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6 April 2021
Fredonia Man Going to Prison for Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nathaniel Gates, Jr, 47, of Fredonia, NY, who was convicted of possessing with intent to distribute, and distributing, 28 grams or more of crack cocaine, was sentenced to serve 84 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Seth T. Molisani and Charles E. Watkins, who handled the case, stated that in April 2015, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration began investigating the drug trafficking activities of the defendant in Chautauqua County, NY. During the investigation, investigators made three controlled purchases of narcotics from Gates. Investigators also executed a search warrant at the defendant’s Brigham Road apartment in Fredonia and recovered illegal narcotics and items commonly used in drug distribution.
The sentencing is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of the Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Four local individuals charged in separate pandemic relief fraud schemesRead the Press Release
CINCINNATI – Four local individuals have been charged federally with defrauding COVID-19 pandemic relief funding programs. In separate cases, the four are alleged to have lied about owning businesses and employing others. Some defendants allegedly applied multiple times for relief funding and some allegedly spent the funding they received on lavish personal items and vacation travel.
Kelli Prather, 48, of Cincinnati, appeared in federal court in Cincinnati this afternoon. According to court documents, she applied for six Paycheck Protection Program (PPP) loans as part of the CARES Act COVID-19 pandemic relief.
Prather allegedly purported to be the owner of six businesses – Enhanced Healthcare Solutions, Life Skills Enhancement, Prather Property Management, Reliable Ambulette Services, Rich Glo Management Services and Tots R Us. It is alleged that the bank discovered a number of errors with Prather’s loan applications and also identified that there were six different, pending applications.
According to the criminal complaint, Prather sought more than $600,000 in fraud relief and fraudulently received approximately $19,800.
She is charged with bank fraud (up to 30 years in prison), aggravated identity theft (at least two years in prison consecutive to any other sentence imposed), making false statements (up to five years in prison), making false statements in connection to credit or loan applications (up to 30 years in prison) and false representation of a social security number (up to five years in prison).
Toni Wright, 34, of Cincinnati, allegedly received $349,000 in fraudulent PPP relief loans. Court documents say she made false statements as the purported sole owner of Poshedbar (a hair and nail salon), Beautiful Beginnings Doula Service and Jerry’s Electronics.
Wright allegedly used the same Employer Identification Number for more than one of the purported businesses and listed residential addresses as the business locations. She allegedly submitted numerous applications despite being denied initially.
The criminal complaint filed against Wright claims she used the PPP funds for various personal purchases, such as to restaurants through Door Dash, retail establishments including Michael Kors, Louis Vuitton, Kay Jewelers and vacation activities like King’s Island, Luxury Rentals Miami, and American Airlines. Wright also allegedly spend more than $10,000 of relief funds at Sono Bello, a facility that advertises laser liposuction and body contouring.
Wright is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison), making false statements in connection to credit or loan applications (up to 30 years in prison) and false representation of a social security number (up to five years in prison).
Melissa McGhee, 37, of Cincinnati, was arrested last night by Sycamore Township Police officers. McGhee, also known as Melissa Batton, came to the attention of law enforcement when she allegedly lied regarding an FHA loan for a new home. Through this investigation, agents discovered McGhee had allegedly applied for seven different pandemic relief loans and received three.
Court documents specify that McGhee used the business names M&MM Realty Group and M&M Realty Group to submit the fraudulent applications.
McGhee allegedly received $186,000 in fraudulent relief funds, which she used, in part, to purchase real estate.
She is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison) and making false statements in connection to credit or loan applications (up to 30 years in prison).
Jon Alan Bader, 50, of Dayton, allegedly received more than $120,000 in fraudulent pandemic relief funds by lying on applications. Bader allegedly registered the business JB Auto Wholesale, LLC with the state of Ohio via LegalZoom in June 2020, after the cutoff eligibility date for the loans.
An affidavit filed in support of the criminal complaint says Bader spent the relief money on various food deliveries through Door Dash, transportation through Uber, and purchases that appear to be for travel in Indiana, Kentucky and Florida. Bader allegedly made purchases at various retail stores such as Puma, Lacoste and Saks, and paid for travel in Sarasota, Florida. Bank records indicate Bader was spending between $55,000 and $67,000 in the summer of 2020.
He is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison) and making false statements in connection to credit or loan applications (up to 30 years in prison).
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, Cincinnati Field Office; and Wayland Quon, Acting Special Agent-in-Charge, Social Security Administration Office of Inspector General, Chicago Field Division, announced the charges. Assistant United States Attorneys Ebunoluwa Taiwo and Anthony Springer are representing the United States in these cases. The four cases have been investigated by members of the Financial Crimes Working Group Pandemic Fraud Committee.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Latin Kings East Coast Leader Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – The former East Coast leader of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering and drug charges.
Michael Cecchetelli, a/k/a “King Merlin, 41, of Springfield, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 8, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
As stated during the plea hearing, Cecchetelli led the Latin Kings’ criminal activity in the Eastern Region and held the title of Supreme Regional Overseer for the East Coast. Cecchetelli is the conduit between each of the Eastern Region states and the Latin Kings national leadership in Chicago. In this position, thousands of Latin Kings members fell under his authority. Cecchetelli developed a leadership approach to the gang which became a model for other Latin Kings regions across the country. Cecchetelli also organized conspiracies to murder two members of the Latin Kings who accused him of cooperating with law enforcement.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Cecchetelli is the 43rd defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Ft. Bragg Private Sentenced to More Than 12 Years After Taking 12-Year-Old “Girlfriend” Across State Lines in Fake KidnappingRead the Press Release
NEW BERN, N.C. – A South Carolina man was sentenced today to 151 months in prison for transportation of a minor with intent to engage in criminal sexual activity.
According to court documents and statements made during hearings, on the morning of October 21, 2018, a New Bern woman found that her 12-year-old granddaughter was missing from the child’s bedroom. The window was open, and a hand-written ransom note demanded $20,000 for her return. Investigators found mulch from a flower bed on the granddaughter’s bed and smudges on the window but no sign of forced entry. They reviewed the granddaughter’s Facebook account and found a page that identified the defendant James Murdoch Peele as a boyfriend.
The Federal Bureau of Investigation (FBI) determined that Peele was enlisted in the US Army and stationed at Ft. Bragg. They traced him to a barracks room, where the same afternoon they found Peele together with the minor victim. A forensic examination confirmed that Peele had recently had sexual intercourse with the minor.
Law enforcement interviewed a friend of Peele’s, also a soldier stationed at Ft. Bragg. The friend described how a week before the apparent kidnapping, Peele had asked for a ride to his “girlfriend’s” house in New Bern. Peele had shown a photo of the victim and claimed that she was 18 years old. When they arrived, however, Peele instructed the friend to park at a vacant neighboring house, and Peele entered the home through a window. The friend also entered the room and became concerned about the girl’s age after noticing childlike décor, including middle school photographs and a hamster. The friend explained to investigators that he had become disgusted and left the room when Peele and the minor began kissing.
Investigators determined that on the morning of October 21, after leaving New Bern, Peele drove the minor victim to his parents’ home in South Carolina. During a brief stay, he introduced the 12-year-old to his parents as his girlfriend and claimed that she worked in a sewing shop. They stayed for less than a half-hour before Peele’s sergeant called and Peele had to return to base.
Back at Fort Bragg, Peele’s barracks roommate was present when Peele arrived with the minor shortly before noon. As the roommate later recounted to investigators, the minor stayed in the room as Peele left to meet his sergeant. Later, Peele returned and asked his roommate to turn up his music, which the roommate understood to mean that Peele planned to have sex with the girl behind a sheet that had been hung across the room for privacy. The roommate left, and the FBI arrived soon after.
During a forensic interview, the minor victim stated that she and Peele had been involved in a sexual relationship. She had told Peele her true age, and he responded that age is just a number. She admitted that she had not been kidnapped but denied coming up with the idea to stage a kidnapping.
After his arrest, Peele made a videotaped confession. He admitted to having sexual intercourse with the minor victim. He also admitted to writing the ransom note, although he stated that the victim had asked to leave with him and had come up with the idea of staging a kidnapping. Peele claimed that he believed the victim was 18 years old, but he admitted that he saw her at a sleepover with friends who looked very young, including one girl whose age he had seen to be 12 years old.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Craven County Sheriff’s Office and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jake D. Pugh and Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-0096-FL.
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Former Cold Spring Public Official and Teacher Sentenced to 5 Years in Prison for Attempted Receipt of Child Pornography from Former StudentRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CHARLES HUSTIS, a former town trustee and substitute teacher in Cold Spring, New York, was sentenced to five years in prison for attempted receipt of child pornography from a former student. CHARLES HUSTIS previously pled guilty before U.S. District Judge Cathy Seibel, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Charles Hustis used his social media account to persuade a minor victim and former student to meet with him and perform sexual acts. In doing so, Charles Hustis repeatedly solicited pornographic pictures from the victim. This predatory behavior was a betrayal of the trust that the Cold Spring community placed in Charles Hustis, both as a former teacher and as a public official. Today, he has been sentenced to federal prison. Our Office will continue to work with our law enforcement partners at all levels of government to keep our children safe.”
According to the Information, other court filings (including the complaint), and statements made during court proceedings:
Between at least on or about December 8, 2019, and December 16, 2019, HUSTIS, a former teacher and public official in Cold Spring, New York, communicated over Facebook Messenger with a 16-year-old victim (“Victim-1”). During these communications, HUSTIS sent Victim-1 sexual images, including photographs of himself, and attempted to arrange a meeting with Victim-1 with the understanding that HUSTIS and Victim-1 would perform various sexual acts. HUSTIS repeatedly solicited pornographic pictures from Victim-1 while arranging his planned meeting. HUSTIS was arrested by law enforcement officers on December 16, 2019, after he arrived at a meeting location that he had arranged with Victim-1, expecting to bring Victim-1 back to his apartment for sexual activity.
In addition to the prison term, CHARLES HUSTIS, 37, of Cold Spring, New York, was sentenced to seven years of supervised release. On November 19, 2020, HUSTIS pled guilty to one count of attempted receipt of child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and (b)(1).
Ms. Strauss praised the outstanding investigative work of the FBI, the Putnam County Sheriff’s Department, and the Cold Spring Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
Former Business Administrator at Westminster Presbyterian Church Sentenced on Tax ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court in Pittsburgh to 30 months in prison and ordered to pay restitution of $1,407,649 to the Internal Revenue Service on charges of tax fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on David Reiter, age 52, currently serving a state sentence of five to 10 years in prison. The federal sentence will be served concurrently with his state sentence.
According to the information provided to the court, beginning in and around 2011, until his termination from employment in 2018, Reiter as business administrator at Westminster Presbyterian Church located in Upper St. Clair, PA, engaged in a pattern of deception and fraud by regularly embezzling and converting to his personal use $1.2 million in funds belonging to church. The court was further informed that Reiter failed to pay over employment taxes and filed false personal income tax returns relating to the embezzlement, which materially underreported his personal income.
"David Reiter embezzled more than a million dollars of church funds and used them for his own benefit, all the while committing business and personal tax fraud," said U.S. Attorney Kaufman. "Federal tax law violations have serious consequences, which we have witnessed today."
"In his role as the Church’s Business Administrator, Mr. Reiter abused his position of power by embezzling funds that could have otherwise been used by the Church to carry out their mission", said Thomas Fattorusso, Special Agent in Charge of IRS-Criminal Investigation . "By fraudulently failing to report the embezzled funds on his personal tax returns as income, Mr. Reiter violated a fundamental rule of taxes which states that gross income means all income from whatever source derived. Mr. Reiter also committed the crime of failing to pay over the employment taxes that were withheld from the employees of the Church, which is a serious offense that results in the lack of significant tax revenue to the Unites States government. IRS-CI will continue to pursue anyone who collects employment taxes and fails to remit those taxes."
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the prosecution of David Reiter.
Florida Counseling Center Owner and Provider Convicted of Medicaid Fraud, Conspiracy, False Statements, and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, today announced the convictions of Stephanie Lynn Fleming, 42, and Helen Elizabeth Storey, 37, both of Waldorf, Maryland, and both formerly of Tallahassee, Florida. Both defendants were found guilty of health care fraud conspiracy, health care fraud, and aggravated identity theft. Fleming was also found guilty of making false statements in connection to health care matters. The convictions came yesterday after a 3-day federal bench trial that involved testimony from more than 15 witnesses and over 125 exhibits introduced into evidence.
“These convictions demonstrate that the United States Attorney’s Office is committed to aggressively and diligently prosecuting those who commit healthcare fraud,” said Acting U.S. Attorney Coody. “The concerted and cooperative effort of our federal and state law enforcement partners was critical to bringing these defendants to justice. We will continue to work toward our common goals of protecting our community members and preserving the integrity of our federally-funded healthcare programs.”
Storey owned and operated North Florida Mental Health (NFMH), a Tallahassee-based counseling center, and employed Fleming as a licensed mental health counselor. Evidence presented in court showed that between April 15, 2016 and December 31, 2017, Storey and Fleming improperly obtained, or attempted to obtain, more than $250,000 from Florida Medicaid by submitting fraudulent claims through NFMH.
“Convicted fraudsters Storey and Fleming fraudulently billed the Medicaid program for bogus claims. The pair ignored an exclusion from all federal health care programs, thus stealing from this taxpayer-funded safety net program that is designed to provide legitimate health services to vulnerable patients,” said Special Agent in Charge Omar Pérez Aybar. “Our investigators will continue to aggressively investigate such bad actors to hold them accountable and to send a warning to others tempted to loot from federal health care programs.”
Fleming, who provided psychotherapy, psychiatric diagnostic evaluations, and therapeutic behavioral services to patients of NFMH, agreed to a five-year debarment from participating in any state Medicaid program as a result of a 2016 felony conviction involving Medicaid fraud in the state of New Jersey. Evidence presented in court proved that Fleming falsely claimed on an application to become a Florida Medicaid provider that she had not been convicted of, or pled guilty or no contest to, a felony. Additional evidence demonstrated that Storey knew of Fleming’s conviction and debarment, and that Fleming was therefore ineligible to participate as a Florida Medicaid provider.
During the trial, evidence showed that Fleming caused to be submitted – and that Storey submitted – multiple fraudulent Medicare claims by means of aggravated identity theft. In doing so, some of the false Medicare claims reflected that another eligible and licensed NFMH therapist performed services that, in reality, were provided by Fleming during the period of time that she was under debarment from participation in any state Medicaid program. The court heard evidence of additional instances in which the names and personal identification information of NFMH patients, many of whom were children, were used to submit fictitious Medicare claims for services that were not performed at all.
“These convicted criminals defrauded the Florida Medicaid program out of approximately a quarter of a million dollars,” said Florida Attorney General Ashley Moody. “They fled to Maryland, but through great investigative work by my Medicaid Fraud Control Unit and collaboration with federal officials, they were brought back to Florida to answer for their crimes—and today were found guilty on a myriad of charges. I look forward to seeing this criminal duo sentenced.”
Both defendants face a maximum sentence of 20 years in prison for conspiracy to commit health care fraud and 10 years in prison for each of the health care fraud convictions. They both also face 2 years in prison as a mandatory minimum sentence, consecutive to any other sentence imposed, for each count of aggravated identity theft. Fleming’s conviction for making false statements in connection to health care matters carries a maximum sentence of 5 years in prison. Sentencing is scheduled for August 20, 2021, at 1:30 p.m. at the United States Courthouse in Tallahassee.
Assistant United States Attorney Justin M. Keen prosecuted the case, which was jointly investigated by the Department of Health and Human Services - Office of Inspector General and the Florida Attorney General Office’s Medicaid Fraud Control Unit.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Storey and FlemingFive Jackson Men Sentenced to Federal Prison for Hobbs Act RobberiesRead the Press Release
Jackson, Miss – Five Jackson men have been sentenced to federal prison by U.S. District Judge Henry T. Wingate for their roles in multiple Hobbs Act Robberies committed in the Jackson area, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Jackson Federal Bureau of Investigation.
Joshua Cowards, Christopher Delaney, Cortez Kyles, Tyreik Lackey and Marquarius Rogers were indicted by a federal grand jury on November 27, 2018 for armed robberies of three Jackson businesses. The businesses robbed by the men were Community Choice Financial, Speedee Cash, and Dollar General. All five men were detained without bond pending trial. Four pleaded guilty and one was found guilty by a jury.
On April 2, 2021, Cortez Kyles, 25, was sentenced by Judge Wingate to serve 14 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in one of the armed robberies.
On March 12, 2021, Tyreik Lackey, 24, was sentenced by Judge Wingate to serve 10 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in one of the armed robberies.
On March 12, 2021, Marquarius Rogers, 20, was sentenced by Judge Wingate to serve 17 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in one of the armed robberies.
On March 11, 2021, Christopher Delaney, 24, was sentenced by Judge Wingate to serve 23 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in the armed robberies.
On May 11, 2020, Joshua Cowards, 29, was sentence by Judge Wingate to serve 15 years in federal prison, followed by 5 years of supervised release, after a jury found him guilty of his role in one of the armed robberies.
In addition, Judge Wingate ordered the men to pay restitution totaling more than $85,000.00.
The armed robberies, coordinated by Delaney, occurred in August and September 2018. Delaney provided transportation to each robbery and served as a look-out while monitoring police radio traffic during the robberies. While Delaney served as the look-out, others went inside of the businesses. Those who went inside of the businesses were armed and held employees at gun point. During one of the robberies, an employee was injured when dragged across the floor. In another robbery, one of the men pointed a handgun at a Jackson police officer.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry, and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Federal Jury Convicts West Texas Man of Child Pornography CrimesRead the Press Release
A federal jury has convicted a Muleshoe, Texas man of child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After approximately forty minutes of deliberation, a federal jury on Tuesday found 25-year-old Felipe Mata-Benavidez guilty of production of child pornography.
According to evidence presented at trial, Mr. Mata-Benavidez attempted to sexually assault an 11-year-old relative at her home in Muleshoe. During the assault, the victim’s mother walked in on Mr. Mata-Benavidez attempting to have sexual intercourse with minor.
The young girl’s mother stopped the assault and fled the residence with her young daughter. A short time later, a concerned neighbor notified law enforcement after hearing about the incident.
The Muleshoe Police Department interviewed Mr. Mata-Benavidez after receiving a report that he had attempted to sexually assaulted the 11-year-old girl. During an interview Mr. Mata-Benavidez, he showed detectives his cell phone, which contained his messages with the girl.
In those messages, Mr. Mata-Benavidez told the 11-year-old to send him explicit photographs of herself. When she refused, Mr. Mata-Benavidez bullied the girl until she conceded, texting Mr. Mata-Benavidez a lewd and lascivious image. He then commented saying the girl was beautiful and telling the her not to “share with anybody else… because it’s mine.” Mr. Mata-Benavidez then continued to ask for the 11-year-old to send more explicit images.
Mr. Mata-Benavidez now faces up to 30 years in federal prison. A sentencing hearing has been set for July 8, 2021.
The Federal Bureau of Investigation Lubbock Resident Agency, the Muleshoe Police Department, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Matthew McLeod prosecuted the case. U.S. District Judge James Wesley Hendrix presided over the trial.
Fayette County Resident Indicted on Drug ChargeRead the Press Release
PITTSBURGH, PA – A resident of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Kwame Eddings, 41, formerly of Republic, PA 15475, as the sole defendant.
According to Indictment, on or about March 17, 2021, Kwame Eddings possessed with the intent to distribute 28 grams or more of cocaine base and a quantity of heroin.
At each count, the law provides for a maximum total sentence of not less than five years to a maximum of 40 years in prison, a fine of not more than $5,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Export, PA Man Pleads Guilty in IRS Impersonation Fraud SchemeRead the Press Release
PITTSBURGH, PA – A resident of Westmoreland County, Pennsylvania, pleaded guilty to one count of conspiracy to commit wire fraud, Acting U.S. Attorney Stephen R. Kaufman announced today.
Michael Galanis, 32, of Export, Pennsylvania, pleaded guilty before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that from in or around March 2016 to in or around August 2017, Galanis participated in an IRS impersonation fraud conspiracy. The IRS impersonation fraud scheme involved call centers located in India that would use phone numbers to make their calls appear to originate in the United States. The calls would provide recorded information to individuals in the United States and fraudulently claim that the call was from the IRS concerning the individual’s failure to pay taxes. The call would provide a U.S.-based telephone number for the individual to call in order to resolve the matter. Calls to these U.S.-based telephone numbers would be automatically forwarded to call centers in India, and those who answered would tell callers that they owed money to the IRS and demand immediate payment via gift card or other means.
The court was further advised that Galanis was involved in activating cell phones in the United States to assist in this fraud scheme. Galanis knew that the cell phones that he programmed were used for a fraud scheme. At all times, Galanis activated these cell phones in the Western District of Pennsylvania. The government estimated that the total loss in this case is between $150,000 and $250,000.
Judge Haines scheduled sentencing for August 13, 2021. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The matter was investigated by United States Treasury Inspector General for Tax Administration, United States Department of Homeland Security, and the United States Postal Inspection Service.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
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Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national previously residing in Malden was sentenced today in federal court in Boston for passport fraud.
Jairo Antonio Feliz, 35, was sentenced by U.S. District Court Judge Douglas P. Woodlock to six months in prison and three years of supervised release. Feliz will face deportation proceedings upon completion of his sentence. In December 2020, Feliz pleaded guilty to two counts of making a false statement in a passport application.
In November 2011, Feliz applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a U.S. citizen. In October 2012, Feliz again applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a different U.S. citizen.
Acting United States Attorney Nathaniel R. Mendell and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Division made the announcement. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, and Assistant U.S. Attorney Charles Dell’Anno prosecuted the case.
Deputy constable arrested on drug and money laundering chargesRead the Press Release
HOUSTON – A Harris County deputy constable has been charged with conspiring with his girlfriend to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a three-count indictment April 1 against Alexsander S. Reyes, 47, and his girlfriend, Priscilla Yvette Cervantes, 44, both of Huffman. They were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Andrew M. Edison tomorrow at 2 p.m.
The indictment alleges Reyes laundered what he believed was $350,000 in drug proceeds over a four-month-period. At the time of the offense, Reyes was a deputy constable with Harris County Precinct 1 Constable’s Office.
Reyes and his girlfriend are charged with one count of conspiracy to possess with the intent to distribute cocaine. If convicted, they face a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine. Reyes also faces up to 20 years if convicted of either of the two counts of money laundering.
The FBI conducted the investigation with Harris County Constable Precinct 1 as part of the FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Dajuan Williams and Multiple Others Charged in Nationwide Drug and Money Laundering ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on December 3, 2020, a federal grand jury returned a sixteen-count indictment charging (1) eight people with conspiracy to distribute controlled substances between September 2019 and November 2020 and (2) five people with conspiracy to launder monetary instruments. Dajuan Williams, 28, of Detroit, Michigan, is the lead defendant in the indictment. As of April 6, 2021, seven of the eight charged individuals have been arraigned in federal district court in Vermont.
In the drug conspiracy, in addition to Dajuan Williams, the government charged Mohamed Luhizo, 23; Jaylinn Lenoir, 22; Stephen Alexander, 31; Rendell Perkins, 21; Jessica Elwell, 30; Juwon Robinson, 26; and another defendant who remains a fugitive. In the money laundering conspiracy, the government charged Williams, Elwell, Luhizo, Alexander, and another defendant who remains a fugitive. The indictment also contains two forfeiture notices – one associated with the drug charges and one associated with the money laundering charges.
According to Court records, Williams—who is also known by a variety of aliases, including “D,” “Detroit,” “Big Bro,” “Corn,” and “Sosa” — supervised the distribution of controlled substances to various locations in Vermont, North Dakota, Montana, and elsewhere. Williams and others under Williams’s supervision distributed a variety of controlled substances, including dangerous opiates, as well as highly addictive stimulants such as cocaine base and methamphetamine. Some of the drugs involved were fentanyl pills created to resemble prescription opiate medications.
Williams also supervised the laundering of drug proceeds via cash deposits into bank accounts followed by the transfer of proceeds using a variety of methods, including mobile payment services such as Cash App, Zelle, and Venmo. In addition, Williams laundered drug proceeds through the purchase of numerous luxury vehicles.
Williams was arrested on January 13, 2021 in Los Angeles, California at his residence. On the same day, law enforcement agents executed search warrants at another residence in Los Angeles and a storage locker associated with Williams’s drug trafficking organization. During the searches, agents located an assault rifle and approximately two pounds of methamphetamine. Law enforcement also arrested the following defendants on January 13, 2021 – Luhizo and Robinson in Vermont; Lenoir in Los Angeles, California; Alexander in Gary, Indiana; Elwell in Owl’s Head, Maine; and Perkins in Grand Rapids, Michigan.
In addition to the drug conspiracy charges, defendants Mohamed Luhizo, Jaylinn Lenoir, Stephen Alexander, Rendell Perkins, and Juwon Robinson have been charged with distributing controlled substances, including fentanyl, cocaine base, and cocaine all in violation of the Controlled Substances Act. In addition to the money laundering conspiracy charge, the government has charged Williams with three counts of money laundering based on his purchase of a black 2016 Maserati Ghibli; a white 2017 Audi A7; and a grey 2017 BMW X6. Alexander has also been charged with one count of money laundering.The United States Attorney emphasizes that the charges in the indictment are merely an accusation, and that each defendant is presumed innocent unless and until proven guilty. Williams, Alexander, and the fugitive defendant all face a five-year mandatory minimum sentence based on the drug conspiracy charge. The actual sentence for each defendant, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
This indictment follows a twelve-month investigation conducted by state and federal agencies which was led by Homeland Security Investigations. HSI was assisted in this investigation by agents from IRS-Criminal Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, troopers from the Vermont State Police Drug Task Force, Burlington Police Department, and South Burlington Police Department. The coordinated law enforcement effort focusing on Williams and his drug trafficking organization was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Acting United States Attorney Jonathan Ophardt commended the concerted efforts of law enforcement throughout the year-long transcontinental investigation. “Astounding profits from illicit drug trafficking funneled through this expansive drug trafficking organization. While we work to reduce demand for illicit drugs through prevention and treatment efforts, federal authorities will continue to pursue those who profit from the peddling of poison in our communities.”
“Homeland Security Investigations is pleased that Dajuan Williams and his codefendants will face justice in Vermont,” stated acting Special Agent in Charge William Walker of the Homeland Security Investigations Boston Office. “As referenced in this press release, a committed effort by HSI and our law enforcement partners has removed dangerous narcotics traffickers from communities not only in Vermont but across the country.”
The United States is represented in this matter by Assistant U.S. Attorneys John Boscia and Nikolas Kerest. Robert Katims represents Dajuan Williams. Ernest Allen represents Juwon Robinson. Richard Bothfeld represents Mohamed Luhizo. Jordana Levine represents Jaylinn Lenoir. David Sleigh represents Jessica Elwell. Robert Behrens represents Rendell Perkins. Kevin Henry represents Stephen Alexander.
Charleston Man Sentenced to Five Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
CHARLESTON, W.Va. – Jawhar Baruti Jones, 41, of Charleston, was sentenced to 60 months in prison to be followed by four years of supervised release for distribution of methamphetamine. Jones pleaded guilty to the charge in January 2021.
According to the plea agreement and statements made in court, Jones sold methamphetamine to a confidential informant in Charleston on three separate occasions in May 2017. In total, Jones distributed approximately 161 grams of 98% pure methamphetamine during the investigation. A search warrant was executed at Jones’ residence shortly after the third transaction and law enforcement officers found several bills of United States currency with serial numbers matching those previously utilized by the confidential informant to purchase methamphetamine from Jones.
The Drug Enforcement Administration (DEA) conducted the investigation with the assistance of the West Virginia State Police. Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled 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. 2:19-cr-00070.
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Bristol, Virginia Woman Sentenced on Conspiracy to Defraud ChargesRead the Press Release
ABINGDON, Va. – Kathleen Littleford, a Bristol, Virginia, woman who fraudulently opened several bank accounts, deposited counterfeit checks, and shipped large quantities of cash to various individuals across the country in a scam involving a man with whom she was involved in an online relationship, was sentenced today in U.S. District Court here to three years’ probation, four months of which must be spent in home confinement, Acting United States Attorney Daniel P. Bubar announced today.
Littleford, 77, previously pleaded guilty to one count of conspiracy to execute a scheme to defraud financial institutions to obtain money by false pretenses.
According to court documents, beginning in 2018, Littleford opened a series of bank accounts for the purpose of depositing counterfeit checks and receiving fraudulent transfers of funds from other banking institutions. She did so to assist a man she met online calling himself Frank Peterson. Beginning with his introduction and continuing to the present day, Littleford engaged in an amorous relationship with “Peterson”, engaging in frequent emailing, text messaging, Facebook messaging, and phone call communications.
“Peterson” made representations to Littleford over the course of their relationship that he made a lot of money in a trade deal in Dubai, that those funds were encumbered by the IRS due to taxes he owed, that he had a lot of money tied up in stocks, and that he needed Littleford’s help receiving funds from banking institutions because he could not transfer money himself, due to the IRS claims on his accounts.
Littleford admitted today that premised on Peterson’s representations and enticed by a reciprocal love and devotion he showed her, Littleford undertook extraordinary measures to comply with Peterson’s fraudulent financial requests. Littleford knew what she was doing was wrong, but knowingly and willfully engaged in the conduct anyway.
Over the course of the scheme, Littleford opened accounts with at least five local banks and fraudulently received more than $190,000 in funds to which she was not entitled.
The investigation of the case was conducted by the Internal Revenue Service and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.
Box Elder man sentenced to prison for distributing meth to minorRead the Press Release
GREAT FALLS – A Box Elder man who admitted providing methamphetamine to a minor girl was sentenced today to 51 months in prison and to six years of supervised release, Acting U.S. Attorney Leif Johnson said.
James Dean Stump, 34, pleaded guilty on Dec. 8, 2020 to possession with intent to distribute meth to a person under 21.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris ordered Stump detained.
In court documents filed in the case, the government alleged that from about July 2018 to July 2020 Stump provided a minor girl, who was under the age of 21 and identified as Jane Doe, with methamphetamine. Jane Doe tested positive for meth and said she had received the drug from Stump.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI, Chippewa Cree Law Enforcement Services and Hill County Sheriff’s Office.
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Beverlywood Man Arrested for Allegedly Bilking Investors by Falsely Claiming to License Latin American Film Rights to Netflix and HBORead the Press Release
LOS ANGELES – A Beverlywood man was arrested this morning on a federal criminal complaint alleging that victims put $227 million – investment principal that has yet to be repaid – into a scheme based on false claims their money would be used to acquire licensing rights to films that HBO and Netflix had agreed to distribute abroad, particularly in Latin America.
Zachary Joseph Horwitz, 34, who has used the screen name “Zach Avery,” was taken into custody by special agents with the FBI. The criminal complaint was unsealed during Horwitz’s initial appearance this afternoon in United States District Court.
The criminal complaint filed Monday charges Horwitz with wire fraud, a crime that carries a statutory maximum penalty of 20 years in prison.
According to the affidavit in support of the complaint, over the course of about five years, Horwitz solicited investors to invest in his company – 1inMM Capital LLC – which he claimed would use the funds to purchase regional distribution rights to films and then license the rights to online platforms such as Netflix and HBO. Horwitz provided promotional materials to investors that claimed 1inMM Capital offered “safe” investments because “we receive confirmation from each of our outputs indicating their desire to acquire the rights to any title we purchase PRIOR to us releasing funds for the film,” according to the affidavit.
However, instead of using the funds to acquire films and forge distribution deals, Horwitz allegedly operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund his own lifestyle, including the purchase of his $6 million Beverlywood residence.
The scheme allegedly began in 2015, when investment firms began entering into a series of 6-month or 12-month promissory notes with 1inMM Capital based on Horwitz’s statements. The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film. To convince investors he was legitimate, the affidavit states, Horwitz provided investors with fake license agreements, as well as fake distribution agreements with Netflix and HBO, all of which contained forged or fictional signatures. Despite Horwitz’s claim of “solid relationships” with online platforms, representatives for Netflix and HBO have denied that their companies engaged in any business with Horwitz or 1inMM Capital, the affidavit states.
Investors started to complain after 1inMM Capital began defaulting on notes at various times in 2019, the affidavit states. To prolong the scheme in the wake of mounting defaults, Horwitz provided excuses that were purportedly given by Netflix and HBO, forwarding to investors spoofed correspondence with Netflix and HBO in which Horwitz again fraudulently used the identities of Netflix or HBO employees.
According to the affidavit, private investment firms have transferred approximately $227 million to 1inMM Capital pursuant to promissory notes since late 2018. Horwitz, through 1inMM Capital, allegedly has defaulted on all these underlying notes.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
During this afternoon’s initial appearance, a United States Magistrate Judge set Horwitz’s bond at $1 million, but he will not be released from custody until the bond is approved. An arraignment in this matter was scheduled for May 13.
The FBI is investigating this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
This case is being prosecuted by Assistant United States Attorneys Alexander B. Schwab and David H. Chao of the Major Frauds Section.
Berkeley County man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – John Suffare Beavers, II, of Hedgesville, West Virginia, has admitted to his role in a drug distribution enterprise, Acting United States Attorney Randolph J. Bernard announced.
Beavers, 34, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride” and three counts of “Aiding and Abetting Distribution of Heroin and Fentanyl.” Beavers admitted to working with others to sell cocaine hydrochloride, cocaine base, heroin, and fentanyl from June 2019 to October 2020 in Berkeley County and elsewhere.Beavers faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. 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. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Behavioral Health Provider Pays $273K to Settle Improper Billing AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that TODAY’S YOUTH LLC and its owners, Maurice Stuckey and Joyce Anderson, have entered into a civil settlement agreement with the federal and state governments in which they will pay $273,000 to resolve allegations that they caused overpayments to be paid by the Connecticut Medicaid Program.
Today’s Youth is a healthcare organization that provides in-home family therapy and counseling in the greater Hartford area. The government’s allegations against Today’s Youth, Stuckey and Anderson arise out of improper billing for behavioral health services.
Today’s Youth is enrolled in the Connecticut Medical Assistance Program (“CMAP”), which includes Connecticut’s Medicaid program, as a “Behavioral Health Clinician Group.” The State of Connecticut Department of Social Services (“DSS”) contracted with Today’s Youth to provide behavioral health services to Medicaid beneficiaries. DSS does not allow licensed behavioral health clinicians in independent practice to submit claims for services provided by unlicensed individuals, even if the individuals are working toward licensure and supervised by a licensed individual. The DSS Provider Manual for Licensed Behavioral Health Clinicians in Independent Practice explicitly states, “The department shall not pay for…services provided by anyone other than the provider.”
The government alleges that despite clear guidance from the Medicaid program, Today’s Youth, Stuckey and Anderson routinely submitted claims to Medicaid for behavioral health services as if a licensed behavioral health clinician performed the services when, in fact, an unlicensed provider performed the services. As a result, Medicaid paid Today’s Youth for behavioral health services that the U.S. and Connecticut would not have paid for had they known unlicensed individuals provided the services.
To resolve its liability, Today’s Youth will pay $273,000 to the federal and state governments for conduct occurring between January 1, 2014 and September 1, 2019.
This matter was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Anne F. Thidemann and by Assistant Attorney General Michael E. Cole of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Assistant U.S. Attorney from South Carolina Honored by FBI for Prosecution of Cocaine Drug ConspiracyRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the Columbia Division of the Federal Bureau of Investigation (FBI) has recognized Assistant United States Attorney Benjamin Garner for his work in the prosecution of nearly 100 violent street gang members of a major cocaine and crack cocaine trafficking conspiracy operating throughout South Carolina’s Midlands.
“The work of Assistant United States Attorney Benjamin Garner, as well as the support of Assistant United States Attorney Jane Taylor and Supervisory Legal Administrative Specialist Shana Greenway, on ‘The Movement’ prosecution represents the best of our office,” said Acting U.S. Attorney DeHart. “‘The Movement’ case also highlights the incredible collaborative efforts of local, state, and federal law enforcement agencies to make our communities safer and better places.”
After many drug-related shootings in a confined area led the Sumter Police Department to connect a group of individuals to a gang-style operation in the area known as “The Movement,” federal assistance was sought. Through the collaboration of local, state, and federal law enforcement agencies, over a dozen cocaine suppliers for the drug dealers in the area were apprehended and pled guilty to federal drug charges. The investigation then led to the arrest of more than three dozen individuals and the seizure of almost 20 pounds of cocaine and $9 million in drug money, followed by the prosecution of an additional thirty-eight defendants. In total, federal charges were brought against 91 defendants for drug and firearm offenses with “The Movement” case.
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Arlington Man Sentenced to 5 Years in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
An Arlington man whose fraudulent tax filings netted him more than $935,000 in improper refunds has been sentenced to five years in federal prison and ordered to pay $495,368 in restitution to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Glenn Edwards Boggus, 34, pleaded guilty in January 2020 to filing a false claim for refund from the IRS. He was sentenced Friday by U.S. District Judge Karen Gren Scholer.
In plea papers, Mr. Boggus admitted that in January 2017, he filed a fraudulent individual income tax return, Form 1040, that claimed a $1.14 million tax refund for tax year 2016. Along with his fraudulent 1040, he submitted a false wage and tax statement, Form W-2, reporting $5,647,888 in wages and $3,333,116 in withholdings, which he knew to be false. (At his sentencing hearing, prosecutors introduced evidence that the company from which he’d purportedly collected his wages was fake.)
The IRS sent Mr. Boggus a check in the amount of $935,432.56 for his alleged tax refund. In March 2017, Mr. Boggus attempted to deposit the check into an account he opened at Regions Bank.
As part of his plea, Mr. Boggus also admitted that for tax years 2013 through 2015, he executed a similar scheme to defraud the government, submitting false tax returns claiming he had paid certain withholdings and was entitled to tax refunds. He said he knowingly filed his tax returns in which he claimed fraudulent tax refunds from the IRS in the amount of $33,489 for tax year 2013, $323,765 for tax year 2014, and $258,407 for tax year 2015.
IRS - Criminal Investigation investigated the case. Assistant U.S. Attorney L. Rachael Jones prosecuted the case.
Arkansas Businessman Sentenced to Prison for Income Tax EvasionRead the Press Release
An Arkansas man was sentenced today to three years in prison for income tax evasion.
According to court documents, James Brassart of Bentonville filed a 2006 individual income tax return that reported adjusted gross income of $1,502,749 and taxes due to the IRS of $486,438. Brassart failed to pay all of the taxes owed and was assessed penalties and interest. To evade his tax liabilities, Brassart took extensive steps to conceal his income and assets. He used three nominee corporations, Eagle Creek Construction and Development Inc., Mono Pro LLC, and Sierra Madre Contracting LLC, to conduct business and purchase assets.
Moreover, between 2010 and 2016, Brassart filed four false bankruptcy petitions to discharge his tax debt. In those bankruptcies, Brassart made false statements and filed fraudulent documents in which he concealed his ownership interests in the nominee corporations. Through his actions, Brassart caused a total tax loss of approximately $1,360,682 to the IRS.
In addition to the term of imprisonment, U.S. District Judge Timothy L. Brooks ordered Brassart to serve three years of supervised release and to pay approximately of $1,360,682.29 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Robert Kemins of the Tax Division prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Western District of Arkansas (Fayetteville Division) for their substantial assistance.
25 Members of A Violent Gang Charged with Drug Trafficking in Mayagüez, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 29, 2021, a federal grand jury in the District of Puerto Rico returned a six-count indictment charging 25 gang members with conspiracy to possess with intent to distribute controlled substances, and aiding and abetting in the possession/distribution of controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Police Bureau (PRPB) Mayagüez Strike Force investigated the case.
“This indictment and the arrests this morning demonstrate our continued resolve to combat drug trafficking,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We are committed to dismantling and removing the threat posed by these criminal organizations flooding our communities with dangerous narcotics and violence.”
“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Iván J. Arvelo, special agent in charge for HSI San Juan. “HSI thanks our local, state and federal law enforcement partners for their significant cooperation in dismantling this drug trafficking organization.”
The indictment alleges that from in or about the year 2016, to the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, and marihuana, within 1,000 feet of the Franklin D. Roosevelt Public Housing Project (PHP), and other areas in the municipality of Mayagüez, all for financial gain and profit.
As part of the conspiracy, the members of the drug trafficking gang established drug points that moved within different areas inside the public housing project to avoid police detection. Some co-conspirators collected the profits from the drug trafficking sales and traveled within the municipality of Mayagüez and other areas nearby to deliver the proceeds to the leaders of the organization. The defendants had access to different vehicles to transport money, narcotics, and firearms.
At different points during the conspiracy the leaders provided members of the organization with different types of firearms to protect themselves, the narcotics, and their proceeds. The leaders had final approval authority as to disciplinary action to be imposed upon residents of the Franklin D. Roosevelt PHP and the members of the conspiracy to maintain control of the drug trafficking activities in the area. The co-conspirators of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. Nine defendants are facing one count of possession of firearms in furtherance of a drug trafficking crime.
The defendants acted in different roles to further the goals of the conspiracy, to wit leaders, enforcers, runners, sellers, and facilitators. The individuals indicted are:
Luis S. Rivera-Ruiz, a/k/a “Pantera”
Miguel Ángel Santiago-Jiménez, a/k/a “Miguelito”
Kifran A. Casiano-Alayon
Jeffrey E. González-Vargas
Joseph Vélez-Mondessi, a/k/a “El Negro/Joe”
Jordany Ayala-Vega
Francheska Valle-Díaz, a/k/a “Cheska”
Eduardo Rodríguez-Rodríguez, a/k/a “Edward”
Chayanne Torres-Hernández
Dianne Rivera-Rosas
William F. Vélez-Borrero, a/k/a “El Negro”
Emmanuel Alemar-Rosas
José A. Rivera-Soto, a/k/a/ “Che”
Nelson Rosario-Sánchez, a/k/a “El Menor/Nelsito”
Roy Alexander Santiago-Vélez
Isa Denisse Vélez-Cruz
Keishla Marie Colón, a/k/a “Kei”
Erickson Lugo-Méndez, a/k/a “Tripi”
Kevin O. Montalvo-Ruiz, a/k/a “Keva”
Kevin J. Rodríguez-Cruz
Miguel Alfredo Ruiz-Rodríguez
Yadiel Joebell Iglesias-Izquierdo
Athdiel Aponte-Pérez, a/k/a “Bebe”
Carlos G. Arce-Santiago
Isben Jaret Rivera-Cardoza
Assistant U.S. Attorney Pedro R. Casablanca and Special Assistant U.S. Attorney Yanira Colón-García from the Puerto Rico Department of Justice are in charge of the prosecution of the case. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the U.S. Customs and Border Protection collaborated during the arrests.
If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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5 April 2021
Woman from Zuni Pueblo sentenced to 41 months in federal prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Kirsten Sandy, 38, and an enrolled member of the Pueblo of Zuni, was sentenced in federal court on April 1 to 41 months in prison for assault resulting in serious bodily injury in Indian Country.
Sandy pleaded guilty to the offense on Feb. 5, 2020. In her plea agreement, Sandy admitted to stabbing John Doe on May 1, 2014, in McKinley County, New Mexico, on the Zuni Pueblo. Sandy stabbed John Doe in the chest, causing severe lacerations and damaging the victim’s heart. As a result of the assault, the victim needed immediate open-heart surgery to save his life.
The Zuni Police Department investigated this case. Assistant U.S. Attorneys Nicholas Marshall and Allison Jaros prosecuted the case.
Wake Forest Investment Advisor Sentenced for Wire FraudRead the Press Release
WILMINGTON, N.C. – A Wake Forest, NC man was sentenced today to 135 months imprisonment for wire fraud and ordered to pay $6,040,965.00 in restitution.
According to court documents, Anthony Wayne March, 49 years old, operated the non-profit 501(c)(3) entity Asset Trader, located in Rolesville, NC, between 2012 to 2015. March represented that Asset Trader offered educational services to professionals and taxpayers in the area of exit planning. Asset Trader’s stated educational mission allowed it to obtain classification as a 28 U.S.C. § 501(c)(3) tax-exempt non-profit organization. Asset Trader used its §501(c)(3) tax-exempt status to solicit tax-deductible donations in exchange for charitable gift annuities (“CGAs”) and to recruit referral sources to obtain assets from potential donors. Through Asset Trader, March and his co-conspirators engaged in and executed what is commonly known as a “Ponzi” scheme to defraud investors by inducing them to invest with Asset Trader.
During the course of the scheme, March solicited at least 22 victims to invest over $8,100,000 in charitable gift annuities and other products offered by Asset Trader. March and Asset Trader sold these securities to victims as retirement or exit planning vehicles classified as donations to March’s § 501(c)(3) tax-exempt non-profit organization. March did not utilize any of the victim’s money for charitable purposes; rather, he spent the money on "Ponzi" payments, his own lavish lifestyle, and expenses of the scheme.
March pled guilty today to conspiracy to wire fraud on August 3, 2020.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter. The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance. Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-383-H.
Two Men Plead Guilty in Murder of Miami PlumberRead the Press Release
Miami, Florida – Two 35-year-old South Florida men have pled guilty in federal district court in Ft. Lauderdale to participating in a pair of robberies that culminated in a carjacking and the murder of a Miami plumber.
According to the Factual Proffers signed by Jamal Lamar Head and Keon Travy Glanton, on July 11, 2018, Head and Glanton worked together to rob a Roto-Rooter plumber of valuable plumbing equipment in Riviera Beach, Florida. Head and Glanton lured the Roto-Rooter plumber to an abandoned residence in Riviera Beach, where Head assaulted him with a firearm. Valuable plumbing equipment was removed from the vehicle.
The Factual Proffers further state that, the following day, July 12, 2018, Head and Glanton planned to rob another plumber, this time at a vacant house in Miami Lakes, Florida. After Head and Glanton called several plumbers, plumber “L.S.H.” agreed to come to the Miami Lakes house to perform plumbing work. When L.S.H. arrived, Head forced L.S.H. into another vehicle at gunpoint, while Glanton drove away in L.S.H.’s plumbing van.
Head began driving L.S.H. away from the scene, and L.S.H. struggled with Head. Head then shot L.S.H. once in the chest and twice in the abdomen and crashed his car into a tree. Head fled the scene and called Glanton, who returned to the area in L.S.H.’s van to pick up Head. Head and Glanton then fled the area together. They later drove to another area of Miami, where they doused L.S.H.’s van in gasoline and lit it on fire.
Paramedics arrived at the murder scene and found L.S.H.’s body in the rear seat of Head’s vehicle. L.S.H. was pronounced dead on the scene. The medical examiner determined that L.S.H.’s cause of death was blood loss from the three gunshot wounds.
The crimes to which Glanton and Head pled guilty include conspiring to commit a Hobbs Act robbery, carjacking resulting in death, and discharging a firearm in furtherance of a crime of violence. Glanton entered his guilty plea on April 2, 2021, and is scheduled to be sentenced by United States District Judge Roy K. Altman, who sits in Ft. Lauderdale, on August 25, 2021, at 10:00 a.m. Head entered his guilty plea last month and is scheduled to be sentenced by Judge Altman on July 20, 2021, at 10:00 a.m.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alfredo Ramirez, Director, Miami Dade Police Department, made the announcement.
ATF Miami and MDPD investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Jessica Kahn Obenauf.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-20063.
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Texas Man Sentenced to 10 Years for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Fort Worth, Texas, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 29, 2021, by U.S. District Judge Karen E. Schreier.
Michael Allen Youngberg, a/k/a Opie, age 50, was sentenced to 120 months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Youngberg was indicted by a federal grand jury on September 1, 2020. He pled guilty on January 22, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing to on or about September 1, 2020, when Youngberg, along with at least one other person, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture containing methamphetamine. Youngberg facilitated the transportation and exchange of the methamphetamine which was intended for re-distribution within South Dakota and elsewhere. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Youngberg was immediately turned over to the custody of the U.S. Marshals Service.
Salvadoran National Pleads Guilty to Distribution of FentanylRead the Press Release
BOSTON – A Salvadoran national pleaded guilty today in federal court in Worcester to distributing fentanyl.
Nelson Garcia Martinez, a Salvadoran national previously residing in Stockton, Calif., pleaded guilty to one count of distribution of 400 grams or more of fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 22, 2021. Garcia Martinez was charged and arrested in November 2018.
Garcia Martinez was arrested on Nov. 13, 2018, after federal agents conducting surveillance at a rest stop in Sturbridge observed Garcia Martinez meet with two unidentified individuals outside of Garcia Martinez’s tractor trailer. When the two unidentified individuals left the area, law enforcement attempted to stop their vehicle, but they fled. When they did finally pull to the side of the road, the passenger exited the car and discarded a vacuum sealed garment bag and then fled into the surrounding woods, while the driver of the car fled the scene at high speed. The garment bag burst open on the ground, and agents recovered 15 kilograms of a substance that tested positive for fentanyl. Garcia Martinez consented to a search of his tractor trailer, where vacuum sealed bags matching the one discarded on the side of the road were recovered.
Law enforcement were led to Garcia Martinez after discovering a phone number, later determined to be associated with the defendant, that was believed to be used by a drug transporter related to an October 2018 seizure of 32 kilos of fentanyl in Methuen.
The charge of distribution of 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Somerville, Medford, Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Katherine Ferguson of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
Robeson County Man Sentenced to 12 Years for Drug and Firearm PossessionRead the Press Release
RALEIGH, N.C. – A Maxton man was sentenced today to 144 months in prison for possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
On August 3, 2019, the Robeson County Sheriff’s Office responded to a community complaint regarding drug sales at a residence in Rowland, North Carolina. During the investigation, deputies observed Cody Zachary Locklear, 29, run out of the residence and attempt to discard a firearm and a bag containing distributable amounts of cocaine, crack, marijuana, and various narcotic pills. Deputies recovered the firearm and the controlled substances and took Locklear into custody.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Robeson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-89-D.
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Reading, PA Internet Rapper and Member of Bloods Gang Sentenced to 15 Years for Drug TraffickingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Louis Daniel Morales a/k/a “Trouble,” 29, of Reading, PA, was sentenced to 15 years in prison, five years of supervised release, and ordered to pay a $2,000 fine by United States District Judge Edward G. Smith for distributing large quantities of methamphetamine and other controlled substances in the Reading, PA area in 2019. Morales, a self-identified member of the “Nine Trey Gangsters” sect of the Bloods gang and an internet rap artist known as “Trouble” or “King Troub93,” was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police as part of a conspiracy which was responsible for trafficking methamphetamine, heroin, and cocaine in and around Berks County.
In October 2020, the defendant pleaded guilty to three felony counts of manufacture, possession and distribution of a controlled substance, stemming from the sale of more than 800 grams of methamphetamine and an additional quantity of heroin to an undercover Pennsylvania State Police Trooper on three separate occasions between May and June 2019. For approximately three months, the FBI and State Police utilized a federal wiretap to intercept conversations between the defendant, drug suppliers, and customers, revealing that Morales had access to a seemingly endless supply of methamphetamine through several sources. The recorded conversations further detailed that the defendant worked alongside his mother, who trafficked in marijuana, and other individuals with ties to a drug cartel in Mexico. Morales and his codefendants were arrested in September 2019, along with several other defendants charged elsewhere who were also under investigation for similar conduct involving methamphetamine distribution in Reading.
“Morales and his co-conspirators pumped huge quantities of deadly, addictive drugs into Reading and its surrounding communities,” said Acting U.S. Attorney Williams. “Drug trafficking destroys lives and neighborhoods. Our Office is determined to protect the communities impacted by drug trafficking by investigating and convicting the criminals responsible for it.”
“Drug traffickers know how much harm their product does to people’s lives and communities. They simply don’t care,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Putting Louis Morales out of business and behind bars is a win for folks in the Reading area. Bottom line: the FBI and our partners will never cede our cities to drug pushers and gang members.”
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Raleigh County Man Sentenced for Conspiracy to Obstruct JusticeRead the Press Release
Defendant sentenced for conspiracy to fake his wife’s death at the New River Gorge
CHARLESTON, W.Va. – A Raleigh County man received a sentence of eight months of confinement for his role in a conspiracy to obstruct justice. Rodney Wheeler, 48, of Beckley, pleaded guilty to conspiracy to obstruct justice on January 5, 2021. He was ordered to serve two months of incarceration in federal prison, to be followed by six months of home confinement and then three years of supervised release.
According to court documents and statements made in court, Rodney and Julie Wheeler conspired to fake Julie’s death at the New River Gorge to avoid her federal court sentencing for health care fraud. Rodney Wheeler placed a 911 call on May 31, 2020, falsely claiming that Julie Wheeler had fallen from the Grandview Overlook in the New River Gorge in West Virginia. The overlook is a steep cliff with a series of ledges leading down to the New River. This 911 call prompted a massive search and rescue operation with hundreds of volunteers, law enforcement, and professional search and rescue personnel looking for Julie Wheeler at the base of the overlook and the surrounding area. Helicopters provided by the West Virginia Air National Guard and the West Virginia State Police searched from the air, repelling experts looked in the cliffs, and rescue dogs with their handlers scoured the ground looking for any trace of Julie Wheeler. In fact, Julie Wheeler was hiding in her own home and planning to go into permanent hiding with Rodney Wheeler.
Throughout the massive search effort, Rodney Wheeler repeatedly gave false statements to state and federal investigators intentionally designed to mislead them about his wife’s whereabouts. Rodney Wheeler also made a false Facebook post on June 1, 2020 stating “[T]he accident at Grandview yesterday involved my wife . . . they have not found her yet but I am holding out hope that she will be found and she is ok . . . I am heartbroken and lost right now but I have to have faith . . . please give us time to worth through this and please keep us in your thoughts and prayers.” The purpose Rodney Wheeler’s false statements was to continue the Wheelers’ ruse that she had fallen and was missing.
After two days of searching, the West Virginia State Police located Julie Wheeler hiding in a closet inside her own home. Once removed from her closet by the State Troopers, Rodney and Julie Wheeler were both taken into custody. In statements to state and federal investigators, Rodney and Julie Wheeler both admitted they conspired to fake her disappearance to avoid Julie Wheeler’s pending federal sentencing in a health care fraud case.
“A highly-coordinated effort by the agencies named herein led to the arrest and prosecution of Rodney Wheeler,” said Acting United States Attorney Lisa G. Johnston. “I applaud the tremendous work of the National Park Service, the West Virginia State Police, the United States Probation Office, the FBI, the Office of Veterans Affairs (VA), the VA-Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, the West Virginia Air National Guard and the Raleigh County Prosecuting Attorney’s Office."
Rodney and Julie Wheeler both were charged with numerous felony and misdemeanor offenses in Raleigh County Circuit and Magistrate Courts relating to the false reporting of an emergency.
Julie Wheeler was sentenced in February 2021 to a total of 54 months in federal prison for health care fraud and her own role in the obstruction conspiracy. Julie Wheeler’s underlying health care fraud conviction related to her overbilling a VA program for spina bifida care. She was also ordered to pay restitution in the amount of $289,055.07 for the overbilling scheme.
Senior United States District Judge John T. Copenhaver, Jr. presided over both criminal matters. Assistant United States Attorney Erik S. Goes handled the prosecutions.
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. 5:20-cr-00145.
Follow us on Twitter: SDWVNews
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Pittsburgh Man Allowed His House to be Used as a Drug PremisesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of managing and controlling a drug-involved premises, Acting United States Attorney Stephen R. Kaufman announced today.
Charles Curry, age 31, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that in November 2019, Curry managed and controlled a premises as an occupant, which he made available for the use of manufacturing, storing and disturbing controlled substances, namely, acetyl fentanyl and heroin, both Schedule I controlled substances, and cocaine, cocaine base and fentanyl, all Schedule II controlled substances.
Judge Horan scheduled sentencing for July 27, 2021 at 11:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $500,000, 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.
Assistant United States Attorneys Brendan T. Conway and Brian M. Czarnecki are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Office, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Curry.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pembroke Woman Sentenced to 129 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Nadine Jacques, 46, of Pembroke, was sentenced to 129 months in federal prison for methamphetamine trafficking on Friday, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February and March of 2020, a cooperating individual made four controlled purchases of methamphetamine from Jacques in Suncook, Concord, and Dover, New Hampshire.
Agents conducting surveillance at the final purchase on March 4, 2020, witnessed Jacques obtaining the drugs from her source, Tyler Cady, in Dover. Agents arrested Jacques and Cady and recovered over 111 grams of methamphetamine.
Jacques previously pleaded guilty on August 7, 2020. Cady, 30, of Concord, pleaded guilty on February 26, 2021. He is scheduled to be sentenced on June 4, 2021.
“Methamphetamine is a very dangerous drug that continues to pose a significant threat to the citizens of New Hampshire,” said Acting U.S. Attorney Farley. “To protect the community, we are working closely with our law enforcement partners to identify and prosecute the drug traffickers who are peddling methamphetamine. As Ms. Jacques has learned, methamphetamine dealers in the Granite State will face substantial consequences for their unlawful actions.”
This matter was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Oklahoma City Man and Woman to Each Serve 15 Years in Federal Prison for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Last week, MICHAEL KERRY KENDRICK, aka "Milkman," 49, of Oklahoma City, was sentenced to serve 15 years in federal prison for conspiring to commit child sex trafficking, announced Acting U.S. Attorney Robert J. Troester. CHRISTA LYNN GLASS, aka "Lady Milk," aka "Diamond," 40, of Oklahoma City, has already been sentenced to serve 15 years in federal prison for conspiring with Kendrick to commit child sex trafficking in a related case.
On February 20, 2020, both Kendrick and Glass were charged by federal complaint with child sex trafficking. On June 2, 2020, Kendrick was additionally charged by Indictment by a federal grand jury with conspiring to commit child sex trafficking and the substantive offense of child sex trafficking.
On June 17, 2020, Glass entered a guilty plea to one count of conspiring to commit child sex trafficking between September 2019 and January 28, 2020, in Oklahoma City. On July 8, 2020, Kendrick entered a guilty plea to Count 1 of the Indictment—conspiring to commit child sex trafficking during the same time period.
On March 1, 2021, U.S. District Judge Jodi W. Dishman sentenced Glass to serve 15 years in federal prison, followed by five years of supervised release. On April 2, 2021, Judge Dishman sentenced Kendrick to serve 15 years in federal prison, followed by five years of supervised release. Judge Dishman also imposed $5,100 in special assessments for each defendant and stated that restitution for the victim will be determined at a subsequent hearing. At each sentencing, Judge Dishman noted the difficulty of finding words to convey how serious and egregious Kendrick and Glass’s crimes were.
According to court documents and public record, Kendrick and Glass offered to teach a 16-year-old child about the commercial sex business. They posted advertisements on the internet using photos they took of the child and arranged for commercial sex appointments with buyers who responded to the advertisements. Kendrick and Glass took all the proceeds of the appointments between the child and the buyers. Additionally, they provided the child with narcotics.
Upon their release from prison, both Kendrick and Glass will be required to register as sex offenders.
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division and the Oklahoma Bureau of Narcotics. Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to public filings for more information.
North Texas Man Pleads Guilty to His Involvement in Multi-Million Dollar International Fraud SchemeRead the Press Release
SHERMAN, Texas – A Carrollton, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Moses Moreira, 42, pleaded guilty to conspiracy to commit wire fraud and wire fraud on April 1, 2021 before U.S. Magistrate Judge Christine A. Nowak.
“The identification and disruption of white collar fraud schemes, and the vigorous prosecution of the criminals responsible for them, is a top priority for the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “It is our mission to make internet communication and commerce as safe as possible and rooting out online fraud schemes—such as the one here—are an integral part of that process.”
According to court documents, Moreira worked with co-conspirators to devise and execute an online fraud scheme, which involved, among other things, fabricating false identities and stories to entice victims and ultimately lure money from them. Moreira and his co-conspirators used the fraudulently obtained funds for personal purchases and converted portions of these funds for use in international shipping. According to the indictment, at least 80 victims sent money to Moreira and his co-conspirators, with at least 60 victims sending money directly to Moreira or accounts controlled by Moreira. These victims have lost a combined total of approximately $4 million. Moreira was indicted on Feb. 10, 2021 and charged with federal violations.
Under federal statutes, Moreira faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
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New York Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
CONCORD – William Soto, 29, of New York, pleaded guilty in federal court on Friday to aiding and abetting the possession of controlled substances with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 25, 2020, a New Hampshire state trooper pulled over a vehicle operated by co-defendant Lorenzo Vasquez for traffic violations. The trooper identified Soto by his driver’s license. A drug detection dog later indicated that there were drugs in the vehicle. After obtaining a search warrant, officers located over 202 grams of cocaine base, over 90 grams of heroin, and a digital scale within the vehicle.
Vasquez previously pleaded guilty on March 12, 2021 and is scheduled to be sentenced on June 18, 2021. Soto is scheduled to be sentenced on July 12, 2021.
“Interstate drug traffickers are endangering the lives of New Hampshire’s citizens,” said Acting U.S. Attorney Farley. “In order to protect the community, we will not hesitate to bring federal charges against the criminals who come to the Granite State to sell illegal drugs. I am grateful to the State Police for helping us to put this drug dealer out of business.”
This matter was investigated by the New Hampshire State Police Mobile Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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New Jersey Man Admits Operating Illegal Bitcoin ExchangeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted operating an illegal bitcoin exchange, Acting U.S. Attorney Rachael A. Honig announced.
William Green, 53, of Wall, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count 1 of an indictment charging him with operating an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
From August 2017 through February 2019, Green operated a website called “Destination Bitcoin.” Through the website and various referrals, Green received money from members of the public through cash, wire transfers into bank accounts controlled by Green, and online payment processors. Green then converted the funds to bitcoin and transferred the bitcoin to bitcoin wallet addresses provided by the customers. Green charged the customers a fee for this service.
Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether the business is licensed as a money transmitting business in any state) with the Secretary of the Treasury. Green admitted today that he knew he was required to register his business with the Secretary of the Treasury and that he failed to do so.
The unlicensed money transmitting charge to which Green pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 10, 2021.
Acting U.S. Attorney Honig credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, 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. Attorneys Anthony P. Torntore and Matthew Feldman Nikic of the U.S. Attorney’s Cybercrime Unit in Newark.
Moorhead Man Sentenced to Two Years in Federal Prison for Civil Disorder during the May 30th, 2020, Fargo Violent ProtestsRead the Press Release
Fargo – Acting United States Attorney Nick Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Jonathan Montanezage, age 31 of Moorhead, MN, to serve two years in federal prison with 3 years of supervised release to follow for the charge of Civil Disorder, 18 USC 231 (a)(3), during violent protests in Fargo, ND.
On May 30, 2020, what started as peaceful protest in Fargo turned violent when some individuals, including Montanezage, jumped on top of an occupied Fargo Police Department vehicle and slammed his fists on the police vehicle causing extensive damage. Montanezage was also provoked other protesters to become violent and destructive. That criminal behavior caused many serious injuries to law enforcement officers and caused thousands of dollars in damages to businesses in downtown Fargo.
"The FBI’s mission is to uphold the Constitution, which includes freedom of speech and the right to assemble. Jonathan Montanez took personal advantage of what was supposed to be a peaceful protest that day, to engage in criminal activity," said FBI Minneapolis Special Agent in Charge, Michael Paul. "The FBI will continue to work closely with our state, local and federal law enforcement partners and prosecutors to protect our citizens' right to engage in lawful protest from individuals seeking to engage in violence and criminal activity."
This case was investigated by the Federal Bureau of Investigation and the Fargo Police Department, and was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
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Monongalia County man sentenced for firearms chargeRead the Press Release
LARKSBURG, WEST VIRGINIA – Marquise Hicks, of Morgantown, West Virginia, was sentenced today to 60 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Hicks, 27, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Offense” in November 2020. Hicks admitted to having a 9mm pistol while in possession of marijuana in August 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Monongalia County Probation Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mission Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on March 29, 2021, by U.S. Magistrate Judge Mark A. Moreno.
Nicholas Miles Ten Fingers, age 27, was sentenced to 12 months in federal prison, one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Ten Fingers was indicted by a federal grand jury on September 9, 2020. He pled guilty on January 28, 2021.
The conviction stemmed from an incident that occurred on July 25, 2019, in Todd County, South Dakota. On that date, Ten Fingers cut a man with a knife.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Ten Fingers was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Man and Woman Charged in Violent Twin Cities Carjacking SpreeRead the Press Release
Acting United States Attorney W. Anders Folk today announced a federal indictment charging JEREMIAH LEE IRONROPE, 24, and KRISANNE MARIE BENJAMIN, 25, with multiple carjackings occurring across the Twin Cities. IRONROPE was also charged with using, carrying and brandishing a firearm, during and in relation to a crime of violence, during one of the carjackings. IRONROPE made his initial appearance today before Magistrate Judge Becky Thorson in U.S. District Court. BENJAMIN made her initial appearances in U.S. District Court on March 25, 2021.
According to the allegations in the indictment, on July 26, 2020, IRONROPE and BENJAMIN, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2008 Lexus ES350. On August 7, 2020, IRONROPE and BENJAMIN, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2018 Chevrolet Tahoe. On August 28, 2020, IRONROPE and BENJAMIN, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2017 Audi A4. On December 20, 2020, IRONROPE, using force, violence, and intimidation, with the intent to cause serious bodily harm, stole a 2015 GMC Terrain. During the August 28 carjacking incident, IRONROPE brandished a firearm, namely a Remington 870 12-gauge shotgun, with a sawed-off barrel.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the St. Paul Police Department, the Maple Grove Police Department, the Richfield Police Department, the Edina Police Department, the Roseville Police Department, and the Minnesota State Patrol.
This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
JEREMIAH LEE IRONROPE, 24
Minneapolis, Minn.
Charges:
- Carjacking, 4 counts
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
KRISANNE MARIE BENJAMIN, 25
Minneapolis, Minn.
Charges:
- Carjacking, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minneapolis Felon Charged with Possession of Multiple FirearmsRead the Press Release
Acting United States Attorney W. Anders Folk today announced federal charges against BRANDON MARCEL THOMAS, 33, for illegal possession of firearms. THOMAS made his initial appearance on April 1, 2021, before Magistrate Judge Becky Thorson in U.S. District Court. Earlier today, Magistrate Judge Thorson ordered THOMAS to remain in custody pending further proceedings.
According to the allegations in the criminal complaint, in March 2021, Minneapolis Police officers received information that THOMAS was engaged in drug and firearms trafficking. Officers executed a search warrant at a storage locker in Minneapolis that had been leased by THOMAS since approximately October 2020. Officers recovered from the storage locker a suitcase with a luggage tag in THOMAS’s name showing travel on February 28, 2021, from Las Vegas to Minneapolis. Officers also recovered approximately 1,050 Oxycodone pills and seven firearms, including a rifle and six pistols.
Because THOMAS has prior felony convictions, including a 2009 carjacking conviction in the District of Minnesota, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
BRANDON MARCEL THOMAS, 33
Minneapolis, Minn.
Charges:
- Felon in possession of firearms, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of the Isleta Pueblo pleads guilty to federal assault chargeRead the Press Release
ALBUQUERQUE, N.M. – Stephen Johnson, 35, of the Pueblo of Isleta, pleaded guilty in federal court today to domestic assault by a habitual offender in Indian Country.
A grand jury indicted Johnson on Sept. 10, 2020. In his plea agreement, Johnson admitted to committing the offense on the Pueblo of Isleta on July 1, 2019. Johnson assaulted Jane Doe 2, his girlfriend at the time, after he had returned home from drinking. While Jane Doe 2 was packing her belongings to leave, Johnson threw a child’s chair at her, hitting her and bouncing off her and hitting Jane Doe 1 on the head, causing a small laceration above Jane Doe 1’s eyebrow.
Johnson is currently in custody pending sentencing. He faces up to five years in prison.
The Isleta Police Department investigated this case. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Maryland Man Facing Federal Charge for Fraudulently Obtaining a $1.5 Million Paycheck Protection Program Loan and Attempting to Obtain at Least Two Additional Fraudulent Covid-19 Relief LoansRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Rudolph Brooks, Jr., age 45, of Cheltenham, Maryland, on the federal charge of wire fraud. In addition, law enforcement obtained warrants authorizing the seizure of more than $2.2 million held in various bank accounts, as well as a 2018 Tesla Model 3. The criminal complaint was filed on March 29, 2021 and was unsealed following Brooks’s arrest on April 2, 2021.
The criminal complaint and seizures were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG); Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
As detailed in the affidavit filed in support of the criminal complaint, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic consequences of COVID-19. The CARES Act authorized up to $659 billion in forgivable loans to small businesses for employee retention and certain business expenses through the Paycheck Protection Program (“PPP”). The business must use PPP loan proceeds on payroll costs, mortgage interest, rent, and utilities. Initially, the program allowed the principal to be forgiven if the business spent the loan proceeds on qualifying expenses within eight weeks of loan issuance and used at least 75 percent of the loan for payroll. On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 went into effect. This law extended the period from eight weeks to 24 weeks that the loan proceeds had to be spent and reduced the requirement that the loan proceeds be spent on payroll from 75 percent to 60 percent. An Economic Injury Disaster Loan (“EIDL”) is an SBA-administered loan designed to provide assistance to small businesses that suffer substantial economic injury as a result of a declared disaster. An EIDL helps businesses meet necessary financial obligations that could have been met had the disaster not occurred. It provides relief from economic injury that the disaster caused and permits businesses to maintain a reasonable working capital position during the period that the disaster affected. In March 2020, the SBA issued an EIDL declaration making EIDL loans available to small businesses to help alleviate economic injury caused by COVID-19.
Brooks is the owner of Cars Direct by Gavawn HWD Bob’s Motors (Cars Direct), the stated purpose of which was to purchase and sell cars. Cars Direct was incorporated with the Maryland State Department of Assessments and Taxation (SDAT) on October 29, 2010. Cars Direct was forfeited on October 1, 2012 and subsequently revived on May 28, 2020. Brooks is listed as the resident agent with SDAT.
The affidavit alleges that, on May 9, 2020, Brooks applied for a PPP loan on behalf of Cars Direct in the amount of $1,556,589. In support of the Cars Direct PPP loan application, Brooks allegedly submitted fraudulent tax forms which allegedly reported $724,469 in payments via Forms 1099-MISC and $7,471,630 in total unemployment payments to employees from Cars Direct. However, as detailed in the affidavit, IRS records do not reflect any tax filings made by Cars Direct for any tax period, indicating that Cars Direct has not hired employees or paid unemployment taxes. Additionally, the Maryland Department of Labor has no record of Cars Direct paying wages or of Brooks receiving wages.
On April 7, 2020, Brooks allegedly submitted an EIDL loan application on behalf of Cars Direct that contradicted the information and supporting documentation Brooks submitted for Cars Directs’ PPP loan application. The EIDL application on behalf of Cars Direct allegedly stated that the company’s gross revenue was $148,000 and cost of goods sold was $82,293 in the one year period prior to COVID-19 being declared a disaster, which is inconsistent with a business that can support average monthly payroll costs of $622,635 or annual payments of $7,471,630 as Brooks reported on the PPP loan application and supporting fraudulent tax documents.
On May 9, 2020, Cars Directs’ PPP loan was approved and $1,556,589 was subsequently deposited into a bank account which has Brooks listed as the sole signer on the account. Prior to the deposit of the PPP loan funds, payroll payments or payroll taxes were absent from this account. According to the affidavit, Brooks allegedly opened another bank account in the name of Payroll by BJM, into which he transferred $500,000 of PPP loan funds. Brooks also then registered Payroll by BJM with SDAT, listing himself as resident agent. Although the name Payroll by BJM creates the appearance that the account is associated with a payroll company, there has been no payroll or payroll-related expenses paid from this account. Brooks also opened additional accounts in the name of Cars Direct, into which he transferred PPP loan funds.
After the deposit of PPP loan funds, Brooks initiated numerous transfers of PPP loan funds from the Cars Direct accounts to his personal bank accounts. Records revealed that Brooks used the PPP loan funds for personal expenditures including credit card bills, purchases at restaurants, retail stores, grocery stores, and automotive auctioneers, and mortgage payments for Brooks Cheltenham residence.
Beginning May 22, 2020, Brooks used PPP loan funds from the Cars Direct account and his own personal account to purchase of 39 used automobiles (including a 2017 Mercedes Benz S Class, two 2017 Infinity Q50s, a 2015 Cadillac Escalade, a 2005 Bentley Continental, a 2018 Tesla Model 3, a 2014 GMC Yukon XL, and several older model luxury vehicles. Under the terms of the PPP loan program, the purchase of these vehicles is not an appropriate use of loan funds.
According to the affidavit, on July 30, 2020, Brooks initiated a wire transfer from his personal account to Tesla Motors for $60,407, which was used to purchase a 2018 Tesla Model 3. “Rudolph Brooks” was listed as the customer for this vehicle, and a District of Columbia driver’s license was on file for a close relative of Brooks. Records from the State of Maryland reflect that the Tesla Model 3 was registered in Brooks’s name at Brooks’s Cheltenham residence.
Finally, on August 13, 2020, Brooks initiated two wire transfers from one of the Cars Direct accounts for $144,343 and $2165 to a title company regarding a property in Baltimore, Maryland. At the time of the wire transfers, $133,669.54 in funds from the Cars Direct PPP loan remained in the Cars Direct account. Real estate deeds filed with the State of Maryland show that the Baltimore property was purchased by Madaro, LLC (Madaro) for $148,500. Madaro was registered with the District of Columbia on August 8, 2019 and Brooks was listed as the resident agent of the company. Brooks executed an Auction Contract of Sale on June 18, 2020 to purchase the Baltimore property.
In addition, seizure warrants authorized the seizure of up to $2,296,136.86 from eleven bank accounts and the 2018 Tesla Model 3 described above. The affidavit in support of the seizure warrants alleges that these funds and vehicle constitute or are derived from the proceeds traceable to false statements made on bank loan applications.
If convicted, Brooks faces a maximum sentence of 20 years in federal prison for wire fraud followed by three years of supervised release. 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.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FDIC OIG, the IRS-CI, the FBI, and the SBA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney and Jessica Collins, who are prosecuting the case.
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Manchester Woman Pleads Guilty to Possession of Ammunition by a Convicted FelonRead the Press Release
CONCORD - Robin Stephan, 43, of Manchester, pleaded guilty in federal court to possession of ammunition by a convicted felon, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 21, 2019, the Manchester Police Department responded to a call of a theft from a motor vehicle. After receiving a description of the suspect, police officers stopped and spoke with Stephan who denied involvement in the theft. As the officers spoke with Stephan, she rummaged through her backpack. The officers observed ammunition and a magazine within Stephan’s backpack. As a convicted felon, Stephan is prohibited from possessing ammunition under federal law.
Stephan is scheduled to be sentenced on June 17, 2021.
“In order to keep our community safe, it is important to keep guns and ammunition out of the hands of criminals,” said Acting U.S. Attorney Farley. “I am grateful to the officers of the Manchester Police Department whose good work resulted in this federal prosecution.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
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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Knoxville Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Benjamin Alan Carpenter, also known as “Abu Hamza,” 31, was arrested on March 24, 2021, in Knoxville following the return of a federal grand jury indictment charging him with attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. A detention hearing was held today, April 5, 2021, before U.S. Magistrate Judge Debra C. Poplin. Carpenter remains detained pending the outcome of the detention hearing. Carpenter’s trial is set for June 1, 2021, before United States District Judge Katherine A. Crytzer.
Carpenter is a United States citizen who resides in Knoxville. According to documents filed with the Court, Carpenter is the leader of Ahlut-Tawhid Publications, an international organization dedicated to the translation and publication of pro-ISIS and official ISIS media in English. Carpenter was also in contact with an individual who he believed was associated with ISIS; however, unbeknownst to Carpenter, the individual was a covert FBI employee. Carpenter provided English-language translations of ISIS media content to that individual for use by ISIS.
The indictment and arrest were announced by John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice, Francis M. Hamilton III, Acting United States Attorney for the Eastern District of Tennessee; and Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation. The case was investigated by the Knoxville Joint Terrorism Task Force, which is comprised of federal, state, and local law enforcement agencies, including the Tennessee Bureau of Investigation, Tennessee Highway Patrol, Clinton Police Department, and Knoxville Police Department.
If convicted, Carpenter faces up to 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge. In all cases, defendants are presumed innocent until and unless proven guilty; indictments merely contain allegations supported by probable cause.
The government is represented by Assistant U.S. Attorney Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorneys George C. Kraehe and Felice John Viti of the National Security Division’s Counterterrorism Section.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
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Jury convicts former chairwoman of Montana Native Women’s Coalition of stealing federal grant fundsRead the Press Release
BILLINGS — A federal jury on April 2 convicted the former chairwoman of the Montana Native Women’s Coalition of crimes related to unapproved spending of federal grant funds, including travel to Las Vegas, Nevada, Acting U.S. Attorney Leif Johnson said.
The jury found Meredith McConnell, 51, of Lame Deer, guilty of theft from a program receiving federal funding, wire fraud and false claims as charged in a superseding indictment. The five-day jury trial began on March 29. McConnell faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided and continued McConnell’s release pending further proceedings. A sentencing date is pending.
“Despite receiving training on financial oversight, conflicts of interest and ethics, Meredith McConnell stole grant funds intended to help Native American victims of violence and used the money for unauthorized travel and her own benefit,” Acting U.S. Attorney Johnson said. “Our office will hold accountable and prosecute those who misuse grant funds. I want to thank Assistant U.S. Attorneys Ryan Weldon and Bryan Dake and the Department of Justice Office of the Inspector General for investigating and prosecuting this case.”
“Instead of using grant money to help Native American victims of domestic and sexual violence, McConnell stole those grant funds for her own benefit including to pay for lavish travel and gifts. The Department of Justice Office of the Inspector General will investigate and bring to justice anyone who tries to steal Department of Justice grant funds,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
In court documents and in evidence presented at trial, the government alleged that beginning in about August 2017, McConnell, along with others, misappropriated federal grant funds to hand out cash payments to others, to buy purses and earrings as door prizes, to meet in Las Vegas, a trip that cost $31,744, and to receive double payments for meals. Prosecutors alleged that during a four-month period, McConnell was responsible in the misappropriation of more than 10 percent of grant funds designed to help address violence on Indian reservations in Montana.
The government further alleged the thefts occurred four months after board officials, including McConnell, participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director pleaded guilty to fraud in March 2017 for stealing from the organization.
The Coalition is a Lame Deer-based organization that helps Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services. OVW awarded the Coalition $318,008 from October 1, 2017 to September 30, 2018.
Co-defendants Sheryl Lynn Lawrence, of Colstrip, who was the Coalition’s executive director, and Barbara Mary Daychief, of Browning, who was a Coalition board member, both pleaded guilty to theft of federal funds and are pending sentencing.
Assistant U.S. Attorneys Ryan Weldon and Bryan Dake are prosecuting the case, which was investigated by Department of Justice Office of the Inspector General.
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Individual Pleads Guilty in Brooklyn Federal Court to Extorting Cryptocurrency from Startup CompanyRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Hlady pled guilty before United States Chief District Court Judge Margo K. Brodie to conspiring to extort a startup company for millions of dollars in the cryptocurrency Ether (ETH). When sentenced, Hlady faces up to 20 years in prison, as well as a fine.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“Hlady and his co-conspirator used strong-arm tactics to shake down a startup company of cryptocurrency and will now face punishment just like anyone else who extorts a business,” stated Acting United States Attorney Lesko. “This Office and its law enforcement partners are committed to protecting businesses from extortion in whatever manner it is perpetrated.” Mr. Lesko thanked the Federal Bureau of Investigation, New York Field Office, for their outstanding work on the case.
As set forth in court filings and at today’s proceeding, the victim company (“Company”) was a startup mobile-based business that issued cryptocurrency tokens such as Ether as loyalty rewards for generating user traffic to its clients’ products. To raise capital, the Company planned to conduct an Initial Coin Offering (“ICO”) in November 2017. In connection with the ICO, Hlady told the Company’s executives that he had been a part of the Irish Republican Army, the National Security Agency, the Central Intelligence Agency and the Federal Bureau of Investigation; that he had been shot at and had killed people; and that he had “taken down” a head of state. In March 2018, Hlady and his co-conspirator Steven Nerayoff issued threats to Company executives that included destruction of the Company if it did not agree to demands for additional funds and Company tokens. On March 28, 2018, Hlady sent a text message to a Company executive stating, in part, “I promise I will destroy your community” if the Company did not comply with the demands. As a result of this threat, the Company transferred 10,000 ETH to Nerayoff.
Nerayoff has entered a plea of not guilty to extortion charges and is awaiting trial.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Andrey Spektor are in charge of the prosecution.
The Defendant:
MICHAEL HLADY (also known as “Michael Peters”)
Age: 48
East Greenwich, Rhode IslandE.D.N.Y. Docket No. 20-CR-8 (MKB)
Huron Man Charged with Failure to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Huron, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Patrick Red Legs, age 27, was indicted on March 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years, and up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between May 31, 2020, and September 16, 2020, Red Legs, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration as required by law.
The charge is merely an accusation and Red Legs is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Red Legs was remanded to the custody of the U.S. Marshals Service pending trial. A trial date of June 8, 2021, has been set.