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7 April 2021
Baltimore Man Sentenced to 14 Years in Federal Prison for Firearm and Armed Bank Robbery ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Richard Tingler, age 56, of Baltimore, Maryland, to 14 years in federal prison, followed by five years of supervised release, on charges of armed bank robbery and brandishing of a firearm during a crime of violence. The sentence was imposed on April 6, 2021.
The sentence plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
According to his plea agreement, on January 23, 2019 and February 1, 2019, Richard Tingler and his co-defendant David Gollahon committed two-armed bank robberies in Baltimore, Maryland, with co-defendant Richard Adams serving as the getaway driver in each robbery. During each of the robberies, Tingler and Gollahon brandished firearms and threatened bank employees.
Specifically, on January 23, 2019, Adams drove Tingler and Gollahon in a gray Hyundai Accent car that he had rented two weeks earlier, to a bank located in the 3600 block of Boston Street in Baltimore. Tingler carried a loaded black .45-caliber firearm and Gollahon carried a loaded black .380-caliber firearm and both men wore ski masks to disguise their identities. Tingler also carried a black leather duffel bag.
After entering the bank, Tingler approached the victim teller, pointed his firearm at her and demanded $100 dollar bills and “loose bills” from the bottom drawer of the till. Meanwhile, Gollahon held the other bank employees and customers at gunpoint in the lobby area of the bank. He told the bank employees and customers, “don’t move.” Tingler took more than $7,000 in cash from the victim teller. Tingler and Gollahon then ran away, accidentally dropping more than $5,000 in cash as they ran through a parking lot. They got into the waiting gray Hyundai Accent car driven by Adams, and drove away.
On February 1, 2019, Adams drove Tingler and Gollahon in a 2006 Chevy Monte Carlo, which was registered to Adams, to a bank located in the 2900 block of O’Donnell Street in Baltimore. Tingler and Gollahon each had the same firearm they had used in connection with the January 23, 2019 bank robbery, and their faces were covered. After entering the bank, Tingler and Gollahon approached the teller window. Tingler pointed his firearm at the teller and demanded $100 bills. The victim teller handed over cash from the till, but Tingler continued to demand more money. At the same time, Gollahon approached the teller line with his firearm pointed in the direction of the tellers and bank customers. In response to the demands for more cash, the victim teller and a co-worker went to the bank’s vault and removed more cash, which they provided to Tingler and Gollahon, along with a GPS tracker, which was activated.
Tingler and Gollahon then fled the bank and got into the 2006 Chevy Monte Carlo driven by Adams, who was waiting for them. Adams drove the Monte Carlo away from the bank. Law enforcement received GPS information concerning the location of the GPS tracker taken from the bank, which they relayed to Baltimore Police Department (BPD).
BPD officers stopped the vehicle. Adams, Tingler, and Gollahon were ordered out of the vehicle and arrested. At the time of his arrest, Gollahon had the same firearm he used during the robbery on his person. Law enforcement searched Adams’ car and recovered a blue backpack containing the cash taken during the robbery, the GPS tracker, and the firearm carried by Tingler during both bank robberies.
Later that day, law enforcement searched Adams’ residence in Essex, Maryland and seized Gollahon’s gray hooded sweatshirt and the black leather duffel bag carried by Tingler during the January 23, 2019 robbery.
Tingler was detained pending trial. During the period of his pre-trial detention, Tingler was heard on lawfully recorded jail calls stating that he “robbed a bank” and that it “didn’t work out.” On a separate call, Tingler admitted that the cash taken from the bank “had a GPS in it.” On another call, Tingler described in more detail the banks he robbed, stating that he robbed two banks in Canton, and that he wouldn’t have gotten caught if he hadn’t taken a GPS tracker.
Co-defendants David Gollahon, age 59, of Baltimore, Maryland, and Richard Adams, age 60, of Essex, Maryland, were sentenced to 13 years in federal prison and 90 months in federal prison, respectively.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the BPD, and the BCPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Paul Riley and Daniel Loveland, Jr., who prosecuted the case.
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Armed robbery of Billings convenience store sends man to prison for more than 18 yearsRead the Press Release
BILLINGS – A man who admitted using a gun to hold up a Billings convenience store and to shooting the clerk in the arm was sentenced today to 18 years and nine months in prison and to five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Darren Samuel Whiteman, 37, a transient, pleaded guilty on Nov. 20, 2020 to robbery affecting commerce and to possession of a firearm in furtherance of a crime of violence as charged in an indictment.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court documents that on Nov. 24, 2019, the Billings Police Department responded to an armed robbery at the Gas n Go, located at 800 Jackson Ave. During the robbery, the suspect, identified through the investigation as Whiteman, shot the clerk in the arm with a handgun. The victim reported that Whiteman said, “Open the cash register. I’m robbing the place. Imma pop this bitch.” Whiteman then shot the clerk and fled in a pickup truck.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Albuquerque woman pleads guilty to federal firearm and drug chargesRead the Press Release
ALBUQUERQUE, N.M. – Elisha Muller, 36, of Albuquerque, pleaded guilty in federal court on April 7 to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.
A grand jury indicted Muller on Sept. 10, 2020. According to the plea agreement, Muller was arrested on Aug. 20, 2020, after law enforcement received information that she was selling drugs and executed a search warrant at her apartment in Albuquerque. Officers discovered three firearms, ammunition, 15 grams of methamphetamine, 5 grams of heroin and $1,800 in her apartment. Muller admitted to selling drugs and keeping drug sale ledgers of her transactions that officers also found at her apartment.
Muller is currently in custody and faces 20 years in prison for these offenses.
The FBI Violent Crimes Task Force and the Bernalillo County Sheriff’s Office investigated this case. Assistant U.S. Attorney Sarah Mease is prosecuting the case.
6 April 2021
Woman Sentenced to 12 Years in Prison for Coercing Members of Church Ministry into Forced LaborRead the Press Release
CHICAGO — The self-appointed bishop of a Pennsylvania ministry has been sentenced to 12 years in federal prison for forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.
A jury in 2019 convicted TRACIE DICKEY, also known as “Tracie Williams,” 57, of Pittsburgh, Pa., on wire fraud and labor trafficking charges.
Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in Pennsylvania, North Carolina, and Florida. She also purported to operate a travel agency known as World Ambassador Travel. Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels. She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, even though her agency never actually booked reservations on behalf of the hotel guests. The hotel scheme resulted in at least $66,525 in fraudulent proceeds.
Dickey also collected hundreds of thousands of dollars in wages earned by members of her ministry. Dickey emotionally and physically abused the members and coerced them into following her rules. Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules. Several of Dickey’s victims testified at trial about their ordeals.
U.S. District Judge Sara L. Ellis imposed the 12-year sentence Monday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh Field Office. The government was represented by Assistant U.S. Attorney Maureen E. Merin.
Wheeling residents indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Cordale Antonio Williams and Tina Soper, of both of Wheeling, West Virginia, was indicted today on drug charges, Acting United States Attorney Randolph J. Bernard announced.
Williams, 30, was indicted on one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Methamphetamine, and Cocaine Hydrochloride,” one count of “Distribution of Cocaine Base,” one count of “Unlawful Possession of a Firearm and Ammunition,” one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine,” and one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride.”
Soper, 43, was indicted on one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Methamphetamine, and Cocaine Hydrochloride,” one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine,” and one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride,” and one count of “Maintaining a Drug-Involved Premise.”
Both are accused of working together to distribute cocaine base, methamphetamine, and cocaine hydrochloride from the summer of 2020 to March 2021 in Ohio County. Williams, a person prohibited from having firearms because of prior convictions, is accused of having two 9mm pistols, a .380 pistol, a semi-automatic rifle, and 105 rounds of various ammunition. Soper is also accused of maintaining a house for drug trafficking on Edgwood Street in Wheeling.
Williams and Soper each face at least 10 years and up to life incarceration and a fine of up to $10,000,000 for the conspiracy charge and face up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other drug possession charges. Williams is also facing up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Soper is also facing up to 20 years of incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
West Haven Man Sentenced to Federal Prison for Firearm and Cocaine OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRIAN MELENDEZ, 32, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by six years of supervised release, for cocaine distribution and ammunition possession offenses.
According to court documents and statements made in court, Melendez was arrested on January 7, 2020, after a court-authorized search of his West Haven residence and a car parked at the residence revealed a loaded .22 caliber pistol, a distribution quantity of cocaine, and items used to process and package narcotics for street sale. Melendez’s residence is located in proximity to the Washington Elementary School.
Melendez’s criminal history includes felony convictions for firearms possession offenses in Connecticut and North Carolina. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 4, 2021, Melendez pleaded guilty to one count of possession of ammunition by a convicted felon, and one count of possession with intent to distribute cocaine near a school.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
Washington, D.C. Man Sentenced for Armed Robbery SpreeRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to 21 years in prison in connection with a series of armed robberies that he conducted at multiple banks and a retail store in northern Virginia in 2018 and 2019.
According to court documents, Freddie Lee McRae, 35, committed a series of robberies in 2018 and 2019. On November 13, 2018, McRae robbed a Wells Fargo bank branch located in Alexandria. McRae handed a teller a note that demanded money, indicated he had a firearm, and threatened to “[k]ill [a]ll [b]ankers” if the teller did not comply. McRae pointed a firearm at two tellers before fleeing with approximately $8,750 in cash.
“This case involved a chilling armed robbery spree during which innocent community members were threatened with serious injury or death if they did not comply with repeated demands for money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are thankful to our law enforcement partners for their thorough investigation across multiple jurisdictions to bring the defendant to justice, including apprehending him after he jumped out of a moving vehicle prior to it crashing and sinking into the Potomac River.”
“The FBI, along with our partners at every level of law enforcement, are committed to protecting the public from the most egregious and violent criminals who terrorize the community,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “Today’s significant sentence demonstrates the seriousness and threat McRae posed to businesses and people in our community. The sentence is the result of teamwork among our partners to hold him accountable and prevent future violence.”
On December 10, 2018, McRae robbed a Burke & Herbert bank branch located in Alexandria. McRae approached a teller, who asked if he wanted to make a deposit. McRae responded, “gimmie your money,” before lifting up his shirt and pulling a pistol from his waistband, which he pointed at the teller. As the teller gathered money, McRae racked the slide on the pistol and demanded all large bills. McRae fled with approximately $1,366 in cash.
On April 21, 2019, McRae robbed the Legend Kicks & Apparel store located in Arlington. McRae brandished a pistol and demanded that two store employees empty their pockets, which they did. McRae then ordered the employees to lie on the floor before taking approximately $2,160 in cash that belonged to the store. McRae fled the store on foot and the area by vehicle. When a law enforcement officer tried to pull over the vehicle, McRae stopped only briefly before leading law enforcement officers on a vehicle pursuit on the George Washington Memorial Parkway. McRae ultimately jumped out of his moving vehicle prior to it crashing and sinking into the Potomac River. McRae tried to flee law enforcement by jumping into the river, but officers pulled him out and placed him under arrest.
As part of his guilty plea, McRae also admitted to robbing a Bank of America branch in Springfield on October 27, 2018; a BB&T branch located in Alexandria on December 20, 2018; and a Capital One branch located in Bowie, Maryland, on January 2, 2019. McRae further admitted to attempting to rob a Capital One branch located in Arlington on February 11, 2019, and to obstructing justice following his apprehension.
The bank robberies that McRae admitted to committing were investigated by the FBI as part of the “Beltway Bank Bandit” series.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Acting Chief Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI Washington Field Office’s Northern Virginia Violent Crime Safe Streets Task Force, which is composed of FBI Special Agents and Task Force Officers from northern Virginia law enforcement agencies. Significant investigative assistance in this case was provided by the Arlington County Police and the Fairfax County Police. The task force is charged with identifying, investigating, and disrupting the most egregious and violent criminal actors within northern Virginia.
Assistant U.S. Attorneys Natasha Smalky and Alexander E. Blanchard 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. 1:19-cr-268.
Utah Pharmacist Sentenced for Receipt of Misbranded Drugs Imported from ChinaRead the Press Release
SALT LAKE CITY – Daniel Kevin Richards, 37, of Sandy, Utah, was sentenced to three years of probation and a $10,000 fine in federal court on Monday after previously pleading guilty to receiving misbranded chloroquine from China with the intent to sell the drug in the United States.
In the plea agreement, Richards admitted that, in April of 2020, he imported and received over 50 kilograms of misbranded and mislabeled chloroquine from China. Richards admitted that the chloroquine was falsely mislabeled as “Boswellia Serrata Extract” and that the drug was not manufactured and prepared by an establishment registered as a drug manufacturer with the Food and Drug Administration. Additionally, the labeling on the drugs failed to bear adequate directions for use as required by federal law. Richards has also been ordered to pay for the destruction of the drug by proper authorities with the United States Food and Drug Administration.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the Food and Drug Administration- Office of Criminal Investigations, the FBI, and investigators from the Salt Lake County District Attorney’s Office conducted the investigation.
Union County Man Admits to Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man pleaded guilty today to possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Chu, 30, of Garwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In February 2018, Chu downloaded approximately 90 videos depicting the sexual abuse of children from a website on the darknet.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 26, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
U.S. Attorney Announces Charges Against Seven Defendants for Kidnapping, Robbery, Firearms, and Narcotics OffensesRead the Press Release
Audrey Strauss, the U.S. Attorney for the Southern District of New York, and Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of a nine‑count superseding indictment charging FERNANDO RA, KENNY BATISTA, FERNANDO ROSARIO CRUZ, YONATHAN JUNIOR GARCIA VALDEZ, ANTTWAN CROSBIE, ELMER GILL, and MICHAEL ASHLEY with kidnapping, robbery, firearms, and narcotics offenses.
As alleged in the Superseding Indictment unsealed today and other publicly available documents, the charges arise, in part, from an October 3, 2020 kidnapping and robbery during which certain of the defendants brandished a firearm and assaulted two victims in connection with the defendants’ trafficking of cocaine.[1]
RA was previously charged by indictment with firearms and narcotics offenses, based on his possession of an assault rifle, a loaded pistol, and approximately 700 fentanyl pills.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged in the Superseding Indictment, the defendants were responsible for a brutal kidnapping and robbery in furtherance of their narcotics trafficking. Thanks to the extraordinary work of our partners at the DEA and the Special Agents and Investigative Analysts at the U.S. Attorney’s Office, the defendants now face federal charges for their crimes”
DEA Special Agent in Charge Raymond P. Donovan said: “As alleged, this investigation took us to the dark side of drug trafficking that includes kidnapping, armed robbery, and assault. These arrests make it poignantly clear that alleged traffickers disregard the rule of law and will stop at nothing to continue their illegal trade. I applaud the investigators and prosecutors whose exceptional work resulted in today’s announcement.”
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BATISTA, 25, ROSARIO, 27, GARCIA, 21, GILL, 36, and ASHLEY, 30, were arrested today, and CROSBIE, 26, was arrested yesterday. BATISTA, ROSARIO, GARCIA, GILL, and CROSBIE will be presented before United States Magistrate Judge Stewart D. Aaron. ASHLEY will be presented before United States Magistrate Judge Jeremiah J. McCarthy of the Western District of New York. RA was already in federal custody. The case is assigned to United States District Judge P. Kevin Castel.
A chart containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.
Ms. Strauss praised the outstanding investigative work of Special Agents from the New York Division of the DEA and Special Agents from the U.S. Attorney’s Office for the Southern District of New York. Ms. Strauss also thanked the DEA Buffalo Resident Office and the Paterson (New Jersey) Police Department for their assistance with the investigation, as well as the Organized Crime Drug Enforcement Task Force New York Strike Force, Financial Investigation Team, comprising agents and officers of the DEA, NYPD, Bergen County Prosecutors Office, Fort Lee Police Department, Teaneck Police Department, Hillsdale Police Department, Northvale Police Department, Palisades Interstate Parkway Police, and Closter Police Department.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Rushmi Bhaskaran and Benjamin Woodside Schrier are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
DEFENDANT(S)
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Distribute and Possess with the Intent to Distribute More than 40 Grams of Fentanyl (21 U.S.C. § 846)
Fernando Ra
Anttwan Crosbie
40 Years; Mandatory Minimum Sentence of Five Years
Count Two: Using, Carrying, and Possessing a Firearm During, in Relation to, and in Furtherance of a Drug Trafficking Crime (18 U.S.C. §§ 924(c)(1)(A)(i) and 2)
Fernando Ra
Life; Mandatory Consecutive Sentence of Five Years
Count Three: Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1))
Fernando Ra
10 Years
Count Four: Conspiracy to Distribute and Possess with the Intent to Distribute More than Five Kilograms of Cocaine (21 U.S.C. § 846)
All Defendants
Life; Mandatory Minimum Sentence of 10 Years
Count Five: Conspiracy to Commit Kidnapping (18 U.S.C. § 1201(c))
Fernando Ra
Kenny Batista
Fernando Rosario Cruz
Yonathan Junior Garcia Valdez
Anttwan Crosbie
Life
Count Six: Conspiracy to Commit Hobbs Act Robbery (18 U.S.C. § 1951(a))
Fernando Ra
Kenny Batista
Fernando Rosario Cruz
Yonathan Junior Garcia Valdez
Anttwan Crosbie
20 Years
Count Seven: Attempted Hobbs Act Robbery (18 U.S.C. §§ 1951(a) and 2)
Fernando Ra
Kenny Batista
Fernando Rosario Cruz
Yonathan Junior Garcia Valdez
20 Years
Count Eight: Using, Carrying, and Brandishing a Firearm During, in Relation to, and in Furtherance of a Crime of Violence and a Drug Trafficking Crime (18 U.S.C. §§ 924(c)(1)(A)(i), 924(c)(1)(A)(ii), and 2)
Fernando Ra
Kenny Batista
Fernando Rosario Cruz
Yonathan Junior Garcia Valdez
Life; Mandatory Consecutive Sentence of Seven Years
Count Nine: Conspiracy to Use, Carry, and Possess a Firearm During, in Relation to, and in Furtherance of a Crime of Violence and a Drug Trafficking Crime (18 U.S.C. § 924(o))
Fernando Ra
Anttwan Crosbie
20 Years
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment and other publicly available documents set forth below constitute only allegations, and every fact described should be treated as an allegation.
U.S. Air Force Servicemember Pleads Guilty to Federal Firearm and Drug ChargesRead the Press Release
LAS VEGAS, Nev. – A senior U.S. Air Force servicemember assigned to Nellis Air Force Base pleaded guilty in federal court today to selling methamphetamine and engaging in the business of selling firearms without a license, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration (DEA).
Michael Reimers, 41, of Las Vegas, pleaded guilty to one count of distribution of a controlled substance and one count of engaging in the business of dealing in firearms without a license. U.S. District Judge Kent J. Dawson scheduled a sentencing hearing on July 13, 2021.
According to court documents and admissions Reimers made in court, beginning on or about July 9, 2019, and continuing to about September 4, 2019, Reimers — who was not a licensed firearms dealer — offered to sell numerous firearms to various buyers, including an AK-47, a .26 caliber handgun, and a 12 gauge shotgun. In addition, on July 23, 2019, Reimers sold methamphetamine to an individual for $800.
Reimers faces a statutory maximum sentence of a lifetime term of imprisonment, a lifetime period of supervised release, and a fine of $10,250,000.
The case was investigated by the DEA, along with the Las Vegas Metropolitan Police Department and Henderson Police Department. Assistant U.S. Attorney Shaheen Torgoley is prosecuting the case.
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Torrance Man and His Sister Charged in Multimillion Dollar Real Estate Scam Involving Fake Open Houses at Not-for-Sale HomesRead the Press Release
LOS ANGELES – A Southern California brother-and-sister team were arrested today on federal charges alleging they orchestrated a $6 million real estate fraud scam in which they listed homes without the owners’ consent and collected money from multiple would-be buyers for each of the not-for-sale homes.
Adolfo Schoneke, 43, of Torrance, and his sister, Bianca Gonzalez, a.k.a. Blanca Schoneke, 38, of Walnut, each pleaded not guilty this afternoon to nine charges contained in an indictment unsealed after their arrests. The indictment charges Schoneke and Gonzalez with one count of conspiracy, seven counts of wire fraud, and one count of aggravated identity theft.
According to the indictment, Schoneke and Gonzalez, with the help of co-conspirators, operated real estate and escrow companies based in Cerritos, La Palma and Long Beach under a variety of names, including MCR and West Coast. The indictment alleges Schoneke and Gonzalez found properties that they would list for sale – even though many, in fact, were not for sale, and they did not have authority to list them for sale – and they then marketed the properties as short sales providing opportunities for purchases at below-market prices.
Using other people’s broker’s licenses, Schoneke and Gonzalez allegedly listed the properties on real estate websites such as the Multiple Listing Service (MLS). In some cases, the indictment alleges, the homes were marketed through open houses that co-conspirators were able to host after tricking homeowners into allowing their homes to be used.
As part of the alleged scheme, the co-conspirators accepted multiple offers for each of the not-for-sale properties, hiding this fact from the victims and instead leading each of the victims to believe that his or her offer was the only one accepted. The co-conspirators allegedly were able to string along the victims – sometimes for years – by telling them closings were being delayed because lenders needed to approve the purported short sales.
The indictment also alleges that Schoneke and Gonzalez directed office workers to open bank accounts in the office workers’ names. Those accounts were used to receive down payments on the homes and other payments from victims who were convinced to transfer the full “purchase price” to these bank accounts after receiving forged short sale approval letters. Schoneke and Gonzalez also allegedly directed the office workers to withdraw large amounts of cash from these accounts and give it to them – a procedure that allowed Schoneke and Gonzalez to take possession of the fraud proceeds while hiding their involvement in the scheme.
Investigators estimate that several hundred victims collectively lost more than $6 million during the scheme.
During the arraignments this afternoon, a trial was scheduled for June 1. Both defendants will remain in custody at least until detention hearings scheduled for Friday for Schoneke and April 13 for Gonzalez.
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, Schoneke and Gonzalez each would face a statutory maximum sentence of 162 years in federal prison.
This matter was investigated by the FBI and the Federal Deposit Insurance Corporation, Office of Inspector General. The investigation was initiated by numerous complaints to the Long Beach Police Department and the Los Angeles County Sheriff’s Department, both of which provided substantial assistance during the federal investigation.
This case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Toledo man arrested and charged with selling fentanyl that caused two overdose deaths in Lucas CountyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Gerald Isom, age 46, of Toledo, Ohio, was arrested today and charged in a two-count indictment for allegedly distributing fentanyl that caused six overdose incidents, two of which were fatal.
The Defendant is charged with two counts of distribution of a controlled substance. Both counts carry a penalty enhancement due to death or serious bodily injury resulting from the use of the substance and a prior felony drug offense. If convicted, the Defendant potentially faces a mandatory life imprisonment sentence.
According to the indictment, from December 26 to December 27, 2019, it is alleged that the Defendant distributed a controlled substance mixture containing fentanyl that caused six people in Lucas County to overdose, two of which were fatal. In addition, prior to committing these alleged offenses, the Defendant was convicted of felony drug trafficking of cocaine in the Lucas County Court of Common Pleas.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Lucas County Sheriff's Office and the Cleveland Division of the FBI – Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Robert Melching.
Three Plead Guilty to Methamphetamine ChargesRead the Press Release
Three defendants have pleaded guilty to methamphetamine charges that resulted from an investigation conducted by the Tulsa Housing Authority Community Enhancement Unit and the Drug Enforcement Administration.
Albert Douglas Parker, 35, and Tina Marie Tankersley, 33, pleaded guilty to conspiring with Charles Studie and others to distribute pure methamphetamine and to maintaining their public housing unit as a drug involved premises to use and distribute methamphetamine. Marty Jay Foster, 53, pleaded guilty to maintaining a drug involved premises to use methamphetamine.
“The Tulsa County Sheriff’s Office, DEA, and my office dismantled this methamphetamine distribution operation, and these defendants now face time in federal prison for their crimes,” said Acting U.S. Attorney Clint Johnson. “The law enforcement community remains committed to protecting families living within Tulsa’s neighborhoods from this deadly drug and from the violence that accompanies methamphetamine distribution.”
Parker and Tankersley admitted that they intentionally conspired with others to possess methamphetamine with intent to distribute the drug from June 2019 to August 2020. The two defendants’ involvement required the participation, direction, and action of others, and all parties worked together for their shared mutual benefit, including monetary profit and drugs. The two further admitted to maintaining their public housing unit for the purpose of distributing and using methamphetamine beginning on Nov. 15, 2019. Parker will be sentenced June 29, 2021, and Tankersley will be sentenced July 2, 2021.
Foster pleaded guilty to maintaining a drug-involved premises for the purpose of using methamphetamine from June 2019 to August 2020. Sentencing is set for June 30, 2021.
Also named in the indictment is Charles Dean Studie, 36, of Tulsa, who pleaded guilty on Jan. 28, 2021, to drug conspiracy, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime. He will be sentenced May 26, 2021.
The Tulsa County Sheriff’s Office and Drug Enforcement Administration conducted the investigation. Tulsa County Sheriff’s Deputies that make up the Tulsa Housing Authority Community Enhancement Unit pursued this investigation as part of their responsibility to ensure the safety and security of the families that live within the Tulsa Housing Authority complexes. The Community Enhancement Unit (CEU) was created through a partnership between the Tulsa County Sheriff’s Office and the Tulsa Housing Authority.
Assistant U.S. Attorneys Christopher Nassar and Ryan Heatherman are prosecuting the case.
Suburban Chicago Tax Preparer Charged with COVID-Relief FraudRead the Press Release
CHICAGO – A suburban Chicago tax preparer has been indicted on federal fraud charges for allegedly fraudulently assisting customers in obtaining millions of dollars in loans under the Coronavirus Aid, Relief, and Economic Security Act.
HADI ISBAIH, 39, of Palos Heights, Ill., was charged in an indictment returned Monday in the Northern District of Illinois with four counts of wire fraud. An initial court appearance is scheduled for today at 2:15 p.m. before U.S. Magistrate Judge Beth W. Jantz.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Sharon Johnson, Special Agent-in-Charge of the Central Region of the U.S. Small Business Administration Office of Inspector General. The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.
“The relief programs provided by the CARES Act were designed to assist small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to root out abuse of these important programs and hold accountable anyone who seeks to fraudulently profit from them.”
“These programs were developed to help out small business owners survive the devastation caused by the COVID-19 pandemic, it’s unfortunate someone thought to take advantage of these programs,” said FBI SAC Buie. “We are honored to work with our law enforcement partners to identify whom those perpetrators are and ensure they pay for their crimes.”
“This indictment is an important victory for America's taxpayers who play by the rules and have no tolerance for those who make up their own," said IRS-CI Acting SAC Cantu. "Those that use the CARES Act relief funds as a free money pot steal vital lifelines from those that need it the most during the COVID-19 crisis and could face criminal prosecution and lengthy prison sentences. IRS Criminal Investigation has committed our resources and provides our financial expertise to pursue COVID-19 fraud of all kinds, and those like Mr. Isbaih will be brought to justice.”
“Falsifying documents to fraudulently gain access to SBA program funds is unconscionable,” said SBA-OIG SAC Johnson. “SBA-OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Two sources of relief established by the CARES Act, which was passed in March 2020, were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program (EIDL). The programs allowed qualifying small businesses to receive low-interest, government-backed loans to cover a temporary loss of revenue.
According to the indictment, Isbaih owned and operated Flash Tax Service Inc., a tax and investment consulting business in Bridgeview, Ill. From April to October 2020, Isbaih submitted on behalf of hundreds of Flash Tax customers PPP and EIDL applications that contained materially false statements and misrepresentations about the customers’ businesses, such as gross revenues, expenses, and number of employees, the indictment states. Isbaih’s false statements and misrepresentations caused millions of dollars in fraudulently obtained PPP and EIDL funds to be disbursed to those customers, the charges allege.
Isbaih charged Flash Tax customers an upfront fee of approximately several hundred dollars before he submitted the fraudulent applications on the customers’ behalf, the indictment states. If the customers received the PPP or EIDL funds based on those applications, Isbaih charged the customers an additional fee of approximately $1,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or completing a NCDF online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Springfield Man Pleads Guilty to ExtortionRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield in connection with on an extension of credit by extortionate means.
Anthony J. Scibelli, 52, pleaded guilty to one count of collecting on an extension of credit by extortionate means. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 3, 2021. Scibelli was indicted in July 2019.
In 2017, Scibelli provided a $5,000 loan to the victim, who made monthly payments of $1,300 until June 2019. Beginning in May 2019, Scibelli used threats as he attempted to collect on that line of credit. Specifically, on June 19, 2019, Scibelli threatened and beat the victim’s head and body for failing to make the monthly $1,300 payment. During the beating, the defendant threatened that the victim must have all the money “on the first,” referring to the 1st of the month.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Neil Desroches of Mendell’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Sex offender and previous felon gets more prison time for meth possessionRead the Press Release
LAREDO, Texas – A 43-year-old Laredo native has been ordered to federal prison for possessing with intent to distribute a large quantity of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Daniel Marco Garcia pleaded guilty Sept. 4, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve 168 months in prison to be immediately followed by five years of supervised release.
At the hearing, the court heard that Garcia is currently serving a 57-month sentence for an unrelated firearms case, has a prior alien smuggling conviction and is a convicted sex offender. In handing down the sentence, Judge Marmolejo noted his extensive criminal record.
“Methvis a vicious poison that continues to cause horrific and long-term damage to the quality of life in many of our communities across our Nation,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “In Laredo, and all across the Southwest Border, DEA and our partners continue to target drug traffickers and shut down their operations at all levels.”
On July 11, 2018, Garcia planned to transport meth within Webb County. However, authorities stopped him for a traffic violation during his trip, at which time they conducted a search of his vehicle. They soon found six bundles of meth hidden inside a black bag within the vehicle weighing approximately six kilograms.
The drugs had an estimated street value of $37,000.
He has been and will remain in custody.
The DEA conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Crystal Monkey with the assistance of Homeland Security Investigations, Texas Department of Public Safety, Webb County Sheriff’s Office and the Laredo Police Department. Assistant U.S. Attorney (AUSA) Jennifer Day and former AUSA Chris dos Santos prosecuted the case.
OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement.
Several indicted on firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Several people were indicted today by a Grand Jury sitting in Wheeling, West Virginia, on firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Seth Richard Conrad, of Woodsfield, Ohio, was indicted today on one count of “False Statement to Firearms Dealer.” Conrad, 44, is accused of making a false statement on a firearms form required to purchase a gun. The crime allegedly occurred in March 2020 in Wetzel County.
Joshua Luke Hunter, of Sistersville, West Virginia, was indicted on one count of “Unlawful Possession of a Firearm.” Hunter, 42, a person prohibited from having a firearm because of prior convictions, is accused of having a .22 caliber rifle in September 2020 in Tyler County.
Lucas T. Kincade, of Moundsville, West Virginia, was indicted on one count of “Stealing Firearm from a Dealer,” one count of “Unlawful Possession of a Firearm,” and one count of “Possession of a Stolen Firearm.” Kincade, 28, a person who is prohibited from having a firearm because of prior convictions, is accused of stealing a .40 caliber semi-automatic pistol from a licensed firearms dealer in Marshall County in December 2020.
Samuel Amos Minger, of New Martinsville, West Virginia, was indicted on one count of “Unlawful Possession of a Firearm.” Minger, 42, a person prohibited from having a firearm because of prior convictions, is accused of having a .327 caliber six-shot revolver in November 2020 in Tyler County.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the Conrad and Kincade cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the Conrad case. The Moundsville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the Kincade case.
Assistant U.S. Attorney Jennifer T. Conklin is prosecuting the Hunter case on behalf of the government. The Tyler County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Assistant U.S. Attorney David J. Perri is prosecuting the Minger case on behalf of the government. The Tyler County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Rutland Man Charged with Unlawfully Possessing Firearm that Killed Another Rutland ManRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kahliq Richardson, 18, of Rutland, Vermont, was arrested yesterday evening for unlawfully possessing a firearm. Richardson is scheduled to appear remotely this afternoon for an initial appearance before the Hon. Kevin J. Doyle, United States Magistrate Judge.
According to the complaint filed earlier today, on Saturday, April 3rd, Rutland City Police responded to a shooting at the Quality Inn on South Main Street. In Room 100, they located a deceased male who had suffered a gunshot wound to the head, a tan Taurus 9mm pistol, assorted ammunition, suspected marijuana, and drug paraphernalia. Witnesses identified Richardson as having possessed a tan firearm in the days prior to the shooting. Richardson subsequently reported to law enforcement that he had used cocaine base in Room 100 of the Quality Inn on the evening of April 3, 2021. Richardson also admitted to being in possession of the tan Taurus firearm, and that the firearm had accidentally discharged. Law enforcement subsequently searched Richardson’s bedroom, locating suspected marijuana and one 9mm ammunition cartridge. Law enforcement also ascertained that Richardson had been served with a final Relief From Abuse order on January 29, 2021, following an incident of domestic violence reported by Richardson’s ex-girlfriend.
Richardson was arraigned in Vermont Superior Court in Rutland on April 5, 2021 on a charge of manslaughter related to the shooting at the Quality Inn. Following the hearing, Richardson was arrested by an FBI Task Force Officer for Richardson’s possession of a firearm while an unlawful user of controlled substances and after having been served with a relief from abuse order, both in violation of Title 18, United States Code, Section 922(g).
The United States Attorney emphasizes that the charge against Richardson is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, Richardson could face up to ten years in prison, up to a $250,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Richardson’s personal history and characteristics.
AUSA Wendy Fuller is prosecuting the case for the government. Richardson is represented by Mark Kaplan, Esq.
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 enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Romanian National Sentenced to 33 Months in Federal Prison for Role in Nationwide ATM Skimming ActivityRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that GEORGE DRAGUSIN, also known as “Georgio Anderini” and “Einstein,” 65, a citizen of Romania, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 33 months of imprisonment for his participation in an extensive ATM skimming scheme that defrauded banks from coast to coast.
According to court documents and statements in court today, between February and June 2017, a Connecticut bank experienced approximately 35 incidents of ATM skimming at locations in Stratford, Monroe, Trumbull, Greenwich, Fairfield and elsewhere in Connecticut. As part of the scheme, conspiracy members placed skimming devices at the ATMs to capture account numbers and personal identification numbers (“PINs”) from customers who used their ATM cards at the ATMs while the devices were in place. Conspiracy members then used the captured information to make substitute ATM cards, and obtained money and made purchases using those cards. The bank suffered losses of approximately $286,069 during the scheme.
On August 23, 2019, Dragusin pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In pleading guilty, he admitted that he installed and removed ATM skimming equipment at several bank locations in Connecticut, and used re-encoded cards and PINs to obtain money from several bank locations. Dragusin also admitted that, between March and September 2018, he participated in ATM skimming activity in Nevada, Illinois, Ohio, Indiana and California, causing multiple banks to suffer total losses of more than $645,000.
Dragusin was arrested in Hayward, California, in September 2018. He has been detained since his arrest.
This investigation has been conducted by the Connecticut Financial Crimes Task Force; the U.S. Secret Service in New Haven and Las Vegas; the Greenwich Police Department; the Monroe Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); the New York Police Department; the Las Vegas Metropolitan Police Department; the Dixon (Calif.) Police Department, and the Hayward (Calif.) Police Department.
The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Repeat Fraudster Sentenced to over Five Years in Prison for Operating Credit Card Fraud Ring from Latvia Targeting U.S. CitizensRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edgar Ivulans, 43, of Latvia, was sentenced today to five years and five months in prison, and was ordered to pay $12,754 in restitution, to forfeit $12,754, and to further pay a $4,000 special assessment by United States District Judge R. Barclay Surrick for operating a fraud scheme utilizing the stolen identities of U.S. citizens. The defendant, a Latvian citizen who was arrested in Germany and successfully extradited to the United States to face the charges in this case, operated the fraud scheme from his home in Latvia.
In June 2020, the defendant pleaded guilty to a 40-count Indictment charging one count of conspiracy to commit mail and wire fraud; 13 counts of wire fraud; 14 counts of mail fraud; one count of conspiracy to commit access device fraud; one count of production, trafficking in, and possession of device-making equipment; one count of production of counterfeit access devices; five counts of money laundering; and four counts of aggravated identity theft.
Ivulans had previously lived in the United States but was deported to his native Latvia after sustaining two fraud convictions in federal court in Illinois. Ivulans’ deportation and residency in Latvia did not stop him from operating the sophisticated fraud scheme in this case. As part of the scheme, Ivulans used stolen identities of U.S. residents to obtain credit cards in their names, which he sent to a co-conspirator based in Philadelphia, who in turn used the fraudulently opened credit cards to buy merchandise that was then sold or returned for cash. The Philadelphia-based co-conspirator would then wire the funds to other co-conspirators in Russia, or first to co-conspirators in Ireland and then to the defendant. Ivulans, while in Latvia, also created additional counterfeit credit cards using the U.S. victims’ credit card information, and sent the Philadelphia-based co-conspirator a magnetic stripe card reader, which was used to create new counterfeit credit cards that the co-conspirator used to purchase pre-paid debit cards and other goods. That merchandise was then shipped to more co-conspirators in Sweden and Ukraine, and directly to the defendant. When Latvian authorities, working in conjunction with the FBI, searched Ivulans’ home in Latvia, over 12,000 credit card numbers were found on his computer, along with at least ten full identity profiles of U.S. residents.
“Identity theft crimes like these have a devastating and long-lasting impact on the victims,” said Acting U.S. Attorney Williams. “Ivulans’ crimes are especially offensive because he committed them after sustaining other fraud convictions resulting in his deportation. Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Queens Man Charged for Defrauding Government Rental Assistance Programs by Renting Out Dilapidated Apartments He Did Not Own to Families in NeedRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging PAUL FISHBEIN, the defendant, with theft of government funds, wire fraud, and mail fraud for defrauding rental assistance programs administered by New York City’s Human Resources Administration (“HRA”), New York City’s Housing Preservation & Development (“HPD”), and the New York City Housing Authority (“NYCHA”), by falsely claiming to be the owner and landlord of 20 properties (the “Properties”) in New York City, renting out the Properties to families in need through the rental assistance programs, and collecting money – including federal funds – from HRA, HPD, and NYCHA as the purported owner and landlord of the Properties. The defendant is also charged with Medicaid fraud. The defendant was arrested today and will be presented later today in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron.
U.S. Attorney Audrey Strauss said: “As alleged, Paul Fishbein not only took advantage of New Yorkers in need, he also defrauded city and federal government programs designed to help those very people. Fishbein allegedly lied about ownership of residential properties, fraudulently took rent subsidies and other benefits from those government housing programs, and often evicted tenants without cause from housing that was substandard in any event. Now Paul Fishbein is in custody and facing serious federal charges for his alleged fraud and exploitation.”
DOI Commissioner Margaret Garnett said: “This defendant’s alleged conduct wove a web of lies that allowed him to illegally profit from government programs meant to help those in desperate need of housing, and he further exploited them by providing squalid apartments in properties he did not rightly own, often evicting them shortly after they moved in, according to the charges. Homeless New Yorkers, and others in critical need of housing, not only have a need but a right to homes that are clean, safe, and secure, especially when they are offered through public assistance programs. DOI will continue to work in partnership with the U.S. Attorney’s Office for the Southern District of New York to root out and stop the corruption and fraud that undermines basic needs such as housing.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
The Rental Assistance Program Fraud
The Rental Assistance Programs
HRA, HPD, and NYCHA (collectively, the “Agencies”) each offer a rental subsidy program that helps provide critical affordable housing to New Yorkers in need. Landlords who participate in these programs receive guaranteed monthly rent payments, among other benefits. Rental units must meet federal “Housing Quality Standards,” which are based on the minimum criteria for safe housing, and otherwise meet basic safety and living conditions.
Specifically, HRA administers a rental assistance program (the “Rental Assistance Program”) that helps homeless families move out of the shelter system and into stable housing. Landlords who participate in the Rental Assistance Program rent housing to homeless families, and in turn, HRA pays participating landlords, among other things, (i) the first month’s rent; (ii) a landlord bonus at signing, which is currently $4,300; and (iii) a rent supplement for either the first three or 11 months’ rent, which is paid in a lump sum at the time of the lease. In addition, if a landlord uses the services of a broker in renting out the property, HRA will pay the broker a broker’s fee equal to 15 percent of the annual rent. These and other program-related payments from HRA to participating landlords and brokers include funds from the federal government.
HPD offers a Housing Choice Voucher program, which is also known as Section 8 (“HPD’s Section 8 Housing Program”). This program provides federal funding to local housing agencies to assist eligible low-income families with rental subsidies toward decent, safe, and affordable housing. Participating families pay a certain percentage of their income toward rent and HPD pays the difference directly to the landlord.
NYCHA also operates a Section 8 program (“NYCHA’s Section 8 Housing Program”), which provides assistance to eligible low- and moderate-income families to rent housing in the private market. NYCHA’s Section 8 Housing Program works as a rental subsidy that allows families to pay a reasonable amount of their income toward their rent. In general, families pay no more than 40 percent of their adjusted monthly income toward their rent share. NYCHA pays the remaining amount to the property owner on the family’s behalf.
The Housing Fraud
In this case, from at least in or about 2013 through at least in or about the present, the defendant defrauded the Agencies’ rental assistance programs by falsely claiming to be the owner and landlord of 20 different Properties in New York City based on forged deeds that purported to transfer the Properties from legitimate owners to the defendant. The defendant rented out the Properties to homeless and low/moderate-income families through the Agencies’ programs, and collected payments from the Agencies as the purported owner and landlord of the Properties. In addition, the defendant falsely represented to HRA that he used a broker to rent out the Properties, and collected and kept for himself certain broker’s fees that HRA issued for the Properties. The defendant also took advantage of the homeless and in-need families who were placed in the Properties. For example, most of the Properties that Fishbein rented out were dilapidated and uninhabitable. Moreover, even though he was not the lawful owner of the Properties, the defendant often evicted families shortly after they were placed in the Properties. Through this scheme, the defendant fraudulently obtained more than $1.5 million from HRA, HPD, and NYCHA, including more than $270,000 in federal funds.
The Medicaid Fraud
The defendant also committed Medicaid fraud. Medicaid is a health insurance program for low-income adults, children, pregnant women, elderly adults, and people with disabilities, which is funded jointly by states and the federal government.
From at least in or about 2014 through at least in or about the present, the defendant received Medicaid benefits based on his false representations to HRA that he was financially eligible for Medicaid. During that time, the defendant represented to HRA that he worked at a company where his total income was approximately $150 a week – that is, approximately $600 a month or approximately $7,200 a year. In reality, the defendant made hundreds of thousands of dollars each year, thus, far exceeding the income and asset limitations for Medicaid eligibility. By lying about his income and assets, the defendant received at least approximately $47,621 in Medicaid benefits to which he was not entitled.
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FISHBEIN, 47, of Far Rockaway, New York, is charged with two counts of theft of government funds, in violation of Title 18, United States Code, Section 641, each of which carries a maximum sentence of 10 years in prison, one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of wire fraud, in violation of Title 18, United States Code, Section 1343, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of DOI.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner 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 below constitute only allegations, and every fact described should be treated as an allegation.
Previously Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Santos Nicolas Obando-Flores, age 48, of Brentwood, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography. Judge Messitte also ordered that, upon his release from prison, Obando-Flores must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In 2015, Obando-Flores was convicted of a sex offense after engaging in sexual contact with a nine-year-old minor and was sentenced to 20 years in prison with all but six years suspended.
The sentence 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 Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police (MSP).
According to his guilty plea, on September 13, 2018, Obando-Flores was being administered a routine polygraph examination by a Maryland State Police polygraph examiner. The routine polygraph was required because Obando-Flores was a registered sex offender. During the post-polygraph interview, Obando-Flores admitted to the polygraph examiner that he had viewed child pornography on his cellphone and that the pornography was still on the cellphone. Obando-Flores also admitted to having as many as one hundred videos containing child pornography on his phone.
The polygraph examiner stopped the interview and read Obando-Flores his Miranda Rights, which Obando-Flores acknowledged that he understood. Obando-Flores agreed to speak with law enforcement without an attorney present and again admitted to the MSP polygraph examiner that there was child pornography on his cellphone. He explained to the polygraph examiner that he got it from a Facebook page and that he received multiple videos of child pornography through a “group chat” from an application on his phone. Obando-Flores was able to describe some videos depicting prepubescent minors engaged in sex acts or provocatively posed. Obando-Flores admitted that he started getting the videos approximately six to eight months prior.
The polygraph examiner confiscated Obando-Flores’s cellphone, which Obando-Flores had brought with him to the scheduled meeting and Obando-Flores consented to the search of his phone. An MSP trooper previewed the phone and found numerous files of suspected child pornography. Obando-Flores was arrested and a federal search warrant was obtained from the phone. Forensic analysts identified approximately 359 videos and 200 images documenting the sexual abuse of minors.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Jonathan F. Lenzner commended HSI-Baltimore and the Maryland State Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Timothy F. Hagan, Jr. and Jennifer R. Sykes, who prosecuted the federal case.
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President of New York-Based Company Arrested for Conspiring to Violate U.S. Sanctions Against IranRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jonathan Carson, Special Agent in Charge of the New York Field Office of the U.S. Department of Commerce, Office of Export Enforcement (“DOC-OEE”), announced today the unsealing of charges against MICHAEL ROSE for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”), and participating in bank fraud and money laundering conspiracies. ROSE was arrested by the FBI and OEE today, and he will be presented later today in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Michael Rose participated in a years-long scheme to violate our sanctions by surreptitiously exporting cosmetics to Iran via front company intermediaries in the Middle East. Today’s charges underscore that those who violate our sanctions on Iran will be investigated and prosecuted.”
FBI Assistant Director William F. Sweeney Jr. said: “Whatever his motivation – greed or something more sinister – we allege Mr. Rose intentionally disguised his products’ ultimate destination and lied about those products’ prices to limit his customs liability. It’s a federal crime to violate sanctions the United States put in place to protect our national interests from Iran and other designated nation states. Mr. Rose may have thought the rules didn’t apply to him, but, if he did, today’s action demonstrates otherwise.”
DOC-OEE Special Agent in Charge Jonathan Carson said: “The Office of Export Enforcement will vigorously enforce sanctions violations involving Iran, including actions by exporters to undermine the integrity of our export control system through the submission of false or misleading information. The Office of Export Enforcement will continue applying the investigative resources and authorities necessary to protect and promote U.S. national security, foreign policy, and economic interests.”
According to the Indictment[1] unsealed today in Manhattan federal court:
MICHAEL ROSE is the president of a Long Island-based cosmetics manufacturer and supplier (“Company-1”). In that role, ROSE manages, among other things, Company-1’s operations and its international sales business. Between 2015 and 2018, ROSE participated in a conspiracy to evade U.S. sanctions on Iran by causing Company-1 to export from the United States more than $350,000 worth of cosmetics to an importer in Iran (“Importer-1”). In or about June 2015, ROSE signed a contract with Importer-1 establishing that Importer-1’s Iran-based company would be the exclusive distributor for Company-1’s products in Iran. Importer-1 then used front companies based outside Iran to make payments to Company-1 in New York and to arrange for the transshipment of Company-1’s goods to Iran via the United Arab Emirates. In addition to shipping goods and accepting payments in violation of U.S. sanctions, ROSE also filed false and misleading information on United States Department of Commerce Shipper’s Export Declaration forms in connection with the illegal shipments. The forms falsely represented that the “ultimate consignee” for the goods was in the United Arab Emirates, not Iran, and also falsely lowered the purchase price for the goods purchased by Importer-1 in order to evade customs payments.
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ROSE, 50, of Ridgefield, Connecticut, is charged in the Indictment with (1) conspiring to violate IEEPA, in violation of 50 U.S.C. § 1705, which carries a maximum sentence of 20 years in prison; (2) conspiring to launder money, in violation of 18 U.S.C. § 1956(h), which carries a maximum sentence of 20 years in prison; and (3) conspiring to commit bank fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 30 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding efforts of the FBI and the Department of Commerce’s Bureau of Industry and Security (“BIS”) for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution, with assistance from Trial Attorney Scott Claffee of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Pittsburgh Felon Sentenced for Illegally Possessing a PistolRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 18 months to be followed by three years of supervised release on his conviction for possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David Cercone imposed the sentence on Aaron Lyons, 26, of 617 Swissvale Avenue, Pittsburgh, PA 15221.
Previously, in connection with Lyons’ guilty plea, the court was advised that on November 19, 2019, Pittsburgh Police conducted a traffic stop in the East Liberty neighborhood of Pittsburgh of a vehicle in which Lyons was a traveling as a passenger. During the stop, officers conducted a pat down of Lyons for officer safety and felt a gun barrel in his jacket pocket. Following a scuffle resulting from Lyons’ failure to comply with officer instructions, a loaded .40 caliber Smith and Wesson pistol was recovered from him. Lyons had been convicted of four offenses in three different cases between 2014 and 2018. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police conducted the investigation leading to the successful prosecution of Lyons.
Pittsburgh Felon Charged with Illegal Possession of Crack Cocaine and FirearmsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The five-count superseding indictment named Michael Champion, age 44, as the sole defendant.
According to the Superseding Indictment, on April 14, 2017 and August 15, 2017, Champion possessed with the intent to distribute a quantity of cocaine base, commonly known as crack cocaine. Additionally, on April 14, 2017, Champion was in possession of numerous firearms, including an unregistered sawed-off shotgun, in furtherance of that drug trafficking crime. Champion is a convicted felon and prohibited by federal law from possessing any firearms.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police – Narcotics and Vice Division conducted the investigation leading to the Superseding Indictment in this case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Resident Charged with Fentanyl Trafficking OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury in Hartford returned an indictment today charging REGINO MORILLO-ESPINAL, 38, of Allentown, Pennsylvania, with possession with intent to distribute 400 grams or more of fentanyl.
As alleged in court documents, members of the Drug Enforcement Administration’s Hartford Task Force identified Morillo-Espinal as a trafficker of wholesale quantities of fentanyl. On March 26, 2021, investigators stopped Morillo-Espinal’s vehicle on I-91 South after he had traveled from Allentown to multiple locations in Hartford. A search of the vehicle revealed approximately two kilograms of suspected fentanyl.
The charge of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Morillo-Espinal has been detained since March 26, 2021.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The Connecticut State Police has assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Owner of Utah Trucking Companies Pleads Guilty to Role in FedEx Trucking Bribery Scheme Worth $24 Million and PPP Loan FraudRead the Press Release
SALT LAKE CITY – Hubert Ivan Ugarte, 52, of Draper, Utah, pleaded guilty for his role in two separate fraud schemes last week in federal court. Ugarte first pleaded guilty to charges related to a federal bribery case involving the procurement of FedEx Ground (FXG) contract shipping routes worth $24 million dollars of profit and also pleaded guilty to fraudulently obtaining a federal Paycheck Protection Program (PPP) loan for other trucking companies.
In the bribery case, Ugarte was convicted of fraud and money laundering charges for his involvement in a pay-to-play trucking scheme where prosecutors alleged that Ugarte was one of ten defendants who paid approximately $1 million in bribes to the Utah FXG Ground Hub manager in order to exploit the manager’s position with FedEx and make their trucking businesses as lucrative as possible.
In the plea agreement, Ugarte admitted to bribing the FXG senior linehaul manager, Ryan Lee Mower, with approximately $490,000 which netted Ugarte’s trucking companies over $24 million dollars during a seven-year period between 2012 and 2019. In exchange for the bribe payments, the FXG manager awarded Ugarte’s companies with several delivery routes from FXG that Ugarte would not have qualified for under FXG’s established policies.
In order to carry out the scheme, Ugarte and the FXG manager worked to obscure the ownership of Ugarte’s many trucking companies by filing false compliance reports with FXG in order to award Ugarte with more trucking routes than one business owner was entitled to under established FXG policies. As a result, Ugarte was allowed to operate at least 45 trucking routes originating from the Salt Lake FXG hub, greatly exceeding the FXG limit of only 15 trucks for the Salt Lake City hub. This practice, known as “over scaling” in the contract shipping industry, along with the payment of bribes to the FXG manager, would have resulted in the automatic termination of Ugarte’s contracts if discovered by authorities at FXG. Throughout the scheme, Ugarte’s companies received approximately $135,000,000 in gross payments from FXG, resulting in net profits to his trucking companies of approximately $24,000,000.
In the second case involving Paycheck Protection Program (PPP) loan fraud, Ugarte pleaded guilty to submitting a fraudulent loan application to the Small Business Administration (SBA) through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Ugarte admitted that he fraudulently obtained $210,000 in PPP loans after failing to disclose that he was under federal indictment for his role in the fraudulent trucking scheme.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $249 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding.
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 entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
On May 14, 2020, Ugarte received $210,000 from Transportation Alliance Bank under the PPP. Instead of using at least 75 percent of the loan to pay payroll costs, including bounced payroll checks, Ugarte used 60 percent of the loan to pay the past due truck payments – leaving 40 percent for payroll costs.
Sentencing is set for June 3, 2021, in both matters.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the cases against Ugarte. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Oneida County Man Sentenced to 57 Months for Possessing Firearms and Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK - Joseph W. Cromp, Sr., age 47, of Blossvale, New York, was sentenced today to serve 57 months in federal prison for possessing two firearms and over 100 rounds of ammunition as a convicted felon, announced Acting United States Antoinette T. Bacon , John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Acting New York State Police Superintendent Kevin P. Bruen.
As part of his previous guilty plea, Joseph W. Cromp, Sr. admitted that he possessed a Rohm .22 caliber revolver and an Izhmash SAIGA 7.62 x 39 mm AK-47 style semiautomatic rifle, as well as 113 rounds of rifle ammunition that were seized pursuant to a search warrant by New York State Police from the defendant’s home in Blossvale, New York, on October 2, 2019. Cromp was previously convicted of the felony offense of Attempted Assault in the Second Degree in Oneida County Court on February 9, 2001. The search warrant and subsequent seizure of the firearms and ammunition followed a confrontation Cromp had with another man earlier in the evening.
In addition to the prison sentence imposed today, Joseph W. Cromp, Sr. was also sentenced to serve a three-year term of supervised release after he completes his term of imprisonment. His sentence also includes his forfeiture of the two firearms and accompanying 113 rounds of ammunition.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New York State Police, and was prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Oneida County District Attorney’s office.
Prosecution of this case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ohio man indicted on wire fraud chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kenneth Werkau, of Clarington, Ohio, was indicted today on wire fraud charges, Acting United States Attorney Randolph J. Bernard announced.
Werkau, 63, was indicted today on three counts of “Wire Fraud.” Werkau was employed as an associate at Walmart in Moundsville. Beginning in September 2019 and ending in January 2020, Werkau is accused of stealing $123,775 in gift cards and activating them without paying for them.
Werkau faces up to 20 years of incarceration and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Dane DeMasi-Lemon is prosecuting the case on behalf of the government. The FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Rashaad Shadee Washington, of Pleasant City, Ohio, was indicted today on drug charges, Acting United States Attorney Randolph J. Bernard announced.
Washington, 37, was indicted on one count of “Distribution of Methamphetamine within 1000 Feet of a Protected Location” and two counts of “Distribution of Methamphetamine.” Washington is accused of selling methamphetamine, sometimes near McNinch Primary School, in Marshall County and Ohio County in February and March 2021.
Washington is facing at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for the protected location charge, and up to 20 years of incarceration and a fine of up to $1,000,000 for each of the distribution charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Northborough Nurse Charged with Tampering with Liquid MorphineRead the Press Release
BOSTON – A registered nurse was arrested yesterday in connection with tampering with morphine prescribed to a nursing home resident in her care.
Gwen Rider, 41, of Northborough, was indicted on one count of tampering with a consumer product and one count of obtaining a controlled substance by fraud and deception. Rider was released on conditions after making an initial appearance in federal court in Worcester yesterday afternoon.
According to the indictment, Rider was a registered nurse employed by a Worcester county nursing home. From approximately 11:00 p.m. on Nov. 6, 2020 until 7:00 a.m. the following morning, Rider was on duty in a unit specializing in care for residents suffering from dementia. During her shift and while entrusted with the care of a resident suffering from dementia, Rider allegedly tampered with a bottle of morphine sulfate prescribed to the patient by removing some of the morphine and tampering with the remaining supply. Morphine sulfate is a Schedule II controlled substance under federal law.
The charge of tampering with a consumer product provides for a sentence up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of obtaining a controlled substance by fraud and deception provides for a sentence of up to four years in prison, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and Monica Bharel MD, MPH, Commissioner of the Massachusetts Department of Public Health made the announcement today. Valuable assistance was also provided by the Northborough Police Department.
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.
Naples Man Charged with Child Exploitation Crimes Involving 13-year-old GirlRead the Press Release
Miami, Florida – South Florida federal prosecutors have charged 49-year-old Jeffrey Keith Holcombe in a criminal complaint that accuses him of coercing a 13-year-old girl from Miami into taking and sharing with him sexually explicit pictures and videos of herself.
The criminal complaint unsealed yesterday charges Holcombe with producing and attempting to produce child pornography and with transferring obscene material to a minor. The complaint affidavit makes the following allegations against Holcombe: Holcombe met the minor on an internet based social media application in approximately March 2020. During early exchanges, Holcombe sent the child a picture of a penis and she sent him nude pictures and videos of herself, some of which showed her face. When the minor told Holcombe that she would not send additional photographs or videos of herself, he responded: “No,” and, “you belong to me.” According to the allegations, Holcombe threatened the minor: If she did not continue to send sexually explicit images to him, he would sell those he already had of her online, make posters of her images and post them around the neighborhood where she lived, and would find her and her family.
Law enforcement was alerted to the conduct and an investigation led agents to Holcombe. Holcombe was arrested on Saturday, April 3, 2021 in Collier County, Florida. He made his initial appearance in federal district court in Fort Myers, Florida yesterday. Holcombe will be transferred to the Southern District of Florida for prosecution.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami, in particular, FBI Miami’s Child Exploitation Task Force, investigated the case. FBI Tampa and Collier County Sheriff’s Department assisted, as did the U.S. Attorney’s Office for the Middle District of Florida. The case is being prosecuted by Assistant U.S. Attorney Dayron Silverio of the Southern District of Florida.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
A criminal complaint contains allegations. A defendant is presumed innocent unless and until found guilty.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-mj-02598.
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McKeesport Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, pleaded guilty in federal court to a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Stephen R. Kaufman announced today.
Michael Brooks, age 54, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on March 25, 2020, in connection with the execution of a search warrant at his residence, Brooks was found in possession of more than 540 still images in computer graphics and digital files depicting the sexual exploitation of minors, many of whom were under the age of 12 years.
Judge Horan scheduled sentencing for July 27, 2021 at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Brooks remain on bond and that he immediately register in Pennsylvania as a sex offender under the provisions of the Sex Offender Registration and Notification Act (SORNA).
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Brooks.
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, 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.
Maryland Man Pleads Guilty to Federal Arson Charge for a 2017 Fire That Destroyed a Pasadena BarRead the Press Release
Baltimore, Maryland –Jamie Clemons, age 36 of Pasadena, Maryland, pleaded guilty today to malicious destruction of a property by fire, in connection with the fire on July 28, 2017, at Coconut Charlie’s, a bar in Pasadena. As a result of the arson, Coconut Charlie’s sustained over $500,000 in damage; the building was razed and the business was forced to permanently close.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; the Anne Arundel County Fire Chief Trisha L. Wolford; and the Anne Arundel County Fire Marshal Division Chief John Lane.
“This defendant not only caused devastating damage to a longtime Maryland business, he also endangered our brave firefighters who responded to the arson that he set,” said Acting U. S. Attorney Jonathan F. Lenzner. “I’d like to thank ATF and our partners in Anne Arundel County for their impressive investigative work in solving this arson. Arsons are often difficult crimes to uncover and prove in court, and I am grateful to our investigative and prosecution teams for their dedication and persistence.”
According to the indictment and the government’s plea letter, on July 28, 2017, Clemons maliciously damaged and destroyed by fire a bar known as Coconut Charlie’s, located in the 9100 block of Fort Smallwood Road in Pasadena, in order to conceal evidence of an assault he had committed there on July 22, 2017.
As detailed in the statement of facts filed as part of the government’s plea letter, on July 22, 2017, at approximately 1 a.m., Clemons assaulted his girlfriend on the patio area of Coconut Charlie’s. An Anne Arundel County Police officer witnessed the assault and it was also captured on Coconut Charlie’s video surveillance system. As a result, Clemons was charged with second degree assault and theft of less than $100 in the District Court for Anne Arundel County, and was served with a summons for the case on July 27, 2017.
Clemons admitted that in the early morning hours of July 28, 2017, Clemons assembled multiple incendiary devices akin to Molotov cocktails, then lit the wicks for the devices on fire, and threw them at the exterior of Coconut Charlie’s in an attempt to burn the structure and destroy the video surveillance system, which had captured his assault on his girlfriend the week prior.
Due to the size of the fire, several agencies responded in an attempt to control and extinguish the fire, and a firefighter sustained injuries due to the force of a backdraft that caused him to fall off a ladder. A fire scene examination was conducted, and the area of origin of the fire was determined to be the west exterior of the restaurant. Investigators reviewed the exterior camera footage from the video recording system, which remained operational after the fire, and were able to observe multiple flashes of light (at least three), followed by a sustained fire on the west exterior of the structure.
Charred melted plastic cups, which had been filled with gasoline, and a burnt cloth used as a wick material were located on the roof and exterior grounds of the building, and most were found to contain the presence of gasoline. Clemons admitted that he set the wicks on fire prior to throwing the devices on the roof. An accelerant detection K9 also alerted to the presence of gasoline on the west side of the exterior just on the other side of the fence surrounding Coconut Charlie’s. This is the area where Clemons launched the devices at Coconut Charlie’s. A short distance away, along the north side of the exterior of the property fence line, a glove was found which tested positive for the presence of an ignitable liquid and contained Clemons’ DNA.
On November 30, 2017, a federal search warrant was obtained for Clemons’ text messages on his cell phone. The contents of those messages revealed that after the assault and in the days leading up to the fire, Clemons sent multiple text messages expressing concern as to whether police would obtain the video surveillance of the assault, and what the video had captured.
Clemons faces a mandatory minimum of five years in federal prison and a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 13, 2021, at 1:30 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the Anne Arundel County Fire Department, and the Anne Arundel County Fire and Explosives Investigation Unit for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, who are prosecuting the case.
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Martinsburg man admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shane Lee Dirting, of Martinsburg West Virginia, has admitted to his role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Dirting, 54, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base.” Dirting admitted to working with others to distribute the drugs from October 2019 to April 2020 in Berkeley and Jefferson Counties.Dirting faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Mandan, ND, Man Sentenced to 4 years in Federal Prison for Bank Fraud and Interstate Transportation of Stolen LivestockRead the Press Release
Bismarck – Acting United States Attorney Nicholas W. Chase announced, on April 6, 2021, United States District Judge Daniel M. Traynor sentenced Kelly Anthony Glatt, age 39, of Mandan, ND, for the offenses of Bank Fraud and Interstate Transportation of Stolen Livestock. On October 13, 2020, after a multi-day trial, a federal jury found Glatt guilty of these offenses. The jury found Glatt not guilty of a single count of Interstate Sale of Stolen Livestock. Judge Traynor sentenced Glatt to serve 48 months’ imprisonment on the Bank Fraud charge and 36 months’ imprisonment on the Interstate Transportation of Stolen Livestock charge to run concurrent with one another; serve a three year term of supervised release on both counts to run concurrent with one another; pay $1,839,846.30 in restitution; and pay a $200 special assessment.
On February 20, 2014, Glatt, a rancher, took out a loan from a North Dakota financial institution in the amount of $1,500,000 to purchase cattle and livestock-related supplies. The financial institution obtained a security interest in the cattle, which were left in Glatt’s custody. Additionally, Glatt took custody of multiple other individuals’ cattle as either cattle caretaker, cattle manager, or cattle partner. Evidence introduced at trial demonstrated, between 2014 and 2017, Glatt took affirmative steps to hide collateral from the financial institution; hid assets from the financial institution and other victims; fraudulently filed an agricultural statutory lien in another person’s name with the intent to deprive the financial institution of future foreclosed funds; and finally, transported stolen cattle belonging to the financial institution and the other victims from North Dakota to South Dakota.
"The defendant took advantage of, and defrauded, both hard-working ranchers and a North Dakota financial institution," said Acting United States Attorney Nick Chase. "The United States Attorney's Office is committed to identifying, investigating, and prosecuting financial and agricultural based crimes."
This case was investigated by the Federal Bureau of Investigation, the North Dakota Stockmen’s Association, and the Morton County Sheriff’s Department, and was prosecuted by Assistant United States Attorneys Jonathan J. O’Konek and Eric Lundberg and Department of Justice Trial Attorney Joseph McFarlane.
This trial was completed during the COVID-19 pandemic and utilized COVID-19 safety protocols.
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Manchester Man Charged with Unlawfully Possessing FirearmsRead the Press Release
CONCORD - Raheem Taylor, 28, of Manchester, has been charged in federal court with unlawfully possessing firearms, Acting United States Attorney John J. Farley announced today.
According to court documents, Taylor was arrested on Friday following the execution of a search warrant in Manchester. He initially was charged in state court with the possession of firearms while being a convicted felon and possession of a controlled drug. Taylor has prior felony convictions that prohibit him from possessing firearms.
Taylor was taken into federal custody today and charged in a federal criminal complaint with unlawfully possessing firearms. Federal law prohibits convicted felons from possessing firearms. The complaint alleges that two handguns were seized from Taylor’s residence, including one with an extended high capacity magazine capable of holding 17 rounds of ammunition.
Taylor is scheduled to appear for a United States Magistrate Judge later today.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, New Hampshire State Police and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to 12 Years for Attempting to Purchase Chemical Weapon on the Dark WebRead the Press Release
WASHINGTON – A Missouri man was sentenced to 12 years in federal prison without parole today for attempting to purchase a chemical weapon, capable of killing hundreds of people, on the dark web with Bitcoin.
Jason William Siesser, 46, of Columbia, Mo., pleaded guilty to one count of attempting to acquire a chemical weapon and one count of aggravated identity theft on Aug. 4, 2020. According to court documents, Siesser admitted that he attempted to acquire a chemical weapon on two occasions between June 14 and Aug. 23, 2018. He provided a shipping address in the name of a juvenile, whose identity he used without authorization, to place the orders for a highly toxic chemical in amounts capable of killing many people. Siesser paid for the chemical weapon with the digital cryptocurrency known as Bitcoin.
Siesser ordered two 10 mL units of the chemical on July 4, 2018, and paid with Bitcoin. The seller did not ship the chemical weapon at that time. Siesser continued to contact the seller. On July 19, 2018, Siesser told the seller that, “I plan to use it soon after I receive it.”
Siesser ordered three 10 mL units of the chemical weapon on Aug. 5, 2018. Siesser again paid for the order with Bitcoin, the equivalent of $150, and provided a shipping address in the name of a juvenile. This quantity of the chemical weapon has the capacity to kill approximately 300 people.
A controlled delivery of a package that contained an inert substance was made to Siesser’s residence on Aug. 23, 2018. Siesser believed the package contained the chemical weapon he had ordered, signed for the package and took it inside the residence.
Law enforcement officers then executed a search warrant at Siesser’s residence. On top of a shelf in the garage, officers located the inert substance Siesser believed to be a chemical weapon. Officers also located two separate and seemingly unopened shipping boxes on the shelf next to it. They contained approximately 10 grams of cadmium arsenide, a toxic compound, which can be deadly if ingested or inhaled; approximately 100 grams of cadmium metal; and approximately 500 mL of hydrochloric acid. An invoice for these products showed they had been ordered together on March 30, 2018.
Writings located within the home articulated Siesser’s heartache, anger and resentment over a breakup, and a desire for the person who caused the heartache to die.
Supervisory Assistant U.S. Attorney Michael S. Oliver and Assistant U.S. Attorney Brian Casey prosecuted the case. The FBI with assistance from the Columbia Police Department investigated the case.
Man Facing Federal Charges for Enticement of a Minor and Possession of Child Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Derrell Lamar Hooker Orange (“Hooker Orange”) age 36, of Brandywine, Maryland, with enticement of a minor and possession of child pornography. The criminal complaint was filed on April 1, 2021 and unsealed at Hooker-Orange’s initial appearance on April 2, 2021.
The criminal complaint 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; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police and Sheriff Michelle Cook of Clay County Sherriff’s Office.
According to the affidavit filed in support of the criminal complaint, the Clay County Sheriff’s Office (“CCSO”) of Green Cove Springs, Florida, responded to a sex offense call in which an adult female discovered sexually explicit messages on her 12-year-old daughter’s cell phone. CCSO spoke with the victim at her residence and discovered the victim had been communicating with “Lamar Thompson” of Washington, whom she believed to be a 16-year old male, from approximately July 2020 through October 2020. The victim stated she met “Thompson” on a video creation application and continued to communicate with him, primarily through text message and cellular phone calls.
Based on reports by CCSO, CCSO observed sexually explicit text messages and images on the victim’s phone. With the adult female’s consent, the cell phone was placed into evidence at the CCSO. On October 22, 2020, the Clay County State’s Attorney allegedly received information that identified Hooker Orange as the subscriber who had been communicating with the victim.
The affidavit alleges that further review of text messages exchanged between Hooker Orange (allegedly posing as Lamar Thompson, a 16-year-old male) and the victim revealed that the minor victim not only disclosed her age to Hooker Orange but also informed him that she was attending junior high school at the time. Hooker Orange’s number was allegedly saved in the victim’s phone as “Bsf Forever.” According to the affidavit, Hooker Orange sent the victim sexually explicit messages and requested that the victim send him sexually explicit images and videos of herself.
The affidavit further alleges that Hooker Orange told the victim he wanted to see her and mentioned traveling to meet the underaged victim. The victim allegedly advised Hooker Orange that she would like to see him, but he’d have to “wait a few years”.
According to the affidavit, on March 16, 2021, law enforcement executed a search warrant at Hooker Orange’s residence, where he resides with two other individuals. Law enforcement seized Hooker Orange’s tablet and cellular telephone and interviewed the other residents. The other residents allegedly advised law enforcement that Hooker Orange was constantly on the phone with individuals whom they believed to be minors. Forensic review of Hooker Orange’s devices allegedly revealed images and videos of child pornography.
If convicted, Hooker Orange faces a mandatory minimum sentence of 10 years in federal prison and maximum of life in prison for enticement of a minor and a maximum of 20 years in prison for possession of child pornography. 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. Hooker Orange had a detention hearing in U.S. District Court in Greenbelt on April 5, 2021 and was ordered to be released under the supervision of U.S. Pretrial Services pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police, the Prince George County Police Department and the Clay County, Florida Sheriff’s Office for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Special Assistant U.S. Attorney Craig Fansler, who are prosecuting the federal case.
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Man Facing Federal Charges for Enticement of a Minor and Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Derrell Lamar Hooker Orange (“Hooker Orange”) age 36, of Brandywine, Maryland, with enticement of a minor and possession of child pornography. The criminal complaint was filed on April 1, 2021 and unsealed at Hooker-Orange’s initial appearance on April 2, 2021
The criminal complaint 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; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police and Sheriff Michelle Cook of Clay County Sherriff’s Office.
According to the affidavit filed in support of the criminal complaint, the Clay County Sheriff’s Office (“CCSO”) of Green Cove Springs, Florida, responded to a sex offense call in which an adult female discovered sexually explicit messages on her 12-year-old daughter’s cell phone. CCSO spoke with the victim at her residence and discovered the victim had been communicating with “Lamar Thompson” of Washington, whom she believed to be a 16-year old male, from approximately July 2020 through October 2020. The victim stated she met “Thompson” on a video creation application and continued to communicate with him, primarily through text message and cellular phone calls.
Based on reports by CCSO, CCSO observed sexually explicit text messages and images on the victim’s phone. With the adult female’s consent, the cell phone was placed into evidence at the CCSO. On October 22, 2020, the Clay County State’s Attorney allegedly received information that identified Hooker Orange as the subscriber who had been communicating with the victim.
The affidavit alleges that further review of text messages exchanged between Hooker Orange (allegedly posing as Lamar Thompson, a 16-year-old male) and the victim revealed that the minor victim not only disclosed her age to Hooker Orange but also informed him that she was attending junior high school at the time. Hooker Orange’s number was allegedly saved in the victim’s phone as “Bsf Forever.” According to the affidavit, Hooker Orange sent the victim sexually explicit messages and requested that the victim send him sexually explicit images and videos of herself.
The affidavit further alleges that Hooker Orange told the victim he wanted to see her and mentioned traveling to meet the underaged victim. The victim allegedly advised Hooker Orange that she would like to see him, but he’d have to “wait a few years”.
According to the affidavit, on March 16, 2021, law enforcement executed a search warrant at Hooker Orange’s residence, where he resides with two other individuals. Law enforcement seized Hooker Orange’s tablet and cellular telephone and interviewed the other residents. The other residents allegedly advised law enforcement that Hooker Orange was constantly on the phone with individuals whom they believed to be minors. Forensic review of Hooker Orange’s devices allegedly revealed images and videos of child pornography.
If convicted, Hooker Orange faces a mandatory minimum sentence of 10 years in federal prison and maximum of life in prison for enticement of a minor and a maximum of 20 years in prison for possession of child pornography. 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. Hooker Orange had a detention hearing in U.S. District Court in Greenbelt on April 5, 2021 and was ordered to be released under the supervision of U.S. Pretrial Services pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police, the Prince George County Police Department and the Clay County, Florida Sheriff’s Office for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Special Assistant U.S. Attorney Craig Fansler, who are prosecuting the federal case.
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Local Felon Charged with Illegal Possession of a FirearmRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on a charge of violating federal firearms law, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Tyler Goodnight, age 23, as the sole defendant.
According to the Indictment, on November 27, 2020, Goodnight was found to be in possession of a firearm. Goodnight is prohibited to possess a firearm due to a previous conviction.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kanawha County Man Faces up to Life in Prison After Pleading Guilty to Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to two federal gun crimes. Tevin Williams, 27, of Charleston, pled guilty to being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on June 5, 2019, Williams was driving on Rt. 60 in Belle when he was pulled over and removed from the car by law enforcement officers. A K-9 unit alerted to the presence of drugs in the car. During a search of his car, officers located a Ruger 9mm pistol, ammunition and a small black safe. Officers also located $2,293 in U.S. currency, over 100 empty plastic baggies and approximately 93 grams of methamphetamine. Williams admitted he was carrying the firearm to protect his drugs and cash.
On November 6, 2019, Williams traveled to a home in Putnam County and knocked on the door. After being turned away at the door, Williams turned around and fired three to four shots at the residence and then drove away. Nine days later on November 15, 2019, Williams was driving in South Charleston when he was pulled over and removed from the car by law enforcement officers. At that time, he was wearing two shoulder holsters. Officers located two firearms under the front seat of the car, both of which were Hi Point 9mm pistols. Williams is prohibited from possessing firearms as a result of his 2013 first degree robbery conviction in Kanawha County Circuit Court. The pistols seized from Williams on November 15 were examined at the West Virginia State Police Laboratory and one of those pistols was identified as matching one of the shell casings recovered by law enforcement from the Putnam County residence on November 6, 2019.
Williams faces at least five years and up to life in prison when sentenced on July 8, 2021.
“Excellent work by all the law enforcement agencies involved,” said Acting United States Attorney Lisa G. Johnston. “This conviction is the result of a joint investigation conducted by the South Charleston Police Department, the Putnam County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Belle Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).”
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00038 and 20-cr-00048.
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Jury Trial in Federal Court Ends with Guilty VerdictRead the Press Release
SHREVEPORT, La. – A federal jury in the Western District of Louisiana has returned a guilty verdict against Dale Wayne Green, Jr., 39, of Shreveport, on drug trafficking and firearms charges, announced Acting United States Attorney Alexander C. Van Hook. United States District Judge Donald E. Walter presided over the trial.
After a full day of trial testimony, the jury began their deliberations yesterday afternoon and came back with a verdict finding Green guilty of being a convicted felon in possession of a firearm and possession of cocaine with intent to distribute. Evidence presented at the trial revealed that on June 11, 2019, the Shreveport/Caddo Narcotics Task Force received information that illegal narcotics were being sold at a residence on Harrison Street in Shreveport. Law enforcement agents began conducting surveillance and observed multiple vehicles parked in and around the residence, as well as suspicious activity by individuals visiting the residence.
Law enforcement approached the residence and observed Green drop an item on the ground and walk away from the area to the rear of a vehicle in the driveway. Agents later discovered the dropped item to be cocaine in a sandwich bag which contained individually wrapped packaged bags containing cocaine. Green also had a large amount of cash and car keys in his pocket that went to a car parked across the street. A K-9 officer conducted a sniff search of the vehicle and the K-9 officer alerted to the presence of narcotics. Green gave consent to search the vehicle and agents found a loaded handgun in the console. Also found in the car were numerous personal documents belonging to Green. His previous felony conviction was for manslaughter in Caddo Parish in 2002. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
Green faces up to 20 years in prison and up to a $1,000,000 fine on the drug charge, and up to 10 years in prison and a $250,000 fine on the firearm charge. Sentencing is set for August 5, 2021 at 10:30 a.m.
The ATF, Shreveport Police Department and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Mike T. Shannon prosecuted 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. PSN is 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Judge sentences Sikeston man to 144 months for distribution of methamphetamineRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr. sentenced Jimmy Warf to 144 months in prison today. The 46-year-old Sikeston, Missouri, resident pleaded guilty to one count of distribution of methamphetamine in January.
On August 18, 2020, Warf sold 55 grams of methamphetamine to a DEA confidential informant at a parking lot in Cape Girardeau, Missouri and was arrested.
This case was investigated by the Drug Enforcement Administration, SEMO Drug Task Force and Cape Girardeau Police Department. Assistant United States Attorney Tim Willis handled the prosecution.
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Houston man sent to prison for hijacking interstate freight shipmentRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Houston man has been ordered to federal prison after stealing a large load of electronics originally set for delivery to a local college, announced Acting U.S. Attorney Jennifer B. Lowery.
Maksims Klopovs pleaded guilty Jan. 4.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Klopovs to serve a 30-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard Klopovs had entered the United States less than 60 days before his arrest. However, in that short time, he had already been involved in at least three similar freight hijackings in the Houston area. As part of the scheme, Klopovs created and used at least 12 fraudulent ID cards and rented multiple storage units to store the hijacked goods until they could be sold. The court determined the value of the goods involved in the four hijackings was in excess of $400,000. In handing down the sentence, Judge Ramos noted the extent and nature of the criminal conduct in this case justified the sentence.
“This individual brazenly hijacked an interstate freight shipment of computer and electronic equipment that was destined for students at a local university,” said Assistant Special Agent in Charge Brad Scott of Homeland Security Investigations (HSI). “Using the unique investigative authorities that HSI possesses we were able to disrupt his scheme and work with prosecutors to put him in federal prison.”
On June 17, 2019, authorities suspected a shipment of approximately $100,000 worth of computers and other electronics might be stolen. They were bound for Del Mar College in Corpus Christi.
After the shipment left the warehouse in Illinois, someone had changed the delivery instructions using an online system. Rather than deliver it directly to Del Mar College, the shipping company was asked to hold the load at their Corpus Christi warehouse for pickup.
Del Mar College did not request the change.
Klopovs arrived at the warehouse driving a rented U-Haul truck. He presented a fraudulent Texas driver’s license bearing his photo, but with the name Martin Smith. He also showed what was determined to be a fraudulent Del Mar College ID card with the title of Operations Manager also bearing his photograph and with the Smith name. He also had a Del Mar College business card in the name of Martin Smith.
Authorities arrested him after he claimed the shipment and began to load the electronics into the rental truck.
Klopovs has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Health Net Federal Services Pays over $97M for Overstated Billings to the VARead the Press Release
SACRAMENTO, Calif. — Health Net Federal Services LLC has paid $97,237,391 to resolve duplicate and inflated claims submitted to the Department of Veterans Affairs, Acting U.S. Attorney Phillip A. Talbert announced.
In 2013, Health Net entered a $5.05 billion contract with the VA under the Patient-Centered Community Care program, which offered private health care to veterans when VA facilities could not do so in a timely manner. The Veterans Access, Choice and Accountability Act of 2014 expanded the services to cover veterans who waited more than 30 days for care or lived more than 40 miles away from a VA medical facility. Under this contract, Health Net served as the third-party administrator that secured private health care for veterans, reimbursed these providers for services to veterans, and in turn billed the VA for the services.
In 2017, the VA Office of Inspector General (VA OIG) audited Health Net and found evidence suggesting the company had billed the VA for duplicate claims amounting to approximately $30 million and failed to reduce billings to the VA for approximately $1 million in provider rate savings, as contractually required. The ensuing investigation confirmed the conduct, and Health Net ultimately repaid $93,682,428 in overpayments, as well as $3,554,963 in interest.
“Providers must be held to the highest standard of care and must rigorously comply with their contractual obligations,” said Acting U.S. Attorney Talbert. “This office is committed to assisting the VA and other agencies of the United States to ensure the integrity of important federal programs, such as those reimbursed by this settlement that will help our veterans.”
“The VA Office of Inspector General is strongly committed to promoting fiscal accountability throughout VA,” said VA Inspector General Michael J. Missal. “This settlement will return funds to VA programs and services that directly benefit our nation’s veterans. I applaud the teamwork and dedication that led to this significant recovery.”
This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California and the Civil Division’s Commercial Litigation Branch, with help from the Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Harrison County woman admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amber Ramos, of Hepzibah, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Ramos, also known as “Amber Finch,” 32, pleaded guilty today to one count of “Distribution of Methamphetamine.” Ramos admitted to selling methamphetamine in July 2018 in Harrison County.
Ramos is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harper Woods Man Using Prosthetic Facemasks Pleads Guilty to Wire and Identity FraudRead the Press Release
A Harper Woods man, who wore prosthetic facemasks to hide his identity, pleaded guilty today to wire fraud and identity fraud in a scheme to defraud and obtain money from the accounts of Global Payments Gaming Services Inc. (GPGS)’s VIP Preferred Program patrons, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
John Christopher Colletti, 56, entered his guilty plea before United States District Judge Linda V. Parker in United States District Court in Detroit this afternoon.
“This defendant went to extraordinary lengths to hide his identity in order to steal others identities and money,” stated Acting US Attorney Mohsin. “I commend the work of the FBI agents for tracking Colletti down and helping bring him to justice.”"John Colletti stole the identities of dozens of innocent people, dragging them all into his criminal scheme," said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “The impacts of identity theft are serious and far-reaching for victims, and the FBI will work hard to ensure anyone who engages in this type of conduct is held accountable.”
According to court records, in or around April 26, 2019, and continuing through March 12, 2020, Colletti, with the intent to defraud, unlawfully accessed accounts in the names of several individual victims using GPGS’s kiosks located within various casino properties in at least two states, including the MGM Grand in Detroit. Colletti used names, driver’s license numbers, and the last four digits of Social Security Numbers assigned to known individuals in order to access one or more account in those individuals’ names. Upon gaining access to these accounts, Colletti initiated numerous transactions, withdrawing thousands of dollars from these accounts. Colletti made these withdrawals with both the intent to defraud and knowledge of the fact that he was not entitled to the money in the victims’ accounts. Further, in making these withdrawals, Colletti attempted to disguise himself by wearing one or more full prosthetic facemasks. Colletti defrauded his victims out of approximately $125,740.00 dollars.
Colletti had in his possession pieces of personally identifiable information (PII) for approximately 300 identities, as well as several full prosthetic facemasks.
GPGS assumed the loss on behalf of its VIP Preferred Program patrons, who were the individual victims. As part of his guilty plea, Colletti will be required to pay restitution to GPGS in the full amount of $125,740.00.
Colletti faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud and a mandatory minimum sentence of 2 years imprisonment on the charge of identity fraud.
Colletti will be sentenced on July 7, 2021, at 11:00AM.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ryan Particka.
Fultondale Doctor, Demopolis Pharmacist, Tuscaloosa Sales Representative Sentenced in Health Care Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A Tuscaloosa pharmaceutical sales representative was sentenced yesterday after pleading guilty to conspiracy to commit mail fraud in a scheme designed to fraudulently bill health insurance plans, announced U.S. Attorney Prim F. Escalona, DEA Assistant Special Agent in Charge Towanda R. Thorne-James, and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Annemarie C. Axon sentenced Brett Taft, 47, of Tuscaloosa, Ala., to 12 months in prison and 6 months of home detention and ordered him to pay a fine of $1,000 and restitution of approximately $2.2 million. Taft was the owner and sole member of the sales company BTAFT Medical, LLC. He pleaded guilty to one count of conspiracy to commit mail fraud related to a June 2019 Superseding Indictment involving Paul Roberts, M.D., of Fultondale, and pharmacist Stanley Reeves of Demopolis.
“This case is another unfortunate example of some in the medical field putting greed over patients’ welfare,” said U.S. Attorney Escalona. “We thank the many medical professionals who place patient health and ethical integrity first and will continue to prosecute those who instead choose to engage in criminal conduct for financial gain.”
“The FBI and our partners will continue to work tirelessly to ensure public and private health care dollars are used as intended, to promote the health and safety of all Americans and safeguard continued access to critical health care services,” FBI SAC Sharp said.
According to his plea agreement, Taft, along with Reeves, owner of F&F Drugs in Demopolis, and Roberts, a physician and co-owner of Southeast Urgent Care in Fultondale, participated in a scheme to fraudulently bill health insurance plans for medically unnecessary compounded drugs. To induce Roberts to issue prescriptions for these medically unnecessary drugs, Taft provided Roberts with pre-written prescription forms for the compounded drug recipes. Roberts then issued the prescriptions, sometimes without patients’ knowledge, and sent them to F&F Drugs, which then filled the prescriptions and billed the cost to health insurance plans. Reeves would then pay Taft a portion of the billing proceeds from these insurance plans, with Taft using some of those proceeds to make payments to Roberts. In addition, as part of the conspiracy and to induce patients to accept these medically unnecessary drugs, F&F Drugs would waive patient co-pays in violation of the health insurance plan rules. To maximize profit from each prescription, the co-defendants agreed that F&F Drugs would automatically refill the compounded drugs that Roberts referred regardless of whether patients needed those drugs. Between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $2.2 million for medically unnecessary compounded drugs issued as part of the conspiracy.
Roberts and Reeves previously pleaded guilty and were both sentenced in September 2020. Roberts pleaded guilty to 12 counts of prescribing controlled substances without a legitimate medical purpose, two counts of health care fraud conspiracy, and two counts of participating in a health care fraud scheme. Roberts stipulated to a 72-month sentence and agreed to surrender his Alabama medical license. He also agreed to pay a fine of $100,000 and restitution of $2.2 million.
Reeves pleaded guilty to one count of conspiring to commit the above-described compounded drug health care fraud scheme. According to his plea agreement, between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $10.5 million for medically unnecessary compounded drugs issued by various doctors, including those issued under the scheme involving Taft and Roberts. Reeves received a 38-month sentence and agreed to surrender his pharmacist license to the Alabama Board of Pharmacy. He also agreed to pay a fine of $100,000, restitution of $10.5 million, and forfeiture of $900,000 with $300,000 due on the date he was sentenced.
FBI and DEA investigated the cases, which Assistant U.S. Attorneys Lloyd C. Peeples, Austin Shutt, Kristen Osborne, and former AUSA Chinelo Dike-Minor prosecuted.