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5 April 2021
Harrisburg Man Sentenced to 144 Months’ Imprisonment on Firearms and Witness Tampering OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Richard Earl Davis, age 28, of Harrisburg, Pennsylvania, was sentenced on April 1, 2021, to 144 months' imprisonment by U.S. District Court Judge Jennifer Wilson, for aiding and abetting straw purchase of firearms, witness tampering, and discharge of a firearm in furtherance of drug trafficking.
According to Acting U.S. Attorney Bruce D. Brandler, Davis was involved in a conspiracy in which an individual would purchase firearms that were ultimately sold to persons prohibited from possessing them, to include felons and drug dealers. After his arrest, Davis contacted a witness and told her how to testify at his upcoming bail hearing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys James Clancy and Scott Ford prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
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Greenwood, Indiana, Man Sentenced to 30 Years in PrisonRead the Press Release
FORT WAYNE—Dewayne Lewis, age 46, of Greenwood and Fort Wayne, Indiana, was sentenced by United States District Judge Theresa L. Springmann after being found guilty at a bench trial for possessing more than five kilograms of cocaine with the intent to distribute, announced Acting U.S. Attorney Gary T. Bell. This case was prosecuted in the Fort Wayne Division of the Northern District of Indiana, and the defendant was sentenced in Hammond, Indiana.
Lewis was sentenced to 360 months in prison, followed by 5 years of supervised release.
According to documents in this case, Lewis was distributing large quantities of cocaine and marijuana for a drug trafficking organization operating in northeast Indiana, who obtained their drug supply from a Mexican cartel. Utilizing tractor trailers, the organization transported hundreds of kilograms of cocaine and marijuana from the border area in McAllen, Texas, and offloaded the drug shipments in a warehouse in Angola, Indiana. Lewis and others then distributed the drugs in multi-kilogram amounts to a network of dealers in Indiana, Ohio, and Michigan. After a series of drug raids in northeastern Indiana, northwestern Ohio, and southern Texas in January of 2015, Lewis assisted the organization’s leader with this leader’s temporary escape to Mexico, and Lewis took over this leader’s role in collecting substantial drug proceeds and coordinating their ongoing distribution efforts. This leader was arrested in March of 2015, and he and others were prosecuted in separate cases.
On February 1, 2015, Lewis obtained approximately 20 kilograms of cocaine and over one million dollars in cash from a hidden area in a stash location in Butler, Indiana. Lewis continued collecting money from many of the organization’s major drug customers in preparation for sending money shipments back to Mexico. Law enforcement officers located Lewis at a motel in Greenwood, Indiana, on February 3, 2015, and officers obtained a search warrant for this motel room. Upon serving the search warrant, officers located Lewis in the room with approximately 20 kilograms of cocaine and a total of approximately $2.089 million in cash. The fingerprints of Lewis were recovered from some of the money packaging, and Lewis confessed to his involvement in the drug distribution operation.
“Collaboration between the FBI’s Safe Streets Gang Task Force and its law enforcement partners - the Indiana State Police, Fort Wayne Police Department and the Allen County Police Department - was key to removing not only this violent individual from our community, but the destructive poison he was moving with the intent to distribute in our neighborhoods,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The dedicated work of all involved has ensured our state is a safer place for all to live, work, and visit.”
Great assistance was also provided by the McAllen, Texas, and Toledo, Ohio, offices of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service in both the Northern and Southern Districts of Indiana; along with the Auburn Police Department, the Greenwood Police Department, the Kendallville Police Department, the Johnson County Sheriff’s Department, the Indiana Multi-Agency Group Enforcement (IMAGE) representing law enforcement in DeKalb, LaGrange, Noble and Steuben Counties, and the Northeast Indiana SWAT.
This case was investigated by the Federal Bureau of Investigation; the FBI Fort Wayne Safe Streets Task Force; the Indiana State Police; the Allen County Sheriff’s Department; the Fort Wayne Police Department; the IMAGE Drug Task Force; the Auburn Police Department; the Kendallville Police Department; the Greenwood, Indiana, Police Department; the Johnson County, Indiana, Sheriff’s Department; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Johnson County Prosecuting Attorney’s Office; and the DeKalb County Prosecuting Attorney’s Office. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey Speith.
Former Maryland Motor Vehicle Employee Facing Federal Indictment for Illegal Production of Fraudulent Driver’s Licenses, Aggravated Identity Theft, and BriberyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Marion Rose Payne, age 54, of Harwood, Maryland, on the federal charges of conspiracy to produce and transfer identification documents produced without lawful authority, the production and transfer of identification documents produced without lawful authority, aggravated identity theft, and bribery concerning programs receiving federal funds. The indictment was returned on March 31, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to the indictment, from July 2015 to March 2016, Payne conspired with Antonio Portillo, age 35, of Manassas, Virginia to produce and transfer Maryland driver’s licenses while she was employed with the Maryland Motor Vehicle Administration (MVA). Payne allegedly agreed to illegally produce, transfer, and sell Maryland driver’s licenses to unlawful applicants provided by Portillo. According to the indictment, at Portillo’s direction, applicants were directed to Payne’s workstation at the MVA Largo Branch to obtain illegally produced and fraudulent driver’s licenses. Payne allegedly received payment for each fraudulently issued driver’s license. Payne is no longer employed by the MVA.
As detailed in the indictment and other court documents, prospective applicants paid Portillo thousands of dollars for each fraudulently issued driver’s license and additional funds for making the arrangements to obtain the illegal license. Payne received names, addresses, and other information that applicants wished to appear on their Maryland driver’s license. Portillo allegedly provided the information to Payne along with other fraudulent documents necessary to receive a driver’s license, including proof of tax payment for a two-year period, proof of Maryland residence, and an identification document. Portillo also allegedly gave Payne, or caused Payne to be given, fraudulent documents purporting to show the applicants’ Virginia driver’s license numbers. In fact, the Virginia driver’s license numbers depicted on the documents belonged to other real individuals who were not the applicants. The indictment alleges that, using the information provided by Portillo, Payne produced and transferred, or caused to be produced and transferred, Maryland driver’s licenses produced without lawful authority to the applicants at the MVA Largo Branch.
According to the indictment, on January 7, 2016, Payne allegedly produced and transferred six fraudulent Maryland driver’s licenses, including licenses for three individuals that used the identity information of two victims. The license for individual 1 was allegedly fraudulently based on the Virginia driver’s license belonging to Victim 4. The licenses for the remaining two individuals were allegedly fraudulently based upon the Virginia driver’s license belonging to Victim 1. The indictment also claims that Payne met with Portillo and other individuals in the parking lot of the MVA Largo Branch. Between January 7, 2016 and February 11, 2016 Payne allegedly created 35 fraudulent driver’s licenses, at least nine of which were based on the Virginia driver’s license numbers of at least five victims.
Antonio Portillo, age 35, of Manassas, Virginia, previously pleaded guilty to his role in the scheme. He has not yet been sentenced.
Maryland Department of Transportation MVA Administrator Chrissy Nizer stated, “Following the April 2016 investigation, MDOT MVA immediately cancelled all of the fraudulent licenses in question. Additionally, we implemented system changes to prevent the unlawful production and transfer of licenses and retrained staff to reinforce proper protocols. MDOT MVA has a zero tolerance policy for fraud, and we take pride in maintaining the highest standards in the interest of safety on Maryland roads.”
If convicted, Payne faces a maximum sentence of 15 years in federal prison for the conspiracy and for production and transfer of identification documents produced without lawful authority; a maximum of 10 years in federal prison for bribery involving an agent of a program receiving federal funds; and a mandatory sentence of two years in federal prison, consecutive to any other sentenced imposed, for aggravated identity theft. The government is also seeking forfeiture of $138,000. 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. Payne is expected to have an initial appearance in U.S. District Court in Greenbelt at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI for their work in the investigation and thanked the Maryland Motor Vehicle Administration Investigation and Security Services for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Kelly O’Connell Hayes who is prosecuting the case.
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Fitchburg Woman Sentenced for Social Security, MassHealth and Food Stamp FraudRead the Press Release
BOSTON – A Fitchburg woman was sentenced today in federal court in Worcester for fraudulently receiving Social Security disability benefits, MassHealth and Supplemental Nutrition Assistance Program (SNAP) benefits.
Rhonda Bernal, 62, was sentenced by U.S. District Court Judge Timothy S. Hillman to one month of home confinement and two years of probation. Bernal also was ordered to make restitution to the Social Security Administration, MassHealth, and the Massachusetts Department of Transitional Assistance. In December 2020, Bernal pleaded to three counts of theft of public funds and two counts of making false statements.
Over a period of approximately eight years, Bernal stole $71,462 in Social Security benefits, $6,444 in MassHealth benefits and $13,505 in SNAP benefits (previously known as Food Stamps). In February 2015, Bernal falsely informed the Massachusetts Department of Transitional Assistance that she was the only person in her household when, in fact, she was living with her husband. In addition, Bernal falsely told Social Security in April 2016 that she and a relative, who was not her husband, were the only members of her household.
Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Federal Correctional Officer Indicted in Connection with Plan to Smuggle Drugs into PrisonRead the Press Release
Ocala, FL – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Wayne Grant, Jr. (27, Orlando) with receipt of a bribe by a public official. If convicted, Grant faces a maximum penalty of 15 years in federal prison.
According to court documents, Grant worked as a correctional officer at Coleman Federal Correctional Complex in Sumter County. In December 2020, Grant agreed to smuggle methamphetamine into the prison for an inmate in exchange for money. Once federal authorities were notified, Grant unwittingly began contacting an undercover agent in order to complete the transaction.
Federal agents mailed approximately 70 grams of fake methamphetamine and $2000 in money orders to a post office where Grant had requested the drugs be sent. Grant was observed retrieving the package from the post office and later deposited the money orders into his bank account. Subsequently, during his assigned shift on February 4, 2021, Grant smuggled the contraband into FCC Coleman and provided it to an inmate.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice, Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service.
Duplin County Drug Trafficker Who Brandished a Firearm at Deputy Sentenced to 18 Years in PrisonRead the Press Release
RALEIGH, NC- Jorge Zapata Castro, 52, of Duplin County, was sentenced today to 216 months in prison for Possession with Intent to Distribute Five Grams or More of Methamphetamine, Brandishing a Firearm in Furtherance of a Drug Trafficking Crime and Possession of a Firearm by an Illegal Alien.
According to court documents and evidence presented in court, on July 22, 2019 a Duplin County Sheriff’s Deputy observed Zapata Castro leaving a known drug house. The deputy conducted a traffic stop after Zapata Castro crossed the center line multiple times in the area of North Carolina Highway 241 in Duplin County. Zapata Castro informed the deputy that he did not have a driver’s license. While the deputy was conducting his investigation, Zapata Castro fled at high rate of speed. During the chase that ensued, Zapata Castro leaned out of the window of his vehicle and pointed a Smith and Wesson .40 caliber handgun at the deputy. Then, Zapata Castro lost control and crashed his vehicle into a person’s yard at the intersection of Old NC 24 and Wagon Ford Road. Zapata Castro exited the vehicle and then pointed the Smith and Wesson at the deputy again before fleeing on foot. Additionally, Zapata Castro then stole a vehicle from a nearby residence from someone who was washing the car. Zapata Castro was ultimately apprehended in a bean field a short time later.
During a search of Zapata Castro deputies found a loaded handgun and methamphetamine. Detectives also searched the truck that Zapata Castro had wrecked and found 34 grams of methamphetamine and $1,550 in U.S. currency. Zapata Castro was illegally in the country at the time of his arrest and had been previously deported therefore he was prohibited from possessing the handgun.
The investigation was part of OCDETF Operation “Fighting Jellyfish”. An Organized Crime Drug Enforcement Task Force operation 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.
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 Drug Enforcement Administration, Bureau of Alcohol, Tobacco Firearms and Explosives, Department of Homeland Security, and the Duplin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo 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. 7:19-cr-00130-D-1.
Dominican National Admits to Trafficking Fentanyl, Health Care Fraud, ID TheftRead the Press Release
PROVIDENCE – A Dominican national living in Pawtucket faces between seven and fifty-seven years in federal prison after admitting to a federal court judge that in addition to operating a drug stash house and arranging for the sale of fentanyl on at least four occasions, he used the identity of an individual unknown to him, including the person’s Social Security number and other personal identifying information, to gain Rhode Island Medicaid benefits and Rhode Island driver’s licenses and permits.
According to information presented to the court, since 2010, Jeurin Celado, a/k/a “Tony,” 30, used the name, date of birth, and Social Security number of a person he does not know to gain permits and driver’s licenses from the Rhode Island Department of Motor Vehicles (DMV). Celado’s most recent successful filing with the DMV using the stolen identity occurred on August 5, 2019.
Additionally, beginning in August 2014 and continuing through July 2018, Celado used the same stolen identity, Social Security number, and date of birth to obtain Rhode Island Medicaid benefits, health insurance that as a non-United States citizen he was not eligible to receive. Celado obtained Medicaid benefits valued at approximately $4,342.18.
In 2019, Celado was the target of an undercover drug investigation by the Woonsocket Police Department. The investigation revealed that on four occasions – August 28, September 3, September 10, and September 17, 2019, an individual contacted Celado, whom that individual knew by the name of “Tony,” to arrange the purchase of fentanyl. On each of these occasions, Celado directed the person to a location where that person was met by a “runner” who sold him the drugs in exchange for cash.
On October 7, 2019, law enforcement executed a court-authorized search of an apartment in Manville used by Celado as a stash house, where he stored, cut, and packaged fentanyl he sold as part of his drug operation. Investigators located between 40 and 400 grams of fentanyl in the apartment, along with other items consistent with a drug distribution operation.
Appearing on Friday before U.S District Court Judge William E. Smith, Celado pleaded guilty to false representation of a Social Security number, aggravated identity theft, health care fraud, and conspiracy to distribute fentanyl, announced Acting United States Attorney Richard B. Myrus, Woonsocket Police Chief Thomas Oates, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General.
At sentencing on July 9, 2021, Celado faces statutory penalties of 5-40 years imprisonment for conspiracy to distribute fentanyl; up to 10 years imprisonment for health care fraud; up to five years imprisonment for false representation of a Social Security number; and a mandatory sentence of two years imprisonment for aggravated identity theft, to be served consecutive to all other sentences imposed in this case. In total, Celado faces between seven and fifty-seven years imprisonment to be followed by five years of federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
Acting United States Attorney Myrus acknowledges and thanks the United States Marshals Service for its assistance in locating the defendant.
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Dominican Man Sentenced to 75 Months for Participation in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Frailin Manuel Gomez-Gil, 29, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, was sentenced to 75 months in federal prison on Friday for participating in a fentanyl trafficking conspiracy, Acing United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Gomez-Gil participated in a drug trafficking organization that was led by Sergio Martinez. Martinez, who is now serving a 45-year prison sentence, employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Gomez-Gil assisted Martinez with testing, diluting, and packaging the drugs for sale.
Gomez-Gil previously pleaded guilty on November 18, 2020. After serving his prison sentence, he faces likely removal to the Dominican Republic.
“Over the past few years, fentanyl has caused tremendous damage to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “Together with our law enforcement partners, we are fighting back against the organizations that distribute this deadly substance in the Granite State. Drug traffickers who seek to profit from selling opioids in the Granite State will be prosecuted and sent to federal prison.”
“The state of New Hampshire is faced with an opioid crisis unlike ever before,” said Drug Enforcement Administration Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service-Criminal Investigations; Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. MacDonald and Seth R. Aframe.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Defendant Sentenced for Online ThreatsRead the Press Release
PHOENIX, Ariz. – Austin Ryan Steinbart, 30, of Chandler, Arizona, was sentenced today by United States District Judge Steven P. Logan to a sentence of time served. At the time of sentencing, Steinbart had served 225 days in prison. Steinbart previously pleaded guilty to Interstate Communications with Intent to Extort, a Class E felony.
Between March 21 and 23, 2020, Steinbart made threats to degrade and destroy the operations of a file storage and file sharing company through videos and posts on his YouTube channel after the company suspended his account. Steinbart directed his thousands of YouTube subscribers to flood the company’s tech support line with fictitious emails and phone calls in an attempt to hinder the company’s ability to operate.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution.
CASE NUMBER: CR-20-0485-PHX-SPL
RELEASE NUMBER: 2021-021_Steinbart# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Convicted Fraudster Indicted for Providing False Information on Government-Backed Home Loan ApplicationRead the Press Release
PROVIDENCE – A North Providence woman, serving a term of federal supervised release for having conspired to use the stolen personal identity information of numerous individuals to steal nearly $400,000 from the United States Treasury, has been indicted by a federal grand jury for allegedly making false statements related to her incarceration and the court-ordered requirement that she pay back the stolen money when she applied for a U.S. Federal Housing Administration-backed home mortgage.
It is alleged that Juliana Martins, 52, in June 2019, falsely represented on a home loan application, and in July 2019 on a closing document, that there were no outstanding judgements against her, when in fact she is under court order to pay restitution to the government totaling $385,533.58.
According to the indictment, when responding to requirements to truthfully disclose to the bank her credit report, assets, liabilities, and income, Martins falsely stated to the bank that “the reason I have a job gap in my employment was because I was away on a family emergency for over two years,” when in fact during that time she was incarcerated in federal prison. Additionally, it is alleged, Martins provided a false explanation for an inquiry from the Department of Justice on her credit report.
In March 2014, Martins pleaded guilty to conspiracy to embezzle United States Treasury checks, theft of government property, and aggravated identity theft, admitting that she was a leader of a criminal enterprise that possessed hundreds of people’s personal identifying information that was used to open bank accounts into which fraudulently obtained government checks were deposited. Martins was sentenced in September 2014 to serve 48 months in federal prison to be followed by three years of federal supervised release.
On Friday, a federal grand jury returned an indictment charging Martins with making false statements on bank loan applications, announced Acting United States Attorney Richard B. Myrus and Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development - Office of Inspector General.
The indictment requires, upon conviction, that Martin forfeit to the government her interest in her North Providence house and property.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Martins is scheduled to appear before U.S. District Court Magistrate Judge Patricia A Sullivan on Tuesday for a supervised release violation hearing.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Claremont Couple Plead Guilty to Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
CONCORD - William Cote, 49, and Kelly Cote, 52 of Claremont, pleaded guilty in federal court to conspiracy to defraud the Internal Revenue Service (IRS), Acting United States Attorney John J. Farley announced today.
According to the information and plea agreements, from 2011 through 2016, the Cotes filed false tax returns using the identities of Kelly’s sons and William’s stepsons, J.E. and T.E. While J.E. was deployed overseas for the United States military, the Cotes prepared a false tax return for tax year 2011 using his identity. While T.E. was stationed overseas for the United States military, the Cotes prepared and filed false tax returns for tax years 2012 through 2015 using his identity. To obtain larger refunds, the Cotes falsely listed J.E. and T.E. as head of household on the false tax refunds for these returns and deposited the money into their own joint bank account.
In February 2013, while T.E. was stationed overseas, the IRS audited the false 2012 tax return the Cotes filed using T.E.’s identity. On May 6, 2013, in a phone call with the auditor, William impersonated T.E. and “confirmed” the details in the false 2012 tax return. That same day, to support the false tax return, the Cotes prepared and faxed the auditor lease agreement that falsely stated that T.E. rented William and Kelly’s home. Kelly forged T.E.’s signature on the lease agreement.
All told, the Cotes received more than $36,700 in fraudulent tax refunds.
Kelly Cote pleaded guilty on March 24, 2021 and is scheduled to be sentenced on June 30, 2021. William Cote pleaded guilty on April 5, 2021 and is scheduled to be sentenced on July 15, 2021.
“Knowingly submitting a fraudulent tax return is a serious federal felony offense,” said Acting U.S. Attorney Farley. “These defendants not only submitted false claims for tax refunds, but supplemented their efforts using lies and a forged document to further their scheme. Those who might be tempted to file fraudulent claims for tax refunds should understand that this illegal conduct can have significant legal consequences.”
“Filing false tax returns is not a victimless crime,” stated Ramsey E. Covington, Special Agent in Charge of Internal Revenue Service-Criminal Investigation. “When the Cotes intentionally filed fraudulent tax returns claiming refunds they were not entitled to, they showed a blatant disregard for the American tax system and left the burden of paying for these fraudulent refunds on the shoulders of the American taxpayers. Hopefully the guilty pleas of William and Kelly Cote demonstrate to the public that protecting taxpayer money is a matter we take very seriously at the IRS.”
This matter was investigated by the Internal Revenue Service-Criminal Investigation, the Social Security Administration Office of the Inspector General, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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Chicago Man Pleads Guilty to Participating in Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man pleaded guilty in federal court today to participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.
NICHOLAS STELLA, 43, pleaded guilty to one count of conspiracy to conduct an illegal gambling business. The charge is punishable by up to five years in federal prison. U.S. District Judge Virginia M. Kendall set sentencing for June 22, 2021, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Terry Kinney, Ankur Srivastava, and Abigail Peluso.
The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.
Stella stated in a plea agreement that from 2016 to 2019 he conspired with bookmaker VINCENT DELGIUDICE, also known as “Uncle Mick,” and others to accept wagers on the outcome of professional and collegiate sporting events. Stella admitted in the plea agreement that he recruited gamblers for Delgiudice’s operation and regularly met with them to pay out winnings or collect on losses. During the conspiracy, Stella communicated with Delgiudice via text messaging and phone calls, the plea agreement states. In a text exchange in December 2018, Stella stated to Delgiudice, “Between my two big losers in Minnesota, they’ve dumped 73k,” according to the plea agreement. In another text exchange cited in the plea agreement, Stella asked DelGiudice shortly before the 2019 Super Bowl to contact the gamblers directly in order to “settle up” after the game.
Delgiudice pleaded guilty earlier this year to a money laundering charge and is awaiting sentencing.
Charleston Woman Pleads Guilty to Role in Multi-State Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Melanie Lynne Curnutte, 58, of Charleston, pleaded guilty today to conspiracy to distribute 500 grams or more of methamphetamine. She was charged in an indictment returned by a federal grand jury in September 2019.
According to the plea agreement, between the fall of 2018 and September of 2019, Curnutte conspired with multiple individuals to distribute methamphetamine in the Huntington and Charleston areas. During the conspiracy, Curnutte repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. She relied on multiple individuals from Akron to deliver the methamphetamine to her and she would in turn distribute the methamphetamine to various customers. Curnutte admitted that she was aware some of her customers also intended to distribute the methamphetamine she provided to them.
Curnutte faces 10 years to life in federal prison when she is sentenced on July 6, 2021.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00245.
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Cambridge Woman Charged with Stealing Social Security Benefits and Wire FraudRead the Press Release
BOSTON – A Cambridge woman was arrested today and charged with stealing Social Security benefits and committing wire fraud to receive Supplemental Nutrition Assistance Program (“SNAP”) benefits, formerly known as Food Stamps.
Shirley Buchanan, 66, was indicted on one count of theft of public funds and three counts of wire fraud. She is scheduled to make an initial appearance today before U.S. District Court Magistrate Judge Jennifer Boal this afternoon.
According to the indictment, Buchanan maintained and used two Social Security numbers under two different names, both of which she applied for and received Social Security benefits under. Buchanan also allegedly applied for and received SNAP benefits she was not entitled to using the two names and numbers. As a result, Buchanan stole approximately $184,410 in Social Security benefits from March 1993 through November 2018, as well as approximately $12,916.89 in SNAP benefits from February 2012 through April 2020.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Acting U.S. Attorney Announces Appointment of Former Assistant U.S. Attorney James R. Cho to Serve as Magistrate Judge in Brooklyn Federal CourtRead the Press Release
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, today announced that former Assistant U.S. Attorney (AUSA) James R. Cho has been appointed to serve as a United States Magistrate Judge. He will sit in federal court in Brooklyn. Mr. Cho was sworn in today by United States Chief District Court Judge Margo K. Brodie.
“I am proud that James Cho has been selected to serve as a Magistrate Judge for the Eastern District of New York. James was an excellent AUSA who handled some of our Office’s most difficult and complex cases. I am confident that as a federal judge, James will continue to serve the people of our district with integrity and a keen sense of fairness.”
Mr. Cho served in the Office’s Civil Division for more than 12 years and, most recently, served as the Office’s Chief of Immigration Litigation and Chief of Bankruptcy Litigation. Mr. Cho is a seasoned trial lawyer who litigated numerous complex affirmative and defensive matters.
Mr. Cho also previously served as the Civil Division’s training coordinator, where he was responsible for AUSA training, and on the Office’s hiring and diversity and inclusion committees.
As an AUSA, Mr. Cho represented the United States and its agencies and employees in some of the Office’s most challenging cases. He brought affirmative civil enforcement lawsuits on behalf of the United States resulting in significant recoveries arising from fraud against the government or environmental violations. He defended lawsuits challenging government actions, and employment, constitutional and tort claims against the federal government and its employees. Mr. Cho also argued routinely before the Second Circuit Court of Appeals.
Mr. Cho previously taught a course in government civil litigation as an adjunct professor at Brooklyn Law School and New York University Law School. Mr. Cho also previously served as president of the Korean American Lawyers Association of Greater New York and the Asian American Bar Association of New York.
Before joining the Office, Mr. Cho worked in private practice. He graduated from the University of Minnesota Law School cum laude, and from the University of Michigan with high honors.
Mr. Cho will be the first Korean American to serve on the EDNY bench.
3 April 2021
Federal Defendant Sentenced for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Thursday sentenced a Newville man for conspiracy to possess and distribute methamphetamine and heroin, announced U.S. Attorney Prim F. Escalona and Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
Chief U.S. District Judge L. Scott Coogler sentenced Tavara Gissendanner, 36, of Newville, to 40 years in prison and 20 years of supervised release. Gissendanner was found guilty by a federal jury in August 2020.
“This sentence serves as a warning to every individual involved in dealing illegal drugs,” Escalona said. “My office remains committed to working with our law enforcement partners to bring justice to those who sell dangerous and illegal drugs in our communities.”
“Gissendanner’s sentencing strikes a major blow to this drug trafficking operation that distributed dangerous drugs, including heroin and methamphetamine, throughout Alabama,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “The great relationships and collaboration we have with our law enforcement partners was the key to successfully removing this poison from our streets.”
Evidence at trial proved that in early 2019 Gissendanner directed a network of associates in trafficking quantities of narcotics – including heroin and methamphetamine – and money across the state. Gissendanner orchestrated the drug trafficking while in Alabama Department of Corrections custody, in part by using contraband cellular phones he obtained in prison. Beginning in early 2019, investigators intercepted shipments of drugs to associates of Gissendanner in the Birmingham area. In one instance, investigators replaced seized heroin with mock narcotics before arresting the recipient of the drugs in Bessemer. The intercepted heroin was worth an estimated $150,000. Additional seizures in the case included quantities of methamphetamine, cocaine, heroin-fentanyl mixtures, and cash.
The investigation was conducted through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, which are primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Homeland Security Investigations and the Alabama Law Enforcement Agency investigated the case with the assistance of the Alabama Department of Corrections. Assistant U.S. Attorneys Austin Shutt and Allison Garnett prosecuted the case.
2 April 2021
Zuni man charged with murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Brodie Coonsis, 27, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, appeared in federal court April 1 where he was charged with murder in Indian Country. Coonsis will remain in custody pending a detention hearing scheduled for April 5.
According to a criminal complaint, on Feb. 26 Coonsis allegedly drove his truck to the victim’s home on the Pueblo of Zuni reservation. Coonsis allegedly approached the victim’s door with a firearm and knocked at the door. After the victim answered, Coonsis allegedly shot the victim in the back, then shot him three more times.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Coonsis faces life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Zuni Tribal Police. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Wife of Hawaiian Non-Profit Executive Pleads Guilty Conspiring to Embezzle from AmeriCorpsRead the Press Release
WASHINGTON – Angelita Aipoalani, 42, of Waianae, Hawaii, pled guilty on April 1, 2021 in federal court to conspiring with her husband, Hanalei Aipoalani, to embezzle $69,000 from AmeriCorps and to fraudulently obtain more than $11,000 in AmeriCorps education grants.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Deborah Jeffrey, Inspector General of AmeriCorps, and Eli S. Miranda Special Agent in Charge, FBI Honolulu Field Office.
Angelita Aipoalani pled guilty to conspiracy to embezzle from AmeriCorps. That charge carries a statutory maximum of five years and financial penalties. Under the federal sentencing guidelines, Angelita Aipoalani faces a likely recommended sentence of between six and 12 months in prison. The Honorable Reggie B. Walton took the plea and scheduled sentencing for June 24, 2021.
Hanalei Aipoalani previously pled guilty on March 26, 2021 to embezzlement from AmeriCorps and agreeing to take a bribe relating to CARES Act funds. Both charges carry a statutory maximum of ten years and financial penalties. Under the federal sentencing guidelines, Aipoalani faces a likely recommended sentence of between 70 and 87 months in prison. Hanalei Aipoalani’s sentencing is set for June 24, 2021.
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps’ national service members commit to service for a set period of time, usually a year, in exchange for a living allowance, funding to be used for college tuition, and other benefits.
As part of her plea, Angelita Aipoalani admitted to fraudulently enrolling as an AmeriCorps member for multiple years, even though she did not perform the required AmeriCorps service activities. Angelita Aipoalani also admitted to conspiring with Hanalei Aipoalani to fraudulently obtain AmeriCorps education awards for herself even though she had not performed the required AmeriCorps service.
The Inspector General for AmeriCorps, the FBI, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the AmeriCorps program. If you are aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
In announcing the plea, Acting U.S. Attorney Phillips, Inspector General Jeffrey, and Special Agent in Charge Miranda commended the work of those who investigated the case from the Inspector General for AmeriCorps and the FBI’s Honolulu Field office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia including Assistant U.S. Attorneys Leslie A. Goemaat and Peter Lallas of the Fraud Section, Amanda Vaughn of the Public Corruption and Civil Rights Section, former Assistant U.S. Attorney Bianca Forde and Paralegal Specialists Mariela Andrade, Stephanie Frijas, and Joseph McClanahan.
Warren County Man Sentenced for Threatening North Carolina Court EmployeesRead the Press Release
ALBANY, NEW YORK – Fredrick Eli Knapp, age 52, of Pottersville, New York, was sentenced today to 24 months in prison for interstate transmission of threats to injure another person.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Acting United States Attorney for the Eastern District of North Carolina G. Norman Acker, III; William T. Bowman, Marshal of the Supreme Court of North Carolina; Special Agent in Charge Robert Wells of the Federal Bureau of Investigation (FBI) Charlotte Field Office; and Chief R.E. “Chip” Hawley of the North Carolina State Capitol Police Department.
In November 2019, Knapp sent profanity-laden emails from Warren County, New York, to court employees in North Carolina threatening, among other things, to “kill[] court employees,” and posted a message to the North Carolina court system’s Facebook page threatening to “find a way to get back to that state just to kill people in your courthouses.” He also left a voicemail for a North Carolina police officer stating that police officers “don’t deserve to live.” In response to Knapp’s threats, bomb-detection dogs were dispatched to a North Carolina courthouse.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Knapp’s release from prison.
This case was investigated by the State Marshals of North Carolina Judicial Branch, FBI, and the North Carolina State Capitol Police Department, and was prosecuted by Assistant U.S. Attorney Sebastian Kielmanovich of the United States Attorney’s Office for the Eastern District of North Carolina and Assistant U.S. Attorney Cyrus P.W. Rieck of the United States Attorney’s Office for the Northern District of New York.
Warden Man Pleads Guilty to Child Sex Trafficking and Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Carlos Salgado Velasquez, age 30, of Warden, Washington, pleaded guilty on March 31, 2021 pursuant to a plea agreement to one count of Production of Child Pornography and one count of Child Sex Trafficking. In the plea agreement, Velasquez and the United States agreed to a sentence of 23 years in prison. Senior District Judge Wm. Fremming Nielsen will decide whether to accept the plea agreement during the sentencing hearing set for July 6, 2021.
According to information disclosed during court proceedings, beginning in September 2016 and continuing through September 2018, Velasquez engaged in conduct with four minor female victims within the Eastern District of Washington that constituted both the production of child pornography and child sex trafficking, in violation of federal law. Velasquez admitted that he knowingly took part in sexually explicit conduct with the four minor victims for the purpose of producing visual depictions of the sexually explicit conduct. Velasquez also admitted that he engaged in commercial sex acts with the four minor victims by soliciting them to engage in sexual intercourse with him in exchange for things of value. Velasquez solicited the four victims to engage in commercial sex acts with him by arranging to meet them using various internet communications platforms.
Acting United States Attorney Harrington said, “Crimes against children are one of the highest priorities of the Department of Justice and will continue to be vigorously prosecuted in the Eastern District of Washington. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Moses Lake Police Department, the Southeast Regional Internet Crimes Against Children Task Force, and the United States Department of Homeland Security who investigated this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the United States Department of Homeland Security, the Southeast Regional Internet Crimes Against Children Task Force, which includes detectives from the Kennewick and Richland Police Departments, and the Moses Lake Police Department. This case was prosecuted by Ann T. Wick and James A. Goeke, Assistant United States Attorneys for the Eastern District of Washington.
U.S. Attorney’s Office Prosecutes COVID-19 Fraud and Price-Gouging of Personal Protective EquipmentRead the Press Release
NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig today announced an update on the Office’s enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Unemployment Insurance (UI) programs, and schemes involving the price-gouging and hoarding of critical personal protective equipment
In the past year, the U.S. Attorney’s Office for the District of New Jersey has charged 18 defendants, including individuals and companies, with offenses based on fraud schemes, price-gouging, hoarding, and other crimes connected to the COVID-19 pandemic.
“Exploitation of the global pandemic for illicit financial gain victimizes consumers, taxpayers, and federal programs alike,” Acting U.S. Attorney Honig said. “We are working with our law enforcement partners to investigate these schemes and bring to justice all those who would try to take advantage of the programs established by Congress to help America through the pandemic. We will vigorously pursue anyone trying to steal from those programs, engage in the hoarding or price-gouging of necessary personal protective equipment, or otherwise defraud the public.”
Most recently, three defendants were charged last month in connection with an EIDL scheme: George Leguen, 46, of Paramus, New Jersey, and Shyteek Stevenson, 30, of Harrisburg, Pennsylvania, were charged in separate complaints with one count each of wire fraud and money laundering. Marc Orival, 37, of College Park, Georgia, is charged in a third complaint with two counts each of wire fraud and money laundering.
Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. The Act is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. The U.S. Attorney’s Office for the District of New Jersey continues to lead the Department of Justice’s Hoarding and Price-Gouging Task Force.
Other cases charged in New Jersey include:
Date of Charge
Lead Defendant
3/30/2020
Baruch Feldheim
3/30/2020
Erik Santos
6/5/2020
King Year Packaging and Printing
6/17/2020
Crawford Technology Group
8/14/2020
CSG Imports LLC and KG Imports LLC
9/3/2020
Jae Choi
9/17/2020
Jeffrey Bennett
9/29/2020
Dang Chanchai
10/21/2020
Jefferson Robert
10/23/2020
Justin Ezeiruaku
11/19/2020
Rocco Malanga
12/14/2020
Azhar Rana
12/16/2020
Maurice Mills
1/20/2021
Gauravjit Singh
3/18/2021
John Jhong
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Two indicted in Northern District on child pornography chargesRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury indicted two men in the Northern District of Ohio this week on child pornography charges. These are separate cases and are not related.
Jeffrey ARMSTRONG, 51, of Rockford, Ohio, was charged in a one-count indictment with receipt and distribution of child pornography. According to court records, from February 10 to February 22, 2021, ARMSTRONG is accused of engaging in an online conversation with an FBI covert employee on a mobile messenger application during which he sent sexually explicit material of minors or child pornography.
This investigation was conducted by the Cleveland Division of the FBI – Toledo Resident Agency and is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Allen Joseph KAMANN, 34, of Shelby, Ohio, was charged in a two-count indictment with receipt and distribution of visual depictions of minors engaged in sexually explicit conduct and possession of child pornography. According to court records, in February of 2021, KAMANN is accused of engaging in an online conversation with an FBI covert employee on a mobile messenger application regarding the sexual exploitation of minors. Throughout the conversation, KAMANN allegedly transmitted child pornographic materials to the FBI agent. In addition, KAMANN is accused of uploading several images of child pornography to the messenger application in November of 2020.
On February 26, 2021, a search warrant was executed on the person of KAMANN and his property. During the search, law enforcement officers recovered a cellphone containing alleged depictions of child pornography.
This investigation was conducted by the Federal Bureau of Investigation – Sandusky Resident Agency and is being prosecuted by Assistant U.S. Attorney Carol Skutnik.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
Tulsa Man Sentenced to 96 months in Federal Prison for Distributing HeroinRead the Press Release
A Tulsa man was sentenced Wednesday in federal court for distribution of heroin, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil III sentenced Jimmie Luna III, 56, of Tulsa, to 96 months in federal prison followed by 10 years of supervised release. When determining the sentence, Judge Heil also considered the extensive history and nature of Luna’s prior convictions.
On June 5, 2020, Tulsa County Deputies attempted to serve a felony arrest warrant on Luna. Deputies located Luna at a local hotel, and after arriving saw the defendant’s girlfriend exit the room. Deputies approached her and asked if she had any drugs. She told them she had drugs that belonged to Luna who was in the hotel room and retrieved multiple baggies from her bra: five baggies containing brown and black tar heroin and another containing Alprazolam, also known as Xanax. Luna had directed her to dispose of the drugs.
The Tulsa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys David Nasar and Joel-lyn McCormick prosecuted the case.
Trenton Man Charged with Assaulting and Robbing Federal Agent at GunpointRead the Press Release
TRENTON, N.J. –A Trenton man was charged today with assaulting a federal agent with a deadly weapon, armed robbery, and discharging a firearm during and in relation to a crime of violence, Acting U.S. Attorney Rachael A. Honig announced.
Jabree Johnson, 28, of Trenton, is charged by complaint with one count of assault on a federal officer with a deadly weapon, one count of robbery with a dangerous weapon of an individual with custody of federal property, and one count of using and carrying a firearm during and in relation to a crime of violence, in which the firearm was discharged. Johnson is currently in custody on related charges filed by the Mercer County Prosecutor’s Office in connection with the assault. He will make his initial appearance by videoconference before U.S. Magistrate Judge Zahid N. Quraishi on a date to be determined.
According to documents filed in this case and statements made in court:
On March 22, 2021, federal law enforcement officers were investigating firearms trafficking and other illegal activities in Trenton and Hamilton, New Jersey. An undercover federal law enforcement agent arranged to purchase multiple firearms from an individual later identified as Johnson.
After arriving at an agreed-upon location for the firearms transaction, Johnson entered the undercover federal agent’s vehicle and handed the agent a black, semi-automatic firearm. The undercover federal agent inspected the firearm and then returned it to Johnson, and requested to see the other firearms that Johnson had agreed to sell. Instead, Johnson pointed the loaded firearm directly at the undercover federal agent and demanded money from the agent. In response, the undercover federal agent provided Johnson with an amount of U.S. currency. Johnson then ordered the undercover federal agent out of the vehicle at gunpoint. The agent exited the vehicle as ordered, drew a service-issued firearm, and fired at Johnson, striking Johnson in the shoulder. Johnson fired his handgun multiple times at the undercover federal agent before fleeing the area. Johnson was later identified at a local hospital as the individual who had assaulted and robbed the undercover federal agent at gunpoint.
The charge of assault on a federal officer with a deadly weapon carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of robbery of federal property with a dangerous weapon carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and carrying a firearm during and in relation to a crime of violence carries a statutory mandatory minimum sentence of 10 years in prison, which must run consecutive to any other sentence imposed, and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Hamilton Township Police Department, under the direction of Police Chief James Stevens; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden and Special Assistant U.S. Attorney Katie Magee Lee of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Tax Fugitive Sentenced and FinedRead the Press Release
PHOENIX, Ariz. – On Wednesday, Kevin Scott Wynn, 59, of Scottsdale, Arizona, was sentenced by United States District Judge Susan M. Brnovich to 46 months in prison. The Court also imposed a fine of $7,500 on Wynn. Wynn was previously found guilty by a jury of tax evasion and failure to file tax returns in December 2019.
The sentence included an upward adjustment for obstruction of justice: Wynn withdrew $1,500,000 in cash from his business bank account in thirteen separate transactions in the first several months of 2020, and subsequently cut his ankle monitor and fled Arizona before a scheduled sentencing hearing. He was apprehended by Mexican law enforcement authorities in Mexico City in August and deported back to the United States. Upon release from prison, Wynn will be placed on supervised release for three years. As a condition of supervision, he will be required to pay more than $700,000 in back taxes as restitution to the Internal Revenue Service.
Internal Revenue Service – Criminal Investigation conducted the underlying investigation, and the United States Marshals Service led the fugitive apprehension efforts. Assistant United States Attorneys Gary M. Restaino and James R. Knapp handled the prosecution.
CASE NUMBER: CR-18-1649-PHX-SMB
RELEASE NUMBER: 2021-020_Wynn# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Syracuse Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Thomas Sczerbaniewicz, age 52, of Syracuse, pled guilty yesterday to one count of possessing and accessing with intent to view child pornography, announced Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea agreement and during the plea hearing before United States District Judge David N. Hurd in Utica, Sczerbaniewicz admitted that, in January 2021 while at his sex offender counseling service, he went into the bathroom and used a mobile phone to access the internet and view child exploitation images.
Sczerbaniewicz, who was convicted of possessing child pornography in 2009 and was on supervised release at the time he committed the current offense, faces at least 10 years and up to 20 years in prison on the new conviction. The Court also will impose a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
Sczerbaniewicz’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), after a referral from the United States Probation Office. The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Statement by the Principal Deputy Assistant Attorney General for Civil Rights Leading a Coordinated Civil Rights Response to Coronavirus (COVID-19)Read the Press Release
Principal Deputy Assistant Attorney General for Civil Rights Pamela S. Karlan issued the following statement and attached resource guide to assist Federal agencies, state and local governments, and recipients of Federal financial assistance in addressing ongoing civil rights challenges related to the COVID-19 pandemic:
The COVID-19 pandemic has stressed our Nation’s commitment to an open, equal, and inclusive society. We have seen hateful and xenophobic rhetoric and violence aimed at Asian American and Pacific Islander (AAPI) communities and businesses. We have also seen Black, Indigenous, Latino, and Pacific Islander communities, as well as people with disabilities, suffer disproportionately high rates of death and greater risk of infection and hospitalization. COVID-19 has magnified social, economic, and environmental inequalities that we cannot ignore.
As a Nation, we cannot adequately respond to, and recover from, COVID-19 if we do not protect all of our neighbors. That requires us to pursue justice on behalf of those targeted because of their race, color, religion, national origin, sex (including sexual orientation and gender identity), disability, or citizenship.
The Department of Justice will vigorously enforce Federal civil rights as we continue the process of national reckoning, recovery, and healing. Civil rights protections and responsibilities still apply, even during emergencies. They cannot be waived. Federal agencies, state and local governments, and recipients of Federal financial assistance are an integral part of our shared effort to uphold civil rights.
The following principles should assist in meeting these nondiscrimination obligations:
1. Combat hate crimes, harassment, and other discrimination against the AAPI community. There has been a disturbing rise in violence, harassment, and discrimination directed at the AAPI community. Laws prohibiting such conduct must be vigorously enforced by the Federal government, acting with its state and local partners. We must support and provide services to victims of hate crimes, harassment, or unlawful discrimination and ensure the safety of schools, workplaces, and communities through prompt and thorough investigation of complaints. The attached guide includes resources to support prevention and reporting of hate crimes in communities. It also explains how to report discrimination, harassment, or hate incidents in housing, education, employment or other civil rights violations. The Civil Rights Division is prepared to work with sister Federal agencies to support state and local efforts aimed at preventing pandemic-related harassment and discrimination targeting AAPI communities. For more information on preventing hate crimes in your community, visit the Department of Justice’s hate crimes resource page: https://www.justice.gov/hatecrimes.2. Ensure equal access for people with disabilities and avoid disability discrimination. COVID-19 has had a devastating and disproportionate impact on people with disabilities. Governments, health care providers, and long-term care facilities must comply with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). This includes when making decisions about who will receive medical care, including vaccines and hospital beds. It also includes crafting and implementing policies such as crisis standards of care, visitation rules, and vaccine distribution plans. People living in nursing homes and other long-term care facilities have been placed at particular risk of COVID-19 infection and death. Some reports show that more than one-third of all deaths from COVID-19 in the U.S.—over 172,000 people—are linked to nursing homes and other long-term care facilities. Providing services in home- and community- based settings instead of in long-term care facilities can satisfy the ADA integration mandate by preventing unnecessary institutionalization. It can also reduce COVID-19 risk. As governments, employers, and businesses lift pandemic-related restrictions and reopen, they must comply with the ADA and Section 504. This includes providing reasonable accommodations and modifications, physical access, and effective communication. For information about rights and responsibilities under these statutes, please contact the ADA Information Line at 800-514-0301 (voice) or 800- 514-0383 (TTY) or visit https://www.ada.gov/. Additional relevant information can be found on the U.S. Department of Health and Human Services’ Office for Civil Rights’ website at https://www.hhs.gov/civil-rights/for-providers/civil-rights-covid19/.
3. Reduce further learning loss for vulnerable students. Education inequalities have worsened as COVID-19 continues to disrupt learning for millions of students. Students of color are experiencing disproportionate failure rates, a growing digital divide disadvantages students who cannot access the internet and miss school as a result, and students with limited English proficiency and/or a disability are suffering serious educational consequences. Students who are homeless or in juvenile justice facilities are particularly at risk of learning disruptions. Schools contribute to these challenges when they fail to communicate with limited English proficient families in a language they understand about how to access online learning and other important information about school activities. Whether schools begin to reopen or continue to teach virtually, they must do so in compliance with Titles IV and VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, the Equal Educational Opportunities Act of 1974, the ADA, and Section 504. COVID-19 resources for schools, students, and families can be found at https://www.ed.gov/coronavirus?src=feature.
4. Protect correctional staff, incarcerated and detained people, and their families. Studies have shown that compared to the general population, a disproportionate number of COVID-19 outbreaks and deaths occur in jails, prisons, and detention facilities across the country. Certain communities of color, including Black, Indigenous, and Latino people, as well as people with disabilities, are more likely to have comorbidities, and suffer serious and even fatal COVID-19 infections, both in the general population and in jails, prisons, and detention centers. Individuals with limited English proficiency and those with disabilities can face increased isolation and lack meaningful access to essential information during COVID-19. This can limit their ability to obtain treatment and timely escalation of care when needed. State and local jails, prisons, and detention centers that receive Federal financial assistance must not discriminate on the basis of race, color, and national origin under Title VI of the Civil Rights Act of 1964 and other statutes. They must also comply with the ADA’s and Section 504’s disability nondiscrimination mandate. In addition to the statutory prohibitions on discrimination, these facilities may not deprive prisoners of their rights guaranteed by the Eighth and Fourteenth Amendments. Federal prisons and detention facilities are subject to Executive Order 13166 and other authorities that protect the civil rights of Federal detainees and inmates. For further guidance on managing pandemic response and recovery in correction and detention facilities, see https://nicic.gov/coronavirus and https://www.cdc.gov/coronavirus/2019-ncov/community/correction-detention/guidance-correctional-detention.html.
5. Protect vulnerable populations facing housing instability. COVID-19 has exacerbated existing racial and economic disparities in access to safe and affordable housing. Despite these challenges, individuals retain their fundamental right to obtain housing free from discrimination. Direct providers of housing must still comply with the Fair Housing Act. Our country already faced a severe shortage in affordable housing before the economic impacts of COVID-19 caused significant increases in housing instability. With studies showing that certain communities of color are more likely to be at risk of eviction, we must ensure that discrimination is not an additional barrier. Information on where to find housing assistance during the pandemic can be found here: https://www.benefits.gov/news/article/402. The Department of Housing and Urban Development also maintains a list of resources, found at https://www.hud.gov/coronavirus.
6. Provide information in languages other than English. Large numbers of people in the United States do not read or understand English well. Yet all people need to understand the symptoms, when to stay home, and how to protect themselves and their families to prevent the spread of the virus. Federal, state, and local public messaging on pandemic safety measures and recovery efforts should be provided in the wide array of languages spoken by people with limited English proficiency. Likewise, it is important that we ensure language accessibility in law enforcement, courts, and victim services so that victims of hate crimes and discrimination can vindicate their rights. Title VI requires recipients of Federal financial assistance to provide meaningful access to Federally-funded programs and activities to people with limited English proficiency. More information about ensuring language access and the concentration of, and languages spoken by, persons with limited English proficiency in a particular community can be found at https://www.lep.gov/ and https://www.lep.gov/maps/.
7. Collect data to monitor, track, and ensure equitable outcomes. COVID-19 requires accountability and action to address longstanding disparities for Black, Indigenous, Latino, AAPI, and other people of color, as well as people with disabilities. Complete, consistent, and accurate data collection and reporting on race, ethnicity, disability, and limited English proficient status are essential to our ability to recognize and address disparities and inequality. Federal civil rights offices are authorized to use qualitative (studies, news reports, and other sources of information) and quantitative data to conduct outreach, technical assistance, and enforcement to ensure compliance with Title VI of the Civil Rights Act of 1964. The Civil Rights Division is available to consult with Federal agencies on approaches to data collection and assessments to determine whether policies or practices may have a discriminatory impact. For more information on identifying discrimination under Title VI and on data collection, see https://www.justice.gov/crt/fcs/T6Manual7#Z; see also Executive Order 13985 (addressing the need for race, ethnicity, and disability data collection).
The Civil Rights Division will do its part to facilitate a coordinated federal response to these issues. Under Executive Order 12250, the Department of Justice is responsible for ensuring the consistent and effective implementation of Federal civil rights laws “prohibiting discriminatory practices in Federal programs and programs receiving federal financial assistance.” Accordingly, I have directed the Civil Rights Division’s Federal Coordination and Compliance Section and the Disability Rights Section to ensure that Federal agencies use their authority to pursue a comprehensive approach to advance equity and redress inequities in pandemic response and recovery. Finally, the Civil Rights Division will continue to convene meetings of Federal civil rights offices to:
1) exchange information and resources for agencies to take action on COVID-19-related harassment and discrimination;
2) monitor and address civil rights issues related to COVID-19 and recipients of Federal financial assistance;
3) identify strategies to ensure Federal, state and local efforts achieve equitable outcomes in current and future emergency planning and response;
4) work with the Federal agencies to develop and identify data sources or indices that will assist recipients of Federal financial assistance to collect data from communities of color and other underserved populations. The Civil Rights Division, together with other agencies throughout the Federal government, will continue to monitor civil rights issues related to COVID-19 and vigorously enforce civil rights laws. To file a complaint with the Civil Rights Division, please fill out our online form at https://civilrights.justice.gov.
Springfield Man Sentenced for Possession of Stolen FirearmsRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for possessing three stolen firearms, including a rifle and two revolvers.
Luis Velez, 42, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 years in prison and three years of supervised release. On Jan. 12, 2021, Velez pleaded guilty to one count of possession of stolen firearms.
On July 5, 2019, Velez was in possession of three stolen firearms: a Savage Arms, Model 25 Walking Varminter, .22 caliber rifle, a Hermann Weihrauch, Model ARM 44, .44 caliber revolver and a Smith & Wesson, Model 625, .45 caliber revolver, knowing or having cause to believe these firearms were stolen.
Acting United States Attorney Nathaniel R. Mendell and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorneys Catherine G. Curley and Neil L. Desroches of Mendell’s Springfield Branch Office prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
South Carolina Man Pleads Guilty in Scheme Involving Fraudulent Business Accounts That Defrauded Lowe's of More Than $450,000Read the Press Release
CHARLOTTE, N.C. – Bobby Cherry, 58, of Manning, South Carolina, appeared before U.S. Magistrate Judge David C. Keesler yesterday and pleaded guilty to wire fraud conspiracy, for his role in a scheme that defrauded Lowe’s of more than $450,000, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Stetzer is joined in making this announcement by Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte.
According to filed plea documents and today’s court hearing, from August 2019 to March 2020, Cherry and his two co-defendants, Russell Leroy Calvin and Michael Marcel Montgomery, along with other co-conspirators, defrauded Lowe’s through a scheme involving fraudulent business accounts. According to court records, Cherry and his co-defendants created fictional landscaping and home improvement companies to open fraudulent business accounts with Lowe’s, which they then used to make multiple purchases at stores in the Charlotte area and throughout North Carolina, South Carolina and Georgia. Court records show that, once the fraudulent business accounts were approved and funded, the codefendants used them to purchase expensive landscaping equipment, such as zero turn mowers and other items. In total, during the course of the scheme, the co-conspirators opened at least 25 such fraudulent business accounts which they used to obtain more than $450,000 in fraudulently purchased goods. The scheme involved local Lowe’s stores in Mecklenburg, Gaston, Union, Lincoln, Cleveland, and Iredell Counties.
Cherry pleaded guilty to wire fraud conspiracy which carries a maximum sentence of 20 years in prison and a $250,000 fine. Michael Marcel Montgomery pleaded guilty to the same charge on February 1, 2021. A sentencing date for Cherry and Montgomery has not been set. The charges against the third co-defendant, Russell Leroy Calvin, are still pending, and Calvin is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked ICE-HSI for their investigation of the case.
Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Second Defendant in Retail Refund Fraud Scheme Sentenced to 12½ Years in PrisonRead the Press Release
SACRAMENTO, Calif. — A former resident of Union City was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 12 years and seven months in prison for a conspiracy to commit a bank fraud scheme that attempted to defraud financial institutions of more than $4.3 million, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2017 and February 2019, Monica Nunes, 41, conspired with Johnathon Ward and Talalima Toilolo to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to refund customers for returns, reimbursements, and erroneous charges.
The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular retail merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ payment processors to transfer funds to the defendants’ fraudulent accounts. The defendants then drained the stolen funds from the accounts and distributed them among members of the conspiracy.
Nunes has extensive experience with refund fraud and served as an organizer and manager over the conspiracy. She taught other members how to use POS terminals to defraud merchants and their banks. For example, in July 2017 while she was incarcerated, she mailed letters to co‑conspirators, teaching them how to use POS terminals to perpetrate the scheme and advising them to connect with one of the defendants.
Judge England also awarded over $1.7 million in restitution to victims of Nunes’s refund fraud. This amount reflected proceeds that the conspiracy was able to successfully withdraw from accounts that were funded by the fraudulent refunds.
This case is the product of an investigation by the Federal Bureau of Investigation and the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On Feb. 11, 2021, Talalima Toilolo was sentenced to 10 years in prison for his participation in the scheme. In July 2020, the government filed a superseding indictment in this case charging Johnathon Ward with multiple counts of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The superseding indictment also added Sabrina Toilolo who is the daughter of Talalima Toilolo. These new charges are still pending against Ward and Sabrina Toilolo. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Schoharie County Man Pleads Guilty to Distributing, Receiving and Possessing Thousands of Images and Videos of Child PornographyRead the Press Release
ALBANY, NEW YORK – Angel Gomez, age 28, of Richmondville, New York, pled guilty today to a nine-count information, admitting that he received, possessed and distributed child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Gomez admitted to using a peer-to-peer file-sharing program to download image and video files from the internet, which he then saved to electronic devices. In addition, Gomez admitted that he allowed others to download child pornography from him via the peer-to-peer network. The conduct involved over 13,000 still images and over 2,400 videos depicting the sexual abuse of children.
Chief United States District Judge Glenn T. Suddaby will sentence Gomez on August 5, 2021. Each of counts one through four, alleging receipt and distribution of child pornography, carries a maximum sentence of 20 years and a mandatory minimum sentence of 5 years in prison, as well as a fine of up to $250,000. Each of counts five through nine, alleging possession of child pornography, carries a maximum sentence of 20 years and a maximum fine of $250,000. For all counts, Gomez faces a term of post-imprisonment supervised release of between 5 years and life and a requirement that he register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, along with members of the New York State Police, as part of Project Safe Childhood, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Romanian National Pleads Guilty in Connection with ATM Skimming SchemeRead the Press Release
BOSTON – A Romanian national pleaded guilty in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New Hampshire, New York and South Carolina.
Nemanja Milosavljevic, 23, pleaded guilty on Wednesday, March 31, 2021 to conspiracy to conduct enterprise affairs through a pattern of racketeering activity (more commonly known as RICO conspiracy), conspiracy to use counterfeit access devices and aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for July 28, 2021.
Milosavljevic was a member of the Hornea Crew (“Crew”), led by co-conspirators Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices to steal debit card numbers and PINs from unsuspecting ATM customers in Massachusetts, Connecticut, South Carolina, Georgia and other locations within the United States. The stolen information was then used by Milosavljevic and others to clone the victim customers’ debit cards and make unauthorized withdrawals from those victim customers’ bank accounts at ATMs throughout the United States. Members of the Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, Judge Young sentenced Constantin Denis Hornea to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260. Judge Young sentenced Ludemis Hornea to 42 months in prison, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Customs and Border Protection; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; Connecticut State Police; the Amherst, Billerica, Braintree, Boston, Florence (S.C.); Greenwich (Conn.), Houston (Texas) New York City (N.Y.), Quincy, Saluda (S.C.), Southwick, Waltham, Whately, and Westwood Police Departments; South Carolina Law Enforcement Division; Richland County (S.C.) Sheriff’s Department; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran, Deputy Chief of Mendell’s Organized Crime and Gang Unit, is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Previously convicted felon pleads guilty to federal firearm charge after shooting rifle out of apartment window near Albuquerque High SchoolRead the Press Release
ALBUQUERQUE, N.M. – Roy Thundercloud, 38, of Albuquerque, plead guilty in federal court on March 26, to being a felon in possession of a firearm and ammunition.
According to public court records, Thundercloud fired several shots from a rifle out of his apartment window near Albuquerque High School on May 31, 2020. Thundercloud also tried to dispose of the rifle shell casings by throwing them in the apartment complex’s dumpster. Thundercloud eventually surrendered after police responded to the scene to secure the area and detain him.
Thundercloud could not lawfully possess the rifle or ammunition based on previous felony convictions for possession with intent to distribute marijuana, burglary and aggravated driving while intoxicated.
Thundercloud is currently in custody pending sentencing. He faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Task Force and Albuquerque Police Department investigated this case. Assistant U.S. Attorney Sarah Mease is prosecuting the case.
Philadelphia Man Pleads Guilty to Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – James Nelson Peeples, Jr., 35, of Philadelphia, Mississippi, pled guilty today before U.S. Chief District Judge Daniel P. Jordan III to possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 15, 2018 a woman called the Philadelphia Police Department and reported that a man she knew as “P James” was at her house threatening her with a gun. An officer responded immediately and spoke with the woman. The officer then left the woman’s residence and quickly located Peeples nearby driving a black Honda Accord. The officer stopped Peeples and when he approached Peeples’ vehicle saw Peeples attempting to hide a handgun. Peeples also appeared to be trying to put a bag of marijuana in his pants.
Peeples was arrested and a search was conducted of his person and his vehicle. Methamphetamine, Marijuana and three handguns were found. Peeples has multiple felony convictions in Neshoba County for drug sale offenses and for being a convicted felon in possession of a firearm. Peeples later gave a full confession to officers with PPD, a DEA Task Force Officer and an ATF Special Agent. Peeples admitted that he sold methamphetamine and that he had taken two of the guns found in trade for methamphetamine. Peeples also admitted that he was willing to use firearms to settle his disputes on the street.
Peeples was indicted by a federal grand jury on January 15, 2020.
He will be sentenced on July 23, 2021 by Judge Jordan and faces a minimum of five years in prison and a maximum of life in prison, as well as a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
Owners and Former Employee of Heath Care company Facing Federal Charges for Allegedly Paying Kickbacks to Homeless Patients and Fraudulently Billing MedicaidRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Julius Bakari and his wife Mboutchock Kabiwa a/k/a Eugenie Bakari, both age 43, of Silver Spring, Maryland, with health care kickbacks and conspiracy to receive unlawful kickbacks, in connection with their company Holy Health Care Services, LLC (“Holy Health”). Dominic Forka, age 56, of Lanham, Maryland, a Community Support Worker (CSW) employed by Holy Health, is charged with health care kickbacks, conspiracy to receive unlawful kickbacks, and health care fraud.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation (FBI), Washington Field Office’s Criminal Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); and Inspector General Daniel W. Lucas, District of Columbia, Office of the Inspector General (OIG).
According to the affidavit filed in support of the criminal complaint, Bakari owns and operates Holy Health and is the company’s Chief Executive Officer and President. Kabiwa is the Vice President of Holy Health. Dominic Forka was a Community Support Worker (“CSW”) for Holy Health. Holy Health entered into Medicaid Provider Agreements with the District of Columbia’s Department of Health Care Finance (“DHCF”), which permit Holy Health to provide healthcare services to D.C. Medicaid recipients. Holy Health is also certified by the District of Columbia’s Department of Behavioral Health (“DBH”) to perform mental health services. After services are performed, Holy Health documents notes for these services utilizing an electronic health record (“EHR”) system for DBH providers. Holy Health then submits batches of notes in invoices for those services to DHCF, which processes the invoices and pays Holy Health. Holy Health was authorized to provide services from two separate locations in Washington, D.C. (Premises 1 and Premises 2).
The affidavit alleges that beginning in at least April 2017, Holy Health paid homeless people to physically go to Premises 1 and sign in as patients, then fraudulently billed the Medicaid plans of those homeless individuals for mental health treatment services that Holy Health did not provide. According to witnesses, Holy Health allegedly operated a van service to transport the homeless individuals from a park near the Government Printing Office in Washington, D.C. to Premises 1. According to witnesses, after signing in, on some occasions, the witnesses saw a doctor who asked general questions about the witness’s health. On other occasions, the witnesses did not meet with a doctor or any other healthcare provider, and instead received payment for signing in on a Holy Health sign-in sheet. Patients allegedly received $25 for attending three appointments during each week. Specifically, they received $10 for each of the first two days and $5 for the third day. The affidavit alleges that Holy Health did not provide mental health services to the homeless individuals and continued to bill Medicaid for mental health services even after the individuals stopped attending appointments.
As detailed in the affidavit, from March 2019 to November 2019, two confidential sources conducted undercover, recorded appointments inside Holy Health at Premises 1. The affidavit alleges that Confidential Source 1 (“CS1”) attended nine appointments at Premises 1 as part of the investigation and each time, Holy Health billed CS1’s Medicaid Plan for unrendered services. In addition, Holy Health allegedly used CS1’s personal identifying information (“PII”) to bill Medicaid for an additional 25 appointments that CS1 never attended. Between September 19 and November 22, 2019, CS2 allegedly conducted 11 appointments at Premises 1 and on several occasions saw an individual who informed CS2 that he was CS2’s caseworker. According to the affidavit, after each of CS2’s visits, Holy Health billed CS2’s Medicaid plan for unrendered services. As was allegedly the case with CS1, Holy Health billed CS2’s Medicaid plan for approximately 60-minute treatment sessions, when the video and audio recordings show that the sessions in fact lasted only minutes. According to the affidavit, Holy Health has used CS2’s PII to bill Medicaid for an additional 32 appointments that CS2 never attended. According to the affidavit, the electronic health records show that Forka accessed Holy Health’s EHR system to input the 32 appointments that CS2 never attended, all for services purportedly rendered by Forka. As detailed in the affidavit, Holy Health also issued two prescriptions to CS2 that were filled at a pharmacy in Hyattsville, Maryland. CS2 did not request or fill the prescriptions.
Finally, the affidavit alleges that Bakari and Kabiwa utilized funds from a non-profit organization to provide kickback payments to patients, which Bakari and Kabiwa referred to as “stipends.” As detailed in the affidavit, Kabiwa founded and ran the Agatha Foundation, a non-profit organization, which listed Bakari as Vice President. According to its website, Agatha is “a non-profit organization based in Washington, D.C., Maryland, and Africa that provides various key activities in the U.S. … in order to bring positive changes to the lives of at-risk groups in Washington, D.C., Maryland, and in Africa.” Agatha is headquartered in Silver Spring, Maryland and operates at Premises 1. Kabiwa allegedly transferred money from Agatha’s bank account to Holy Health employees to provide kickback payments to Holy Health patients.
If convicted, the defendants each face a maximum sentence of five years in federal prison for conspiracy to receive unlawful kickbacks, and a maximum sentence of 10 years in federal prison for health care kickbacks. Forka also faces a maximum sentence of 10 years in federal prison for health care fraud. 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. The defendants had an initial appearance before U.S. Magistrate Judge Gina L. Simms in U.S. District Court in Greenbelt today. The defendants were released pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the HHS OIG, and the District of Columbia OIG’s Medicaid Fraud Control Unit for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Catherine K. Dick and Erin B. Pulice, who are prosecuting the case.
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Oklahoma City Man Sentenced to Serve 36 Months in Federal Prison for Possessing a Firearm While Using Illegal SubstanceRead the Press Release
OKLAHOMA CITY – Today, BARRY ROWLAND TITUS, II, 39, of Oklahoma City, was sentenced to serve 36 months in federal prison for being a prohibited person unlawfully in possession of a firearm, announced Acting U.S. Attorney Robert J. Troester.
On October 1, 2020, Titus pled guilty to one count of unlawfully possessing a firearm while being an unlawful user of a controlled substance. Specifically, Titus admitted that, on or about November 25, 2015, he possessed a firearm in violation of federal law because he was an unlawful user of a controlled substance at the time of possession.
Today, U.S. District Judge Scott L. Palk sentenced Titus to serve 36 months in federal prison, followed by three years supervised release. In announcing the sentence, Judge Palk noted the nature and circumstances of the offense, as well as the history and characteristics of Titus. Judge Palk specifically highlighted the danger that is present when the possession of firearms is combined with the use of illegal substances.
This case is a result of an investigation by partnering law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms & Explosives, the United States Marshals Service, and Oklahoma City Police Department. Assistant U.S. Attorneys Matthew P. Anderson, Jacquelyn M. Hutzell, and Danielle M. Connolly prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
North Andover Woman Pleads Guilty to Performing Illegal Silicone InjectionsRead the Press Release
BOSTON – A North Andover woman pleaded guilty today in federal court in Boston to performing illegal silicone injections in exchange for money.
Gladys Araceli Ceron, 72, pleaded guilty to five counts of delivery for pay of an adulterated or misbranded medical device received in interstate commerce with the intent to defraud or mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 5, 2021. Ceron was charged by criminal complaint and arrested in May 2019. A federal grand jury subsequently returned an indictment.
From approximately 2004 to 2019, Ceron, who operated her business in Lawrence, performed illegal bodily injections using “gluteal material” that she obtained from a source in Florida. Lab tests of the material subsequently confirmed that it contained silicone oil – a substance that the U.S. Food and Drug Administration warns can travel through blood vessels and cause a stroke, death or permanent disfigurement.
In 2018, Ceron agreed to perform buttock enhancing and facial injections for an individual. During a recorded meeting on May 24, 2018, Ceron told the individual that she charged $500 for buttock injections and $60 for each wrinkle-filling injection. A search of Ceron’s business in Lawrence the following month resulted in the seizure of several bottles and syringes of a substance that tests revealed to be silicone oil. Numerous uncapped, used syringes were also recovered from the business.
Ceron performed illegal injections to augment the buttock or fill wrinkles of four other women in exchange for money and misled her victims about her qualifications and the identity and safety of the material she was injecting.
The charging statute provides for a sentence on each count of up to three 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; Jeffrey J. Ebersole, Special Agent in Charge of the U.S. Food & Drug Administration, Office of Criminal Investigations, New York Field Office; and Justin C. Fielder, Special Agent in Charge of the U.S. Food & Drug Administration, Office of Criminal Investigations, Miami Field Office made the announcement today. Assistant U.S. Attorney Rachel Y. Hemani of Mendell’s Health Care Fraud Unit is prosecuting the case.
NDTX Round up: March 26 - April 1Read the Press Release
SENTENCING – ELIZABETH ANN EDWARDS
On March 26, Elizabeth Ann Edwards, 35, was sentenced to 121 months in federal prison for distribution of a mixture or substance containing methamphetamine. Edwards drove an individual to a location to purchase methamphetamine from a woman. When they arrived, Edward parked the care and called the woman over. The passenger in the Edwards’ vehicle paid the woman for the methamphetamine which was delivered in a green baggie. The DEA and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
SENTENCING – CHRISTY LYNN HERPECHE
On March 26, Christy Lynn Herpeche, 36, was sentenced to 37 months in federal prison for distribution of a mixture or substance containing methamphetamine. On January 20, 2020, Herpeche entered into negotiations with another individual to sell them methamphetamine. She made four transactions of methamphetamine. The DEA and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
SENTENCING – ALEXIS GONZALEZ-BANALES
On March 26, Alexis Gonzalez-Banales, 23, was sentenced to 5 years in federal prison for illegal transportation of an alien. The Wichita Falls Sheriff’s Office conducted a traffic stop of a sport utility vehicle driven by Gonzalez-Banales. The vehicle was found to contain multiple illegal aliens who were all citizens of Mexico. Gonzalez-Banales was transporting the group to various locations in across the United States including Arizona, Texas, Alabama, Georgia, and Florida. HSI and Wichita Falls Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.
GUILTY PLEA – JORGE LUIS GONZALEZ
On March 30, Jorge Luis Gonzalez, 27, plead guilty to possession with intent to distribute a controlled substance. Lancaster police officers were dispatched concerning a shooting complaint. When officers arrived at a location, the victim advised officers that they had been shot at by two men from a residential location. Law enforcement responded to the location of the shooting where they recovered several shell casings in the driveway. Additionally, law enforcement made contact with Gonzalez. He was arrested after officers located methamphetamine in his pants pockets. Inside the residence, law enforcement seized methamphetamine, heroin, promethazine, and methamphetamine in the conversion process from liquid to crystal form. Gonzalez faces up to 20 years in federal prison for his crimes. The DEA and Lancaster Police Department conducted the investigation. Assistant U.S. Attorney Myria Boehm is prosecuting the case.
SENTENCING – BEI-JING TASHAWNA WALKER
On March 31, Bei-Jing Tashawna Walker, 27, was sentenced to 4 years probation for accessory after the fact. In February 2018, Walker was driving her vehicle and the front passenger, Donnie Orlondo Ferrrell, fired a handgun from the passenger window in the direction of another motorist. Walker witnessed the other motorist crash his vehicle into a concrete retaining wall after the shots were fired by Ferrell. She continued to drive to her residence and allowed Ferrell to stay while he attempted to avoid law enforcement detection. It was not until police arrested Ferrell at Walker’s residence that she learned the motorist had been killed by a bullet fired from Walker’s handgun. The United States Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.
Minnesota man charged with possession of fraudulent identification documents and counterfeit checksRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury sitting in Toledo returned a six-count indictment charging Ronald Lee Jenkins, 38, of Blaine, Minnesota, with possession with intent to unlawfully use false identification documents, unlawful production of identification documents and possession of counterfeit securities.
Court documents state that on February 14, 2021, the Defendant was stopped by an officer with the Maumee Police Department after committing several traffic violations. Following the stop, it was determined that Defendant had active warrants out of Minnesota and Wisconsin. The Defendant was detained, and his vehicle searched. During the search of his vehicle and a subsequent search of a hotel room he had rented in Maumee, officers located 13 Social Security cards; 183 Armed Forces of the United States identification cards; 10 South Carolina driver’s licenses; and several personal checks. It is alleged in the indictment that the identification documents were fraudulent, and the checks forged and counterfeit.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, Defendant’s sentence will be determined by the Court after review of factors unique to this case, including Defendant’s prior criminal record, if any, Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Maumee Police Department and the United States Secret Service. This case is being prosecuted by Assistant U.S. Attorney Robert N. Melching and Deyana F. Unis.
Michigan Hotel Manager Indicted for Tax Fraud and ObstructionRead the Press Release
Two defendants indicted on tax fraud and obstruction charges made their first appearances in the U.S. District Court for the Eastern District of Michigan today.
According to the indictment returned on March 3, 2021, Harold Walls, of Clare, Michigan, managed the day-to-day operations of the Days Inn Clare, a hotel owned by his father, Karl Walls. Rather than pay himself regular wages through the hotel’s payroll system, Harold Walls allegedly caused himself to be paid by other means, including by paying personal expenses from the hotel’s operating account. Harold Walls then allegedly filed individual income tax returns for 2013 through 2017 that did not report any income from the hotel. Rather, Harold Walls allegedly only reported wages from his employment as a professor of hospitality management and income from the rental of farmland.
The indictment further charges that Karl Walls reported income and expenses for the Days Inn Clare on Schedules C attached to his individual tax returns. From 2012 through 2017, Harold Walls allegedly provided and caused his father to provide false and incomplete information to Karl Walls’ return preparer, which resulted in the preparation of Schedules C for the hotel that understated its gross receipts and overstated its expenses. In particular, the information allegedly provided to the tax return preparer did not include revenue for 11 “off book” rooms that were not tracked in the hotel’s reservation system and, as a result, the revenue for these rooms was not reported on the Schedules C. The information allegedly provided to the tax return preparer also included inflated expense figures for the hotel’s property taxes for 2013, 2014, and 2017.
Finally, the indictment charges that both Harold Walls and Karl Walls attempted to obstruct the criminal investigation of Harold Walls. In January 2017, after IRS-Criminal Investigation (IRS-CI) special agents notified Harold Walls that he was the subject of a criminal tax investigation, Harold Walls allegedly made false statements to the special agents about his work at the hotel and attempted to cause a hotel employee to make similar false statements. In October 2018, Karl Walls also allegedly attempted to corruptly persuade two witnesses to provide false testimony to the grand jury regarding his son’s employment at the hotel.
Harold Walls is charged with filing false tax returns, aiding in the preparation of false tax returns, and endeavoring to obstruct the IRS. If convicted, Harold Walls faces a maximum term of imprisonment of three years on each of the tax and obstruction charges. Karl Walls is charged with two counts of witness tampering. Karl Walls faces a maximum term of imprisonment of 20 years on each count of witness tampering. Both defendants also face a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Melissa S. Siskind and Samuel B. Bean of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 35 Years for Sexual Exploitation of a ChildRead the Press Release
A former executive director for a university’s donor relations and fundraising programs in New York was sentenced today to 35 years in prison for multiple child pornography crimes, including his participation in the sexual abuse of a 6-year-old.
According to court documents, on July 22, 2015, Scott Lane, 37, of New York, New York, and others were on a particular video-conferencing platform when a man in Pennsylvania, co-conspirator William Augusta, began sexually abusing a 6-year-old boy. Lane and others encouraged Augusta to sexually abuse the boy for everyone to watch live. Specifically, Lane, using the alias “NYC Perv,” instructed Augusta to “make out with him,” and further instructed Augusta to engage in specific sexual acts with the boy. An undercover Toronto Police detective constable observed the sexual abuse via the video-conferencing platform, and the following day, law enforcement rescued the child and arrested Augusta, who had been sexually abusing the child for approximately two years. A subsequent search of Lane’s electronic devices revealed that Lane possessed multiple videos of prepubescent child pornography.
“The successful prosecution of the 15 individuals in this case, many of whom were responsible for the reprehensible sexual abuse of a 6-year-old child on a live-streaming, video-conferencing platform, demonstrate the Department of Justice’s unwavering commitment to targeting dangerous sexual abusers of children, however they commit their crimes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “We will continue to work closely with our domestic and foreign law enforcement partners to identify, prosecute, and hold accountable those who exploit children, no matter the technological means they use to commit their heinous crimes.”
“This defendant and his co-conspirators engaged in truly hideous behavior toward a child,” said Acting U.S. Attorney Bruce D. Brandler of the Middle District of Pennsylvania. “The lengthy sentence imposed today, and the lengthy sentences imposed earlier, reflect our office’s commitment to protecting vulnerable victims and punishing individuals who engage in this type of abhorrent behavior. I want to thank all the prosecutors and law enforcement agents who worked tirelessly to make sure justice was served in this case.”
“Today’s sentence demonstrates the severity of the crimes committed in this case,” said Special Agent in Charge Brian A. Michael for Homeland Security Investigations (HSI) Philadelphia. “The defendant perpetuated unspeakable crimes against the most vulnerable of victims, a child. Homeland Security Investigations and our law enforcement partners are devoted to identifying, investigating, and prosecuting offenders like the defendant ensuring they will never harm another child. We hope today’s sentencing can bring some solace to the victim in their recovery.”
In May 2016, 15 individuals were charged in an 18-count superseding indictment by a grand jury in the Middle District of Pennsylvania with multiple child exploitation offenses, many of which related to 14 co-conspirators’ involvement in using the video-conferencing website to produce, advertise, distribute, and/or receive child pornography. Twelve of the defendants pleaded guilty prior to trial, and two went to trial in January 2018. The defendants were sentenced to between six and a half years and 60 years. One defendant died after pleading guilty but before sentencing, and another defendant died before trial.
Lane pleaded guilty to six counts of child pornography crimes on Jan. 11, 2018, including conspiracy to produce and production of child pornography. In addition to the prison sentence, he was ordered to serve 15 years of supervised release and to pay $50,000 of restitution to the then-6-year-old victim as well as $476.95 to another victim.
HSI Philadelphia, the Toronto Police Service, the Kentucky Attorney General’s Office, and the North Middleton Police Department investigated the case, with assistance from the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Technology Investigative Unit.
CEOS Trial Attorney Austin M. Berry and Assistant U.S. Attorney Scott Ford of the Middle District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Man Charged with Shooting with Intent to KillRead the Press Release
A man has been charged in federal court for shooting a woman Saturday near Sheridan Road and Interstate 244, announced Acting U.S. Attorney Clint Johnson.
Isaiah Matthew Drywater, 23, was charged by criminal complaint with shooting with intent to kill in Indian Country and with being an unlawful user of controlled substances in possession of a firearm. He is scheduled to make an initial appearance today in federal court at 2 pm.
On March 27, 2021, just after 7 pm, Tulsa police officers responded to the shooting. Officers observed two individuals lying on the ground, including a female victim who had sustained four gunshot wounds. The victim was transported to a hospital for care. Drywater, whose clothing matched the description reported to authorities, was also lying on the ground with a Smith & Wesson 9 mm pistol a few feet away. Officers ran a records check on the firearm and discovered it was reported stolen in October 2020.
According to the charging document, officers spoke to four witnesses during their investigation. One heard the shots and looked in the direction of the crime, seeing a man and woman. He stated that it looked like the male shot the victim and recognized the man as a person called “Happy.” He said he saw “Happy” pulled the trigger then empty his handgun’s magazine. He then saw the man lie on the ground and throw the gun away from himself.
During an interview, officers explained to Drywater they were investigating a shooting and that he was a suspect. The defendant denied shooting anyone but said he thought his friend and her dog had been shot. He said the two had met through a mutual acquaintance. According to court documents, Drywater stated that he had used methamphetamine and PCP that day and that he had a Smith & Wesson 9 mm firearm and almost a full magazine that he carried in his waistband or backpack to conceal it. The defendant explained that he traded drugs and money for the gun. He also allegedly told officers that he remembered hanging out with an acquaintance and the victim and the next thing he remembered was being in a police car. Officers terminated the interview when the defendant asked for an attorney.
This matter will proceed in U.S. District Court in Tulsa, where the criminal complaint is currently pending. A complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal grand jury within 30 days. Once a grand jury returns an indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The Tulsa Police Department is the investigative agency. Assistant U.S. Attorney Ryan Heatherman is prosecuting the case.
Leader of Drug Trafficking Organization Pleads Guilty to Federal Drug Trafficking Charges and BriberyRead the Press Release
Greenbelt, Maryland – Russell Stanley III, age 40, of Bowie, Maryland, pleaded guilty on March 31, 2021 to the federal charges of conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery of a government official.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General, Assistant and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to Stanley’s guilty plea, in August 2018 the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA) began a joint investigation regarding the importation of cocaine into Maryland through the United States mail. Investigators identified Stanley as the leader of the drug trafficking organization (DTO) in Maryland. Stanley admitted that he conspired with others to distribute and possess with the intent to distribute cocaine in Maryland. Stanley further admitted that he had others assisting him with facilitating his distribution of cocaine in Maryland. Among those Stanley DTO members was Jovan Kirk Louis Savage, age 35, of Bowie, who picked up cocaine parcels in exchange for $500 per parcel from Stanley and assisted with delivering proceeds of the drug sales to pay off Stanley’s drug debt.
The investigation revealed that two U.S. Postal Service (USPS) letter carriers, Zakiyya Holloman, age 37, of Middle River, Maryland and Maurice Vaughn, age 34, of Washington, D.C. agreed to divert U.S. Priority Mail parcels, containing cocaine, sent to addresses on their routes, to Stanley or a member of the Stanley DTO in exchange for money. Holloman serviced a route in Bowie from April 2017 to October 2019, and Vaughn serviced a route in Bowie from July 2018 to October 2019. As USPS letter carriers, Vaughn and Holloman were public officials and were expected, among other things, to deliver each package to the addressee at the proper address and to keep an accurate record of their deliveries. Holloman began diverting packages containing cocaine to Stanley in approximately April 2018, after being introduced to Stanley by a mutual acquaintance. Holloman received $500 from Stanley for each parcel diverted. Hollman diverted cocaine parcels on at least six occasions, receiving a total of at least $3,000 from Stanley. In an effort to conceal the scheme, Holloman scanned the parcels as delivered to the addressees, despite delivering those parcels to Stanley.
As detailed in the plea agreement, at least once a month from December 2018 until October 2019, Vaughn diverted a U.S. Priority Mail parcel containing two kilograms of cocaine to the Stanley DTO. Specifically, on February 15, 2019, Vaughn delivered to Stanley’s vehicle, a U.S. Priority Mail parcel containing two kilograms of cocaine addressed to a Bowie address on Vaughn’s postal route. After Vaughn delivered the parcel to Stanley’s vehicle, Vaughn was paid $200 via Cash App. Similarly, Vaughn delivered U.S. Priority Mail parcels containing two kilograms of cocaine each on August 29, 2019, and October 2, 2019. Savage picked up each of the parcels, conducting counter-surveillance to make sure that law enforcement was not in the area. Vaughn was paid $200 in exchange for diverting each of those cocaine parcels to the Stanley DTO. In an effort to conceal the scheme, Vaughn scanned the United States Priority Mail parcels as delivered to the addressees, despite delivering those parcels to the Stanley DTO or to particular locations for pick-up by the Stanley DTO.
To help ensure that the letter carriers would not report their criminal activity, Stanley and a co-defendant required letter carriers to provide them with the letter carriers’ home addresses. Stanley discussed with a co-defendant that they should also tell the letter carriers that they knew the location of the letter carriers’ children's daycares.
In October 2019, Postal Inspectors intercepted a United States Priority Mail parcel destined for an Upper Marlboro address that contained the same contents as previous parcels including, edible peanuts, blue-and-white drinking straws, styrofoam plates and cups, and two kilograms of cocaine inside a Tupperware container. Law enforcement executed a search and seizure warrant, seizing the two kilograms of cocaine from the package. On October 9, 2019, Stanley and Savage worked together to pick up the parcel, not knowing that the cocaine had already been seized by law enforcement. They conducted counter-surveillance to make sure that law enforcement was not in the area, but before they could pick up the package, they detected the presence of law enforcement who were conducting surveillance of the Upper Marlboro package’s delivery. Stanley fled the scene in his vehicle, but Savage was arrested.
On October 9, 2019 investigators executed a search warrant at the shared residence of Stanley, Savage, and another member of the DTO. Among the items that investigators found and seized were approximately 15 grams of cocaine in a clear baggie and two digital scales from a kitchen cabinet as well as a money counter. Investigators searched Stanley upon his arrest, seizing $3,196 from his person. Stanley admitted that during the course of the conspiracy at least 40 kilograms of cocaine were attributable to him.
Jovan Kirk Louis Savage, age 35, of Bowie, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and faces a maximum sentence of life in federal prison. Maurice Vaughn and Zakiyya Holloman each pleaded guilty to conspiracy to commit an offense against the United States and to bribery. They face a maximum sentence of five years in federal prison for the conspiracy charge and a maximum of 15 years in federal prison for bribery. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Paula Xinis will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Judge Xinis has not yet scheduled sentencing dates for Savage, Vaughn, or Holloman.
Co-defendant Barrington Albert Edwards, Jr. age 37, of Bowie, Maryland, is charged with conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery. Co-defendant Delonte Andre Gomez, a/k/a Turk, age 39, also of Bowie, is charged with conspiracy to distribute and possess with intent to distribute cocaine and with possession with intent to distribute cocaine and cocaine base. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Stanley and the government have agreed that, if the Court accepts the plea agreement, Stanley will be sentenced to 11 years in federal prison. U.S. District Judge Paula Xinis has scheduled sentencing for Stanley on June 29, 2021 at 10:00 a.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS, the DEA, the U.S. Postal Service OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Samika N. Boyd and Jason D. Medinger, who are prosecuting the case.
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Lawrence Woman Arrested for Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Lawrence woman was arrested today in connection with her alleged involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Raquel Pena, 40, was charged in a criminal complaint with wire fraud, conspiracy to commit wire fraud and aggravated identity theft. Pena was released on conditions after an initial appearance in federal court in Boston.
According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers). As alleged in the complaint, Pena and others conspired to file fraudulent claims for PUA using others’ personally identifiable information. Pena recruited acquaintances to receive the proceeds of the fraudulent claims into their bank accounts, withdraw all or a portion of those funds and give the cash to Pena. The investigation allegedly connected Pena and her co-conspirators to more than $300,000 in unemployment claims between May 2020 and March 2021.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the FBI’s Boston Field Office; and Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the announcement today. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kansas City Man Sentenced to 144 Months Imprisonment for Distributing HeroinRead the Press Release
KANSAS CITY, KAN. – A Kansas City man has been sentenced on federal charges of distribution of heroin, Acting U.S. Attorney Duston Slinkard said today.
TITUS SANDERS, 24, of Kansas City, Missouri, was sentenced on April 1, 2021 to 144 months in federal prison, followed by 5 years of supervised release. Sanders entered a guilty plea on October 19, 2020. According to court records, this investigation began when Westwood, Kansas police responded to a Walmart and found a man suffering from a drug overdose. The victim later died as result of the overdose. Information contained on the victim’s cell phone led police to Sanders as the source of the heroin purchase.
This case was investigated by the Drug Enforcement Administration, Westwood, Kansas Police Department, Fairway, Kansas Police Department, Kansas City, Kansas Police Department, Overland Park Police Department, Lee’s Summit, Missouri Police Department and Johnson County Sheriff’s Office. Assistant United States Attorneys Trent Krug and Kim Flannigan prosecuted the case.
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Inmate at USP Lee Sentenced for Unlawfully Possessing WeaponsRead the Press Release
ABINGDON, Va. – Daniel Lee Wade, an inmate at the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 48 months in prison for unlawfully possessing weapons inside the prison, Acting United States Attorney Daniel P. Bubar announced today.
Wade, 26, of Greenville, North Carolina, pleaded guilty on October 28, 2020 to one count of possessing contraband inside a prison.
According to court documents, Wade possessed two prison made knives on March 28, 2020. One weapon measured 6-and one-half inches in length and 1-inch in width and was made from grey metal sharpened to a knife edge point. The other weapon measured 6-inches long and came to a sharpened point. Both had cloth handles and one had a black boot string attached as a lanyard.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Individual Indicted for Two Armed Robberies and A Carjacking in Bayamón and Toa BajaRead the Press Release
SAN JUAN, Puerto Rico – On March 30, 2021, a federal grand jury returned a five-count indictment charging Jesús Abdiel Feliciano-Candelario with offenses related to two robberies and a carjacking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. On April 1, the U.S. Marshals took Feliciano-Candelario into federal custody.
According to the Government’s allegations:
- In July 2019, at around 11:00AM, a man parked in front of an auto parts store in Bayamón with his 13-year old son. In the back of his car, the father had auto batteries that were going to be sold to the auto parts store as part of his business. While the father was in the store, Jesús Abdiel Feliciano-Candelario approached the 13-year-old boy and told him that he was going to take the batteries. When the father attempted to intervene, Mr. Feliciano-Candelario brandished a gun. Mr. Feliciano-Candelario and his accomplice then stole several car batteries from the victim’s vehicle.
- In August 2019, a couple arrived at their home in Bayamón around 8:30PM. While they were parking their car in the driveway, Mr. Feliciano-Candelario approached the wife, drew a knife, took her purse and demanded the keys to their van. When the husband refused to provide the keys, Mr. Feliciano-Candelario threatened to kill him. Mr. Feliciano-Candelario then drove off in the car, which contained over $1,700 in cash from the couple’s business.
- In September 2020, at around 11:20PM, Mr. Feliciano-Candelario and two accomplices robbed at gun point a To Go Store gas station in Toa Baja. They stole over $300 and merchandise.
The five-count indictment charges carjacking, violations of the Hobbs Act, and related firearm offenses.
Assistant U.S. Attorney Jeanette Collazo of the Violent Crimes Section is in charge of the prosecution of the case. The FBI is in charge of the investigation. If convicted, the defendant faces a sentence of up to fifteen years for the carjacking, up to 20 years for the Hobbs Act robberies, and not less than fourteen years in prison for the firearm offenses.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Fresno Man Sentenced to 3 Years in Prison for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — Joel Jose Rueda, 28, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to 37 months in prison for illegally possessing a firearm after being convicted of a felony offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 29, 2019, law enforcement officers conducted a traffic stop on a car that Rueda was driving. Because Rueda was on parole, the officers conducted a parole-compliance check and searched him and the car. Inside the engine compartment, behind the driver’s side headlight, officers located several rolled-up t-shirts concealing a loaded handgun with an obliterated serial number. Rueda is prohibited from possessing firearms because of multiple felony convictions for drug and firearm offenses. He was charged with one count of being a felon in possession of a firearm and pleaded guilty on Jan. 13, 2020.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kerman Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fort Myers Felon Sentenced to Prison for Possessing Loaded AR-15 PistolRead the Press Release
Fort Myers, FL – U.S. District Judge Thomas P. Barber has sentenced Kwameaine Rashad Brown (28, Fort Myers) to 6 years and 11 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Brown to forfeit the firearm and 87 rounds of ammunition involved in the offense.
Brown had pleaded guilty on December 21, 2020.
According to court documents, on the night of December 31, 2019, officers from the Fort Myers Police Department (FMPD) observed Brown on city surveillance cameras openly carrying a firearm and placing it in the trunk of a vehicle. Brown later entered the vehicle, which was subsequently stopped by FMPD officers patrolling the area. The firearm Brown had been holding was identified as a Springfield Armory Saint 5.56 mm AR-15 pistol, which was equipped with a high-capacity drum-style magazine and loaded with more than 80 rounds of ammunition. At the time, Brown was a convicted felon and therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Former State Department Employee Indicted for Concealing Information in Background InvestigationRead the Press Release
WASHINGTON – Paul Michael Guertin (“Guertin”), 40, of Arizona and former resident of Washington, DC, was indicted on March 29, 2021 by a federal grand jury in the District of Columbia for wire fraud and obstructing an official proceeding. The indictment was announced by Acting U.S. Attorney Channing D. Phillips and Special Agent in Charge Elisabeth Heller, of the U.S. Department of State, Office of Inspector General.
Guertin was a Foreign Service Officer who served on multiple State Department assignments, including overseas postings to U.S. diplomatic missions in Shanghai, China and Islamabad, Pakistan, and a posting to the Bureau of Intelligence and Research at State Department headquarters in Washington, DC. As a condition of his employment, Guertin was required to apply for and maintain a Top Secret security clearance. According to the indictment, Guertin intentionally concealed information on his SF-86 background investigation questionnaires and in interviews with State Department background investigators. He withheld information about several categories of conduct, including an undisclosed sexual relationship with a Chinese national, whose U.S. visa application was adjudicated by Guertin while he was serving as a consular officer in Shanghai, China; undisclosed gambling debts; and an undisclosed $225,000 loan from two Chinese nationals, who were directed by Guertin to provide $45,000 of the initial disbursement in the form of cash in $100 bills.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
This matter was investigated by the U.S. Department of State, Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys Christopher Brown and Thomas Gillice, with assistance from Paralegal Specialist Chad Byron.