Medina Jr, age 43 of Temple; Timothy Neal Nyquist, age 36 of Temple; and
Trisha Ann Sanchez, age 40 of Temple.The indictment alleges that the defendants conspired since January 2020 to distribute multiple kilogram quantities of methamphetamine in Bell County and surrounding areas.
OVer the past two days, federal, state and local authorities arrested 13 of the above defendants. Jose Gutierrez, Crigger and Lewis were already in custody prior to yesterday. During this investigation authorities seized approximately four kilograms of cocaine, approximately seven kilograms of methamphetaine and a half a dozen firearms.
Anthony Gutierrez, Jose Gutierrez, Crigger, Gentile, Sutton and Warrick face between 10 years and life in federal prison upon conviction because the quantity level charged is at least 500 grams. The remaining defendants face between five years and 40 years in federal prison upon conviction because the quantity level charged is at least 50 grams.
Indictment #2 – U.S. v. Cory Joe Barton
This federal grand jury indictment charges 35-year-old Cory Joe Barton of Gatesville with conspiracy to possess with intent to distribute methamphetamine. The indictment alleges that on November 11, 2020, he possessed at least 500 grams of methamphetamine. If convicted, Barton faces btween 10 years and life in federal prison. Barton was previously arrested.
Indictment #3 – U.S. v. Lori Oliphint
This federal grand jury indictment charges 43-year-old Lori Oliphint of Temple with possession with intent to distribute under 50 grams of methamphetamine on August 19, 2020. If convicted, Oliphint faces up to 20 years in federal prison. Authorities arrested Oliphint yesterday.
Indictment #4 – U.S. v. Kayli Marie Guthrie
This federal grand jury indictment charges 21-year-old Kayli Marie Guthrie of Temple with possession of a firearm by a convicted felon. The indictment alleges that on May 21, 2020, Guthrie was in possession of a Colt .45 caliber handgun. According to the indictment, Guthrie was convicted on March 27, 2020, in Bell County, for possession of a controlled substance less than one gram and unauthorized use of a motor vehicle. Authorities arrested Guthrie last night.Indictment #5 – U.S. v. Annie Rose Lewis
This federal grand jury indictment charges 31-year-old Annie Rose Lewis of Temple with one count of convicted felon in possession of a firearm. The indictment alleges that on December 21, 2020, Lewis possessed a .380 caliber pistol. Lewis has a 2011 federal conviction for manufacturing counterfeit currency. If convicted, Lewis faces up to 10 years in federal prison. Authorities arrested Lewis earlier today.
The FBI, Temple Police Department, Killeen Police Department, Texas Department of Public Safety Narcotics Division and Drug Enforcement Administration conducted this investigation. The U.S. Marshals Service provided valuable assistance with the arrests. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting these cases.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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15 April 2021
York County Man Charged with Bankruptcy FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher Gambrill, age 44, of Windsor, Pennsylvania, was indicted by a federal grand jury for concealing assets during a bankruptcy proceeding.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that while Gambrill was a party in a bankruptcy proceeding in December 2016 through September 2017, he fraudulently concealed a $125,000 inheritance from the bankruptcy trustee and creditors.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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William Ellis Sentenced to 10 Years for Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
GREENEVILLE, Tenn. – On April 15, 2021, William Charles Ellis, 51, currently of Jonesborough, Tennessee, was sentenced by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Ellis agreed to plead guilty to enticement of a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b). Ellis was sentenced to 120 months in prison, followed by 15 years of supervised release. Ellis will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
In August 2019, Ellis used an online dating application to communicate with a person that he believed to be a 15-year-old minor female. The “minor female” was an FBI agent working an online covert investigation. Ellis sent sexually explicit photos to the minor female and requested that she send sexually explicit photos and videos to him. The FBI identified the defendant, obtained a search warrant for his cellular phone, and questioned him. During questioning, Ellis admitted to communicating with a person that he believed to be an underage female and asking her to send him pornographic videos. The FBI searched Ellis’ phone and found numerous files containing child pornography.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Emily Swecker represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab resources.
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Wheeling man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mark L. Flint, II, of Wheeling, West Virginia, was sentenced today to 51 months of incarceration a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Flint, age 35, of Wheeling, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2021. Flint, who is prohibited from having a firearm, admitted to having a .40 semi-automatic pistol in May 2020 in Ohio County.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Woman Sentenced for Coupon Fraud Scheme Targeting Kmart StoresRead the Press Release
PITTSBURGH - A West Virginia resident has been sentenced in federal court to three years of probation, including six months of home detention, on her conviction for wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Tanya Thompson, aka Tanya Whetzel of Martinsburg, West Virginia.
According to information presented to the court, Thompson used fraudulent electronic coupons on her mobile device to purchase third party gift cards and prepaid credit cards at various Kmart stores. From June 2017 until December 2017, Thompson traveled to approximately 25 states and dozens of Kmart stores to use the fraudulent coupons. The total loss to Kmart was $94,977.50.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Thompson.
West Sacramento Postal Employee Sentenced to Prison for Stealing Packages that Contained DrugsRead the Press Release
SACRAMENTO, Calif. — Celeste Pang, 42, of Olivehurst, was sentenced today by U.S. District Judge Morrison C. England Jr. to six months in prison and a $2,000 fine for embezzlement of mail by postal employee, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pang, a postal employee at the West Sacramento post office, identified what she believed to be drug parcels and rerouted them to her personal residence. For over a year and a half, Pang stole parcels from the post office by replacing the original tracking label with an insured tracking label and replacing the original address label with a label bearing her home address. Agents intercepted one of the stolen packages before it reached Pang’s residence. That package contained 10 pounds of marijuana.
This case was the product of an investigation by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Waterford, PA Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Waterford, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
John Douglas Root, Jr., 28, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that while engaged in a Kik chat group focused on child exploitation, Root received and distributed digital images depicting prepubescent minors engaging in sexually explicit conduct.
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. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baxter scheduled sentencing for August 19, 2021 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. 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 continued Root on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Root.
Van Zandt County Man Sentenced for Receiving Child PornographyRead the Press Release
TYLER Texas – A Wills Point, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
James Joseph Veeser, 59, pleaded guilty on Sep. 20, 2020, to receipt of child pornography and was sentenced to 97 months in federal prison by U.S. District Judge J. Campbell Barker today. Upon release from prison, Veeser will be required to register as a sex offender.
“Sexual exploitation of children is a scourge that the U.S. Attorney's Office has set as a high priority for investigation and prosecution,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those who receive these detestable images and videos drive the demand for them - and, hence, should face criminal liability for that conduct.”
According to information presented in court, on Jan. 8, 2019, law enforcement authorities executed a search warrant at Veeser’s residence in Van Zandt County, Texas, and recovered computer equipment. A forensic examination of the computer equipment revealed visual depictions of minors engaged in sexually explicit conduct. The videos and photos had been downloaded between Jan. 25, 2016 and Jan. 8, 2019.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and the Longview Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
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United States District Court Orders Forfeiture of Real Estate Purchased by Mexican Cartel Leader Rafael Caro Quintero with Proceeds of His Drug Trafficking OrganizationRead the Press Release
Today, in federal court in Brooklyn, United States District Judge Eric N. Vitaliano entered a Default Judgment and Partial Decree of Forfeiture authorizing the seizure and forfeiture of five pieces of real property located in and around Guadalajara, Mexico. These properties, described in the civil forfeiture complaint filed on October 11, 2019, were purchased by Rafael Caro Quintero (“RCQ”) with drug proceeds generated by the Caro Quintero drug trafficking organization, a faction of the Mexican organized crime syndicate known as the Sinaloa Cartel. The United States will seek to enforce this Order through diplomatic channels.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the District Court’s Forfeiture Order.
“Today’s order is another step forward in our relentless pursuit of justice for the victims of Caro Quintero’s brutal drug trafficking organization and especially for DEA Special Agent Enrique Camarena, who was tragically murdered at the hands of Caro Quintero’s crime syndicate,” stated Acting United States Attorney Lesko. “In forfeiting these drug-tainted properties, we join with the Mexican government and our law enforcement partners at the DEA to commemorate Special Agent Camarena’s life and remember his ultimate sacrifice.” Mr. Lesko extended his grateful appreciation to the DEA New York Division Organized Crime and Drug Enforcement Strike Force, as well as the DEA Raleigh Resident Office and DEA Mexico City Country Office for their assistance with the case.
“Rafael Caro Quintero is one of the world’s most wanted criminals for years of drug trafficking and his role in killing one of our own, DEA Special Agent Enrique Kiki Camarena,” stated DEA Special Agent-in-Charge Donovan. “The unprecedented seizures and forfeitures announced today exemplify our resolve and perseverance in bringing RCQ to justice to face the consequences of his alleged crimes. As we continue to safeguard the American public from drug trafficking and the dangers associated, we will never forget Special Agent Camarena’s courage and sacrifice.”
According to the forfeiture complaint, between January 1980 and March 2015, the Caro Quintero drug trafficking organization was involved in the transportation of multi-ton quantities of marijuana, multi-kilogram quantities of methamphetamine and multi-kilogram quantities of cocaine from Mexico to the United States. As part of its investigation, law enforcement learned that Caro Quintero used proceeds from the sale of illegal narcotics to purchase real estate in and around his home area of Guadalajara. Caro Quintero allegedly placed the properties in the names of family members to conceal his ownership of the properties and use of illegal proceeds to purchase them, and to prevent Mexican authorities from seizing them.
Caro Quintero is a fugitive from several indictments in the United States and is on the FBI’s list of “Ten Most Wanted” criminals. In April 2018, an indictment was unsealed in federal court in Brooklyn charging Caro Quintero with leading a continuing criminal enterprise and other crimes, including his participation in the 1985 kidnapping, torture and murder of DEA Special Agent Enrique “Kiki” Camarena. A $20 million reward provided by the United States Department of State is being offered for information leading to his capture.
The government’s forfeiture case is being prosecuted by Assistant United States Attorneys Brendan G. King and Patricia E. Notopoulos.
E.D.N.Y. Docket No. 19-CV-5748 (ENV)
Undocumented alien sent to prison for causing injury to federal agentRead the Press Release
LAREDO, Texas – A 33-year-old undocumented Honduran national has been ordered to federal prison for assaulting a Border Patrol (BP) agent in the performance of his official duties, announced Acting U.S. Attorney Jennifer B. Lowery.
On Jan. 29, U.S. District Judge Marina Garcia Marmolejo rendered her guilty verdict against Walter Yobani Ordones-Chavez following a one-day bench trial that concluded Jan. 27.
Today, Judge Marmolejo ordered him to serve a 33-month-term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court heard additional evidence detailing how Ordones-Chavez had multiple aliases, convictions for resisting arrest in the states of Colorado and Massachusetts and been previously deported 11 times.
The court also noted that authorities had acted with great experience and restraint in apprehending Ordones-Chavez. At the conclusion of the hearing, the court thanked the agents for their service to the United States.
In the early morning hours of Dec. 31, 2019, law enforcement responded to possible illegal activity near Headen Avenue and Ventura Street in the El Tonto neighborhood of Laredo. They had discovered a group who had illegally crossed the Rio Grande River and attempted to hide inside a storage shed located at a private residence.
At trial, the court heard Ordones was one of those individuals. Testimony revealed he violently resisted efforts to apprehend him, striking at authorities and ignoring multiple commands to halt.
Law enforcement was ultimately able to physically detain him, but not before causing injury to an agent. Two BP agents were subsequently treated for injuries at a medical facility.
Ordones-Chavez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Francisco J. Rodriguez and Courtney Nix prosecuted the case.
U.S. Attorney’s Office teams up with law enforcement and other community partners to recognize overdose victimsRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Attorney’s Office is partnering with law enforcement and others in the community in the Northern District of West Virginia to recognize overdose victims as a part of National Crime Victims’ Rights Week.
West Virginia remains #1 in overdose deaths per capita in the United States, according to data collected from the Centers of Disease Control. In the 32 counties in the Northern District of West Virginia, an average of 300 people die each year of drug overdoses.
“Substance abuse disorder is rampant in our district and across the state, and in the past year, has been compounded by the pandemic and the isolation, job loss, and uncertainty that came with it. The victims of drug overdoses are someone’s loved ones. We want to recognize these tremendous losses as we continue to work to get these illegal substances off the streets,” said Randolph J. Bernard, Acting U.S. Attorney, Northern District of West Virginia.
The U.S. Attorney’s Office will be placing purple flags, one for each death in the NDWV, in several locations across the District to recognize the hundreds of sons, daughters, parents, grandchildren, and friends who lost their lives last year because of illegal drug sales.
Flags will be placed with our partners in:
• Wheeling –at Wheeling’s Heritage Port, in partnership with the City of Wheeling
• Martinsburg –at the Martinsburg Police Department in partnership with Martinsburg Police
• Bridgeport – at the Bridgeport Police Department in partnership with the Bridgeport Police
• Elkins –at the Elkins City Building in partnership with the City of Elkins
• Morgantown –at the Monongalia County Health Department in partnership with the Monongalia County Quick Response Team
The week, which is celebrating its 40th year this year, begins April 18 and runs through April 24, 2021. The theme is “Support Victims. Build Trust. Engage Communities.” For more information on the week, go to https://ovc.ojp.gov/program/national-crime-victims-rights-week/overview.
U.S. Attorney’s Office Urges Participation in National Drug Take Back DayRead the Press Release
HARRISBURG – As the April 24th Drug Enforcement Agency’s (DEA) 20th National Prescription Drug Take Back Day approaches, Acting United States Attorney Bruce D. Brandler urges the public to participate in the biannual event and remove dangerous expired, unused, and unwanted prescription drugs from your home, where they could be stolen or abused by family members and visitors, including children and teens.
Since it was established in 2010, DEA has held 19 National Prescription Drug Take Back Day events, which have, collectively, removed 13,684,848 pounds (more than 6,842 tons) of medications from circulation. The disposal service is free and anonymous, no questions asked.
DEA and its partners will collect tablets, capsules, patches, and solid forms of medication. Vaping devices and cartridges will also be accepted, so long as the lithium batteries are removed. Liquids including intravenous solutions and syringes, as well as illegal drugs, will not be accepted. All collection sites will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement.
“In the midst of the Covid-19 pandemic, the public should not forget we are still in the midst of an opioid epidemic that has only worsened during the pandemic,” stated Acting U.S. Attorney Bruce D. Brandler. “Over 81,000 people died of a drug overdose in 2020 which represented a significant increase from 2019. Getting rid of excess prescription drugs in the home will help save lives and I urge the public to participate in this very worthwhile endeavor.”
“DEA and its partners collected a record amount at its last Take Back event, making it the largest collection since the program began in 2010,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “This event brings to light how unused medications can end up in the wrong hands.”
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisoning and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. Additionally, opioid overdose deaths have increased during the pandemic. Centers for Disease Control and Prevention (CDC) issued a health alert in December indicating a significant increase in overdose deaths from May 2019 through May 2020, including concerning trends during the first months of the COVID-19 pandemic. Over 81,000 people in the United States died of a drug overdose in just one year. This is the largest number of drug overdoses on record in the United States within a one- year period and an 18 percent increase in deaths year over year.
The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, but accelerated significantly during the first months of the pandemic. Synthetic opioids, such as illicit fentanyl, are the primary driver of the increases in overdose deaths. More people die each year from drug overdose than from traffic accidents or firearms – a staggering statistic that challenges how people perceive the deaths and overdose of people addicted to opioids.
For more information about the event or to locate a collection site near you, visit the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/ or call 1-800-882-9539.
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Two Western Kentucky Men Plead Guilty to Oil and Gas FraudRead the Press Release
BOWLING GREEN, KY. – Two western Kentucky men, Stacy Scott Phelps and James Michael Harper, pleaded guilty to conspiracy to commit wire fraud and wire fraud in connection with their operation of Phoenix Development Drilling Corporation, an oil and gas drilling business, announced Acting United States Attorney Michael A. Bennett.
According to plea agreements in the case, from approximately January 2015 to June 2016 Phelps and Harper operated Phoenix Development Drilling Corporation. Through their efforts, the company acquired drilling permits and leases for property in Hart County and Monroe County, Kentucky. Phelps and Harper put together two drilling programs for Phoenix known as Phoenix Three Select and Phoenix Three Preferred. They then, directly and through Phoenix’s unlicensed agents, solicited potential investors, to invest in the programs, which were unregistered securities. To induce investors into the programs, Phelps, Harper, and others prepared brochures describing the programs and their offerings. The brochures included a joint venture and a joint operating agreement representing that Phoenix would use invested funds to drill for oil. Phoenix also offered another investment opportunity, which allowed investors to purchase an Overriding Royalty Interest (“ORI”) in all of Phoenix drilling operations and guaranteed at least a 6% return on investment in the first year. The ORI agreement stated that the monies invested would be used to further the growth of Phoenix.
As part of their fraud conspiracy in the case, Phelps and Harper made numerous false statements to investors. For example, in the Phoenix Three Select offering materials, which defendants began distributing at least as of September 8, 2015, they described that the “main focus” of the program was “to develop out the proven Lee Miles lease in Hart Co. Kentucky.” However, no wells had been drilled on that lease before Phoenix drilled a single, non-producing well on September 17, 2015. The defendants also demanded payments from investors for “completion costs” for the Lee Miles well before they had drilled the well. In so doing, they falsely represented to at least one investor at least three months before they had actually drilled that well that they had drilled the well, let it sit overnight, and when they opened it up “[i]t blew nice quality oil for over 4 minutes.”
Phelps and Harper further made misrepresentations in connection with the ORI investment opportunity. The defendants made payments to three investors and represented that that they were “ORI” payments, leading the investors to believe that the payments were oil production revenue from Phoenix’s wells. In fact, they made these “ORI” payments before Phoenix had even drilled the first well and Phoenix never drilled a viable well or made any revenue from oil production.
Finally, Phelps and Harper also represented that monies invested in both the Phoenix Three Preferred and Phoenix Three Select programs would be used for Phoenix’s oil drilling operations, when in fact only approximately 10% of the money raised from investors was spent on legitimate business purposes. The remainder of the money raised was moved through Phoenix’s bank account and diverted for the use of the defendants and other co-conspirators, which were used by some for personal expenses, including for vacations, golf, jewelry, dating and adult websites, auto parts, gas, groceries, clothing, and online gambling, among other non-business expenditures.
During the course of their fraud conspiracy, Phelps and Harper and other co-conspirators sold shares of the two Phoenix programs to ten investors, most of whom resided outside of Kentucky, and sold the additional ORI investment to three of those investors, collecting $556,056.25 in investors’ money, while paying out only $15,574 in purported ORI payments to the three investors.
Phelps is scheduled for sentencing on July 7th at 9:00 am CDT in Bowling Green before Chief United States District Court Judge Stivers. Harper is scheduled for sentencing on July 7th at 9:30 am CDT in Bowling Green before Chief United States District Court Judge Stivers.
The case is being prosecuted by Assistant United States Attorneys Nicole Elver and Stephanie Zimdahl. The case is being investigated by the Federal Bureau of Investigation (FBI).
The U.S. Attorney’s Office also appreciates the assistance of the U.S. Securities and Exchange Commission.
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Two Men Charged with Producing False Identity Documents and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – Two operators of an illegal e-commerce business engaged in the sale of digital images of false identity documents, such as passports, driver’s licenses, and national identity cards associated with more than 200 countries and territories, were charged in a six-count federal indictment unsealed in the District of New Jersey today, Acting U.S. Attorney Rachael A. Honig announced.
Mohsin Raza, aka “Mohsin Raza Amiri,” 34, and Mujtaba Raza, aka “Mujtaba Ali Lilani,” “Mujtaba Ali,” and “Mujtaba,” 33, both of Karachi, Pakistan, are each charged with conspiracy to produce and transfer in false identification documents, three counts of transferring false identification documents, one count of false use of a passport, and one count of aggravated identity theft.
“The indictment alleges a global scheme to produce fraudulent identity documents that other wrongdoers then used to further additional illegal activity, including activity intended to interfere with U.S. elections,” Acting U.S. Attorney Honig said. “Together with the FBI and our other law enforcement partners around the world, we will continue to identify criminal operations such as these and shut them down.”
“Today’s actions demonstrate the FBI’s commitment to target the entire ecosystem supporting cyber actors, regardless of where those criminals reside, and hold them accountable,” Special Agent in Charge George M. Crouch Jr. of the FBI Newark Division said. “The individuals indicted enabled criminal organizations around the world to perpetuate cyberattacks against Americans and our allies and to bypass anti-fraud measures designed to stop the flow of stolen funds through the financial system. Mohsin Raza and Mujtaba Ali Raza are now fugitives and have been added to the FBI’s White Collar Crimes Most Wanted website. The FBI will never stop pursuing these criminals until justice is served.”
According to the indictment:
From at least 2011, the defendants operated a fraudulent online business based out of Karachi, named, at various times, “SecondEye Solution” and “Forwarderz” (collectively, “SecondEye”). SecondEye, through various versions of its website, electronically produced, sold, and transferred digital versions of false government-issued identity and other documents. The false documents were the types of documents commonly needed and used to create online accounts at banks, payment processors, social media sites, and digital currency platforms.
The defendants advertised SecondEye’s services on at least one well-known cyber hacker forum. SecondEye’s advertisements claimed that SecondEye documents could be used by customers who were “banned” or “suspended” to restore access to their online accounts. The defendants accepted more than $1.5 million in Bitcoin transfers alone from SecondEye customers related to more than 20,000 separate transactions.
SecondEye customers used the false SecondEye documents to commit and facilitate the commission of various cybercrimes and other criminal conduct. Between May 11, 2017, and Sept. 16, 2017, a member of the Internet Research Agency LLC, a Russian organization that engaged in operations to interfere with elections and political processes, including the 2016 U.S. presidential election, purchased multiple false identification documents from SecondEye in the names of real and fictitious U.S. persons. The false identification documents were later used as supporting documents for accounts previously operated by the Internet Research Agency at a social media company.
SecondEye customers used the false SecondEye documents to defraud payment processing companies, e-commerce businesses, social media, and social networking platforms, and virtual currency exchanges, both foreign and domestic, by gaining unauthorized access to online platforms provided by such entities, often to gain access to customer accounts that previously had been revoked or suspended.
As part of its investigation, the United States has seized three domestically-hosted domain names used by SecondEye in furtherance of its fraudulent document business: www.secondeyesolution.com, www.secondeyesolution.biz, and www.forwarderz.com. Visitors to the websites received the following message:
THIS WEBSITE HAS BEEN SEIZED
The conspiracy charge and each of the three counts of transferring false identity documents are punishable by a maximum of 15 years in prison. The false use of a passport charge is punishable by maximum of 10 years in prison. The aggravated identity theft charge is punishable by an additional consecutive mandatory minimum imprisonment term of two years. Each count has a maximum fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. In addition, the United States will seek forfeiture of any proceeds derived from the offenses and any property used to facilitate the commission of the offenses.
Acting U.S. Attorney Honig credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and David E. Malagold of the U.S. Attorney’s Office Cybercrime Unit and Sarah Devlin, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Twenty-Two Indicted for Drug Trafficking in San Antonio AreaRead the Press Release
Twenty-two defendants from San Antonio, Del Rio and Laredo face federal drug trafficking charges, announced U.S. Attorney Ashley C. Hoff and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division.
A federal grand jury indictment unsealed today charges the following defendants with conspiracy to possess with intent to distribute a controlled substance:
Matthew Noe Arteaga, age 35 of San Antonio;
Nicolas Rodriguez, age 39 of San Antonio;
Bryan Anthony Brown, age 33 of San Antonio;
Brian Victorino Chavarria, age 24 of San Antonio;
Oscar Oviedo, age 26 of San Antonio;
Joseph Richard Guerrero, age 28 of San Antonio;
Homero Garcia, age 36 of San Antonio;
Jesus Gerardo Vasquez, age 19 of San Antonio;
Jesse Martinez, age 41 of San Antonio;
Justin Paul Guerrero, age 26 of San Antonio;
Ricardo Gonzalez, age 24 of San Antonio;
Juan Carlos Robles, age 35 of San Antonio;
Fernando Jose Moreno, age 45 of San Antonio;
Rene Palafos, age 37 of San Antonio;
Michael Barron, age 39 of San Antonio;
Oswaldo Jesus Lopez, age 26 of Laredo;
Oscar Jesus Lopez, age 23 of Laredo;
Javier Garcia Lopez, age 29 of San Antonio;
Jose De Jesus Garcia, age 35 of San Antonio;
Madilyn Marie Alvarado, age 26 of Del Rio
James Patric Bartlett, age 42 of San Antonio; and,
Albelardo Oviedo, age 29 of San Antonio.
The indictment alleges that defendants Arteaga, Rodriguez, Brown, Chavarria, Oscar Oviedo, Joseph Guerrero, Vasquez, Martinez, Justin Guerrero, Gonzalez, Robles, Moreno, Palafos, Barron, Lopez, Jose Garcia, Alvarado, Bartlett, and Albelardo Oviedo conspired from June 2019 until April 7, 2021, to distribute methamphetamine. It also alleges that from June 2019 until April 7, 2021, Oscar Oviedo, Vasquez, Justin Guerrero, Moreno and Palafos conspired to distribute cocaine, and that Chavarria, Homero Garcia, Oswaldo Lopez and Oscar Lopez conspired to distribute heroin. All of the defendants except Albelardo Oviedo are also charged in substantive counts in the indictment related to specific instances of drug trafficking that occurred throughout the course of the conspiracy.
During this investigation, authorities seized approximately 24 kilograms of methamphetamine, six kilograms of heroin, three kilograms of cocaine, four firearms and approximately $100,000 along with other assets attributable to this organization.
Over the past two days, federal, state and local authorities arrested all of the defendants with the exception of Brown, Martinez, Jose Garcia, Alvarado, and Bartlett. Those five defendants were already in custody.
“These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” said DEA Special Agent in Charge Comeaux. “We will continue to work closely with our federal, state and local law enforcement partners in order to enhance the quality of life for the citizens in the San Antonio region.”
Martinez, Robles, and Jose Garcia face between 15 years and life upon conviction of conspiracy to possess a controlled substance with intent to distribute. Each has a prior serious felony drug conviction which enhances their minimum mandatory sentence. All the remaining defendants face between 10 years to life in federal prison upon conviction.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
The DEA, U.S. Marshals Service, IRS Criminal Investigations, U.S. Customs and Border Protection, Texas Department of Public Safety, Bexar County Sheriff’s Office, Terrell Hills Police Department, Seguin Police Department and San Antonio Police Department conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Alamo Fade. The Bexar County District Attorney’s Office also assisted in the investigation. OCDETF Lead Task Force Attorney Adrián Rosales is prosecuting this case on behalf of the government.
This operation is part of an OCDETF Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Houston/South Texas OCDETF Strike Force is to disrupt and dismantle the drug trafficking organizations headed by designated Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), and their affiliates that impact Houston and south Texas.
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