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1 April 2021
Lynn Man Pleads Guilty in Connection with Missing Warhol PaintingsRead the Press Release
BOSTON – A Lynn man pleaded guilty today in connection with taking and attempting to sell two Warhol paintings on eBay.
Brian R. Walshe, 46, pleaded guilty to one count each of wire fraud, interstate transportation for a scheme to defraud, possession of converted goods and unlawful monetary transaction. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 2, 2021. In May 2018, Walshe was arrested and charged.
In early November 2016, a buyer found two Andy Warhol paintings for sale on eBay. The paintings were two of Warhol’s “Shadows,” a series of untitled, abstract canvas paintings from 1978. The original listing price for the paintings was $100,000. In the advertisement, the eBay seller included a picture of an invoice for the two Warhol Shadow paintings with Warhol Foundation numbers and a purchase price of $240,000.
The buyer believed the paintings were authentic and between Nov. 3 and 5, 2016, arranged with Walshe – the seller – to purchase the artwork outside of eBay for $80,000. Walshe and the buyer signed a contract which specified that the buyer had three days to terminate the contract and get a full refund if the buyer did not accept the artwork. On Nov. 7, 2016, the buyer’s assistant flew to Boston and met Walshe to retrieve the paintings, providing him with a cashier’s check for $80,000. According to bank records, the cashier’s check was deposited that day into an account that Walshe controlled, and $33,400 was subsequently withdrawn in the following 14 days. On Nov. 8, 2016, the buyer removed the paintings’ frames and found no Warhol Foundation authentication stamps and noticed that the canvasses and staples looked new. When he compared the paintings to the photographs from the eBay listing, they did not look identical. The buyer concluded that the paintings he purchased from Walshe were not authentic. The buyer then repeatedly attempted to contact Walshe, who initially did not respond, and then made excuses for the delay in refunding the buyer’s money.
Walshe initially gained access to the paintings through a friend (the victim). Walshe was present when the victim first purchased a Warhol painting. Sometime after this purchase, the victim purchased the two Shadow paintings. Thereafter, while visiting the victim in South Korea, Walshe told the victim that he could sell some of the art for a good price. The victim agreed and let Walshe take the two Shadow paintings and other fine art pieces.
After Walshe took the items, the victim did not hear from Walshe and was unable to contact him. Eventually, the victim contacted a mutual friend, who met with Walshe and retrieved some of the art. On May 3, 2011, Walshe attempted to consign the Warhol paintings to a gallery in New York City, at which time he also had other art belonging to the victim. The gallery declined to accept the paintings because Walshe did not have a bill of sale.
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. The charge of interstate transportation for a scheme to defraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of converted goods provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transaction provides for a sentence of up to 10 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. The Lynn Police Department provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran and Kunal Pasricha of Mendell’s Criminal Division and Assistant U.S. Attorney David Lazarus, Chief of Mendell’s Asset Recovery Unit, are prosecuting the case.
Lubbock County Man Sentenced to Life for Enticement of 11-Year-Old RelativeRead the Press Release
A Shallowater, Texas man was sentenced today to life in federal prison for enticement of an 11-year-old relative, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On December 4, 2020, just after 15 minutes of deliberation, a federal jury convicted John David Martinez, 34, of enticement of a minor. Mr. Martinez was sentenced today by U.S. District Judge James Wesley Hendrix.
“This defendant took full advantage of a vulnerable minor relative through a series disturbing actions,” said Acting U.S. Attorney Prerak Shah. “His admissions provide alarming insight into the methods he used to entice a young child for his own criminal gratification. Today’s sentence is the only way to guarantee that he will never again harm children.”
“We applaud the quick action of the child’s caregiver to notify law enforcement of Mr. Martinez’s reprehensible conduct,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Today’s sentence reflects the heinous nature of the crimes committed by Mr. Martinez and removes this dangerous predator from our community. We will continue working with our partners to protect children and hold offenders accountable for their crimes.”
According to evidence presented at trial, Mr. Martinez initiated a text conversation with an 11-year-old relative in July 2018.
The two exchanged 7,702 text messages over a one-month period during which 31-year-old Martinez bullied the child into agreeing to have sex with him.
In one text message, Mr. Martinez asked the child, “you wanna have sex with me?” He followed it up with another message stating, “this stays between us.”
Fortunately, the child’s babysitter spotted the messages on her phone and notified the child’s parents and law enforcement immediately. The investigation revealed that Martinez had a history of sexually abusing minors.
The FBI Lubbock Resident Agency, Shallowater Police Department, and Lubbock County Sheriff’s Department conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Sean Long are prosecuting the case.
Lincoln City Felon Sentenced to More than 8 Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
EUGENE, Ore.—A Lincoln City, Oregon man with multiple felony convictions was sentenced to federal prison today for distributing methamphetamine in and around Lincoln City, announced Acting U.S. Attorney Scott Erik Asphaug.
Jerad Joseph White, 39, was sentenced to 100 months in federal prison and 5 years’ supervised release.
According to court documents, on March 12, 2018, White and an accomplice, Patricia Rose Hendrick, 25, of Lincoln City, Oregon, arrived in a vehicle to the parking lot of the Lincoln City Outlets. As had been previously arranged, White sold three ounces of methamphetamine to an undercover agent for $900.
On December 12, 2018, a federal grand jury in Eugene returned a two-count indictment charging White and Hedrick with conspiring to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
By December 2020, White and Hendrick had both pleaded guilty to possession with intent to distribute methamphetamine. On October 29, 2020, Hendrick was sentenced to time served in prison and five years’ supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Lincoln City Police Department; and the Tillamook County Sheriff’s Office. It was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Leicester Man Indicted in Unemployment and SBA Loan Fraud Related to Covid-19 PandemicRead the Press Release
BOSTON – A Leicester man was indicted today by a federal grand jury in Worcester in connection with his involvement in schemes to fraudulently obtain unemployment assistance and obtain loans from the U.S. Small Business Administration (SBA) in an effort to allegedly take advantage of increased federal government assistance programs created in response to the COVID-19 pandemic.
William Cordor, 26, was indicted on one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft. Cordor was previously charged by criminal complaint and arrested on March 5, 2021.
According to the charging documents, from about June to October 2020, Cordor conspired with others to use stolen identities to file false and fraudulent claims for unemployment assistance in various states including Nevada and wire the payments into prepaid debit card accounts they obtained. It is alleged that on Aug. 18, 2020, Cordor was encountered by police in connection with a domestic violence incident and found in possession of approximately 21 prepaid debit cards in approximately 13 different names. In addition, evidence related to this scheme was found on Cordor’s computer and cell phone.
Cordor also allegedly engaged with others in a second wire fraud scheme that involved using stolen identities to fraudulently apply for COVID-19 Economic Injury Disaster loans from the SBA and similarly deposit the loans into prepaid debit card accounts.
Charging documents allege that in May 2020 Cordor admitted to federal agents that he had fraudulently obtained unemployment benefits from the Commonwealth of Massachusetts. That same day, Cordor agreed to surrender to federal authorities the balance of $79,000 in his bank account that were proceeds of his unemployment fraud scheme in Massachusetts. This occurred before Cordor is alleged to have filed the fraudulent unemployment claim with Nevada in July 2020.
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 another 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; Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; Frederick J. Regan, Special Agent in Charge of U.S. Secret Service, Boston Field Office; Leicester Police Chief Kenneth Antanavica; and Marlboro Police Chief David Giorgi made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office 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.
Leader of Mexico’s United Cartels and Others Charged in South Florida Federal Court with Importing over 1100 Pounds of Crystal MethamphetamineRead the Press Release
Miami, Florida – South Florida federal prosecutors have charged the leader of a notorious Mexican drug cartel and five others for their alleged roles in importing into the United States over 500 kilograms (over 1100 pounds) of Mexican methamphetamine. In the largest methamphetamine seizure in Miami-Dade County history, law enforcement agents seized the over 1100 pounds of crystal meth before it ever hit the streets.
The defendants are charged in two separate complaints with drug conspiracy, drug trafficking, drug importation, and other crimes. One complaint charges Adalberto Fructuoso Comparan-Rodriguez, a/k/a “Fruto,”57, who is the former mayor of Aguililla, Mexico and, according to the allegations, the leader of the United Cartels in Michoacán, Mexico, with drug trafficking crimes. It also charges Alfonso Rustrian, 34, of Mexico, as a coconspirator. See Case No. 21-mj-2570. Both Comparan-Rodriguez and Rustrian were arrested in Guatemala on March 30, 2021, at the request of the United States.
A second criminal complaint charges another four defendants for their roles in the alleged methamphetamine scheme: Adalberto Fructose Comparan-Bedolla, 31 (the son of Comparan-Rodriguez), Carlos Basauri-Coto, 31, Silviano Gonzalez-Aguilar, 44, and Salvador Valdez, 34. See Case No. 21-mj-2614. Law enforcement officers arrested these four defendants in Miami on March 30, 2021. They have made their initial appearances and are scheduled for detention hearings in federal magistrate court in Miami on April 7, 2021.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Keith Weis, Special Agent in Charge, DEA, Miami Field Division, made the announcement.
“These significant arrests and drug seizures of crystal methamphetamine should serve notice that the United States, working hand-in-hand with our international partners, will not stop until drug traffickers at the highest levels are brought to justice,” said Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez. “We will continue to work with our foreign and domestic partners to keep these poisonous substances from reaching our streets.”
“As the threat of methamphetamine continues to grow in Florida, this was yet another brazen attempt by a highly organized and dangerous foreign criminal group to set up a significant methamphetamine pipeline from Mexico directly into the Miami Metro Area.” said DEA’s Miami Field Division Special Agent in Charge Keith Weis. “Fortunately, our dedicated foreign and domestic investigators and prosecutors from numerous agencies, interdicted this effort by making record seizures of an extremely hazardous narcotic while simultaneously removing the primary leadership.”
According to the criminal complaint affidavits, in January 2021, Comparan-Rodriguez and Rustrian met in Cali, Colombia with a person they believed to be a money launderer and drug trafficker associated with Hezbollah (“purported drug buyer”). Rustrian explained that Comparan-Rodriguez was a leader of the United Cartels, and that they could supply hundreds of kilograms of methamphetamine to the purported drug buyer, say the affidavits. They ultimately agreed that Comparan-Rodriguez and Rustrian would send 500 kilograms of methamphetamine from Mexico, through Texas, to the Miami area, according to the charges.
To make the methamphetamine undetectable, members of the methamphetamine organization hid it inside different materials. On March 20, 2021, according to the allegations, a truck carrying concrete tiles filled with methamphetamine arrived in Miami. It is alleged that Comparan-Bedolla helped crack the concrete tiles open and remove approximately 200 kilograms of methamphetamine from them. The rest of the meth (over 300 kilograms) arrived in Miami on March 26, 2021, say the court documents. This time, it was dissolved within five-gallon buckets of house paint. According to the allegations, Comparan-Bedolla and two chemists (Gonzalez-Aguilar and Valdez) worked for days inside a warehouse, extracting pure crystal methamphetamine from the paint. Law enforcement agents seized the meth before it hit the streets and made arrests.
Also according to the charging documents, throughout the conspiracy, defendant Basauri-Coto was in charge of laundering the methamphetamine sales proceeds for the organization. Basauri-Coto proposed laundering the money through two of his companies and flying out over $4,000,000 in cash via private jet, say the charging documents. It is alleged that on March 30, 2021, soon before his arrest, Basauri-Coto accepted a suitcase full of cash for this purpose.
A criminal complaint merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Gonzalez commends the DEA for their investigative efforts. He also commends the Justice Department’s Office of International Affairs along with the DEA Mexico City, Guatemala City, and Bogota Country Offices; Hialeah Police Department; Hialeah Gardens Police Department; City of Miami Police Department; Aventura Police Department; Miami Beach Police Department; Miami-Dade County Police Department; and Miramar Police Department for their assistance in this matter. Assistant U.S. Attorney Frederic “Fritz” Shadley of the International Narcotics and Money Laundering Section in the Southern District of Florida is prosecuting the case.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case numbers 21-mj-2570 and 21-mj-2614.
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Leader of Aryan Knights Prison Gang Sentenced to Life in Federal Prison for RICO ConspiracyRead the Press Release
BOISE – Harlan Hale, 55, a leader of the Idaho prison gang known as the Aryan Knights, or “AK,” was sentenced to life in federal prison after pleading guilty to one count of participating in a RICO (the Racketeer Influenced and Corrupt Organization Act) conspiracy and one count of committing a violent crime in furtherance of racketeering activity, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. In imposing this sentence, Chief U.S. District Judge David C. Nye ordered that it be served after Hale’s existing sentences from a State of Idaho case and a federal case in the District of Wyoming.
As alleged in the indictment, the AK was formed in the mid-1990s in the Idaho prison system. It is a prison gang that operates within Idaho Department of Correction (IDOC) prison facilities and also outside of IDOC facilities. It was founded to organize criminal activity for a select group of white inmates within IDOC custody. The AK has white supremacist and white separatist ideologies. Since its founding, the AK has expanded and is now believed to have over 100 members, both inside and outside of IDOC custody. The AK has used violence and the threat of violence to target non‑white inmates and other targeted inmates. The AK also has used drug trafficking, extortion, and gambling to generate revenue, which was shared among members.
“The life sentence imposed on this defendant recognizes the devastating effects that prison gangs, and especially white supremacist prison gangs, have on the rehabilitative mission of correctional institutions and individual inmates who sincerely hope to use their period of incarceration to successfully reenter society,” said Mr. Gonzalez. “Violent crime will not be tolerated, whether out of prison or in prison, and I commend the FBI and investigators at the Idaho Department of Correction for creating an effective partnership to root out the type of racketeering activity uncovered through this investigation.”
According to court records, Hale held a leadership role in the AK and participated in drug trafficking and violent assaults. The drug trafficking was extensive and involved significant quantities of methamphetamine. When debts went unpaid, the gang used violence to collect. For example, in 2015, Hale assaulted another inmate for failing to pay a drug debt, then provided that inmate with additional drugs and required that he sell the drugs in order to pay back the debt. The violence was not limited to non-members. In 2016, Hale and two other gang members assaulted a former AK member with improvised knives. During the attack, Hale stabbed the victim repeatedly.
“The crimes of organized prison gangs often go beyond the prison walls, bringing more drugs and violence into our communities,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “This life sentence should be a message to others involved in violent gang crimes—regardless of where it takes place—that law enforcement will investigate and hold them accountable.”
Ten members of the AK were charged in this case. Seven of these defendants have pleaded guilty to date and three have been sentenced so far:
- Christopher Foss, 32, was sentenced in September 2020 to 210 months in federal prison, with 174 months to be served after his earliest possible parole date for his current state prison sentence. Foss was also ordered to serve five years of supervised release following his incarceration.
- Buck Pickens, 31, was sentenced in September 2020 to 206 months in federal prison, with 60 months to be served after his earliest possible parole date for his current sentence. Pickens was also ordered to serve five years of supervised release following his incarceration.
- Michael McNabb, 36, was sentenced in August 2020 to 28 months in federal prison to be followed by three years of supervised release.
A jury trial for the remaining defendants is scheduled for October 4, 2021. These defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Federal Bureau of Investigation with assistance from IDOC’s Special Investigations Unit, Ada County Sheriff’s Office, and the Ada County Prosecutor’s Office.
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Laredoan admits to transporting over 100 illegal aliensRead the Press Release
LAREDO, Texas – A 59-year-old Laredo man has entered a guilty plea to conspiracy to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
On Jan. 22, Barry Terence Harvin arrived at the I-35 Border Patrol checkpoint driving a semi-truck and trailer. A K-9 alerted to the presence of contraband in the cargo area of the vehicle which prompted authorities to refer him to secondary inspection.
Further investigation showed anomalies in the trailer. Law enforcement then opened it and discovered 104 aliens, including four unaccompanied minors.
Harvin admitted he had agreed to smuggle aliens to San Antonio for $1,000 per individual. He claimed a friend had offered him the job. He had parked the truck and trailer near some brush when several illegal aliens emerged from the brush and entered the trailer. His friend closed the trailer doors, and Harvin drove north towards San Antonio.
U.S. District Judge Diana Saldaña will set sentencing at a later date. At that time, Harvin faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
KC Man Involved in Fatal Downtown Shooting Sentenced for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who reportedly was involved in a fatal shootout between two groups outside a downtown bar was sentenced in federal court today for drug trafficking and illegally possessing a firearm.
Marc A. Agee, 25, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Oct. 14, 2021, Agee pleaded guilty to distributing methamphetamine and to possessing a firearm in relation to a drug-trafficking crime. Agee admitted that he sold PCP, cocaine and methamphetamine to undercover law enforcement officers or confidential informants on 19 occasions from 2016 to 2018. Agee also admitted that he illegally sold four firearms on three separate occasions during that time.
Agee was in possession of a Glock handgun in furtherance of a drug-trafficking crime on Aug. 18, 2017, when he sold .4932 grams of cocaine and a Glock 9mm handgun to an undercover law enforcement officer. When Agee was arrested on Feb. 4, 2019, he was in possession of a loaded firearm, approximately 500 grams of marijuana, one gram of cocaine, and eight unknown pills.
According to court documents, Agee was identified as a suspect in a robbery that occurred at a motel in Kansas City on Dec. 31, 2016. It was reported that Agee, who was armed with a firearm, robbed people in the motel room of firearms, money, and marijuana. The robbery led to a homicide when the victims of the motel robbery retaliated against Agee and his associates for the robbery. They started shooting at Agee and his associates as they left the Peanut Bar and Grill, located at 9th and Broadway in Kansas City, Mo. Gunfire was exchanged between the two groups; several people were injured and one person (among the robbery victims) was killed. At least 35 shots were fired from several different firearms.
This case was prosecuted by Assistant U.S. Attorney Matt Moeder. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge sentences St. Louis drug dealer known to carry a gun during drug dealsRead the Press Release
ST. LOUIS –United States District Judge Ronnie L. White sentenced Demetrius Burns-Jackson to 60 months in prison. The 24-year-old St. Louis City, Missouri resident pleaded guilty to drug trafficking.
In November 2018, Drug Enforcement Administration investigators received information from two sources that Burns-Jackson was a multi-pound methamphetamine distributor known to carry a firearm. One source confirmed buying methamphetamine, daily, from Burns-Jackson over a six-month period. The other source confirmed buying methamphetamine from Burns-Jackson over a two-month period. Both sources confirmed Burns-Jackson had a firearm during those transactions.
Investigators used a confidential source to buy methamphetamine from Burns-Jackson twice in December 2018. On December 21, 2018, agents arrested Burns-Jackson in a St. Louis hotel where they seized 428 grams of methamphetamine belonging to him.
The Drug Enforcement Administration Fairview Heights Resident Office investigated the case with the United States Marshals Service and St. Louis Metropolitan Police Department’s assistance. Assistant United States Attorney Sara Koppenaal is handling the case.
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Judge sentences Kewanee man to 10 years for being a felon in possession of a firearmRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr. sentenced David Paul Wood to 120 months in prison today. A jury convicted the 37-year-old Kewanee, Missouri man of being a felon in possession of a firearm in September 2020.
The evidence at trial revealed Wood was in possession of two firearms, one of which was stolen, and he committed an armed robbery while in possession of a firearm. The 120-month sentence was the statutory maximum sentence Wood could receive for this conviction.
This case was investigated by the New Madrid County Sheriff’s Office and the Missouri State Highway Patrol. Assistant United States Attorney Keith Sorrell handled the prosecution for the Government.
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Jackson Man Sentenced to Eight Years in Federal Prison for Narcotics TraffickingRead the Press Release
Jackson, Miss. – Gregory Wayne Haygood a/k/a “Big”, 48, of Jackson, was sentenced yesterday by U.S. District Judge Henry T. Wingate, to 97 months in federal prison, followed by five years of supervised release, for his role in conspiring to possess with the intent to distribute 500 grams or more of cocaine, announced Acting United States Attorney Darren J. LaMarca and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans. Haygood was also ordered to pay a $1500 fine.
On February 8, 2017, Haygood was charged in a multi-count, multi-defendant indictment that charged conspiracy to possess with intent to distribute 500 grams or more of cocaine, possession with intent to distribute cocaine, and maintaining a place for distributing or using controlled substances. Haygood and co-defendants conspired to distribute cocaine by receiving the cocaine and selling it to others in Jackson and Biloxi, Mississippi, from July 2015 through February 2017. Haygood remained at large until he was arrested in September 2019.
This OCDETF operation is the result of an extensive investigation, dubbed "Operation Pipeline", which began as an operation targeting illegal narcotics distribution in Central Mississippi that involved the distribution of Cocaine and Marijuana. The distribution network encompassed the States of California, Texas and Mississippi.
Haygood is the final defendant to be sentenced in this indictment. The other co-defendants charged in this indictment received the following sentences:
Monyet Davell Johnson, was sentenced on February 13, 2018, to serve a term of 120 months in prison, followed by five years of supervised release and a $1,500 fine in a related case.
Irvin Christopher Walker III was sentenced on June 21, 2019, to serve 25 months in prison to be followed by a four year term of supervised release and a fine of $1,500.
Luscious Latrice Neal was sentenced on August 30, 2018, to serve 21 months in prison to be followed by a two year term of supervised release.
Donte Evans was sentenced on April 23, 2018, to serve 60 months in prison to be followed by a four year term of supervised release and a fine of $1,500.
Cedric T. Collum was sentenced on April 23, 2018, to 60 months in prison to be followed by a three year term of supervised release and a $1,500 fine.
Eddie Lee Hunt was sentenced on January 17, 2018, to 14 months in prison to be followed by a two year term of supervised release.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was a joint investigation by the United States Immigration, Customs Enforcement, Homeland Security Investigations and Mississippi Bureau of Narcotics, with assistance from US Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Israeli National Sentenced to 30 Months in Prison for Bail Jumping and Participating in Conspiracy to Distribute Unlicensed Prescription DrugsRead the Press Release
CONCORD - Boaz BenMoshe, 58, of Israel, was sentenced to 30 months in federal prison for bail jumping and participating in a conspiracy to engage in the unlicensed wholesale distribution of prescription drugs, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in November 2006, a federal grand jury charged BenMoshe with conspiracy to launder monetary instruments and conspiracy to engage in unlicensed wholesale distribution of prescription drugs. Members of the conspiracy unlawfully purchased Serostrim (a drug for HIV and AIDS patients) from patients and then re-sold the drugs to wholesale drug distributors at a high profit. As part of the conspiracy, the group created false drug pedigrees that suggested that the drugs had been obtained through legitimate distributors.
After an initial appearance hearing in California on January 29, 2007, BenMoshe was released on conditions including his promise to notify the pretrial services officer of any plans to change his residence and to travel outside of the Central District of California and the District of New Hampshire.
On January 9, 2009, BenMoshe pleaded guilty to conspiracy to engage in unlicensed wholesale distribution of prescription drugs. The Court accepted his guilty plea and permitted him to continue on the same conditions of release pending sentencing. The sentencing hearing was scheduled for June 23, 2009. On or about April 29, 2009, in violation of his conditions of release, BenMoshe moved to Israel and failed to appear for his sentencing hearing on June 23, 2009.
On December 16, 2009, a federal grand jury charged BenMoshe with bail jumping for his failure to appear at his sentencing hearing. In August 2020, BenMoshe was extradited from Israel to the United States to face the charges pending against him in New Hampshire. He pleaded guilty to the bail jumping charge on January 27, 2021.
The Court sentenced BenMoshe to 18 months in prison for the conspiracy offense and an additional 12 months for the bail jumping offense. He will receive credit for the time he has been in custody prior to sentencing.
“Mr. BenMoshe committed a serious federal crime by participating in an unlawful scheme involving prescription drugs and committed yet another federal crime by failing to appear for his sentencing hearing,” said Acting U.S. Attorney Farley. “Although he fled from the United States, he was not able to avoid being held responsible for his criminal actions. As this case demonstrates, those who fail to appear in court will be held accountable for their actions and will face additional federal prison time.”
“U.S. consumers rely on FDA oversight to ensure that the drugs they receive are safe and effective. Improper distribution of prescription drugs of unknown origin put the health of all patients at significant risk,” said Special Agent in Charge Jeffrey J. Ebersole, Food and Drug Administration Office of Criminal Investigations’ New York Field Office. “We will continue to pursue and bring to justice those who put the public’s health at risk.”
“Mr. BenMoshe sought to enrich himself by engaging in illegal activity that may have put lives at risk,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “His decision to flee the country only compounded his crime and the penalty that will ensue.”
“The U.S. Marshals Service applauds the US Attorney’s Office and other law enforcement agencies, to include the Israeli government, who worked tirelessly to bring about this sentence, and we are proud to have been a partner in the furtherance of justice,” said Nick Willard, U.S. Marshal for the District of New Hampshire.
The bail jumping matter was investigated by the U.S. Marshals Service. The underlying criminal case was investigated by the FDA’s Office of Criminal Investigations, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Internal Revenue Service-Criminal Investigation. The Justice Department’s Office of International Affairs assisted in securing BenMoshe’s extradition from Israel. The case was prosecuted by Assistant U.S. Attorney Cam Le and Special Assistant U.S. Attorney Sarah Hawkins.
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Indictment Charges Pawtucket Woman with Embezzling $580,000Read the Press Release
PROVIDENCE – A Pawtucket woman was arraigned in federal court in Providence today and released on personal recognizance, charged by way of indictment with allegedly executing a scheme to defraud her auto body repair shop employer of approximately $580,000.
It is alleged in the indictment unsealed today that Idalee Johnston, 47, a secretary employed at Ideal Auto Body in Cranston, devised a scheme whereas she absconded with the proceeds from approximately 190 checks provided to customers by insurance companies as payment for repairs to their vehicles.
It is alleged in the indictment that as part of the scheme, for two years beginning in 2016, Johnston either did not have some customers sign direct payment forms for insurance payments to be made directly to the auto body shop, or did not forward signed payment forms to insurance companies. As a result of her actions, insurance payment checks were sent directly to customers who, in turn, provided the checks to Johnston as a representative of Ideal Auto Body as payment for repairs made to their vehicles.
It is alleged in the indictment that Johnson devised a scheme to steal and deposit some of the checks, some on which she forged signatures, into her bank account. In other instances, stolen checks were provided to family members to be deposited into their bank accounts. Johnston instructed family members to deposit the stolen checks, withdraw the funds, and provide the money to her. In return, Johnston provided the family members with a small portion of the proceeds.
Johnston, arrested earlier today by FBI agents, appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan charged with mail fraud and aggravated identity theft. Johnston was released on personal recognizance.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The arrest and arraignment of Johnston is announced by Acting United States Attorney Richard B. Myrus and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Terrence P. Donnelly.
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Houston Man Sentenced for Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on April 1, 2021, ALEXANDER MURIEL-DIAZ, age 55, of Houston, Texas, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin.
According to court documents, MURIEL-DIAZ and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin between sometime prior to July 19, 2017 and on or about June 29, 2018.
United States District Court Judge Ashe sentenced MURIEL-DIAZ to 81 months of imprisonment, followed by five years of supervised release. The court also imposed a $100 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
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Hazleton Man Sentenced to 80 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Francis Vasquez-Familia, age 33, of Hazleton, Pennsylvania, was sentenced to 80 months' imprisonment followed by a five-year term of supervised release by U.S. District Court Judge Robert D. Mariani for possession with intent to distribute in excess of 500 grams of methamphetamine.
According to Acting U.S. Attorney Bruce D. Brandler, Vasquez-Familia’s activities involving drug distribution in the Hazleton, Pennsylvania area were brought to the attention of the Pennsylvania State Police, who in cooperation with the DEA initiated an investigation. Investigators utilized a confidential informant to purchase narcotics from Vasquez-Familia, including heroin. A traffic stop of Vasquez-Familia’s vehicle resulted in the seizure of 1,554 grams of methamphetamine and 530 grams (which is approximately 29,000 individual doses) of heroin.
The case was investigated by the Pennsylvania State Police and the DEA. Assistant United States Attorneys Todd K. Hinkley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Georgetown Pharmacy to Pay $24,500 to Resolve Claims of Recordkeeping Requirement FailureRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has resolved claims that RPh Now, LLC d/b/a/ The Medicine Shoppe of Georgetown failed to abide by recordkeeping requirements of the Controlled Substances Act. RPh Now, LLC will pay $24,500 to resolve the claims and agrees to comply with heightened reporting requirements for a two-year period.
“Pharmacies have a duty to ensure legally compliant tracking and dispersing of controlled substances,” said Acting U.S. Attorney DeHart. “Adhering to proper recordkeeping and prescription review is essential to helping fight the opioid epidemic. Our office will continue to work with our federal partners to see that doctors and pharmacies assist in preventing the abuse and diversion of controlled substances.”
This matter was investigated by the Drug Enforcement Administration’s Columbia District Office Diversion Group and Assistant United States Attorney Beth Warren.
The claims resolved by this settlement are allegations only. RPh Now, LLC does not admit wrongdoing or liability.
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Galesburg Man Convicted of Possession with Intent to Distribute Nearly a Quarter Pound of Pure MethamphetamineRead the Press Release
ROCK ISLAND, Ill. – A federal jury deliberated for less than one hour before returning its guilty verdict late Tuesday evening, March 30, 2021, against Forest “Woody” Norville, 47, of Galesburg, Ill., for possession with intent to deliver at least 50 grams of methamphetamine. Sentencing for Norville has been scheduled on Aug. 10, 2021, at the U.S. Courthouse in Davenport, Iowa.
Over one day of testimony, the government presented evidence to establish that Norville was arrested and searched following a traffic stop on April 17, 2019, at approximately 1:00 a.m., when he was driving a motorized bicycle at night, without a license or lights. During the search, Galesburg police found Norville had two cellular phones, a digital scale with residue, a prescription bottle containing suspected hydrocodone, and five small empty baggies. Further, based on their search, members of the Galesburg Police Department believed Norville had concealed drugs down his pants. A subsequent search at the Knox County Jail by a Knox County Sheriff’s deputy found Norville possessed two bags of ice methamphetamine including one vacuum-sealed and the other that appeared previously sealed but opened. Subsequent testing by the Drug Enforcement Administration laboratory showed that Norville possessed 106.2 grams of 100% pure methamphetamine.
Testimony from a DEA expert established that the drugs Norville possessed were equivalent to 500 to 1,000 typical-user amounts and that the other items in Norville’s possession were indicative of drug trafficking. Norville testified that all the drugs found by law enforcement were for his personal use.
Norville remains in the custody of the U.S. Marshals Service. At sentencing, Norville faces statutory penalties of a minimum ten years and up to life years in prison for possessing with intent to deliver at least 50 grams of actual methamphetamine.
The case investigation was conducted by the Galesburg Police Department with assistance provided by the Knox County Sheriff’s Office and the DEA. Assistant U.S. Attorneys Jennifer Mathew and Alyssa Raya represented the government at trial.
Fresno Man Charged with Fentanyl Trafficking and Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — A two-count indictment was unsealed charging Nicholas Solis, 26, of Fresno, with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to unsealed court documents, on January 6, Solis illegally possessed fentanyl pills with intent to sell them as well as a firearm.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, and the Fentanyl Overdose Response Team. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Solis faces a maximum statutory penalty of life in prison and a $1 million fine. The firearm charge carries a mandatory minimum and consecutive sentence of at least 5 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Fort Wayne Man Sentenced to 141 Months in PrisonRead the Press Release
FORT WAYNE—Paul Carter, age 45, of Fort Wayne, Indiana, was sentenced by United States District Judge Holly A. Brady after his plea of guilty to bank robbery and brandishing a firearm during a crime of violence, announced Acting U.S. Attorney Gary T. Bell.
Carter was sentenced to a total of 141 months in prison, followed by a total of 2 years of supervised release.
According to documents in this case, Paul Carter, wearing an orange traffic vest and mask, and armed with a black handgun, robbed the Three Rivers Federal Credit Union on East State Boulevard in Fort Wayne on the morning of March 13, 2020. After entering the credit union, Carter approached a teller, pointed the handgun at her, and demanded money. After getting money from the teller, Carter fled the credit union and ran down the alley adjacent to the credit union where Roland Ellington was waiting for him in his van. The pair then left the area.
Law enforcement soon located the getaway van being driven by Ellington. Ellington, however, did not stop when he saw police officers behind him with their lights and sirens on. Instead, he and Carter led officers on a chase that ultimately ended in front of Ellington’s mother’s house. After the van came to a stop, Ellington and Carter bailed out of the minivan and ran in opposite directions. Carter was located soon after in the backyard of a nearby residence and taken into custody. A search produced a plastic bag inside of an outdoor grill that was located next to Carter. Inside the plastic bag was a brown baseball hat, a reflective orange vest, sunglasses, an orange balaclava-style mask, loose U.S. currency, and a teller strap from the credit union. A Fort Wayne Police Department officer retraced the route that Carter took during the foot pursuit and located a loaded .380 caliber handgun approximately 50 feet from where Carter was apprehended. Ellington was also apprehended minutes later as he tried to kick in the back door of his mother’s house.
This case was investigated by the Federal Bureau of Investigation; the Indiana State Police Organized Crime and Corruption Unit; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
Fort Myers Correctional Officer Arrested in Connection with Plan to Smuggle Drugs into PrisonRead the Press Release
Fort Myers, Florida – Acting United States Attorney Karin Hoppmann announces the filing of a criminal complaint charging Leslie Spencer (48, Port Charlotte) with attempted possession with the intent to distribute controlled substances. If convicted, Spencer faces a maximum penalty of 20 years in federal prison.
According to the complaint, Spencer worked as a correctional officer at the Charlotte Correctional Institution’s offsite work camp located in Fort Myers. In March 2021, Spencer agreed to smuggle three ounces of methamphetamine, three ounces of MDMA, a small amount of synthetic marijuana, and two cellphones into the prison and provide it to an inmate in exchange for a payment of $400.
On March 31, 2021, shortly before his shift was to begin, Spencer met with an undercover employee of the FBI in the parking lot of a retail store located on Dr. Martin Luther King, Jr. Boulevard in Fort Myers. There, the undercover employee provided Spencer with sham drugs, two cellphones, and $400 in cash. Upon leaving the store, Spencer was arrested.
A complaint is merely a 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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Michael V. Leeman.
Former Teacher's Aide Sentenced on Child Pornography Charges After Child Sex StingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christian Michael Stutes, 25, of Rochester, NY, who was convicted of receipt and distribution of child pornography, was sentenced to serve 78 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between April 12 and December 13, 2019, the defendant engaged in sexually explicit conversations via text message with an individual he believed to be the father of a 10-year-old male. The individual was actually an undercover FBI agent. During their conversations, Stutes discussed paying $150 to have sex with the 10-year-old male, and on December 13, 2019, the defendant was arrested after he went to Brighton in order to have sex with the child. In addition, the defendant knowingly received and distributed images of child pornography. On the date of his arrest, Stutes possessed approximately 61 videos and 450 images of child pornography. Some of the images included prepubescent minors, as well depictions of violence.
At the time of his arrest, the defendant was employed as a teacher’s aide at a local childcare facility and was previously employed at various children’s camps.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Former Member of Fitchburg Latin Kings Chapter Sentenced for Drug Distribution ChargesRead the Press Release
BOSTON – A former member of the Fitchburg Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on drug distribution charges.
Dairon Rivera, a/k/a “King Mafia,” 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years in prison and three years of supervised release. In December 2020, Rivera pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl.
Rivera admitted to selling over 40 grams of fentanyl to a cooperating witness in a series of audio/video recorded sales that took place between April and December of 2017.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Rivera is the 22nd defendant sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Massachusetts Man Who Was Granted Compassionate Release Returned to PrisonRead the Press Release
CONCORD – Andrew Dufresne, 49, previously of Gardner, Massachusetts pleaded guilty in federal court to several violations of his term of special supervised release on Wednesday, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Dufresne had been incarcerated after pleading guilty to the April 2014 robbery of a bank in Manchester, New Hampshire. In October 2020, the Court granted his request for compassionate release as result of the COVID-19 pandemic. As a result, he was released from federal custody in advance of his original August 2023 release date and placed on special supervised release.
In a court proceeding on Wednesday, Dufresne admitted that he committed six violations of his conditions of special supervised release between January 3, 2021, and February 20, 2021. He was sentenced to 24 months in federal prison to be followed by an additional three years of supervised release.
“During the pandemic, many convicted criminals have been granted compassionate release from prison based upon health concerns,” said Acting U.S. Attorney Farley. “While compassionate release can be appropriate in some circumstances, it is imperative that prisoners who are granted the benefit of compassionate release comply with their release conditions. As this case demonstrates, those who are unable to comply with their release conditions will find themselves back in federal prison.”
The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Five D.C. and Maryland Men Facing Federal Indictment for Conspiracy to Kidnap at Gunpoint a Victim They Met at a Maryland CasinoRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment late yesterday charging five men with conspiring to commit a kidnapping, in connection with an incident on February 3, 2021. The defendants charged in the indictment are:
Darius Lawrence Young, a/k/a “Mup,” age 28, of Washington, D.C.; Christopher Allen Young, a/k/a “40,” age 26, of Washington, D.C.; Anthony Erik Hebron, a/k/a “Pain,” age 28, of Washington, D.C.; Tray David Sherman, a/k/a “Racks,” and “Fat Det,” age 26, of Germantown, MD; and
Lamar Jamal Perkins, a/k/a “Lou,” age 27, of Washington, D.C.Christopher Young and Tray Sherman were arrested on March 31, 2021 on a criminal complaint filed on March 30, 2021 for the same charge. Darius Young was already in custody on a related charge. Hebron and Perkins are fugitives.
The federal charges were 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 - Washington Field Office Criminal Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment and the affidavit filed in support of the previous criminal complaint, on February 3, 2021, the five defendants conspired to kidnap at gunpoint an individual they had met at the MGM Grand Hotel & Casino in National Harbor, Maryland. As detailed in the affidavit, Sherman and Hebron were seen on surveillance footage leaving the MGM Grand Hotel & Casino in National Harbor, Maryland, with the victim. The three men then allegedly drove to Washington, D.C. in Sherman’s vehicle and the victim can be seen in surveillance footage getting out of the car and meeting with an unknown male. The victim and the man appear to give each other something and the victim then gets back in Sherman’s car and they drive away from the area.
A short time later, Hebron allegedly called C. Young. A minute after that, C. Young called D. Young and allegedly told him about an opportunity to participate in the kidnapping and robbery of a victim who had already been picked up by Hebron and Sherman. Perkins allegedly served as a lookout for the Youngs, while they held the victim at a location near the 600 block of 46th Place SE in Washington, D.C. In the meantime, Hebron and Sherman allegedly returned to the MGM Grand and were observed on surveillance footage appearing to enter the victim’s hotel room. As detailed in the affidavit, Sherman, wearing a backpack, and Hebron, pulling a roller suitcase behind him, appeared to exit from the victim’s hotel room and walk down the hotel hallway. When Sherman and Hebron were observed in the same hallway prior to entering the hotel room, they did not have a backpack or roller suitcase in their possession.
According to the affidavit, once the robbery was completed, officers saw C. Young and D. Young exiting the tree line directly behind the location where the victim was allegedly held and returning to their vehicle. Law enforcement also located the victim in the 500 block of 46th Place SE, with blood running down the front of his face from the top of his head, a cut on his mouth and eye, and a broken and swollen nose.
Court documents allege that the victim was kidnapped at gunpoint, then beaten and threatened to obtain information regarding the code to the safe in his hotel room. During the abduction, the defendants allegedly stole the victim’s hotel key, watch, wallet, identification, phone, and cocaine that the victim had purchased during the stop in Washington, D.C. In addition, the robbers allegedly took approximately $6,000 in cash, approximately $1,500 to $2,500 in poker chips, marijuana, an Xbox, a backpack, and a suitcase from the victim’s hotel room. The kidnappers also allegedly pointed a gun at the victim, placed a gun in the victim’s mouth, hit the victim in the face and head with a gun, and threatened to kill the victim’s family members if the victim contacted law enforcement.
If convicted, the defendants each face a maximum sentence of life in federal prison for conspiracy to commit kidnapping. 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. At t initial appearances yesterday in U.S. District Court in Greenbelt, U.S. Magistrate Judge Gina L. Simms ordered that Christopher Young and Sherman be detained pending detention hearings, which are scheduled for April 2, 2021. Darius Young is detained on a related charge and will have his initial appearance 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.
This case is 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 FBI Washington and Baltimore Field Offices for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Jeffrey J. Izant, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal Drug Task Force Targets Southern California Ring that Distributed Fentanyl and Other Dangerous Narcotics Across U.S.Read the Press Release
LOS ANGELES – Members of the Los Angeles Strike Force this morning arrested eight defendants named in a federal grand jury indictment that alleges a drug trafficking organization operating in Los Angeles and Riverside counties distributed large quantities of methamphetamine, heroin, fentanyl and other narcotics across the United States.
The defendants arrested today – and nine others who are still being sought by authorities – are charged in a 20-count indictment that outlines an 18-month investigation that led to multiple seizures of narcotics, firearms and approximately $1.5 million in drug proceeds.
The indictment alleges that the drug ring was headed by Rigoberto Sanchez Martinez, 36, of Perris, who obtained wholesale quantities of narcotics, oversaw their storage, and coordinated distribution of the drugs to locations that included the states of Washington and New York. Martinez was one of the eight defendants arrested this morning.
The first major seizure in the investigation, according to the indictment, was on May 25, 2018, when authorities recovered approximately 54 kilograms of methamphetamine, nearly a kilogram of cocaine, and more than 25 kilograms of marijuana from a “stash house” near Whittier High School that was maintained by defendants Rogelio Barajas, 39, who is a fugitive, and Irene Equigua, 40, who was arrested this morning. Some of the narcotics seized by investigators were stored in coolers that had been buried in the backyard of the residence.
On the same day law enforcement seized the narcotics in Whittier, Martinez called the operator of another stash house and instructed him to take narcotics and drug proceeds and “wrap them and cover them with items such as Vicks VapoRub, coffee, pepper, and powdered soap, dig a deep hole, and bury the drugs in the ground,” the indictment alleges.
During the following year, investigators made several other seizures, including just over $240,000 in cash and numerous firearms seized from a drug courier returning from a trip to Washington; $1,041,970 in cash recovered from a residence in Long Beach; and $118,800 in cash seized from a drug courier who had travelled from New York with the intent to purchase five kilograms of cocaine from Martinez, the indictment states.
Authorities made additional seizures of narcotics that the indictment directly links to Martinez. On May 28, 2019, authorities seized 3.1 kilograms of methamphetamine, nearly 21 kilograms of cocaine, nearly 10 kilograms of fentanyl, and nearly 9 kilograms of heroin from a storage facility in Fontana, the indictment states. And, on September 13, 2019, at another stash house that Martinez had rented in Whitter, law enforcement seized more than 13 kilograms of methamphetamine and approximately $31,000 in cash.
The eight defendants arrested today are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The 17 defendants named in the indictment are charged in various counts in the indictment. Each defendant is charged in court one, which alleges a conspiracy to distribute and possess with intent to distribute controlled substances. That narcotics conspiracy charge carries a mandatory minimum sentence of 10 years in federal prison and potential sentence of life without parole.
This case is being investigated by the Los Angeles Strike Force, which was formed in 2014 to target Mexican drug cartels that use the Los Angeles metropolitan region as a primary hub for the distribution of narcotics across the United States. The goals of the Strike Force are to target high-level narcotics traffickers, disrupt and dismantle the cartels’ narcotics trafficking and related money laundering activities, and arrest and prosecute major drug traffickers.
A number of agencies provided substantial assistance to the Strike Force, including the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Marshals Service, U.S. Customs and Border Protection, Homeland Security Investigations, the United States Postal Inspection Service, the United States Coast Guard Investigative Service, and IRS Criminal Investigation. Local law enforcement agencies participating in the investigation included the Pasadena Police Department, the Whittier Police Department, the Torrance Police Department, the Fontana Police Department, the South Gate Police Department, the San Bernardino Police Department, the Downey Police Department, the Ontario Police Department, the Los Angeles Police Department, the Seal Beach Police Department, the Irvine Police Department, the Bakersfield Police Department, the Orange County Sheriff’s Department, the Riverside County Sheriff’s Department, the California Highway Patrol, the New York Police Department, the Spokane (Washington) Police Department, and the Oregon State Police.
This matter is being prosecuted by Assistant United States Attorneys Lindsay M. Bailey and Shawn Nelson of the International Narcotics, Money Laundering, and Racketeering Section, which is headed by AUSA Nelson.
Federal Court Enjoins Dallas Area Tax Preparer from Preparing Tax ReturnsRead the Press Release
A federal court in the Northern District of Texas, Dallas Division, has permanently enjoined a Dallas-area tax return preparer from preparing federal income tax returns for others pursuant to a stipulated permanent injunction.
The civil complaint filed in the case alleged that Keysha Briseño continually and repeatedly included false business losses and fabricated business expenses on some of her clients’ returns. According to the complaint, she and her spouse allegedly own and operate a tax preparation business known under the names Tax Genius LLC; Tax Genie; and K&J Tax Service. The complaint alleged that Briseño controls Tax Genius and has prepared over 4,200 tax returns between 2017 through 2019, more than 25% of which contained fabricated business losses. The complaint further alleged that after the IRS revoked her federal return preparer identification in 2012, Briseño continued to prepare tax returns using her sister’s preparer identification. According to the complaint, Briseño’s fraudulent return preparation activities have caused significant harm to her customers and resulted in millions of dollars in tax losses to the United States.
Briseño consented to the entry of the injunction, which permanently bars her from acting as a federal tax preparer either as herself or doing business as Tax Genius, Tax Genie, or K&J Tax Service. The injunction further bars her from assisting or advising anyone in connection with any tax matter and from having an ownership interest or working for any other entity that prepares tax returns or represents clients before the IRS.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Family members arrested for sex traffickingRead the Press Release
HOUSTON – Four Houston-area residents have been charged with sex trafficking and conspiracy to do so, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Botello, 54, her son - Edgar Botello, 28, her nephew - Arian Botello, 23 and her daughter - Yudy Lucatero, 31, are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy at 2 p.m. tomorrow.
The criminal complaint, filed March 30, alleges that from 2007 to 2020, the family members coerced waitresses working at the Houston bar Puerto Alegre to engage in commercial sex acts. The victims allegedly included adults and at least one minor.
The charges allege Maria Botello coordinated “dates” with clients who paid $70 for every 15 minutes with the girls. Edgar and Arian Botello were the enforcers who used weapons, threats and intimidation to keep the victims compliant, according to the complaint. The investigation also revealed Lucatero and Maria Botello discussed the rules and procedures in relation to the sex trafficking.
Authorities ultimately identified another victim who was brought to the United States specifically to work at Puerto Alegre, according to the allegations. While there, she was allegedly forced to engage in commercial sex. The charges allege she was only 17 at the time.
If convicted, the family members each face a minimum of 10 years and up to life in federal prison.
The Texas Alcoholic Beverage Commission (TABC) initiated the investigation with the assistance of the Houston Police Department (HPD) and Homeland Security Investigations (HSI).
Public cooperation is critical in the successful investigation of suspected human trafficking. Anyone victimized by suspected traffickers, or who has information about potential victims, may contact TABC’s Victims Services office at 1-713-494-5869 to make a report. Spanish speakers may contact HSI at 1-866-347-2423.
TABC, HPD and HSI are part of the Human Trafficking Rescue Alliance (HTRA) along with the FBI, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri Zack is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Ex-con who helped destroy evidence in murder investigation sentenced to 10 years in federal prisonRead the Press Release
SAVANNAH, GA: A former federal prison inmate has been sentenced to another prison term for helping destroy evidence in the murder of the wife of a Fort Stewart soldier.
Devin Ryan, 30, of Hardeeville, S.C., was sentenced to 120 months in prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Use of Fire in Commission of a Federal Felony, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Ryan will be required to pay $26,475.16 in restitution, and after completion of his prison term, he must serve three years of supervised release.
There is no parole in the federal system.
“Devin Ryan helped a cold-blooded murderer destroy evidence in a homicide investigation – and committed the heinous crime while on supervised release from a previous felony conviction,” said Acting U.S. Attorney Estes. “Our communities are safer with him and his co-defendant locked away.”
After months of lying to investigators in an attempt to hide his involvement in the case, Ryan eventually admitted that he assisted Stafon Jamar Davis, 28, of Savannah, in destroying a 2018 Honda Accord. The vehicle belonged to Abree Boykin, 24, a resident of post housing at Fort Stewart Army Reservation and the wife of a deployed U.S. Army soldier.
Davis, who is serving a 700-month prison sentence after pleading guilty to Premeditated Murder and to Possession of a Firearm by a Convicted Felon, shot Boykin twice as she slept in her apartment on July 9, 2018. To destroy evidence in the case, he enlisted the help of Ryan, whom he had met months earlier while the two were serving prison terms. A few hours after the murder, the two doused the vehicle with gasoline and set it on fire in a remote area of Hardeeville, S.C. The car exploded, and the burned vehicle later was hauled to a salvage yard and ultimately scrapped before investigators could track it down.
“Ryan’s sentence brings to an end a tragic story of cold-blooded murder and an attempted cover-up of a crime by two convicted felons,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Ryan joins his partner in the crime back in prison thanks to a determined investigation by the FBI, Army Criminal Investigation Command and the U.S. Attorney’s Office Southern District of Georgia.”
The case was investigated by the FBI and the Army Criminal Investigation Command, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard, and Middle District of Georgia Assistant U.S. Attorney Katelyn Semales.
Erie Man Indicted on Drug ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Steven Lamont Spearman, 52, as the sole defendant.
According to the Indictment presented to the court, on or about July 14, 2017, Spearman distributed more than twenty-eight grams of a mixture and substance containing a detectable amount of cocaine base.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Methamphetamine DistributionRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Marcus Dwayne Thompson, 34, as the sole defendant.
According to the Indictment presented to the court, on or about December 11, 2019, Thompson distributed more than fifty grams of a mixture and substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Crowley Man Sentenced on Drug Trafficking ChargesRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Alex Simien, Jr., 42, of Crowley, Louisiana, was sentenced by United States District Judge Michael J. Juneau to 135 months (11 years, 3 months) in prison, followed by 4 years of supervised release, for possession with intent to distribute methamphetamine.
Simien was indicted by a federal grand jury on February 20, 2020 for possession with intent to distribute controlled substances. He pleaded guilty to the charge in U.S. District Court on October 23, 2020. Evidence introduced at the hearing revealed that law enforcement agents with the Drug Enforcement Administration (“DEA”) began an investigation into distribution of the dangerous drug, crystal methamphetamine, in the Acadiana area. During their investigation, DEA agents determined that Simien was a source of supply for crystal methamphetamine in the area.
On April 27, 2019, officers from the Crowley Police Department responded to a disturbance call on North Avenue. During the call, law enforcement officers cleared a bedroom and found a male subject laying on the floor with his hands out under the bed. Officers ordered the male to stay on the ground and while conducting a pat down of Simien’s outer clothing, the officer saw the handle of a pistol where Simien’s hands were previously located. The officer secured the weapon and also found an open black bag under the bed and observed a large amount of a white crystalline substance, consistent with methamphetamine and seized the narcotics. A laboratory analysis of the white crystalline substance confirmed that it was methamphetamine.
The DEA and Crowley Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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Court Authorizes Service of John Doe Summons Seeking Identities of U.S. Taxpayers Who Have Used CryptocurrencyRead the Press Release
A federal court in the District of Massachusetts entered an order today authorizing the IRS to serve a John Doe summons on Circle Internet Financial Inc., or its predecessors, subsidiaries, divisions, and affiliates, including Poloniex LLC (collectively “Circle”), seeking information about U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency during the years 2016 to 2020. The IRS is seeking the records of Americans who engaged in business with or through Circle, a digital currency exchanger headquartered in Boston.
“Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “The Department of Justice will continue to work with the IRS to ensure that cryptocurrency owners are paying their fair share of taxes.”
“Tools like the John Doe summons authorized today send the clear message to U.S. taxpayers that the IRS is working to ensure that they are fully compliant in their use of virtual currency,” said IRS Commissioner Chuck Rettig. “The John Doe summons is a step to enable the IRS to uncover those who are failing to properly report their virtual currency transactions. We will enforce the law where we find systemic noncompliance or fraud.”
Cryptocurrency, as generally defined, is a digital representation of value. Because transactions in cryptocurrencies can be difficult to trace and have an inherently pseudo-anonymous aspect, taxpayers may be using them to hide taxable income from the IRS. In the court’s order, U.S. Judge Richard G. Stearns found that there is a reasonable basis for believing that cryptocurrency users may have failed to comply with federal tax laws.
The court’s order grants the IRS permission to serve what is known as a “John Doe” summons on Circle. The United States’ petition does not allege that Circle has engaged in any wrongdoing in connection with its digital currency exchange business. Rather, according to the court’s order, the summons seeks information related to the IRS’s “investigation of an ascertainable group or class of persons” that the IRS has reasonable basis to believe “may have failed to comply with any provision of any internal revenue laws[.]” According to the copy of the summons filed with the petition, the IRS is requesting that Circle produce records identifying the U.S. taxpayers described above, along with other documents relating to their cryptocurrency transactions.
The IRS issued guidance regarding the tax treatment of virtual currencies in IRS Notice 2014-21, which provides that virtual currencies that can be converted into traditional currency are property for tax purposes. The guidance explains that receipt of virtual currency as payment for goods or services is treated as income and that a taxpayer can have a gain or loss on the sale or exchange of a virtual currency, depending on the taxpayer’s cost to purchase the virtual currency (that is, the taxpayer’s tax basis).
Convicted Sex Offender Arrested on Multiple Child Ponography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Geimer, 54, of Rochester, NY, was arrested and charged by criminal complaint with receipt, distribution, and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on December 31, 2020, an undercover law enforcement officer downloaded a video file containing child pornography from a peer to peer sharing network. The IP address that shared the file was traced to the defendant. Subsequently, a federal search warrant was executed at Geimer’s residence on Lake View Park in Rochester. During the search, investigators seized several digital devices that contained child pornography, including 1825 videos and 16,238 images. Some of the videos appear to have been taken from a “Go Pro” by an individual, believed to be Geimer, concealing the camera at an amusement park and capturing video of children at a water park. Another video depicts an individual, believed to be the defendant, concealing the camera walking through his place of employment, including a pool area, capturing children in their bathing suits. And another video depicts an individual, again believed to be Geimer, concealing the camera and walking into a certain grocery store directly towards a girl approximately 8 to 10 years old.
In June 1989, the defendant was convicted following a jury trial in New York State Court of Sexual Abuse 2nd and Acting in a Manner Injurious to a Child Less than 16 Years Old and sentenced to a conditional discharge.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing on April 6, 2021, at 11:00 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Convicted Felon Sentenced to 25 Years in Federal Prison for Gun CrimeRead the Press Release
A 46-year-old Dallas man was sentenced to 25 years in federal prison of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Keldric Walker Thomas pleaded guilty in February 2020 to possession of a firearm in furtherance of a drug trafficking crime. Mr. Thomas was sentenced on Monday by U.S. District Judge David C. Godbey. Mr. Thomas was convicted in 2003 of possession of a firearm in furtherance of a drug trafficking crime.
According to plea papers, in July 2018, Dallas police officers observed Mr. Thomas committing multiple traffic offenses while operating a Chevrolet Malibu. Law enforcement made contact with Mr. Thomas and he was placed under arrest.
During a subsequent search of Mr. Thomas’s person, law enforcement recovered a .45 caliber magazine containing rounds of ammunition, a green tipped rifle round, cocaine, and methamphetamine. Mr. Thomas also possessed $2,364 in U.S. currency.
Officers also obtained a search warrant for Mr. Thomas’ Chevrolet Malibu. Inside the vehicle, law enforcement located a semi-automatic pistol and large quantities of methamphetamine and heroin.
The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Renee Hunter prosecuted the case.
Colombian Soccer Star Sentenced in the Eastern District of Texas for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SHERMAN, Texas – A Colombian soccer star was sentenced to federal prison today for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jhon Eduis Viafara Mina, 42, a native of Robles, Colombia, pleaded guilty on Nov. 23, 2020, to conspiracy to import five kilograms or more of cocaine into the United States and was sentenced to 135 months in federal prison today by U.S. District Judge Amos Mazzant. Viafara Mina, an international soccer star, previously played for the Colombian National Team and Once Caldas football club, as well for the English football clubs Portsmouth and Southampton, among many others.
“The defendant in this case had it all, worldwide fame, wealth, and stature—despite all of this, he chose to use his talents to advance the evil of the drug trade,” said Acting U.S. Attorney Nicholas Ganjei. “The Eastern District of Texas will identify drug trafficking operations and dismantle them at their source, stopping deadly drugs before they reach our shores. Traffickers should take note, no matter who you are; no matter where in the world you live; the United States will prosecute you if you join in a conspiracy to send drugs to our country.”
According to information presented in court, in August 2017, DEA Dallas Field Division Group 3, in conjunction with the DEA Bogota Country Office, the DEA San Jose Country Office, and the Panama City Country Office began an investigation into a cocaine drug trafficking organization operating out of Colombia, which included Jhon Eduis Viafara Mina, also known as “Futbolista,” “Goleador,” and “Makelele.” Viafara was involved in the logistical preparations of dispatching large cocaine shipments by aircraft or boat from Colombia to Mexico via Central America for subsequent distribution within the United States. Based on this conduct, Viafara was indicted by a grand jury based on June 13, 2018.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Claimed real estate investor charged with securities fraudRead the Press Release
ATLANTA - Richard J. Randolph, III, has been arraigned on federal charges of securities fraud. Randolph was charged in an information filed on April 1, 2021.
“Investors expect the companies that they invest in will operate with integrity,” said Acting U.S. Attorney Kurt R. Erskine. “The defendant allegedly went to great lengths to mislead potential clients, convincing some to invest over $1.5 million in the alleged scheme.”
“Creative fraud is still fraud,” said Special Agent in Charge Steve Baisel, U.S. Secret Service Atlanta Field Office. “Fortunately, the combined efforts of law enforcement partners are an effective way to stop bad actors.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Richard Randolph was the CEO, Chairman of the Board of Directors, and majority shareholder of Randolph Acquisitions, Inc., a company headquartered in Atlanta that publicly filed its financials with the Securities and Exchange Commission. He also controlled Gallagher Management Group and other related entities. In 2017 and 2018, Randolph sold over $1 million in Randolph Acquisition stock to various investors.
In 2017, Randolph began preparing to merge Gallagher Management Group into Randolph Acquisitions and sold Randolph Acquisitions shares to multiple investors. Gallagher Management also engaged an accounting firm to audit its 2016 financial statements. In connection with this audit, Randolph allegedly provided false information regarding Gallagher Management Group’s assets which were then reflected on the balance sheet of the 2016 financial statements:
- Randolph falsely claimed that Gallagher Management Group owned two buildings valued at a claimed $10 million combined. In reality, neither Gallagher Management Group, nor Randolph ever owned these properties.
- Randolph falsely valued a different property at $10.5 million with no associated liability. In reality, Gallagher Management Group purchased the property in or about September 2016 for $1.1 million with a $1.1 million mortgage loan secured by the property. It was sold in August 2017 for $1.2 million.
- Randolph falsely valued yet another property at $4.5 million that was acquired in January 2016 for $425,000 by an entity controlled by Randolph and was transferred to Gallagher Management Group in March 2017. In April 2018, the property was sold at auction for $687,500 after Gallagher Management Group defaulted on a $500,000 loan.
- Randolph provided a false bank statement showing a balance of over $2.5 million. The actual balance in this account was $58,198.78.
The audited financials included other misrepresentations such as falsely stating that Gallagher Management Group “has consistently maintained over $50 million dollars in assets, under management, annually.”
Gallagher Management Group also engaged a consultant to prepare a business valuation for the merger which relied upon Gallagher Management Group’s 2016 audited financial statements, alleged additional false property valuation information provided by Randolph, and false projections provided by Randolph. The report valued Gallagher Management Group at $31.3 million on an enterprise value basis and $33.8 million on an equity value basis.
In connection with the proposed merger between Randolph Acquisitions and Gallagher Management Group, Randolph Acquisitions made multiple filings with the Securities and Exchange Commission that attached the alleged false 2016 audited financial statements of Gallagher Management Group. Randolph directed investors to these filings. In addition to these documents, Randolph allegedly falsely claimed that Randolph Acquisitions owned EF Block when it did not. He allegedly falsely claimed that Randolph Acquisitions was close to securing a variety of large public and private contracts in the U.S. Virgin Islands, including hurricane remediation contracts and an agreement to manage the U.S. Virgin Islands public retirement fund, when in fact they never obtained any of those contracts.
These alleged misrepresentations materially increased Randolph Acquisitions’ apparent value and future prospects, when in reality, it was little more than a shell company with limited assets. Randolph allegedly induced 14 victims who relied upon the misrepresentations to invest over $1.5 million in Randolph Acquisitions.
Richard J. Randolph, III, 40, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Regina D. Cannon. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service, with assistance from the U.S. Securities and Exchange Commission. In a related civil matter, the U.S. Securities and Exchange Commission filed a complaint charging Randolph and he consented to entry of a judgment against him.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Central Indiana Man Faces Federal Fraud ChargesRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that George S. Blankenbaker Jr., 56, of Westfield, Indiana, was charged in federal court for two counts of wire fraud and one count of money laundering.
According to the information, between May 2008 and August 2016, Blankenbaker created three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC and Stargrower Asset Management, LLC (hereinafter the Stargrower Entities) and EDU Holding Trust (the Trust). He later used these entities, which he owned and managed, in the execution of a Ponzi and money laundering scheme.
“The victims of this scheme placed enormous trust in Mr. Blankenbaker to wisely manage and invest their hard-earned money,” said Childress. “Instead, he exploited their trust through deception and lies for his own personal gain.”
Blankenbaker persuaded more than 100 individuals to invest more than ten million dollars in the Stargrower Entities. He represented to investors that the funds they invested would be used to finance the use of shipping containers of food in the “international trade of fast moving consumer products similar to what you would find in a grocery store.” The investment funds received by Blankenbaker were deposited into Stargrower Entities bank accounts which he solely controlled and was the sole signatory.
Contrary to Blankenbaker promises to investors, he did not invest their money as he had described. On over 300 separate occasions between September 2016 and May 2019, Blankenbaker diverted the investment money he received to primarily make interest payments and return of principal payments to other Stargrower Entities investors, and to fund personal expenses and unrelated business ventures of his. Thirty-four investors lost over $1,400,000 in this scheme.
Blankenbaker other business entity known as EDU Holding Trust (the Trust), was designed to utilize investor funds to purchase life insurance policies on the secondary market at a price less than the face maturity amount of the policies. Investors in the Trust received a document created by Blankenbaker, entitled “life settlement purchase agreement” that they were beneficiaries of the Trust and that they would receive compensation from the profits generated when the life insurance policy matured, that is, when the insured died. In another document provided to investors, he said that a financial institution, the Bank of Utah, would serve as an escrow agent to receive the proceeds upon the maturity of the life insurance policies and then distribute the funds to the investors appropriately.
In August 2016, one of the policies purchased by the Trust died, and a proceeds check in an amount in excess of 2.5 million dollars was issued to the Trust by the life insurance company on which the policy was drawn. The check was not deposited into the Bank of Utah escrow account, but was rather deposited by Blankenbaker into an account he opened at PNC Bank in the name of EDU Holding Esc Acct. Although some of the funds from this deposit were appropriately transferred to investors in the Trust, others were transferred to another account he controlled at PNC Bank in the name of one of the Stargrower Entities. These funds were used, in part, for business and personal expenses of Blankenbaker unrelated to the purposes of the Trust. This scheme resulted in a loss of $110,200 to an investor in the Trust.
This case was investigated by IRS Criminal Investigation, the United States Postal Inspection Service, and the Securities and Exchange Commission.
“The Special Agents of Internal Revenue Service Criminal Investigation (IRS-CI) are experts at unraveling the fraudulent actions of those, such as George S. Blankenbaker Jr, who scheme to defraud investors,” said Acting Special Agent in Charge Tamera Cantu of IRS-CI’s Chicago Field Office. "We are committed to investigating money laundering as part of our mission to protect the financial well-being of honest, hard-working Americans. We will continue to work with our law enforcement partners to prosecute swindlers like Blankenbaker.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division stated, “The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to advance their fraud schemes. Crimes of these type bring grave financial and personal hardships to their victims. Criminal misuse of the U.S. Mail will not be tolerated, and our agency will continue to go after those who seek to exploit vulnerable victims. This case illustrates the benefit of a strong partnerships between U.S. Postal Inspectors and our colleagues in local, state, and federal law enforcement.
According to Assistant U.S. Attorney James M. Warden, who is prosecuting this case for the government, Blankenbaker faces up to 10 years imprisonment for the one count of money laundering charge, and up to 20 years for each wire fraud charge, a maximum fine of $250,000 as to each count, and up to three years of supervised release following any prison term. Also filed today was a petition to enter plea of guilty and plea agreement, whereby Blankenbaker has indicated that he intends to plead guilty to all the counts of the Information.
An information is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
Career Coach Pleads Guilty to Stealing More Than $68,000 from Federally Funded Workforce Development ProgramRead the Press Release
CHARLOTTE, N.C. – Jessica Anne Miller, 38, of Hickory, N.C., pleaded guilty to federal charges today for stealing more than $68,000 from a federally funded workforce development program, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David C. Keesler presided over the plea hearing.
Acting U.S. Attorney Stetzer is joined in making this announcement by Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General (DOL-OIG).
According to filed plea documents and today’s court hearing, from July 2016 to November 2019, Miller was employed as a career coach by an entity contracted by a nonprofit association of local governments to provide training to job seekers, using federal funds made available by the U.S. Department of Labor under the Workforce Innovation and Opportunity Act (WIOA). WOIA was signed into law in 2014, and it is designed to provide qualified individuals with access to training, education, and support services, and assistance with obtaining employment. As part of WOIA, qualified individuals can also be reimbursed for certain eligible expenditures such as mileage, costs and fees, and tools of the trade, among others.
According to court records, as career coach, Miller was responsible for providing career guidance, case management and follow up to participants in the youth program. As Miller admitted in court today, while serving as a career coach, she engaged in a scheme to divert more than $68,000 of government funds for her own benefit, by creating bogus documents, falsifying signatures, and making false and misleading statements to qualified individuals who were supposed to be the recipients of the WOIA funds.
According to court records, to perpetuate the scheme, in some instances Miller created fraudulent documents for mileage reimbursement on behalf of students enrolled in the program, and then cashed the checks and kept the proceeds for herself. When victims inquired about the status of their mileage reimbursement claims, Miller gave numerous bogus excuses, including that the program no longer had reimbursement funds available. In other instances, court records show that Miller created fraudulent documents that falsely indicated student-victims had received vaccines and were seeking reimbursements for the costs associated with those vaccines, when in truth and fact the student-victims had not received the vaccines, had no knowledge of the reimbursement forms submitted on their behalf, and did not receive the checks issued in their names. Instead, Miller kept the reimbursement checks, forging the signatures of the student-victims so that she could cash the checks and keep the proceeds for herself.
In other instances, Miller created fraudulent documents that falsely indicated that qualified individuals had made reimbursable purchases, such as tools of the trade, and were seeking reimbursement for those costs. Miller then submitted the fraudulent documents and cashed the reimbursement checks. Miller also created and submitted fraudulent documents, forging student-victims’ signatures, indicating that student-victims had successfully completed certain milestones that would have entitled them to gift cards. Instead of providing those gift cards to the student-victims, Miller kept them for herself.
As Miller admitted in court today, Miller also fraudulently opened bank accounts in the names of at least two student-victims and used those accounts to cash the fraudulent reimbursement checks. Additionally, Miller opened American Express accounts in the names of three student-victims, which she subsequently used to deposit some of the fraudulently obtained reimbursement checks. In total, Miller defrauded at least 40 individuals and diverted more than $68,000 in government funds for her own personal enrichment.
Miller pleaded guilty to wire fraud scheme, which carries a maximum prison term of 20 years and a $250,000 fine. Following today’s plea hearing, Miller was released on bond. A sentencing date for Miller has not been set.
In making today’s announcement, Acting U.S. Attorney Stetzer commended DOL-OIG for their investigation of the case and thanked the North Carolina State Bureau of Investigation and the Conover Police Department for their invaluable assistance.
Assistant United States Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Bristol-Myers Squibb to Pay $75 Million to Resolve False Claims Act Allegations of Underpayment of Drug Rebates Owed Through MedicaidRead the Press Release
PHILADELPHIA, PA – Deputy United States Attorney Louis D. Lappen announced that Bristol-Myers Squibb (“BMS”) has agreed to pay the United States and participating states a total of $75 Million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program. Of that amount, BMS will pay approximately $41 million, plus interest, to the United States, and the remainder to states participating in the settlement.
Pursuant to the Medicaid Drug Rebate Program (“MDRP”), drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the Average Manufacturer Prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. This settlement resolves allegations that BMS underreported AMPs for a number of its drugs by improperly reducing the reported AMPs for service fees paid to wholesalers, and by improperly excluding from the reported AMPs additional value it received pursuant to price appreciation provisions in its contracts with wholesalers. As a result, BMS allegedly underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
“The Department of Justice is committed to ensuring that pharmaceutical manufacturers comply with the requirements of programs such as the Medicaid Drug Rebate Program,” said Deputy United States Attorney Lappen. “It is critical that these companies report accurate pricing information used in the rebate calculations so that the government and taxpayers benefit from the program as Congress intended.”
This settlement resolves a lawsuit filed by Ronald J. Streck under the whistleblower provisions of the False Claims Act, which permit private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Eastern District of Pennsylvania and is captioned United States ex rel. Streck v. Bristol-Myers Squibb Co., Civil Action No. 2:13-CV-7547 (E.D. Pa.). The government declined intervention of this matter, and the relator and his counsel proceeded with the case. Relator Streck is represented by Dan Miller of Walden Macht & Haran LLP, Joy Clairmont of Berger & Montague, PC, Robert Jackson Martin of Martin Law, PC, and Peter Kohn of Faruqi and Faruqi.
“We thank Mr. Streck and his counsel for their efforts, which were critical to the favorable resolution of this case,” said Deputy U.S. Attorney Lappen. The settlement was a coordinated effort among the Department of Justice Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Pennsylvania, and the National Association of Medicaid Fraud Control Units. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorney Eric D. Gill and Assistant United States Attorney Charlene Keller Fullmer, Deputy Chief of the Civil Division.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Bartlesville Man Pleads Guilty for Downloading and Viewing More than 1200 Images of Child PornographyRead the Press Release
A 76-year-old Bartlesville man who downloaded and viewed more than 1200 images and 79 videos of child pornography on his electronic devices pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Clint Johnson.
Richard Lee Ryan Jr. pleaded guilty to possession of child pornography. U.S. District Judge John F. Heil III ordered the defendant to self-surrender to the U.S. Marshals Service on April 5, and set sentencing for June 30, 2021.
“Child pornography is not a victimless crime. For nearly a year, Richard Ryan Jr. hid behind a screen and downloaded images of children being exploited and raped. With every download and view, he revictimized those children again and again,” said Acting U.S. Attorney Clint Johnson. “Thanks to our partners at the FBI and Homeland Security Investigations, Mr. Ryan will be held accountable for his actions.”
Ryan Jr. admitted that from June 26, 2019, to June 6, 2020, he knowingly possessed and viewed child pornography, which involved at least one prepubescent minor and a minor that had not attained 12 years of age engaging in sexually explicit conduct.
Investigators initially discovered Ryan Jr. when he uploaded an image of child pornography to a chat on an online messaging app. On June 6, 2020, a federal search warrant was executed at the defendant’s home and numerous electronic devices were seized, five of which contained child pornography. Investigators discovered 79 videos and more than 1200 images depicting child rape and bestiality on the devices.
The FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Benjamin D. Hargrove and Christopher J. Nassar are prosecuting the case.
Allentown Man Sentenced to 70 Months’ Imprisonment for Filing Fraudulent Tax ReturnsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Julio Polanco Suarez, age 44, of Allentown, Pennsylvania, to 70 months’ imprisonment, for conspiring to defraud the government and for committing aggravated identity theft.
According to Acting United States Attorney Bruce D. Brandler, Suarez pleaded guilty to conspiring to defraud the government between March 2009 and September 2016. Suarez and his conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. The conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Suarez admitted that between $1.5 million and $3.5 million in losses to the U.S. Treasury occurred as a result of the criminal activity.
During the sentencing hearing, Judge Mariani highlighted the losses caused to the United States government by the scheme, and how Suarez, who is a citizen of the Dominican Republic, abused the rights and freedoms he enjoyed while living in the United States. Suarez faces deportation at the conclusion of his sentence of imprisonment. Judge Mariani also ordered Suarez to pay $1,189,256.50 in restitution.
Three other defendants were convicted and sentenced in the course of the investigation:
- Marien Torres-Acevedo, age 38, of Allentown, Pennsylvania, was sentenced to 75 months’ imprisonment and faces deportation;
- Francisco Rodriguez-Polanco, age 35, of New York, New York, was sentenced to 54 months’ imprisonment and faces deportation; and
- Alfred LiPuma, age 81, of Lake Harmony, Pennsylvania, was sentenced to three years of probation and paid $2.1 million in restitution and fines.
The matter was investigated by agents from the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service, Homeland Security Investigations, United States Postal Inspectors, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Acting U.S. Attorney Leif Johnson, the Confederated Salish and Kootenai Tribes and FBI Announce Completion of Tribal Community Response Plan to Address Missing and Murdered Indigenous PersonsRead the Press Release
PABLO — The U.S. Attorney’s Office for the District of Montana, the Confederated Salish and Kootenai Tribes (CSKT) of the Flathead Indian Reservation and the FBI today announced the completion of the nation’s first Tribal Community Response Plan (TCRP) as part of a pilot project to address cases of Missing and Murdered Indigenous Persons.
Acting U.S. Attorney Leif Johnson, CSKT Chairwoman Shelly R. Fyant and FBI Executive Assistant Director Terry Wade presented the TCRP to tribal representatives during a meeting today at tribal headquarters in Pablo.
The U.S. Attorney’s Office in Montana and CSKT on Dec. 1 launched the pilot project in accordance with the U.S. Department of Justice’s Missing and Murdered Indigenous Persons (MMIP) Initiative, and the President’s Operation Lady Justice Task Force, and in furtherance of the goals in Savanna’s Act.
CSKT, with participation from federal, tribal, state and local law enforcement representatives and community organizations, developed guidelines for the TCRP through a series of working group meetings.
“CSKT’s development of a community response plan is a historic milestone in addressing this serious national issue. CSKT’s initiative to join in this pilot project will help other tribes across the country as they develop their own TCRPs. I want to thank our office’s Missing and Murdered Indigenous Persons Coordinator, Ernie Weyand, CSKT Chairwoman Fyant, Council member and secretary, Ellie Bundy, CSKT policy analyst, Jami Pluff, and all of the partners and stakeholders who participated in this process,” Acting U.S. Attorney Johnson said.
“I’m honored to say that a lot of hard work went into reaching this milestone,” said CSKT Chairwoman Fyant. “By coming together in this effort, we have shown how true partnerships work, that by collaborating we can achieve incredible goals. We are not slowing down now. We will continue to bring light to this crisis as long as it is necessary and provide the essential law and order, victim services, media/public communications and community outreach work with all available resources. Thanks to everyone for their dedication and commitment to supporting the CSKT Community Response Plan.”
FBI Executive Assistant Director (EAD) Terry Wade, who oversees the Criminal, Cyber, Response, and Services Branch (CCRSB), stated: “The FBI has been dedicated to the Missing and Murdered Indigenous Persons (MMIP) Initiative since its inception and remains committed to the initiative. Working directly with forward leaning partners like the Confederated Salish & Kootenai Tribes (CSKT) is critical to improving the safety and security of our communities. The development of the Tribal Community Response Plan (TCRP) is yet another step in the right direction and will facilitate a coordinated response in these time sensitive investigations.”
After pilot projects are completed, Savanna’s Act directs the U.S. Attorney’s Office to continue working with other tribal governments to ensure guidelines are developed across Montana.
CSKT was selected for the pilot project in Montana because it had expressed an interest in participating, has worked on the MMIP issue, including establishing a tribal task force, and has significant community impact related to cases involving tribal members. In addition, CSKT was able to meet despite COVID-19 restrictions.
The working group meetings included representatives from the U.S. Attorney’s Office, CSKT, federal, state, tribal and local law enforcement (including the Flathead Tribal Police Department, Lake County Sheriff’s Office, Missoula County Sheriff’s Office, Flathead County Sheriff’s Office, Sanders County Sheriff’s Office, Polson Police Department, Ronan Police Department, FBI, U.S. Marshals Service, and the Montana Department of Justice) and community organizations.
31 March 2021
Westlake man sentenced to 13 years for possession with intent to distribute meth, cocaine, marijuana and firearms offensesRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Ryan Gallo, age 26, of Westlake, Ohio, was sentenced on Tuesday, March 30, to 157 months imprisonment by U.S. Judge John R. Adams. Gallo pleaded guilty in December of 2020 to possession with intent to distribute methamphetamine, cocaine, marijuana, felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime.
“Federal convictions for trafficking in methamphetamine, cocaine and marijuana, when coupled with a conviction for carrying a loaded firearm to further those drug dealing efforts, will result in a significant term of incarceration, like the sentence imposed here,” said Acting U.S. Attorney Bridget M. Brennan. “We are grateful for the hard work and diligent efforts of the Broadview Heights Police Department and Drug Enforcement Administration.”
“The sentencing of Gallo to more than 13 years in prison puts all drug traffickers on notice that they will be held accountable for their illegal conduct,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Throughout the course of this investigation, agents seized firearms, methamphetamines and marijuana from Gallo. DEA remains committed to protecting Ohioans from those who prey on our communities.”
On August 26, 2020, Gallo was stopped by an officer with the Broadview Heights Police Department after reports that he had left the scene of an accident and was driving erratically. The officer identified Gallo as the driver and noted recent damage to the front of his vehicle. After identifying alcohol and drug paraphernalia in the vehicle, Gallo was placed under arrest, and his person and vehicle were searched.
During the search, officers located approximately 473 grams of methamphetamine, 25 grams of cocaine, 1,134 grams of marijuana and a loaded .32 caliber revolver. Gallo is prohibited from possessing a firearm due to a 2018 drug trafficking conviction in the Cuyahoga County Court of Common Pleas.
This investigation was conducted by the Drug Enforcement Administration and the Broadview Heights Police Department. This case was prosecuted by Assistant U.S. Attorney Margaret A. Sweeney.
Wayne and Clarke County Men Sentenced for Methamphetamine Trafficking OffensesRead the Press Release
DES MOINES, IA – On Tuesday, March 30, 2021, United States District Court Senior Judge James E. Gritzner sentenced Jaime Morales Cisneros, age 27, of Corydon, to 126 months in prison for conspiracy to distribute five grams or more of actual methamphetamine announced Acting United States Attorney Richard D. Westphal. On the same date, Judge Gritzner sentenced Chad Andrew Moore, age 39, of Allerton, to 141 months in prison for conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine; and Seth Brian Miller, age 28, of Corydon, to four years of probation for conspiracy to distribute methamphetamine.
The above individuals were the last participants to be sentenced of the defendants charged in this methamphetamine conspiracy. On March 10, 2021, Judge Gritzner sentenced Travis Wesley Boyce, age 47, of Humeston, to 97 months in prison for conspiracy to distribute methamphetamine. On March 10, 2021, Judge Gritzner sentenced Ruben Rios-Sanchez, age 33, of Osceola, who was charged in a separate indictment, to 300 months in prison for conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine. Following each of the prison terms the defendants will serve several years of supervised release.
In 2017 and 2018, Osceola-resident Rios-Sanchez was supplying Morales with methamphetamine for re-distribution. Morales in turn supplied Moore, Boyce, and Miller with methamphetamine that they sold to customers in South Central Iowa. At times, Rios-Sanchez also directly supplied Moore, Boyce, and Miller with methamphetamine. The conspiracy involved drug transactions in several South-Central Iowa Counties, including Wayne, Clarke, and Lucas.
This case was investigated by the Wayne County Sheriff’s Office, Iowa Division of Narcotics Enforcement, South Central Iowa Drug Task Force, Osceola Police Department, Chariton Police Department, Centerville Police Department, Clark County Sheriff’s Office, U.S. Drug Enforcement Administration, Des Moines Police Department, Mid-Iowa Drug Task Force, and the Wayne County Attorney’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Washington Man Pleads Guilty to $244 Million Ghost-Cattle ScamRead the Press Release
A Washington man pleaded guilty today to defrauding Tyson Foods Inc. (Tyson) and another company (Company 1) out of more than $244 million by charging them under various agreements for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not actually exist.
According to court documents, Cody Allen Easterday, 49, of Mesa, used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and Company 1 under which Easterday Ranches agreed to purchase and feed cattle on behalf of Tyson and Company 1. Per the agreements, Tyson and Company 1 would advance Easterday Ranches the costs of buying and raising the cattle. Once the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced (plus interest and certain other costs), retaining as profit the amount by which the sale price exceeded the sum repaid to Tyson and Company 1.
Beginning in approximately 2016 and continuing through November 2020, Easterday submitted and caused others to submit false and fraudulent invoices and other information to Tyson and Company 1. These false and fraudulent invoices sought and obtained reimbursement from the victim companies for the purported costs of purchasing and growing hundreds of thousands of cattle that neither Easterday nor Easterday Ranches ever purchased, and that did not actually exist. As a result of the scheme, Tyson and Company 1 paid Easterday Ranches over $244 million for the purported costs of purchasing and feeding these ghost cattle.
Easterday used the fraud proceeds for his personal use and benefit, and for the benefit of Easterday Ranches, including to cover approximately $200 million in commodity futures contracts trading losses that Easterday had incurred on behalf of Easterday Ranches. In connection with his commodity futures trading, Easterday also defrauded the CME Group Inc. (CME), which operates the world’s largest financial derivatives exchange. On two separate occasions, Easterday submitted falsified paperwork to the CME that resulted in the CME exempting Easterday Ranches from otherwise-applicable position limits in live cattle futures contracts.
“For years, Cody Easterday perpetrated a fraud scheme on a massive scale, increasing the cost of producing food for American families,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Criminal Division’s prosecutors are committed to swiftly and thoroughly prosecuting frauds affecting our nation’s agricultural and other commodities markets, whether in the heartland or on Wall Street.”
“I commend the agents with the Federal Deposit Insurance Company Office of the Inspector General and the U.S. Postal Inspection Service for their dedication to investigating this case and tenacity in ferreting out the fraudulent activity to which the defendant has pleaded guilty,” said Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington.
“Today’s guilty plea holds the defendant responsible for his extensive and coordinated fraud over many years, resulting in more than $240 million of illicit gains,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “The defendant submitted false and fraudulent documentation, and then brazenly used the proceeds to cover his losses and for his personal benefit. This scheme was unraveled through rigorous and diligent investigative work with our law enforcement partners, and the FDIC-OIG remains committed to helping preserve the integrity of the banking sector.”
“Producing and providing false invoices and information on goods and services never delivered, were the fundamental key in defrauding an American multinational company out of hundreds of millions of dollars,” said Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service Criminal Investigations Group. “This case highlights the collaborative investigative work undertaken by the U.S. Postal Inspection Service and its law enforcement partners to protect consumers and businesses from duplicitous practices. Anyone who engages in these fraudulent and deceptive activities will be brought to justice.”
Easterday pleaded guilty to one count of wire fraud and agreed to repay $244,031,132 in restitution. He is scheduled to be sentenced on August 4 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Deposit Insurance Corporation Office of Inspector General and the U.S. Postal Inspection Service are investigating the case.
Acting Principal Assistant Chief Avi Perry and Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell E. Smoot of the Eastern District of Washington are prosecuting the case.
The Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.
Versailles Man Sentenced to 240 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. — A Versailles, Ky., man, David McKinney, 52, was sentenced to 240 months in federal prison on Wednesday, by U.S. District Judge Karen Caldwell, after previously pleading guilty to distribution of 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, McKinney admitted that, from November to December 2019, he distributed more than 50 grams of methamphetamine. On December 10, 2019, during traffic stop, law enforcement found McKinney in possession of methamphetamine and a handgun. The firearm was loaded with a round in the chamber. Law enforcement also located a digital scale in McKinney’s pocket. McKinney admitted that he possessed the handgun for his protection and to further his drug trafficking crimes.
McKinney pleaded guilty in October 2020.
Under federal law, McKinney name must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Lt. Colonel Phillip Burnett, Acting Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DEA and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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United States Attorney's Office District of Arizona February 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
190 individuals were charged in February with illegal reentry
A. 151 of those 190 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 151 individuals with non-immigration criminal records:
1. 44 had violent crime convictions, including:
2 individuals had homicide convictions
1 individual had a sex offense conviction
10 individuals had domestic violence convictions2. 5 had property crime convictions
3. 24 had DUI convictions
4. 78 had drug crime convictionsB. 83 of those 190 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
28 individuals were charged in February with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in February with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in March 2020 of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2021-019_February Immigration and Border Crimes Report
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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.Union City Man Charged with Robbery in Connection with Series of Bay Area Commercial RobberiesRead the Press Release
OAKLAND - Nelson Enrike Ramirez was arraigned today on a federal criminal complaint charging him with robbery affecting interstate commerce, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The complaint charges Ramirez, 40 years old and from Union City, with a November 6, 2020, robbery of a 7-Eleven convenience store on Washington Boulevard in Fremont. According to the complaint, Ramirez entered the store wearing a black or grey inside-out hooded sweatshirt, a black COVID-19-style mask, and a grey glove. He allegedly told the clerk he needed a soda from the soda machine and as the clerk approached to help, Ramirez pulled what appeared to be a black handgun from his pocket. He ordered the clerk to walk to the cash register, where the clerk gave Ramirez approximately $200 from the register. Ramirez looked in another register and then left the store.
The criminal complaint also alleges that between May and November 2020, Ramirez committed 21 commercial robberies and two attempted commercial robberies in the San Francisco Bay Area, with 22 of them taking place in October or November 2020. According to the complaint, Ramirez committed his robberies in Fremont, Newark, Hayward, Union City, Campbell, Milpitas, Mountain View, Los Altos, and Sunnyvale.
Ramirez made his initial appearance in federal court today before United States Magistrate Judge Susan van Keulen. Ramirez remains in custody and his next scheduled appearance is on Friday, April 2, for status on his detention before United States Magistrate Judge Robert M. Illman.
A complaint merely alleges that crimes have been committed, and Ramirez is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Ramirez faces a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss inflicted on victims, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Noah Stern is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske and Kathleen Turner. The prosecution is the result of an investigation by the FBI, the Fremont Police Department, the Union City Police Department, the Newark Police Department, the Hayward Police Department, the Campbell Police Department, the Milpitas Police Department, the Mountain View Police Department, the Los Altos Police Department, and the Sunnyvale Police Department.
Thai National Charged with Fraudulently Selling Unapproved Chloroquine Phosphate as A Treatment for Covid-19Read the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Chinnapatr Chunhasomboon, age 41, of Bangkok, Thailand, was indicted on March 30, 2021, by a federal grand jury for fraudulently selling chloroquine phosphate to United States citizens as a treatment for COVID-19.
According to Acting United States Bruce D. Brandler, the indictment alleges that Chunhasomboon sold unapproved chloroquine phosphate to customers worldwide, including in the United States, as a treatment for both COVID-19 and for malaria. Chunhasomboon allegedly evaded and attempted to evade U.S. Customs inspectors by disguising his shipments of chloroquine phosphate as fish tank accessories and cell phone cases, among other things. Chunhasomboon also allegedly undervalued the shipments to be worth only $10 to $12, when in fact they often were worth several hundred dollars each. Chunhasomboon allegedly made tens of thousands of dollars from his scheme.
Chloroquine phosphate is not approved by the FDA as a COVID-19 treatment, and previously was approved on an emergency basis only in controlled hospital settings and from approved sources. The CDC previously reported that two individuals who ingested chloroquine phosphate they obtained for treating aquarium fish did so as a prophylactic measure against COVID-19. One of those individuals died, and one was left critically ill.
Chunhasomboon is charged with two counts of mail fraud and three counts of wire fraud for selling chloroquine phosphate to four customers located in Pennsylvania. He also is charged with two counts of smuggling chloroquine phosphate into the United States, two counts of introducing misbranded drugs into U.S. commerce, and two counts of introducing unapproved new drugs into U.S. commerce. Chunhasomboon further is charged with two counts of making false statements to federal agents, denying that he sold chloroquine phosphate as either a treatment for COVID-19 or for malaria.
The case was investigated by Homeland Security Investigations, with assistance from the Food and Drug Administration. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Criminal indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Texas Man Pleads Guilty to Conspiring with a Montgomery Doctor to Illegally Sell Prescription DrugsRead the Press Release
Montgomery, Alabama – On Tuesday, March 30, 2021, Deandre Varnel Gross, 36, of Converse, Texas, appeared in federal court and pleaded guilty to conspiring to unlawfully distribute oxycodone, announced Acting United States Attorney Sandra J. Stewart.
According to court documents, Gross conspired with Dr. D’livro Lemat Beauchamp, a Montgomery physician, to unlawfully distribute oxycodone, a Schedule II opioid controlled substance. Specifically, Gross and Beauchamp agreed that Gross would pay Beauchamp for writing prescriptions for medications containing oxycodone, despite there being no medical reason to do so. Pursuant to the arrangement, Beauchamp, who was practicing at Obelisk Healthcare at the time, wrote monthly prescriptions for 90 tablets containing 30-milligrams of oxycodone hydrochloride. After receiving the prescriptions, Gross would get them filled at a Montgomery-area pharmacy and sell the pills to others. Gross would then pay Beauchamp a portion of the money he received from selling the illegally obtained drugs.
During his plea hearing, Gross also admitted that he recruited others to participate in the above-described scheme. Gross would consult with Beauchamp and then direct other individuals to make appointments to see the doctor to get oxycodone prescriptions. The individuals recruited by Gross would get their prescriptions filled, give the pills to Gross or another individual acting at Gross’s direction, and receive payment for his or her services. Gross, or another individual acting at his direction, would then sell the illegally prescribed drugs. Additionally, the plea agreement revealed that after an individual recruited by Gross had an initial appointment with Beauchamp, he or she did not continue to see the physician each month. Instead, Beauchamp would give the prescriptions to Gross, who would pass them along to the individuals to take to pharmacies to be filled. After obtaining pills from a pharmacy, a participant in the scheme would then give the pills to Gross or another individual acting at Gross’s direction.
During the sentencing hearing, Gross acknowledged that this scheme operated from as early as 2014 through early 2020.
Gross’s sentencing hearing will occur on July 1, 2021. At that hearing, Gross faces a sentence of up to 20 years in prison and substantial financial penalties. Beauchamp pleaded guilty to conspiring to unlawfully distribute oxycodone in October of 2020. His sentencing hearing is scheduled for June 25, 2021.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad. The Shelby County Sheriff’s Office, the Montgomery Police Department, and the Alabama Board of Medical Examiners, and the United States Department of Health and Human Services – Office of Inspector General assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour are prosecuting the case.