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Thursday 11 February 2021
Salt Lake City Violent Crime Reduction Partnership Announces the Results of First Month of ActionRead the Press Release
One month ago, Mayor Mendenhall of Salt Lake City, Chief Mike Brown of the Salt Lake City Police Department and Commissioner Jess Anderson of the Utah Department of Public Safety joined members of the Utah federal law enforcement community, including United States Marshal Matthew Harris and United States Attorney John Huber, to announce a strategic partnership to reduce violent crime in Salt Lake City.
Since that time, the partnerships gained have been central to the success of this strategic initiative. Leaders from every federal law enforcement agency in Utah with a mission to combat violent crime have joined the partnership, including the Bureau of Alcohol Tobacco and Firearms, the Drug Enforcement Agency, the FBI, Homeland Security Investigations, and the United States Marshals Service. The partnership has also gained valuable partners in the Utah State Bureau of Investigation, the Unified Police Department, the Salt Lake County Sheriff’s Office, and the Salt Lake County District Attorney’s Office.
Since the beginning of January, this partnership has resulted in 24 defendants who present a threat to the safety to the citizens of Salt Lake City being charged or convicted in federal court. Of these 24 defendants, 16 illegally possessed firearms, and nine of the firearms involved in these cases were reported stolen; nine are currently on probation or parole for other offenses; eight have been charged with federal drug trafficking violations; seven are affiliated with a street gang; and five have a previous or current domestic violence charge; the narcotics seized includes heroin, methamphetamine, cocaine, and crack cocaine.
Examples of cases that have come from the partnership include Jordan Gonzales, 27, of Salt Lake City, who was allegedly involved in a drive-by shooting on January 20 in Salt Lake City. Gonzales was charged in federal court with one count of illegally possessing a firearm within a day of his arrest thanks to the ATF. The federal complaint filed by the United States alleges that Gonzales is a Norteno gang member who was the driver of a car involved in a drive-by shooting who fled from the police during a pursuit. After his vehicle became inoperable, it is alleged that Gonzales exited the driver’s side door, began to flee on foot, and removed a firearm from his waistband while an officer was within 5-10 feet of him. Due to the efforts of the SLCPD, the firearm was recovered, and Gonzales was apprehended after the deployment of a K9 officer. Gonzales’ case is currently pending in United States District Court.
Brian Keith Stack, 60, of Salt Lake City, is currently under indictment in federal court for allegedly enticing a minor to engage in sexual activity in Salt Lake City. Stack was charged by a federal grand jury with two counts related to the enticement of a minor and the attempted production of child pornography. This case was investigated by the SLCPD and brought to federal court due to the enhanced partnership with the United States Attorney’s Office.
Artemio Rivera-Luna, 34, of West Valley City, has been charged with three counts related to the distribution of multiple pounds of heroin and methamphetamine, along with the illegal possession of nine firearms. Due to the partnership with HSI and SBI, Rivera-Luna was charged in federal court on January 20 for conduct that occurred in Salt Lake City, and his case is currently pending.
Kirk Madsen, 41, of Granstsville, has been federally indicted for the possession of illegal firearms. Madsen allegedly opened fire with a large capacity automatic rifle outside of a Salt Lake City apartment complex during a domestic violence related incident. According to court documents, he admitted to emptying an entire 30 round rifle magazine during the incident. Because of the close partnership between the FBI, SLCPD, and the USAO, Madsen was arrested and indicted on federal charges on February 3.
“We mean what we say,” said United States Attorney John W. Huber. “As partners, we are serious in our commitment to aggressively pursue justice in Utah’s capital. Our goal is to make Salt Lake City a safer place, and after one month of targeted work, we are off to a promising start.”
“It’s our job to ensure residents, businesses, and visitors are safe in Salt Lake City and I am encouraged by the early outcomes of this partnership,” Salt Lake City Mayor Erin Mendenhall said. “These apprehensions are an important step in making a difference for our community and reducing our crime rates.”
“While we expected to see some early success, the results so far have exceeded our expectations. Keeping these offenders off the street not only helps bring justice to their victims, but also keeps others from becoming victims,” said Salt Lake City Police Chief Mike Brown. “The success of our partnerships will ultimately be measured in our ability to keep our community safe by limiting the opportunity for criminals to pray on our neighbors, and this is a great start.”
"The Utah Department of Public Safety, State Bureau of Investigation is committed to removing those who victimize our communities,” said DPS Commissioner Jess Anderson. “We are excited to be part of an extensive and ongoing crime reduction effort in Salt Lake City. We appreciate the great partnerships and are thrilled to see the early success of this project."
"The FBI plays a key role in combatting violent crime, focusing on issues that pose major threats to our society," said Acting Special Agent in Charge Robert Meacham of the Salt Lake City FBI. "No community is untouched, which is why a concerted effort is necessary to fight this issue. Partnerships pool together the best of what law enforcement agencies have to offer. When we share resources, intelligence, and skills, it allows us to remain focused on one goal - keeping our communities safe."
“ATF’s success in fighting violent crime has always been a direct result of our strong partnerships with the Salt Lake City Police Department, the State of Utah, our local law enforcement partners, and the U.S. Attorney’s Office,” said ATF Denver Field Division Special Agent in Charge David S. Booth. “With the combined dedication and skill of our Federal partners, I am confident we will have even greater success in the future and ensure that our communities stay safe.”
“HSI routinely leverages its investigative authority and expertise in partnership with federal, state and local law enforcement colleagues to address violent crime,” said HSI Assistant Special Agent in Charge Steve Andres. “We bring the ability to fight local crime and elevate it to a national or even international level as criminal networks are uncovered,” said Andres. “Our partnerships act as a force multiplier to keep our community safe.”
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Sacramento Man Charged with Fentanyl OffenseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Assadulla Mohammed Khaliqdad, 26, of Sacramento, charging him with possessing fentanyl for distribution and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers responded to Khaliqdad’s residence based on a report of shots fired. In Khaliqdad’s bedroom, officers found thousands of counterfeit oxycodone pills containing fentanyl, a loaded 9 mm handgun, and over $28,000 in cash.
This case is the product of an investigation by the Drug Enforcement Administration and the Sacramento Police Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Khaliqdad faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison on the fentanyl charge and a maximum statutory penalty of 10 years in prison for being a felon in possession of a firearm. 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 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 www.justice.gov/OCDETF.
Randolph Man Sentenced for Firearms OffensesRead the Press Release
BOSTON – A Randolph man was sentenced today in federal court in Boston for two firearms offenses.
Levenson Merilus, 29, of Randolph, was sentenced by U.S. District Court Judge Denise J. Casper to time served and two years of supervised release. In issuing this sentence, Judge Casper cited Merilus’s successful completion of the Court-run RISE (Repair, Invest, Succeed, Emerge) Program, which is designed to aid in the rehabilitation of applicable defendants who have pleaded guilty and are under pretrial supervision prior to sentencing.
In February 2020, Merilus pleaded guilty to one count of conspiracy to deal in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer.
Between February and March 2019, Merilus conspired with co-defendant Charles Slayden Jr. to purchase firearms and re-sell them for profit to individuals in Boston. Specifically, Merilus purchased at least seven guns from a licensed dealer, falsely claiming to be purchasing them for himself.
Slayden previously pleaded guilty and was sentenced in December 2020 to 15 months in prison and three years of supervised release.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher S. Mason, Superintendent of the Massachusetts State Police made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Philadelphia Man Pleads Guilty to Narcotics TraffickingRead the Press Release
Jackson, Miss. – Landon Marquale Dupree, 35, of Philadelphia, Mississippi, pled guilty yesterday before U.S. District Judge Kristi H. Johnson, to possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Jack P. Stanton, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
Although Dupree had previously been convicted of selling cocaine in Neshoba County, Mississippi, he again sold and distributed drugs (methamphetamine) in Philadelphia on July 15, 2019.
Dupree is scheduled for sentencing on May 12, 2021 and faces a maximum penalty of life in prison and up to a $8,000,000 fine.
This OCDETF operation is the result of an extensive investigation, dubbed "Operation Highlife", which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of methamphetamine. The distribution network encompasses the States of Texas and Mississippi.
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 is part of a joint investigation by Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Louisville Police Department, and Mississippi Highway Patrol. The case is being prosecuted by Assistant United States Attorney Erin Chalk.
Philadelphia Man Convicted at Trial of Illegally Carrying a Gun Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that William Johnson, 35, of Philadelphia, PA, was sentenced to fifteen years in prison and five years of supervised release by United States District Judge Harvey Bartle III for his conviction of being a felon illegally in possession of a firearm.
In September 2020, the defendant was convicted after trial of one count of being a felon in possession of a firearm. The charge stemmed from an incident that occurred a year earlier in September 2019. Philadelphia Police Department Highway Patrol Officers responded to reports of a person with a gun at 15th Street and West Allegheny Avenue in North Philadelphia. Upon arrival, the officers observed Johnson walking with a person that matched the description in the report. When the officers got out of their car to investigate, Johnson took off in a full sprint while holding onto his waistband. He then cut through an empty lot and climbed a fence in an attempt to flee. An officer drove around to where Johnson would be expected to emerge on the other side of the lot. When Johnson climbed the fence that led away from the lot, he spotted yet another police officer. The defendant then jumped down from the fence and an officer observed him toss a firearm a few feet away. The officers took Johnson into custody and secured the firearm.
“The U.S. Attorney’s Office takes very seriously the staggering homicide and violent crime rates in Philadelphia, and we’re doing all we can to get guns off the streets and out of the hands of convicted felons,” said Acting U.S. Attorney Williams. “If you are convicted of being a felon in possession of a firearm, you will go to prison for a very long time. As punishment for his illegal gun possession, William Johnson will now lose fifteen years of freedom. He went to prison in his mid-thirties, and he won’t get out until he is nearly fifty. Don’t take that risk: don’t carry illegally.”
“The disturbing level of gun violence in Philadelphia is undeniably exacerbated by the abundance of the illegal firearms on the street,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and the Philadelphia Police Department are working together to battle that tide, and whether it’s through takedowns of violent gun-toting gangs or, one by one, arresting felons like Mr. Johnson in criminal possession of a firearm, we will continue to do all we can to make this city safer.”
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.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
Owner of Consumer Electronics Wholesale Business Pleads Guilty to Conspiracy to Operating an Unlicensed Money Transmitting BusinessRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that AMIT AGARWAL, the operator of an international wholesale consumer electronics business based in New Jersey, pled guilty to participating in a conspiracy to operate an unlicensed money transmission business that operated primarily between Colombia and the United States. AGARWAL pled guilty before United States District Judge Paul A. Engelmayer.
Miguel Cespedes, Omar Mogollon, Luis Felipe Gonzalez Arcila, Ivan Rojas Acosta, Alex Barrera Forero, and David Ortiz Villamizar were previously charged in three separate indictments for their roles in the scheme. They were arrested in Colombia, and the United States Government is seeking their extradition to the United States.
U.S. Attorney Audrey Strauss said: “As he admitted today, Amit Agarwal was a key player in a shadow financial network that allowed the movement of drug traffickers’ profits into our banking system and across our borders. Now he awaits sentencing for his crimes.”
According to the Indictments, the superseding Information, and statements made in open court:
From at least in or about June 2018 through at least in or about 2019, AMIT AGARWAL participated in a scheme to operate an unlicensed money transmitting business to move funds between the United States and Colombia, among other places. Among other things, the purpose of the scheme was to enable clients with cash located in the United States to transfer the value of that cash to other countries, principally Colombia, without the need for physically transporting United States currency across an international border or directly depositing large amounts of cash into the legitimate financial system.
To effectuate the scheme, “clients,” i.e., the owners of funds located in the United States, utilized the services of money brokers operating primarily in Colombia (the “Money Brokers”). The Money Brokers offered “contracts” typically requiring (a) the pick-up of United States currency from couriers throughout the United States and the receipt of international wires in the United States, and (b) the delivery of a corresponding amount of pesos in Colombia to the Money Brokers. In exchange for successfully delivering on a contract, the Money Brokers earned a commission, taken from the pesos received by them in Colombia. The person(s) with whom the Money Brokers contracted to arrange for the pick-up and receipt of United States currency also received a commission taken from the pesos received by the Money Brokers in Colombia. Although the payment of commissions from the funds collected pursuant to a contract meant that the clients did not receive the full value of the funds that the clients owned in the United States, this scheme enabled the clients to avoid the risks of having large quantities of cash detected at international borders and to avoid triggering financial reporting requirements.
Cespedes, Mogollon, Gonzalez, Rojas, Barrera, and Ortiz engaged in the scheme as Money Brokers. As Money Brokers, working at times independently and at times together, they offered and executed upon multiple contracts requiring the pick-up of funds throughout the United States, and the delivery of a corresponding value of pesos to them in Colombia. In exchange for their work as Money Brokers, they received a commission taken from the pesos delivered to them in Colombia, as did the individuals with whom they contracted.
AGARWAL was the chief executive officer of a consumer electronics products business based in East Hanover, New Jersey (the “Agarwal Electronics Business”). Among other things, the Agarwal Electronics Business exported consumer electronics to purchasers throughout the world, including purchasers located in Colombia. In connection with its business activities, the Agarwal Electronics Business maintained a bank account in the United States, controlled and operated by AGARWAL (the “Agarwal Bank Account”).
Typically, as part of the scheme, the funds collected in the United States pursuant to contracts offered by Cespedes, Mogollon, Gonzalez, Rojas, Barrera, and Ortiz were deposited in a bank account located in the United States (“Bank Account-1”), and then transferred to the Agarwal Bank Account. AGARWAL agreed to accept these funds into the Agarwal Bank Account, and AGARWAL also agreed to accept funds into the Agarwal Bank Account that had been wired to Bank Account-1 from foreign locations, including Mexico.
Upon receiving confirmation that funds collected pursuant to a Money Broker contract issued by Cespedes, Mogollon, Gonzalez, Rojas, Barrera, or Ortiz were available for deposit into the Agarwal Bank Account, AGARWAL arranged for the export of a roughly equivalent value of consumer electronics products to certain consumer electronic product suppliers located in Colombia (the “Colombian Electronics Suppliers”). The Colombian Electronics Suppliers, in turn, arranged to pay for the products by delivering pesos to an individual in Colombia, who then delivered those funds to the Money Brokers. In this way, funds collected in the United States were remitted to Colombia, without requiring that they be reported, declared, or smuggled over international borders.
During the execution of the scheme, federal law enforcement agents working in an undercover capacity, and persons operating at the direction of federal law enforcement agents, informed AGARWAL that the funds he agreed to receive in the Agarwal Bank Account from Bank Account-1, pursuant to the scheme, represented the proceeds of narcotics trafficking activity. AGARWAL, however, continued to accept the funds into the Agarwal Bank Account while facilitating the Money Broker contracts.
* * *
AGARWAL, 39, a citizen of India, pled guilty to one count of conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. AGARWAL will be sentenced by Judge Engelmayer on July 14, 2021, at 2:30 p.m.
Cespedes is charged in United States v. Miguel Cespedes, 19 Cr. 839, with one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
Barrera and Ortiz are charged in United States v. Alex Barrera Forero and David Ortiz Villamizar, 19 Cr. 840, with one count of conspiracy to operate an unlicensed money transmission business, and one count of operation of an unlicensed money transmission business, each of which carries a maximum sentence of five years in prison.
Mogollon, Gonzalez, and Rojas are charged in United States v. Omar Mogollon, et al., 19 Cr. 837, with conspiracy to operate an unlicensed money transmission business and operation of an unlicensed money transmission business, each of which carries a maximum sentence of five years in prison. Mogollon is also charged with one count of international money laundering, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the investigative work of the DEA, and thanked authorities in Colombia, and the Justice Department’s Office of International Affairs of the Department’s Criminal Division for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
The allegations in the Indictments charging Cespedes, Mogollon, Gonzalez, Rojas, Barrera, and Ortiz are merely accusations, and they are presumed innocent unless and until proven guilty.
Ottumwa Man Found Guilty of Federal Firearms ChargesRead the Press Release
Des Moines, IA—On February 10, 2021, Hector Ramon Iglesias Tovar, age 34, of Ottumwa, Iowa, was found guilty by a jury of possession of a firearm in furtherance of drug trafficking and possession of a firearm by a prohibited person in violation of federal law. The verdict came after a two-day trial before United States District Court Judge Rebecca Goodgame Ebinger.
The evidence at trial included an AR-15 rifle seized from the residence of Iglesias Tovar and a .45 handgun seized from a vehicle he was driving. Law enforcement also seized 142 grams of methamphetamine from the residence of Iglesias Tovar. The jury found Iglesias Tovar possessed both firearms in furtherance of drug trafficking. He faces a sentence of 5 years to life on the possession in furtherance of drug trafficking charge and a sentence of up to 10 years on the prohibited person in possession of a firearm charge. Iglesias Tovar previously pleaded guilty to charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine which were also charged in this case. Sentencing is scheduled for June 30, 2021.
The investigation was conducted by the Southeast Iowa Inter-Agency Drug Task Force, the Ottumwa Police Department, the Wapello County Sheriff’s Office, the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration (DEA), and ICE Enforcement and Removal Operations (ERO). This case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Ohio Man Sentenced to 3 Years in Prison for Possessing HeroinRead the Press Release
PITTSBURGH, PA – A resident of Columbus, Ohio, has plead guilty to one count in Pittsburgh, Pennsylvania, on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Evan Jones, age 27, pleaded guilty to one count before U.S. District Judge Donnetta W. Ambrose.
In connection with the guilty plea, on or about July 26, 2018, Jones possessed with intent to distribute a quantity of heroin.
Jones was sentenced to a term of imprisonment of 37 months, followed by a term of supervised release of six years.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
Nineteen South Bay Residents Charged in Alleged Scheme to Funnel Drugs into U.S and Firearms to MexicoRead the Press Release
SAN FRANCISCO – A federal grand jury issued a superseding indictment charging fourteen defendants, mostly South Bay residents, with crimes related to two conspiracies—one to transport drugs from Mexico to the San Jose Area, the other to transport firearms illegally from the United States to Mexico, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. In a press conference earlier today, U.S. Attorney Anderson announced all the charges were the culmination of a federal investigation—one of four simultaneous investigations into the movement of drugs from Mexico to the streets of the San Jose area.
“One methamphetamine seizure outlined in this indictment represents the largest federal seizure of methamphetamine ever in the Northern District of California,” said U.S. Attorney Anderson. “The vast majority of these drugs were acquired in Mexico, including from Mexico’s Sinaloa Cartel. Firearms and their components, as described in the indictment, are acquired in the United States to export to Mexico. The two-way flow of drug shipments heading north and firearms, including assault weapons, sniper rifles and grenade launchers, heading south is a potently dangerous situation. It is impossible to characterize this alleged conduct as victimless.”
“Methamphetamine that is pure, potent and cheap has flooded the American market and drug trafficking organizations see an opportunity to profit. They utilize distribution hubs, like the Bay Area, to distribute their poison,” said DEA Special Agent in Charge Daniel C. Comeaux. “As methamphetamine overdoses rise, the significant drug seizures in this investigation has undoubtedly saved lives. DEA will continue to target and to bring to justice these criminal organizations who traffic drugs in our community to keep Americans safe.”
“As a result of Operation Burnt Orange, the FBI and DEA successfully seized 16 firearms, 17.4 pounds of heroin, and 817.7 pounds of methamphetamine from this dangerous organization - which ranks as one of the largest methamphetamine seizures in recent memory here in the Northern District of California,” said FBI Special Agent in Charge Fair. “Simply put, we won’t allow dangerous and violent groups to use our neighborhoods as a thoroughfare to traffic drugs or as a venue to conduct illegal activity.”
The superseding indictment, filed February 4, 2021, charges David Campoy as the leader of two related conspiracies: a drug trafficking conspiracy and a firearms trafficking conspiracy. With respect to the drug trafficking conspiracy, David Campoy, his adult son, Jose Melchor Campoy, and co-conspirators David Wilcott Greenman, Kimberly Carrasco, Lamberto (a Mexican national whose last name currently is unknown), Juan Carlos Velazquez Ortiz, Ignacio Espinoza, Jose Manuel Rodriguez Naranjo, and Nicolas Ardanuy are charged with conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, cocaine, and marijuana. David Campoy allegedly used connections with the Cártel de Sinaloa (or Sinaloa Cartel) in Mexico as well as connections in Southern California to obtain methamphetamine and heroin. The indictment alleges David Campoy and Jose Campoy delivered controlled substances to other members of the drug trafficking organization for distribution. In addition to the conspiracy charge, several of the defendants face additional charges in connection with individual drug sales and use of a communication facility to assist in such sales.
The facts disclosed in the indictment and additional court documents depict a prolific drug distribution operation. The indictment describes a drug ledger in which drug purchase orders are recorded in quantities such as of hundreds of kilograms of methamphetamine, and payments are made in the hundreds of thousands of dollars. In addition, during his arrest in January 2021 with his son and others, law enforcement seized approximately 572 pounds of methamphetamine, several pounds of heroin, and 16 firearms. In additional court filings the government argues that based on intercepts and intelligence obtained during the investigation, David Campoy, through the quantity he controlled and trafficked, exercised market power over the price and availability of methamphetamine in Northern California.
With respect to the firearms conspiracy, the indictment alleges David Campoy, Michael Ozuna Guizar, Roberto Campoy Robles, Luis Guillermo Sendino, and Ivan Campoy Morales orchestrated illegal exports to Mexico of weapons and components of firearms for sale in the black market. The defendants manufactured, exported, and dealt in weapons including assault weapons. The superseding indictment describes how defendants allegedly unlawfully purchased firearms and components of firearms in the United States through licensed federal firearm dealers. The defendants allegedly combined the firearms with grenade launchers assembled in Mexico, and attempted to obtain .50 caliber sniper rifles and grenade launchers for resale on the black market.
In sum, the defendants are charged with the crimes and face maximum penalties as indicted in the chart below:
Defendant/Age
Charges
Statute
Maximum Penalties
David Campoy, 46
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Distribution and possession with the intent to distribute methamphetamine; Possession with the intent to distribute heroin; Use of a communication facility in facilitating the commission of a felony under the Controlled Substances Act; Felon in possession of firearms and ammunition; Possession of a firearm in furtherance of a drug trafficking crime; Conspiracy to manufacture and deal in firearms; Conspiracy to manufacture and deal in firearms; Conspiracy to export arms and munitions; Unlawfully manufacturing and dealing in firearms; Arms export control act export of arms and munitions
21 U.S.C.
§§ 846, 841(a)(1), (b)(1)(A), and (b)(1)(B)
21 U.S.C. § 843(b)
18 U.S.C. § 922(g)(1)
18 U.S.C. § 924(c)(1)(A)
18 U.S.C. § 371
18 U.S.C. §§ 922(a)(1)(A) and 924(n)
22 U.S.C. §§ 2778(b)(2) and (c) and 22 C.F.R. §§ 121.1, 123.1, and 127.1
Lifetime imprisonment
$10 million fine
Lifetime supervised release
4 years’ imprisonment
$30,000 fine
1 year supervised release
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
Lifetime imprisonment
$250,000 fine
5 years’ supervised release
5 years’ imprisonment
$250,000 fine
3 years’ supervised release
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
20 years’ imprisonment
$1 million fine
3 years’ supervised release
Jose Melchor Campoy, 21
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Distribution and possession with the intent to distribute methamphetamine; Possession with the intent to distribute heroin; Use of a communication facility in facilitating the commission of a felony under the Controlled Substances Act
21 U.S.C.
§§ 846, 841(a)(1), (b)(1)(A), and (b)(1)(B)
21 U.S.C. § 843(b)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
4 years’ imprisonment
$30,000 fine
1 year supervised release
David Wolcott Greenman, 34
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Attempt to possess with the intent to distribute heroin; Distribution and possession with the intent to distribute methamphetamine
21 U.S.C.
§§ 846, 841(a)(1), (b)(1)(A), and (b)(1)(B)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Kimberly Carrasco, 27
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Distribution and possession with the intent to distribute methamphetamine;
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Lamberto LNU, age unknown
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Use of a communication facility in facilitating the commission of a felony under the Controlled Substances Act
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
21 U.S.C. § 843(b)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
4 years’ imprisonment
$30,000 fine
1 year supervised release
Juan Carlos Velazquez Ortiz, 32
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana;
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Ignacio Espinoza, 30
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Use of a communication facility in facilitating the commission of a felony under the Controlled Substances Act
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
21 U.S.C. § 843(b)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
4 years’ imprisonment
$30,000 fine
1 year supervised release
Jose Manuel Rodriguez Naranjo, 39
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Distribution and possession with the intent to distribute methamphetamine
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Nicholas Ardanuy, 52
Conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; Distribution and possession with the intent to distribute methamphetamine
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Michael Ozuna Guizar, 40
Use of a communication facility in facilitating the commission of a felony under the Controlled Substances Act; Conspiracy to manufacture and deal in firearms; Conspiracy to export arms and munitions; Unlawfully manufacturing and dealing in firearms; Arms export control act export of arms and munitions
21 U.S.C. § 843(b)
18 U.S.C. § 371
18 U.S.C. §§ 922(a)(1)(A) and 924(n)
22 U.S.C. §§ 2778(b)(2) and (c) and 22 C.F.R. §§ 121.1, 123.1, and 127.1
4 years’ imprisonment
$30,000 fine
1 year supervised release
5 years’ imprisonment
$250,000 fine
3 years’ supervised release
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
20 years’ imprisonment
$1 million fine
3 years’ supervised release
Miguel Angel Carrizal Zamora, 23
Possession with the intent to distribute and distribution of methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Roberto Campoy Robles, 48
Conspiracy to manufacture and deal in firearms; Conspiracy to export arms and munitions; Unlawfully manufacturing and dealing in firearms; Arms export control act export of arms and munitions
18 U.S.C. § 371
18 U.S.C. §§ 922(a)(1)(A) and 924(n)
22 U.S.C. §§ 2778(b)(2) and (c) and 22 C.F.R. §§ 121.1, 123.1, and 127.1
5 years’ imprisonment
$250,000 fine
3 years’ supervised release
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
20 years’ imprisonment
$1 million fine
3 years’ supervised release
Luis Guillermo Sendino, 48
Conspiracy to manufacture and deal in firearms; Conspiracy to export arms and munitions; Unlawfully manufacturing and dealing in firearms; Arms export control act export of arms and munitions
18 U.S.C. § 371
18 U.S.C. §§ 922(a)(1)(A) and 924(n)
22 U.S.C. §§ 2778(b)(2) and (c) and 22 C.F.R. §§ 121.1, 123.1, and 127.1
5 years’ imprisonment
$250,000 fine
3 years’ supervised release
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
20 years’ imprisonment
$1 million fine
3 years’ supervised release
Ivan Campoy Morales, age unknown
Conspiracy to manufacture and deal in firearms; Conspiracy to export arms and munitions; Unlawfully manufacturing and dealing in firearms; Arms export control act export of arms and munitions
18 U.S.C. § 371
18 U.S.C. §§ 922(a)(1)(A) and 924(n)
22 U.S.C. §§ 2778(b)(2) and (c) and 22 C.F.R. §§ 121.1, 123.1, and 127.1
5 years’ imprisonment
$250,000 fine
3 years’ supervised release
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
20 years’ imprisonment
$1 million fine
3 years’ supervised release
Juan Leopoldo Garate Aguirre, 25
Possession with the intent to distribute and distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Jose Manuel Rodriguez Naranjo, 39
Distribution and possession with the intent to distribute methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Miguel Martin Pacheco Martinez, 34
Conspiracy to distribute and possession with the intent to distribute methamphetamine
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Alberto Martinez Navarro, 36
Conspiracy to distribute and possession with the intent to distribute methamphetamine
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Miguel Angel Moreno, 46
Distribution and possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
An indictment and a criminal complaint merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. The court may order additional terms of supervised release and 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.The defendants who are scheduled to appear before the court are as follows:
Defendant
Next Court Date
David Campoy, David Wolcott Greenman, Kimberly Carrasco
February 12, 2021
Jose Melchor Campoy, Ignacio Espinoza, Nicholas Ardanuy, Michael Ozuna Guizar, Miguel Angel Carrizal Zamora, Luis Guillermo Sendino, Juan Leopoldo Garate Aguirre, Miguel Martin Pacheco Martinez
February 11, 2021
Miguel Angel Moreno
March 3, 2021
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the DEA and the FBI San Francisco Division. Assistance was provided by FBI Los Angeles, Phoenix and Tuscon; LA IMPACT Group 1; California Highway Patrol; San Jose Police Department the police departments of Santa Clara, Watsonville, Vallejo; the Sheriff’s Offices of Santa Clara County and Santa Cruz County; and the U.S. Marshal Service.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
New Orleans Felon Indicted on Numerous Gun and Drug Distribution ChargesRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that CHRISTOPHER MAY, age 28 of New Orleans, Louisiana, was charged in a six count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922 and 924 and the Federal Drug Control Act, Title 21 United States Code, Section 841.
According to court documents, MAY was previously convicted of a drug offense in Orleans Parish. This present charge alleges he was in possession of a DRACO AK-47 pistol in December of 2020. Later, he is accused of possessing with the intent to distribute cocaine and a heroin mixture containing fentanyl. During the drug trafficking crime, he is charged with possessing a Glock 23 handgun. In addition to the Glock 23, he is accused of having a stockpile of ammunition. MAY is prohibited from possessing firearms due to his criminal history. If convicted on all counts, MAY faces a maximum term of life imprisonment, a fine of $1,000,000.00, five (5) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee for each count.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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Michigan Man Indicted for Hate Crimes After Attacking African-American TeenagersRead the Press Release
WASHINGTON – The Justice Department announced today that Lee Mouat, 42, has been indicted for federal hate crimes. Mouat is charged with two counts of violating 18 U.S.C. § 249 by willfully causing bodily injury to a Black teenager and attempting to cause bodily injury to another Black teenager, through the use of a dangerous weapon, because of the teenagers’ race. Mouat was previously charged with the former count by criminal complaint in federal district court on Oct. 13, 2020.
According to the affidavit in support of the criminal complaint, Mouat confronted a group of Black teenagers, including the victim, at a state park in Monroe, Michigan. Mouat repeatedly used racial slurs and said that Black people had no right to use the public beach where the incident occurred. Mouat then struck one of the teens in the face with a bike lock, knocking out several of the victim’s teeth and fracturing his jaw. According to the indictment, Mouat attempted to strike another teen with the bike lock.
An indictment is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law. If convicted, Mouat faces a statutory maximum penalty of 10 years in prison for each count.
This case is being investigated by the FBI. Assistant U.S. Attorney Frances Carlson of the Eastern District of Michigan and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
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Man from Mescalero pleads guilty to federal threat charge in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Thaddeus Ponce, 58, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, pleaded guilty in federal court Feb. 5 to influencing federal officials by threat.
In the plea agreement, Ponce admitted to calling the Bureau of Indian Affairs’ (BIA) emergency dispatch multiple times from Aug. 10, 2019, to Oct. 7, 2019, in Otero County, New Mexico. Ponce threatened to kill federal dispatch operators and their families during numerous recorded calls. The BIA dispatch center is located on the Mescalero Reservation.
Ponce is currently in custody pending sentencing. He faces up to 10 years in pri
The Bureau of Indian Affairs (BIA) investigated this case. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Man from Albuquerque pleads guilty to federal armed robbery of medical products and drug chargesRead the Press Release
ALBUQUERQUE, N.M. – Joseph Matney, 40, of Albuquerque, New Mexico, pleaded guilty in federal court on Feb. 4 to armed robbery of a pharmacy, theft of medical products and possession with intent to distribute Oxycodone and Alprazolam.
According to his plea agreement, Matney entered and robbed an Albuquerque pharmacy on Jan. 31, 2018. Matney, and a juvenile accomplice, held the employees at gunpoint and demanded opioid painkillers, anxiety pills and money from behind the counter. They fled with more than 2,500 pills before law enforcement arrived. On Feb. 12, 2018, law enforcement in Denver, Colorado, arrested Matney after a searching his vehicle and finding 1,600 of the stolen prescription pills and a firearm.
Matney is currently in custody pending sentencing. He faces seven to 30 years in prison.
The Drug Enforcement Administration (DEA) and the Albuquerque Police Department investigated this case with assistance from the Denver Police Department. Assistant U.S. Attorney Peter J. Eicker is prosecuting the case.
Man Sentenced for Operating Multi-Million Dollar International Money Laundering SchemeRead the Press Release
A Ukrainian man was sentenced today to 87 months in prison and ordered to pay $98,751.64 in restitution after pleading guilty to committing wire fraud, stemming from his participation in a scheme to launder funds for Eastern European cybercriminals who hacked into and stole funds from online bank accounts of U.S. businesses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Division made the announcement.
According the plea agreement and other court documents, from 2009 to 2012, Aleksandr Musienko, 38, of Odessa, Ukraine, partnered with Eastern European computer hackers to obtain over $3 million from U.S. victims’ bank accounts and launder the stolen funds from U.S. bank accounts overseas. Musienko’s partners in the scheme hacked and stole information from victims in the United States and used that information to impersonate the victims. By deceiving the victims’ banks into believing that withdrawals from the victims’ accounts were requested by the victims, Musienko and others were able to steal large amounts of money from the victims’ accounts.
Musienko was involved in recruiting, supervising, and directing a network of “money mules,” or individuals who transmitted funds, with American corporate and individual bank accounts that could receive the stolen funds and transmit it overseas. Musienko, using an alias, recruited American “mules” by advertising on employment websites that he was hiring a financial assistant. Musienko instructed the mules, who believed they were working for a legitimate business, that they were to assist clients transfer funds overseas. In September 2011, Musienko’s partners in the scheme hacked into the online accounts of a North Carolina-based company and transferred a total of $296,278 to two bank accounts controlled by Musienko’s mules. Musienko instructed the mules to wire the funds to several European bank accounts, although the company’s bank detected the fraud and deducted $197,526.36 in stolen funds from one of the mules before it was wired overseas.
Sealed charges were filed against Musienko in 2016 in the Western District of North Carolina. Musienko was arrested in South Korea in 2018 and extradited to the United States in 2019. In or about April 2019, the FBI searched Musienko’s laptop and identified files containing approximately 120,000 payment card numbers and associated identifying information for persons other than Musienko.
This case was investigated by the FBI. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Graham Billings of the Western District of North Carolina, and Assistant U.S. Attorney Taylor Phillips, now with the Middle District of Tennessee.
Man Sentenced for Operating Multi-Million Dollar International Money Laundering SchemeRead the Press Release
CHARLOTTE, N.C. – A Ukrainian man was sentenced today to 87 months in prison and ordered to pay $98,751.64 in restitution after pleading guilty to committing wire fraud, stemming from his participation in a scheme to launder funds for Eastern European cybercriminals who hacked into and stole funds from online bank accounts of U.S. businesses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Division made the announcement.
According the plea agreement and other court documents, from 2009 to 2012, Aleksandr Musienko, 38, of Odessa, Ukraine, partnered with Eastern European computer hackers to obtain over $3 million from U.S. victims’ bank accounts and launder the stolen funds from U.S. bank accounts overseas. Musienko’s partners in the scheme hacked and stole information from victims in the United States and used that information to impersonate the victims. By deceiving the victims’ banks into believing that withdrawals from the victims’ accounts were requested by the victims, Musienko and others were able to steal large amounts of money from the victims’ accounts.
Musienko was involved in recruiting, supervising, and directing a network of “money mules,” or individuals who transmitted funds, with American corporate and individual bank accounts that could receive the stolen funds and transmit it overseas. Musienko, using an alias, recruited American “mules” by advertising on employment websites that he was hiring a financial assistant. Musienko instructed the mules, who believed they were working for a legitimate business, that they were to assist clients transfer funds overseas. In September 2011, Musienko’s partners in the scheme hacked into the online accounts of a North Carolina-based company and transferred a total of $296,278 to two bank accounts controlled by Musienko’s mules. Musienko instructed the mules to wire the funds to several European bank accounts, although the company’s bank detected the fraud and deducted $197,526.36 in stolen funds from one of the mules before it was wired overseas.
Sealed charges were filed against Musienko in 2016 in the Western District of North Carolina. Musienko was arrested in South Korea in 2018 and extradited to the United States in 2019. In or about April 2019, the FBI searched Musienko’s laptop and identified files containing approximately 120,000 payment card numbers and associated identifying information for persons other than Musienko.
This case was investigated by the FBI. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Graham Billings of the Western District of North Carolina, and Assistant U.S. Attorney Taylor Phillips, now with the Middle District of Tennessee.
Man Purchased Lamborghini After Receiving $3.9 Million PPP LoanRead the Press Release
Miami, Fl. – A Florida man pleaded guilty for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini sports car for himself.
Authorities seized the Lamborghini and $3.4 million from the bank accounts of David T. Hines, 29, of Miami, at the time of his arrest. Hines pleaded guilty to one count of wire fraud and is scheduled to be sentenced on April 14.
As part of his guilty plea, Hines admitted that he fraudulently sought millions of dollars in PPP loans through applications to an insured financial institution on behalf of different companies. Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in PPP loans.
Hines further admitted that within days of receiving the PPP funds, he used the funds to purchase a 2020 Lamborghini Huracan sports car for approximately $318,000. Plea documents indicate that in the days and weeks following the disbursement of PPP funds, Hines did not make payroll payments that he claimed on his loan applications. He did, however, use the PPP proceeds for personal expenses.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), Office of Investigation’s Atlanta Regional Office, Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s (USPIS) Miami Division, Special Agent in Charge Kevin A. Kupperbusch of the U.S. Small Business Administration (SBA) OIG, Investigations Division, Eastern Regional Office, Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Office, and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG, Eastern Region, made the announcement.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FDIC-OIG, USPIS, IRS-CI, the SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG. Assistant U.S. Attorney Michael Berger of the Southern District of Florida and Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and are prosecuting the case.
The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-20011.
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Man Arrested in Sabine Parish Sentenced on Federal Firearms ChargesRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Robert Tyrone Kimbrough, 35, of Many, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 120 months (10 years) in prison followed by 3 years of supervised release for being a convicted felon in possession of a firearm and possessing a firearm with an obliterated serial number.
On July 5, 2018, law enforcement officers with the Sabine Parish Sheriff’s Office arrested Kimbrough in Many, Louisiana, on an outstanding warrant. Law enforcement officers obtained consent to search the apartment Kimbrough was in and found a bag in a closet containing a firearm with an obliterated serial number. Agents also found another firearm in the same closet. Kimbrough admitted that the firearms were his and that he knew the serial number was obliterated from the firearm. Kimbrough has a previous felony conviction for aggravated robbery in 2010 which prohibited him from possessing any firearms. He pleaded guilty to the federal charges on September 1, 2020.
The ATF and Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Long Lake Man Sentenced to 5 Years in Prison for Arson of Dakota County Government BuildingRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea and sentencing of GARRETT PATRICK ZIEGLER, 25, to 60 months in prison for aiding and abetting arson. ZIEGLER who also plead guilty today, was sentenced by Judge Susan Richard Nelson, in U.S. District Court, in St. Paul, Minnesota.
According to ZIEGLER’s guilty plea and documents filed with the court, in the early morning hours of May 29, 2020, ZIEGLER drove himself and co-defendant Fornandous Cortez Henderson to the Dakota County Western Service Center (the ''WSC") located at 14955 Galaxie Avenue in Apple Valley, Minnesota. The WSC houses state and local agencies and organizations, including Dakota County court facilities, as well as a U.S. Passport center. Once there, ZIEGLER and Henderson broke multiple windows using baseball bats. ZIEGLER and Henderson threw in multiple Molotov cocktails into the broken windows. Some of these devices successfully ignited and caused fire damage to the WSC. ZIEGLER and Henderson also started and attempted to start other fires at the WSC by pouring ignitable liquids, and throwing unlit Molotov cocktails, in and around the broken windows, then attempting to start the liquids on fire. Henderson selected the WSC as a target because he had previous court appearances at the WSC and was angry with law enforcement regarding the recent death of George Floyd. ZIEGLER who was also angry at law enforcement agreed to the target because of its connection to law enforcement.
ZIEGLER also admitted in his guilty plea that on May 26 through May 28, 2020, he purchased or provided a number of items that were used to construct the Molotov cocktails and carry out the attack on the WSC, including mason jars, pushpins and other similar sharp objects, isopropyl alcohol, nail polish remover, bottles of high-proof alcohol, lighter fluid, bandanas/scarves, and a baseball bat.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Apple Valley Police Department, and the Dakota County Sheriff’s Office, with assistance from the Dakota County Attorney’s Office.
This case was prosecuted by Assistant U.S. Attorneys Alexander D. Chiquoine and Chelsea A. Walcker.
Defendant Information:
GARRETT PATRICK ZIEGLER, 25
Long Lake, Minn.
Convicted:
- Aiding and abetting arson, 1 count
Sentenced:
- 60 months in prison
- 3 years supervised release
- $205,872.53 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Lincoln Man Convicted for Receipt of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that James Chase, 53, of Lincoln, Nebraska, was sentenced today in Lincoln by Senior United States District Judge Richard G. Kopf for receipt of child pornography. Chase was sentenced to 6 years in prison and 8 years of supervised release. There is no parole in the federal system.
This case began with a cyber tip from Kik indicating that Chase uploaded an image of suspected child pornography in November of 2018. Following a review of the cyber tip and image, agents with Homeland Security Investigations went to Chase’s home and interviewed him on November 12, 2019. Chase informed the agent of his email – which was the email used to create the Kik account that uploaded the child pornography. Chase admitted that he came across child pornography on Kik and that he had been in some child pornography Kik groups.
Chase provided consent to search his tablet and phone. The examination of the tablet revealed 20 images containing child pornography. Based on the images found on the tablet, a search warrant was received authorizing a search of Chase’s home to seize electronic devices found therein. The search warrant was executed on November 18, 2019. A forensics examination was completed on the devices seized, revealing an additional 6 images and 3 videos of child pornography on Chase’s laptop computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations.
Lawrence Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for selling fentanyl.
Marino Amador Baez, 35, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 30 months in prison and two years of supervised release. In July 2020, Baez pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
On Sept. 11, 2019, an undercover agent reached a deal with Baez to buy 100 grams of fentanyl. Baez brought the fentanyl to the pre-arranged meeting location and got into the undercover’s vehicle to make the sale. He was subsequently arrested.
This case was part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway” that culminated in September 2019. The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan W. Blodgett; and Lawrence Police Chief Roy Vasque made the announcement today. Assistant U.S. Attorney Eve A. Piemonte of Lelling’s Office prosecuted the case.
Large-Scale, Spokane-Based Fentanyl, Heroin, and Methamphetamine Trafficker Sentenced to 180 Months in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Todd Earl Bridges, age 38, a resident of Spokane, Washington, was sentenced today after having pleaded guilty on November 16, 2020, to Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine. United States District Judge Rosanna Malouf Peterson sentenced Bridges to a 180 month term of imprisonment, to be followed by a 5 year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, the Spokane Police Department (“SPD”) and the Drug Enforcement Administration (“DEA”) identified Todd Earl Bridges as a distributor of methamphetamine, heroin, and fentanyl-laced pills in the Spokane, Washington area. On June 11, 2020, a controlled buy of fentanyl-laced pills was conducted from Bridges. A search warrant was executed on a hotel room Bridges was staying at, and a large quantity of fentanyl-laced pills were located. Bridges was not present at the time.
On June 26, 2020, a marked SPD patrol unit attempted to conduct a traffic stop on a vehicle occupied by Bridges. The vehicle did not stop and attempted to elude law enforcement. The vehicle eventually came to a stop and Bridges fled from the vehicle but was eventually caught by pursuing officers and arrested. Bridges provided a post-Miranda statement where he admitted he threw heroin and fentanyl-laced pills during his flight from law enforcement. He also admitted there was approximately 12 ounces of methamphetamine in the vehicle. A search warrant was obtained for the vehicle and the methamphetamine was recovered. SPD also located the heroin and fentanyl-laced pills Bridges admitted he discarded along his route of travel. During his statement, Bridges further advised that he had been engaged in drug trafficking for approximately the previous year, while he was still on supervision with the Washington State Department of Corrections after just being released from a 116-month state sentence. Bridges estimated he was selling approximately $20,000 worth of various combinations of methamphetamine, heroin, and fentanyl-laced pills per day during that time period. He also estimated he had 50 different local drug customers he was supplying.
Bridges posted bond on state charges stemming from the June 26, 2020 incident. Subsequently, he was indicted in federal court and arrested. At the time he was arrested on federal charges, he was in possession of several additional ounces of methamphetamine.
United States Attorney Hyslop said, “The distribution and sale of illegal narcotics wreaks havoc upon our community. People are hurt. Fortunately, another repeated large scale prolific drug trafficker has now been taken off our streets and will be behind bars for the next fifteen years. The combined investigative efforts of the DEA, ATF, and the Spokane Police Department, the prosecution by the U.S. Attorney’s Office, and the Court’s sentence made this occur. As a community, we have to remain vigilant in this battle against illegal drugs and against those who will prey upon our residents. Drug trafficking in Spokane cannot be tolerated.”
“It is clear that this defendant contributed to the fentanyl epidemic in the Eastern Washington Region,” said DEA Special Agent in Charge Frank Tarentino. “This career criminal and drug trafficker will no longer have the freedom to recklessly distribute the poison that continues to flow through our city streets, even during the pandemic. It is our commitment to the public and our law enforcement partners to remain vigilant and steadfast in our investigations and prosecutions of people like Todd Earl Bridges.”
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled Operation Its All Bueno. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Drug Enforcement Administration and the Spokane Police Department. This case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Lancaster Man Sentenced to 9 ½ Years for Drug Trafficking Offenses and Illegal Possession of More than Twenty FirearmsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Tyshaun Williams, 29, of Lancaster, PA, was sentenced to 115 months in prison and three years of supervised release by United States District Court Judge Joseph F. Leeson, Jr., for firearms and drug trafficking offenses.
In September 2020, the defendant pleaded guilty to two counts of illegally possessing firearms as a convicted felon, one count of possessing firearms not registered under the National Firearms Act, one count of distributing cocaine, and one count of possessing a controlled substance with intent to distribute. The charges stemmed from an incident in which Williams sold cocaine to a confidential informant and was subsequently caught illegally possessing an arsenal of 27 firearms and more than 900 rounds of ammunition.
“The U.S. Attorney’s Office is committed to working with our law enforcement partners to keep illegal weapons out of the hands of people who are not permitted to possess them,” said Acting U.S. Attorney Williams. “Tyshaun Williams presented a danger to the community in Lancaster, and for his crimes he will now spend nearly a decade in prison.”
“Keeping dangerous felons who illegally possess firearms off the streets is a core belief of ATF,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Today’s sentencing reflects our long-lasting partnership with our local, state and federal colleagues to pursue violent criminals. I truly appreciate the United States Attorney’s office for their continued efforts in prosecuting these types of crimes, which undoubtedly makes our communities safer.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lancaster County District Attorney’s Office, and the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorneys Kathryn Deal and Kishan Nair.
Justice Department Reaches Agreement with Nevada to End Discriminatory Policies Against Inmates with HIV and Inmates with DisabilitiesRead the Press Release
Click to view the settlement agreement.
The Justice Department today reached a settlement agreement with Nevada to ensure that inmates with HIV are not illegally segregated or otherwise discriminated against on the basis of HIV status and that inmates with disabilities are provided an equal opportunity to participate in and benefit from Nevada Department of Corrections (NDOC) programs.
The agreement resolves the department’s findings that NDOC violated Title II of the Americans with Disabilities Act (ADA) by unjustifiably isolating and segregating inmates with HIV, failing to keep their HIV status confidential, and denying them equal employment opportunities, including in food service positions. The department found that NDOC’s HIV housing policy stigmatized inmates with HIV and had the effect of indiscriminately disclosing their confidential HIV status to NDOC employees and inmates. As leading public health and correctional authorities oppose the routine segregation of inmates with HIV as medically unnecessary, the department determined that NDOC’s policy had no legitimate health justification. Nevada has since taken steps to desegregate inmates with HIV and also cooperated with the department throughout the investigation.
The agreement also resolves the department’s findings that NDOC denied inmates with disabilities — including mobility disabilities, HIV, and other physical or mental health conditions — classification and housing at lower-custody levels and facilities. These facilities offer opportunities for inmates to gradually reintegrate back into the community, including various employment positions and reintegration programs, and earn additional credits to reduce the lengths of their sentences. By denying inmates with disabilities opportunities to participate in these programs, the department found that NDOC deprived them of an equal opportunity to engage in productive activities and to accelerate their NDOC release dates. NDOC also confined certain inmates with disabilities for longer periods and in more restrictive settings than they otherwise would have been housed, such as medium or high custody facilities.
“The routine segregation of inmates with HIV is unnecessary, stigmatizing, and harmful, and the Department of Justice will enforce the ADA to stop such discrimination. Compliance with the ADA ensures that prisoners with disabilities have equal access to educational, rehabilitative, and other programs and opportunities available to other inmates,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “We commend Nevada for working collaboratively with the department, ending its illegal segregation of inmates based on HIV, and integrating current and future inmates with disabilities into critical community reintegration housing placements and programs.”
Among the terms of the agreement, Nevada will amend its policies, practices, and procedures to ensure that inmates with HIV are not isolated or segregated solely because of their HIV status and will keep information related to inmates’ disabilities confidential. Nevada will also ensure that qualified inmates with disabilities are not excluded from employment opportunities and lower-custody classifications, housing placements, services, and programs. The agreement also requires Nevada to train NDOC staff and inmates on HIV and disability discrimination, designate statewide and facility-specific ADA Coordinators, and implement an ADA grievance procedure.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Joseph H. Harrington to Serve as Acting United States Attorney for the Eastern District of WashingtonRead the Press Release
United States Attorney William D. Hyslop announced that, by way of the Vacancy Reform Act, Joseph H. Harrington (currently the First Assistant United States Attorney) will serve as the Acting United States Attorney for the Eastern District of Washington beginning March 1, 2021.
Harrington previously led the U.S. Attorneys’ Office from March, 2017 through July, 2019 as the Acting, then Court-Appointed United States Attorney. Harrington’s experience as a litigator in an exclusive federal-court practice and as a manager of over 65 employees has provided him with the necessary qualifications and skills to execute appropriately the significant responsibilities attendant with the position of Acting U.S. Attorney for Eastern Washington. He has been with the office for over 30 years.
During his tenure in the United States Attorney’s Office Harrington has handled all aspects of both civil and criminal trial as well as appellate litigation. His civil litigation experience has been varied, involving lawsuits involving the defense of medical malpractice, employment discrimination, wrongful death, and contract disputes. His criminal litigation experience covers the full spectrum of serious criminal offenses. Of particular note, he prosecuted Kevin Harpham, an avowed white supremacist who placed an improvised explosive device along the path of Spokane’s annual Dr. Martin Luther King, Jr. Unity March. He also prosecuted members of the anti-government Phineas Priest domestic terrorism group who bombed a Planned Parenthood clinic and a Spokane newspaper facility and executed armed take-over robberies (and a bombing) of a bank in Spokane, Washington. Harrington also served as co-counsel, primarily supervising the trial team, in the civil rights prosecution of then-Spokane police officer Karl F. Thompson, a case involving the untimely death of Mr. Otto Zehm.
Harrington’s administrative experiences and responsibilities includes pro-actively managing, hiring, and supporting a diverse workforce, together with providing opportunities for increased professional development. He was instrumental in the Office’s appointment of its first two female Deputy Criminal Chiefs, a female Senior Litigation Counsel, and extending offers of employment to a diverse group of female Assistant U.S. Attorneys.
Harrington has established and continues to build robust law enforcement and community relationships, including relationships with the four Native American Tribes in Eastern Washington. He has played a pivotal role in the U.S. Attorney’s Office’s on-going efforts to address Missing and Murdered Indigenous People.
U.S. Attorney Hyslop stated: “The Eastern District of Washington will be well-served by soon-to-be Acting United States Attorney Joseph H. Harrington.”
Individual Charged with Threatening the President of the United States Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A federal criminal complaint was unsealed in federal court today, charging David Kyle Reeves, 27, of, Gastonia, N.C., with threatening the President of the United States, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Reeves was arrested on Friday, February 5, 2021, and had a court hearing this morning before U.S. Magistrate Judge David C. Keesler.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray for making today’s announcement.
According allegations in the affidavit filed in support of the criminal complaint, between January 28 and February 1, 2021, Reeves contacted multiple times the White House switchboard via telephone and made threats against President Biden and others. The criminal complaint alleges that, on February 1, 2021, a Secret Service agent contacted Reeves to discuss the threats. Reeves allegedly called back the Secret Service agent multiple times throughout the day, and repeated the threats against the President, the Secret Service agent, and others. According to filed court documents, on the same day, Reeves also contacted the U.S. Capitol Police switchboard and communicated similar threats.
Following today’s hearing, Judge Keesler ordered Reeves to remain in custody.
The charge of making a threat against the President of the United States carries a maximum penalty of five years in prison, and a $250,000 fine.
All charges in the complaint are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The Secret Service is investigating the case. Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
IRS Criminal Investigation and U.S. Attorney’s Office Remind Taxpayers to File Accurate Returns; Choose a Tax Preparer CarefullyRead the Press Release
Kansas City, Kansas — The Internal Revenue Service’s Criminal Investigation Division (IRS-CI) and the United States Attorney’s Office for the District of Kansas reminded taxpayers today to file accurate tax returns and choose a tax preparer wisely. The nation’s tax season starts on Friday, February 12, 2021, when the agency begins accepting and processing 2020 tax year returns.
U.S. persons are subject to tax on worldwide income from all sources. Most taxpayers meet this obligation by reporting all taxable income and paying taxes according to the law. However, those who willfully hide income should know that the IRS works across its divisions to ensure the highest possible tax compliance. Taxpayers found to be committing fraud may be subject to penalties including payment of taxes owed plus interest, fines and jail time.
“As we approach the beginning of the tax return filing season, it is important for taxpayers to be careful in selecting the tax professional who will prepare their return. The IRS does not want individuals to become victims of an unscrupulous return preparer,” said Acting Special Agent in Charge David Talcott at the Internal Revenue Service – Criminal Investigation. “Each year, IRS-CI special agents and the U.S. Attorney’s Office investigate and prosecute return preparer fraud, which includes adding false deductions and credits in order to inflate refunds. This criminal activity affects taxpayers, but has serious consequences for the unscrupulous preparer.”
“We want to remind everyone to work with reputable tax preparers as we enter this filing season,” said U.S. Attorney Stephen McAllister. “Tax fraud costs U.S. taxpayers millions of dollars each year, my office will continue to hold those found to be behind these fraudulent claims accountable.”
Tax return preparers are vital to the U.S. tax system. As of tax year 2018, 55 percent of taxpayers used a paid preparer. Although most preparers provide honest and professional services, there is a small number of dishonest preparers who set up shop
during filing season to steal money, personal and financial information from clients. Taxpayers can avoid falling victim to unscrupulous preparers by following important steps.Tips when choosing a tax preparer:
- Look for a preparer who is available year-round in case questions arise after the filing season.
- Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN), which is required for paid preparers.
- Inquire about the preparer’s credentials and check their qualifications.
- Ask about service fees. Avoid preparers who base fees on a percentage of their client’s refund or claim to offer a bigger refund than their competition.
- Never sign a blank or incomplete return and review it before signing. Refunds should go directly to the taxpayer, not the preparer.
For more tips on choosing a tax professional or to file a complaint against one, visit IRS.gov. Taxpayers who suspect tax violations by a person or business, may report it to the IRS using Form 3949A, Information Referral.
The IRS Criminal Investigation St. Louis Field Office and the U.S. Attorney’s Office in the District of Kansas are committed to protecting Kansas taxpayers from others cheating the U.S. tax system. Here an example of a current investigation that has been brought to justice:
- In July 2020, Sonia Hernandez-Smith pleaded guilty to aiding and assisting in the preparation of false returns. She admitted she put false information on her client’s Schedule 8812, which is used to claim the Child Tax Credit. She obtained Individual Taxpayer Identification Numbers or ITINs for children she knew did not live in the United States, and whom were ineligible to claim the child tax credit. However, Hernandez-Smith put them as dependents on her client’s tax returns when her clients were not entitled to them. Lastly, she admitted she did this for numerous clients. Her sentencing is scheduled on May 17, 2021.
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Hartford Gang Member Sentenced to 18 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICARDO REYES, also known as “Rick the Ruler,” 41, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 216 months of imprisonment, followed by five years of supervised release, for trafficking narcotics and firearms.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Reyes, a member of the Los Solidos street gang, who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. On September 9, 2018, Reyes was arrested by Hartford Police on state charges after they found him in possession of a firearm and approximately 250 bags of heroin/fentanyl. Between January and June 2019, while Reyes was released on bond in his state case, investigators conducted multiple controlled purchases of narcotics from Reyes. Court authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf.
Intercepted communications also revealed that Norman Klosek of Enfield was acting as a “straw purchaser” of firearms for Reyes. On April 22, 2019, Reyes picked up Klosek in Enfield and drove to a licensed gun dealer in Newington, where Klosek, who had a valid state firearm permit, purchased two handguns. Klosek then provided the guns to Reyes after the purchase. Later that day, investigators conducted a traffic stop of Reyes’ vehicle in New Britain and seized the two firearms. A search of the vehicle also revealed approximately 450 bags of suspected heroin/fentanyl, more than one pound of marijuana, and $1,160 in cash. Reyes was charged with state offenses, released on bond, and resumed his drug trafficking activity.
Reyes and several co-defendants were arrested on a federal criminal complaints on June 17, 2019. On that date, investigators seized two additional guns that had been purchased by Klosek, one that was in Reyes’ car and one that was in a Rowe Avenue residence that Reyes’ used as a stash location. Investigators also seized approximately 3,500 bags of fentanyl from the stash house, and approximately $6,000 from Reyes’ residence.
Reyes has been detained since his federal arrest.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes and 14 associates with various narcotics trafficking and firearm possession offenses. On March 4, 2020, Reyes pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 40 grams or more of fentanyl and 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
Reyes’ criminal history includes state drug convictions, and a federal conviction for dealing firearms without a license. The previous federal case involved Reyes and an associate, who had a valid state firearm permit, purchasing at least 13 firearms and selling them to drug dealers. Reyes was sentenced to 60 months in federal prison for that offense.
On March 2, 2020, Klosek pleaded guilty to one count of dealing firearms without a license, and one count of making a false statement during the acquisition of a firearm. Klosek, who was addicted to heroin/fentanyl, admitted that he had purchased a total of 47 handguns, and that he had sold or “loaned” the guns he had purchased to support his drug addiction. On October 14, 2020, Klosek was sentenced to 46 months of imprisonment.
To date, approximately 11 of the 47 handguns purchased by Klosek have been recovered by law enforcement. One gun was recovered after it was used in a shooting in Hartford on August 22, 2019. In September 2020, handguns purchased by Klosek were recovered as part of criminal investigations in Brimfield, Massachusetts, and Riverside, California. In October 2020, another firearm was recovered by Hartford Police.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Gulfport Man Pleads Guilty to Firearms Offense under Project EJECTRead the Press Release
Gulfport, Mississippi – Kevin Jaquan Willis, 23, of Gulfport, pled guilty today before U.S. District Judge Sul Ozerden to being an unlawful user of a controlled substance in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (“DEA”).
On October 7, 2020, Gulfport police officers stopped a vehicle driven by Willis and discovered in the vehicle 98 grams of marijuana, a digital scale, and a Smith and Wesson M&P 15, assault style rifle. The rifle was loaded with 24 rounds of ammunition.
Willis admitted to regularly smoking marijuana since he was 15 years old. He also indicated that he smoked about an ounce of marijuana per day. Finally, Willis admitted to possessing both the marijuana and the rifle.
Willis will be sentenced by Judge Ozerden on May 13, 2021 at 9:30 a.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the DEA and the Gulfport Police Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gulfport Man Pleads Guilty to Firearms Offense under Project EJECTRead the Press Release
Gulfport, Mississippi – Marquise Deshun Spanks, 30, of Gulfport, pled guilty today before U.S. District Judge Sul Ozerden to being a felon in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Michele Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in Mississippi.
On October 20, 2020, Biloxi police officers stopped a vehicle being driven by Spanks and discovered he possessed two firearms in the vehicle, one of which was reported stolen. Spanks was previously convicted of a felony drug offense.
On November 4, 2020, a federal grand jury indicted Spanks for possessing the firearms after having been convicted of a felony. He will be sentenced by Judge Ozerden on May 20, 2021 at 9:30 a.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine for the offense. If the Court determines that Spanks is an Armed Career Criminal, he will face a maximum penalty of life in prison.
This case was investigated by the FBI and the Biloxi Police Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Grand jury indicts St. Louis County man for tax fraudRead the Press Release
ST. LOUIS – A federal grand jury, on Wednesday, indicted 49-year-old Richard Rief on 14 counts of failure to collect and pay over employment taxes and two counts of failure to file or pay tax.
According to the indictment, Richard Rief owned and operated Med Plus Staffing, LLC (MPS) and Rief Healthcare (RHC). MPS was a healthcare staffing business and RHC was a hospice care business. Both businesses were based in St. Louis County.
Rief filed IRS forms reporting employment taxes due and owing but failed to pay those taxes, except when necessary to convince the IRS to delay a levy or accept an installment agreement. In total, Rief failed to pay more than $522,270 in employment taxes which had been withheld from employees’ paychecks and were due to the federal government.
In addition, Rief failed to pay his individual income tax liability in 2015 and 2016, instead he chose to spend the money on lavish purchases. In 2017, while Rief faced back taxes for both his businesses and himself, he spent large sums of money on a 50-foot yacht, a Maserati and a hangar for his airplane. In total, during the calendar years alleged in the indictment, Rief failed to pay approximately $107,332 in individual taxes owed.
For each count of willful failure to collect or pay over tax, Rief faces no more than five years in prison and/or a fine of no more than $10,000.
For each count of willful failure to file return, supply information, or pay tax, Rief faces no more than one year in prison and/or a fine of no more than $25,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The IRS investigated the case. Assistant United States Attorney Anthony Box handled the case.
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Fresno Man Previously Convicted of Assault with a Firearm on a Person Indicted for Unlawfully Possessing a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Steven Eric Cabrera, 25, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Cabrera communicated over the social media platform Snap Chat to arrange the sale of a handgun at a local park. When he arrived, his car was stopped by law enforcement officers who searched the car and found a bag with a towel-wrapped handgun hidden inside. Cabrera cannot legally possess firearms because in 2017 he was convicted of assaulting a person with a firearm, a felony.
This case is the product of an investigation by the Fresno Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Cabrera faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. 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.
Fresno Man Indicted on Drug and Firearm ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Hector Kioni Gongora, 43, of Fresno, charging him with possessing methamphetamine with the intent to distribute and unlawfully possessing a firearm and ammunition after being convicted of a felony, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Jan. 11, Gongora was arrested on a felony warrant and found to be in possession of a firearm and methamphetamine. A search of his residence recovered 177 additional rounds of ammunition. Gongora is a convicted felon prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted of the possession of methamphetamine count, Gongora faces a mandatory minimum of five years in prison and a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. If convicted of the counts of being a felon in possession of a firearm or ammunition, Gongora faces a maximum statutory penalty of 10 years in prison and a fine up to $250,000. 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.
Four Defendants Charged in Alleged Schemes to Transport Methamphetamine from Mexico and Distribute the Drugs in San JoseRead the Press Release
SAN FRANCISCO – A federal grand jury issued an indictment charging Mark Ogo, Anthony Christian Valdovinos, and William Reidy with conspiracy in relation to a scheme to transport methamphetamine from Mexico to the San Jose area for distribution, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. In a separate criminal complaint, Johnathan Ratcliff was charged with distributing methamphetamine in San Francisco. In a press conference earlier today, U.S. Attorney Anderson announced that the charges against all of these defendants were the culmination of a federal investigation—one of four simultaneous investigations into the movement of drugs from Mexico to the streets of the San Jose area.
“The charges announced today involve large shipments of methamphetamine from Mexico to the Bay Area and reveal the ruthless capitalism of modern drug trafficking,” said U.S. Attorney Anderson. “Drug traffickers have no regard for the personal destruction caused by their sales. It is impossible to characterize their alleged conduct as victimless. Many drug users suffer miserable lives and early deaths. Neighborhoods populated by good people living law-abiding lives suffer from the crime and misery that drug trafficking brings. The crimes charged in these cases undermine the healthy aspirations of whole communities of law-abiding people.”
“Methamphetamine that is pure, potent and cheap has flooded the American market and drug trafficking organizations see an opportunity to profit. They utilize distribution hubs, like the Bay Area, to distribute their poison,” said DEA Special Agent in Charge Daniel C. Comeaux. “As methamphetamine overdoses rise, the significant drug seizures in this investigation has undoubtedly saved lives. DEA will continue to target and to bring to justice these criminal organizations who traffic drugs in our community to keep Americans safe.”
The indictment, filed February 9, 2021, alleges that in July of 2020, Ogo, 54, and Valdovinos, 27, made arrangements to fly from the Bay Area to Calexico, Calif., where they met Riedy, 57, and bought more than 26 pounds of methamphetamine from him. Documents filed in the case describe intercepted wire communications in which the defendants made arrangements for the drug transfer. Riedy allegedly retrieved the drugs from Mexico and brought them into the United States; indeed, on the day the drugs were transferred to Ogo and Valdovinos, Riedy allegedly crossed the border into Mexico to bring a second batch of controlled substances from Mexico into the United States. Riedy crossed the border back into Mexico after delivering approximately 28 to 30 packages of methamphetamines to Ogo and Valdavinos.
Ogo and Valdovinos allegedly packed the methamphetamine inside Ogo’s rental car and drove the methamphetamine to the Bay Area. Wire communications describe how some of the drugs were hidden inside a spare tire of the rented car Ogo and Valdovinos used to travel back to Northern California.
In sum, Ogo, Valdovinos, and Reidy are charged with one count of conspiracy to distribute and possess with intent to distribute 5 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(B), as well as one count of distribution and possession with intent to distribute 5 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B). If convicted, the defendants face a minimum of 5 years and a maximum of 40 years in prison for each count and a $5,000,000 fine.
In a separate complaint, Johnathan Ratcliff, 49, was charged with distributing drugs to an undercover officer. Specifically, on July 23, 2020, Ratcliff met the officer in San Francisco, and sold him or her 198.4 grams of methamphetamine and 25.4 grams of heroin in exchange for $3,700. Ratcliff is charged with distributing at least 5 grams of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B). If convicted the maximum statutory penalty for the offense is 40 years’ imprisonment and a $5,000,000 fine.
An indictment and a criminal complaint merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. The court may order additional terms of supervised release and 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.
Ogo’s next court appearance is scheduled for February 11, 202, and Ratcliff’s next court appearance is scheduled for February 22, 2021. The remaining defendants do not yet have court appearances scheduled.
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the DEA with assistance from Vacaville Police Department, the Redwood City Police Department, the San Mateo County Narcotics Task Force, the San Francisco Police Department, the Tracy Police Department, and Homeland Security Investigations, Calexico.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Pittsburgh Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Andrew Painter, age 36, as the sole defendant.
According to the Indictment, on June 20, 2020, Painter possessed visual depictions, namely, images and videos in computer graphic and digital file, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of a maximum of ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Member of Boston Latin Kings Chapter Sentenced for Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on racketeering charges.
Dante Lara, a/k/a “King Nasty,” 29, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years in prison and three years of supervised release. In November 2020, Lara pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings’ goals and directives in the state. Lara admitted to participating in the drug distribution activities of the gang and to possessing a loaded firearm and cocaine that were located in his apartment during the execution of a warrant.
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. Lara is the 14th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Acting Commissioner Gregory Long 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 Lelling’s Criminal Division are prosecuting 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.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Five Related Indictments Target South Bay Drug Distribution SchemesRead the Press Release
SAN FRANCISCO – In five related indictments, federal grand juries charged fifteen South Bay residents with crimes related to the distribution of narcotics including heroin, methamphetamine, cocaine, and fentanyl in the San Jose area, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. In a press conference earlier today, U.S. Attorney Anderson announced all the charges were the culmination of a federal investigation—one of four simultaneous investigations into the movement of drugs from Mexico to the streets of the San Jose area.
“These cases announced today provide insight into the ruthless capitalism of modern drug trafficking and the entire ecosystem of narcotics trafficking in Northern California,” said U.S. Attorney Anderson. “Their allegations reflect drug trafficking from procurement, to transportation, to distribution to mid-level dealers, and all the way down to street level sales. Countless individuals and entire communities suffer, but drug traffickers have no regard for the destruction caused in their path.”
“Methamphetamine that is pure, potent and cheap has flooded the American market and drug trafficking organizations see an opportunity to profit. They utilize distribution hubs, like the Bay Area, to distribute their poison,” said DEA Special Agent in Charge Daniel C. Comeaux. “As methamphetamine overdoses rise, the significant drug seizures in this investigation has undoubtedly saved lives. DEA will continue to target and to bring to justice these criminal organizations who traffic drugs in our community to keep Americans safe.”
The most recent indictment, filed January 21, 2021, charges Raudel Macias, Anthony Macias, Benito Macias, Oscar Macias, and Fawn Larance with various crimes in connection with an alleged conspiracy to distribute methamphetamine, cocaine, heroin, and fentanyl in the San Jose area. According to the indictment, Raudel Macias is the central figure of the drug distribution organization, referred to in the indictment as the Macias DTO. The indictment alleges the Macias DTO was a street-level drug distribution group, responsible for distributing narcotics to numerous street level customers and resellers in the Northern District of California. Raudel Macias allegedly handled all aspects of ensuring there was sufficient supplies of drugs for the group to distribute. Other members of the Macias DTO were responsible for delivering drugs to customers and collecting the proceeds. Court documents describe how wiretap information from the Macias DTO investigation led investigators to several other defendants, described in court documents as higher-level distributors and drug sources.
The remaining four indictments were filed December 1, 2020. One indictment charges Francisco Ricardo Miranda, Jesus Alberto Rojas-Vega, Gelacio Perez-Rojas, Uriel Soto, and Leonel Cisneros-Sosa with crimes in connection with a cocaine distribution conspiracy. According to the indictment, Miranda was the leader of the organization distributing the drugs. Court documents describe how Miranda allegedly used his ties to suppliers in Mexico to sustain the flow of drugs into the Bay Area. Miranda also allegedly obtained large quantities of cocaine and methamphetamine from Southern California-based suppliers.
Two of the December 1, 2020, indictments charge Juvencio Gamez Cid with crimes involving his efforts to obtain large amounts of methamphetamine. One indictment is based on Gamez Cid’s attempt to obtain 25 pounds of methamphetamine in June 2020. Gamez Cid’s co-defendants in that case, Alfredo Villalobos Cisneros and Sergio Villalobos-Cisneros are charged with actually possessing the drugs that Gamez Cid sought to obtain and distribute. According to court papers, the drugs were intercepted as they were being transported from Southern California. The other indictment charging Gamez Cid also charges Cristian Alvarado in connection with an alleged attempted delivery of five kilograms of methamphetamine. When Gamez Cid was arrested on November 17, 2020, law enforcement officials seized approximately 6 pounds of methamphetamine from his residence, a pistol that had been reported stolen, ammunition, six cellular telephones, and fraudulent documents including a California driver’s license and a California identity card with fake names.
The last indictment charges Jazmin Alejandra Cuevas-Capetillo with allegedly making the sale in San Jose of two kilograms of methamphetamine to a confidential source.
In sum, the defendants are charged with the crimes and face maximum penalties as indicted in the chart below:
Defendant/Age
Charges
Statute
Maximum Penalties
(per count)
Raudel Macias, 56
Conspiracy to distribute and possess with the intent to distribute heroin, methamphetamine, and fentanyl; Distribution of methamphetamine; and Distribution of 100 grams or more of heroin
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(B) and (b)(1)(C)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Anthony Macias, 29
Conspiracy to distribute and possess with the intent to distribute heroin, methamphetamine, and fentanyl; Distribution of methamphetamine; and Distribution of 100 grams or more of heroin
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(B) and (b)(1)(C)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Benito Macias-Lopez, 30
Conspiracy to distribute and possess with the intent to distribute heroin, methamphetamine, and fentanyl; Distribution of methamphetamine; and Distribution of 100 grams or more of heroin
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(B) and (b)(1)(C)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Oscar Macias, 32
Conspiracy to distribute and possess with the intent to distribute heroin, methamphetamine, and fentanyl; Distribution of fentanyl; and Distribution of methamphetamine
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(B) and (b)(1)(C)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Fawn Larance, 41
Conspiracy to distribute and possess with the intent to distribute heroin, methamphetamine, and fentanyl; Distribution of fentanyl; and Distribution of methamphetamine
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(B) and (b)(1)(C)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Francisco Ricardo Miranda, 34
Conspiracy to distribute and possess with the intent to distribute a mixture and substance containing cocaine
21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Jesus Alberto Rojas-Vega, 27
Conspiracy to distribute and possess with the intent to distribute a mixture and substance containing cocaine
21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(B)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Gelacio Perez-Rojas, 36
Conspiracy to distribute and possess with the intent to distribute a mixture and substance containing cocaine
21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Uriel Soto, 51
Conspiracy to distribute and possess with the intent to distribute a mixture and substance containing cocaine; Possession with the intent to distribute a mixture and substance containing cocaine
21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(C)
20 years’ imprisonment
$1,000,000 fine
Lifetime supervised release
Leonel Cisneros-Sosa, 47
Conspiracy to distribute and possess with the intent to distribute a mixture and substance containing cocaine
21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(C)
20 years’ imprisonment
$1,000,000 fine
Lifetime supervised release
Juvencio Gamez Cid, 42
Attempt to possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine; Possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Jose Alfredo Villalobos Cisneros, 48
Possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Sergio Villalobos-Cisneros, 34
Possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Cristian Alvarado, 26
Attempt to possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine; Possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)
Lifetime imprisonment
$10 million fine
Lifetime supervised release
Jazmin Alejandra Cuevas-Capetillo, 25
Distribution of 50 grams or more of a mixture and substance containing methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
40 years’ imprisonment
$5 million fine
Lifetime supervised release
Teo Magana Sanchez, 52
Distribution and possession with the intent to distribute cocaine
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
20 years’ imprisonment
$1,000,000 fine
Lifetime supervised release
An indictment and a criminal complaint merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. The court may order additional terms of supervised release and 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.
The next court appearance for the defendants is scheduled for March 10, 2021, except Teo Magnana Sanchez, who is scheduled for a preliminary hearing on March 26, 2021.
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the DEA and the San Mateo County Narcotics Task Force. Additional assistance was provided by the police departments of Redwood City, Santa Clara, and San Jose; the San Mateo County Narcotics Task Force; the Sheriff’s Offices of San Mateo County and Santa Clara County; the U.S. Administration of Alcohol, Tobacco, Firearms and Explosives; and the Santa Clara County Specialized Enforcement Team.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Five Inmates at USP Lee Indicted for Conspiring to Kill Fellow InmateRead the Press Release
ABINGDON, Va.- A federal grand jury sitting in U.S. District Court in Abingdon, Virginia indicted five inmates incarcerated at United States Penitentiary- Lee County (USP Lee) for conspiring to murder a fellow inmate at the prison, Acting United States Attorney Daniel P. Bubar announced today.
In a five-count indictment returned February 9, 2020, the grand jury charged Moris Flores, 32, Carlos Almonte, 30, Julie Chavez, 35, Angel Guevara, 39, and German Hernandez, 33, each with one count of conspiracy to commit the premeditated murder of victim “AZ” and one count of attempted murder.
In addition, the grand jury charged Flores, Guevara, and Almonte with one count each of assault with a dangerous weapon and possession of contraband inside a federal prison.
According to the indictment, on January 15, 2020, Flores and Guevara entered the cell occupied by victim “AZ” while Almonte, Chavez, and Hernandez surrounded the cell, preventing others from interfering and holding the door closed.
Inside the cell, the indictment alleges that Flores and Guevara beat the victim with metal shanks and closed fists. Victim “AZ” sustained multiple stab and puncture wounds.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorneys Lena Busscher and Danny Murphy are prosecuting the case for the United States.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
Five Defendants Charged in San Jose Drug Distribution SchemesRead the Press Release
SAN FRANCISCO – The Office of the United States Attorney filed criminal complaints against Ramon Covarrubias Rangel, Jorge Lozano Guzman, Alejandro Alvarez, Kelman David De La Cruz Pedroza, and Erick Alexandro Torres Cruz for their alleged respective roles in drug distribution schemes in the San Jose area, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, and Homeland Security Investigations (NorCal) Special Agent in Charge Tatum King. In a press conference earlier today, U.S. Attorney Anderson announced that the complaints were the culmination of one of four simultaneous federal investigations into the movement of drugs from Mexico to the streets of the San Jose area.
“We describe in these charging documents mid-level dealers operating in a thriving and deadly local market for methamphetamine and cocaine,” said U.S. Attorney Anderson. “The crimes and sheer lawlessness of their activity is a profound threat to individuals and neighborhoods, undermining the safety and aspirations of whole communities of law-abiding people.”
“Methamphetamine that is pure, potent and cheap has flooded the American market and drug trafficking organizations see an opportunity to profit. They utilize distribution hubs, like the Bay Area, to distribute their poison,” said Special Agent in Charge Comeaux. “As methamphetamine overdoses rise, the significant drug seizures in this investigation has undoubtedly saved lives. DEA will continue to target and to bring to justice these criminal organizations who traffic drugs in our community to keep Americans safe.”
“Homeland Security Investigations is committed to combating the illegal trafficking of firearms and drugs that fuel violence in the United States and abroad. Our investigation of 5 locations yielded: 4 arrests, 4 guns, over 7 kg of methamphetamine and 2 kg cocaine,” said Special Agent in Charge King. “Partnerships are a key facet of HSI’s approach to countering illegal activity. We are grateful for the important contributions of or partners with the DEA, FBI, CBP, California Highway Patrol, Alameda County Narcotics Task Force, Salinas Police Department, Soledad Police Department, Gilroy Police Department, and the U.S. Attorney’s Office – Northern District of California.”
The drug distribution charges are contained in three separate complaints. The first complaint, filed January 26, 2021, alleges Rangel, Lozano, and Alvarez conspired to distribute more than 500 grams of methamphetamine in the San Jose area. According to the complaint, the DEA, HSI, and the Federal Bureau of Investigation were conducting an investigation into the drug trafficking activities of these defendants when in December of 2019, investigators used confidential sources to make controlled purchases. The complaint describes how Lozano met the confidential source in a parking lot in San Jose and sold the source one ounce of cocaine for $860 and one kilogram of methamphetamine for $3,000. On February 26, 2020, a similar transaction occurred; however, on this occasion, confidential sources spoke with all three defendants. Covarrubias made initial contact with the confidential source, Lozano negotiated the price, and Alvarez made the delivery in a parking lot in San Jose. On that day, a confidential source purchased an additional kilogram of methamphetamine from the defendants for $2,700. Rangel, Lozano, and Alvarez are charged with conspiracy to distribute and possess with intent to distribute cocaine and more than 500 grams of methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii). If convicted, the defendants each face a minimum 10 years and a maximum of life in prison, as well as a maximum $10,000,000 fine.
In the second complaint, De La Cruz is charged with selling a pound of methamphetamine to a confidential source in August of 2020. According to the complaint, after completing the transaction, De La Cruz informed the source that it would cost $34,000 for a kilogram of cocaine and that if the source needed cocaine, the source should call De La Cruz. De La Cruz is charged with distribution of 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841, 841(a)(1), (b)(1)(B)(viii). If convicted, De La Cruz faces a minimum 5 years and a maximum 40 years in prison as well as a maximum $5,000,000 fine.
In addition, Torres Cruz is charged with distributing a half kilogram of methamphetamine to a confidential source for $2,600 in January of 2021. The complaint alleges that the transaction occurred in a parking lot in San Jose and that after the transaction was completed, Torres Cruz offered to reduce the price of the methamphetamine if the source were willing to buy larger quantities. Like De La Cruz, Torres Cruz is charged with distribution of 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841, 841(a)(1), (b)(1)(B)(viii). If convicted, Torrez Cruz faces a minimum 5 years and a maximum 40 years in prison as well as a maximum $5,000,000 fine.
A criminal complaint merely alleges that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. The court may order additional terms of supervised release and 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.
The defendants are scheduled for court appearances as follows:
Defendant
Next Court Date
Covarrubia Rangel
March 11, 2021
Lozano
February 16, 2021
Alvarez
None Scheduled
De La Cruz
February 24, 2021
Torres Cruz
February 18, 2021
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the DEA and HSI with assistance from the Federal Bureau of Investigation; the California Highway Patrol; the police departments of Hawthorne, Salinas, Soledad, and Gilroy; LA IMPACT; the Alameda County Narcotics Task Force; and U.S. Customs and Border Patrol Tactical Analysis Unit.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Fennimore Man Sentenced to 30 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jerry Koch, 59, Fennimore, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 30 months in federal prison for possessing methamphetamine with intent to distribute. Koch pleaded guilty to this charge on December 10, 2020.
On August 1, 2020, investigators with the Richland-Iowa-Grant Drug Task Force arranged for the controlled purchase of methamphetamine from Koch. After the completion of the controlled purchase, the investigators arrested Koch and found him in possession of 58 grams of methamphetamine, drug paraphernalia, and approximately $8,000 cash. During a post-arrest interview, Koch admitted that he sold methamphetamine to support his personal addiction.
The charge against Koch was the result of an investigation conducted by the Richland-Iowa-Grant Drug Task Force and the Grant County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
Feds Arrest Two Militia Members Associated with the Boogaloo BoisRead the Press Release
LOUISVILLE, Ky. – John Subleski, age 32, of Louisville, Kentucky, and Adam Turner, age 35, also of Louisville, Kentucky, were arrested by the Louisville Division of Federal Bureau of Investigation today, announced Acting United States Attorney Michael A. Bennett.
“I commend the outstanding work of the Louisville FBI’s Joint Terrorism Task Force (JTTF) and our state and local law enforcement task force member agencies who work tirelessly every day to identify, locate, and apprehend for prosecution individuals who jeopardize the peace and safety of the citizens of the Western District of Kentucky,” said Acting United States Attorney Michael A. Bennett.
“FBI Louisville’s Joint Terrorism Task Force (JTTF), and each of the member agencies, are committed to keeping our communities safe from violent extremists,” stated FBI Special Agent in Charge Robert Brown. “Today’s decisive action underscores the exceptional partnership and professionalism of our JTTF membership. The citizens of the Commonwealth can take comfort in the fact we continue to work together every day to protect our communities from extremists seeking to do harm.”
Subleski was charged in a criminal complaint with a violation of 18 United States Code, Section 2101, for using a facility of interstate commerce to incite a riot and committing an act of violence in furtherance of a riot. The complaint against Subleski alleges that he was a member of the militia known as the United Pharaoh's Guard (UPG) who define themselves as Boogaloo Bois. “Boogaloo” is a term referencing a violent uprising or impending civil war. The complaint further alleges that on January 6, 2021, contemporaneous with the Capitol riots, Subleski incited a riot in downtown Louisville, Kentucky, through the use of social media and other electronic communications, and while inciting individuals to riot, he communicated through social media that it was “Time to storm LMPD.”
The complaint further alleges that while rioting in downtown Louisville on the evening of January 6th, members of the Subleski’s group pointed rifles at the driver of a vehicle, blocked intersections, and barricaded a number of roads. Most were openly wielding firearms at the time. According to the complaint, later in the evening, Subleski is on video firing his rifle at a vehicle that drove through one of his group’s barricades and that Subleski fled the scene after firing his rifle at the vehicle.
Turner was charged in a criminal complaint with communicating a threat in interstate commerce in violation of 18 United States Code, Section 875(c). The complaint against Turner alleges that he identifies himself as a member of the United Pharaoh’s Guard and the Boogaloo Bois. The complaint further alleges that on December 25th, 2020, Turner while participating in a protest caravan driving through St. Matthews, confronted St. Matthews Police Officers following a traffic stop of the caravan and that during the confrontation Turner was openly carrying an AR-pistol and an additional hand gun. According to the complaint, Turner was eventually arrested for menacing and resisting arrest. Following the arrest, Turner made a number of Twitter and Facebook posts threatening police officers.
Subleski is scheduled for a preliminary and detention hearing before a United States Magistrate Judge on February 17th at 2:30 p.m. Turner is scheduled for a preliminary and detention hearing before a United States Magistrate Judge on February 17th at 12:00 p.m.
If convicted at trial, both Subleski and Turner face a maximum of 5 years imprisonment, a $250,000 fine, and a 3-year term of supervised release.
The FBI Louisville’s Joint Terrorism Task Force (JTTF), including member agencies Louisville Metro Police Department, Jefferson County Sheriff’s Office, Kentucky State Police, University of Kentucky Police Department, Covington Police Department, and the Internal Revenue Service investigated the cases with assistance provided by the FBI Indianapolis’ JTTF and the Louisville Bureau of Alcohol, Tobacco, and Firearms (ATF).
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a U.S. Magistrate Judge. The charges set forth in a complaint are merely accusations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a Court of law.
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Father and son cocaine traffickers ordered to prisonRead the Press Release
McALLEN, Texas – A 65-year-old Mexican national has received a federal prison sentence following his conviction in a conspiracy to possess with intent to distribute approximately two kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Jorge Luis Perez-Cortez pleaded guilty Dec. 3, 2020.
Today, U.S. District Judge Micaela Alvarez upwardly departed from the U.S. Sentencing Guidelines and ordered Perez-Cortez to serve 80 months in prison. Not a U.S. citizen, he is expected to face removal proceedings following his sentence. At the hearing, Judge Alvarez rebuked Perez-Cortez for returning to the United States soon after his prior removal and involving himself and his son in cocaine trafficking. He further noted Perez-Cortez's criminal history.
His son - Jorge de Jesus Perez, 31, of Mission – was also convicted in the scheme and previously sentenced to 24 months to be immediately followed by three years of supervised release.
On May 22, 2020, Perez-Cortez and his son picked up two kilograms of cocaine and traveled to a McDonald’s near Edinburg. Law enforcement approached, after which Perez-Cortez admitted he was the one responsible for coordinating the drug transaction, while his son was just his means of transportation. They had intended for it to be delivered to Houston.
The investigation revealed several incriminating messages on Perez-Cortez’s cell phone linking him to a drug trafficking ring.
Perez-Cortez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
Elizabeth City Man Sentenced for Fentanyl and Firearm OffensesRead the Press Release
RALEIGH, N.C. – Yakim Paige of Elizabeth City was sentenced today to 90 months in prison for possession with intent to distribute 40 grams or more of a mixture containing fentanyl and a fentanyl precursor, and aiding and abetting that crime, as well as possessing a firearm as a convicted felon. Paige had previously been convicted of five state felonies, including firearm, drug, and assault offenses.
According to court documents and statements made in court, in the months leading to August 2019, the Elizabeth City Police Department received information from two confidential sources that Paige was distributing heroin in Elizabeth City.
On August 20, 2019, law enforcement set up surveillance and witnessed Paige engage in what appeared to be a hand to hand drug deal in an AutoZone parking lot. He was wearing a black single-strap bookbag.
Because Paige was on post-release supervision for a prior offense, officers notified his probation officer. The same day, probation officers went to Paige’s apartment in Elizabeth City to conduct a warrantless search with assistance from law enforcement.
They detained Paige and two other men who were present. In the bathroom beside the toilet, officers found the black single-strap shoulder bag that Paige had been carrying at AutoZone earlier in the day. In it they found his NCDMV ID card and a Ruger LCP II .380 caliber handgun, loaded with 6 rounds. They also found a digital scale and four bags that contained a mixture of Fentanyl and a schedule II fentanyl precursor called ANPP.
In a shoe box in the living room, officers found a second firearm, a Taurus 9mm handgun loaded with 9 rounds. Elsewhere, they recovered ammunition of different calibers and a firearm magazine. In a second book bag in the living room, officers found a clear plastic bag containing more of the Fentanyl and ANPP mixture, and in the kitchen cabinets, they found a digital scale and 91 blue wax bags, commonly used to package narcotics. Officers seized eight additional plastic bags of powder substance from the pockets of the other two men who were present. Altogether, officers seized over 42 grams of substance containing ANPP and Fentanyl.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Elizabeth City Police Department, Pasquotank County Sheriff’s Office, N.C. Department of Public Safety, and Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-cr-00012-BO.
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East Haven Resident Admits Stealing from Town's Board of Education Child Care ProgramRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that CATHERINE FINKLE, 58, of East Haven, waived her right to be indicted and pleaded guilty today to one count of wire fraud related to her theft of more than $38,000 from East Haven’s Board of Education child care program.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Stefan R. Underhill occurred via videoconference.
According to court documents and statements made in court, from January 2000 to November 2018, Finkle was the East Haven Board of Education Program Director for the School Age Child Care Program, commonly called the Little Jackets Program. As the program director, Finkle had access to the Little Jacket Program’s bank accounts and received tuition payments on behalf of the program. From January 2011 to November 2018, Finkle defrauded the East Haven Board of Education by taking more than $38,000 in tuition payments, in the form of money orders and cash, that had been made for students in the Little Jackets Program. She then diverted the payments for her own benefit.
Judge Underhill scheduled sentencing for May 6, 2021, at which time Finkle faces a maximum term of imprisonment of 20 years.
Finkle also has agreed to pay restitution of $38,554.50.
Finkle is released on a $50,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Defendant in Refund Fraud Scheme Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Talalima Toilolo of Salt Lake City was sentenced today to 10 years in prison for a conspiracy to commit a bank fraud scheme that attempted to defraud financial institutions of more than $3.8 million, U.S. Attorney McGregor W. Scott announced.
Toilolo was also ordered to pay $827,369 in restitution to victims of the refund fraud. This amount reflects the amount that the defendants received from the scheme.
According to court documents, between June 2018 and February 2019, Talalima Toilolo, 44, conspired with Johnathon Ward and Monica Nunes to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to refund customers for returns, reimbursements, and erroneous charges.
The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. They programmed each terminal to make it appear as if it was authorized by a particular retail merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ payment processors to transfer funds to the defendants’ fraudulent accounts. The defendants then drained the stolen funds from the accounts and distributed them among members of the conspiracy.
This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office, and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Nunes has pleaded guilty and is scheduled to be sentenced on March 18. In July 2020, the government filed a superseding indictment in this case charging Johnathon Ward with multiple counts of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The superseding indictment also added Sabrina Toilolo who is the daughter of Talalima Toilolo. These charges are still pending against Ward and S. Toilolo. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Dayton man sentenced to 24 years in prison for dealing opioids that caused overdose deathRead the Press Release
DAYTON – A Dayton man was sentenced in U.S. District Court today to 288 months in prison for distributing carfentanil, fentanyl and heroin that resulted in at least one overdose death.
Myron D. Baker, 37, pleaded guilty to two federal drug offenses the day he was scheduled to stand trial in November 2019.
According to court documents, beginning in at least January 2017, Baker conspired with others to obtain and distribute opioids in Gallipolis and Dayton for personal profit.
Baker, also known as “Science,” “Capo” or “Sci,” maintained a residence on Lexington Avenue in Dayton to store, package and distribute the drugs. He also maintained a video surveillance system at the residence for the protection of his drugs and money.
Baker and others distributed drugs in the Dayton area that resulted in several overdoses, at least one of which was fatal.
Specifically, in March 2017, two individuals bought what they thought was heroin from Baker and others in Trotwood. The substance actually contained carfentanil. Upon purchasing the drugs, the individuals drove to the parking lot of a Dayton area restaurant to use them. One individual snorted the drugs and the other used a syringe to inject the drugs. Both overdosed, and the person who injected the drugs could not be resuscitated and was pronounced dead the following morning.
As part of his plea, Baker accepted responsibility for causing the death of one individual and serious bodily injury to at least two others who experienced nonfatal overdoses. Baker later attempted to withdraw his guilty plea but was eventually denied by the Court.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Sheila G. Lafferty and Amy M. Smith are representing the United States in this case.
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David H. Estes named as Acting U.S. Attorney for Southern District of GeorgiaRead the Press Release
By virtue of the Vacancies Reform Act, David H. Estes is officially Acting U.S. Attorney for the Southern District of Georgia. He formally served as First Assistant U.S. Attorney prior to the departure Feb. 9 of then-U.S. Attorney Bobby L. Christine.
Acting U.S. Attorney David H. Estes, Southern District of GeorgiaCouple Behind “My Buddy Loans” Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
TEXARKANA, Texas – A Liberty County, Texas, man and woman have been indicted for filing hundreds of fraudulent Economic Injury Disaster Loan (EIDL) applications with the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Clifton Pape, 45, and Sally Jung, 58, both of Cleveland, Texas, allegedly operated a COVID relief fraud scheme known as “My Buddy Loans,” that garnered them more than $700,000 in fraud proceeds and resulted in at least $1.3 million in loss to the United States. Pape and Jung are charged by way of a federal indictment that charges violations of 18 U.S.C. §§ 1349 and 2326, conspiracy to commit telemarketing wire fraud victimizing ten or more persons over the age of fifty-five; 18 U.S.C. § 1343, wire fraud; and 18 U.S.C. §§ 1028A and 2, aggravated identity theft and aiding and abetting.
“We believe this investigation—to date—involves the single largest number of individual fraudulent EIDL applications associated with the CARES Act,” said Acting U.S. Attorney Nicholas Ganjei. “We are asking those with information about the My Buddy Loan fraud scheme, including those who believe they may be victims, to call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint using the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”
“This telemarketing scheme exploited those seeking assistance during the COVID pandemic, including many who were over the age of 55,” said SBA OIG’s Central Region Special Agent in Charge Sharon Johnson. “We are asking members of the press and the community to encourage those victimized by this fraud scheme—including hundreds of residents in Texas and across the country—to file a complaint with the NCDF.”
“This case demonstrates the investigative capabilities of the United State Secret Service and should service as a strong deterrent to anyone considering taking part in a similar scam,” said William Mack, Resident Special Agent in Charge of the Secret Service Tyler Texas Resident Office. “This investigation highlights our outstanding partnership with the SBA OIG’s Central Region and we will continue to work with our law enforcement partners to disrupt criminal groups who target and victimize our communities. We thank members of the public and the banking community who have been vigilant, and we encourage them to continue reporting any suspicious activity involving COVID relief.”
According to court documents filed in U.S. District Court in Texarkana, Pape and Jung operated the telemarketing scheme under the name My Buddy Loans. In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned a few acres of land. Instead, Pape and Jung actually filed fraudulent EIDL applications with the SBA that contained the victims’ personal identification information.
Pape and Jung used Square’s credit and debit card processing service to charge third parties the fee. Pape and Jung completed at least 700 successful charges, obtaining at least $700,000 in fees. Pape and Jung then transferred the proceeds of the fraud scheme into a bank account they controlled. On one occasion, Pape used the fraud proceeds to pay a traffic ticket. On another occasion, Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at a resort in San Antonio, Texas. A picture from that stay shows Pape and Jung celebrating over sparkling wine. Pursuant to a seizure warrant, agents seized the $505,535.04 in fraud proceeds remaining in the account.
The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization or EIDL advances and low-interest loans to small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Under the EIDL program applicants were eligible for a forgivable advance of up to $10,000 if the applicant had ten or more employees.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Under federal statutes, Pape and Jung face up to 168 years in federal prison and a $6,000,000 fine at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being investigated by the U.S. Secret Service and the SBA Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Convicted Sex Offender from Elmira Going to Prison for 14 Years for Possessing Child PornographyRead 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 Brian Thomas, 59 of Elmira, NY, who was convicted of possession of child pornography, was sentenced to serve 14 years in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr. to possessing child pornography.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that on March 29, 2020, the defendant distributed, to an undercover FBI Task Force Officer, child pornography depicting the sexual abuse of several prepubescent children. Using IP information, the FBI located Thomas and executed a search warrant at his residence. Digital storage devices, including a computer and thumb drive, were seized. A forensic examination determined that Thomas received and possessed child pornography on both devices.
The defendant is a registered sex offender following previous New York State convictions for child sexual abuse and child exploitation crimes. When interviewed by the FBI, Thomas admitted that during the 1980’s and 1990’s, he sexually abused approximately nine children between the ages of 4 and 10.
The sentencing is the result of an investigation by the Corning Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, with assistance from the Elmira Police Department, under the direction of Chief Joseph Kane.
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Clairton Man Charged with Drug and Health Care Fraud OffensesRead the Press Release
PITTSBURGH - A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and health care laws, United States Attorney Scott W. Brady announced today.
The 96-count Indictment named Joseph DiCrose, 64, as the sole defendant.
According to Indictment, from on or about May 29, 2018 and continuing to on or about December 5, 2018, Joseph DiCroce is charged with using or maintaining a drug-involved premises and health care fraud. During the same dates above, DiCroce is also charged with distribution of a controlled substance.
The law provides for a maximum total sentence of not more than twenty years in prison, a fine of not more than $500,000.00 or both for the drug premise count; not more than twenty years in prison, a fine of not more than $1,000,000.00 or both, for the distribution counts; and not more than ten years in prison, a fine of not more than $250,000.00 or both, for the health care fraud charge. 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 Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Health and Human Services - Office of the Inspector General, and the Pennsylvania Office of the Attorney General 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.
Christian Torruellas Held on Firearms ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Christian Torruellas, 28, of Newark, New Jersey, appeared in United States District Court in Burlington today on a charge that he possessed a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy ordered that Torruellas be held without bail until his next hearing next week.
According to the criminal complaint that was filed today, the U.S. Marshals Service in Vermont and local law enforcement officers were assisting the Marshals Service in the New York City area in a search for Torruellas, who was a fugitive from justice. On February 10, officers arrested Torruellas while he was driving in Brattleboro. They recovered a .38 caliber pistol from the floor of the car next to the driver’s seat. Torruellas is prohibited from possessing firearms because he has a 2016 felony conviction in federal court in New Jersey for possessing firearms as a prohibited person. When arrested in Vermont, Torruellas was an absconder from his federal supervised release in New Jersey.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Torruellas faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Torruellas is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.