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31 March 2021
Fifth St. Croix Woman Sentenced to Federal Incarceration, Ordered to Pay Restitution in Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Sheba Young, age 44, from St. Croix, was sentenced yesterday in federal court to ten months of incarceration, followed by three years of supervised release after pleading guilty to Conspiracy to Defraud the United States. She was also ordered to pay restitution in the amount of $37,086 to the Internal Revenue Service.
According to the plea agreement filed with the court, from January 2011 to July 2012, Sheba Young and nine others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of individuals (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds, spent them using a debit card or transferred them to other accounts, all for personal use.
As a result of the scheme, approximately $40,695 of falsely claimed returns was designated for deposit into Defendant’s bank account, of which approximately $37,086 was actually deposited therein.Of ten defendants charged in the tax fraud scheme, eight others have entered guilty pleas, four of whom have been sentenced in federal court by District Court Chief Judge Wilma Lewis. The remaining two defendants are scheduled for trial on June 7, 2021.
The prosecution of this fraud scheme is the result of years of investigative work by the
Internal Revenue Service-Criminal Investigations, which identified and dismantled a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz.
Felon Charged with Illegal Firearms Possession in Stanislaus CountyRead the Press Release
FRESNO, Calif. — A two-count indictment was unsealed today charging Raymond Matthew Vance, 29, of Fresno, with two counts of being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Vance was in possession of two firearms on February 4, 2020, and an additional firearm on February 6, 2020. Vance committed the offenses in Stanislaus County. Vance was previously convicted of being a felon in possession of a firearm in the Eastern District of California in 2019, and was serving a probationary sentence for that offense at the time that he possessed the firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Turlock Police Department, the Modesto Police Department, the Tracy Police Department, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Vance faces a maximum statutory penalty of ten years in prison and a $250,000 fine for each count. 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.
Forrest Fenn Treasure Hunter Digs Himself into a Federal SentenceRead the Press Release
Acting United States Attorney Bob Murray announced today that RODRICK DOW CRAYTHORN, 52, of Syracuse, Utah, was sentenced by Chief Federal District Court Judge Scott W. Skavdahl, for excavating and damaging archeological resources in the cemetery of the Fort Yellowstone National Historic Landmark in Yellowstone National Park. Craythorn received a sentence of six months of imprisonment plus six months of home detention, to be followed by two years of supervised release. He was also ordered to pay $31,566 in restitution.
Craythorn was found digging in Fort Yellowstone’s cemetery in late 2019 and early 2020, while looking for a treasure believed to be worth millions. Rangers and special agents of the National Park Service discovered seventeen sites of illegal excavation, including damage to an historic grave. The cemetery is a multicomponent archeological site with historical human burials. The cemetery is included in the National Register of Historic Places and more specifically designated on July 31, 2003, as a National Historic Landmark. Yellowstone National Park was established in 1872 as the nation’s first national park, and the U.S. Army was dispatched to the park in 1886 to protect its natural features and wildlife. Originally established as Camp Sheridan in 1891, it evolved into Fort Yellowstone and served as the Army headquarters until their departure in 1918. The Army began internments in the cemetery in 1888. At least 54 people were buried in the cemetery between 1888 and 1916, most of them civilian employees of the Army and relatives of military personnel.
A Santa Fe, New Mexico, art dealer named Forrest Fenn buried a chest of gold, silver, and gems in the western United States and then left a clue-filled poem to solve its location. The investigation into this matter revealed that Craythorn had done extensive research on the Forest Fenn treasure and documented his efforts to family and friends. Craythorn did not find the treasure during his criminal adventure. It was found later in Wyoming by another person.
"Yellowstone is one of the country’s most popular national parks and we must do everything in our power to investigate and prosecute those who damage and destroy its natural and cultural resources. A national park is no place to stage an adult treasure hunt motivated by greed. The harmful actions of Mr. Craythorn, no matter the reason or intent, destroyed valuable archaeological resources that cannot be undone", stated Acting United States Attorney Bob Murray. "I am pleased with the results of this case. The teamwork between Assistant United States Attorney Stephanie Hambrick and the rangers and special agents with our National Park Service resulted in the successful prosecution of a crime that a sentence of imprisonment is rarely imposed. Craythorn deserves time in a federal prison, no matter the length. Yet this case really serves to remind those enjoying our national parks the importance of respecting and preserving it for the whole of America", Murray said.
"This is the most significant investigation of damage to archaeological resources in Yellowstone National Park’s recent history," said Superintendent Cam Sholly. "I want to sincerely thank law enforcement officers, special agents, archaeological staff, the Department of Justice District of Wyoming and the U.S. District Court Judge for their outstanding work on this complex case."
"This is an example of a highly egregious resource violation stemming from the Forrest Fenn treasure hunt saga," said Yellowstone National Park Chief Ranger Sarah Davis. "Today’s action by the DOJ sends a clear message that these types of transgressions will be aggressively investigated and prosecuted."
-END-
Additional Information and Resources:
Website: Fort Yellowstone Cemetery (U.S. National Park Service) (nps.gov)
Images: News Media | Flickr
Dewitt Man Sentenced to 30 Years in Prison for Attempted Coercion and Enticement of a Child and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Derek Indivero, age 28, of Dewitt, New York, was sentenced today to serve 30 years in prison for attempted coercion and enticement of a child and possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon, Special Agent-in-Charge Thomas Relford of the Albany Division of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
As part of his earlier guilty plea, Indivero admitted that in February of 2018 he began communicating with a middle school student using the on-line messaging application Snapchat. Indivero offered the student $50 in exchange for sexual contact, and then met with the minor, engaged in the sexual contact, and paid the child $49.
Later that same month, law enforcement officials took over the middle school student’s Snapchat identity and, posing as the child, continued messaging Indivero. During the course of a Snapchat conversation, Indivero offered to pay the child $50 in exchange for oral sexual conduct, and then drove to a location to meet with the child for that purpose. Instead of finding the child, Indivero encountered law enforcement officials, and was arrested.
As part of his guilty plea, Indivero also admitted that at the time of his arrest he possessed 37 child pornography videos he obtained from the Internet using his cellular telephone.
Chief United States District Judge Glenn T. Suddaby also imposed a 30-year term of supervised release, which will start after Indivero is released from prison, and ordered Indivero to pay $6,000 in restitution and a $200 special assessment. As a result of his conviction, Indivero will be required to register as a sex offender upon his release from prison.
Indivero’s case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police in coordination with the Onondaga County Sheriff’s Office and the Onondaga County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Deltona Man Federally Charged with Using A Minor to Produce Child Sex Abuse ImagesRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Wayne Joseph Cavins (62, Deltona) with four counts of producing child exploitation materials. If convicted, he faces a minimum mandatory penalty of 15, and up to 30 years, in federal prison on each count. Cavins was arrested at his home on March 30, 2021, and has been ordered detained pending trial.
According to the indictment, between January 8 and January 21, 2021, Cavins enticed and used a minor to engage in sexually explicit conduct for the purpose of having the minor produce images depicting the sexual abuse of the minor.
An indictment is merely a formal charge that a defendant has violated one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by St. Johns County Sheriff’s Office and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This is another case 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.
DeepDotWeb Administrator Pleads Guilty to Money Laundering ConspiracyRead the Press Release
WASHINGTON – An Israeli national pleaded guilty today for his role in operating DeepDotWeb (DDW), a website that connected Internet users with Darknet marketplaces, where they purchased illegal firearms, malware and hacking tools, stolen financial data, heroin and fentanyl, and other contraband.
According to court documents, Tal Prihar, 37, an Israeli citizen residing in Brazil, owned and operated DDW along with co-defendant Michael Phan, 34, of Israel, beginning in October 2013. In addition to providing general information about the Darknet, DDW provided users with direct links to illegal Darknet marketplaces, which are not accessible through traditional search engines. For providing these links, Prihar and Phan received kickback payments from the marketplaces in the form of virtual currency, including approximately 8,155 bitcoins (worth approximately $8.4 million based on the bitcoin trading value at the time of the transactions). To conceal the nature and source of these illegal kickback payments, Prihar transferred the payments from his DDW bitcoin wallet to other bitcoin accounts and to bank accounts he controlled in the names of shell companies. DDW was seized by federal authorities in April 2019, and Prihar has agreed to forfeit $8,414,173.
"Tal Prihar served as a broker for illegal Darknet marketplaces — helping such marketplaces find customers for fentanyl, firearms, and other dangerous contraband — and profited from the illegal business that ensued," said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. "This prosecution, seizure of the broker website, and forfeiture send a clear message that we are not only prosecuting the administrators of Darknet marketplaces offering illegal goods and services, but we will also bring to justice those that aim to facilitate and profit from them."
"Tal Prihar today acknowledged his leadership role in operating a web site that served as a gateway to numerous dark web marketplaces selling fentanyl, heroin, firearms, hacking tools and other illegal goods," said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. "Mr. Prihar and his codefendant extracted a fee from each customer routed to these illegal sites, profiting in the millions of dollars."
"For six years, DeepDotWeb was a gateway to facilitate the illegal purchase of items to include dangerous drugs, weapons, and malicious software," said Acting Special Agent in Charge Carlton Peeples of the FBI’s Pittsburgh Field Office. "Prihar profited as a byproduct from other people’s dangerous transactions and today’s guilty plea sends a message to other cyber actors across the globe who think the dark web is a safe haven. The FBI works with our local, state, federal and international partners regularly to dismantle illicit websites and go after those responsible for them."
Prihar pleaded guilty to conspiracy to commit money laundering. He is scheduled to be sentenced on Aug. 2, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Pittsburgh Field Office is investigating the case.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania and Trial Attorneys C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The department thanks the French authorities as well as its law enforcement colleagues at the U.S. Postal Inspection Service, IRS, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and National Crime Agency in the United Kingdom. Significant assistance was provided by the Justice Department’s Office of International Affairs.
This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and more. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
This prosecution also is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DeepDotWeb Administrator Pleads Guilty to Money Laundering ConspiracyRead the Press Release
An Israeli national pleaded guilty today for his role in operating DeepDotWeb (DDW), a website that connected internet users with Darknet marketplaces, where they purchased illegal firearms, malware and hacking tools, stolen financial data, heroin and fentanyl, and other contraband.
According to court documents, Tal Prihar, 37, an Israeli citizen residing in Brazil, owned and operated DDW along with co-defendant Michael Phan, 34, of Israel, beginning in October 2013. In addition to providing general information about the Darknet, DDW provided users with direct links to illegal Darknet marketplaces, which are not accessible through traditional search engines. For providing these links, Prihar and Phan received kickback payments from the marketplaces in the form of virtual currency, including approximately 8,155 bitcoins (worth approximately $8.4 million based on the bitcoin trading value at the time of the transactions). To conceal the nature and source of these illegal kickback payments, Prihar transferred the payments from his DDW bitcoin wallet to other bitcoin accounts and to bank accounts he controlled in the names of shell companies. DDW was seized by federal authorities in April 2019, and Prihar has agreed to forfeit $8,414,173.
“Tal Prihar served as a broker for illegal Darknet marketplaces — helping such marketplaces find customers for fentanyl, firearms, and other dangerous contraband — and profited from the illegal business that ensued,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution, seizure of the broker website, and forfeiture send a clear message that we are not only prosecuting the administrators of Darknet marketplaces offering illegal goods and services, but we will also bring to justice those that aim to facilitate and profit from them.”
“Tal Prihar today acknowledged his leadership role in operating a web site that served as a gateway to numerous dark web marketplaces selling fentanyl, heroin, firearms, hacking tools and other illegal goods,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “Mr. Prihar and his codefendant extracted a fee from each customer routed to these illegal sites, profiting in the millions of dollars.”
“For six years, DeepDotWeb was a gateway to facilitate the illegal purchase of items to include dangerous drugs, weapons, and malicious software,” said Acting Special Agent in Charge Carlton Peeples of the FBI’s Pittsburgh Field Office. “Prihar profited as a byproduct from other people’s dangerous transactions and today’s guilty plea sends a message to other cyber actors across the globe who think the dark web is a safe haven. The FBI works with our local, state, federal and international partners regularly to dismantle illicit websites and go after those responsible for them.”
Prihar pleaded guilty to conspiracy to commit money laundering. He is scheduled to be sentenced on Aug. 2, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Pittsburgh Field Office is investigating the case.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania and Trial Attorneys C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The department thanks the French authorities as well as its law enforcement colleagues at the U.S. Postal Inspection Service, IRS, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and National Crime Agency in the United Kingdom. Significant assistance was provided by the Justice Department’s Office of International Affairs.
This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and more. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
This prosecution also is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DeWitt Man Sentenced to 40 Years in Prison for Threats Made to Federal Law Enforcement Agents and a Former United States AttorneyRead the Press Release
LITTLE ROCK—Multiple death threats, including repeated threats to FBI agents and a former United States Attorney, earned a Dewitt man 40 years in federal prison. Clayton Jackson, 35, whose legal address is in Minnesota but who was living in Dewitt when the original threats were made, received the 480-month sentence from United States District Court Judge Susan Webber Wright on Wednesday.
Jackson originally pleaded guilty on November 2, 2020, to all five counts of an indictment that charged him with three counts of threatening to assault and murder a federal official and two counts of mailing threatening communications. Each of the five counts carried a maximum 10-year sentence. On Wednesday, Judge Wright sentenced Jackson to the maximum 10 years on each count, and then ran the sentences for counts 1 through 4 consecutively, and count 5 concurrently, to arrive at the 40-year sentence. There is no parole in the federal system.
At his change of plea hearing, Jackson admitted that he mailed two letters to the FBI headquarters in Little Rock, one in February 2020 and one in March 2020, which threatened to kill multiple FBI employees who he believed were involved in an unrelated criminal matter. Both letters were signed by Jackson. After the FBI received and reviewed the correspondences, an FBI special agent not named in the letters interviewed Jackson. During the interview Jackson admitted that he sent the letters and reiterated his intention to kill the people named in the letters. During the interview, Jackson said that the letters were “not a threat, but a promise,” and acknowledged that he knew it was a crime to send those letters, but said “I can’t be sentenced forever” when emphasizing his desire to kill the FBI employees. Jackson was indicted by a federal grand jury on June 4, 2020.
At the sentencing hearing on Wednesday, an FBI special agent testified that after indictment, Jackson continued to write letters threatening to kill the same people named in the original letters, as well as additional civilians not originally named. The FBI received three letters that Jackson wrote while in custody, which stated his intention to escape from prison and kill additional people, including former United States Attorney for the Eastern District of Arkansas Cody Hiland. According to testimony on Wednesday, the most recent letter, in which Jackson stated there was a “price tag” on two civilians, was dated March 11, 2021, and addressed to the “White Knights of the Ku Klux Klan.” Additional testimony Wednesday detailed an unsuccessful escape attempt by Jackson from Prairie County jail on March 7, 2021, in which Jackson assaulted a local prison guard.
“This defendant’s repeated threats against law enforcement were a failed attempt to intimidate those who have sworn to protect and serve,” said Acting United States Attorney Jonathan D. Ross. “This lengthy sentence should serve as a warning: threats like these will not be tolerated and will not prevent law enforcement from doing their important work of protecting our communities.”
“We are pleased with the Court’s decision regarding Clayton Jackson today,” said FBI Little Rock Acting Special Agent in Charge Jason Van Goor. “We take any threat against law enforcement seriously, and we believe Mr. Jackson’s 40-year sentence will serve as a warning to anyone thinking about threatening federal agents and officers. As always, we are grateful to our partners at the US Attorney’s Office for the Eastern District of Arkansas for their tremendous work on this case.”
In explaining her sentence, Judge Wright highlighted Jackson’s continued criminal conduct after indictment and his lack of remorse.
The investigation was conducted by the FBI and prosecuted by Assistant United States Attorney Chris Givens.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Columbus Area Drug Trafficking Organization DisruptedRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that an extensive drug trafficking organization that was responsible for selling large quantities of illegal drugs in the Columbus area has been dismantled. Thirty-six individuals were indicted by a grand jury on various federal charges, including possession of methamphetamine with intent to distribute and felon in possession of a firearm. Twenty-four have already been convicted and sentenced to federal prison.
“The large drug trafficking organizations not only saturate our communities with illegal drugs, they bring gun violence and contribute to the addiction problems facing the Hoosier state and nation,” said Childress. “Federal law enforcement will continue to work with state and local law enforcement to eliminate these organizations and assure the citizens who live in the Southern District of Indiana that we are committed and determined to keep the communities where they live safe.”
Bartholomew County Chief Deputy Prosecutor, Gregory E. Long said, “We have a good working relationship with our federal partners, and I look forward to continuing to work together as a team to help stop the flow of illegal drugs from entering our community.”
In 2018, federal agents and officers assigned to the Bartholomew County Joint Narcotics Enforcement Team (JNET) initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Columbus Day.
During the investigation, agents and officers identified members of a Mexican based drug trafficking organization who were sending large quantities of methamphetamine, heroin, and marijuana to the Columbus, and Seymour, Indiana area. What followed was a multi-year investigation that targeted the Chavez family. The Chavez family lived and operated out of the Columbus area, where multiple family members and their close associates used a variety of methods to traffic drugs (primarily, methamphetamine). Throughout the investigation, agents and officers intercepted multiple parcels, conducted numerous controlled purchases, and conducted approximately 15 search warrants in the Bartholomew County area.
Operation Columbus Day netted approximately 114 pounds of methamphetamine, 4 pounds of heroin/fentanyl and 28 pounds of marijuana. In addition to drug seizures, approximately $224,124 in U.S. currency was seized as drug proceeds. Agents and officers also recovered approximately 115 firearms.
Following the investigation, 36 individuals were indicted federally through the United States Attorney’s Office and 23 additional individuals were prosecuted through the Bartholomew County Prosecutor’s Office on charges ranging from possession with intent to distribute methamphetamine to felon in possession of a firearm. Of the 36 individuals indicted, 25 have been convicted, and sentences ranged from 12 months to 270 months in federal prison.
The below individuals are just five of the 24 defendants thus far that have been prosecuted and sentenced for federal firearm, drug, and/or immigration charges.
- Jorge Chavez – sentenced to 270 months
- Ivan Chavez-Lozoya – sentenced to 69 months
- Jacklyn Munoz – sentenced to 108 months
- Bryan Miranda-Alvidrez – sentenced to 120 months
- Fernando Lopez-Mendez – sentenced to 120 months (and subject to deportation)
This investigation was a collaborative effort between the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Postal Inspection Service, Bartholomew County Joint Narcotics Enforcement Team (JNET), Seymour Police Department, U.S. Marshal Service, and Homeland Security Investigations.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Columbus Day was a huge success for the fine citizens of Bartholomew County and fellow Hoosiers. Based on the exceptional work conducted by DEA and our partner’s approximately 60 individuals were arrested. In addition, over 100 pounds of methamphetamine and over 100 firearms were seized. This investigation was a perfect example of law enforcement collaborating at the highest levels. Any time we can remove large amounts of debilitating drugs such as methamphetamine, heroin, fentanyl, and illegally possessed firearms from the streets, it is a big win. DEA remains committed to working hand in hand with the Bartholomew County Joint Narcotics Enforcement Team to keep our communities safe.”
“Drugs and firearms violence unfortunately go hand in hand,” stated Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “ATF is committed to making our communities safer for everyone, and the conviction of those involved in this violent drug trafficking scheme is a step toward that goal. My thanks go out to all of our local, state, and federal partners in this investigation for their tireless work and commitment.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service stated, “This investigation is another example of a successful crack down on those seeking to abuse the Postal Service by shipping drugs and illegal proceeds through the U.S. Mail. Preventing illegal drugs from entering the U.S. Mail system is one of the highest priorities for the U.S. Postal Inspection Service. As this case illustrates, we utilize enhanced investigative techniques and leverage strategic partnerships with other federal, state and local law enforcement agencies in an effort to prevent these dangerous drugs from harming our communities.”
“Bartholomew County’s Joint Narcotics Enforcement Team is a well-coordinated initiative that is providing an entirely different approach and attack on dealing with drugs,” said Bartholomew County Sheriff Matthew A. Myers. “JNET was taken to the “next level” when a Bartholomew County Sheriff’s deputy was assigned to the DEA Task Force. “Our greatest focus and number one priority is on drug eradication, particularly targeting people who provide illegal narcotics to our residents. Having local, state and federal agencies working together, sends a huge message,” added Sheriff Myers.
“Eliminating dangerous drugs from Columbus and holding those persons responsible who transport and distribute narcotics into our community is one of law enforcements most critical roles,” said Columbus Police Chief Michael Richardson. “These arrests spotlight the hard work that was done by our JNET detectives in collaboration with a number of law enforcement agencies. This investigation should serve as a wake-up call to anyone who is considering selling drugs in Columbus and Bartholomew County. I am extremely proud of every officer involved in this lengthy investigation and would like to commend them for their exceptional work.”
According to Assistant U.S. Attorneys M. Kendra Klump and Lawrence Hilton, who prosecuted this case for the government, this case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting organizations that supply and distribute methamphetamine and or heroin in the district. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1.
Chicago Consultant Charged with Federal Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant was indicted today on tax offenses for allegedly underreporting and failing to file federal income taxes.
ANNAZETTE COLLINS, also known as “Annazette Collins-Langston” and “Annazette Collins-Momon-Langston,” 58, of Chicago, is charged with two counts of willfully filing a false individual income tax return, two counts of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return. The indictment was returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Sarah E. Streicker, Diane MacArthur, Michelle Kramer, Matthew L. Kutcher, Timothy J. Chapman, and Julia Schwartz.
According to the indictment, Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. The indictment also accuses Collins of willfully failing to file a corporate income tax return for the calendar years 2015 and 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each felony count of filing a false individual income tax return is punishable by up to three years in federal prison. The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum prison sentence of one year. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Central Falls Man Sentenced to Thirty-Five Years in Prison for Creating and Possessing Child PornographyRead the Press Release
PROVIDENCE – A Central Falls man who admitted to repeatedly abusing a toddler that he photographed and filmed in various stages of undress, displaying her genitalia, and of him engaged in sexually explicit conduct with her, was sentenced today to 35 years in federal prison.
According to court documents, Jose A. Cortes, 41, had regular access to a female toddler and used that relationship with her to sexually abuse her multiple times. He memorialized the abuse by filming and taking photographs of his actions.
In addition to creating a library of photographs and video of his abuse of the toddler beginning when she was approximately two-and-a-half years old, Cortes admitted to amassing a sizeable collection of thousands of images of child pornography, including a video of a prepubescent child in bondage being raped.
According to court documents, Cortes criminal conduct first came to the attention of the Central Falls Police Department when an acquaintance of Cortes told police that Cortes showed him images on a tablet of teenaged girls and images of babies being molested. While showing off the images, Cortes came upon images of the known victim and said, “That’s me with [redacted] daughter.”
According to court documents, Cortes told the induvial he would place the toddler’s sibling in another room with video games and treats so he could “do what he does to her.” He added, “If you’re gonna do this, you gotta get the children that don’t talk, they’re babies.”
Jose Cortes, detained since his arrest on April 19, 2018, pleaded guilty on June 15, 2020, to two counts of sexual exploitation of a minor and one count of possession of child pornography.
Cortes was sentenced today by U.S. District Court Judge William E. Smith to 35 years in federal prison to be followed by lifetime federal supervised release, announced Acting United States Attorney Richard B. Myrus and Central Falls Police Chief Colonel Anthony Roberson.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
Acting United States Attorney Richard B. Myrus acknowledges and thanks the Rhode Island State Police and Homeland Security Investigations for their assistance in the investigation, and the Rhode Island Department of the Attorney General for their assistance preparing the case for prosecution in U.S. District Court.
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Brother and Sister Charged in Scheme to Thwart IRS Tax CollectionRead the Press Release
A federal grand jury in Houston, Texas, returned an indictment on March 17, 2021, charging Michael Andrew McCann with conspiring to defraud the United States, endeavoring to obstruct the IRS, failing to file tax returns, and making false bankruptcy declarations.
The grand jury also returned an indictment charging Toni Gale Engeling with conspiring to defraud the United States and obstructing the grand jury. The defendants made their initial court appearance today before U.S. Magistrate Judge Sam Sheldon of the U.S. District Court for the Southern District of Texas.
According to the indictment, McCann is a dentist in Brazoria and Engeling is a bookkeeper and McCann’s sister. From 2010 to 2015, McCann and Engeling allegedly employed a variety of methods to prevent the IRS from assessing and collecting McCann’s individual income taxes, including using nominee entities, commingling personal and business finances, and lying to the IRS. The indictment further alleges that McCann corruptly endeavored to obstruct IRS collection efforts as early as 2002; that McCann made false declarations on schedules he filed in connection with multiple bankruptcy cases; and that McCann willfully failed to file tax returns for the years 2014 through 2018. The indictment further alleges that in September 2019, Engeling obstructed the grand jury’s investigation into McCann by making false and misleading statements.
If convicted, McCann faces a maximum sentence of five years in prison for the conspiracy charge; five years in prison for each charge of bankruptcy fraud; three years in prison for the IRS obstruction charge; and one year for each charge of willful failure to file. If convicted, Engeling faces a maximum sentence of five years in prison for the conspiracy charge and ten years in prison for the grand jury obstruction charge.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Jen Ihlo and Trial Attorneys Mitchell Galloway and William Guappone of the Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CHAZ DEAR, 23, of Bridgeport, pleaded guilty today to possession of a firearm by a felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According court documents and statements made in court, in late 2019, law enforcement received information that Dear, who was on state parole, was selling marijuana. Investigators subsequently made a controlled purchase of marijuana from Dear. On January 30, 2020, Dear was arrested after a court-authorized search of his residence revealed a Glock 27, .40 caliber handgun with an extended magazine loaded with 23 rounds of ammunition, as well as small quantities of heroin and crack cocaine.
Dear’s criminal history includes state felony convictions for narcotics, weapon and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Dear is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 30, 2021, at which time he faces a maximum term of imprisonment of 10 years.
Dear has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Branson Man Indicted for Threatening Sheriff’s DepartmentRead the Press Release
SPRINGFIELD, Mo. – A Branson, Missouri, man has been indicted for threatening on the internet to injure employees of the Los Angeles County, California, Sheriff’s Department.
Joshua L. Bippert, 26, was charged in a single-count indictment returned under seal by a federal grand jury in Springfield, Mo., on March 23, 2021. The indictment was unsealed and made public on Tuesday, March 30, following Bippert’s arrest and initial court appearance.
The federal indictment alleges that Bippert communicated the threat over the internet to the Sheriff’s Department between Sept. 20 and 21, 2020.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI and the Los Angeles County, Calif., Sheriff’s Department.
Boston Man Pleads Guilty to Armed Robbery of Brockton Cell Phone StoreRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston in connection with the March 2019 robbery of a T-Mobile store in Brockton and shooting at police officers as he and his co-defendants fled the scene.
Darius Carter, 28, pleaded guilty to interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being a felon in possession of firearms and ammunition. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 20, 2021.
Darius Carter and co-defendants Diovanni Carter and Stephan Rosser-Stewart were charged in March 2019. Diovanni Carter was convicted by a federal jury and sentenced to 270 months in prison in September 2020. Rosser-Stewart has pleaded not guilty and is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
According to the charging documents, on the evening of Jan. 2019, Darius Carter and Rosser-Stewart entered a T-Mobile store in Brockton. It is alleged the men were carrying a semi-automatic firearm, which they pointed at the store manager as they demanded cash and electronics. Carter struck the store manager in the head with a firearm as he demanded that the manager open the door to a rear room with a large safe containing cell phones and cash. The men allegedly stole approximately $25,000 in cash and electronics, left the store, and fled in a getaway vehicle driven by Diovanni Carter.
Police responded and located the getaway vehicle. A high-speed chase ensued that reached over 70 mph in residential neighborhoods. During the chase, Darius Carter and, allegedly, Rosser-Stewart fired eight rounds at the pursuing police cruisers.
Law enforcement apprehended Darius Carter and Rosser-Stewart and recovered the stolen phones, cash and the three firearms used in robbery. Diovanni Carter was apprehended in March 2019.
Carter and his co-defendants were prohibited from possessing firearms and ammunition due to prior criminal convictions.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of a firearm during the commission of a crime of violence provides for a sentence of up to life in prison, and a mandatory consecutive term of imprisonment ranging from five years for the possession of a firearm, seven years for the brandishing of a firearm to 10 years for the discharge of a firearm. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal of the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief Emanual Gomes made the announcement today. Assistant U.S. Attorney Glenn MacKinlay, Chief of Mendell’s Organized Crime & Gang Unit, and Assistant U.S. Attorney Philip A. Mallard, a member of the unit, are prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Auto Body Shop Owner Sentenced for Tax FraudRead the Press Release
BOSTON – The owner of Everett and Worcester auto body shops was sentenced today in federal court in Worcester in connection with a payroll tax scheme resulting in a tax loss to the IRS of more than $290,000.
Adam Haddad, 43, of Shrewsbury, was sentenced by U.S District Court Judge Timothy S. Hillman to eight months in prison, one year of supervised release and ordered to pay restitution in the amount of $292,231. In September 2020, Haddad pleaded guilty to three counts of aiding the preparation of false tax returns.
For tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Armed Drug Courier Sentenced in Methamphetamine, Heroin CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Jose Alberto Seguy, 24, of Brownsville, Texas, was sentenced today for his participation in the transportation of approximately 32 kilograms of methamphetamine ice and five kilograms of heroin from Texas to Atlanta, Georgia during January of 2020. Seguy pled guilty to federal charges of possession with intent to distribute methamphetamine and heroin, and possession of a firearm in relation to a drug trafficking felony in May of 2020.
According to documents filed in connection with his guilty plea, Seguy was the passenger in a truck stopped northbound on I-65 on January 9, 2020 by the Saraland Police Department. Seguy told officers he had a pistol in the car but no valid permit to carry it. A drug dog alerted on the rear of the truck for the presence of narcotics. Further investigation and a search of the truck revealed three large fire extinguishers and two vehicle batteries which appeared to have after-market seams and welds. Inside one of the batteries officers found five kilograms of heroin, and inside the fire extinguishers, officers found approximately 30 kilograms of methamphetamine.
United States District Court Judge William H. Steele imposed a ten-year sentence in Seguy’s case this morning, consisting of 60 months on each charge, to run consecutive to each other. Judge Steele also ordered that Seguy would serve a five-year term of supervised release when he is released from custody. Seguy was also ordered to pay a mandatory special assessment of $200. No fine was imposed. The judge further entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Jeremy Lewis, 23, of Ripley, Tennessee, has been sentenced to 180 months in federal prison for illegally possessing a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on April 11, 2019, the Ripley Police Department responded to an aggravated assault complaint where Lewis threatened to shoot his stepfather with an AR-15. Ripley Police quickly located Lewis and the assault rifle. Lewis admitted to possessing the weapon. He had previously been found guilty of other violent felonies such as aggravated assault and robbery.
On September 22, 2020, Lewis pled guilty to being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1). As a result of his felony convictions, Lewis is prohibited by federal law from possessing firearms or ammunition and was determined to be an armed career criminal under the federal sentencing guidelines and subject to a mandatory minimum sentence of 180 months.
On March 22, 2021, U.S. District Judge Sheryl H. Lipman sentenced Lewis to 180 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ripley Police Department, and the Brownsville Police Department investigated this case.
Special Assistant U.S. Attorney Sean G. Hord prosecuted this case on behalf of the government. SAUSA Hord is currently assigned from the 25th Judicial District Attorney’s Office.
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Ariton Man Sentenced to 157 Months in Prison Following Federal Firearms ConvictionsRead the Press Release
Montgomery, Alabama – On March 30, 2021, Marcus Antonio Grubbs, a 37-year-old man from Ariton, Alabama, was sentenced to 157 months in prison for possession of stolen firearms and possessing firearms in connection with a drug trafficking crime, announced Acting United States Attorney Sandra J. Stewart.
According to court records, the charges stem from two encounters Grubbs had with law enforcement in Dale and Barbour Counties. The first encounter occurred in September of 2015 when law enforcement was investigating numerous burglaries in the area and made contact with Grubbs. After searching his residence, at that time located in Dale County, agents discovered that Grubbs was in possession of approximately 25 guns, 24 of which were found to have been stolen. Grubbs has previous felony convictions and is prohibited by federal law from possessing firearms.
Later, in September of 2019, law enforcement executed another search warrant on Grubbs’ residence, then in Barbour County, and found more guns. In addition to the firearms, agents also seized a variety of illegal drugs, including approximately 70 grams of crack cocaine and 567 grams of methamphetamine.
Grubbs was indicted by a federal grand jury in February of 2020, and on September 29, 2020, he pleaded guilty to possession of stolen firearms and possession of a firearm in furtherance of a drug crime. In addition to his 13-year prison sentence, Grubbs was also ordered to serve three years of supervised release after his term is complete. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Alabama Law Enforcement Agency (ALEA), the Barbour County Sheriff’s Office, the Dale County Sheriff’s Office, the Henry County Sheriff’s Office, the Houston County Sheriff’s Office, the Dothan Police Department, the Enterprise Police Department, and the Opp Police Department investigated this case, with assistance from the United States Marshals Service. Assistant United States Attorney Brandon Bates prosecuted the case.
Aggravated Felon Sentenced to 46 Months in Federal Prison for Firearm and Immigration OffensesRead the Press Release
Ocala, FL – United States District Judge Roy B. Dalton, Jr., has sentenced Jose Merced Sanchez De La Torre (43, Ocala) to 46 months in federal prison for illegal reentry by a previously deported alien and unlawful possession of a firearm by an alien. Sanchez De La Torre had pleaded guilty on September 24, 2020.
According to court documents, on August 31, 2020, the FBI received a tip that a residence in Ocala contained illegal aliens and firearms. U.S. Customs and Border Protection researched the address and determined that one of the residents, Sanchez De La Torre, was an illegal alien from Mexico. Sanchez De La Torre previously had been deported from the United States, in 2015, following federal convictions for unlawful possession of a firearm (an aggravated felony) and seven counts of structuring financial transactions.
On September 8, 2020, law enforcement officers executed an arrest warrant at the residence. During a search of the premises, a large amount of ammunition and three firearms were located, including an AK-47 rifle. As both an illegal alien and a convicted felon, Sanchez De La Torre is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the FBI, U.S. Customs and Border Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Tyrie Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Acting U.S. Attorney Offers Tips for Keeping Families Safe OnlineRead the Press Release
Charleston, South Carolina --- Following the recent sentencing of a Cheraw man for transferring obscene material to a minor, Acting U.S. Attorney M. Rhett DeHart urges the public to take necessary precautions to keep themselves and their families safe from online predators.
“Be it through social media or other online messaging apps, predatory criminals have used sly communications efforts to victimize neighbors including children,” said Acting U.S. Attorney DeHart. “Our office urges the public to utilize the FBI Safe Online Surfing Program that covers important topics like cyberbullying, passwords, malware, and social media, while also understanding and following measures proven to help protect them in the consistently-evolving technological world.”
Acting U.S. Attorney DeHart offers the following advice for families to utilize to keep their families safe:
Advice for Children
- Keep your accounts private.
- Do not accept requests from strangers. Block or ignore messages from strangers.
- Be selective about the information and pictures you share online. Know and assume that any content you create online – texts, photos and/or videos – can and will be made public, permanently. Nothing "disappears" online. Once you send something, you have no control over where it goes.
- Understand that people can pretend to be anything/anyone online and that images can be altered or stolen.
- Be suspicious and stop communicating if you meet someone on one app, and they ask you to move to a different platform.
- If you feel overwhelmed or victimized, do not hesitate to ask for help, including that of law enforcement. Do not feel ashamed to report crimes.
- Immediately report anything you may believe is illegal to your local police department or to the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.
Advice for Adults
- Openly communicate with your children about online activity and possible victimization.
- Place limits on internet use and consider shutting down Wi-Fi overnight.
- Know and maintain passwords to phones, tablets, and computers.
- Spot check phones, tablets and computers and know what apps are being used and what is being downloaded.
- Ensure social media settings are set at the strictest level possible.
- Monitor who is in communication with your child and what is being said.
- Immediately report anything you may believe is illegal to your local police department or to the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.
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More information on the FBI Safe Online Surfing Program can be found at: https://www.fbi.gov/about/community-outreach/safe-online-surfing-sos-program.
56 Members of A Violent Gang Charged with Drug Trafficking and Firearms Violations in San Juan, Carolina, and Trujillo Alto, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 23, 2021, a federal grand jury in the District of Puerto Rico returned an indictment charging 56 violent gang members from the municipalities of San Juan, Carolina and Trujillo Alto, with conspiracy to possess with intent to distribute, possession with intent to distribute controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Puerto Rico Police Bureau (PRPB), San Juan and Carolina Strike Forces, and the United States Marshals Service investigated the case.
“This operation shows our resolve, along with our federal and state law enforcement partners, to continue working to protect the communities we serve from these deadly drugs and violence,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Operation 65 successfully removed members of an extremely violent drug organization from our streets and reflects the excellent collaboration between our federal and Puerto Rico law enforcement partners – coordinated through our HIDTA and OCDETF task force programs.”
“The members of “65 Inc.,” as this criminal organization was known, flooded San Juan, Carolina and Trujillo Alto neighborhoods with gun violence and drugs. Many lives in those communities have been irreparably damaged as a result of their violent criminal activity,” said Robert Cekada, Special Agent in Charge of ATF Miami Field Division. “During the course of the investigation, ATF, the USMS, PRPB, Carolina PD, and San Juan PD worked relentlessly to investigate 65 Inc. leaders and other key members of the organization. Also, Guaynabo PD, Bayamón PD, and San Juan PD assisted during the arrests.”
“The United States Marshals Service will continue working with the United States Attorney’s Office, the Bureau of Alcohol Tobacco and Firearms and all other agencies in conducting these enforcement operations to fight crime,” said Wilmer Ocasio Ibarra, US Marshal. “Today, I commend our Deputies and Task Force Officers for the excellent job they have done and continue to do every day in order to make our streets and communities safer.”
The indictment alleges that from 2015 to the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, marihuana, Oxycodone (Percocet), and Alprazolam (Xanax) within 1,000 feet of the Jardines del Paraíso, Jardines de Monte Hatillo, Las Dalias, Monte Park, Jardines de Campo Rico, San Martín, Jardines de Country Club, Ernesto Ramos Antonini, La Esmeralda, and Nuestra Señora de Covadonga Public Housing Projects, Los Claveles Condominium, and Buen Consejo Ward. The object of the conspiracy was the large-scale distribution of controlled substances and to possess and distribute kilogram quantities of controlled substances, mainly cocaine, in Puerto Rico, for further distribution in the continental United States.
In or around August 2015, new leadership among the street gangs emerged and gained control of most of the housing projects and wards within specific areas of San Juan, Carolina and Trujillo Alto. Members of this new gang identified themselves as 65 INC. or 65. Their goal was to take over and maintain control of all the drug trafficking activities within specific areas in the mentioned municipalities through the use of force, threats, intimidation and violence. Some members of 65 INC. transported and distributed kilogram quantities of cocaine from Puerto Rico to the continental United States.
During the course of the investigation, over 100 weapons were seized either directly from members of the drug trafficking organization or recovered by the Puerto Rico Police Bureau and ATF in areas controlled by the organization. Twenty-seven of the weapons recovered had been converted into machineguns.
Members of the organization had illegal connections to obtain weapons of different makes, models and calibers, including high powered rifles like AK-47 and AR-15 type pistols. They also had individuals who had the knowledge to modify firearms to convert them into fully automatic machineguns. They were also able to obtain high capacity magazines capable of accepting up to 30 rounds of ammunition at a time, and drum magazines capable of accepting up to 50 rounds of ammunition at a time, all of which were used by members of the organization. These types of magazines were also recovered by the PRPB and ATF during the investigation.
Members of the organization displayed their power and association with each other in the street by brandishing and at times firing weapons into the air, both at night and in broad daylight. Weapons would be brandished in public spaces, such as bars, pubs, common areas of the housing projects and wards they controlled, and outside areas of rival housing projects and wards. Some of the members of the conspiracy would drive around firing their weapons from moving vehicles in areas known to be controlled by rival gangs and in broad daylight on public roads and bridges, such as the Teodoro Moscoso bridge.
The organization’s control over drug trafficking stretched beyond Puerto Rico. Some of the members were involved in multi-kilogram distribution of cocaine to several states in the United States. They used other co-conspirators who traveled to the continental United States as mules with the cocaine. The mules would travel at times with up to 10 kilos each. The proceeds of the sale of those kilos was then transported back to Puerto Rico to the drug trafficking organization.
As part of the conspiracy, the members acted in different roles to further the goals of the conspiracy, including acting as leaders, drug point owners, runners, suppliers, enforcers, drug processors, sellers, and facilitators. The leaders and drug point owners routinely authorized and instructed other co-conspirators to provide free samples of narcotics to customers to promote the sales of a specific brand of drug. The defendants had access to cars, motorcycles, and scooters which they used to transport money, narcotics, and firearms.
The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. They often abducted and assaulted rival drug traffickers as well as members of their own drug trafficking organization to intimidate and maintain control of the drug trafficking. Thirty-two defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. They are:
Joseph E. Pérez-González, a/k/a “Peca/Stripper”
Shelby J. Pérez-Cora, a/k/a “White Bear/Shelby”
Joseph Marte-Rodríguez, a/k/a “Mato/Matagato”
Miguel A. Arroyo-Andújar, a/k/a “Mawi/Mawiton”
Julio Rodríguez-Febres, a/k/a “Julito/Pai/Líder”
Iron Lee Jorge Colón, a/k/a “Iron/Doble/Doble A”
Jean C. Torres-Meléndez, a/k/a “Yankee/30”
Jorge A. Sánchez-Arizmendi, a/k/a “Georgi/Rubia/OG Black”
Milton Caliel Rodríguez/Medero, a/k/a “Cali”
Saul Ortiz-Ortiz
Héctor Deejay Vega-Collazo, a/k/a “DJ/Dinero”
José Navedo-Ramos, a/k/a “Joshuany/Joshy”
Juan A. Martínez- Martínez, a/k/a “Juancho/Juanchi”
Vicyael Hernández-Díaz, a/k/a “Menor/Vicia/Vic”
Edgar R. López-Pellot, a/k/a “Johnny/Joni”
David Escribano-López, a/k/a “Lobo”
Victor Guadalupe-Gómez, a/k/a “Vitito”
Pedro R. Oquendo-Arrufat, a/k/a “Chuky”
Juan C. Rivera-Esquilín, a/k/a “Cano/C”
Joel Rivera-Molina, a/k/a “Barber”
Camilo Pérez-Marquez, a/k/a “El Boxeador”
Lennyn Santiago-Hernández, a/k/a “Lenny”
Tony R. López-Torres, a/k/a “Sombra”
Francisco Bonilla-García, a/k/a “Cholin”
Ricardo A. Arias-Rivera, a/k/a “Ricky R/Casco/Ricky/Cholón/Jirafa”
John M. Dávila-Martínez, a/k/a “Moña”
Alfred Baliester-Colón, a/k/a “Tuto”
Heriberto Torres-Díaz, a/k/a “Yerno”
Luis E. Díaz-Peguero
Héctor Cuba-Ortiz, a/k/a “Cuba”
Raymond Pizarro-Quintero, a/k/a “Memo”
Francisco Maracayo-Correa, a/k/a “Los Maracayo”
The other defendants are:
Raúl Torres-Santana, a/k/a “Manota
Shaquille Lugo-Nuñez, a/k/a “Lindo”
Bryan Hernández-López, a/k/a “Sweepy/Swepy”
Luis E. Guzmán-González, a/k/a “Chito/Cheeto”
Michael Román-Amador, a/k/a “Huevo/Pipi”
José Robles-Feliciano, a/k/a “Nervio”
Johan J. Rosales-Medero, a/k/a “Johancito”
Terix Zabala-González, a/k/a “Terix/Teri”
Willys J. Torres- González, a/k/a “Hershey”
Chawil Campusano-Vázquez, a/k/a “Chawi/Chewi/Chegüi”
Evaris Naomi García-Camacho
Samuel Torres-Santiago
Jouseph Bermúdez-Matos, a/k/a “Kobe”
Emilio Rodríguez-Arce
Anthony Figueroa-Valladares, a/k/a “Farru/Farruko”
Rayden Oneill-Díaz, a/k/a “R/J/Raiden”
Eduardo Benítez-Meléndez, a/k/a “Yambele”
Carlos R. Miró-Pagán, a/k/a “Farru”
Victor Maracayo-Correa, a/k/a “Maca/Los Maracayo/M”
Alexander Schroeder-Montañez, a/k/a “Blanquito”
Noah Martínez, a/k/a “Gringo”
Benjamín Rivera-Castro, a/k/a “Benji”
Roberto Ramos-Carrasquillo, a/k/a “Popi”
María Santiago-González
Assistant U.S. Attorney and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Tereza Zapata-Valladares, and AUSA Pedro Casablanca are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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30 March 2021
Winslow Man Pleads Guilty to Social Security FraudRead the Press Release
BANGOR, Maine: A Winslow man pleaded guilty today in federal court to Social Security fraud, Acting U.S. Attorney Donald E. Clark announced.
According to court records, Robert Curtis, 63, was a recipient of Social Security Disability Insurance (SSDI) benefit payments beginning in February 2011. SSDI benefits are paid to people who are blind or disabled. He also was a recipient of MaineCare coverage beginning in April 2010 and Supplemental Nutrition Assistance Program (SNAP) benefit payments beginning in February 2011. These programs have reporting requirements for work activity and income, which can affect eligibility for benefits.
During the time he was receiving benefits under these programs, Curtis worked as a medication deliverer. He also served as the lead plaintiff in a civil suit for lost wages, alleging that he should have been classified as an employee instead of an independent contractor, for which he was awarded over $21,000. Curtis failed to inform the Social Security Administration (SSA) or the Maine Department of Health & Human Services (ME/DHHS) of his work activity and income, despite periodic reminders that he was required to report it. He also denied any such activity to SSA in a continuing disability review in 2013, and to ME/DHHS in annual reviews from 2011 to 2017, because he knew it could affect his eligibility for benefits. As a result, he improperly received over $92,000 in SSDI benefits, almost $12,000 in SNAP benefits, and over $13,000 in MaineCare benefits.
Curtis faces up to 10 years in prison and a fine of up to $250,000, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
SSA’s Office of the Inspector General and ME/DHHS investigated the case.
Williston Man Charged with Distribution of Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Gregory Lewis, 25, of Williston, Vermont, was arrested yesterday on charges that he distributed cocaine base in January and February of 2021. Lewis is scheduled to appear remotely this afternoon for an initial appearance before the Hon. Kevin J. Doyle, United States Magistrate Judge.
According to court records, law enforcement utilized a confidential informant to purchase approximately one ounce of crack cocaine from Lewis on two separate occasions in early 2021. On March 29, 2021, law enforcement executed search warrants on Lewis’ residence in Williston and a storage unit in South Burlington, Vermont linked to Lewis. During the searches, agents seized over $20,000 of suspected drug proceeds, three handguns, a rifle, and ammunition. One of the handguns, a Glock Model 45 pistol, had previously been reported stolen. During the search, Lewis was arrested in the bathroom of his residence, near a backpack with plastic packaging containing suspected cocaine residue. Suspected cocaine residue was also found near the toilet. In a post-arrest interview, Lewis admitted to agents that during the execution of the warrant, he had flushed over 700 grams of cocaine down the toilet.
The United States Attorney emphasizes that the charges against Lewis are merely accusations and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offenses, Lewis could face up to twenty years in prison, up to a $1,000,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Lewis’ personal history and characteristics.
This case is being investigated by the Drug Enforcement Administration, the Burlington Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Vermont State Police.
Acting United States Attorney Jonathan A. Ophardt is prosecuting the case for the government. The Federal Public Defender’s Office is representing Lewis.
Washington State Man Pleads Guilty After Traveling Across State Lines for Sex with a MinorRead the Press Release
EUGENE, Ore.—A Vancouver, Washington man pleaded guilty today to sending sexually explicit emails and text messages to an undercover law enforcement officer posing online as a 13-year-old girl, announced Acting U.S. Attorney Scott Erik Asphaug.
Daniel Lee Baldie, 34, pleaded guilty to attempted coercion and enticement of a minor.
According to court documents, in January and February 2020, Baldie sent emails and text messages to a Benton County Sheriff’s Office deputy posing online as a 13-year-old girl. Baldie’s emails included requests for a nude photo and descriptions of sexual acts he could engage in with the child. Baldie also sent the deputy a photo of his genitals. As part of the email and text message exchange, Baldie arranged to meet the purported child and bring her back to his residence in Vancouver for a sexual encounter.
On February 7, 2020, law enforcement officers followed Baldie from his residence to a meeting location in Corvallis where he was arrested. Baldie admitted he intended to meet the child and take her back to his residence as planned.
On February 11, 2020, Baldie was charged by criminal complaint with traveling with intent to engage in illicit sexual conduct, attempted production of child pornography, and coercion and enticement.
Baldie faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence, a $250,000 fine, and a life term of supervised release. He will be sentenced on July 8, 2021 before U.S. District Court Judge Ann Aiken.
Under the Sex Offender Registration and Notification Act, Baldie will be required to register as a sex offender in any state in which he resides.
This case was investigated by the Benton County Sheriff’s Office and the FBI. It is being prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Settles Housing Discrimination Lawsuit Against Staten Island Rental Agent and Real Estate AgencyRead the Press Release
BROOKLYN – Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and Pamela S. Karlan, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Rights Division, announced today a settlement with Village Realty of Staten Island Ltd. and Denis Donovan, a sales and former rental agent at Village Realty, to resolve a lawsuit filed last year alleging discrimination against African Americans in violation of the Fair Housing Act.
The settlement resolves claims that Donovan discriminated against prospective renters on the basis of race by treating African Americans who inquired about available rental units less favorably than similarly-situated white persons, and that Village Realty is legally responsible for Donovan’s alleged discrimination because he was acting as Village Realty’s agent. The lawsuit was based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices. According to the complaint, Donovan allegedly told African-American testers about fewer rental units than white testers, offered white testers rental discounts and opportunities to inspect units that were not offered to African-American testers, generally offered African-American testers units only in racially mixed neighborhoods while offering white testers units in both overwhelmingly white and racially mixed neighborhoods, and made more encouraging comments to white testers about available rental units.
“Today's settlement underscores the importance of making housing equally available to all residents of this district, regardless of race," stated Acting U.S. Attorney Lesko. “This Office is committed to ending racial discrimination and to achieving fairness and equality in housing.”
“For 30 years – since its establishment in 1991 – the Fair Housing Testing Program has played a critical role in helping the Department of Justice root out discrimination that might otherwise go undetected,” said Principal Deputy Assistant Attorney General Karlan. “Today’s settlement reflects the Department’s continued commitment to uncover and eliminate discrimination in all forms and to ensure equal access to housing regardless of race.”
Under the consent decree, the defendants will establish a settlement fund of $15,000 to compensate victims of Donovan’s alleged discriminatory practices and pay a civil penalty of $2,500 to the United States. The agreement prohibits the defendants from engaging in further acts of discrimination and requires them to implement nondiscriminatory standards and procedures, undergo fair housing training, and provide periodic reports to the department.
This case is being handled by Eastern District of New York Assistant U.S. Attorney Rachel G. Balaban, along with Trial Attorney Katherine A. Raimondo of the Civil Rights Division’s Housing and Civil Enforcement Section.
Individuals who believe they may have experienced discrimination at Village Realty should contact the Justice Department toll-free at 1-800-896-7743 or by email at [email protected]. Individuals may be entitled to relief from the settlement fund if they (1) are African American; (2) visited or called Village Realty to inquire about units available for rent prior to March 31, 2019; and (3) were denied the opportunity to rent a unit or provided untrue or incomplete information about available rental units.
The Civil Rights Division enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the department’s fair housing enforcement can be found at www.justice.gov/fairhousing.
USPS Employee Pleads Guilty to Theft of MailRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, announced that MICHAEL McGUIRK, 36, of Windham, waived his right to be indicted and pleaded guilty today to theft of mail by a postal employee.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, between September 2019 and May 2020, while he was employed as a sales associate at the U.S. Post Office in Columbia, McGuirk stole numerous pieces of mail, including packages and greeting cards that contained gift cards or other items of value. Surveillance camera footage depicted McGuirk in the Columbia Post Office rifling through the mail, concealing mail in his clothing, opening packages and envelopes, and taking cash from the reserve cash register.
McGuirk is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 23, 2021, at which time he faces a maximum term of imprisonment of five years. He is released pending sentencing.
McGuirk resigned from the U.S. Postal Service in May 2020.
This matter is being investigated by the U.S. Postal Service Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Tara E. Levens.
Acting U.S. Attorney Boyle encouraged individuals who believe they are a victim of theft related to this case to file a complaint by calling 888-USPS-OIG, or by visiting https://www.uspsoig.gov/form/file-online-complaint.
USP Hazelton Inmate admits to assault charge, sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timmie Winselle, an inmate at United States Penitentiary Hazelton, West Virginia, has admitted today to assaulting another inmate, Acting United States Attorney Randolph J. Bernard announced.
Winselle, 26, pleaded guilty today to one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” Winselle admitted to using a weapon to assault and injure another inmate in November 2019 in Preston County.
Winselle was sentenced to 24 months of additional incarceration to any sentence he is currently serving.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Two Men Plead Guilty to Fraudulent Scheme to Evade Payroll Taxes and Workers’ Compensation Requirements in Construction IndustryRead the Press Release
Jacksonville, Florida – Gregorio Jose Fuentes-Zelaya (27, Orlando) and Dennis Alexander Barahona (38, Chelsea, MA) have pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit tax fraud. Fuentes-Zelaya has pleaded guilty to five counts of wire fraud and two counts of tax fraud. Barahona has pleaded guilty to one count of wire fraud and one count of tax fraud. Each wire fraud count carries a maximum penalty of 20 years in prison and each tax fraud count carries a maximum penalty of 5 years in prison. The United States also will seek forfeiture of $1,367,625, the approximate amount of proceeds obtained as a result of the wire fraud offenses, as well as funds seized from two bank accounts utilized during the scheme, with balances totaling $230,764. Fuentes-Zelaya and Barahona also owe a total of approximately $5,766,286 in restitution for the tax fraud offenses.
Fuentes-Zelaya is scheduled to be sentenced on May 10, 2021. A sentencing date for Barahona has not yet been scheduled.
According to court documents, Fuentes-Zelaya and Barahona established shell companies that purported to be involved in the construction industry. They obtained workers’ compensation insurance policies in the name of the shell companies to cover a minimal payroll for a few purported employees. They then “rented” the workers’ compensation insurance to work crews who had obtained subcontracts with construction contractors on projects in various Florida counties. Fuentes-Zelaya and Barahona sent the contractors a certificate as “proof” that the work crews had workers’ compensation insurance, as required by Florida law. By sending the certificate, the defendants falsely represented that the work crews worked for their companies. Over the course of the scheme, the Fuentes-Zelaya and Barahona “rented” the certificates to hundreds of work crews.
The contractors issued payroll checks for the workers’ wages to the shell companies and the conspirators cashed these checks, then distributed the cash to the work crews after deducting their fee, which was typically about 6% of the payroll. During the period of the scheme, the conspirators cashed payroll checks totaling approximately $22,793,748, with their fees totaling approximately $1,367,625. Neither the shell companies nor the contractors reported to government authorities the wages that were paid to the workers, nor did they pay either the employees’ or the employers’ portion of payroll taxes – including Social Security, Medicare, and Federal Income tax. According to the IRS, the estimated amount of payroll taxes due on wages totaling $22,793,748 is $5,766,286.
The scheme also facilitated the avoidance of the higher cost of obtaining adequate workers’ compensation insurance for the hundreds of workers on the work crews to whom Fuentes-Zelaya and Barahona “rented” the workers’ compensation insurance. Had workers’ compensation insurance policies been purchased for a payroll totaling $22,793,748, the policy premiums would have totaled about $3,600,000. The policies that Fuentes-Zelaya and Barahona purchased, and then “rented” out, were for estimated payrolls of $80,800 to $100,800. The insurance company issued those policies for premiums ranging from $15,206 to $31,268.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Former Mortuary Technicians of New York City Office of Chief Medical Examiner Charged with Stealing Decedents’ PropertyRead the Press Release
Two criminal complaints were unsealed today in federal court in Brooklyn charging Charles McFadgen and Willie Garcon with access device fraud for using credit and debit cards that belonged to decedents whose bodies were in the care and custody of the New York City Office of Chief Medical Examiner (“OCME”). McFadgen and Garcon were arrested this morning and are scheduled to make their initial appearances this afternoon before United States Magistrate Judge Roanne L. Mann.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the arrests and charges.
“As alleged, the defendants, as mortuary technicians employed by New York City’s OCME, had a solemn duty to care for the bodies of the deceased and treat their personal effects with the utmost respect. Instead, the defendants brazenly pilfered the belongings of the deceased, stole their property and enriched themselves by making unauthorized purchases worth several thousand dollars,” stated Acting United States Attorney Lesko. “These arrests serve as a warning to corrupt city employees that they will be prosecuted and held accountable for their criminal acts and breach of public trust.”
“Government employees, regardless of their position, are supposed to serve their fellow citizens, not steal from them. The alleged behavior of these two former medical examiner office employees stripped families of the dignity they expected to be afforded to their deceased family members, and it broke federal law. Today’s charges serve as a reminder that there are consequences for illegal behavior,” stated FBI Assistant Director-in-Charge Sweeney.
“As representatives of the City's Office of Chief Medical Examiner, these defendants should have provided compassion, dignity, and respect for the deceased New Yorkers they were serving. Instead, they exploited the access of their positions and breached the trust the City placed in them by stealing from the dead, according to the charges. DOI thanks the NYPD, FBI and the U.S. Attorney’s Office for the Eastern District of New York for working together to expose the corruption and bring accountability to this charged conduct. Individuals who have experienced similar issues with theft from deceased loved ones are encouraged to make a report to DOI's Office of Inspector General for OCME at (212) 825-5904,” stated DOI Commissioner Garnett.
Garcon Complaint:
Garcon was employed at the OCME between May 2018 and July 2020 as a forensic mortuary technician. His duties included transporting the bodies of decedents from the location of death to the OCME. Garcon was simultaneously employed by the Burlington County Medical Examiner’s Office from February 2020 to May 21, 2020. In May 2020, Garcon was arrested by state authorities in New Jersey and found in possession of property that belonged to four decedents who died in New York City and whose bodies had been placed in the OCME’s custody. According to the OCME’s records, Garcon was assigned to transport the bodies of three of those decedents and was working as an autopsy technician at the OCME in New York when the body of the fourth decedent arrived there. A subsequent investigation revealed that Garcon made nearly $6,500 in unauthorized purchases, including airline travel from Newark to Fort Lauderdale, Florida, using credit and debit cards that belonged to the four decedents.
McFadgen Complaint:
McFadgen was employed at the OCME as a mortuary technician between October 2003 and July 2016 when he retired. McFadgen admitted to investigators that both during and after his employment at the OCME, he used debit and credit cards that he knew had been stolen. McFadgen made more than $13,500 in unauthorized purchases using debit and credit cards stolen from five decedents whose bodies were in the OCME’s custody.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Special Assistant United States Attorney Virginia Nguyen is in charge of the prosecution.
The Defendants:
CHARLES MCFADGEN
Age: 66
Bronx, New YorkE.D.N.Y. Docket No. 21-MJ-378
WILLIE GARCON
Age: 50
Brooklyn, New YorkE.D.N.Y. Docket No. 21-MJ-379
Three men face federal charges in separate child exploitation casesRead the Press Release
AUGUSTA, GA: Three men face the possibility of substantial terms in federal prison after their indictments stemming from separate child exploitation investigations.
All three men are in custody pending trial following initial appearance hearings in U.S. Magistrate Court, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
Those charged are:
- Jasiri Hutchison, 20, of Bulloch and Liberty counties, is charged with Production of Child Pornography; and, Coercion and Enticement of a Minor to Engage in Sexual Activity. The indictment alleges that in April 2019, in Bulloch and Liberty counties and in the state of Connecticut, Hutchison persuaded a minor victim “to engage in sexually explicit conduct for the purpose of producing a visual depiction.” Homeland Security Investigations (HSI) leads the investigation in the case, and Hutchison also faces charges in the Middle District of Georgia for Possession of Child Pornography.
- William Voss, 38, of Waynesboro, Ga., is charged with Possession of Child Pornography, a charge that upon conviction carries a statutory penalty of up to 20 years in prison. The indictment alleges that in May 2020 in Burke County, Voss possessed child pornography. The Georgia Bureau of Investigation (GBI) leads the investigation in the case.
- Robert Paul Synenberg, 21, of Augusta, is charged with Possession of Child Pornography, a charge that carries upon conviction a statutory penalty of up to 20 years in prison. The FBI leads the investigation in the case, which came to agents’ attention after a cybertip from the National Center for Missing and Exploited Children in November 2020.
“Our law enforcement partners will work relentlessly to protect our most vulnerable citizens from harm and exploitation,” said Acting U.S. Attorney Estes. “These indictments demonstrate the continued success of those efforts.”
“It takes great partnerships from local, state and federal law enforcement agencies, non-government organizations, and the public to make arrests like these,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect children who can’t protect themselves against people who prey on them.”
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation,” said GBI Director Vic Reynolds. We are grateful for the relationships we maintain with our federal partner agencies.”
“Protecting children from exploitation is one of our most important missions, and we will continue to pursue and arrest these violators to ensure their safety,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
HSI, the FBI and GBI are investigating the cases, which are being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Jennifer J. Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Tampa Man Pleads Guilty to Committing Arson During Civil DisturbanceRead the Press Release
Tampa, Florida – Terrance Lee Hester, Jr. (20, Tampa) today pleaded guilty to damaging or destroying by fire a building used in interstate commerce. Hester faces a minimum mandatory sentence of 5 years, and up to 20 years, in federal prison. A sentencing date has not yet been set.
According to court documents, around midnight on May 31, 2020, a protest near a shopping plaza located at 2301 East Fowler Avenue in Tampa devolved into civil unrest, looting, and destruction of property. During this disturbance, the Champs Sports store located in the shopping plaza was set on fire. The building became fully engulfed in fire, resulting in major damage to the building and the loss of property. The estimated loss to the building, the Champs Sports store, and other businesses in the plaza is approximately $1.25 million.
Video footage obtained by investigators revealed that Hester had participated in the civil disturbance and tossed a flaming piece of cloth into the Champs Sports store through a broken window. Fire investigators determined that the fire originated inside the Champs Sports store, and Hester’s act caused or contributed to the cause of the fire.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and Tampa Fire Rescue. It is being prosecuted by Assistant United States Attorney Michael Sinacore.
Statement of Acting U.S. Attorney Rachael A. Honig Regarding Bias-Motivated Violence and Other Civil Rights ViolationsRead the Press Release
NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig and FBI Newark Field Division Special Agent in Charge George M. Crouch Jr., today reiterated federal law enforcement’s commitment to investigating and prosecuting all acts of bias-motivated violence and other deprivations of individuals’ civil rights, including crimes committed on the basis of race, ethnicity, religion, sex, national origin, disability, sexual orientation, or gender identity.
“Some of the darkest hours that we have lived through recently as New Jersey residents have involved the horror of violence based on hate,” Acting U.S. Attorney Honig said. “We have seen anti-Semitic violence in Jersey City and a gender- and race-based attack at the home of a federal judge. Now, we face a rising tide of hatred directed at Asian-Americans. New Jersey is one of the most diverse states in the country, and this kind of hate should find no home here. We urge the community to report hate-based crimes to the FBI and to contact our office’s civil rights hotline with information about discrimination in housing, employment, education, or public accommodations.”
“Hate crimes are not only an attack on an individual, but an entire community,” FBI Special Agent in Charge Crouch said. “Investigating these crimes is one of the FBI’s highest priorities. We will work diligently with our law enforcement partners to protect the rights of all Americans.”
The U.S. Attorney’s Office for the District of New Jersey employs four Assistant U.S. Attorneys dedicated full-time to federal civil rights enforcement: three in the Civil Rights Unit of the Civil Division, and one Senior Civil Rights Counsel in the Criminal Division. The Office works closely in these matters with the Civil Rights Division of the Department of Justice. In the past several years, the Office has brought multiple civil and criminal cases based on federal civil rights laws and has been recognized by the Executive Office of U.S. Attorneys with two Director’s Awards for its work in this area. These Assistant U.S. Attorneys also conduct frequent community outreach, including outreach focused on organizations serving women, people of color, religious groups, and the LBGTQ+ community.
Acting U.S. Attorney Honig and Special Agent in Charge Crouch urged all New Jersey residents to report hate-based crimes to law enforcement. Members of the public who have a civil rights concern or complaint should contact the U.S. Attorney’s Office through its civil rights hotline, which can be reached at 855-281-3339, or by filling out the following form on the Office’s website: /media/1184596/dl?inline. The FBI’s Newark Field office can be reached at (973) 792-3000.
The most recent statistics maintained by the FBI on hate crimes are available here: https://ucr.fbi.gov/hate-crime/2019/hate-crime. Additional resources regarding hate crimes and bias incidents can be found by visiting these links: https://civilrights.justice.gov/#your-rights and https://fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources.
For additional information about the U.S. Attorney’s Office in the District of New Jersey visit: www.justice.gov/usao-nj/.
Southern Illinois Mail Thief Sentenced to PrisonRead the Press Release
A man who repeatedly stole mail from mailboxes in Southern Illinois is heading to prison. Seth W.
Sorensen, 45, was sentenced today to one year and one day in prison and two years of court supervision after his release. Last December, Sorensen pled guilty in federal court to one count of mail theft and two counts of possession of stolen mail.
The federal charges stemmed from three separate incidents that occurred over a four-day stretch in
February 2019. On Feb. 23, 2019, a person in Okawville, Illinois watched as Sorensen drove mailbox to mailbox stealing mail from houses on M&M Lane and R&R Drive. The person immediately reported the incident to the Okawville Police Department, who quickly identified Sorensen as the primary suspect and discovered that he had an active warrant for burglary out of Troy, Illinois.On Feb. 24, 2019, Okawville police went to an apartment where Sorensen was staying and arrested him on the warrant. During the arrest, officers found a trash bag in Sorensen’s possession that contained stolen mail belonging to 26 different victims at 19 different residences in Southern
Illinois. Sorensen spent the remainder of February 24 and February 25 in the Madison County Jail.On Feb. 26, 2019, Sorensen was released from jail. He walked from the jail to an apartment complex on South Morrison Avenue in Collinsville, Illinois, where a resident noticed him peeking into mailboxes. The resident eventually confronted Sorensen and grabbed a pile of stolen mail from his hands. The mail was addressed to multiple people in different units within the complex. At least one of the letters was addressed to the resident herself. After the confrontation, Sorensen fled the area on foot. The resident called the Collinsville Police Department.
A short time later, Collinsville police stopped Sorensen as he was walking. Sorensen identified himself by showing them the discharge paperwork he had received from the Madison County
Jail earlier that morning. Sorensen initially denied looking through any mailboxes at the apartment complex or having any stolen mail in his possession, but the officers noticed mail hanging out of his pocket addressed to individuals on South Chestnut Street – the very street Sorensen was walking down when he was stopped. When asked about the mail in his pocket, Sorensen said he found the mail in the street and intended to return it but did not know where the individuals lived. Collinsville police reminded Sorensen that letters have addresses on them.
Sorensen was arrested that evening after a short investigation.This case was investigated by the Okawville Police Department, the Collinsville Police Department, and the United States Postal Inspection Service. The case was prosecuted by Assistant
United States Attorney Luke J. Weissler.South Sioux City Man Sentenced for Possessing with Intent to Distribute Methamphetamine and FirearmsRead the Press Release
Acting United States Attorney Jan Sharp announced that Pedro Valdovinos, age 23, of South Sioux City, Nebraska, was sentenced on March 29, 2021, in federal court in Omaha, Nebraska, after having pled guilty to Possessing with Intent to Distribute Methamphetamine and Possessing Firearms in Relation to a Drug Trafficking Crime. Senior United States District Court Judge Joseph F. Bataillon sentenced Valdovinos to 138 months’ imprisonment. After completing his term of imprisonment, Valdovinos will be required to serve a 5-year term of supervised release as there is no parole in the federal system. Valdovinos also lost any right or claim to the U.S. currency seized during the investigation.
In June of 2019, a cooperating witness bought methamphetamine from Valdovinos inside of his South Sioux City residence with the total being more than 50 grams.
On August 5, 2019, officers executed a Federal search warrant on Valdovinos’s residence. During the initial entry, Valdovinos and co-defendant Leagsaidh Hargreaves were located inside the residence in a basement bedroom closet with a handgun by their feet. A search of the residence revealed approximately 140 grams of methamphetamine, over $35,000 in U.S. currency, and three additional handguns found next to the methamphetamine.
Valdovinos and Hargreaves were arrested and interviewed. Valdovinos took full responsibility for the methamphetamine and the firearms that were located inside of the residence. Hargreaves initially denied any knowledge or involvement but has since pleaded guilty to lying to law enforcement officers. Hargreaves is scheduled for sentencing on May 17, 2021.
This case was investigated by officers of the DEA Sioux City Resident Office.
Six Charged with Bribery Schemes for Official Acts at the Department of Planning and Permitting of the City and County of HonoluluRead the Press Release
HONOLULU, Hawaii – Today, the United District Court for the District of Hawaii unsealed Honest Services Wire Fraud charges against the following six individuals arising out of schemes in which employees of the Department of Planning and Permitting ("DPP") of the City and County of Honolulu took bribes in exchange for performing official acts at DPP:
• Wayne Inouye, 64, of Honolulu, a former Building Plans Examiner at DPP, in Cr. No. 21-00034 LEK (Indictment);
• Jocelyn Godoy, 58, of Pearl City, an employee of the Data Access and Imaging Branch at DPP, in Cr. No. 21-00036 DKW (Indictment);
• Jason Dadez, 42, of Honolulu, a Building Inspector at DPP, in Cr. No. 21-00037 DKW (Indictment);
• Jennie Javonillo, 71, of Waipahu, a former Building Plans Examiner at DPP, in Cr. No. 21-00038 DKW (Indictment);
• Kanani Padeken, 36, of Kaaawa, a Building Plans Examiner at DPP, in Cr. No. 21-00040 DKW (Information); and
• William Wong, 71, of Honolulu, an architect, in Cr. No. 21-00041 DKW (Information).
The Indictment against Mr. Inouye also charges him with one count of making a false material statement to the government.
Acting U.S. Attorney Judith A. Philips stated, "This Office is committed to prosecuting those who betray the public trust for personal gain with all available resources."
"Our citizens entrust their government with great authority and power. It is our responsibility to the communities we serve to represent them ethically and transparently," said Federal Bureau of Investigation Special Agent in Charge Eli S. Miranda. "The FBI will bring all its resources to bear and vigorously pursue criminals who attempt to defraud the American people and our institutions."
The charges in the Indictments and Informations are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation. The caseis being prosecuted by Assistant U.S. Attorneys Michael Nammar and Craig S. Nolan.
Silver Spring Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paula Xinis sentenced John Michael Raley, age 51, of Silver Spring, Maryland to 10 years in federal prison followed by 10 years of supervised release for possession of child pornography. Raley was ordered to pay $9,000 in restitution. Judge Xinis also ordered that, upon his release from prison, Raley must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, in 2012 Raley was convicted in U.S. District Court in Maryland of one count each of distribution and possession of child pornography. Raley was sentenced to seven years in federal prison, followed by 10 years of supervised release. Raley was released from the custody of the Bureau of Prisons on February 15, 2019.
On March 27, 2019, during the administration of a court-ordered polygraph, Raley admitted that after he was released from the custody of the Bureau of Prisons, he obtained his personal effects from another individual to whom he had entrusted the effects during his imprisonment. Raley admitted that among the effects was a secure digital memory card (SD card). Raley had purchased an SD card adapter to plug into his television in order to allow him to view the contents of the SD card on the television at his home in Maryland. Raley admitted that the SD card contained images and videos of child pornography, which Raley had viewed three to four times since his release from prison.
Raley then spoke with his U.S. Probation Officer by telephone in the presence of the polygraph examiner and admitted the same conduct. The Officer advised Raley to go to his home, where the Probation officer met him and confiscated the SD card. A federal search warrant was obtained for the card and a forensic examination was performed by an FBI examiner. The memory card contained thousands of images of child pornography, including boys under the age of 12 and depictions of sadistic conduct and violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Timothy F. Hagan, Jr. who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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San Felipe Pueblo man pleads guilty to two counts of assault with a dangerous weaponRead the Press Release
ALBUQUERQUE, N.M. – Emery Garcia, 36, of the San Felipe Pueblo, pleaded guilty in federal court on March 29 to two counts of assault with a dangerous weapon in Indian Country.
A grand jury indicted Garcia on Nov. 17, 2020. In his plea agreement, Garcia admitted to committing the offense on the San Felipe Pueblo in Sandoval County, New Mexico, on Oct. 8, 2020, assaulting John Doe 1 and John Doe 2 with a board, specifically a piece of 2x4 lumber, with the intent to do bodily harm. Garcia attempted to enter a home through a window and attacked John Doe 1, a minor, with the board when John Doe 1 tried to stop Garcia. Garcia then struck John Doe 2, who attempted to intervene.
Garcia is currently in custody pending sentencing. He faces five to seven years in prison.
The FBI investigated this case with assistance from the Bureau of Indian Affairs. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Russian national and engineering company admit guilt in scheme to evade U.S. national security trade sanctionsRead the Press Release
SAVANNAH, GA: A Russian national and his engineering company have admitted to charges that they violated U.S. national security laws.
Oleg Vladislavovich Nikitin, general director of KS Engineering (KSE), a St. Petersburg, Russia-based energy company, pled guilty in U.S. District Court to conspiracy to evade U.S. export regulations and to defraud the United States, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charge was brought in a third superseding indictment, USA v. World Mining and Oil Supply et. al, alleging Nikitin and his co-defendants conspired to violate the International Emergency Economic Powers Act (IEEPA) and the Export Control Reform Act of 2018 (ECRA).
As a result of the plea entered before U.S. District Court Judge R. Stan Baker, Nikitin faces up to five years in federal prison and substantial fines and forfeitures, followed by up to three years of supervised release.
“Oleg Nikitin attempted to evade trade sanctions designed to protect the United States from illegal acquisition of industrial equipment by non-aligned powers,” said Acting U.S. Attorney Estes. “We will maximize the use of our nation’s resources to vigorously defend against those who threaten our national security.”
As described in court documents and testimony, Nikitin and KSE admitted conspiring with others to evade U.S. trade sanctions that prohibited export of equipment that could make “a significant contribution to the military potential or nuclear proliferation of other nations, or that could be detrimental to the foreign police or national security of the United States.”
The conspiracy began when an unnamed Russian government-controlled business contracted with Nikitin and KSE to purchase a power turbine from a U.S.-based manufacturer for approximately $17.3 million. The Russian company intended to use the turbine on a Russian Arctic deepwater drilling platform, expressly prohibited by the U.S. Department of Commerce without first obtaining a license.
Nikitin admitted that he and another KSE employee, Anton Cheremukhin, conspired with Gabrielle Villone and his Italian-based company, GVA International Oil and Gas Services (GVA); and GVA employee Bruno Caparini, to obtain the turbine on their behalf. Villone, Caprini and GVA then employed the services of Dali Bagrou and World Mining and Oil Supply (WMO) of Dacula, Ga., to procure the turbine from a U.S.-based manufacturer and to have the turbine shipped overseas. The parties conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated it would be used by a U.S. company in and around Atlanta.
Nikitin, Villone, and Bagrou were all arrested in Savannah, Ga., while attempting to complete the illegal transaction. Villone was sentenced in June 2020 to 28 months in prison after pleading guilty to the conspiracy. Bagrou remains in custody pending further legal action, and is considered innocent unless and until found guilty in court.
“Special Agents of the Bureau of Industry and Security’s Office of Export Enforcement (OEE) are committed to bringing sanctions violators, who have willfully chosen to threaten our nation’s security, to justice,” said Ariel Joshua Leinwand, Special Agent in Charge of OEE’s Miami Field Office. “These guilty pleas represent the results of an intensive and collaborative approach with our law enforcement partners to vigorously enforce our nation’s export control laws.”
“The illegal export of technology poses a great danger to the United States,” said Special Agent in Charge, Cynthia A. Bruce, DCIS Southeast Field Office. “DCIS and our investigative partners will aggressively pursue and bring to justice those who threaten our national security.”
“This was a methodical plan by Nikitin and his partners to undercut United States sanctions and put our goods in the hands of actors that are a direct threat to our national security,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Today’s plea doesn’t mean our work is done. The FBI and our partners will always make threats to our national security a top priority.”
“U.S. Customs and Border Protection takes great pride in working with our partner government agencies to vigorously enforce U.S. export control laws as part of our overall duties and responsibilities in protecting and preserving our national security,” said Henry DeBlock, Area Port Director for CBP Savannah.
The Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, as well as the Defense Criminal Investigative Service and the Federal Bureau of Investigation are investigating the case with assistance from the Georgia Department of Natural Resources and Customs and Border Protection. Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee are prosecuting the case with Trial Attorney William A. Mackie of the National Security Division’s Counterintelligence and Export Control Section.
Restaurant Owners Plead Guilty to Harboring Undocumented WorkersRead the Press Release
Jacksonville, Florida – Ji Lin Qiu (44) and Gui Zhen Yang (37), both of Palm Coast, have pleaded guilty to offenses related to their employment of undocumented aliens at their restaurants. Qiu has pleaded guilty to harboring undocumented aliens for commercial advantage and private financial gain and faces a maximum penalty of 10 years in federal prison. Yang has pleaded guilty to establishing a commercial enterprise for the purpose of evading United States Immigration laws and she faces a maximum penalty of 5 years in federal prison. As part of his plea agreement, Qiu agreed to forfeit a residence in Palm Coast, a 2013 Toyota Sienna van, a 2019 Honda Odyssey van, and a 2020 Honda Odyssey van. A sentencing date has not yet been scheduled.
Qiu and Yang had been indicted on September 14, 2020.
According to court documents, Qiu and Yang, a married couple, owned and operated the Red Bowl restaurant on Bartram Park Boulevard in Jacksonville, the Red Bowl Poké & Hibachi restaurant on Crosshill Boulevard in Jacksonville, and the Fancy Sushi & Grill restaurant on East Highway 100 in Palm Coast. At the restaurants, they employed aliens who were unlawfully present in the United States and who were not legally authorized to work in the United States. Contrary to federal law, they did not require the workers to provide documents to establish that they could legally work in the United States.
Qiu and Yang also owned or rented three residences, each of which was near one of the restaurants. At the residences, they provided rent-free housing to the undocumented workers. They also provided the workers with transportation between the houses and the restaurants. Qiu and Yang paid the workers in cash, did not withhold taxes and other payments from the workers’ wages, and did not pay the employer’s portion of these taxes to government authorities. They also did not report the workers to state revenue authorities as required under Florida law to ensure the collection of the proper amount of unemployment compensation tax.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Reign of Violence and Drug Distribution Orchestrated from Tennessee Prison Results in Federal IndictmentsRead the Press Release
Nashville, Tenn. - March 30, 2021 - A federal indictment unsealed Friday charged 27 individuals with a host of federal crimes relating to a large scale conspiracy to distribute heroin, methamphetamine, fentanyl and cocaine, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. Eight others were charged in separate indictments last week and two other individuals had previously been charged. The conspiracy has been ongoing since as early as 2018 and was orchestrated from within the Tennessee State Prison system by Humberto Morales, aka Pelon, 29, of Columbia, Tennessee, who has been incarcerated since 2014. Other charges resulting from this investigation include kidnapping, money laundering, making threats by electronic communication, and firearms violations.
The Tennessee Department of Correction (TDOC) previously sought the assistance of federal law enforcement to address criminal activity occurring within the prison system.
The resulting indictments and other court documents allege that the organization had ties to MS-13, Sur-13, and other street gangs and distributed tens of thousands of fentanyl-laced pills; multiple kilograms of fentanyl and heroin; over fifty pounds of methamphetamine, which was often 95-99 percent pure (commonly referred to as “ice”); as well as smaller quantities of cocaine and marijuana. Court documents also allege that this well-orchestrated conspiracy is linked to at least one murder, horrific assaults, and multiple other crimes of violence.
Morales is alleged to have been the leader of the organization and routinely obtained contraband cell phones which were smuggled into the prison facilities where he was housed. Morales used these phones and encrypted communication services such as WhatsApp to orchestrate activities of the drug distribution network, order acts of violence against individuals, and to direct the flow of cash from drug sales between middle Tennessee and Mexico. Drug proceeds were also used to pay co-conspirators, to pay for drug shipment expenses, bail and legal services, and to purchase firearms.
Notable acts of violence associated with the conspiracy include the severing of a woman’s hand in November 2019, as punishment for losing drug proceeds. During this incident, the woman was kidnapped, driven around Nashville, and then a hatchet was used to chop off one of her hands, before leaving her lying on the street. This incident was recorded on video and sent via encrypted communication on a cell phone. Another incident involved a hitman for the organization who, at the direction of Morales, cut off part of his own pinky finger to prove his continued loyalty to the organization after he lost or stole a small quantity of drugs.
The indictment also charges Morales and Kim Birdsong, 49, of Nashville, with using facilities of interstate commerce (cellular telephones and encrypted messaging services) in an effort to murder a person known as “Pancho”/”Mekaniko,” and that cash, drugs, and the cancellation of a pre-existing drug-related debt were to be provided as payment for that murder. That person was then shot multiple times on April 4, 2019, in Nashville, but survived.
As a result of this investigation, law enforcement seized more than $160,000 in cash drug proceeds and multiple firearms, including a handgun which had been illegally modified to operate as a machinegun, and an operational firearm silencer.
Many of the defendants were charged by criminal complaint as the investigation progressed and have been in custody awaiting indictment. Others were arrested Friday and are in federal custody. Two others are fugitives, including Morales’ girlfriend, Erika Vasquez, 32, aka Chula, of Memphis and Columbia, Tenn., and Magdiel Pina Ramirez, aka Big Show, 28, of Mexico. Ramirez is the person described above who served as a hitman in Mexico and cut off part of his own finger. Both are currently believed to be in Mexico.
Others charged in this investigation are: Jose Juan Alvarado, 44; Oscar Avelar Anguiano, aka Chucky, 33; Grecia Barrios, 33; Kim Lamont Birdsong, aka Bird, 49; Jennifer Cano, 33; Ricardo Davalos-Martinez, 28; Mario Garcia Flores, aka Christhian Colmenares-Ruiz, 33; Jonhy Fernando Jimenez, 38; Antonio Sanchez-Lopez, 23; Jennifer Montejo, 33; Korrine Parker, 43; Luis Ramirez Escudero, 27; Phillip Christopher Smith, aka Felipe, 41; Sinquan D. Smith, 27, all of Nashville; Avigael Cruz, aka Traviesio, 29; Billy Cruz, aka Pee Wee 26; Kevin Oliva-Hernandez, 31; Jairo Rostran, aka Poffi, 28, all of Smyrna, Tenn.; Rico Gross, 38; Armando Lopez, aka Mando, 40; Jesse Sanchez, aka Papi, aka Bori, 31, all of Goodlettsville, Tenn.; Jacob Lee, aka Grenas, 25; Justin Blake Lee, aka Chino, 26; Jasmine Tayor, 26, all of Manchester, Tenn.; Kevin Tidwell, aka Miklo, 27; Melinda Tidwell, both of Ashland City, Tenn.; Terrance Marquette Bobo, 28, of Memphis, Tenn.; Pearline Neal, 31, of Gallatin, Tenn.; Austin Dodd, 25, aka Chucky, of Chapmansboro, Tenn.; Tiffany Messick, 27, of Shelbyville, Tenn.; Stacy Owens, 31, of Decaturville, Tenn.; Zenaida Cano, 42; of Phoenix, Arizona; David Ku, 45, of Inglewood, California; and Gerson Jimenez-Garcia, 38, of Honduras.
Jennifer Montejo, charged in the conspiracy in December 2019, was sentenced on Friday to 25 years in prison. Montejo was arrested at a Nashville bus station as she returned from California after travelling to Los Angeles days earlier. At the time of her arrest, four kilograms of fentanyl, and a kilogram of heroin were discovered in Montejo’s luggage. She pleaded guilty in November 2020.
Acting U.S. Attorney Mary Jane Stewart praised the tremendous efforts of the law enforcement agencies involved in this extensive investigation and noted the unparalleled cooperation between the agencies and the significant resources contributed by the Tennessee Department of Correction and its desire to reduce criminal activity by its inmates.
This multi-year Organized Crime and Drug Enforcement Task Force investigation is being conducted by numerous federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms & Explosives; Homeland Security Investigations; IRS Criminal Investigations; U.S. Postal Inspection Service; FBI; Tennessee Department of Corrections-Office of Investigations & Compliance; and others.
If convicted, most defendants face a minimum of 10 years in prison and many face up to life in prison.
All defendants not previously convicted are presumed innocent until proven guilty in a court of law.
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Reality Show Cast Members Charged with Running Nationwide Telemarketing Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a Superseding Indictment charging JENNIFER SHAH and STUART SMITH with conspiracy to commit wire fraud in connection with telemarketing and conspiracy to commit money laundering. The case has been assigned to United States District Judge Sidney H. Stein.
SHAH and SMITH were arrested earlier today and will be presented this afternoon in Salt Lake City federal court before United States Magistrate Judge Dustin Pead.
Manhattan U.S. Attorney Audrey Strauss said: “Jennifer Shah, who portrays herself as a wealthy and successful businessperson on ‘reality’ television, and Stuart Smith, who is portrayed as Shah’s ‘first assistant,’ allegedly generated and sold ‘lead lists’ of innocent individuals for other members of their scheme to repeatedly scam. In actual reality and as alleged, the so-called business opportunities pushed on the victims by Shah, Smith, and their co-conspirators were just fraudulent schemes, motivated by greed, to steal victims’ money. Now, these defendants face time in prison for their alleged crimes.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Shah and Smith flaunted their lavish lifestyle to the public as a symbol of their ‘success.’ In reality, they allegedly built their opulent lifestyle at the expense of vulnerable, often elderly, working-class people. As alleged, disturbingly, Shah and Smith objectified their very real human victims as ‘leads’ to be bought and sold, offering their personal information for sale to other members of their fraud ring. Working with our partners at the NYPD and the United States Attorney’s Office, SDNY, and with the assistance of HSI Salt Lake City, HSI New York worked to ensure that Shah and Smith will answer for their alleged crimes. As a result, their new reality may very well turn out differently than they expected.”
NYPD Commissioner Dermot Shea said: “These individuals allegedly targeted and defrauded hundreds of victims but thanks to the hard work of the NYPD and our law enforcement partners, this illegal scheme was brought to an end. I congratulate the NYPD detectives, Homeland Security Investigations, and the U.S. Attorney for the Southern District of New York for their hard work in bringing these persons to justice.”
According to the allegations in the Superseding Indictment[1]:
From 2012 until March 2021, JENNIFER SHAH and STUART SMITH, together with others (collectively, the “Participants”) carried out a wide-ranging telemarketing scheme that defrauded hundreds of victims (the “Victims”) throughout the United States, many of whom were over age 55, by selling those Victims so-called “business services” in connection with the Victims’ purported online businesses (the “Business Opportunity Scheme”).
In order to perpetrate the Business Opportunity Scheme, Participants, including SHAH and SMITH, engaged in a widespread, coordinated effort to traffic in lists of potential victims, or “leads,” many of whom had previously made an initial investment to create an online business with other Participants in the Scheme. Leads were initially generated by sales floors operating in, among other places, Arizona, Nevada, and Utah. The owners and operators of those sales floors operated in coordination with several telemarketing sales floors in the New York and New Jersey area, including in Manhattan, and provided lead lists and assistance in fighting Victim refund requests to other Participants operating those floors.
SHAH and SMITH, among other things, generated and sold leads to other Participants for use by their telemarketing sales floors with the knowledge that the individuals they had identified as “leads” would be defrauded by the other Participants. SHAH and SMITH received as profit a share of the fraudulent revenue per the terms of their agreement with those Participants. SHAH and SMITH often controlled each aspect of the frauds perpetrated by other Participants on the individuals they had identified by, among other things, determining which “coaching” sales floor could buy leads from them, selecting the downstream sales floors to which the “coaching” sales floor was permitted to pass the leads, choosing the firms to provide “fulfillment” services, that is, documents and records purporting to demonstrate that the services the Participants claimed to provide to those Victims were actual and legitimate, setting how much the downstream sales floors could charge, and determining which “products” each of the downstream sales floors could sell.
To perpetrate the Business Opportunity Scheme, certain of the Participants sold alleged services purporting to make the management of Victims’ businesses more efficient or profitable, including tax preparation or website design services, notwithstanding that many Victims were elderly and did not own a computer. At the outset of the Business Opportunity Scheme, certain Participants employed by a purported fulfillment company sent a given Victim electronic or paper pamphlets or provided so-called “coaching sessions” regarding these purported online businesses, but at no point did the defendants intend that the Victims would actually earn any of the promised return on their intended investment, nor did the Victims actually earn any such returns.
SHAH and SMITH undertook significant efforts to conceal their roles in the Business Opportunity Scheme. For example, SHAH and SMITH, among other things, incorporated their business entities using third parties’ names and instructed other Participants to do the same, used and directed others to use encrypted messaging applications to communicate with other Participants, instructed other Participants to send SHAH’s and SMITH’s shares of certain fraud proceeds to offshore bank accounts, and made numerous cash withdrawals structured to avoid currency transaction reporting requirements.
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SHAH, 47, of Park City, Utah, and SMITH, 43, of Lehi, Utah, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing through which they victimized 10 or more persons over the age of 55, which carries a maximum sentence of 30 years, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of HSI’s El Dorado Task Force and the NYPD. Ms. Strauss also thanked HSI Utah and the United States Attorney’s Office for the District of Utah for their support and assistance in this investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Benet J. Kearney, and Robert B. Sobelman are in charge of the prosecution.
If you believe you have been a victim of the scheme described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or [email protected]. You may also report it to Detective Christopher Bastos at 917-480-7167 or [email protected].
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Rapid City Woman Found Guilty of Theft of Government Property and FraudRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Holli Lundahl, a/k/a Holli Telford, age 64, of Rapid City, South Dakota, was found guilty of Theft of Government Property and Supplemental Security Income Benefits Fraud following a federal jury trial in Rapid City, South Dakota. The verdict was returned on March 25, 2021.
The Theft of Government Property charge carries a maximum penalty of 10 years in prison and/or a $250,000 fine, and 3 years of supervised release. The Supplemental Security Income Benefits Fraud charge carries a maximum penalty of 5 years in prison and/or a $250,000 fine, and 3 years of supervised release. Each charge also carries a $100 special assessment to the Federal Crime Victims Fund and restitution may be ordered.
Evidence at trial established Lundahl knowingly stole and converted to her own use over $40,000 worth of Social Security Administration Title XVI Social Security Supplemental Income payments between 2014 and 2019. The evidence showed Lundahl received and kept the payments, even though she was not entitled to them, because she owned property and had resources far in excess of the limits permissible for Title XVI beneficiaries. In order to continue to receive the benefits, Lundahl falsely reported, concealed, and failed to disclose to the Social Security Administration extensive property, resources, and assets she held or possessed.
This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Eric Kelderman prosecuted and tried the case.
A presentence investigation was ordered and a sentencing date has not been set. Lundahl remains released on bond pending sentencing.
Queens Man Pleads Guilty to Securities Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Tae Hung Kang, also known as “Kevin Kang,” pleaded guilty before United States Magistrate Judge Peggy Kuo to conspiring to commit securities fraud in connection with a scheme involving foreign exchange trading that targeted members of the Korean-American community. When sentenced, Kang faces up to five years in prison, as well as forfeiture and a fine. Kang has also agreed to pay restitution in the amount of $835,058.32.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today's plea, Kang is held accountable for his fraud and for betraying the trust of the Korean-American community who, believing in Kang's integrity, invested hundreds of thousands of dollars in his company's stock," stated Acting U.S. Attorney Lesko. "This Office is committed to safeguarding the investing public and protecting investors whose hard-earned money has been fraudulently misappropriated.” Mr. Lesko thanked the Federal Bureau of Investigation, New York Field Office, for their investigative work on the case, and the United States Commodities and Futures Trading Commission for their assistance during the investigation.
As set forth in court filings and today’s proceeding, Kang defrauded investors located in the Eastern District of New York and elsewhere in connection with foreign exchange trading which refers to trading one currency for another in an effort to profit from fluctuating exchange rates. Kang enticed investors to invest their money into stock issued by his company, Safety Capital Management, Inc. (“Safety Capital”), which did business as FOREXNPOWER. The investors were told their investments would be pooled by Kang and others to conduct foreign exchange trading, or to expand the FOREXNPOWER business. Kang falsely promised investors outsized returns at minimal risk. Ultimately, nearly all of the money that was invested in Safety Capital stock was misappropriated by Kang and his co-conspirators. Kang used some of the money stolen from clients to pay for advertisements targeting additional investors and promoting FOREXNPOWER’s outsized trading returns based on a algorithmic trading method that did not actually exist. Kang’s co-defendant John Won is awaiting trial.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Julia Nestor, Lauren Howard Elbert, Mathew S. Miller and Trial Attorney Gerald M. Moody, Jr., of the Criminal Division’s Fraud Section, are in charge of the prosecution.
The Defendant:
TAE HUNG KANG (also known as “Kevin Kang”)
Age: 57
Bayside, New YorkE.D.N.Y. Docket No. 18-CR-184 (RJD)
Providence Man Indicted on Charge of Illegal Possession of a FirearmRead the Press Release
BOSTON – A Providence man was indicted today by a federal grand jury in Boston in connection with being a felon in possession of a firearm and ammunition.
Roland S. Morgan, 37, was indicted on one count of being a felon in possession of a firearm and ammunition. On March 11, 2021, Morgan was charged by criminal complaint and arrested in Pennsylvania on March 19, 2021. He will make his initial appearance in Boston at a later date.
According to court documents, on Oct. 28, 2020 at approximately 1:00 a.m., a police officer observed a silver Mercedes exiting Interstate 95. The officer noted that the vehicle’s rear license plate was not luminated, a violation of Massachusetts Law. After observing the vehicle make a number of random u-turns, the officer conducted a motor vehicle stop. Morgan was driving the vehicle and was unable to produce a driver’s license. The officer queried Morgan’s identifiers and determined that Morgan had two outstanding arrest warrants issued by Attleboro District Court. Morgan was then removed from his vehicle and booked on the outstanding warrants.
As alleged in court documents, during a search of Morgan’s vehicle, a loaded .38 caliber Smith and Wesson revolver, 43 rounds of .38 caliber ammunition, 10 steel tipped arrows, an orange hunting bow, narcotics, a BB gun and a tan body armor vest were recovered.
Morgan is prohibited from possessing a firearm or ammunition due to prior felony convictions.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Seekonk Police Chief Dean Isabella; and Thomas M. Quinn, Bristol County District Attorney made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Prison healthcare company agrees to $215,000 settlement relating to Controlled Substances Act claimsRead the Press Release
ALBUQUERQUE, N.M. – Acting U.S. Attorney for the District of New Mexico Fred J. Federici has announced that Centurion Correctional Healthcare New Mexico has agreed to a $215,000 settlement relating to civil claims brought by the Department of Justice on behalf of the United States Drug Enforcement Administration (DEA).
Centurion provides healthcare in prisons in several states. For each facility where Centurion provides healthcare, the DEA issues a registration authorizing Centurion to purchase and distribute controlled substances under the Controlled Substances Act (CSA).
At issue in the civil claim was activity relating to Centurion’s registration for Northeast New Mexico Detention Facility (NENMDF), which expired on October 31, 2019. In its claim, the government contended that Centurion continued to acquire and dispense controlled substances after the expiration of the authorization granted through Centurion’s DEA registration at NENMDF. This activity allegedly continued through November 25, 2019, when another company assumed care for inmates at the facility.
The government also contended that Centurion abandoned its remaining stock of controlled substances and failed to maintain proper records for controlled substances in violation of the terms of the CSA.
By the terms of the settlement, Centurion agrees to pay $215,000 and the government, upon receipt of the settlement amount, releases Centurion from any civil or administrative monetary claim the United States has for the covered conduct under the CSA. Centurion admits no liability or wrongdoing.
“This settlement strengthens our enforcements efforts with regards to the Controlled Substances Act,” said Acting U.S. Attorney Federici. “The Office of the U.S. Attorney plays a vital role in upholding accountability among those authorized by the government to dispense controlled substances. Such authorization conveys a substantial level of trust, and that trust can only be maintained through strict compliance.”
“Everyone must do their part to ensure that prescription medications are not misused and abused,” said Kyle W. Williamson, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “The law requires that registrants do so, and DEA will continue to scrutinize and investigate those entities that fail to comply with the rules set forth in the Controlled Substance Act.”
Assistant U.S. Attorney Ruth F. Keegan represented the United States in the settlement agreement.
Postal Service Employee Charged with Stealing MailRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania has been indicted by a federal grand jury on a charge of committing theft as a postal employee, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Chelsea Balmer, age 33, as the sole defendant.
According to the Indictment, on February 19, 2020, Balmer was caught stealing mail matter while working as an employee of the postal service.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of Inspector 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.
Postal Employee Pleads Guilty to Theft of MailRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lower Paxton Postal employee, Candy Ehler, age 51, of Harrisburg, Pennsylvania, pled guilty on March 29, 2021, before U.S. District Court Judge Sylvia H. Rambo to three counts of theft of mail by an employee.
According to Acting United States Attorney Bruce D. Brandler, on August 2, 2019, the United States Postal Service was notified that a medication package had not been received by its intended recipient. A pattern of missing/stolen medication packages containing opioid based controlled substances that required signature confirmation of receipt was confirmed. These packages were attempted to be delivered by the assigned mail carrier, but were returned to the Lower Paxton Post Office due to the intended recipients not being at their residence. Once returned to the Post Office, video surveillance revealed Postal Carrier Ehler, removing three controlled substance medication packages that were not on her primary route. Ehler did not have a request for second delivery attempt, and the intended recipients never received their medication.
The charges stem from an investigation by the United States Postal Service Office of Inspector General and Department of Veteran’s Affairs Office of Inspector General. Assistant United States Attorney Daryl F. Bloom is prosecuting the case.
A sentence following a finding of guilt is imposed by the court after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Ehler is facing a maximum of 15 years of incarceration and a $750,000 fine. Under the Federal Sentencing Guidelines, the court is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Portland Man Sentenced to Federal Prison for Bank Fraud Scheme Involving MinorsRead the Press Release
PORTLAND, Ore.—A Portland, Oregon man was sentenced to federal prison today for a bank fraud scheme whereby he would recruit others, including minors, to deposit fraudulent checks into their personal bank accounts and withdraw cash, announced Acting U.S. Attorney Scott Erik Asphaug.
Marcus Raiford, 22, was sentenced to 12 months and one day in federal prison and five years’ supervised release. He was also ordered to pay $75,681 in restitution.
According to court documents, beginning in August 2017 and continuing until at least September 2018, Raiford and others recruited individuals, primarily minors, young adults, and students at various local high schools, to deposit counterfeit checks at banks and credit unions throughout the Portland Metropolitan Area. Raiford and his accomplices used social media platforms, including Snapchat and Instagram, to recruit the minors and young adults, promising significant cash payments in exchange for their participation in the scheme.
Individuals recruited by Raiford and his accomplices were instructed to open accounts at various banks or use existing accounts to deposit counterfeit checks made payable to the recruits. The recruits were told they worked for a company that held inactive investments and accounts in need of liquidation, thereby concealing the scheme. In some instances, the recruits were told they needed to deposit the counterfeit checks to help the company avoid tax liability.
Raiford and others requested the recruits’ identification, ATM card, and pin number so counterfeit checks could be made payable to them and deposited into their accounts. Raiford and his accomplices then withdrew the money from ATMs or made point of sale purchases with the ATM cards at various commercial businesses. Over the course of the conspiracy, Raiford and his accomplices deposited more than $150,000 in counterfeit checks.
On December 19, 2018, a federal grand jury in Portland returned a 14-count indictment charging Raiford and his accomplices with conspiring to commit bank fraud, bank fraud, and money laundering. On August 26, 2020, Raiford pleaded guilty to the conspiracy charge.
This case was investigated by the Portland Police Bureau with assistance from Homeland Security Investigations and the Vancouver Police Department. It was prosecuted by Rachel K. Sowray, Special Assistant U.S. Attorney for the District of Oregon.
Plymouth Man Sentenced to 151 Months in Prison for Distributing Child PornographyRead the Press Release
Acting United States Attorney W. Anders Folk today announced the sentencing of ALEXZANDER MICHAEL CARNEAL, 29, to 151 months in prison for distributing child pornography. CARNEAL, who pleaded guilty on November 30, 2020, was sentenced today before Judge Susan Richard Nelson in U.S. District Court.
According to the defendant’s guilty plea and documents filed with the court, CARNEAL used GigaTribe to acquire and trade diaper erotica and other sexually explicit content involving minors. On multiple occasions between May and June 2019, CARNEAL exchanged messages with an undercover federal agent. CARNEAL also stated to the undercover agent that he had a large collection of child pornography and diaper content, which CARNEAL made available for distribution.
This case was the result of an investigation conducted by FBI Minneapolis, FBI New York, and the Plymouth Police Department.
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino and former Assistant U.S. Attorney Julie E. Allyn.
Defendant Information:
ALEXZANDER MICHAEL CARNEAL, 29
Plymouth, Minn.
Convicted:
- Distribution of child pornography, 1 count
Sentenced:
- 151 months in prison
- 20 years of supervised release
- Restitution ordered – amount to be determined at a later date
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United States Attorney’s Office, District of Minnesota: (612) 664-5600