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15 April 2021
Tulsa Police Officer Pleads Guilty to Making a False Statement to a Firearms Dealer to Purchase a Gun for BoyfriendRead the Press Release
A Tulsa police officer pleaded guilty today in federal court for conspiring to make a false statement to a firearms dealer when purchasing a firearm.
Latoya Lisa Dythe, 26, pleaded guilty to conspiracy to make a false statement to a firearms dealer and to false statement to a firearms dealer.
According to her written plea agreement, Dythe admitted that she and her coconspirator Devon Jamyll Jones agreed that Dythe would purchase a firearm for him at a Bass Pro Shop. Jones gave Dythe money to purchase a specific firearm, a FN HERSTAL S.A., 5.7 X 28mm. As mandated by law, Dythe filled out required forms to purchase the firearm. When asked on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 “Are you the actual transferee/buyer of the firearm(s) listed on this form,” Dythe answered “Yes”. Her response was a false statement made to obtain the firearm for Jones. Dythe admitted that she did in fact obtain the firearm and immediately gave it to Jones following the purchase. She admitted that she knew her actions were Illegal when she committed the crime.
The ATF Form 4473 specifically issues a warning to purchasers: “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”
“Police officers, just like all citizens, that engage in criminal conduct must be held accountable for their actions,” said Acting U.S. Attorney Clint Johnson. “Latoya Dythe understood it was illegal to lie on federal firearms transaction forms to obtain a gun for another individual, and today she has accepted responsibility for the crime. I appreciate the Tulsa Police Department for bringing this case to the attention of federal authorities and for working with the FBI and my office as this case proceeds in federal court.”
“The public rightfully expects more from those who have sworn to serve,” said FBI Special Agent in Charge Melissa Godbold. “Latoya Dythe’s actions violated the public’s trust and I’m thankful for our federal, state and local law enforcement partners’ hard work to ensure this type of behavior is not tolerated.”
Dythe remains on bond pending sentencing which will occur on July 15. She faces a maximum penalty of five years imprisonment for each count, three years of supervised release and a fine not to exceed $250,000.
Devon Jones, 28, was charged as a coconspirator with Dythe in the indictment announced in December. Jones is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. See the press release here announcing the indictment.
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Edward Snow is prosecuting the case.
This case was prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers
Tucker County man sentenced for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – John Luther Boyles, of Parsons, West Virginia, was sentenced today to 78 months of incarceration for his role in a methamphetamine distribution operation, Acting United States Attorney Randolph J. Bernard announced.
John Luther Boyles, age 64, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in February 2019. Boyles admitted to conspiring with others to distribute more than five grams of methamphetamine from December 2017 to March 2018 in Tucker and Randolph Counties and elsewhere.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Three Sparks Men Indicted on Fentanyl Distribution ChargesRead the Press Release
RENO, Nev. – A federal grand jury has returned indictments charging three residents of Sparks, Nevada, for their alleged roles relating to the distribution of fentanyl (a deadly synthetic opioid).
- Jesse Arevalo, aka “Kay,” 30, and Francisco Navarro-Delgado, 32. Arevalo and Navarro-Delgado are each charged with one count of conspiracy to distribute fentanyl, cocaine, and heroin, and one count of maintaining drug involved premises. Arevalo is also charged with five counts of possession with intent to distribute controlled substances. According to allegations in the superseding indictment against him, from February to April 2021, Arevalo possessed with the intent to distribute at least 400 grams of fentanyl and at least 500 grams of cocaine.
According to allegations in the indictment and arguments made in court, from about November 2019 to March 2021, Arevalo and Navarro-Delgado conspired to maintain several apartments for the purpose of storing and distributing large quantities of fentanyl and cocaine. Arevalo acquired thousands of fentanyl pills as well as kilograms of cocaine per month, using those apartments to store and distribute the controlled substances. Further, from about November 2019 to February 2020, Arevalo allegedly used students at a southeast Reno high school to distribute controlled substances, including fentanyl pills, on his behalf.
- Jaime Collazo Munoz, aka “Chivo,” 33. In a related case, Munoz was indicted on four counts of distribution of a controlled substance (specifically, fentanyl). According to allegations in the indictment against him, from July to November 2020, Munoz distributed at least 80 grams of fentanyl.
“During the pandemic, Nevada has seen an increase in overdoses, as illegal drugs and illicit drug use continue to exact an enormous toll across our state,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our law enforcement partners, we will keep fighting to stop the distribution of drugs in our communities — particularly schemes that get children and youth involved in drug sales and trafficking.”
“Fentanyl and other highly potent synthetic opioids remain the primary driver behind the ongoing opioid crisis with counterfeit prescription pills being the most prevalent form of exposure,” said Acting Reno Resident Agent in Charge Aimee Koontz for the DEA. “Individuals that prey on our youth and community by distributing these potentially lethal counterfeit pills pressed with fentanyl will be held accountable. These fake pills are disguised to look like prescription pills, but in reality taking one is no different than playing Russian roulette that is fueling the opioid epidemic.”
“This time last year our community was reeling because of shocking fentanyl overdose deaths,” said Washoe County Sheriff Darin Balaam. “I asked for the Drug Enforcement Administration’s support in investigating the distribution of opiates in our region, and ultimately agents ended up adopting our drug cases due to their national and international implications. I am extremely grateful to the Drug Enforcement Administration and federal, state and local law enforcement partners for their diligent work on the cases. I promise you and every member of our community, we will not stop fighting illegal drug trafficking in Washoe County.”
Arevalo, Navarro-Delgado, and Munoz were charged by two indictments on March 25, 2021, and Arevalo was charged with additional criminal offenses on April 15, 2021. Arevalo and Munoz were detained and remanded to custody, and Navarro-Delgado was released on a personal recognizance bond. Jury trials have been scheduled before Chief U.S. District Judge Miranda Du and U.S. District Judge Larry R. Hicks on May 17, 2021.
If convicted, Arevalo faces a maximum statutory penalty of life imprisonment and a fine up to $10,000,000. If convicted, Navarro-Delgado, and Munoz each face a maximum statutory penalty of 40 years imprisonment and a fine of up to $5,000,000.
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the DEA and Washoe County Sheriff’s Office with assistance by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), United States Marshals Service (USMS), Lyon County Sheriff’s Office, Douglas County Sheriff’s Office, Nevada Highway Patrol K-9, Regional Gang Unit, Regional Narcotics Unit, Washoe County Sheriff’s Office K-9, Sparks Police Department K-9, and (Regional) Human Exploitation and Trafficking Unit. Assistant U.S. Attorney Andolyn Johnson is prosecuting the cases.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine: only a few milligrams of this chemical compound, equivalent to a few grains of table salt, are enough to cause a fatal overdose. According to the Centers for Disease Control and Prevention, over 70% of the nearly 71,000 drug overdoses in 2019 involved an opioid.
If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.
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Three Hattiesburg Men Sentenced to Prison for Drug Trafficking Crimes in Hattiesburg under Project EJECTRead the Press Release
Hattiesburg, Miss. – Three men have been sentenced by Senior U.S. District Judge Keith Starrett and U.S. District Judge Taylor B. McNeel for possessing methamphetamine with the intent to distribute, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On January 29, 2020, Shane Ware was recorded distributing approximately 221 grams of methamphetamine. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 100% pure. Ware pled guilty on November 24, 2020, before Judge Starrett. On April 14, 2021, Ware was sentenced by Judge McNeel to 70 months confinement, a $5000 fine, and five years of supervised release.
On February 12, 2020, Alfred Richards was recorded distributing approximately 121 grams of methamphetamine. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 99% pure. Richards pled guilty on November 24, 2020, before Judge Starrett. On April 8, 2021, Richards was sentenced by Judge Starrett to 120 months confinement, a $5000 fine, and five years of supervised release.
On February 19, 2020, Demetric Evans was recorded distributing approximately 112 grams of methamphetamine. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 97% pure. Evans pled guilty on November 24, 2020, before Judge Starrett. On March 31, 2021, Evans was sentenced by Judge McNeel to 120 months confinement, a $7500 fine, and five years of supervised release.
All three defendants were originally indicted for this offense on September 22, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Tennessee Woman Pleads Guilty to Filing False Claims for Unclaimed PropertyRead the Press Release
SACRAMENTO, Calif. —Marilyn Cook (aka Marilyn Powell and Marilyn Sunset), 58, of Alcoa, Tennessee, pleaded guilty today to one count of mail fraud in relation to a scheme to obtain unclaimed property held by the California State Controller’s Office Unclaimed Property Division, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August and September 2014, Cook, using the name Marilyn Sunset, committed a scheme to defraud by filing false claims with the Division of Unclaimed Property for properties belonging to the U.S. Marshal Service and others. These properties were being held pursuant to a California law that requires financial institutions, businesses, and other entities, to turnover financial assets to the State Controller’s Office when an account has been inactive or there has been no contact with the property owner for a specified period of time. The properties are then safeguarded until they are returned to their rightful owner. The Unclaimed Property Division maintains a list of properties in their possession on a publicly available website and provides instructions on how to claim such properties.
In furtherance of the scheme, Cook identified properties belonging to others, including the U.S. Marshal Service, and falsely certified under penalty of perjury that she was entitled to claim the identified properties. Cook also used a Tennessee ID card that she obtained in the name Marilyn Sunset to have certain claim forms notarized, as was required by the Unclaimed Property Division for claims over a certain dollar amount. Finally, Cook submitted fictitious documents in support of her claims to show that she was authorized to claim the properties. These documents included a letter on Department of Justice letterhead that falsely purported to have been signed by a former Assistant Attorney General, authorizing Sunset to collect properties on behalf of the U.S. Marshal Service. In all, Cook falsely claimed 128 properties totaling $398,537. The Unclaimed Property Division identified the claims as fraudulent and did not disperse any property to Cook.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Cook is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on July 15. Cook faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tax Attorney Indicted for Facilitating Tax FraudRead the Press Release
A federal grand jury in San Francisco returned an indictment today charging a Houston-based tax attorney of conspiring with the Chairman and Chief Executive Officer of a private equity firm to defraud the IRS. The grand jury further charged him with three counts of aiding and assisting in the preparation of the CEO’s false tax returns for the 2012 to 2014 tax years.
According to the indictment, from 1999 to 2014, Carlos E. Kepke helped Robert F. Smith create and maintain offshore entities that were used to conceal from the IRS approximately $225,000,000 of capital gains income that Smith had earned. In approximately March 2000, Kepke allegedly created a Nevisian limited liability company (Flash Holdings) and a Belizean trust (Excelsior Trust) to serve as the tax evasion vehicles. When Smith earned capital gains income from his private equity funds, a portion was allegedly deposited into Flash’s bank accounts in the British Virgin Islands and Switzerland. As alleged, Smith was able to hide this income because Excelsior, and not Smith, was the nominal owner of Flash. Smith then allegedly failed to timely and fully report his income to the IRS. Kepke allegedly assisted in the preparation of Smith’s false 2012 to 2014 returns.
For his services, Smith has allegedly paid Kepke nearly $1,000,000 since 2007. These fees, as charged, included an annual payment for Kepke to purge or “securitize” his records related to Smith, Excelsior, and Flash.
Kepke is scheduled for his initial court appearance on April 22 before U.S. Magistrate Judge Corley of the U.S. District Court for the Northern District of California. If convicted, Kepke faces up to five years in prison on the conspiracy count and three years in prison for each count of assisting in the preparation of a false return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting U.S. Attorney Stephanie M. Hinds of the U.S. Attorney’s Office in the Northern District of California; and Jim Lee, Chief of the IRS Criminal Investigations (IRS-CI), made the announcement.
IRS-CI are investigating the case.
Senior Litigation Counsel Corey Smith, Assistant U.S. Attorney Michael G. Pitman, and Trial Attorneys Lee Langston and Christopher Magnani are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax Attorney Indicted for Facilitating Multi-Million Dollar Tax FraudRead the Press Release
SAN FRANCISCO – A federal grand jury returned an indictment today charging Houston-based tax attorney Carlos E. Kepke with conspiring with the Chairman and Chief Executive Officer of a private equity firm, to defraud the Internal Revenue Service (IRS), announced Acting United States Attorney Stephanie M. Hinds; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Jim Lee, Chief of the Internal Revenue Service, Criminal Investigations (IRS-CI). The grand jury further charged Kepke with three counts of aiding and assisting in the preparation of the CEO’s false income tax returns for the years 2012 through 2014.
According to the indictment, from 1999 to 2014, Kepke helped Robert F. Smith create and maintain a structure of offshore entities and foreign bank accounts that were used to conceal from the IRS approximately $225 million of capital gains income that Smith had earned. In approximately March 2000, Kepke allegedly created a Nevisian limited liability company (Flash Holdings) and a Belizean trust (Excelsior Trust) to serve as the tax evasion vehicles. When Smith earned capital gains income from his private equity funds, a portion was allegedly deposited into Flash’s bank accounts in the British Virgin Islands and Switzerland. As alleged, Smith was able to hide this income because Excelsior, and not Smith, was the nominal owner of Flash. Smith then allegedly failed to timely and fully report his income to the IRS. Kepke allegedly assisted in the preparation of Smith’s false 2012 to 2014 returns.
The indictment alleges that since 2007 Smith paid Kepke more than $1,000,000 for his services. These fees, as charged, included an annual payment for Kepke to purge or “securitize” his records related to Smith, Excelsior, and Flash.
An indictment contains only allegations and the defendants is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kepke’s initial federal court appearance on the charges is scheduled for April 22 before U.S. Magistrate Judge Jacqueline Scott Corley. If convicted, Kepke faces a maximum term of up to five years in prison on the conspiracy count and three years in prison for each count of assisting in the preparation of a false return. The court also may order an additional term of supervised release, restitution, and additional fines, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman and Department of Justice Senior Litigation Counsel Corey Smith and Trial Attorneys Lee Langston and Christopher Magnani of the Tax Division are prosecuting the case. This case is the result of an investigation by IRS-CI.
St. Louis Man Sentenced to 12 Years in Prison for Enticing Illinois Minor, Traveling to Engage in Illicit Sexual ConductRead the Press Release
Belleville, Ill. – Earlier today, Joseph L. Hughes, a/k/a “Joe King,” 29, of St.
Louis, Missouri, was sentenced to 149 months in prison for enticing a 14-year old girl to engage in sex and traveling across state lines to have sex with her. Hughes committed the offenses in late
2018 and pled guilty to the three-count federal indictment in October 2020.
According to court filings, Hughes and the minor victim used Facebook Messenger to communicate. Hughes later traveled from St. Louis to the girl’s home in Belleville, Illinois, to have sex with her on Nov. 24, 2018, and Dec. 8, 2018. As part of his guilty plea, Hughes admitted that the victim told him her age right away, and that he knew what he did was against the law.Hughes’s sentence includes a five-year term of supervised release and a $300 fine.
The case was investigated by the FBI, the Belleville Police Department, the St. Clair
County Sheriff’s Department, and the St. Louis County Police Department, with assistance from the
St. Clair County States Attorney’s Office. Assistant United States Attorney Angela Scott prosecuted the case.Sioux City Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
A Sioux City man who conspired to distribute methamphetamine around the tri-state area pled guilty April 15, 2021, in federal court in Sioux City.
Leroy Eric McCoy, age 39, from Sioux City, Iowa was convicted of conspiracy to distribute methamphetamine. In a plea agreement, McCoy admitted to conspiring to distributing large quantities of methamphetamine around the tri-state area. McCoy was previously convicted in 2005 of conspiracy to distribute methamphetamine near a private location and possession with intent to distribute methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. McCoy remains in custody of the United States Marshal pending sentencing. McCoy faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and term of five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4039.
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Second of two defendants sentenced in scheme to steal, sell drugs from nursing home patientsRead the Press Release
BRUNSWICK, GA: Two former employees of a nursing and personal care facility have been sentenced after admitting to a scheme in which they stole and resold prescription drugs.
Rochella Ellison, 48, of Townsend, Ga., and Nadia Gibson, 38, of Jacksonville, Fla., each were sentenced to probation after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Alprazolam, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Ellison was sentenced today (Thursday, April 15), while Gibson was sentenced in March.
“All too often, the source of illegally-sold drugs in the community – including dangerously addictive opioids – starts with pilferage of medicine supplies at healthcare facilities,” said Acting U.S. Attorney Estes. “We applaud the work of our law enforcement partners in tracking down and interrupting the sources of illegal drug supplies, no matter where they’re found.”
As described in court documents and testimony, Ellison and Gibson both were employed at a Brunswick, Ga., nursing home and senior living facility, where Ellison worked as a guest services representative, and Gibson as a licensed practical nurse. From as early as Dec. 2019 until early 2020, the two, and others, conspired to steal drugs from patient supplies and resell them for shared profit.
The Drug Enforcement Administration, Brunswick Police Department, and Glynn County Sheriff’s Office took over the investigation after an internal review at the facility discovered the missing drugs. Ellison and Gibson were indicted on federal charges in May 2020.
“The distribution of pain pills for non-medical reasons continues to be a major concern,” said the Special Agent in Charge of the Atlanta Field Division Robert J. Murphy. “Consequently, DEA and its law enforcement partners will continue to target those who traffic these addictive and sometimes deadly pain medications.”
The case was prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Matthew A. Josephson and Mary Sue Robichaux.
Second Trash Company Executive Charged with Bribing San Francisco Public RegulatorRead the Press Release
SAN FRANCISCO – John Francis Porter, the former Vice President and Group Manager of Recology’s San Francisco Group, has been charged in a federal criminal complaint unsealed today with bribing former Director of San Francisco Department of Public Works (DPW) Mohammed Nuru and with money laundering, announced Acting United States Attorney Stephanie Hinds, Internal Revenue Service–Criminal Investigation Acting Special Agent in Charge Michael Daniels, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The complaint unsealed today alleges that Porter, 37, of San Francisco, bribed Nuru and participated in laundering the proceeds of the bribe as part of an alleged years-long scheme to defraud the public of its right to honest services. Porter was Group Controller and later Vice President and General Manager of Recology’s San Francisco Group, which provides refuse collection and disposal services in the City of San Francisco. Porter was a central player in the scheme detailed in the complaint that provided Nuru, then the DPW Director, with a continuous stream of money and benefits to influence Nuru to engage in official acts benefitting Recology.
Nuru resigned as the Director of San Francisco’s DPW after being charged in a January 16, 2020, federal complaint with honest services fraud for a scheme to bribe a San Francisco Airport Commissioner. The prosecution of Nuru remains underway.
Porter is the second Recology employee charged. Paul Giusti, the former Recology San Francisco Group Government and Community Relations Manager who reported to Porter, was charged in a November 18, 2020, federal complaint with bribery and money laundering for his role in the same conduct described in today’s complaint allegations against Porter. Giusti’s prosecution is continuing.
“Once again a person employed by a company contracting with San Francisco has been charged with bribing a San Francisco City Hall official with more than $1 million of funds and benefits,” said Acting U.S. Attorney Stephanie M. Hinds. “A person who pays a bribe is as criminally liable as the public official who takes it. Our investigation of San Francisco City Hall corruption continues. If you have information about corruption among San Francisco public officials or contractors with San Francisco, reach out to the FBI. Your cooperation is important.”“Rooting out public corruption remains one of the highest priorities for IRS – Criminal Investigation,” said Acting Special Agent in Charge Michael Daniels. “IRS – Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners. Pooling the skills and resources of each agency makes a formidable team as we investigate allegations of criminal wrong-doing.”
"John Porter is the eleventh individual charged in the FBI's probe into public corruption in San Francisco City Hall," said FBI Special Agent in Charge D. Fair. "This complaint reflects the FBI’s commitment to hold corporate executive leadership accountable for their actions. The FBI will continue to investigate all individuals, regardless of their position, who seek to improperly influence public officials for corporate gain at the expense of the public. If you have any information on bribery, corruption, or other illegal acts, please contact the FBI."
The specific charge of the complaint alleges that in the summer of 2018, Recology sought to raise the “tipping fees” it charged the City of San Francisco for dumping materials at the Recology Sustainable Crushing facility. During the summer and fall of 2018, the complaint alleges, Porter sought Nuru’s assistance with Recology’s efforts to increase the tipping fee. Porter enlisted the help of his subordinate Giusti, who had a close relationship with Nuru.
The complaint states that Porter emailed Nuru seeking assistance in obtaining the tipping fee increase on November 26, 2018. Thereafter, Giusti agreed to give Nuru a bribe of $20,000 to influence his official actions on the proposed increase. The complaint describes that Porter gave written approval for Recology to issue a $20,000 check described as a “holiday donation” to the Lefty O’Doul’s Foundation for Kids, a non-profit organization to help underprivileged San Francisco children run by Nick Bovis. Giusti provided the bribe money to the Lefty O’Doul’s Foundation, and Bovis used the Recology money to pay for Nuru’s elaborate DPW holiday party, not to help underprivileged San Francisco children. Despite the bribe, the attempt to increase the tipping fee was ultimately unsuccessful. Bovis pleaded guilty to honest services fraud in May 2020 for bribing Nuru.
The complaint further describes Porter’s role in the Recology San Francisco Group’s efforts, acting through executives including Giusti and Porter, to direct benefits to Nuru totaling over $1 million to influence Nuru, who was Recology’s regulator. Recology had an ongoing need for Nuru’s approvals, including for rate increases for residential garbage collection. The complaint cites an email that Porter sent in 2015 to a colleague at Recology: “Mohammed is the Director of the DPW who ultimately signs off on our rates. Needless to say, keeping him happy is important.”
To keep Nuru happy, the complaint alleges that Giusti, with the approval of Porter or Porter’s immediate predecessor, arranged for Recology to provide Nuru with a stream of benefits over years. Porter ultimately approved $55,000 to fund Nuru’s DPW holiday parties in payments disguised as charitable Lefty O’Doul’s Foundation donations. The complaint also describes Porter’s role in approving hundreds of thousands of dollars over years in Recology payments made, at Nuru’s directions, to a San Francisco non-profit, ostensibly for a DPW program called “Giant Sweep.” That non-profit held the money for about a week or two, then took a 5 percent cut and sent the money at Nuru’s direction to accounts controlled by Nuru at another non-profit. Recology’s payments to Nuru were closely tied in time to specific needs for Nuru’s assistance and approval.
Porter is charged with one count of bribery, in violation of 18 U.S.C. § 666(a)(2), and one count of laundering the proceeds of honest services fraud, in violation of 18 U.S.C. § 1956(a)(1)(B)(i). If convicted of bribery, he faces a maximum penalty of 10 years in prison and a fine of $250,000. If convicted of concealment money laundering, he faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, or both. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Porter is expected to make his initial appearance in federal court in San Francisco on April 20, 2021, at 10:30 a.m. before U.S. Magistrate Judge Jacqueline Scott Corley.
Thus far in the San Francisco City Hall corruption probe, 11 defendants have been charged, and multiple defendants have pled guilty. Most recently, Sandra Zuniga, 45, of South San Francisco and the former Director of both the San Francisco Mayor’s Office of Neighborhood Services and San Francisco’s Fix-It Team, entered her plea of guilty to a charge of conspiring to launder money with the former DPW Director Muhammed Nuru. Zuniga entered her guilty plea in a plea agreement that remains partly under seal in which she agrees to cooperate with the FBI in the public corruption investigation relating to San Francisco government.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by IRS Criminal Investigation and the FBI.
Sacramento Man Sentenced to 7 Years in Prison for Falsely Claiming to Be an Attorney and Defrauding Couple of over $500,000Read the Press Release
SACRAMENTO, Calif. — Derek Bluford, 34, of Sacramento, was sentenced today to seven years in prison for wire fraud, money laundering, obstruction of a federal investigation, and making false statements, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bluford told a couple that he was an attorney and could represent them in a dispute they were having with their tenant. After the couple agreed, Bluford then told them that they had incurred numerous fines and court costs, as well as costs to repair their rental unit; he also told them he had negotiated a settlement agreement with the couple’s former tenant. Based on these representations, the couple paid Bluford over $500,000. Bluford, in fact, was not an attorney, and there were no fines or court costs imposed. Bluford laundered the proceeds from his scheme, obstructed a federal investigation, and made false statements to the FBI regarding the investigation.
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
Rochester Man Arrested and Charged with Submitting False Claims to the IRS After Receiving Hundreds of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Eugene Jamar Thomas, 42, Of Rochester, NY, was arrested and charged by complaint with submitting false claims to the Internal Revenue Service. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, during the 2015 and 2016 tax years, the defendant falsely reported income and withholdings to the Internal Revenue Service, claiming to be entitled to millions of dollars in tax refunds. On his 2015 return, Thomas declared that he had earned $819,934 in interest income and that he had $818,834 of that income withheld and paid to the IRS as tax. As a result, the defendant’s 2015 tax return falsely claimed that he was entitled to a refund of $495,655. The IRS ultimately issued Thomas a tax refund check for $482,017. The defendant then deposited the check into two bank accounts in his name, spending a portion of the refunds on two vehicles and cash withdrawals. Subsequently, the IRS determined that Thomas failed to submit all of the proper tax documents with his 2015 tax return, and as a result, the remaining funds in the defendant’s bank accounts were frozen.
Thomas called the IRS hotline to inquire about why his bank accounts were frozen and was told that he was issued an erroneous refund and the bank was contacted to return the funds to the IRS. The defendant was then contacted by an IRS Revenue Officer to discuss the overstatement of income and withholdings that Thomas claimed on his 2015 tax return. The defendant was advised to file an amended 2015 tax return and repay the refund to which he was not entitled. Thomas never filed an amended 2015 tax return and never repaid any portion of the 2015 refund that he wrongfully received.
For the tax year 2016, the defendant again falsely reported income and withholdings to the IRS, claiming he had earned $4,731,845 of interest income in 2016 and had $4,683,641 of that income withheld and paid to the IRS as tax. As a result, Thomas falsely claimed that he was entitled to a refund of $2,683,945. The tax returned was flagged by the IRS and no refund was issued.
Thomas made an initial appearance this afternoon before U.S. Magistrate Judge Mark W. Pedersen and was released.
The criminal complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Red Springs Man Convicted of Firearm OffenseRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Red Springs man yesterday on charges of possession of a firearm as a convicted felon.
According to court records and evidence presented at trial, Jonathan Revels, 57, was convicted for possessing a firearm as a convicted felon. The evidence presented at trial showed that on September 4, 2016, members of the Robeson County Sheriff’s Office and the Red Springs Police Department responded to shots fired on Kate Denny Road. Through the investigation, officers learned that Revels was involved in the shooting. Video evidence showed that Revels brought a firearm to the altercation, which was later recovered by law enforcement. Prior to this date, Revels had been previously convicted in federal court and sentenced to over a decade in federal prison.
Revels is set to be sentenced during the July 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Robeson County Sheriff’s Office, Red Springs Police Department, State Bureau of Investigation, and the Bureau of Alcohol Tobacco and Firearms investigated the case, and Assistant U.S. Attorneys Chad Rhoades and Brandon Boykin 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.7:20-CR-20-BO-2.
Pryor man sentenced to prison for assaulting woman on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS – A Pryor man who admitted beating and strangling a woman on the Fort Belknap Indian Reservation was sentenced today to 34 months in prison and to three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Corey Dane Hill, 36, pleaded guilty on Dec. 16, 2020 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided. Hill was detained.
In court documents filed in the case, the prosecution alleged the assault occurred on Nov. 16, 2019, while Hill was drinking alcohol with the victim, identified as Jane Doe, in Fort Belknap Agency. The two argued. Hill hit the victim in head and strangled her. The victim underwent surgery for injuries.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement.
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North Carolina Man Sentenced in Maryland to 18 Months in Federal Prison for Bank Fraud Scheme Involving $529,000 in Stolen Altered Postal Service Money OrdersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Vantino Johnson, age 23, of Charlotte, North Carolina, in Maryland today to 18 months in federal prison, followed by five years of supervised release on the federal charges of bank fraud conspiracy and bank fraud, in connection with a scheme to negotiate stolen altered postal service money orders at victim financial institutions. Judge Xinis ordered that Johnson pay restitution in the full amount of the victims’ losses, $272,087.19.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, between May and October 2019, Johnson and others conspired to defraud victim financial institutions by negotiating stolen and fraudulent postal money orders. Specifically, Johnson admitted that he and his co-conspirators stole money orders from post offices in Maryland and North Carolina, then altered the stolen money orders to reflect being issued for $800 or $1,000. Johnson and his co-defendants then deposited the stolen and altered money orders into bank accounts that had been opened at the victim financial institutions in the names of identity theft victims, using those victims’ means of identification without their knowledge or permission.
On October 17, 2019, law enforcement executed search warrants at two residences in North Carolina associated with Johnson and at a residence in Waldorf associated with Beamon. A search of Johnson’s residences as well as his vehicle recovered: receipts showing the deposit of stolen postal money orders; debit cards for bank accounts that were opened in a number of victims; money orders stolen from various post offices; stolen and altered money orders; blank paper printed with amounts, issue dates, and post office zip codes; and a loaded firearm.
A search of the Waldorf residence associated with Beamon recovered: a stolen postal arrow key used to open United States Postal Service collection boxes; checks that were stolen from the mail; blank paper printed displaying amounts, issue dates, and post office zip codes; and approximately 37 postal money orders. Law enforcement also seized nine firearms from Beamon’s residence, including one AR-15 style ghost gun assault rifle, firearms with extended magazines, and approximately 553 rounds of various ammunition.
As detailed in their respective plea agreements, between May and October 2019, in Maryland and North Carolina, Johnson deposited 61 fraudulent postal money orders into at least 12 bank accounts that had been opened using the identification of at least 11 separate individuals. Beamon deposited 34 fraudulent postal money orders into at least 6 bank accounts that had been opened using the identification of at least 5 separate individuals. During the course of the conspiracy, it was foreseeable to Johnson and Beamon that the conspirators negotiated $529,000 in stolen money orders. At least $150,200 was negotiated into accounts controlled by Johnson, and at least $124,800 was negotiated into accounts controlled by Beamon.
Johnson’s co-conspirator, Remy Beamon, age 24, of Waldorf, Maryland, pleaded guilty to federal charges for a bank fraud conspiracy and for bank fraud, as well as for being a felon in possession of a firearm and was sentenced on February 18, 2021, to 51 months in federal prison.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Rajeev Raghavan, who prosecuted the case.
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New Orleans Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JAYLON JOHNSON, age 23, a resident of New Orleans, Louisiana was sentenced on April 13, 2021 to thirty-three months in the Bureau of Prisons following his plea to a one-count indictment by a federal grand jury. Additionally, JOHNSON was sentenced to serve one year of supervised release following imprisonment and to pay a $100.00 special assessment fee. JOHNSON was charged with Possession of Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The Honorable Susie Morgan sentenced JOHNSON.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department conducted an investigation into gun violence and narcotics trafficking in the Hollygrove neighborhood. On October 13, 2020, JOHNSON was observed in possession of a fully concealed firearm while riding his bicycle. The officer articulated that he observed the outline of the firearm underneath JOHNSON’s shirt as he rode his bicycle. Upon being instructed to stop his bicycle, JOHNSON fled from officers on foot. While fleeing, JOHNSON discarded the firearm. Following a foot pursuit, JOHNSON was arrested. Officers recovered the firearm after retracing JOHNSON’s path of flight.
U.S. Attorney Duane A. Evans praised the work of the Bureau of Alcohol, Tobacco, and Firearms and the the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution of this case.
New Jersey Man Charged with Fraudulently Obtaining More Than $150,000Read the Press Release
NEWARK, N.J. B A Camden, New Jersey, man was arrested this morning for fraudulently obtaining more than $150,000, Acting U.S. Attorney Rachael A. Honig announced.
Alfred Powner II, 39, is charged by complaint with one count of wire fraud. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge James B. Clark III.
According to the complaint:
The State of New Jersey, Unclaimed Property Administration (UPA), maintains a system to collect and maintain “abandoned” funds owed to New Jersey persons and entities. The UPA’s online website allows users to verify whether the UPA is holding funds for a particular person or entity. A person or entity seeking to claim funds held by the UPA on its behalf can use the UPA’s online portal to request a distribution of funds. From September 2019 through March 2020, Powner submitted a fraudulent application and other fraudulent information to the UPA in support of his claim for a distribution. As a result, Powner received approximately $150,000 from the UPA.
The New Jersey Department of Labor & Workforce Development (NJDOL) administers and manages unemployment insurance benefit (UIB) programs. Records revealed that NJDOL caused approximately $5,000 to be sent to a bank account Powner controlled in response to a claim for UIBs. NJDOL also received two additional UIB claims, from purportedly separate claimants, that requested that UIB funds be sent to Powner’s bank account. The three individuals whose names were used to make these UIB claims were deceased at the time the UIB claims were made.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits to Powner or twice the gross loss suffered to the victims of his offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, in Manhattan, New York, special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrest. She also thanked New Jersey’s Unclaimed Property Administration and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
New Jersey Company Pleads Guilty to Committing an Osha Violation That Resulted in A Worker’s DeathRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dana Container, Inc., (“Dana”), headquartered in Avenel, New Jersey, pled guilty on April 14, 2021, before U.S. Magistrate Judge Joseph F. Saporito, Jr., to willfully committing an OSHA violation that resulted in an employee’s death, as charged in a criminal Information.
According to Acting United States Attorney Bruce D. Brandler, the criminal information to which Dana pleaded guilty alleges that Dana utilized the trade name “Dana Rail Care” for a portion of its business activity related to the maintenance and cleaning of the interior of rail cars, and that in or about March of 2019, Dana contracted with another firm to clean crude oil residue from approximately 100 rail cars that were located at a rail yard in Pittston, Pennsylvania.
Under regulations issued by the Occupational Safety and Health Administration (“OSHA”), an employee who is tasked by his or her employer to work in a confined space, like the interior of a rail car, must be protected in various ways. Employers are required to test and monitor atmospheric conditions within the space to ensure that the atmosphere is non-hazardous and to purge, flush or ventilate the space as necessary to eliminate or control any atmospheric hazards, including oxygen concentrations below 19.5 percent. Employers must also outfit any employee tasked with working in any atmosphere considered to be potentially hazardous with a particular type of OSHA-certified respirator.
On May 31, 2019, a Dana employee entered one of the rail cars at the Pittston site in order to scrape crude oil from the walls of the car. About 30 minutes later, the employee collapsed inside the car. He later died on scene, with the cause of death ruled asphyxiation. The atmosphere inside the car was determined to be oxygen-deficient and although Dana was aware of applicable OSHA regulations, the employee had not been outfitted with the proper OSHA-certified respirator.
“The death of the employee was a tragedy and could have been avoided if the company had followed the regulations for this type of dangerous activity,” stated Acting U.S. Attorney Bruce D. Brandler. “Our office and OSHA take these cases very seriously and willful violations of OSHA regulations will be aggressively prosecuted to deter this type of behavior and ensure that workers are protected.”
The charge stems from an investigation by the Occupational Safety and Health Administration (OSHA) and the Department of Labor, Criminal Investigation Division. Assistant U.S. Attorney Jeffery St John is prosecuting the case.
A sentence following a finding of guilt will be imposed by the Judge after consideration of the applicable federal sentencing statutes.
The maximum penalty under federal law for this offense is a $500,000 fine and a 5-year term of probation. Under federal law, 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 and protect the public. 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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Music “tourist” sent to prison for cocaine traffickingRead the Press Release
CORPUS CHRISTI, Texas - A 40-year-old felon from Florida has been sentenced for conspiracy to distribute nearly 10 kilograms of cocaine in the Coastal Bend area, announced Acting U.S. Attorney Jennifer B. Lowery.
Terrance Collins, Tallahassee, Florida, pleaded guilty Nov. 10, 2020.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Collins to serve a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted his extensive criminal history including 27 prior convictions totaling nearly 100 months of confinement.
“This sentence sends a clear message that drug traffickers will be held accountable for their crimes,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA). “This investigation is another example of our collective efforts to attack drug trafficking organizations at every level.”
On or about July 4, 2020, Collins arrived from Florida to attend a purported music festival in the South Padre Island area. He left a few days later via bus.
However, during a routine inspection at a checkpoint along the way, a service K-9 alerted to luggage linked to Collins.
Law enforcement ultimately discovered 10 concealed bundles containing cocaine, weighing approximately 9.134 kilograms. The drugs had an approximate street value of $250,000.
He admitted he was to transport the narcotics back to Florida and was to be paid $1,000.
Previously released on bond, Collins was ordered into custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
DEA and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Monongalia County woman admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ashley Johnson, of Morgantown, West Virginia, has admitted to her role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Johnson, age 34, pled guilty to one count of “Unlawful Use of Communication Facility.” Johnson admitted to using ap hone to distribute methamphetamine, cocaine base, also known as “crack,” cocaine hydrochloride, also known as “coke,” fentanyl, and heroin in April 2020 in Monongalia County.
Johnson faces up to four 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. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Monongalia County man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel McClung, of Morgantown, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
McClung, 40, pled guilty to one count of “Maintaining Drug-Involved Premises.” McClung admitted to keeping an apartment in Morgantown for the purpose of distributing heroin and cocaine base, also known as “crack.” In March 2020 in Monongalia County.
McClung faces up to 20 years of incarceration and a fine of up to $500,000. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Member of Violent Street Gang “11 Hunnit” Pleads Guilty to RICO ChargeRead the Press Release
PITTSBURGH - A former resident of the City of Pittsburgh pleaded guilty in federal court to a violation of the Racketeer Influenced Corrupt Organizations Act (commonly known as RICO), Acting United States Attorney Stephen R. Kaufman announced today.
Richard Kelly, 26, formerly of the Pittsburgh’s Hill District neighborhood, pleaded guilty to one count of RICO conspiracy before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Mr. Kelly acknowledged that he was a member of the violent street gang known as "11 Hunnit," which operated in the Hill District neighborhood of Pittsburgh. Mr. Kelly acknowledged that he, along with alleged codefendants Sydney Pack, Dionte Griffin, and others, conspired to conduct and participate in the conduct in the affairs of the 11 Hunnit gang through a pattern of racketeering activity consisting generically of acts involving murder, robbery, and the distribution of controlled substances. Mr. Kelly acknowledged his personal participation in certain overt acts that were done in furtherance of the RICO conspiracy, which included a June 2015 incident wherein Mr. Kelly was in a stolen vehicle with other gang members where police found numerous stamp bags of heroin and a stolen firearm previously used in a shooting; an incident in October 2016 wherein Mr. Kelly and another 11 Hunnit member conspired to rob an unknown person in the Hill District neighborhood; and two shootings on December 4, 2016.
Judge Bissoon scheduled sentencing for August 12, 2021, at 2:15 p.m. The law provides for a total sentence of not more than twenty years in prison, a fine of not more than $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 remanded Mr. Kelly to the custody of the United States Marshals Service.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, together with the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Mr. Kelly. This prosecution is a result of an Organized Crime Drug Enforcement Task Force ("OCDETF") investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian K. Griffey, of Fairmont, West Virginia, was sentenced today to 180 months incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Griffey, age 51, pled guilty to one count of “Unlawful Possession of a Firearm and Ammunition” in March 2019. Griffey, having been previously convicted of multiple felonies, admitted to having a 12-gauge shotgun and shotgun shells in Harrison County in June 2018.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nutter Fort Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Manhattan Construction Business Operator Sentenced to 19 Months in Prison for Tax FraudRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced today that BILAL SALAJ was sentenced in Manhattan federal court to 19 months in prison for perpetrating tax fraud. SALAJ previously pled guilty before U.S. Magistrate Judge Ona T. Wang to conspiracy to defraud the Internal Revenue Service (“IRS”), tax evasion, and failure to pay over payroll taxes. U.S. District Judge P. Kevin Castel, who accepted SALAJ’s guilty plea, imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Bilal Salaj failed to pay his tax obligations to the IRS and maintained a cash payroll for his business while cheating the government out of almost $1 million. Our self-assessment system of tax reporting is not synonymous with ‘forthrightness optional.’ The government — and especially our law enforcement partners — won’t miss, overlook, or ignore those who misreport on their tax returns. In the competitive small business world, being dishonest and underreporting tax obligations might be tempting. But Salaj’s sentence is a reminder that tax fraud is a serious federal crime and not worth the risk.”
According to the allegations contained in the Information to which SALAJ pled guilty, court filings, and statements made in public court proceedings:
At all relevant times, BILAL SALAJ, a citizen and resident of the United States, operated a construction business in Manhattan. Initially, SALAJ was the record owner of the business, but in approximately July 2014, SALAJ began operating the business under a new entity that, on paper, was wholly owned by a third party (“Individual-1”), who worked for SALAJ in the construction business. Despite this purported change in ownership, SALAJ continued to exercise principal control and decision-making authority over the business and its financial affairs. In particular, SALAJ was a responsible person under federal law for collecting, truthfully accounting for, and paying over payroll taxes for the business to the IRS.
Between at least in or about 2014 and in or about June 2019, SALAJ devised and perpetrated a scheme to evade a substantial portion of both the payroll taxes for the construction business and SALAJ’s personal income taxes for the period 2014 through 2018. During this period, SALAJ cashed, and caused Individual-1 to cash, approximately $3.2 million in business checks payable to the construction company at check cashing facilities in Manhattan, instead of depositing them into the company’s operating bank account. SALAJ and Individual-1 used a portion of the proceeds from the cashed checks to pay cash wages to employees of the construction business, and spent most of the rest on personal expenses. SALAJ did not withhold or pay over to the IRS any payroll taxes on the cash wages paid to the employees, and did not report to the IRS or pay any personal income taxes on the cash income he realized through the cashed checks. As part of the tax evasion scheme, SALAJ fraudulently withheld from his accountant any records relating to the cashed business checks, and thereby caused false tax returns to be filed with the IRS. The tax evasion scheme, including relevant conduct, resulted in a tax loss to the IRS of approximately $952,778.
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In addition to the prison term, Judge Castel ordered SALAJ, 56, of Morganville, New Jersey, to pay restitution to the IRS in the amount of $952,778. SALAJ was also ordered to serve three years of supervised release.
Ms. Strauss praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Olga I. Zverovich is in charge of the prosecution.
Man Sentenced to 25 Years in Federal Prison for Attempted Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced James Lee Crooker, age 36, was sentenced today, after having pleaded guilty to three counts of attempted production of child pornography, each involving a different victim, on June 17, 2020. Chief United States District Judge Stanley A. Bastian sentenced Crooker to a 25-year term of imprisonment, to be followed by a lifetime term of court supervision after he is released from federal prison.
Crooker had previously entered a guilty plea to one count of production of child pornography pertaining to one minor aged victim, and he was sentenced to 15 years imprisonment. However, on his motion, his conviction and sentence were vacated. Today’s 25-year sentence follows a superseding indictment, wherein he was charged with additional acts of child exploitation, several of which committed against additional victims.
According to information disclosed during court proceedings, the investigation began after law enforcement received information about sexually-explicit communications on a cellular telephone between a 15-year-old developmentally delayed child and a then 32-year-old male, James Lee Crooker. Investigators quickly determined Crooker was a registered sex offender. As the investigation progressed, authorities learned that Crooker had asked the child to send him sexually explicit photographs of herself and she sent them through Facebook and Kik Messenger. She had told Crooker she was 15-years old, but he still requested the photos. She had met Crooker in person and they had discussed meeting to engage in sex. Investigators found the explicit photographs the minor victim sent on Crooker’s smartphone.
While Crooker was under investigation for the photographs produced of the 15-year old child, Facebook alerted law enforcement that Crooker was also communicating in a sexually-explicit manner with a 13-year old child in Ohio, who had also taken and sent sexually-explicit photographs to Crooker who was in Eastern Washington via Facebook, at his request.
In November, 2019, the FBI interviewed another child who resided locally and who investigators believed to be a witness to other aspects of the case. However, the child soon revealed to the FBI Agent that she too had been in a sexual relationship with Crooker, when she was 16 years old. Crooker communicated with her primarily via Facebook. Crooker asked her for sexually explicit photographs repeatedly.
At sentencing Chief Judge Bastian noted he felt compelled to protect the public and provide adequate deterrence from future misconduct. Judge Bastian told Crooker he gave him credit for pleading guilty but noted, “you have accepted responsibility reluctantly and late.” Crooker had commented he knew it was time for him to grow up, to which Judge Bastian responded, that was good, but he had victimized children who wanted to grow up too and wanted to grow up not being a victim.
Acting U.S. Attorney Joseph H. Harrington said, “The lengthy sentence imposed today demonstrates the severity of Crooker’s criminal conduct. The United States Attorney’s Office for the Eastern District of Washington is committed to protecting vulnerable victims and prosecuting individuals who engage in conduct in which they attempt to produce child pornography and sexually exploit children. I commend the outstanding work of our federal and state partners who worked collaboratively in the investigation of this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Federal Bureau of Investigation with assistance from the Yakima Police Department, Yakima County Sheriff’s Office, and the Southeast Regional Internet Crimes Against Children Task Force. This case was prosecuted by Alison L. Gregoire, Assistant United States Attorney for the Eastern District of Washington.
Maine Man Charged with Hate Crime Offenses for Arson of Predominantly Black ChurchRead the Press Release
A Maine man was charged today in federal court in Springfield, Massachusetts, in connection with setting the Dec. 28, 2020, fire that destroyed the Martin Luther King Jr. Community Presbyterian Church in Springfield.
Dushko Vulchev, 44, of Houlton, was charged by criminal complaint with four counts of damage to religious property involving fire and one count of use of fire to commit a federal felony. Vulchev is currently in state custody and will make an initial appearance in federal court in Springfield at a later date.
The Martin Luther King Jr. Community Presbyterian Church in Springfield has a primarily Black congregation, and the church is named in honor of civil rights leader Dr. Martin Luther King Jr. According to court documents, an intentionally set fire caused extensive damage to the church in the early morning hours of Dec. 28, 2020. In court documents, the government alleges that Vulchev set the Dec. 28 fire. The government also alleges that Vulchev is also responsible for several other fires set on church property and for a series of tire slashings on church property and in the surrounding area. The additional fires alleged include a fire at the backdoor of the church on Dec. 13, 2020, and two additional fires near the rear door of the church on Dec. 15, 2020. The investigation, including the review of security videos and location data from Vulchev’s mobile telephone, showed Vulchev at or near the scene of many of the alleged crimes, including the Dec. 28, 2020, fire that severely damaged the church.
In addition, according to charging documents, a subsequent search of Vulchev’s vehicle and electronic devices revealed messages from Vulchev demonstrating Vulchev’s hatred of Black people, including recent messages from Vulchev in December 2020 calling to “eliminate all N****s.” In addition, the devices contained images demonstrating Vulchev’s racial animus toward Black people.
The charge of damage to religious property involving fire provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of fire to commit a federal felony provides for a sentence of at least 10 years in prison, in addition to any sentence received for the other charged crimes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division; Acting U.S Attorney Nathaniel R. Mendell of the District of Massachusetts; Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Field Division; Special Agent in Charge Kelly Brady of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)'s Boston Field Division; and Massachusetts State Police Fire Marshal Peter Ostroskey made the announcement.
Assistance was provided by Hampden District Attorney’s Office; Berkshire District Attorney’s Office; Springfield Police Department; Springfield Fire Department; Pittsfield Police Department; American International College Police Department; Houlton (Maine) Police Department; and Newington (Conn.) Police Department.
The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla, Chief of Mendell’s Springfield Branch Office, and Trial Attorneys Timothy Visser and Kyle Boynton of the Justice Department’s Civil Rights Division.
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.
Maine Man Charged with Hate Crime Offenses for Arson of Martin Luther King, Jr. Community Presbyterian Church in SpringfieldRead the Press Release
BOSTON – A Maine man was charged today in federal court in Springfield in connection with setting the Dec. 28, 2020 fire that destroyed a predominately Black church in Springfield, Mass.
Dushko Vulchev, 44, of Houlton, Maine, was charged by criminal complaint with four counts of damage to religious property involving fire and one count of use of fire to commit a federal felony. Vulchev is currently in state custody and will make an initial appearance in federal court in Springfield at a later date.
The Martin Luther King, Jr. Community Presbyterian Church in Springfield, Mass. has a primarily Black congregation, and the church is named in honor of civil rights leader Dr. Martin Luther King, Jr. According to court documents, an intentionally set fire caused extensive damage to the church in the early morning hours of Dec. 28, 2020. In court documents, the government alleges that Vulchev set the Dec. 28 fire. The government also alleges that Vulchev is also responsible for several other fires set on church property and for a series of tires slashings on church property and in the surrounding area. The additional fires alleged include a fire at the backdoor of the church on Dec. 13, 2020 and two additional fires near the rear door of the church on Dec. 15, 2020. Investigation, including the review of security video and location data from Vulchev’s mobile telephone, showed Vulchev at or near the scene of many of the alleged crimes, including the Dec. 28, 2020 fire that severely damaged the church
In addition, according to charging documents, a subsequent search of Vulchev’s vehicle and electronic devices revealed messages from Vulchev demonstrating Vulchev’s hatred of Black people, including recent messages from Vulchev in December 2020 calling to “eliminate all N****s.” In addition, the devices contained images demonstrating Vulchev’s racial animus toward Black people.
The charge of damage to religious property involving fire provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of fire to commit a federal felony provides for a sentence of at least 10 years in prison, in addition to any sentence received for the other charged crimes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and State Fire Marshal Peter Ostroskey made the announcement today. Assistance was provided by Hampden District Attorney’s Office; Berkshire District Attorney’s Office; Massachusetts State Police; Springfield Police Department; Springfield Fire Department; Pittsfield Police Department; American International College Police Department; Houlton (Maine) Police Department; and Newington (Conn.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla, Chief of Mendell’s Springfield Branch Office, and Trial Attorneys Timothy Visser and Kyle Boynton of the Justice Department’s Civil Rights Division.
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.
Louisiana Doctor Sentenced to Prison for Conspiring to Receive Health Care KickbacksRead the Press Release
A Louisiana doctor was sentenced today to 18 months in prison for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.
Gray Wesley Barrow, M.D., 61, of Baton Rouge, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks on Nov. 20, 2018. According to court documents, Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for an unlawful kickback calculated as a percentage of the reimbursements paid to the laboratory by Medicare and other health care benefit programs.
From approximately January 2014 through July 2016, Barrow sent specimens collected from his patients to the laboratory and received approximately $1.58 million in disbursements from the laboratory. Of that $1.58 million, approximately $336,000 represented kickback payments associated with testing performed on specimens of Medicare beneficiaries, which the court ordered Barrow to forfeit as part of today’s sentence. Additionally, Barrow was ordered to pay $336,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Ellison C. Travis of the Middle District of Louisiana; Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office; and Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the U.S. Attorney’s Office for the Middle District of Louisiana prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Louisiana Doctor Sentenced to Prison for Conspiring to Receive Health Care KickbacksRead the Press Release
A Louisiana doctor was sentenced today to 18 months in prison for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.
Gray Wesley Barrow, M.D., 61, of Baton Rouge, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks on Nov. 20, 2018. According to court documents, Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for an unlawful kickback calculated as a percentage of the reimbursements paid to the laboratory by Medicare and other health care benefit programs.
From approximately January 2014 through July 2016, Barrow sent specimens collected from his patients to the laboratory and received approximately $1.58 million in disbursements from the laboratory. Of that $1.58 million, approximately $336,000 represented kickback payments associated with testing performed on specimens of Medicare beneficiaries, which the court ordered Barrow to forfeit as part of today’s sentence. Additionally, Barrow was ordered to pay $336,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Ellison C. Travis of the Middle District of Louisiana; Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office; and Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the U.S. Attorney’s Office for the Middle District of Louisiana prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Lebanon County Man Sentenced to Seventy Months’ Imprisonment for Trafficking Counterfeit DrugsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stefen Knoche, age 55, of Lebanon, Pennsylvania, was sentenced today to 70 months’ imprisonment by U.S. District Court Judge Sylvia H. Rambo for trafficking in counterfeit drugs. Knoche was also ordered to pay $3,648,911.18 in restitution.
According to Acting United States Attorney Bruce D. Brandler, Knoche previously admitted that he intentionally trafficked drugs knowing them to contain counterfeit marks of pharmaceutical manufacturers Pfizer Pharmaceuticals, Bayer AG, Eli Lilly and Company, and Roche Holding AG between May 2017 and April 2018. Knoche further acknowledged that he trafficked counterfeit Viagra, Aurogra, Xanax, Levitra, Cialis, and Valium, all using counterfeit trademarks of their respective pharmaceutical companies.
“The U.S. Postal Inspection Service continues to prioritize eliminating contraband to include illegal prescription drugs from the U.S. Mail,” said Inspector in Charge Damon Wood, U.S. Postal Inspection Service Philadelphia Division. “We are committed to bringing all members of illegal drug trafficking organizations who utilize the U.S. Mail to justice.”
“Selling illegal prescription drugs in the U.S. marketplace puts consumers’ health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA remains fully committed to disrupting and dismantling illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety.”
“Today’s sentence demonstrates what can be accomplished when the Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Food and Drug Administration Office of Criminal Investigations, combine resources to investigate and apprehend criminals whose illicit actions harm Americans,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Together we are committed to pursuing justice by investigating, dismantling, prosecuting criminals like the defendant to the fullest extent of the law.”
The case was investigated by the U.S. Postal Inspection Service; U.S. Food and Drug Administration, Office of Criminal Investigations; and Homeland Security Investigations. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Leader of Philadelphia Drug Trafficking Gang and Rap Artists “Original Block Hustlaz” Sentenced to 45 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Abdul West, 38, of Brookhaven, PA, was sentenced to 45 years in prison, ten years of supervised release, and ordered to pay a $5,000 fines by United States District Judge Michael M. Baylson for his role as the leader of the Original Block Hustlaz, or “OBH,” a violent drug trafficking organization that doubled as a group of aspiring rap artists in Philadelphia. Two of West’s co-defendants, Jamaal Blanding, 39, and Jameel Hickson, 43, both of Philadelphia, PA, were also recently sentenced and received 25 and 20 years in prison, respectively.
In November 2019, all three defendants, plus an additional defendant who is still awaiting sentencing, Hans Gadson, 36, also of Philadelphia, PA, were convicted, after a two-and-a-half-week trial on charges that included conspiracy to distribute controlled substances, and distribution of or possession with intent to distribute cocaine, crack, and methamphetamine. Several other co-defendants pled guilty prior to trial. In total, nine defendants connected to OBH were charged in a 16-count Second Superseding Indictment in August 2019. All nine were convicted or pled guilty.
Between at least March 2017 through June of 2018, OBH poisoned the Philadelphia community by importing dangerous narcotics, including large quantities of methamphetamine and cocaine, from California to Philadelphia and then selling those drugs in the Philadelphia area. To further their drug business, OBH employed fear, intimidation, and violence. West was the driving force behind the violent character of OBH and routinely posted rap videos and other messages on social media in which he communicated threats of violence, and which demonstrated his power and authority within the organization. According to court documents, West ordered a member of the organization to murder a former member of the group, identified as R.J., because West believed R.J. was involved with West’s “enemy” and “playing both sides of the fence.” R.J. was ultimately shot multiple times and died.
In September 2017, officers and detectives from the Philadelphia Police Department executed a search warrant at 3234 North Sydenham Street, which was a property used by members of OBH to store and sell drugs. During the execution of the search warrant, numerous drugs were seized, including approximately 62 grams of cocaine base (“crack”), 229 grams of heroin, and 48 grams of a methamphetamine mixture. The officers also seized $8,101 from the residence.
In May 2018, FBI agents executed a search warrant on an apartment on Columbus Boulevard, another property used by OBH to store drugs. During the execution of the search warrant, the FBI and seized 10 kilograms of cocaine, nearly 6 pounds of pure methamphetamine, and $20,000 in cash.
In a related case, defendant Charles Salley, 39, of Clayton, Delaware, pleaded guilty to witness tampering in connection with the above-referenced trial. During the trial, a cooperating witness received a threatening letter from Salley under the pen name “Ron Harvey,” threatening physical violence if the witness testified at trial against West and his OBH associates. Salley was present in the courtroom during the course of the trial, including on the day of the witness’ scheduled testimony. The threatening letter was investigated by the FBI and the witness ultimately testified during the trial. Salley is scheduled to be sentenced in August 2021.
“West and his OBH co-defendants pumped huge quantities of deadly drugs into our community,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant’s violent lyrics weren’t just creative expression, they were truthful depictions of the mayhem OBH created on the streets of Philadelphia. Our Office is determined to continue doing everything we can by being ‘All Hands On Deck’ to get violent criminals like OBH off the streets.”
This West/OBH case is part of the FBI’s Violent Gang Safe Streets Task Force, a program through which federal, state, and local law enforcement agencies collaboratively address the violent crime plaguing communities. It was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Timothy M. Stengel. The Salley case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Lawton Man Convicted of Bank Robbery Involving a Fake BombRead the Press Release
OKLAHOMA CITY – This afternoon, a federal jury in Oklahoma City found JOHN SCOTT BROOKS, 55, of Lawton, guilty of bank robbery involving a fake bomb, announced Acting U.S. Attorney Robert J. Troester.
According to evidence at trial, on March 23, 2020, Brooks pulled up to the drive-through teller lane at the Southwest Oklahoma Federal Credit Union located at 6714 West Gore Boulevard, Lawton, Oklahoma, and placed a fake bomb in the teller drawer. He immediately showed the teller a timer, which was counting down. Brooks then attempted to get away with the robbery by altering the appearance of his vehicle, creating a cover story, and erasing electronic information from his cell phone. Evidence at trial included bank surveillance footage of the robbery, a bank robbery list found at Brooks’ residence, and a vehicle image comparison analysis performed by an FBI forensic examiner. Multiple witnesses testified that they recognized Brooks in the still photo of the surveillance footage taken from the robbery.
The trial lasted two days and the jury deliberated approximately two hours before finding Brooks guilty of one count of bank robbery. He was acquitted on a count of making a bomb threat.
At sentencing, Brooks faces up to twenty-five years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution. Sentencing will take place in approximately 90 days. Mr. Brooks has been in custody since his arrest on April 2, 2020.
This case is the result of an investigation by the Federal Bureau Investigation’s Oklahoma City Field Office and the Lawton Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Stan West prosecuted the case.
Reference is made to public filings for more information.
Lauderdale Man Pleads Guilty under Project EJECT to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Levi Gibbs, Jr., 51, of Lauderdale, Mississippi pled guilty today before U.S. Chief District Court Judge Daniel P. Jordan III, to possession of a firearm by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Mississippi.
On March 27, 2020, Meridian police officers stopped a vehicle being driven by Gibbs after an officer observed Gibbs crossing over the center line of the road and speeding. When an officer approached the passenger side of Gibbs’ car, he saw a pistol in an ankle holster on Gibbs’ right leg. The officer checked Gibbs’ criminal record and discovered that Gibbs was a convicted felon. In fact, Gibbs had multiple felony convictions, several of which are for various drug crimes. Gibbs is currently under indictment from the Circuit Court of Lowndes County, Mississippi for Armed Robbery. As a convicted felon it is against federal law for Gibbs to possess any firearm.
Gibbs will be sentenced by Judge Jordan on July 23, 2021 and faces a maximum penalty of up to ten years in prison and a $250,000.00 fine.
The case was investigated by the Meridian Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Lafourche Parish Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – KENDALL MATHEWS, a/k/a “DOT,” age 37, a resident of Thibodaux, Louisiana, was sentenced to 120 months’ imprisonment, 5 years of supervised release, and was ordered to pay $1,300.00 in special assessment fees by U.S. District Judge Carl J. Barbier after pleading guilty to thirteen counts of a fourteen-count indictment charging him with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty kilograms or more of methamphetamine, five kilograms or more of cocaine hydrochloride, use of a communication facility to facilitate a drug trafficking crime, and distribution of methamphetamine, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in January 2018, Special Agents with the Drug Enforcement Administration made two controlled purchases of more than 50 grams of methamphetamine each from MATHEWS. After making the controlled purchases, agents obtained court ordered wiretaps of MATHEWS and co-conspirators’ telephones and intercepted numerous calls between MATHEWS, his co-conspirators, and customers in which they discussed the sales of methamphetamine, cocaine hydrochloride, and heroin. Through their continued monitoring of telephone calls, agents identified a pending narcotics transaction and seized two kilograms of cocaine hydrochloride. Also, agents and officers obtained search warrants for co-conspirators’ residences and seized approximately 148 grams of heroin and 1300 grams of a mixture or substance containing methamphetamine.
MATHEWS faced a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Justice Department and FTC Announce Action to Stop Deceptive Marketing of Purported COVID-19 TreatmentsRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced a civil complaint against defendants Eric Anthony Nepute and Quickwork LLC, doing business as Wellness Warrior, in the first enforcement action alleging violations of the COVID-19 Consumer Protection Act.
According to a complaint filed in the U.S. District Court for the Eastern District of Missouri, the defendants advertised that their vitamin D and zinc nutritional supplements could prevent or treat COVID-19 without competent or reliable scientific evidence to support their claims. Further, the defendants allegedly advertised without scientific support that their supplements were equally or more effective therapies for COVID-19 than the currently available vaccines. The complaint seeks civil penalties and injunctive relief to stop the defendants from continuing to make deceptive advertising claims.
The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation or diagnosis of COVID-19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief and other remedies available under the FTC Act. The complaint also alleges violations of the FTC Act, which prohibit unfair and deceptive conduct, and false advertising, respectively.
“The Justice Department is committed to preventing the unlawful marketing of unproven COVID-19 treatments,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “Deceptive marketing of unproven products discourages consumers from following health and safety guidelines provided by public health officials. The unlawful spreading of COVID-19 misinformation to sell a product will not be tolerated.”
“The defendants’ claims that their products can stand in for approved COVID-19 vaccines are particularly troubling: we need to be doing everything we can to stop bogus health claims that endanger consumers,” said Acting Chairwoman Rebecca Kelly Slaughter of the FTC. “With this case, the Commission has quickly put to use its new authority to stop false marketing claims related to the pandemic.”
This matter is being handled by Trial Attorneys Benjamin Cornfeld and Brandon Robers of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Suzanne Moore from the U.S. Attorney’s Office for the Eastern District of Missouri. Kristin M. Williams, Mary L. Johnson and Brady C. Williams represent the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Justice Department Reaches Agreement with the City of West Monroe, Louisiana Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the City of West Monroe, Louisiana.
The Justice Department’s lawsuit, brought under Section 2 of the Voting Rights Act, challenges the current at-large method of electing the West Monroe Board of Aldermen. Under this agreement, the City of West Monroe will change its method of electing its Board of Aldermen to ensure compliance with the protections of the Voting Rights Act.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the current method of electing the West Monroe Board of Aldermen results in Black citizens in West Monroe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice, in violation of Section 2 of the Voting Rights Act. Although Black residents comprise nearly 30% of the electorate, no Black candidate has ever been elected to the West Monroe Board of Aldermen. The complaint does not allege that the current method of election was adopted or maintained with discriminatory intent.
“The Voting Rights Act remains a vital tool to ensure that underrepresented citizens have a fair chance to choose their representatives,” said Principal Deputy Assistant Attorney General Pamela S, Karlan for the Justice Department’s Civil Rights Division. “We appreciate that the City of West Monroe has worked diligently and cooperatively with the department to adopt a solution that provides all the City’s citizens with an equal opportunity to participate in the political process and elect aldermen of their choice.”
“We join the Civil Rights Division in bringing this important lawsuit under the Voting Rights Act and appreciate that the City of West Monroe has worked with the Justice Department to adopt a solution that brings about fair representation,” said Acting U.S. Attorney Alexander C. Van Hook of the Western District of Louisiana.
The department gave notice to the City of West Monroe of its intent to bring suit under the Voting Rights Act on March 4, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree — and subject to approval by the federal district court in Louisiana — West Monroe will discontinue use of its current at-large method of electing the five members of its Board of Aldermen. Beginning with the next municipal election, currently scheduled for March 26, 2022, three members of the Board of Aldermen will be elected from single-member districts and two members will be elected at-large. The agreement also provides West Monroe will publicize the new method of election.
More information about the Voting Rights Act and other federal voting rights laws is available on the Justice Department website at https:www.justice.gov/crt/voting-section.
Justice Department Reaches Agreement with the City of West Monroe under the Voting Rights ActRead the Press Release
MONROE, La. - The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the City of West Monroe, Louisiana. The Justice Department’s lawsuit, brought under Section 2 of the Voting Rights Act, challenges the current at-large method of electing the West Monroe Board of Aldermen. Under this agreement, the City of West Monroe will change its method of electing its Board of Aldermen to ensure compliance with the protections of the Voting Rights Act.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the current method of electing the West Monroe Board of Aldermen results in black citizens in West Monroe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice, in violation of Section 2 of the Voting Rights Act. Although black residents comprise nearly 30% of the electorate, no black candidate has ever been elected to the West Monroe Board of Aldermen. The complaint does not allege that the current method of election was adopted or maintained with discriminatory intent.
The department gave notice to the City of West Monroe of its intent to bring suit under the Voting Rights Act on March 4, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree—and subject to approval by the federal district court in Louisiana—West Monroe will discontinue use of its current at-large method of electing the five members of its Board of Aldermen. Beginning with the next municipal election, currently scheduled for March 26, 2022, three members of the Board of Aldermen will be elected from single-member districts and two members will be elected at-large. The agreement also provides West Monroe will publicize the new method of election.
“The Voting Rights Act remains a vital tool to ensure that underrepresented citizens have a fair chance to choose their representatives,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “We appreciate that the City of West Monroe has worked diligently and cooperatively with the Department to adopt a solution that provides all the City’s citizens with an equal opportunity to participate in the political process and elect aldermen of their choice.”
“We join the Civil Rights Division in bringing this important lawsuit under the Voting Rights Act and appreciate that the City of West Monroe has worked with the Justice Department to adopt a solution that brings about fair representation,” said Acting U.S. Attorney Alexander C. Van Hook of the Western District of Louisiana.
More information about the Voting Rights Act and other federal voting rights laws is available on the Justice Department website at https:www.justice.gov/crt/voting-section.
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Inmate Sentenced for Leading Drug and Sex Trafficking Ring from California Prison CellRead the Press Release
NORFOLK, Va. – A California man was sentenced today to 24 years in prison for organizing and running a methamphetamine trafficking conspiracy and commercial sex trafficking ring from his state prison cell.
“While already imprisoned for a sexual exploitation offense, the defendant organized and led a drug and sex trafficking conspiracy that placed profits over the lives and well-being of vulnerable victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution serves as a reminder that those who exploit and inflict harm on our community members, from behind bars or elsewhere, will be brought to justice.”
According to court documents, Foster Shane Gaines, 44, was serving an eight-year sentence in the California Department of Corrections and Rehabilitation for engaging in the prostitution of an adult woman. Beginning in approximately 2016, Gaines launched a drug trafficking organization that distributed methamphetamine from a source of supply in California to co-conspirators in the Tidewater region of Virginia. Using cellphones smuggled into prison, Gaines directed co-conspirators in California, Nevada, and elsewhere to mail parcels of methamphetamine to co-conspirators in Chesapeake, Virginia Beach, Norfolk, Petersburg, and elsewhere. Once the methamphetamine was distributed to customers during transactions that Gaines, at times, personally arranged using his contraband cellphones, the co-conspirators returned the proceeds from the sales to Gaines and his confederates by way of prepaid stored value cards or bulk cash sent through the mail.
“Gaines’s actions exemplify someone with a complete disregard for our laws and for the welfare of American citizens and deserves to be prosecuted to the fullest extent,” said Raymond Villanueva, Special Agent in Charge for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Sex and drug trafficking are both transnational issues and occur within nearly every region of the United States. HSI is proudly charged with preventing these types of crimes from happening and thwarting criminal networks that capitalize on them.”
In addition to his methamphetamine trafficking, Gaines also organized and led a commercial sex trafficking ring that at times involved approximately ten adult females and two juvenile girls. Again, using his smuggled cellphones, Gaines recruited women and girls to work as prostitutes by contacting them over various social media platforms. In exchange for 40 to 50 percent of their commercial sex proceeds, Gaines created online advertisements for commercial sex, rented hotel and motel rooms, communicated with customers, organized transportation, and otherwise managed their commercial sex activities. Gaines also arranged for a professional photographer to take sexually suggestive photographs of some women for use in the commercial sex advertisements he created for them, and he frequently directed his co-conspirators to provide cocaine, methamphetamine, marijuana, and other drugs to the women and girls. As with the proceeds from the methamphetamine sales, Gaines directed that the women and girls transmit their commercial sex proceeds to him through bulk cash mailings or prepaid stored value cards.
On October 11, 2019, Gaines pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, commonly known as “ice,” and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and conspiracy to engage in sex trafficking of a child.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Paul Neudigate, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; Larry D. Boone, Chief of Norfolk Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-143.
Idaho Falls Man Sentenced to over 16 Years for Sexual Exploitation of ChildrenRead the Press Release
POCATELLO - Richard Neils Dutton, 52, of Idaho Falls, was sentenced in U.S. District Court to 200 months in federal prison for sexual exploitation of children, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered Dutton serve the remainder of his life on supervised release, following his prison sentence. Dutton pleaded guilty to the charge on November 4, 2020.
“Perpetrators who exploit our children prey upon the most vulnerable members in our society,” said Acting U.S. Attorney Gonzalez. “The collaboration between local, state, and federal partners in this case shows our joint commitment to protecting children and holding predators accountable to the full extent of the law.”
According to court records, in January 2020, staff at a local elementary school reported that Dutton was sexually abusing minor aged children. A subsequent investigation discovered that Dutton had produced child pornography using a minor child. Investigators obtained a search warrant for Dutton’s electronic devices and discovered images of the sexual abuse taken on his phone. In court, Dutton admitted that he took the images.
“Crimes of this nature are particularly disturbing, and dangerous sexual predators will continue to be brought to justice through our partnerships with all levels of law enforcement,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This sentencing shows our collective resolve in keeping our communities safe.”
As a result of his conviction, Dutton will be required to register as a sex offender.
This case was investigated by Homeland Security Investigations in Idaho Falls, Idaho Internet Crimes Against Children Task Force, and Idaho Falls Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.
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Hattiesburg Woman Charged with Wire Fraud Related to Employee TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHRISTY BARTHOLOMEW, age 39, of Hattiesburg, Mississippi, was charged on April 14, 2021 in a two-count Bill of Information with wire fraud.
According to court records, BARTHOLOMEW was employed as a financial controller for a business located in Slidell, Louisiana, and later worked as an office manager for a company located in Kenner, Louisiana. From 2016 to October of 2019, she embezzled approximately $357,000 from her Slidell employer by several schemes, including unauthorized use of a company credit card. She later did the same thing with her Kenner employer, embezzling approximately $300,000 from November 2019 to February 2020.
BARTHOLOMEW faces a sentence of up to twenty years in prison, up to $250,000 in fines, and up to three years of supervised release. There is also a $100 mandatory special assessment due after conviction.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Homeland Security – Homeland Security Investigations, along with assistance from the St. Tammany Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Hartford Man Sentenced to 27 Months in Prison for Assaulting USPS EmployeeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DEMORSE KELLEY, 39, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three months in a halfway house and three years of supervised release, for assaulting a U.S. Postal Service letter carrier.
According to court documents and statements made in court, on June 7, 2019, a U.S. Postal Service letter carrier was sorting mail inside her postal delivery van that was parked on Sigourney Street in Hartford. Kelley approached the van from the sidewalk, slid the side door of the van so that it was fully open and then spoke to the letter carrier. Kelley commented the letter carrier on her appearance and asked her for a hug and for her phone number. Kelley then climbed into the postal van and allowed the door to close behind him. During the incident, Kelley touched the letter carrier’s leg below her shorts, made sexual advances and obstructed the letter carrier’s ability to exit. After a few minutes, the letter carrier was able to exit the van and called Hartford Police, who arrested Kelley later that day.
Kelley has been detained since his arrest. He pleaded guilty to the offense on January 21, 2021.
This matter was investigated by the U.S. Postal Inspection Service and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Gang member and convicted felon sentenced to over 11 years in prisonRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old local Corpus Christi resident and member of the Texas Syndicate gang has been ordered to federal prison for his role in a cocaine trafficking conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Adan Rivera pleaded guilty Jan. 7.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 135-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional statements that described Rivera's role during the cocaine trafficking conspiracy and membership in the dangerous Texas Syndicate gang. Before handing down the sentence, Judge Ramos considered Rivera's previous criminal conduct which included felony convictions for aggravated robbery, aggravated assault as well as possession of heroin and cocaine. His continued criminal conduct included an arrest in March for possession with intent to distribute heroin while on bond.
The investigation revealed that in in July 2020, Rivera was involved in a conspiracy with others to possess with intent to distribute nearly 20 kilograms of cocaine. He helped coordinate or protect cocaine or currency with other co-conspirators.
Law enforcement ultimately seized over $250,000 during the course of the investigation.
Previously released on bond, Rivera was taken into custody in March following the heroin trafficking arrest. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from Drug Enforcement Administration, U.S. Marshals Service, Nueces County District Attorney's Criminal Interdiction Unit, Texas Department of Public Safety and Corpus Christi Police Department. Assistant U.S. Attorney Reid Manning prosecuted the case.
Gaffney Man Who Attempted to Murder SC Highway Patrolman Sentenced to PrisonRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney M. Rhett Dehart announced today that William Bernard Wright, a/k/a “Willie” Wright, a/k/a “Quentin Mitchell,” 28, of Gaffney has been sentenced to more than eight years in federal prison, bringing resolution to federal and state criminal cases against Wright for the shooting of a South Carolina Highway Patrolman in 2019.
On Tuesday, April 13, 2021, United States District Judge Mary Geiger Lewis sentenced Wright to 98 months in federal prison, to be followed by the statutory maximum of 36 months of court-ordered supervision, following a conviction for felon in possession of a firearm and ammunition. Wright’s 98-month federal sentence represents the statutory maximum of 10 years with credit for 22 months’ time served on the state sentence for the same conduct, as provided for in the federal sentencing guidelines.
On December 9, 2020, Wright was sentenced to 35 years in state prison, following convictions in the state court system on four charges: attempted murder, possession of a weapon during a violent crime, possession of a weapon by a convicted violent felon, and failure to stop for blue lights.
Wright will serve the federal sentence concurrent to the state sentence.
“Law enforcement officers risk their lives daily to protect and serve our communities,” said Acting U.S. Attorney DeHart. “We will bring the full force of justice against anyone who attempts to take the life of a law enforcement officer in South Carolina. The resolution in these cases could not have been possible without the incredible partnership between the U.S. Attorney’s Office, the 16th Circuit Solicitor’s Office, ATF, SLED, and South Carolina Highway Patrol.”
“This case highlights the dangers our dedicated men and women in law enforcement face every day, and we are grateful for the collaborative process that helps bring to justice those responsible for such senseless crimes,” said ATF Special Agent in Charge Vince Pallozzi. “We applaud Trooper Wise’s bravery and recovery.”
”This officer-involved shooting underscores the sacrifice of serving and the dangers our law enforcement face on the job each day,” said Colonel Chris Williamson, Commander of the South Carolina Highway Patrol. “The South Carolina Highway Patrol commends the decisive and brave actions of Trooper Paul Wise when he was fired upon during this incident. The department is grateful to the U.S. Attorney’s Office and the 16th Circuit Solicitor’s Office for their commitment to seeing justice served in this case.”
Evidence presented to the U.S. District Court showed that on June 2, 2019, Wright was in possession of a FN Herstal, model Five-Seven, semi-automatic pistol and 5.7 x 28mm ammunition at a time he was prohibited under federal law from possessing a firearm or ammunition based on numerous prior felony convictions. At approximately 8:00 PM on that day, Trooper Paul Wise with the South Carolina Highway Patrol was on routine patrol in York County when he observed Wright operating a vehicle without a seatbelt. When Trooper Wise attempted to initiate a traffic stop, Wright fled and failed to stop for blue lights. Wright took the trooper on a car chase before bringing his car to a stop at the end a dead of a road. Wright then exited his vehicle, drew the firearm, pointed it at close range towards the patrolman’s front windshield. Wright then discharged at least 12 rounds at Trooper Wise. Trooper Wise was struck in his ballistic vest in the chest area and sustained other injuries to the right side of his neck. As Wright began to flee, Trooper Wise exited his vehicle, returned fire, striking Wright, ordered Wright to the ground, and then called for backup.
Evidence presented also indicated Wright had numerous convictions prior to the shooting of Trooper Wise, to include pointing and presenting a firearm (2007); assault and battery (2008); discharging a firearm within city limits and unlawful carry of a pistol (2008); resisting arrest (2011); attempted murder, attempted armed robbery, and criminal conspiracy (2013); and assault and battery – second degree (2017). Evidence presented in court indicated Wright had only been out of custody from a prior conviction for about 10 months, and that he had a history of criminal acts or misconduct while in custody and while on supervision.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the South Carolina State Law Enforcement Division (SLED) and the South Carolina Highway Patrol. Assistant United States Attorney Elliott B. Daniels prosecuted the federal case. Deputy Solicitor Willy Thompson prosecuted the state case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fremont Man Convicted of Aggravated Bank RobberyRead the Press Release
Acting United States Attorney Jan Sharp announced that Anthony Wayne Hall, 65, was found guilty today, following a three-day jury trial in federal court in Omaha, Nebraska, for Aggravated Bank Robbery. The Honorable Robert F. Rossiter, Jr., scheduled Hall’s sentencing for July 9, 2021, at 11:00 a.m. Hall faces the potential for life in prison under the federal “three strikes” law, with a mandatory minimum of ten years.
On November 21, 2019, Hall, armed with a realistic-looking replica revolver, robbed the First State Bank in Fremont, Nebraska. Hall left town with approximately $10,000 in cash after walking one bank employee to his vehicle under threat of being shot. A customer who attempted to enter the bank during the robbery was the first to call 911. On November 22, 2019, officers in Saint Joseph, Missouri attempted to stop Hall’s blue Chevrolet Camaro, but the vehicle fled and then crashed into a pole. Hall fled on foot and could not be located. Hall then purchased a white Chevrolet Impala. On November 30, 2019, officers with the Missouri State Highway Patrol attempted to stop the Impala after noticing that the license plates did not match the vehicle. A high-speed pursuit ensued before the Impala crashed into a tree. Hall again fled on foot. Law enforcement located replica firearms, knives, and other items near the crash scene. The next day, on December 1, 2019, a trooper encountered Hall at a nearby gas station and Hall indicated that he was the driver who had fled the night before. Among the cash found on Hall’s person were five bills known to have been taken in the First State Bank robbery.
Hall, who had relocated to Fremont from Indiana approximately two months prior to the First State Bank robbery, has previously been convicted of murder, rape, and at least seven prior robberies. Hall had been released from prison on his prior convictions in 2018.
This case was investigated by the FBI Great Plains Robbery Task Force, the Fremont Police Department, Saint Joseph Police Department, and the Missouri State Highway Patrol.
Four Members of East Texas Methamphetamine and Firearms Trafficking Ring SentencedRead the Press Release
TYLER, Texas – A husband and wife, along with two other co-conspirators in a methamphetamine and gun trafficking ring, were sentenced to federal prison today, announced Acting U.S. Attorney Nicholas J. Ganjei.
Amanda Rae Williams, 32, of Carthage, Texas, and Illona Annette Amburn, 41, of Longview, Texas pleaded guilty on August 4, 2020 to conspiracy to distribute methamphetamine. They were both sentenced to 120 months in federal prison today. Marvin Robert Williams, 38, also of Carthage, Texas, pleaded guilty on Sep. 22, 2020, to use, carrying, and possession of a firearm during and in furtherance of a drug trafficking crime. Today, he was sentenced to 84 months in federal prison. Larry Demontrie Mock, a/k/a “Boogati,” 39, of Houston, pleaded guilty on Dec. 7, 2020 to conspiracy to distribute methamphetamine and was sentenced to 151 months in federal prison today.
The sentencing hearings were conducted before U.S. District Judge J. Campbell Barker. Judge Barker also ordered each defendant to pay forfeiture in the amount of $5,000.00, which represents proceeds derived from their participation in the criminal conspiracy.
“The citizens of East Texas will not tolerate those who pump poison into our communities and traffic firearms in the process,” said Acting U.S. Attorney Nicholas J. Ganjei. “The sentences imposed on the Williams, Mock, and Amburn organization send a strong message to those who would try to profit from the misery of methamphetamine addiction or the violence that comes with underground firearm trafficking. We will continue to investigate and prosecute the most dangerous members of our community, such as these individuals.”
According to court documents and information provided in court, beginning in April 2018, Amburn and Mock began brokering sales of methamphetamine and firearms that were being supplied by Amanda and Marvin Williams and others. During the conspiracy, Amanda and Marvin Williams, Mock, and Amburn sold at least 150 grams of actual methamphetamine and at least 13 firearms during more than 10 separate transactions. Marvin Williams, Mock, and Amburn are previously convicted felons who could not lawfully possess firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; and the Panola County Sheriff's Office and prosecuted by Assistant U.S. Attorney Ryan Locker.
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Former police officer convicted of child pornography chargeRead the Press Release
BROWNSVILLE, Texas - A 32-year-old former officer with the Primera Police Department (PPD) has admitted to possessing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Joel Alex Sandate pleaded guilty today.
The investigation revealed that from September 2019 to March 2020, Sandate had installed hidden cameras to capture recordings of a minor female. He saved the recorded videos onto various computer media devices such as his cellphone, a sim card and a USB drive.
Another PPD officer had discovered the images and reported it to authorities.
U.S. District Judge Fernando Rodriguez Jr. accepted the plea today and set sentencing for July 20. At that time, Sandate faces up to 10 years in federal prison as well as a $250,000 fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation with the assistance of PPD, Texas Rangers and the Cameron County District Attorney’s Office.
Assistant U.S. Attorneys Ana C. Cano and Jose A. Esquivel, Jr. prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Owner of Orange County Wastewater Treatment Company Indicted on Federal Environmental Criminal ChargesRead the Press Release
SANTA ANA, California – The former owner of a wastewater treatment facility in Orange has been indicted by a grand jury that accused him and his company – Klean Waters, Inc. – in a scheme that discharged untreated industrial wastes into an Orange County sewer system, among other violations of federal environmental laws.
Tim Miller, 64, of Wexford, Pennsylvania, along with Klean Waters, were named in a two-count indictment filed late Wednesday that charges both defendants with participating in a conspiracy and discharging without a permit into a publicly owned treatment works operated by the Orange County Sanitation District (OCSD).
Miller and Klean Waters will be summonsed to appear for arraignments in United States District Court on May 3.
In the scheme dating back to the establishment of Klean Waters in 2012 and continuing for several years, Miller and his company allegedly discharged wastewater that was not pretreated according to federal standards, failed to perform self-monitoring and prepare accurate reports, made false statements about their discharges, tampered with monitoring devices put in place by the OCSD, discharged untreated wastewater without a permit, and prevented inspectors from reviewing company documents or collecting samples from the company’s facility, according to the conspiracy charge in the indictment.
Klean Waters allegedly discharged untreated wastewater that contained pollutants – including firefighting foam and various metals – or that simply never had been tested after being brought to the facility for treatment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the two charges in the indictment, Miller would face a statutory maximum penalty of eight years in federal prison. Klean Waters could be sentenced to pay fines of up to $300,000.
The FBI and the U.S. Environmental Protection Agency’s Criminal Investigation Division are investigating this matter.
Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office is prosecuting this case.
Former Federal Prison Escapee Sentenced to More Than 35 YearsRead the Press Release
A Lubbock man who twice escaped from law enforcement custody has been sentenced to more than 35 years in federal prison for gun and drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Mark Anthony Lucio, 40, pleaded guilty to escaping federal custody, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of a drug trafficking crime. He was sentenced Thursday morning by U.S. District Judge James Wesley Hendrix to 425 months in federal prison.
According to court documents, a Texas DPS trooper who was on patrol in Lubbock initiated a traffic stop of a vehicle on August 25, 2019. The driver, later identified as Lucio, attempted to evade troopers resulting in a high-speed pursuit throughout Lubbock. After traveling through an alley, Lucio and the passenger exited the vehicle and fled on foot.
Law enforcement continued pursuing the Lucio, who jumped a fence into a nearby backyard where he was arrested. Lucio and the passenger were detained in handcuffs and placed into separate vehicles.
Officers then began to search the backyard where Lucio was arrested and located three separate bags of methamphetamine totaling approximately 300 grams. Officers also recovered two loaded handguns from Lucio’s vehicle and on the ground next the vehicle.
When officers returned to their patrol cars, they realized that Lucio had managed to escape custody. Lucio remained a fugitive until November 22, 2019, when he was arrested on state warrants by the Lubbock Police Department.
On December 11, 2019, Lucio was charged by federal indictment for firearm and drug crimes which he later pleaded guilty to in June 2020. While awaiting sentencing, Mr. Lucio was remanded to federal custody at the Bailey County Jail in Muleshoe, Texas.
Juan Anthony Cordero, 25, visited Lucio at the Bailey County Jail on August 28, 2020. During a conversation between the two men, which was recorded by the jail, Lucio discussed the details of a prison escape that was to occur the next day, including the planned time and what vehicle Cordero would be driving.
The following day, Lucio called Cordero minutes before the planned escape and advised him to be on alert. Shortly after, Lucio crawled under a sally port door at the Bailey County Jail and ran into a waiting vehicle driven by Cordero.
Later that day, the Hale County Sheriff’s Office located Cordero’s vehicle in Plainview, Texas. Cordero informed members of the United States Marshals Service that he supplied Lucio with a firearm and dropped him off at an address in Abernathy, Texas.
That same day, law enforcement was able to successfully take Lucio into custody at the Abernathy, Texas residence. The firearm the Cordero provided to Lucio during the escape was also recovered from the scene.
In February 2021, Cordero was sentenced to 14 months in federal prison for assisting Lucio’s escape.
The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Former Chief Executive Officer of Publicly Traded Petrochemical Company Pleads Guilty to Foreign Bribery and Securities Law ViolationsRead the Press Release
A Brazilian national who previously served as a chief executive officer (CEO) of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, pleaded guilty today to conspiring to divert hundreds of millions of dollars from Braskem into a secret slush fund and to pay bribes to government officials, political parties, and others in Brazil to obtain and retain business.
According to court documents, between approximately 2002 and 2014, Jose Carlos Grubisich, 64, a citizen of Brazil — who served as the CEO and a member of the board of directors of Braskem as well as in various capacities for Braskem’s parent company, Odebrecht S.A. (Odebrecht) — engaged in a scheme to bribe Brazilian government officials in violation of the Foreign Corrupt Practices Act (FCPA). As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund, which Grubisich and others had generated through fraudulent contracts and offshore shell companies secretly controlled by Braskem.
Grubisich admitted that while CEO of Braskem, he agreed to pay bribes to Brazilian government officials to ensure Braskem’s retention of a contract for a significant petrochemical project from Petroleo Brasileiro S.A. (Petrobras), Brazil’s state-owned and state-controlled oil company. Grubisich also admitted that, as Braskem’s CEO, he falsified Braskem’s books and records by falsely recording the payments to Braskem’s offshore shell companies as payments for legitimate services. Grubisich also signed false Sarbanes-Oxley certifications submitted to the U.S. Securities and Exchange Commission (SEC) that, among other things, attested that Braskem’s annual reports fairly and accurately represented Braskem’s financial condition, and that Grubisich, as Braskem’s principal officer, had disclosed all fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting.
“As CEO of a publicly traded company, Grubisich and other senior executives at Braskem engaged in a large-scale, sophisticated international bribery and fraud scheme and then lied to U.S. shareholders and authorities to conceal their criminal conduct,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the Department’s commitment to holding individuals accountable for corrupt and fraudulent conduct, including those at the highest corporate echelons.”
“Grubisich abused his position of trust as CEO of Braskem to both facilitate and conceal the payment of millions of dollars in bribes so that Braskem could increase its profits and its senior executives — including Grubisich himself — could personally benefit,” said Acting U.S. Attorney Mark J. Lesko of the Eastern District of New York. “This office is committed to the prosecution of corrupt gatekeepers, including officers and directors of public companies, who, like Grubisich, use the United States’ financial system to commit crimes.”
Grubisich pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the books and records provision of the FCPA and to fail to accurately certify Braskem’s financial reports. Grubisich has also agreed to pay approximately $2.2 million in forfeiture. He is scheduled to be sentenced on Aug. 5, and faces a maximum penalty of 10 years in prison. Any sentence will be determined after considering the U.S. Sentencing Guidelines and other statutory factors.
In December 2016, Braskem and Odebrecht each pleaded guilty in the Eastern District of New York to separate one-count criminal informations charging them with conspiracy to violate the anti-bribery provisions of the FCPA. Braskem settled with the SEC in related proceedings on the same day.
The FBI’s International Corruption squad in New York is investigating the case. The Justice Department’s Office of International Affairs also provided substantial assistance. The department also expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement, Ministério Público Federal and the Departamento de Polícia Federal in Brazil, the Office of the Attorney General in Switzerland, the Swiss Federal Office of Justice, and the governments of Portugal, Andorra, United Kingdom, and Panama.
Assistant Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Julia Nestor and Alixandra Smith of the Eastern District of New York are prosecuting the case, with Assistant U.S. Attorney Laura Mantell of the Eastern District’s Civil Division handling forfeiture matters.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.