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9 April 2021
Man Sentenced for Defrauding Nearly 1,700 Victims in $1 Million Small Business Loan ScamRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 10 years in prison for his role in an internet-based loan scam that defrauded nearly 1,700 owners and prospective owners of small businesses out of $1,076,000, and for fraudulently collecting unemployment benefits during the COVID-19 pandemic.
According to court documents, Ronald A. Smith, 60, and his co-defendant and wife, Terri Beth Miller, 53, set up an internet-based company, Business Development Group, that offered, in exchange for an advance fee, assistance to individuals in preparing applications to obtain loans guaranteed by the Small Business Administration. From August 2012 through February 2018, Smith and Miller solicited potential customers on the basis of false, fraudulent, and misleading statements and representations, including that the company was headquartered at the Trump Building in New York City with additional offices in Las Vegas, that it was affiliated with the SBA, that it had favorable relationships with banks across the nation, and had assisted well-known large companies in obtaining SBA loans. They offered a money-back guarantee, but in fact employed various fraudulent methods to deny refunds.
“Smith’s brazen scheme resulted in over a million dollars in losses and inflicted serious financial and emotional hardship to many of his nearly 1,700 victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who seek to deprive our hardworking community members from receiving crucial financial assistance, you will be held accountable in EDVA and brought to justice.”
“This kind of fraud reaches deep into the community by striking at struggling businesses and people trying to hold onto their livelihoods. It is unconscionable that anyone would attempt to steal from the community using the SBA loan program to line their own pockets,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI is committed to rooting out this kind of fraud. Anyone with information on SBA loan program and other COVID-19 related fraud is asked to submit a tip to the FBI at tips.fbi.gov.”
“Ronald A. Smith submitted a fraudulent unemployment insurance claim with the Virginia Employment Commission, thereby stealing federal pandemic unemployment compensation benefits intended to help unemployed workers,” said Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General. “Today’s sentence demonstrates the Office of Inspector General’s commitment to combating fraud against the unemployment insurance program. We will continue to work with our law enforcement and state workforce agency partners to hold accountable those who seek to exploit unemployment insurance benefit programs to unlawfully enrich themselves.”
“Defrauding small business owners who are trying to launch, expand, or support their businesses is unacceptable,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration, Office of Inspector General’s Eastern Region. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Smith and Miller solicited 1,669 customers, who paid an aggregate sum of about $1,076,000 in advance fees. Most of these customers did not receive an SBA-guaranteed loan.
Smith was prosecuted in the Eastern District of Virginia for nearly the identical advance-fee scam in 2006 and received a seven-year prison sentence.
As part of the current case, Smith also committed fraud in connection with emergency benefits by submitting a fraudulent application with the Virginia Employment Commission for unemployment compensation, including $600 per week in federal pandemic unemployment compensation authorized under the CARES Act. As a result, Smith obtained $9,600 in federal pandemic unemployment compensation to which he was not entitled.
On October 9, 2020, Smith pleaded guilty to wire fraud, engaging in monetary transactions in criminally derived property, and fraud in connection with emergency benefits. Miller pleaded guilty on October 23, 2020 to wire fraud and engaging in monetary transactions in criminally derived property, and she will be sentenced on April 16, 2021.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General; Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA’s Office of Inspector General, Eastern Region, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
The investigation was jointly conducted by the FBI, the U.S. Postal Inspection Service, the Small Business Administration, and the Department of Labor Office of Inspector General.
Assistant U.S. Attorney Alan M. Salsbury 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. 2:20-cr-69.
Man Charged with String of Armed Home Invasion and Gas Station RobberiesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, David M. Hoovler, Orange County District Attorney, and William F. Sweeney Jr., Assistant Director-in-Charge, New York Division, Federal Bureau of Investigation (“FBI”), announced today that TISHAWN C. WOODS has been arrested for his participation in a string of armed home invasion and gas station robberies in and around Newburgh, New York. WOODS was apprehended yesterday in Orange, New Jersey, and will be presented this afternoon before United States Magistrate Judge Andrew E. Krause in White Plains federal court.
U.S. Attorney Audrey Strauss said: “As alleged, Tishawn Woods and an accomplice committed a series of robberies during which they discharged firearms, shooting and seriously wounding one of their victims. We thank the FBI and the Orange County District Attorney’s Office for their efforts to bring Woods to justice and keep the public safe.”
Orange County District Attorney David M. Hoovler said: “It takes the combined cooperative efforts of different law enforcement officials to stop organized violent criminal activity, particularly where it crosses over into different jurisdictions. I am grateful for the cooperation and work of the City of Newburgh Police Department, the Town of Newburgh Police Department, the Town of New Windsor Police Department, and the FBI’s Safe Streets Task Force in this case. I am proud of the work of my office’s investigators and assistant district attorneys in this matter, particularly in obtaining some of the video evidence. Very often digital recordings possessed by private citizens provide crucial evidence in solving violent crimes, which is why in 2016 we created the Video Camera Community Partnership Program. I thank United States Attorney Audrey Strauss for the professionalism, diligence, and courtesy shown by her staff and look forward to working with the United States Attorney’s Office of the Southern District of New York on this and other matters.”
FBI Assistant Director William F. Sweeney Jr. said: “We’ve recently seen an uptick in violent offenses, and today I have a sincere warning for those planning similar violent behavior – think twice. Respect others’ property and belongings. The FBI and our law enforcement partners will track you down and hold you accountable for violent behavior. If you break federal law you will face federal penalties.”
According to the allegations in the Complaint:[1]
In the early morning hours of March 17, 2021, WOODS and an accomplice, armed with handguns, burst inside an apartment in Newburgh, New York, where they robbed and shot the apartment’s occupant, inflicting life-threatening injuries.
In the early morning hours of March 22 and March 28, 2021, WOODS and an accomplice committed armed robberies of gas stations in New Windsor, New York, during which they fired shots near the gas stations’ clerks.
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WOODS, 20, of Newburgh, New York, is charged with three counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison, and three counts of using, carrying, brandishing, and discharging a firearm during, in relation to, and in furtherance of, a crime of violence, each of which carries a mandatory 10-year consecutive sentence.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the outstanding work of the FBI, the Orange County District Attorney’s Office, the Orange County Crime Analysis Center, the City of Newburgh Police Department, the Town of Newburgh Police Department, and the Town of New Windsor Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Louisville Resident Sentenced to 12 Months in Federal Prison for Filing False Income Tax Returns and Committing Medicaid FraudRead the Press Release
LOUISVILLE, KY. – Chief U.S. District Judge Greg Stivers sentenced Hatem Kaisi, age 52, to twelve months and one day imprisonment, followed by three years of supervised release, announced Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky. The defendant previously pled guilty to an indictment that charged him with three counts of filing false federal income tax returns for 2012 through 2014 and one count of healthcare fraud for defrauding the Kentucky Medicaid program.
“Terrific work by Assistant U.S. Attorneys Calhoun and Sullivan as well as the FBI and IRS agents who investigated the case,” said Acting U.S. Attorney Bennett. “Working together with our federal, state, and local law enforcement partners we will continue to identify and aggressively prosecute fraud throughout the 53 counties in the Western District.”
“The defendant failed to report almost $1 million of income on his tax returns,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today’s sentence is an important reminder that there are consequences, including jail time, for intentionally filing false tax returns.”
"By filing false income tax returns and abusing a federally-funded program such as Medicaid, this defendant ultimately defrauded hard-working American taxpayers," said FBI Louisville Special Agent in Charge Robert Brown. "As this sentence is handed down during this year’s tax season, know that this type of exploitation will not be tolerated. The FBI, the IRS, and our other federal, state, and local partners will continue to aggressively pursue those who seek to manipulate the system for their own personal financial gain."
In the plea agreement Kaisi admitted to failing to report $961,592 of income on his 2012 through 2014 federal income tax returns filed with the Internal Revenue Service (IRS). He admitted that he owed additional federal income tax due and owing of $204,842.69 for the tax years 2001 through 2014. Kaisi defrauded the IRS by falsely reporting income earned from his automobile business on the federal income tax returns of others.
In the plea agreement, Kaisi also admitted to concealing his actual income from the Kentucky Cabinet for Health and Family Services, Department for Medicaid Services, which is the Kentucky agency responsible for administering Medicaid. For the years 2008 through 2014, Kaisi concealed over $200,000 of income per year to fraudulently qualify his family for Medicaid benefits. As a result of his actions, Kaisi defrauded the Department for Medicaid Services out of approximately $204,842.69. Kaisi’s family members would not have otherwise qualified for Medicaid benefits but for his intentional concealment of income.
Kaisi also agreed to forfeit $347,095 previously seized by the United States from his bank accounts as result of the charged healthcare fraud. The United States agreed to recommend that $204,842.69 of this be applied to the restitution Kaisi owes to the Kentucky Department for Medicaid Services. Kaisi also agreed to pay full restitution, in the amount of $209,910.80, to the IRS.
The case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Amy Sullivan. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations.
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Louisville Man Sentenced to 300 Months for Drug and Gun ChargesRead the Press Release
COVINGTON, Ky.— Quinn R. Turner, 32, of Louisville, Kentucky, was sentenced to 300 months in federal prison on Friday, by U.S. District Judge David Bunning, after being convicted of conspiracy to distribute 50 grams or more of methamphetamine, possession of 50 grams or more of methamphetamine with intent to distribute, possession of a firearm in furtherance of drug trafficking, and being a felon in possession of a firearm.
Turner was convicted on September 17, 2020 after a three-day jury trial. Evidence at trial showed that Turner led a conspiracy responsible for distributing multiple kilograms of crystal methamphetamine during 2018. He was arrested with a loaded handgun while attempting to sell a pound of methamphetamine in Warsaw, Kentucky on October 3, 2018. Turner has a prior conviction for armed bank robbery and was released from prison less than a year before committing these crimes.
Turner was indicted in December 2018. He was the final member of the conspiracy to be sentenced. Turner’s co-defendants previously pleaded guilty to conspiracy charges and were sentenced in October 2020. Ashley Daugherty received 60 months in prison and Laura West received 42 months in prison.
Under federal law, Turner must serve 85 percent of his prison sentence, and upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; and Director Christopher Conners, Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Kyle Winslow and Tony Bracke.
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Local Landscaping Company Owner Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – The owner of a local landscaping company pleaded guilty today to tax evasion in connection with a scheme to underreport income on his business and personal tax returns.
Kevin Newman, 70, of Auburndale, the owner of Kevin Newman Landscape and Tree Inc., pleaded guilty to one count of tax evasion. U.S. District Court Judge Patti B. Saris scheduled sentencing for Aug. 4, 2021.
For tax years 2015 through 2019, Newman underreported income and inflated expenses on his personal tax returns, and those his company filed, resulting in a tax loss of more than $384,000.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Jury Convicts Coles County Sex Offender for Sexual Exploitation of ChildrenRead the Press Release
PEORIA, Ill. – A federal jury deliberated for approximately two hours before returning its guilty verdicts this afternoon against Jeffrey M. West, 53, of the 1300 block of S. Third St., Mattoon, Ill., for the seven counts charged: two counts of sexual exploitation of minors; two counts of commission of the offense by a registered sex offender; two counts of receiving child pornography; and, one count of possession of child pornography.
Sentencing for West has been scheduled for Sept. 13, 2021, before Senior U.S. District Judge Michael M. Mihm. West faces statutory penalties of 25 to 50 years in prison for sexual exploitation of a minor plus consecutive terms of 10 years in prison for each of the two counts of commission of the offense as a registered sex offender. West has a prior conviction in Coles County for aggravated criminal sexual abuse of a 10-year-old female and a 4-year-old male.
Over two days of testimony this week, the government presented evidence to establish that West was identified when a minor disclosed that West had sexually abused him in 2019. During the subsequent investigation, computer forensic analysis showed that West had collected more than 1000 images and videos of child pornography, including sexually explicit depictions of infants and prepubescent minors, which were found on multiple devices in his home and at his business, West Side Motors, in Mattoon.
In addition, the government’s evidence showed that West used the video-chatting website Omegle to entice and coerce multiple unidentified minor males to engage in sexually explicit conduct which he captured for his collection. According to testimony from an FBI expert, Omegle’s website warns its users about predatory behavior because the website provides anonymity features that are often used by individuals with a sexual interest in children.
West was arrested on May 24, 2019, in Mattoon, Ill., on state charges, but was released on bond. On Sept. 4, 2019, a federal grand jury charged West by indictment and he was arrested on the federal charges. On Sept. 16, 2019, U.S. Magistrate Judge Eric I. Long ordered that West be detained pending trial. He has remained in the custody of the U.S. Marshals Service since his arrest.
The charges are the result of an investigation by the Mattoon Police Department, with assistance from the Federal Bureau of Investigation and the Coles County State’s Attorney’s Office. Assistant U.S. Attorneys Elly Peirson and Keith Hollingshead-Cook represented the government at trial.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Judges sentences St. Louis man on drug and firearms chargesRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Lemartrell Smith to 120 months in prison Friday. The 26-year-old St. Louis, Missouri resident pleaded guilty in December to two counts of being in possession of a controlled substance with intent to distribute, one count of being in possession of a firearm in furtherance of drug trafficking crime and one count being a felon in possession of a firearm.
On or about February 28, 2018, Florissant Police received information Smith was selling drugs in the parking lot of a bowling alley and was armed with a gun. Officers pulled up to Smith’s vehicle to investigate but could not see inside due to the dark window tint. Smith refused to open the car door, so police smashed the window and removed Smith. Officers noticed from the center console, in plain view, a handgun with an extended magazine. Officers also seized 18 grams of fentanyl.
On or about March 13, 2019 St. Louis County Police learned Smith was selling fentanyl. Using an undercover detective, investigators placed a call to Smith and arranged to buy $60 worth of fentanyl. Smith instructed the undercover detective to meet at a specific location. Smith met the undercover detective, reached into a leather satchel and removed 12 capsules. Smith exchanged the capsules for $60 and drove away.
As officers attempted to stop Smith, he ignored all commands to pull over and started to speed away. Smith continued to evade police even after driving over a spike strip. Smith crossed into an opposite lane of traffic at a high rate of speed and crashed into another vehicle. The driver of the other vehicle was seriously injured. Officers arrested Smith. Charges related to the crash remain pending in St. Louis County Circuit Court.
Officers seized a satchel and found a loaded Glock pistol with one round inside the chamber. Officers searched Smith’s vehicle and seized $2,870 in U.S. currency, another pistol, the $60 used by the undercover detective, five cell phones and 10.34 grams of fentanyl.
The St. Louis County Police Department, Florissant Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Paul D'Agrosa is handling the case.
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Ithaca Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Leroy Reed, 52, of Ithaca, New York, made his initial appearance in federal court today on a complaint charging him with receiving child pornography, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Tompkins County Sheriff Derek Osborne.
According to the criminal complaint, Reed, a registered sex offender who was convicted in 2002 of rape and sodomy in the first degree, received multiple child pornography video files over the internet.
The charge against Reed carries a mandatory minimum sentence of 15 years and a maximum of 40 years in prison, a post-release term of supervision of between five years and life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Reed made his initial appearance today before Magistrate Judge Miroslav Lovric and was detained pending further proceedings. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Ithaca Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police Bureau of Criminal Investigation (BCI), with assistance from the Tompkins County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Inland Empire Woman Sentenced to over 3 Years in Prison for Using Stolen Identities to Fraudulently Obtain over $500,000 in COVID ReliefRead the Press Release
LOS ANGELES – A Riverside County woman was sentenced today to 37 months in federal prison for fraudulently obtaining more than $500,000 in COVID-19-related unemployment benefits by using the stolen personal information of dozens of individuals obtained from the dark-net.
Cara Marie Kirk-Connell, 33, of Menifee, was sentenced by United States District Judge André Birotte, Jr. Kirk-Connell pleaded guilty in December 2020 to a single-count information charging her with use of an unauthorized access device.
From May to October 2020, Kirk-Connell used personal information – such as dates of birth and Social Security numbers – that she knew had been stolen and accessed via the dark-net. Kirk-Connell, who also watched YouTube instructional videos on how to commit unemployment insurance fraud, then used the stolen information and identities to apply for unemployment insurance benefits from the California Employment Development Department (EDD).
When Murietta police arrested Kirk-Connell in September 2020 during a traffic stop, she possessed eight EDD debit cards in other people’s names. The day before her arrest, Kirk-Connell used fraudulently obtained EDD debit cards to withdraw more than $1,000 in cash. When federal law enforcement arrested Kirk-Connell the following month, she possessed in her purse four EDD debit cards in victims’ names, four additional debit cards in victims’ names in her car trunk, and approximately $10,000 in cash.
“During the COVID pandemic over the past year, criminals have robbed the state of California of billions [of dollars] by engaging in identity theft to fraudulently obtain unemployment benefits from EDD,” prosecutors wrote in their sentencing memorandum. “[Kirk-Connell] was part of that scourge.”
The California EDD distributes unemployment benefits under the Coronavirus Aid, Relief, and Economic Security Act, passed by Congress in March 2020. The CARES Act expanded unemployment benefits to cover those who were previously ineligible, including business owners, self-employed workers, and independent contractors, who were put out of business or significantly reduced their services because of the COVID-19 pandemic.
This investigation, which is a result of the Department of Justice’s National Unemployment Insurance Fraud Task Force, was conducted by the U.S. Department of Labor – Office of Inspector General, IRS Criminal Investigation, and the United States Postal Inspection Service. California EDD Criminal Investigations and the Murrieta Police Department provided substantial assistance.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 8 was:
Wesley Dean Merrill, 40, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Merrill faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Merrill was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-7.
Joshua Daniel Kaupang, 38, of Great Falls, on charges of receipt of child pornography and access with intent to view child pornography. If convicted of the most serious crime, Kaupang faces five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Kaupang was detained pending further proceedings. The Internet Crimes Against Children Task Force and Montana Division of Criminal Investigation investigated the case. PACER case reference. 20-2.
Pleading not guilty on April 6 was:
Amber Marie Bruse, 39, unknown address, on charges of distribution of meth. If convicted of the most serious crime, Bruse faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Burse was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 20-123.
Pleading not guilty on April 5 was:
Lawrence Howard Kahle, 54, of Billings, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Kahle faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the fraud counts and a consecutive two years in prison, a $250,000 fine and one year of supervised release on the aggravated identity theft counts. Kahle was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 21-19.
Pleading not guilty on March 29 was:
Kyong Cha Roberts, 68, of Billings, on charges of coercion and enticement. If convicted of the most serious crime, Roberts faces a maximum 20 years in prison, a $250,000 fine and five years to life of supervised release. Roberts was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-17.
Pleading not guilty on March 26 was:
Peter Margiotta, 63, of Edmonton, Alberta, Canada, on charges of failure to surrender for service of sentence. If convicted of the most serious crime, Margiotta faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Margiotta was detained pending further proceedings. The Environmental Protection Agency and the Department of Transportation investigated the case. PACER case reference. 21-21.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 6 was:
John Charles Stowers, 57, of Great Falls, on charges of unlawful transfer of National Firearms Act firearms. If convicted of the most serious crime, Stowers faces a maximum 10 years in prison, a $10,000 fine and three years of supervised release. Stowers was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cascade County Sheriff’s Office investigated the case. PACER case reference. 21-14.
David Eugene Wing, 43, of Heart Butte, on charges of assault with a dangerous weapon and possession of a firearm in furtherance of a crime of violence. If convicted of the most serious crime, Wing faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the assault counts and a mandatory minimum 10 years to life in prison, a $250,000 fine and five years of supervised release on the firearms counts. Wing was released pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Fort Belknap Police Department investigated the case. PACER case reference. 21-16.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on April 8 was:
David Vincent Viers, 58, of Silver Star, on charges of possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Viers faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years to life of supervised release. Viers was released pending further proceedings. The Drug Enforcement Administration, the U.S. Postal Service, Homeland Security Investigations, Montana Division of Criminal Investigation and Butte Silver Bow law enforcement investigated the case. PACER case reference. 21-11.
Pleading not guilty on March 30 was:
Steven Douglas Shipe, 52, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Shipe faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Shipe was detained pending further proceedings. The Montana Division of Criminal Investigation, the Drug Enforcement Administration and Butte Silver Bow Law Enforcement Agency investigated the case. PACER case reference. 21-12.
Charles David Clement, 34, of Butte, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Clement faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Clement was detained pending further proceedings. Montana’s Division of Criminal Investigation, the Drug Enforcement Administration and Butte Silver Bow Law Enforcement Agency investigated the case. PACER case reference. 21-12.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hot Springs Man Sentenced to 18 Years in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Robert Arthur Blackstead Jr., age 56, of Hot Springs, Arkansas, was sentenced today to 216 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
In January of 2019, investigators with the 18th Judicial Drug Task Force and agents with Homeland Security Investigations Little Rock launched an investigation into Blackstead’s drug trafficking in the Western District of Arkansas. Over the course of the investigation, investigators and agents were able to conduct several controlled purchases of methamphetamine from Blackstead.
During the arrest of Blackstead, a search of his residence was conducted by investigators and agents. The search resulted in locating three firearms, a distribution amount of methamphetamine and drug paraphernalia.
Blackstead was indicted by a federal grand jury in March of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the 18th Judicial Drug Task Force and Homeland Security Investigations Little Rock. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hot Springs Man Pleads Guilty to Charges in Connection with Obtaining Coronavirus Relief FundsRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that James Heritage, age 38, of Hot Springs, Arkansas, pleaded guilty today to two charges stemming from his attempts to unlawfully obtain COVID-19 relief funds. The first count charged Heritage with making a false statement on a loan application to obtain money through the Small Business Administration’s Paycheck Protection Program (PPP) and the second count is one count of mail fraud, in connection with a scheme to collect Pandemic Unemployment Assistance (PUA), a form of supplemental unemployment insurance, from various state PUA administrators.
According to the plea agreement, Heritage received a PPP loan of approximately $180,000 by representing to the Small Business Administration that he was the owner of a Hot Springs business in need of financial assistance. Law enforcement discovered that the represented business did not exist, and the information in Heritage’s loan application was false. Agents also discovered that Heritage had applied for, and in many cases received, PUA benefits from state administrators in at least 40 different states and the District of Columbia, resulting in Heritage receiving approximately $350,000 in these benefits.
Heritage’s sentencing will be determined by the court at a later date, following the U.S. Probation Office’s completion of a presentence investigation. Based on his guilty plea, the maximum penalty on Count 1 includes imprisonment up to five years and a fine of up to $250,000, and on Count 2 includes up to 30 years imprisonment and a fine of $1,000,000.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The case was investigated by the Department of Labor’s Office of the Inspector General, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Small Business Administration’s Office of the Inspector General. Assistant United States Attorney Hunter Bridges is prosecuting the case for the United States.
Holyoke Man Arrested for Fentanyl ConspiracyRead the Press Release
BOSTON – A Holyoke man believed to be associated with the CJNG (“Cartel Jalisco Nueva Generacion”) drug cartel was arrested yesterday on charges of trafficking in fentanyl.
Josue Rivera Rodriguez, a/k/a “Bori,” 44, was indicted on one count of conspiracy to distribute 400 grams or more of fentanyl; two counts of distribution of 40 grams or more of fentanyl; and one count of distribution of 400 grams or more of fentanyl.
According to court records, agents recorded a meeting where Rodriguez delivered $35,000 to a cooperating witness using a code designed to ensure that the money was delivered to the CJNG cartel. Thereafter, on three occasions in 2020 and 2021, Rodriquez was recorded distributing over 750 grams of fentanyl to the cooperating witness.
At the time of his arrest on April 8, 2021, approximately 300 grams of suspected fentanyl; an AR-15 assault rifle; five semi-automatic pistols, including handguns capable of carrying large-caliber ammunition and fitted with a laser sight; a bullet-proof vest; a police hat with insignia; packaging materials; cellphones; a money counter; and $1,900 cash was seized from his residence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and distribution of 400 grams or more of fentanyl provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Holyoke Police Chief Manny Febbo made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hazleton Man Sentenced to 30 Months’ Imprisonment for StalkingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 8, 2021, Gregory Rossi, age 49, of Hazleton, Pennsylvania, was sentenced to 30 months' imprisonment to be followed by three years of supervised release by U.S. District Court Judge Robert D. Mariani for stalking.
According to Acting U.S. Attorney Bruce D. Brandler, on December 16, 2019, Rossi entered a guilty plea to stalking a victim from August 1, 2018 through August 27, 2019 while a protection from abuse order was in place. Judge Mariani also ordered the forfeiture of dozens of firearms and thousands of rounds of ammunition found in Rossi’s possession at the time of his arrest.
The case was investigated by the Federal Bureau of Investigation, the Hazleton City Police Department and the Sugarloaf Police Department. Assistant United States Attorney Jenny P. Roberts prosecuted the case.
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Grand Jury Indicts Huntington Park Man in Alleged Three-Month Robbery Spree Targeting 15 Trader Joe’s Grocery StoresRead the Press Release
LOS ANGELES – A federal grand jury today named a Huntington Park man in a 21-count indictment that accuses him of robbing 15 Trader Joe’s stores throughout Southern California during a three-month crime spree.
Gregory Johnson, 43, was named in a superseding indictment charging him with 15 counts of interference with commerce by robbery (Hobbs Act), five counts of knowingly using and possessing a firearm in furtherance of a crime of violence, and one count of being a felon in possession of a firearm.
His arraignment on the superseding indictment has not been scheduled. A June 22 trial previously was scheduled in this matter.
Johnson previously was charged via a two-count information on February 8 in connection with the robbery of a Trader Joe’s in Chino Hills on December 4, 2020. Today’s indictment charges him with 19 additional felonies.
According to the indictment, from August 28 to December 4, 2020, Johnson robbed Trader Joe’s stores in Eagle Rock, Sherman Oaks, Chatsworth, Pasadena, Culver City, Rancho Palos Verdes, Agoura Hills, Brea, Santa Ana, Tustin, and Chino Hills, and attempted to rob Trader Joe's stores in Simi Valley and Corona.
During many of the robberies, Johnson allegedly brandished a handgun. On two occasions, Johnson allegedly robbed stores in Rancho Palos Verdes and Brea, and returned weeks later to rob them again.
On December 4, 2020, Johnson and his son, Gregory Eric Johnson, 20, of South Los Angeles, were arrested after law enforcement learned of the Chino Hills Trader Joe’s robbery. A witness gave law enforcement a description of the Johnsons’ getaway car and its license plate, according to court documents.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Gregory Johnson would face a statutory maximum sentence of 20 years in federal prison for each robbery charge, seven years in prison for each firearms use charge, and 10 years’ imprisonment for the felon-in-possession of a firearms charge.
On March 15, Gregory Eric Johnson pleaded guilty to a two-count information charging him with interference with commerce by robbery for robbing Trader Joe’s stores in Chatsworth and Chino Hills in December 2020. His sentencing hearing is scheduled for July 12, at which time he will face a statutory maximum sentence of 40 years in federal prison.
The FBI, the Los Angeles County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section are prosecuting this case.
Gloversville Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Jonathan L. Morgan, age 32, of Gloversville, New York, pled guilty today to distributing and possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Morgan admitted that he distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020. He also admitted to possessing child pornography on two phones.
Morgan faces at least 5 years in prison, and a term of post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, Morgan will be required to register as a sex offender.
The case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed 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 https://www.justice.gov/psc.
Four Members of Militia Group Identifying with “Boogaloo” Movement Charged with Conspiracy to Obstruct Justice by Destroying Records and Destruction of RecordsRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted four members of a militia group associated with the “boogaloo” movement in connection with a scheme to obstruct justice and destroy records to thwart the investigation and proceedings involving the May 29, 2020 shooting of federal Protective Services Officers, announced Acting United States Attorney for the Northern District of California Stephanie M. Hinds and FBI Special Agent in Charge Craig D. Fair. The grand jury returned an indictment alleging that Jessie Alexander Rush, Robert Jesus Blancas, Simon Sage Ybarra, and Kenny Matthew Miksch, all members of a militia group, conspired to destroy communications and other records relating to the May 29, 2020 murder and attempted murder of two federal security officers in Oakland, California. The indictment charges Rush with an additional count of obstruction of official proceedings and Blancas with an additional count of destruction of records in official proceedings.
The indictment, filed March 23, 2021 and unsealed today, alleges that Rush, 29, a resident of Turlock, Calif.; Blancas, 33, a transient resident of the Bay Area; Ybarra, 23, a resident of Los Gatos; and Miksch, 21, a resident of San Lorenzo, were members of the “1st Detachment, 1st California Grizzly Scouts” (Grizzly Scouts), a militia group based in Northern California. Beginning in April 2020, the Grizzly Scouts connected via a Facebook group and periodically met in person for firearms training and other purposes. The Facebook group’s description stated, “they say the west won’t boog,” a reference to the “boogaloo” movement, and that “were [sic] here to gather like minded Californians who can network and establish local goon squads.” As alleged in the indictment, “boogaloo” is a term sometimes used by certain militia extremists to reference a politically motivated civil war or uprising against the government. The “boogaloo” is not a single cohesive group, but rather a loose concept that has become a rallying point for some extremists.
According to the indictment, at times, including on June 1, 2020, and June 2, 2020, members of the Grizzly Scouts, including Rush, Blancas, Ybarra, Miksch, and others, communicated with each other using a WhatsApp group in which discussions repeatedly referenced “boog” and tactics involving the killing of police officers and other law enforcement.
The indictment references the May 29, 2020 shootings at the Ronald V. Dellums Federal Building and United States Courthouse in Oakland, Calif. At about 9:44 p.m. that evening, a passenger inside of a white van opened fire and shot two federal Protective Security Officers (PSOs); one of the PSOs died of his gunshot wounds and the other sustained serious injuries that required surgery.
The indictment also references the June 6, 2020 shootings of deputies of the Santa Cruz County Sheriff’s Office. At about 2:00 p.m. that day, sheriff’s deputies responded to an address in Ben Lomond, Calif., associated with an abandoned white van. According to the indictment, a member of the Grizzly Scouts exchanged messages on the WhatsApp group with other Grizzly Scouts, in which that member allegedly told the group that he was preparing to engage in a shoot-out with law enforcement. The member allegedly asked the other Grizzly Scouts to come to his aid.
The indictment alleges Rush immediately instructed the Grizzly Scout member on the WhatsApp group to delete evidence on his phone. In addition, the indictment alleges that less than an hour after the shooting in Ben Lomond, Blancas deleted files related to the Grizzly Scouts from a Dropbox account. Further, within hours of the shooting, members of the Grizzly Scouts including Rush, Blancas, Ybarra, and Miksch allegedly began to reconnect on an alternative communications application. Moreover, the indictment alleges that the four defendants each deleted records of the WhatsApp group communications from their phones, including the prior discussions regarding violence against law enforcement.
Rush, Blancas, Ybarra, and Miksch are charged with conspiracy to obstruct justice by destroying records, in violation of 18 U.S.C. § 1512(k), and the destruction of records in official proceedings, in violation of 18 U.S.C. § 1512(c)(1). Rush is charged with an additional count of obstruction of official proceedings, in violation of 18 U.S.C. § 1512(c)(2), and Blancas is charged with an additional count of destruction of records in official proceedings, in violation of 18 U.S.C. § 1512(c)(1).
An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants each face a maximum statutory penalty of up to 20 years in prison and a fine of $250,000 for each of the conspiracy, obstruction, and destruction charges. In addition, the court may order additional terms of supervised release. 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.
Ybarra was arrested in the Eastern District of California and made his initial appearance there on April 8, 2021. He will appear for detention proceedings on April 9, 2021. Rush and Miksch appeared in federal court in San Francisco to make their initial appearances on April 9, 2021. Rush and Miksch are currently held in federal custody pending further proceedings and will appear next on April 14, 2021 for detention hearings before U.S. Magistrate Judge Jacqueline Scott Corley. Blancas will make his initial appearance in this matter on April 12, 2021. Federal authorities previously arrested Blancas on other charges and he is currently in federal custody pending further proceedings.
The prosecution is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California with assistance from the National Security Division’s Counterterrorism Section. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Four Individuals Indicted for Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison InmatesRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging four individuals with allegedly participating in a conspiracy to use the personal identifying information of 35 Virginia prison inmates in order to fraudulently obtain over $300,000 in pandemic-related unemployment benefits.
“As alleged in the indictment, the defendants deliberately stole funds intended for members of our community who have faced financial hardship and unemployment during the COVID-19 pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work with our law enforcement partners to safeguard these critical taxpayer-funded resources and hold accountable those who unlawfully line their pockets at the expense of the American people.”
According to the indictment, Mary Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35, of Norfolk, allegedly worked with two inmates at Virginia correctional institutions to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Benton allegedly submitted successful applications for Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities. Cartwright-Powers allegedly submitted successful applications for four inmates at one correctional facility.
“Fraudulently exploiting COVID-19 relief funds for personal gain is unconscionable,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “Today’s indictment sends a clear message that DHS OIG will fully investigate fraud affecting FEMA funds and continue to work with our law enforcement partners to bring an end to these schemes.”
“Investigating fraud involving the Unemployment Insurance Program is an important part of the mission of the U.S. Department of Labor - Office of Inspector General, particularly during a time when our nation is providing billions of dollars in unemployment benefits to American workers in need of assistance due to the continuing economic effects of the ongoing COVID-19 pandemic,” said Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to vigorously investigate unemployment insurance fraud.”
According to the indictment, co-conspirator Michael Lee Lewis, Jr., 41, of Chesapeake, allegedly provided information for inmates at the Augusta Correctional Center, where he was incarcerated. Michael Anthony White, 38, of Chesapeake, allegedly provided information for inmates at the Lawrenceville Correctional Center, where he was incarcerated. The four individuals charged in this indictment, along with the prisoners whose information was used for the unemployment applications, allegedly shared the proceeds of their crimes, which amounted to approximately $334,667. Although the conspirators initially and allegedly obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.
During the pandemic, both the federal government and the Virginia Employment Commission expanded unemployment benefits both by increasing the monetary amount, and by making benefits accessible for the self-employed, contractors, and gig workers, who have not historically qualified for unemployment. However, inmates remained ineligible for such benefits, and each application that Benton and Cartwright-Powers submitted allegedly contained numerous false statements that made the application successful, such as the inmates’ contact information and last employer, and that they were ready and willing to work.
Benton is charged with one count of conspiracy, three counts of fraud in connection with major disaster benefits, and three counts of mail fraud. Lewis and White are each charged with one count of conspiracy and two counts of mail fraud. Cartwright-Powers is charged with one count of conspiracy, one count of fraud in connection with major disaster benefits, and one count of mail fraud. If convicted, the conspirators face a maximum of five years in prison on the conspiracy count and thirty years in prison on each fraud count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.
Assistant U.S. Attorney Rebecca Gantt is prosecuting 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. 2:21-cr-33.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Former charter school official sent to prison for embezzling fundsRead the Press Release
HOUSTON – The former superintendent of Houston Gateway Academy has been ordered to federal prison after taking more than a ¼ million dollars, announced Acting U.S. Attorney Jennifer B. Lowery.
Richard Garza, 61, Houston, pleaded guilty Sept. 20, 2019.
Today, U.S. District Judge Ewing Werlein Jr. sentenced him to serve 60 months in prison to be immediately followed by three years of supervised release. He was further ordered to pay a $20,000 fine and restitution in the amount of $191,292 to the Texas Education Agency (TEA). At the hearing, the court noted Garza led a double life and had a desire for taking money from others which got him into trouble and led him to his situation today.
Houston Gateway Academy is a charter school located in the Gulfgate area of Houston. While superintendent, Garza awarded a contract to a company whose owner then sent funds back to Garza.
As part of his plea, Garza admitted he awarded a $280,000 no-bid contract to Ahmed Bokaiyan. Bokaiyan was an IT employee at the school who also owned a business called Hot Rod Systems. Bokaiyan, through his company, was to provide IT equipment and services to a new school not yet constructed.
An audit revealed Garza paid three checks totaling approximately $252,757 to Hot Rod Systems before it completed any work. Shortly after Bokaiyan received the payments, he sent approximately $164,381 via wire transfer to Garza’s personal bank account. Garza then used some of the funds to purchase a New Nissan Armada SUV and a condominium located on Gentryside Drive in Houston.
Garza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Bokaiyan, 58, Houston, had also pleaded guilty for his role in the scheme and was ordered to pay $156,595 in restitution.
The Department of Education-Office of Inspector General conducted the investigation with the assistance of the TEA. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
Former Dracut Nurse Sentenced for Tampering with Liquid MorphineRead the Press Release
BOSTON – A former nurse was sentenced in federal court in Boston today for diverting liquid morphine intended for hospice patients at a Lowell nursing home.
Michael Langlois, 50, of Dracut, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 42 months in prison and three years of supervised release. In May 2019, Langlois pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by deception and subterfuge.
“The idea of taking desperately needed medication from a patient facing the last days and hours of life is horrifying and obviously violates legal and ethical duties,” said Acting United States Attorney Nathaniel R. Mendell. “The defendant abandoned his profession and abused his position of trust to exploit patients in their final moments. The public can trust that my office will prosecute people who do this.”
“Health care professionals who steal needed medications from patients put patients at increased risk of harm and disrupt the legal drug supply chain,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations, New York Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
“As a registered nurse, Langlois was entrusted with the care of sick and fragile patients. He brazenly and dangerously violated that trust at the expense of his patients by stealing morphine intended to comfort them during their most vulnerable moments,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s sentencing should serve as a strong reminder that we will spare no resources to bring to justice those who put patients in danger by tampering with drugs.”
On Nov. 16, 2016, Langlois, then a registered nurse, tampered with bottles of liquid morphine that doctors had prescribed for two elderly hospice patients under his care at a Lowell nursing home. In each instance, Langlois took the liquid morphine, a schedule II narcotic used to treat pain, for his own use and then replaced it with saline or Benadryl in an attempt to cover up his crime. As a result of his conduct, the patients in Langlois’s care received a less potent dose of the painkiller than they had been prescribed.
On or about April 3, 2017, Mr. Langlois diverted for his own use liquid morphine from a bottle prescribed to an elderly hospice patient under his care at a Melrose nursing home. To conceal his wrongful conduct, Mr. Langlois falsely represented in the medical file of one of his patients, and in the nursing home’s Medication Administration Record, that the liquid morphine for that patient was pure, when that was not in fact the case.
Acting U.S. Attorney Mendell, FDA-OIC SAC Ebersole, HHS-OIG SAC Coyne and Monica Bharel, M.D., M.P.H., Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistance was provided by the Massachusetts Department of Public Health. Assistant U.S. Attorney Patrick Callahan of Mendell’s Healthcare Fraud Unit prosecuted the case.
Five men convicted in alien harboring conspiracyRead the Press Release
McALLEN, Texas – With the guilty plea of a 42-old Donna man, five individuals have now admitted to their roles in a conspiracy to harbor illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Abel Cavazos pleaded guilty today, while Jesus Valdez, 21, Jonathan Romero, 19, and Darrell Palomares, 21, all of Donna, and Mexican national Rodrigo Acevedo, 21, admitted to their roles in the conspiracy earlier this year.
The investigation led authorities to a barn in Donna believed to be used to harbor illegal aliens. On Dec. 3, 2020, they arrived at the location and saw multiple individuals fleeing from the scene. Law enforcement was eventually able to apprehend Cavazos, Valdez, Romero, Palomares and Acevedo as well as 12 others determined to be illegally present in the United States.
Some claimed they had been physically assaulted and forced to call family members to demand payment for their release.
At their respective pleas, Cavazos, Valdez, Romero, Palomares and Acevedo admitted they knew the aliens had no legal status to remain in the United States, but still willfully joined in the harboring conspiracy.
U.S. District Judge Micaela Alvarez has set sentencing for April 15 for Valdez and Romero. Palomares and Acevedo will be sentenced April 22, while Cavazos is set for July 21. At their respective hearings, each faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Valdez, Romero, Palomares and Cavazos were permitted to remain on bond pending those hearings, while Acevedo is currently in custody.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol, Texas Department of Public Safety and Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Jongwoo Chung is prosecuting the case.
Final sentence completes prosecution of vandals who trespassed on restricted Kings Bay naval installationRead the Press Release
BRUNSWICK, GA: The final sentence of seven defendants in the April 2018 illegal entry and vandalism of Submarine Base Kings Bay draws to a close three years of investigation and criminal prosecution.
Mark Peter Colville, 59, of New Haven, Conn., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 21 months in federal prison and ordered to pay $33,503.51 in restitution, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Colville, along with six other defendants, was found guilty after a four-day jury trial in October 2019 on charges of Conspiracy, Destruction of Property on a Naval Installation, Depredation of Government Property, and Trespass. Colville was ordered to serve three years of supervised release after completion of his prison sentence.
“Mark Colville’s sentence brings closure to a prosecution that represents the triumph of the rule of law over misguided principles,” said Acting U.S. Attorney Estes. “Colville and his attention-seeking cohorts attempted to make a grand statement by breaking into and vandalizing a secure government facility, but in the end succeeded only in adding felony convictions to their criminal records.”
As admitted by the defendants during their trial, Colville was among seven co-conspirators who cut a padlock from the gate of an outer security fence at the naval installation in St. Marys, Ga., late in the evening April 4, 2018. Once through the security fence, the trespassers split into two groups and then damaged and vandalized property inside the facility before being taken into custody by naval security personnel.
Colville has a long history of arrests, including eight criminal convictions related to trespassing and damaging government property.
The six other defendants in the case previously were sentenced for their participation in the illegal activities, including Stephen Michael Kelly, 72, of Massachusetts; Patrick O’Neill, 65, of Garner, N.C.; Elizabeth McAlister, 81, of New London, Conn.; Clare Therese Grady, 62, of Ithaca, N.Y.; Martha Hennessy, 65, of Perkinsville, Vt.; and Carmen Trotta, 58, of New York, N.Y.
The case was prosecuted for the United States by Assistant U.S. Attorneys Karl Knoche, E. Greg Gilluly Jr. and Channell Singh, with assistance from Litigation Technologist Dean Athanasopoulos. The investigation was conducted by the Naval Criminal Investigative Service.
Federal Grand Jury A Indictments Announced- April (Final Results)Read the Press Release
Acting United States Attorney Clint Johnson today announced the final results of the April 2021 Federal Grand Jury A. The announcement for the partial Results of the April 2021 Federal Grand Jury A can be found here.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Clarance Rozell Goode Jr. Conspiracy to Commit First Degree Murder in Indian Country (Count 1); First Degree Murder in Indian Country (Counts 2, 4, 6); Causing Death by Using and Discharging a Firearm (Counts 3, 5, 7). Goode Jr., 44, has been charged with conspiring with two others to murder Tara Burchett-Thompson, her daughter Kayla, and Mitch Thompson in August 2005. The murders occurred in Owasso. The FBI is the lead investigative agency in cooperation with the Owasso Police Department, who was the primary investigating department at the time of the crime.
Joseph Keegan Haas. Assault with a Dangerous Weapon in Indian Country; Carrying, Using, and Brandishing a Firearm during and in Relation to a Crime of Violence; Assault by Striking, Beating, and Wounding in Indian Country (Misdemeanor); Burglary First Degree in Indian Country; Kidnapping in Indian Country. On Feb 18, 2021, Haas, 29, allegedly assaulted a female with a deadly weapon by pointing a firearm at her while she was in bed. He further struck, beat and wounded the victim. On March 6, 2021, he broke into the victim’s residence in Pryor and held her against her will. The FBI and Mayes County Sheriff’s Office are the investigative agencies.
Justin Tvmvmapky Harjo. First Degree Felony Murder in Indian Country. Harjo, 24, of Tulsa, allegedly caused the unlawful killings of Dion Carr and Chauncey Thomas during a burglary on May 23, 2019. Thomas was allegedly involved in the robbery and Carr was the homeowner’s boyfriend. The FBI and Tulsa Police Department are the investigative agencies.
Billy Shane Hemphill. Involuntary Manslaughter in Indian Country. Hemphill, 48, in custody in Rogers County, is charged with killing a female while driving a vehicle recklessly and while impaired on Aug. 11, 2019. The victim was riding in the vehicle at the time of the accident. The FBI and Oklahoma Highway Patrol are the investigative agencies. The Foyil Fire Department also initially responded to the accident.
Mark Lee Holt Jr. Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact of a Child in Indian Country. Holt Jr., 29, of Bartlesville, is charged with sexually abusing a minor between 12 and 16 years old from February 2020 to July 2020. He is further charged with abusive sexual contact of a second minor between 12 and 16 years old. The FBI and Bartlesville Police Department are the investigative agencies.
Diamanta Hera Johnson. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Johnson, 43, of Tulsa, is charged with assaulting another female with a knife. She allegedly used the knife as a deadly weapon with the intent to do bodily harm on May 14, 2017. The FBI and Tulsa Police Department are the investigative agencies.
Christopher Johnson. Child Abuse in Indian Country; Possession of a Firearm and Ammunition by Felon and Addict; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, and Brandishing a Firearm During a Crime of Violence. Johnson, 33, of Tulsa, is charged with the abuse of two children under the age of 18. From Feb. 1, 2020, through Feb. 19, 2021. He is further charged with possessing a firearm and ammunition by a felon and addict. From Feb. 1, 2020, to Feb. 19, 2021, Johnson allegedly assaulted the two minors with a dangerous weapon with intent to do bodily harm. Johnson is alleged to have carried and brandished a firearm during his crimes. The FBI and Tulsa Police Department are the investigative agencies.
Dameon Lamar Leathers. First Degree Murder in Indian Country. Leathers, 39, of Tulsa, is charged with shooting and killing Howard Eugene Thompson on April 6, 2018. The FBI and Tulsa Police Department are the investigative agencies.
Justin Dale Little. First Degree Murder in Indian Country. Little, 27, in Okla DOC facility, allegedly shot and killed Jonathan Weatherford on April 22, 2018, in Jenks. The FBI and Jenks Police Department are the investigative agencies.
Jessica Levon McBride. Second Degree Murder in Indian Country; Arson in Indian Country; Corruptly Attempting to Alter, Destroy, Mutilate, and Conceal an Object to Impair its Use in an Official Proceeding; Attempt to Commit Arson in Indian Country. McBride, 28, of Tulsa, is charged with killing Tracy Elaine Russell on March 17, 2019. She is further charged with setting Russell’s home on fire in an attempt to conceal evidence and the victim’s remains. McBride again attempted to set Russell’s home on fire later on March 20, 2019. The victim had allowed the defendant and her boyfriend to stay with her in exchange for the couple paying for groceries with food stamp funds issued to them. The FBI and Tulsa Police Department are the investigative agencies.
Ryan Daniel McNAbb. Possession of Child Pornography. McNabb, 24, of Cleveland, is charged with knowingly possessing and accessing with intent to view child pornography. The images involved at least one prepubescent minor and a child who had not attained 12 years of age. McNabb was employed at the time of his arrest with the Oklahoma Department of Corrections as a Probation and Parole Officer. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Oklahoma State Bureau of Investigation, and Broken Arrow and Cleveland Police Departments are the investigative agencies.
Edwin Morris. Felon in Possession of Firearm and Ammunition. Morris, 53, of Tulsa, is charged with being a felon in possession of seven firearms and 10 rounds of ammunition. Firearms are a Military Armament Corp .45 auto caliber machine gun, Kel Tec 9 mm Luger caliber rifle, a HS Produkt .40 caliber pistol, a Smith & Wesson 9 mm caliber pistol, a Glock 17 9x19 caliber pistol, a Glock 43 9mm pistol and a High Standard Derringer .22 magnum caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Harvey Dale Murphy. First Degree Murder in Indian Country. Murphy, 39, of Hulbert, is charged with killing Kimmy Stipes by repeatedly striking her with a hammer on Oct. 31, 2019. The FBI, Oklahoma State Bureau of Investigation and Mayes County Sheriff’s Office are the investigative agencies.
Keldon Keith Summers, Annaleigh Shanell Greene. Sexual Abuse of a Child in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; Child Abuse in Indian Country; Enabling Child Abuse in Indian Country. Summers, 27, of Chelsea, is charged with sexually abusing a child under 12 years of age on Nov. 8, 2020. He is further charged with assaulting the child, causing serious bodily injury, and with child abuse. Finally, Greene, 24, of Vinita, is charged with enabling and permitting the abuse of the child. The FBI and Vinita Police Department are the investigative agencies.
Stephon Thompson. First Degree Murder in Indian Country. Causing Death by Using and Discharging a Firearm. Thompson, 37, of Tulsa, is charged with shooting and killing Lionell Rivers on Oct. 15, 2020. The FBI and Tulsa Police Department are the investigative agencies.
Cheri Turney. Possession of Methamphetamine with Intent to Distribute; Maintaining a Drug-Involved Premises. Turney, 50, of Tulsa, is charged with knowingly possessing with intent to distribute 50 grams or more of methamphetamine. She is further charged with maintaining a place for distributing and using methamphetamine, heroin and marijuana. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Edward John Van Woudenberg. First Degree Murder in Indian Country. Van Woudenberg, 65, in Okla. DOC facility, is charged with killing Robert Benjamin Sampson with a knife sometime between March 1 and March 14, 2013. The FBI and Tulsa Police Department are the investigative agencies.
Travis Wilson. Attempted Kidnapping in Indian Country; Assault with Intent to Commit Murder in Indian Country; Assault with Intent to Commit a Felony in Indian Country; Cyber Stalking; First Degree Burglary in Indian Country. Wilson, 49, in custody in Rogers County, allegedly attempted to kidnap a former intimate partner on Dec. 6, 2018. Fortunately, a Catoosa police officer heard the victims screams and intervened. Wilson is also charged with cyber stalking the victim between Oct. 1, 2018, and Dec. 6, 2018, using email, telephone, voicemail, and GPS tracking, causing substantial emotional distress to the victim. The FBI and Catoosa and Tulsa Police Departments are the investigative agencies.
Erie Man Sentenced to 24 years in Prison for Child Exploitation OffensesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 24 years in jail, to be followed by ten years supervised release and ordered to make restitution in the amount of $12,000 on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Shawn Everett Daly, 41.
According to information presented to the court, Daly distributed and received computer images and videos depicting prepubescent minors engaging in sexually explicit conduct. An examination of Daly’s digital devices and cloud storage accounts revealed the presence of thousands of movies and images depicting young children being sexually abused. Daly has a prior conviction in Pennsylvania for the indecent assault of two minor females.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Daly.
Dutch National Affiliated with “Bugaloo Bois” Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ABINGDON, Va.- Jaap Willem Lijbers, a Dutch national and member of the Bugaloo Bois, pleaded guilty yesterday to illegally possessing a firearm while being unlawfully present in the United States. Acting United States Attorney Daniel P. Bubar and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division announced the arrest today.
Lijbers, 27, pleaded guilty yesterday to one count of possessing a firearm while being unlawfully present in the United States. Lijbers was living in the United States on an I-94 Visa that expired on May 20, 2014. A review of immigration records showed that Lijbers never applied for adjustment or readmission.
According to court documents, Lijbers, who was residing in Raven, Va., frequently coordinated and communicated online with members of the Bugaloo Bois, a loosely connected group of individuals espousing violent anti-government sentiments. During some of these interactions, court documents allege that Lijbers encouraged other members of the Bugaloo Bois group to attend political rallies and commit acts of violence, to include taking over government buildings. Lijbers also encouraged others to participate in violent conduct against law enforcement officers in a “pig roast.”
The investigation of the case was conducted by the Federal Bureau of Investigation and the Department of Homeland Security (DHS) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
Disgraced soccer team owner sentenced to additional prison time for massive federal and state tax fraudRead the Press Release
Seattle – A former Seattle college soccer star, currently serving a nearly 15-year prison sentence for sexual assault in Arizona and on a second sexual assault case in King County, Washington, was sentenced today in U.S. District Court in Seattle to an additional year and a day in prison for making false statements on a tax return, announced Acting U.S. Attorney Tessa M. Gorman. During a massive tax fraud scheme, 49-year-old Dion L. Earl purchased the Seattle Impact FC franchise, a professional indoor soccer club. According to the plea agreement, between 2008 and 2014, EARL used false documents to lie about his income, the amount of tax dollars withheld by employers, and his mortgage deductions so that he could attempt to claim tax refunds of more than $1.6 million. At today’s sentencing hearing, U.S. District Judge Robert S. Lasnik noted Earl would pay a price by missing critical years with his children, with no way to recapture them. “You’re either there or you’re not,” the judge said.
“This defendant lived a lie in most parts of his life—including his financial life,” said Acting U.S. Attorney Gorman. “His scheme of phony documents stole more than a million U.S. tax dollars, and another $600,000 from the state of Arizona. It is appropriate that he serves substantial prison time—nearly 15 years—for the sexual assaults, with the additional year of prison time for the tax fraud.”
In the 1990’s, EARL was a soccer star at Seattle Pacific University. Between 2008 and 2014, EARL also worked in car sales in Washington State and Arizona and owned Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures, and the Seattle Impact, FC. Earl used his association with car dealers, Dion Earl’s Total Soccer & Tennis Camps, and the Seattle Impact to commit tax fraud.
With his guilty plea in January 2021, Earl specifically acknowledged that, on his 2012 Form 1040 tax return, he claimed that (1) he made $1,600,000 working for eight different car dealers, which withheld more than $660,000 of his wages for taxes, and (2) his wife was employed by Dion Earl’s Total Soccer & Tennis Camps, which paid her $240,000 and withheld $51,000 in taxes, and (3) he made $520,000 in mortgage interest payments on four different properties. All these claims were false. During 2012, Earl made less than $45,000, from which he did not have any taxes withheld, and he paid limited mortgage interest. Due to the false claims, Earl obtained a federal tax refund of $414,160.
Even after the IRS began a civil audit of his taxes in 2013, Earl continued to make false claims and provide false information to the IRS. For example, Earl admitted that, as late as 2015, he falsely claimed he and his wife made $765,000 from Dion Earl’s Total Soccer & Tennis Camps, LLC, and the Seattle Impact FC, from which the businesses withheld $180,000 in taxes. In making these false claims, Earl sought a tax refund of $137,554. That refund was not paid.
“Tax fraud cheats all honest American taxpayers who are paying their fair share and deprives our communities of crucial resources,” said Acting Special Agent in Charge Steven Slazinik of IRS Criminal Investigation (IRS-CI). “Today, Mr. Earl was held accountable for his illicit personal gain at the expense of his friends, neighbors, and community. IRS-CI will continue to protect the integrity of our tax system and in doing so, safeguard the well-being of our communities.”
In total, Earl sought $1.6 million in fraudulent tax refunds and was paid $1,093,534 by the IRS. Earl will owe restitution to the U.S. in that amount, as well as more than $600,000 in restitution to the State of Arizona, as a result of fraudulent tax returns he filed with that state. Earl also agreed to pay Key Bank approximately $100,000 in restitution for submitting false information in 2008 for a home equity line of credit.
Through tears, Earl told the Court, “I disappointed Seattle and disappointed my family… I just miss my kids.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorney Arlen Storm.
Defendant Pleads Guilty for Killing a Man and Injuring Another in a DUI CollisionRead the Press Release
A Tulsa man who drove intoxicated and caused a collision that killed one man and seriously injured another pleaded guilty today in federal court, announced Acting U.S. Attorney Clint Johnson.
Redex Lester Jr., 54, pleaded guilty to murder in the second degree in Indian Country and to assault resulting in serious bodily injury in Indian Country.
In the early evening of May 25, 2020, Lester Jr. drove intoxicated, exceeded the speed limit, and struck another vehicle head on. Wayne Thomas, a passenger in the other vehicle, died of his injuries three days following the crash. Another man suffered extensive, serious bodily injuries. At the time of the collision, Lester Jr. was driving on a suspended license and had a blood alcohol level of .239.
Previously, the defendant had been convicted by the state of DUI in 1992, 1994, 2005, and, again, in February 2020. For his February 2020 DUI conviction, Lester Jr. was sentenced to six months, suspended. The May 25, 2020, DUI collision and death occurred less than four months later while Lester was still on state supervision.
“Redex Lester Jr. chose time and again to drive intoxicated. Because of his reckless behavior, he killed a man and seriously injured another,” said Acting U.S. Attorney Clint Johnson. “Thanks to the work of Assistant U.S. Attorneys Chantelle Dial and Christopher Nassar, the defendant has been held accountable for this tragic loss of life.”
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Chantelle D. Dial and Christopher J. Nassar are prosecuting the case. Ms. Dial is a prosecutor from the U.S. Attorney’s Office in the Western District of Washington. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations. Ms. Dial recently extended six more months to assist with the mission.
Denver Man Charged with Felony Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that JUSTIN EUGENE JAMESON, a/k/a Justin Brown, 38, of Denver, Colorado was indicted by a federal grand jury on March 25, 2021, for felony possession of a firearm. The Indictment alleges that on or about February 15, 2021, in Johnson County, Wyoming, Jameson who is a prior convicted felon, knowingly possessed firearms and brought them across state lines.
He appeared before United States Chief Magistrate Judge Kelly H. Rankin on April 6, 2021, and pled not guilty to the charges in the Indictment. A jury trial has been set for May 24, 2021, in Cheyenne before Federal District Court Judge Alan B. Johnson. The maximum penalty upon conviction is 10 years in prison, a $250,000 fine, $100 special assessment, and 3 years of supervised release.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Wyoming Division of Criminal Investigation, Johnson County Sheriff’s Office, and Johnson County Attorney’s Office. Assistant United States Attorney Timothy Gist is prosecuting the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, download the memo.
The charge against Jameson is merely an accusation, and he is presumed innocent until proven guilty.
Convicted Felon Sentenced to Federal Prison for Gun PossessionRead the Press Release
Memphis, TN – James Howard, 43 has been sentenced to federal prison for 92 months for possession of a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on July 21, 2019, Memphis Police officers responded to an Aggravated Assault/Domestic Violence call in the 3700 block of Weaver Road. Upon arrival, the victim A.W. advised that her boyfriend, Howard, was intoxicated and acting irrationally. She reported they were in an argument, when Howard "racked" a shotgun and stated he was "going to plant her." Howard left the residence, the victim's sister, S.H. removed her from the residence.
As the victim and her sister were driving, Howard called the victim from the house phone and threatened to kill her and himself. Realizing that Howard had again broken into her home, the victim and her sister drove to a nearby fire station to call law enforcement. After repeated attempts to enter the home, the officers finally gained access and removed Howard, who was taken into custody without further incident. While searching the home officers recovered a Remington Arms 16-gauge shotgun under a dresser.
Howard is a convicted felon having previously been convicted of felony drug trafficking offenses, Aggravated Assault, Domestic Violence, and Battery Upon a Peace Officer. As a result of his felony convictions, Howard is prohibited by federal law from possessing firearms or ammunition.
On November 3, 2020, Howard pled guilty to possessing the weapon.
On April 7, 2021, U.S. District Court Judge Sheryl H. Lipman sentenced Howard to 92 months in federal prison to be followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods (PSN) Task Force. Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney Raney Irwin and Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Convicted Felon Sentenced to over 10 Years in Prison for Firearm and Drug Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – Lascelles Ford, Jr., of Lake City, was sentenced on Tuesday to over 10 years in federal prison after pleading guilty on January 5, 2021, to possessing controlled substances with the intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm and ammunition as a convicted felon. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentence.
“The Gainesville Gun Violence Initiative continues to get results,” said Acting U.S. Attorney Coody. “This defendant, who brazenly sold drugs in the light of day and carried a loaded weapon, was brought to justice through the collaborative work of our GVI partners. His sentence ensures that his community will be safer and sends a message that there are real and severe consequences for drug trafficking and firearm offenses in the Gainesville area.”
On April 1, 2020, investigators from the Alachua Police Department (APD) set up a narcotics surveillance detail in a residential neighborhood after receiving repeated complaints about drug dealing activity. During their surveillance that day, they observed Ford repeatedly engage in hand-to-hand drug transactions in broad daylight. At one point, the investigators observed Ford actually load a piece of crack cocaine into a pipe for one of his customers to smoke. As the surveillance continued, investigators observed Ford reach into a bag he was carrying and manipulate the slide of a semi-automatic pistol.
APD investigators were familiar with Ford and his criminal history as a convicted felon, so they decided to move in for an arrest. As the officers approached Ford, he fled on foot, while still carrying the bag containing the firearm. Ford fled into a nearby house, where he discarded the bag before being called back outside by law enforcement. Officers obtained a search warrant for the residence, which led to the discovery of Ford’s bag containing a stolen Glock .40 caliber pistol with an extended magazine and 9 live rounds of ammunition. The bag also contained crack cocaine and powder cocaine. A search of Ford’s person led to discovery of another live round of .40 caliber ammunition.
After Ford’s arrest, his case was adopted for federal prosecution by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as part of the Gainesville Gun Violence Initiative. The Gainesville GVI was established in April 2019, by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the U.S. Marshals Service, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
“Reducing violent crime and protecting the public in the communities that we serve is a priority for the ATF”, said ATF Special Agent in Charge Craig W. Saier. “We will continue to work vigorously with our law enforcement partners to make sure those individuals who commit violent firearms crimes are prosecuted to the fullest extent of the law.”
Ford, 28, will serve concurrent sentences of just over 5 years each for the charges of possession with intent to distribute (crack cocaine and cocaine) and possession of a firearm by a convicted felon. Those prison terms will be followed by a consecutive 5 year sentence for possession of a firearm in furtherance of a drug trafficking crime, for a total prison term of 10 years and 3 months. The Court also ordered 5 years of supervised release following Ford’s prison term. Ford has one prior felony conviction and a history of domestic violence and firearm-related charges.
This sentencing resulted from the collaborative work of the APD and ATF. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. FordConnecticut Residents Charged with Conspiring to Commit Alien SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Rene Lima-Rivera, age 47, and Jose Portillo-Lopez, age 70, of Norwalk, Connecticut, were arrested on April 4 for conspiring to commit alien smuggling.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector. At a bail hearing yesterday, United States Magistrate Judge Gary L. Favro ordered Lima-Rivera detained and Portillo-Lopez released pending further proceedings.
According to the criminal complaint, on the night of April 3, U.S. Border Patrol agents observed a suspicious van travelling back and forth along State Route 11 in Chateaugay, New York. Border Patrol agents from the Burke Border Patrol Station stopped the vehicle and determined that four of the passengers were Vietnamese citizens who had illegally crossed into the United States. Portillo-Lopez told agents that Lima-Rivera had hired him to pick up these passengers.
The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty. The four citizens of Vietnam were expelled back to Canada.
The charges filed against Lima-Rivera and Portillo-Lopez carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by United States Border Patrol and is being prosecuted by Assistant U.S. Attorney Shira Hoffman.
Claremore Man Pleads Guilty to Illegally Possessing Firearms and Possession of Child PornographyRead the Press Release
A Claremore man who possessed thousands of images and videos of child pornography pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Clint Johnson.
Jeffrey Rahn Reetz, 66, pleaded guilty to being a felon in possession of firearms and ammunition and to possession of child pornography. U.S District Judge Gregory K. Frizzell set sentencing for Aug. 2, 2021.
“Jeffrey Reetz collected 9,000 images and videos of the abuse and rape of children and was a felon illegally in possession of nine firearms who attempted to flee the country to escape prosecution,” said Acting U.S. Attorney Clint Johnson. “Individuals like Reetz are the reason we seek to unmask and hold accountable those who download and share child pornography. I appreciate the efforts of the officers and agents of Homeland Security Investigations, the Tulsa Police Department’s Cyber Crimes Unit, and the Oklahoma Department of Corrections who were all instrumental in exposing and arresting this predator.”
Reetz stated in a written plea agreement that between March 2019, and January 23, 2020, he knowingly possessed three rifles, two shotguns, four handguns, and 1,421 rounds of ammunition. Reetz further admitted that between January 2017 and January 23, 2020, he knowingly possessed and accessed with intent to view more than 1,000 graphic image files and video files of child pornography. One image obtained and viewed by the defendant included a close up image of an adult male raping a toddler vaginally. Another image possessed by the defendant depicted a female toddler with a white pacifier in her mouth being raped anally by an adult male. These were only two of the more than 9,000 images and videos possessed by Reetz.
On Jan. 23, 2020, agents and officers executed a federal search and seizure warrant at Reetz’s residence and located the firearms. Reetz was subsequently taken into custody at the Tulsa International Airport while he was trying to flee the country to Cuba to avoid arrest and prosecution.
U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the Tulsa Police Department and Oklahoma Department of Corrections conducted the investigation. Assistant U.S. Attorneys Matilda M. Villalobos, Vani Singhal, and Edward Snow are prosecuting the case.
Camden County Woman Admits Role in Fraudulent Delivery SchemeRead the Press Release
TRENTON, N.J. – A Camden County, New Jersey, woman today admitted receiving hundreds of thousands of dollars of consumer electronics before reselling the stolen goods in connection with a delivery fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Yanira Medina-Roman, 36, of West Berlin, New Jersey, pleaded guilty by videoconference before U.S. Senior District Judge Anne E. Thompson to an information charging her with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From July 2018 through October 2018, Medina-Roman and others carried out a delivery fraud scheme targeting a corporate victim and government agency that resulted in the theft of more than $250,000 of consumer electronics. Medina-Roman and her conspirators used Medina-Roman’s residence – then in Highlands, New Jersey – as the delivery address for the stolen goods. Medina-Roman, under the direction of her conspirators, sold the goods for profit either to a fence of stolen goods, or to third parties through a national classified advertisement website, while retaining for herself a portion of the sale proceeds.
A related cyberattack involved the appropriation without authorization of the identity of an employee of a government agency, which Medina-Roman’s conspirators used by manipulating the employee’s government email address to place orders for consumer electronics and gift cards with a corporate victim located in Maryland. The Maryland corporate victim, believing the emails were authentic and sent by the government employee, with whom the corporate victim had a prior business relationship, was deceived into delivering the consumer electronics to Medina-Roman’s residential address.
The conspiracy charge to which Medina-Roman pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. Sentencing is scheduled for Aug. 10, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the U.S. Secret Service, under the direction of Special Agent In Charge Mark McKevitt; special agents of the Defense Criminal Investigative Service – Cyber Field Office, under the direction of Special Agent in Charge Kenneth A. DeChellis; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia; and officers of the Highlands, New Jersey, Police Department, under the direction of Chief Robert Burton, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Office’s Criminal Division in Trenton.
California Man Convicted with Federal Hate Crime for Attempting to Stab Black ManRead the Press Release
A federal jury convicted a California man today of a federal hate crime for attacking a Black man with a knife on a street in Santa Cruz.
Ole Hougen, 44, of Santa Cruz, was convicted of willfully attempting to cause bodily injury by using a dangerous weapon because of a person’s actual or perceived race and color.
According to evidence presented at trial, Hougen confronted a 29-year-old Black man who was crossing a street in Santa Cruz. Hougen took out a nine-inch knife and swiped multiple times at the man’s head, chest, and stomach, while yelling racial slurs at him. At the time of the attack, Hougen was on probation after pleading no contest to state charges that he committed a racially motivated assault on a different Black man in 2018.
“The Justice Department will continue to vigorously prosecute bias-motivated crimes like this one in an effort to secure justice for victims of these crimes and the communities they are meant to target and intimidate,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division.
“Strict enforcement of laws prohibiting the targeting of vulnerable groups is essential to the proper functioning of our democratic society,” said Acting U.S. Attorney Stephanie Hinds for the Northern District of California. “This office is one of the four U.S. Attorney’s offices throughout the country chosen by the Attorney General to work with other Justice Department components to review our structure of anti-hate law enforcement and make recommendations to improve the system. This is just another indication that this office is committed to ensuring the thoughtful deployment of resources to address hate crimes and unlawful discrimination.”
“The FBI worked closely with the Santa Cruz Police Department to bring justice for this shocking, horrific attack,” said Special Agent in Charge Craig Fair of the FBI San Francisco Field Office. “The FBI will use all authority granted to us by federal law to investigate hate crimes meant to threaten and intimidate an entire community. Acts of hate and racism have no place here and will not be tolerated. I urge members of our community to report any hate incidents to local or federal law enforcement so we can bring offenders to justice.”
Hougen is scheduled to be sentenced on July 26 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Marissa Harris and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI San Francisco Field Office conducted the investigation with the assistance of the Santa Cruz Police Department.
The verdict comes on the heels of a decision by U.S. Attorney General Merrick Garland to conduct a 30-day review of the department’s enforcement efforts to address hate-based violence and discrimination. The working group was assembled to make recommendations for improving hate crime and unlawful discrimination investigations and prosecutions. Additional information regarding the Attorney General’s working group can be obtained here.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation, please visit: https://civilrights.justice.gov/ to file a report.
California Man Convicted of Hate CrimeRead the Press Release
SAN JOSE – A federal jury convicted a California man today for a federal hate crime for attacking a Black man with a knife on a street in Santa Cruz.
Ole Hougen, 44, was convicted of willfully attempting to cause bodily injury by using a dangerous weapon because of a person’s actual or perceived race and color.
According to evidence presented at trial, Hougen confronted a 29-year-old Black man who was crossing a street in Santa Cruz. Hougen took out a nine-inch knife and swiped multiple times at the man’s head, chest, and stomach, while yelling racial slurs at him. At the time of the attack, Hougen was on probation after pleading no contest to state charges that he committed a racially motivated assault on a different Black man in 2018.
Hougen is scheduled to be sentenced on July 26 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The verdict comes on the heels of a decision by the U.S. Attorney General to conduct a 30-day review of the Department’s enforcement efforts to address hate-based violence and discrimination. The working group was assembled to make recommendations for improving hate crime and unlawful discrimination investigations and prosecutions. Additional information regarding the Attorney General’s working group can be obtained here.
“Strict enforcement of laws prohibiting the targeting of vulnerable groups is essential to the proper functioning of our democratic society,” said Acting U.S. Attorney Hinds. “This Office is one of the four U.S. Attorney’s Offices throughout the country chosen by the Attorney General to work with other Department of Justice components to review our structure of anti-hate law enforcement and make recommendations to improve the system. This is just another indication that this Office is committed to ensuring the thoughtful deployment of resources to address hate crimes and unlawful discrimination.”
“The Justice Department will continue to vigorously prosecute bias-motivated crimes like this one in an effort to secure justice for victims of these crimes and the communities they are meant to target and intimidate,” said Principal Deputy Assistant Attorney General Pamela S. Karlan.
“The FBI worked closely with the Santa Cruz Police Department to bring justice for this shocking, horrific attack,” said FBI Special Agent in Charge Craig Fair. “The FBI will use all authority granted to us by federal law to investigate hate crimes meant to threaten and intimidate an entire community. Acts of hate and racism have no place here and will not be tolerated. I urge members of our community to report any hate incidents to local or federal law enforcement so we can bring offenders to justice.”
Assistant U.S. Attorney Marissa Harris and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI conducted the investigation with the assistance of the Santa Cruz Police Department.
Bronx Man Charged with Offering a Bribe to a Government OfficialRead the Press Release
SYRACUSE, NEW YORK – Muhammad Z. Aabdin, 30, of New York City, has been charged by complaint with offering a bribe to a public official, Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Christopher F. Algieri, Veterans Affairs Office of Inspector General, Northeast Field Office.
The complaint filed against Aabdin alleges that in September 2020, he offered a bribe to a contracting officer with the Veterans Administration (“VA”) in Syracuse. Specifically, Aabdin allegedly offered to share profits with the VA contracting officer in exchange for her awarding VA contracts to him for personal protective equipment (“PPE”).
Aabdin was arraigned today in a hearing held by videoconference before United States Magistrate Judge Miroslav Lovric and was released pending further proceedings.
The charge filed against Aabdin carries a maximum sentence of 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by VA Office of Inspector General, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Boston-Area Real Estate Developer Charged with Tax EvasionRead the Press Release
BOSTON – A Tewksbury real estate developer was charged yesterday with defrauding the government of more than $480,000 by engaging in a multi-year tax evasion scheme.
Arnold Martel, 61, was charged and has agreed to plead guilty to one count of tax evasion. A plea hearing has not yet been scheduled.
According to the charging documents, for tax years 2014 through 2017, Martel personally received more than $1.2 million in payments for upgrades to condominiums his company sold. Martel deposited the payments into his personal accounts or cashed them, but did not report this income on this tax returns.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Martel is also required to pay restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Berks County Man Pleads Guilty to Trafficking Methamphetamine and Heroin in Luzerne, Lackawanna, and Schuylkill CountiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Terron, age 38, formerly of Reading, Pennsylvania, pled guilty yesterday before U.S. District Court Judge Robert D. Mariani, to conspiracy to distribute more than 500 grams of methamphetamine and heroin.
According to Acting United States Attorney Bruce D. Brandler, Terron admitted to participating in a conspiracy to distribute between 1.5 kilograms and 5 kilograms of crystal methamphetamine, and between 1 kilogram and 3 kilograms of heroin, in Luzerne, Lackawanna and Schuylkill Counties between January 2017 and December 2018. Terron was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Northeastern Pennsylvania.
Judge Mariani ordered that a presentence report be completed. Sentencing will be scheduled at a later date.
Previously, Amanda Boyle, age 37, of Sweet Valley, Luzerne County, was sentenced by Judge Mariani to nine years in prison for her role in this drug trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum penalty of ten years in prison under federal law. The maximum penalty for the charge is up to life in prison, a term of supervised release following imprisonment, and a $10,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bay City Man Sentenced to 12 Years in Prison for Possessing and Accessing with Intent to View Child Pornography Involving Prepubescent Minors or Minors Under the Age of 12Read the Press Release
A 28-year-old resident of Bay City, Michigan, Brandon Scott Parsons, was sentenced today to 12 years in prison for possessing and accessing with intent to view child pornography involving prepubescent minors or minors under the age of 12, Acting United States Attorney Saima Mohsin announced today.
Mohsin was joined in the announcement by Special Agent in Charge Vance Callender of Homeland Security Investigations (HSI), Detroit.
United States District Judge Thomas L. Ludington also imposed five years of supervised release on Brandon Scott Parsons, who pleaded guilty on December 23, 2020.
“This sentence should serve as a warning for those who target and prey on children,” said Acting US Attorney Mohsin. “The aggressive investigation and prosecution of child predators remains among the highest priorities for our office.”
According to court documents, on July 16, 2019, Parsons distributed eight images containing child pornography on social media platforms. A search warrant conducted on March 23, 2020, revealed an additional five images containing child pornography on an SD card in Parsons’s cellphone. The images involved minors under the age of 12 or prepubescent, and bondage and bestiality scenes. Parsons had been previously convicted on February 17, 2015, of felony possession of child sexually abusive material and felony use of computers to commit a crime, in the 18th Judicial Circuit Court in Bay County.
The case was investigated by HSI. The case was prosecuted by Assistant United States Attorney Anca Pop.
Baltimore Businessman Pleads Guilty to Transportation of an Individual to Engage in ProstitutionRead the Press Release
Baltimore, Maryland – Charles “Chuck” Nabit, age 64, of Baltimore, Maryland, pleaded guilty today to transportation of an individual to engage in prostitution. Nabit, who owns residences and resides in Bethany Beach, Delaware and Deerfield Beach, Florida, is the owner of Westport Group, LLC. and previously owned Mountain Manor Treatment Center, a comprehensive drug treatment center.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Lisa Myers of the Howard County Police Department.
“Charles Nabit used his wealth, his business and his position in society to facilitate his pattern of commercial sex, including with women suffering from narcotics addiction,” said Acting U.S. Attorney Jonathan Lenzner. “Rather than use his resources to assist these victims, Nabit paid thousands of dollars to engage them in commercial sex acts. This guilty plea should remind others like Mr. Nabit that no one is above the law, no matter their wealth or stature.”
According to his guilty plea, beginning in 2017 until his arrest on June 10, 2020, Nabit regularly paid for commercial sex. The seven women whom Nabit admitted he paid for commercial sex (Victim 1 through Victim 7), either regularly used narcotics or suffered from serious substance abuse disorders during the time periods in which Nabit engaged in commercial sex with them.
Nabit admitted that from August 2018 to May 2020, he paid at least $90,000, as well as an unknown amount of cash, to women with whom he had commercial sex. This includes 52 Cash App transactions to an individual whom he knew to be someone other than the woman he was seeing for commercial sex. For example, on April 11, 2019, Nabit received a message from the Cash App account associated with an adult male named De’Angelo Johnson requesting $140 for “coming thru on a good girl and a hot girl.” The victim, Victim 1, had requested that Nabit pay her directly, sending a message to Nabit’s CashApp account, but Nabit refused to pay her and sent $145 payment to the Cash App account associated with Johnson with a message indicating the payment was “for (the first name of Victim 1).”
As detailed in his plea agreement, Nabit regularly transported victims to and from his Baltimore office for commercial sex, either in his vehicle or by using a rideshare car service. In separate encounters with Victim 1, Victim 3, and Victim 5, Nabit also recorded their sex acts with a Go Pro camera despite their objections to being filmed. Nabit was aware of Victim 5’s substance abuse as she discussed her struggles with addiction and depression. Nabit knew that, more than likely, some of the money provided to Victim 5 was being used to fund her drug use.
According to the plea agreement, beginning no later than February 2019, Nabit began seeing Victim 6 for commercial sex and travel dates. She discussed her addiction struggles with Nabit on several occasions. During their sexual encounters, Nabit provided Victim 6 with monetary payment and cocaine. For example, Nabit paid $5,000 to Victim 6 for her to accompany him to Fort Lauderdale, Florida and engage in commercial sex. During that trip, Nabit also provided Victim 6 with cocaine. Nabit also traveled with Victim 6 to a hotel in Richmond, Virginia on at least three separate occasions to engage in commercial sex. Victim 6 was paid at least $1,000 in cash for one of these trips. Hotel records revealed multiple overnight stays by Nabit between August 2019 and March 2020.
Until her death in May 2019, Nabit admitted that he also regularly engaged in commercial sex with Victim 7. Victim 7 repeatedly discussed her drug addiction in text messages and expressed her desire to obtain treatment for her substance abuse with Nabit. Specifically, on August 13, 2018, Victim 7 told Nabit she completed an application for Mountain Manor Treatment Center and Nabit replied, “As you recall, I used to own MM and my ex-partner still does.” Nabit and Victim 7’s mother spoke on several occasions about Victim 7’s drug use. For example, on August 18, 2018, Nabit texted Victim 7’s mother about Victim 7 going to drug rehabilitation. Nabit stated that Victim 7 began using opiates again but that “she seemed to handle crack ok for weeks.” On May 23, 2019, Victim 7’s mother informed Nabit that Victim 7 had overdosed on drugs and died.
On December 9, 2019, Nabit and his attorney met with investigators for an interview in relation to a sex trafficking investigation involving alleged sex trafficker De’Angelo Johnson and Victims, 1, 2, 3, and 4. During this interview Nabit was asked whether he was aware that the sex trafficking victims were drug users. He was shown pictures of four victims and claimed to have only been aware of one victim’s drug use. He also claimed he had never seen signs of drug use in the remaining victims, as he had owned a drug treatment facility for 10 years and he would have recognized signs of drug use.
On June 10, 2020, Nabit was arrested and law enforcement executed federal search warrants for his person, his electronics, his Baltimore office, and his vehicle. Law enforcement recovered numerous sex toys and filming equipment, including five Go Pro cameras, from Nabit’s office. Nabit’s office also had a large sectional sofa that converted to a bed which had a sheet on it. A forensic analysis of Nabit’s cell phone and Go Pro cameras recovered numerous messages related to commercial sex as well as images and videos of victims engaging in commercial sex with Nabit.
Nabit faces a maximum of 10 years in prison for transportation of an individual to engage in prostitution. U.S. District Judge George L. Russell, III has scheduled sentencing for June 24, 2021 at 9:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and Daniel A. Loveland, Jr., who are prosecuting the case.
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Austin Man Sentenced to Federal Prison for Possessing Thousands of Images of Child PornographyRead the Press Release
In Austin today, a federal judge sentenced 47-year-old Fernando Solis to 151 months in federal prison for possessing thousands of images of child pornography, said U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Solis pay $36,000 in restitution to a dozen known child victims and be placed on supervised release for 10 years after completing his prison term.
On August 25, 2020, Solis pleaded guilty to one count of possession of child pornography. By pleading guilty, Solis admitted that from 2013 through 2018, he visited internet sites and used various chat applications to obtain child pornography, including live sex shows involving underage minors in the Philippines. Furthermore, the defendant actively paid for access to child pornography by wiring money over 50 times to the Philippines in amounts ranging from $25 to $100. A dozen victims submitted Victim Impact Statements to Judge Yeakel in support of their requests for restitution and justice.
“The sentence imposed reflects our office’s continued commitment in working with our law enforcement partners to identify, investigate and prosecute those who prey upon society’s most vulnerable victims—children,” said U.S. Attorney Hoff. “The victims’ voices have been heard and some measure of justice for their harm was served today.”
In November 2018, FBI agents executed a search warrant at Solis’s residence in Austin. During the search, agents seized the defendant’s laptop, iPad and related computer media. A forensics examination revealed that Solis received and made available for distribution more than 1,800 images or videos of child pornography.
According to court records, on May 25, 1995, Solis was convicted of Attempted Sexual Battery of a Victim Under 12 Years of Age in Florida and sentenced to six years imprisonment.
"Every day, children around the world and in our community endure sexual exploitation to satisfy the endless and depraved demand for child sexual abuse material," said FBI Special Agent in Charge Combs. "The FBI's Child Exploitation Task Force will relentlessly pursue every lead to rescue children who are being victimized and bring their perpetrators to justice. We would encourage members of the public to help us protect children who are the most vulnerable in our community."
The FBI investigated and Assistant U.S. Attorney Karthik Srinivasan prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Atlantic County, New Jersey, Man Sentenced to 210 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 210 months in prison for his role in distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Carlos Santiago-Gomez, 31, of Absecon, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to one count of distributing images of child pornography. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 27, 2018, law enforcement officers from the FBI’s Atlantic City Child Exploitation Task Force executed a search warrant at Santiago-Gomez’s residence in Absecon, New Jersey, and seized multiple items of digital evidence, including cell phones, CDs, thumb drives, hard drives and computers, which contained thousands of images of child sexual abuse. Agents also located evidence showing that in July and August 2017, Santiago-Gomez posted videos of child sexual abuse on at least two KIK instant message groups, while also acting as the administrator of one of those groups.
In addition to the prison term, Judge Kugler sentenced Santiago-Gomez to 10 years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and N.J. Human Services Police, under the direction of Director Timothy J. Gallagher, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Acting U.S. Attorney Urges Participation in National DEA Drug Take Back DayRead the Press Release
Charleston, South Carolina --- With the Drug Enforcement Agency (DEA) 20th National Prescription Drug Take Back Day set for Saturday, April 24, Acting United States Attorney M. Rhett DeHart is urging the public to participate in the semi-annual event and remove opioids and other medicines from homes where they could be stolen or abused by family members and visitors.
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisoning and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. Additionally, according to new numbers from the CDC, opioid overdose deaths have increased during the pandemic.
“Because expired, unused, and unwanted medicines that languish in home cabinets are highly susceptible to abuse and misuse, the public is encouraged to participate in the spring DEA Drug Take Back Day,” said Acting U.S. Attorney DeHart. “Taking advantage of the safe, convenient, and anonymous means of disposing of prescription drugs can not only protect you but also your family and friends.”
On Saturday, April 24 from 10:00 AM to 2:00 PM at more than 50 locations across South Carolina, the DEA and its partners will collect tablets, capsules, patches, and solid forms of medication. Vaping devices and cartridges will also be accepted, so long as the lithium batteries are removed. Liquids including intravenous solutions and syringes, as well as illegal drugs, will not be accepted. All collection sites will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement.
For more information about the event and to find a collection site, visit DEATakeBack.com or call 1-800-882-9539.
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8 individuals sentenced to prison for laundering $44M in drug proceeds to Mexico through local cell phone store frontsRead the Press Release
COLUMBUS, Ohio – The final of eight defendants in a $44 million money-laundering case was sentenced today in U.S. District Court. Sentences imposed range from five years to 18 years in prison.
Chief U.S. District Judge Algenon L. Marbley sentenced Rodrigo Esqueda-Vazquez, 34, today to 180 months in prison.
Defendant Name
Sentence received
Date of Sentencing
Jose Luis Rosales-Ocampo
144 months
10/23/2020
Thania Rosales-Guadarrama
84 months
10/23/2020
Josue Gama-Perez
72 months
10/23/2020
Dulce Rosales-Guadarrama
87 months
12/4/2020
Eliezar Mendoza-Nava
216 months
3/19/2021
Rodrigo Esqueda-Vazquez
180 months
4/9/2021
Julio Angel Gonzalez
120 months
10/23/2020
Rodolfo Franco-Valdez
60 months
11/20/2020
Local and federal law enforcement, working in conjunction, spent years investigating large-scale narcotics traffickers in an effort that ultimately brought down the money-laundering ring.
According to court documents, beginning around 2013 and continuing until September 2019, the defendants conspired to distribute heroin, fentanyl and marijuana and commit large-scale money laundering.
The schemes relied on the use of small businesses that held themselves out as cell phone stores. The stores sold few, if any, cell phones, and they conducted little, if any, legitimate business otherwise. Rather, the stores were merely front businesses for drug traffickers to send large amounts of money related to their drug trafficking from Columbus to Mexico.
Jose Luis Rosales-Ocampo, 57, of Columbus, and his family members ran the so-called cell phone stores: Los Rosales on Shady Lane Road, Los Rosales 2 on East Main Street and Express Cellular on Eastland Square Drive.
The storefronts principally served as a place for individuals to wire illicit drug proceeds to Mexico. Thousands of illicit wire transfers were completed per year. Drug dealers from multiple narcotics-trafficking cells would drop large amounts of narcotics money at the stores, after which the store owners would falsify money sender names, addresses and phone numbers on the wire transfers to Mexico in order to conceal the nature of the proceeds.
In total, the joint state–federal efforts led to the prosecution of eight defendants federally and 35 defendants by the Franklin County Prosecutor’s Office. The investigation and prosecution of these defendants removed approximately 34 kilograms of heroin, 516 grams of cocaine, 76 grams of fentanyl and 250 pounds of marijuana from Central Ohio streets. Additionally, investigators seized $458,500 in U.S. currency and a home valued at nearly $248,000 as part of the investigation and prosecution of these cases.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Cincinnati Field Office; Keith Martin, Special Agent in Charge, DEA Detroit Division; Franklin County Prosecutor Gary Tyack; Acting Columbus Police Chief Michael Woods and officials with the Ohio HIDTA (High Intensity Drug Trafficking Area) and Ohio Attorney General Dave Yost’s Ohio Organized Crime Commission announced the sentences.
Assistant United States Attorneys S. Courter Shimeall and Jessica W. Knight represented the United States in this case. Daniel J. Stanley, formerly with the office of Franklin County Prosecutor Gary Tyack, also represented the United States in this case as a Special Assistant United States Attorney.
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7th member of MS-13 criminal enterprise indicted for murderRead the Press Release
HOUSTON – Another member of the violent international street gang Mara Salvatrucha (MS-13) is set to appear in federal court for his alleged role in a 2018 murder, announced Acting U.S. Attorney Jennifer B. Lowery.
Carlos Elias Henriquez-Torres, 20, an El Salvadorian national who illegally resided in Houston, was previously in state custody on related charges. He is set to appear at 2 p.m. today before U.S. Magistrate Judge Andrew Edison on the charges in the superseding indictment returned March 31.
Previously indicted were Wilson Jose Venture-Mejia, 24, Jimmy Villalobos-Gomez, 24, Angel Miguel Aguilar-Ochoa, 35, Walter Antonio Chicas-Garcia, 24, and Marlon Miranda-Moran, 21, all El Salvadorian nationals. Villalobos-Gomez is a legal permanent resident but the remaining men unlawfully resided in Houston. The charges against all of them remain pending.
Also named in the indictment is Franklin Trejo-Chavarria, 23. He is currently in custody in El Salvador.
The indictment alleges they committed a 2018 murder in furtherance of the MS-13 enterprise. The victim was allegedly beaten to death with machetes in order for the defendants to further their positions in the enterprise.
All are charged with conspiracy and murder in aid of racketeering.
If convicted, they face a potential death sentence.
The FBI, Homeland Security Investigations and Houston Police Department conducted the investigation. Assistant U.S. Attorneys Britni Cooper and John Michael Lewis are prosecuting the case along with Trial Attorneys Julie A. Finocchiaro, Gerald Collins and Matthew Hoff from the Department of Justice’s Organized Crime and Gang Section
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
3 Inland Empire Women Arrested on Charges of Illegally Obtaining COVID-Related Unemployment Benefits in Names of Prison InmatesRead the Press Release
RIVERSIDE, California – Federal authorities this week arrested three Inland Empire residents on fraud charges alleging they used information belonging to California state prison inmates to file for pandemic-related unemployment benefits, with each causing at least $345,000 in losses.
The three defendants are charged in separate criminal complaints, and each woman faces two counts – fraud in connection with emergency benefits and wire fraud.
With the three cases announced today, prosecutors in the Central District of California have now charged a dozen defendants with fraudulently obtaining enhanced unemployment benefits implemented during the pandemic. The defendants arrested this week are the latest of approximately 150 defendants who have been charged across the United States in what the Justice Department calls an unprecedented explosion of unemployment insurance (UI) fraud over the past year. The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress and signed into law in March 2020 provided additional UI benefits to qualified individuals and helped provide unemployment insurance benefits during the COVID-19 pandemic to people who did not otherwise qualify, including business owners, self-employed workers, independent contractors, and those with a limited work history.
This week’s arrests are the result of investigations conducted by the Department of Labor – Office of Inspector General, the FBI, and the United States Postal Inspection Service. Investigators with the California Employment Development Department (EDD), which administers the UI program in California, provided substantial assistance.
Sequoia Edwards, 35, of Moreno Valley, was arrested this morning after being charged with filing at least 27 fraudulent UI claims over two months last summer, at least six of which used personally identifiable information (PII) belonging to California prison inmates that she allegedly received from her incarcerated cousin. As a result, the EDD issued at least $455,000 in benefits intended to help individuals who were out of work due to the COVID-19 pandemic, which did not apply to prison inmates. During the execution of a search warrant at Edwards’ residence in February, the FBI recovered several debit cards issued by the EDD and $45,000 in cash, according to the affidavit in support of her criminal complaint. Edwards is expected to make her initial appearance this afternoon in United States District Court in Riverside.
Mireya Ramos, 42, of Colton, was arrested Thursday for allegedly filing at least 37 fraudulent UI claims, most of which were submitted in the names of inmates in the California prison system and many of which falsely stated the applicants were barbers who could not work due to the pandemic. The affidavit in support of her criminal complaint states that Ramos obtained the inmates’ PII from her long-time boyfriend, who is currently serving a life sentence in Calipatria State Prison. As a result of the fraudulent claims, the EDD, from June 2020 through January 2021, issued at least $353,532 in unemployment benefits. During a court appearance Thursday afternoon, Ramos was released on a $10,000 bond, and an arraignment was scheduled for May 4.
Paris Thomas, 33, of San Bernardino, was arrested Wednesday for allegedly filing approximately 49 fraudulent UI applications, at least 15 of which were filed in the names of people incarcerated in state prisons, a federal prison and county jails. “The 49 fraudulent UI claims mentioned above caused EDD to disburse over $440,000 in UI benefits from June 2020 to December 2020,” according to the affidavit in support of Thomas’ criminal complaint. During a search of Thomas’ residence in February, the FBI seized EDD cards and a notebook filled with PII for more than 40 people, the affidavit notes. When she appeared in court on Wednesday, a United States magistrate judge released Thomas on a $10,000 bond and ordered her to appear for an arraignment on May 11.
Discussing the fraudulent UI claims filed on behalf of state prisoners, the affidavits for all three defendants state “Due to their custody status, the inmates listed as named claimants were not…eligible to apply [for] UI benefits because they were not: (1) unemployed through no fault of their own; (2) able and available for work; and/or (3) actively seeking work.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charge of fraud in connection with emergency benefits carries a statutory maximum sentence of 30 years in federal prison, and wire fraud carries a maximum possible penalty of 20 years in prison.
Assistant United States Attorneys Byron R. Tuyay and Julius J. Nam of the Riverside Branch Office are prosecuting these cases.
21 Arrested on Federal Drug Trafficking Charges Filed in AustinRead the Press Release
Federal authorities arrested 21 individuals yesterday on federal drug trafficking charges, announced U.S. Attorney Ashley C. Hoff, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Two separate federal grand jury indictments charge those arrested as well as 14 other individuals who were already in custody prior to yesterday(*).
Indictment #1 – U.S. v. Beck, et al.
Karl Beck, age 42 of Austin; Victor Penaloza-Calderon (aka Alberto Espino-Bustos), a 36-year-old Mexican National residing in Houston; Craig Neely, age 45 of Austin; *Bobby Hale, age 34 of Giddings; Michael Peterson, age 38 of Killeen; Elias Loza Jr, age 43 of Austin; Reginald Thomas, age 51 of Kyle; *Stephanie Shires, age 44 of Georgetown; *Stephen Penberg, age 37 of Austin; *Clinton Johnson, age 37 of Austin; *Shawn Malmquist, age 30 of Cedar Park; Amy Rogers, age 39 of Austin; *Cody Richards, age 30 of Liberty Hill; *Anthony Lones II, age 36 of Cedar Park; Victoria Manning, age 33 of Austin; Laurel Yurchick, age 46 of Shreveport, Louisiana; *Richard Zamora, age 44 of Austin; *Adrianne Spence, age 35 of Austin; *Joshua Cherry, age 29 of Austin; Joshua Bailey, age 43 of Austin; Leonard Cantrell, age 34 of Elgin; *Jeffrey Sparks, age 38 of Manor; Daylin Lopez-Iglesias, age 31 of Pasadena; Hallie Shaw, age 36 of Austin; Rita Islas, a 39-year-old Mexican National residing in Nacogdoches; Madison Mitchell, age 19 of Austin; and, *Hilda Gutierrez-Benitez, age 37 of Austin.
The above defendants were indicted by a federal grand jury in Austin and are charged with one count of conspiracy to possess with intent to distribute kilogram quantities of methamphetamine in Texas and elsewhere from August 2019 to March 2021. Beck, Penaloza-Calderon, Neely, Hale, Peterson, Loza and Thomas face between 10 years to life in federal prison upon conviction of the drug charge based on the amount of methamphetamine involved. The remaining defendants face between five to 40 years in federal prison upon conviction of the drug charge based on the amount of methamphetamine involved. In addition, Beck, Penaloza-Calderon, Neely, Hale, Zamora, Islas and Mitchell are also charged with one count of money laundering. They face up to 20 years in federal prison upon conviction of the money laundering charge.
Prior to yesterday, authorities seized 65 kilograms of methamphetamine and more than $49,000 and other assets attributable to this drug trafficking organization. Yesterday, authorities seized approximately seven kilograms of methamphetamine, one kilogram of cocaine, a dozen firearms and $20,000 attributable to this organization.
The DEA, FBI, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO) in Austin, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office and the Austin Police Department conducted this investigation. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. named Operation Glass Joe. Assistant U.S. Attorney Daniel D. Guess is prosecuting this case.
Indictment #2 – U.S. v. Riggs, et al.
Monty Lane Riggs, age 66 of San Saba; Suni Wynn Rogers, age 39 of Richland Springs; *Dude Edward Beabout, age 63 of Kempner; Joseph Martinez Mafnas, age 28 of Florence; *Ashley Jo Wiggins, age 33 of Killeen; Shawnwilliam Songao Santos, age 48 of Florence; Marylee Manfas Santos, age 48 of Florence; and, Vincent Lee Presto, age 48 of Harker Heights.
Another indictment was handed down by a federal grand jury sitting in Austin, which charged the above defendants with one count of conspiracy to possess with intent to distribute methamphetamine. The indictment alleges that the defendants conspired since April 2019 to distribute methamphetamine in the central Texas area.
Prior to yesterday, seizures by law enforcement attributed to this drug trafficking organization included approximately 18 kilograms of methamphetamine and 25 firearms. During yesterday’s arrests, authorities seized an additional two firearms.
All the defendants face between 10 years and life in federal prison upon conviction.
The DEA, Austin Police Department, Georgetown Police Department, Cedar Park Police Department, Bastrop County Sheriff’s Office, Bell County Sheriff’s Office, Burnet County Sheriff’s Office, Llano County Sheriff’s Office and the District Attorney Offices from the 33rd and 424th Judicial Districts conducted this OCDETF investigation called Operation Island Time. Assistant U.S. Attorney Mark Marshall is prosecuting this case.
“These arrests conclude a comprehensive investigation by the DEA and our partners into the criminal activities of a dangerous poly drug trafficking organization,” said DEA Special Agent in Charge Comeaux. “With these arrests, key command and control elements of this criminal organization’s leadership have been apprehended and removed from the communities they sought to prey upon.”
“The drugs trafficked by the defendants destroy families, neighborhoods and communities,” said FBI Special Agent in Charge Combs. “The FBI is committed to working with our local, state and federal partners to keep this poison off the streets and holding those who profit from selling it accountable.”
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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20 Months in Prison for Memphis Area Man Offering KickbacksRead the Press Release
LITTLE ROCK-United States District Judge Brian S. Miller sentenced Bradley Fly, 36, of Germantown, Tenn., to 20 months in federal prison for violating the Anti-Kickback Statute. In July 2019, Fly pleaded guilty to offering two TRICARE beneficiaries money in exchange for signing up to receive expensive compounded drugs.
At sentencing, the United States introduced evidence that Fly bribed two people: his longtime friend (then a Marine reservist), plus an Army National Guardsman, whom Fly solicited while seated courtside at a Memphis Grizzlies game. Fly then facilitated prescriptions for both men and their wives, for which TRICARE paid over $500,000, earning himself over $180,000 in commission.
Judge Miller heard testimony from the Marine reservist and from a Special Agent with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that the prescriptions were part of a larger network of prescription generation, including recruiters whom Fly paid for TRICARE beneficiary information and a group of doctors whom Fly used to sign prescriptions without consulting patients.
“There is no room for kickbacks in the healthcare marketplace,” said Acting United States Attorney Jonathan D. Ross. “Serious penalties and prison await those, like Mr. Fly, who fail to abide by the law. This office and its partners at the FBI and HHS-OIG are committed to rooting out such criminal conduct.”
“Mr. Fly paid kickbacks generating fraudulent claims to line his pockets without concern for the health and welfare of the patients,” said Miranda L. Bennett, Special Agent in Charge of the HHS-OIG Dallas Region. “We will continue working with our law enforcement partners to pursue individuals defrauding federal health care programs.”
“By defrauding TRICARE, Mr. Fly disgracefully cheated U.S. veterans, their families, and American taxpayers,” said FBI Little Rock Acting Special Agent in Charge Jason Van Goor. “We are grateful for our state and federal partners who help us both investigate these cases and protect the financial integrity of our nation’s health care systems.”
In addition to the 20-month prison sentence, Fly was sentenced to three years of supervised release. The investigation was conducted by HHS-OIG and the FBI and prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
8 April 2021
Wise County Man Pleads Guilty to Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va.- Travis Kilgore, a Wise, Va., man who conspired to file for fraudulent pandemic unemployment benefits, pleaded guilty today in U.S. District Court in Abingdon to charges he conspired with others to commit mail fraud and defraud the government of more than $182,474, Acting United States Attorney Daniel P. Bubar and Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General announced today.
Kilgore, 34, waived his right to be indicted and pleaded guilty today to a two-count Information charging him with one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.
“During a worldwide pandemic, Kilgore and his co-conspirators defrauded the government and stole funds targeted to help the most vulnerable in society, who had lost their jobs,” said Acting U.S. Attorney Bubar today. “I am grateful for the Department of Labor and our state partners, whose hard work brought Kilgore to justice, and demonstrate the importance of the integrity of these vital programs.”
“Pandemic unemployment insurance benefits provide needed assistance to qualified individuals who suffered a loss of employment due to the COVID-19 Pandemic. The defendant and his co-conspirators took advantage of this program by lying about their eligibility when filing for Pandemic unemployment insurance for themselves and others. The Office of Inspector General will continue to work diligently with the U.S. Attorney’s Office, the Virginia Employment Commission, and our law enforcement partners to protect the integrity of the unemployment insurance system from those who choose to exploit the program” said Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
Kilgore admitted today that he, and others, developed a scheme beginning in May 2020 to defraud the United States and the Virginia Employment Commission (VEC) through the filing of fraudulent claims for pandemic unemployment benefits.
According to court documents, Kilgore and others filed claims for pandemic unemployment benefits through the VEC website. The scheme involved submitting claims for various individuals, including Kilgore and others, who were not eligible to receive pandemic unemployment benefits. Kilgore lied on the filings as part of the scheme to appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, Kilgore reverified and re-certified the false statements on numerous occasions throughout the scheme.
In all, Kilgore filed claims for approximately 21 other individuals, causing at least $182,474 in false claims to be have been paid.
The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.
Wilkes-Barre Man Sentenced to 87 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Luis Vazques, age 39, of Stroudsburg, Pennsylvania, was sentenced yesterday to 87 months’ imprisonment by United States District Court Judge Robert D. Mariani for drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, Vazques pleaded guilty to a conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin (approximately 5,000 individual doses) and 40 grams or more of fentanyl. Vazques also pleaded guilty to possessing a firearm in furtherance of his drug trafficking.
The case was investigated by the FBI, the Pennsylvania State Police, Monroe, Pennsylvania District Attorney’s Office and Stroud Area Regional Police. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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