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30 March 2021
Pittsburgh Woman Charged with Stealing Mail while Working as a Postal Service EmployeeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA has been indicted by a federal grand jury on a charge of committing theft as a postal employee, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Christa Murray, age 36, as the sole defendant.
According to the Indictment, on December 19, 2019, Murray 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.
Orange County Man Arrested on Criminal Complaint Alleging He Received Illegal Kickbacks from Corrupt Sober Living HomesRead the Press Release
SANTA ANA, California – Special agents with the FBI this morning arrested an Orange County man on federal charges of soliciting and receiving illegal kickbacks from corrupt sober living homes in exchange for finding them new patients in a process known as “body brokering.”
Darius Jarell Moore, 27, of Santa Ana, is charged with one count of solicitation and receipt of payment in return for referring a patient to a recovery home or clinical treatment facility. Moore is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
An affidavit filed with the complaint alleges Moore received hundreds of thousands of dollars in kickbacks from four Orange County facilities with two separate ownership groups via a shell company – Moore Recovery Solutions LLC, a Santa Ana-based business. The kickbacks allegedly were covered up by bogus contracts for “marketing” services.
According to the affidavit, “Patient brokering has created a situation where substance abusers with no desire to stop using drugs are able to gain income from their insurance benefits by periodically participating in treatment programs.…The facilities generally know patient brokers pay patients and give patients drugs, but they maintain deniability by discharging patients who admit they were paid and stopping work with particular patient brokers as soon as such actions become overtly known.”
The complaint specifically alleges that Moore in October 2020 accepted a $16,000 kickback wired to a bank account held in the name of Moore Recovery Solutions from a checking account of a corrupt sober living home. The affidavit further details more than $350,000 in illegal kickbacks that the sober living homes allegedly paid to Moore in exchange for recruiting new patients. The sober living homes then submitted claims to health insurers.
The affidavit also details a recorded conversation between Moore and a sober living home employee discussing the clients Moore had placed into the facility and the cash value of the clients.
In December 2020, investigators executing search warrants at Moore’s residence found marketing agreements between Moore Recovery Solutions and two sober living homes that agreed to pay him $70,000 per month and $10,000 per month, respectively, but no other evidence that Moore’s company was a legitimate marketing service, according to the affidavit.
Investigators also found text messages from patients to Moore asking for money and asking to be placed in treatment. In response, Moore told the patients he would only talk to them through Signal, an encrypted communication application.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Moore would face a statutory maximum sentence of 10 years in federal prison.
This matter was investigated by the FBI, the United States Office of Personnel Management – Office of Inspector General, and the California Department of Insurance.
This case is being prosecuted by Assistant United States Attorney Benjamin R. Barron, Chief of the Santa Ana Branch Office, and DOJ Trial Attorney Justin Givens of the Criminal Division’s Fraud Section.
North Fort Myers Man Sentenced to 14 Years in Federal Prison for Attempting to Entice A Minor to Engage in Sexual Activity and Possessing Child Sexual Abuse Images and VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Frederick Charles Trueblood, Jr. (47, North Fort Myers) to 14 years in federal prison for attempting to coerce and entice a minor to engage in sexual activity and for possessing images and videos depicting the sexual abuse of children. Trueblood was also sentenced to a 10-year concurrent prison term for attempting to transfer obscene material to a minor. In addition, he was ordered to serve a life term of supervised release and to register as a sex offender.
Trueblood had pleaded guilty on October 30, 2020.
According to court documents, FBI agents began an undercover investigation to identify individuals who approach children in online chat rooms to lure them into sexual activity. Between May 13 and 14, 2019, Trueblood sent an unsolicited chat message to an individual whom he believed to be a 13-year-old girl but was actually an undercover agent. During the chat, Trueblood asked the “child” to send him graphic nude images exposing herself to him. Trueblood also sent multiple explicit pictures of himself to the “child.”
On August 23, 2019, FBI agents executed a federal search warrant at Trueblood’s home and seized his computers. During an interview with agents, Trueblood admitted that he had used the chat site “just for sexual fun.” He admitted that quickly after meeting kids on the chat site that he would have sexually explicit conversations with them and that he had sent pictures of his penis to many children on the chat site, and that another chat site had actually banned him for sending such pictures to kids. A subsequent forensic examination of Trueblood’s computers revealed numerous images and videos depicting the sexual abuse of young children that he had been collecting since May 2018.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
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.
New Orleans Man Sentenced for Embezzlement of Union FundsRead the Press Release
NEW ORLEANS, LA – MARK DOUGLAS, age 72, a resident of New Orleans, Louisiana, was sentenced for embezzlement of union funds by the Honorable Greg G. Guidry, announced U.S. Attorney Duane A. Evans. DOUGLAS was sentenced to 24 months of probation and a $100 special assessment. DOUGLAS was also ordered to pay $7,078.35 in restitution to the United Food and Commercial Workers Local 1101.
According to court documents, between November 11, 2011 and January 17, 2015, DOUGLAS acted as President of the United Food and Commercial Workers Local 1101. DOUGLAS was responsible for the local’s grievances with the Domino Sugar Company and running the day to day operations of the union.
Union officers were permitted to file “lost time” claims to be reimbursed for conducting union business. Lost time is generally taken for arbitrations, attorney visits, accountant visits, or negotiations with Domino Sugar Company. During his time as President, DOUGLAS filed fraudulent “lost time” claims with the union, thereby unlawfully obtaining $7,078.35 that he was not entitled to receive.
U.S. Attorney Evans praised the work of the U.S Department of Labor, Office of Labor-Management Standards, in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief, General Crimes.
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Navajo woman pleads guilty to abandonment and abuse of a child resulting in deathRead the Press Release
ALBUQUERQUE, N.M. – Tonya Mae Dale, 28, of the Navajo Nation, NM, pleaded guilty in federal court on March 24 to a charge of involuntary manslaughter in Indian Country.
A grand jury previously returned an indictment against Dale on Sept. 25, 2019. According to the indictment and other court records, Dale committed the offense in San Juan County on or about June 26, 2019. In her plea, Dale admitted to driving while intoxicated with her children in the vehicle, and her intoxication contributed to her vehicle becoming stuck. The next day Dale decided to leave her vehicle and began walking. At some point, she decided to leave her children, a baby and a young child, and seek help on her own. When she returned with assistance to the location she had left her kids, only the baby was still there. The other child had wandered away and was found deceased the next day.
Dale is currently in custody pending sentencing. She faces up to eight years in prison.
The FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
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Middlesex County Man Admits Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Justin D. Spry, 22, of South Plainfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Killian Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.
Melecio pleaded guilty on Jan. 26, 2021, to one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
The charge of attempting to interfere with law enforcement officers during a civil disorder to which Spry and Melecio have pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing for Spry is scheduled for Aug. 3, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations remaining against Kadeem Dockery are merely accusations, and he is presumed innocent unless and until proven guilty.
Michigan Man Pleads Guilty to Federal Hate Crime for Attacking Black TeenagerRead the Press Release
A Michigan man pleaded guilty today to a federal hate crime for attacking a Black teenager.
Lee Mouat, 43, of Newport, willfully caused bodily injury to a Black teenager because of the teenager’s race.
According to the plea agreement, Mouat confronted a group of Black teenagers, including the victim, at a state park in Monroe. Mouat repeatedly used racial slurs and said that Black people had no right to use the public beach where the incident occurred. Mouat then struck one of the teens in the face with a bike lock, knocking out several of the victim’s teeth, lacerating his face and mouth, and fracturing his jaw. Mouat also attempted to strike another Black teenager with the bike lock.
“Hate-fueled incidents like this one have no place in a civilized society,” said Principal Deputy Assistant Attorney General Pamela Karlan for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute violent acts motivated by hate.”
“Our office is committed to protecting the rights of all citizens, and prosecuting hate crimes is a top priority,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “The young victim in this case suffered tremendously from this vicious, racially motivated assault. Every individual citizen has the right to not live in fear of violence or attack based on the color of their skin.”
“Mouat’s hateful and violent conduct, motivated by racial intolerance, was intended to physically harm the victim as well as create fear within the African-American community,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Division. “The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated as a hate crime and the perpetrators will be held responsible for their actions. We encourage anyone who has been the victim of or witness to such a crime to report it to the FBI.”
Mouat will be sentenced at a hearing scheduled for June 24, 2021. He faces a maximum penalty of 10 years in prison, three years of supervised release, and a fine of up to $250,000.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Frances Carlson of the Eastern District of Michigan and Trial Attorney Tara Allison of the Civil Rights Division.
Mexican National Charged with Holding American Citizen Hostage and Drug TraffickingRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss for the District of Delaware, announced today that Luis Raul Castro Valenzuela, aka “Chacho,” was charged with holding a U.S. Citizen, listed in the indictment by his/her initials (hereinafter “the victim”), with kidnapping and with hostage taking. The three-count indictment also alleged that Castro Valenzuela conspired to distribute heroin and fentanyl between March 2017 and November 11, 2020.
U.S. Attorney Weiss said, "The pursuit of justice takes many forms. Few cases illustrate this principle more clearly than this one-where investigators followed a drug operation in Bear, Delaware to King of Prussia, Pennsylvania and then to Sinaloa, Mexico, ultimately leading to the rescue of a U.S. Citizen held hostage by an alleged member of the Sinaloa Cartel. The collaboration between local, state, federal, and Mexican officials in this case is unprecedented and demonstrates what can be accomplished when agencies selflessly work towards a single objective. Finally, I want to express our deep appreciation to the Mexican prosecutors, law enforcement officers, and military personnel for their critical assistance."
“The rescue of this victim is the culmination of an international and multi-jurisdictional drug trafficking and smuggling investigation impacting the people of Delaware and surrounding areas,” stated Brian L. Jones, Resident Agent in Charge of Homeland Security Investigations (HSI). “We are all relieved that this victim has been rescued safely but it also drives home the dangers of narcotics trafficking and the violent behavior of the Mexican drug cartels. Homeland Security Investigations wants to thank our law enforcement partners, domestically and in Mexico, for their dedication to combatting drug trafficking and we will use every resource available to stop the flow of illegal narcotics into the United States.”
Damon Wood, the Postal Inspector in Charge of the Philadelphia Division stated, “This case started with investigators from several different agencies independently pursuing different leads. When they came together, they found themselves investigating a conspiracy to distribute illegal narcotics that stretched from the Philadelphia suburbs, down through Delaware, and into Mexico. I want to commend the hard work of our law enforcement partners from over a dozen agencies who helped develop the charges announced today, not the least of which includes the Mexican authorities, who, as a result of information developed here, rescued a U.S. citizen held against their will in Mexico. Keeping the employees and customers of the Postal Service safe and the mail free from criminal misuse are the primary missions of the Postal Inspection Service. As an agency, we have taken, and will continue to take, aggressive steps to interrupt and investigate those who use the mail to distribute illegal narcotics and launder their proceeds.”
“Today a dangerous criminal is off the streets thanks to a large-scale coordinated effort between our partners in the U.S. and in Mexico,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “In this law enforcement collaboration, not only was a victim being held hostage rescued but more than a million dollars’ worth of illegal drugs was seized. The citizens of Delaware have the FBI’s commitment that we will continue to aggressively investigate criminal organizations that target our communities with their drug-related violent activity and ensure that they are held accountable.”
“While IRS-Criminal Investigation is known for tax investigations, the assistance we provided in this investigation is a reminder that whenever there is a need to follow the money, we are often called upon,” said IRS-CI Special Agent in Charge Thomas Fattorusso. “We are highly skilled at financially disrupting and dismantling drug trafficking organizations. We are proud to have assisted in this investigation; joining forces with our law enforcement partners to hold these individuals accountable.”
“Today’s indictment is a prime example of cooperation among international, federal, state, and local authorities in securing justice for victims,” said Delaware Attorney General Kathy Jennings. “I am thankful for their tireless work, which not only removed a victim from harm’s way, but disrupted a drug trade that has bred so much violence in our communities.”
“Drug dealing is a dangerous and often violent enterprise, and thanks to the hard work and successful collaboration of these agencies, a victim's life was spared,” said Pennsylvania Attorney General Josh Shapiro. “My office will continue to work with local, state, federal, and international authorities to keep Pennsylvanians safe from those who profit from drug trafficking.”
Although the Indictment was obtained in November 2020, it was sealed until the victim was rescued and the defendant was arrested. As reported by Mexican authorities, in February 2021, Mexican law enforcement officers executed multiple warrants in Culiacan, Mexico. The victim was safely recovered and is in good health. Castro Valenzuela was arrested as part of the rescue operation; Mexican authorities have lodged their own charges and allege that he is a member of the Sinaloa Cartel.
The United States is pursuing the extradition of Castro Valenzuela to the District of Delaware so that he may be tried in federal court.
Four individuals were also charged in the District of Delaware with a conspiracy to distribute heroin and fentanyl: Jamar Jackson, aka “Jay”, 37, of Chester, Pennsylvania and Bear, Delaware; Denise Brown, aka “China”, 34, of King of Prussia, Pennsylvania; Harley Douglas, 37, of Bear, Delaware; and Nicole Jackson, 35, of Dover, Delaware. Douglas was also charged with two firearms offenses.
In total, the investigation resulted in the seizure of approximately 7.5 kilograms of heroin and/or fentanyl, 14.5 pounds of methamphetamine, 12 guns, and $180,000. The street value of these drugs easily exceeds $1 million.
The primary investigating agencies in this case are HSI, U.S. Postal Inspection Service, and the FBI. Instrumental assistance was also provided by the IRS Criminal Investigation, U.S. Drug Enforcement Administration, the Delaware State Police, the Pennsylvania State Police, the Newport Police Department, the Elsmere Police Department, the Philadelphia Police Department, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations and the Chester Police Department. The investigation was supported by the Liberty Mid-Atlantic High Intensity Drug Area program (HIDTA), and the Organized Crime Drug Enforcement Task Force (OCDETF). Other prosecutors’ offices who assisted in the investigation include the Delaware Department of Justice, the Montgomery County District Attorney’s Office, as well as other U.S. Attorney’s Offices. The Justice Department’s Office of International Affairs provided significant assistance including support and coordination between Fiscalía General de la República (FGR) of Mexico and U.S. law enforcement. Subprocuraduria Especializada en Investigaciones de Delincuencia Organizada (SEIDO) also provided substantial assistance on this case and was instrumental in locating the victim and arresting Castro Valenzuela.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-CR-00075 (Castro Valenzuela) and Case No. 20-CR-00084 (Jamar Jackson et. al.).
Memphis Man Sentenced to 30 Years for Committing Multiple Armed Business RobberiesRead the Press Release
Memphis, TN – Brandon Guffin, 25, has been sentenced to 360 months in federal prison for committing multiple armed business robberies. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information in presented in court, from December 9, 2018 through December 31, 2108, Guffin committed nine armed robberies of businesses throughout the greater Memphis area. He targeted such businesses as Mapco, Circle K gas stations, Family Dollar and KFC.
On April 25, 2019, a federal grand jury returned an 18-count indictment against Guffin charging him with brandishing a firearm during nine business robberies. Guffin pleaded guilty to 13 counts of the indictment on November 4, 2019.
On March 25, 2021, U.S. District Judge Thomas L. Parker sentenced Guffin to 360 months in federal prison to be followed by five years’ supervised release. There is no parole in the federal system.
This case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on behalf of the government.
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Marrero Man, Convicted in 2006 of Child Pornography Possession, Pleads Guilty Again to Possession of Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRADLEY EDWARD CORLEY, age 46, a resident of Marrero, Louisiana, pleaded guilty today before United States District Judge Jay C. Zainey to Count Two of a two-count Indictment charging him with possession of images and videos depicting the sexual exploitation of children, including children as young as approximately four (4) years old, in violation of 18 U.S.C. 2252(a)(4)(B). In 2006, CORLEY was convicted in the United States District Court for the Eastern District of Louisiana of possession of child pornography.
According to court documents, in about September 2019, Special Agents with the Federal Bureau of Investigation (“FBI”) received a tip that an individual, subsequently determined to be CORLEY, had uploaded approximately seven (7) images depicting the sexual exploitation of children to a digital application and distribution platform designed for video gaming communities. Agents executed a search warrant at CORLEY’s residence in March 2020 and seized several electronic devices that contained files depicting the sexual victimization of children. A forensic examination of several of the devices confirmed that CORLEY had used them to search for, download, and save at least 60,000 images and 1,5000 videos depicting the sexual victimization of children, including by visiting a web forum on June 16, 2019, August 4, 2019, and March 9, 2020. The filed depicted children as young as approximately four (4) years old engaging in sexually explicit conduct, including numerous images and videos that portrayed “sadistic or masochistic conduct or other depictions of violence.”
Because of his prior conviction, if convicted in this matter CORLEY faces a mandatory minimum term of imprisonment of ten (10) years and a maximum term of imprisonment of twenty (20) years for the possession charge. CORLEY also faces a lifetime of supervised release, a $250,000 fine, and he can be required to register as a sex offender. Sentencing has been scheduled before Judge Zainey for June 29, 2021.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, with support from the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Manchester Pair Plead Guilty to Participating in Drug Trafficking ConspiracyRead the Press Release
CONCORD – Jovan Callaghan, 25, and Chrystal Callaghan, 42, of Manchester, pleaded guilty in federal court to conspiracy to distribute, and possess with intent to distribute, fentanyl and crack cocaine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the spring of 2020, investigators received information from confidential sources that Jovan and Chrystal Callaghan and a co-defendant were selling crack cocaine and fentanyl from their residence in Manchester. Law enforcement officers learned that Chrystal Callaghan and a co-conspirator would travel to New York to purchase crack cocaine. On three separate occasions, officers conducted lawful traffic stops of their vehicle returning from New York and seized over 300 grams of crack cocaine. In late 2020, confidential sources conducted six controlled purchases of fentanyl and crack cocaine from the three co-defendants.
On December 24, 2020, investigators executed a search warrant at the residence and seized over one kilogram of fentanyl and a firearm, along with large amounts of cash and drug use and packaging materials.
Jovan and Chrystal Callaghan are scheduled to be sentenced on July 6, 2021.
Charges against a third defendant, Melissa Gazaway, remain pending.
“Drug traffickers endanger our citizens and damage our neighborhoods,” said Acting U.S. Attorney Farley. “We are working closely with our law enforcement partners to identify and prosecute the drug dealers who are peddling fentanyl and other deadly drugs in the Granite State. Thanks to the hard work of our federal, state, and local partners, these individuals will no longer be selling deadly drugs in Manchester.”
This matter was investigated by the Drug Enforcement Administration, the New Hampshire State Police, the Manchester Police Department, and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Manchester Man Indicted for Fentanyl Trafficking and Maintaining a Drug-Involved PremisesRead the Press Release
CONCORD – Michael Cicciu, 41, of Manchester was indicted by a federal grand jury on Monday and charged with one count of possession of fentanyl with intent to distribute and one count of maintaining a drug-involved premises, Acting United States Attorney John J. Farley announced today.
According to the indictment, on September 3, 2020, Cicciu possessed a quantity of fentanyl with intent to distribute. The indictment also alleges that between October 26, 2019, and September 3, 2020, Cicciu managed and controlled a property on High Street in Manchester and made the premises available for storing, distributing, and using controlled substances.
Cicciu was arrested on state charges on September 3, 2020, and currently is being detained.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Manchester Police Department.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Charged with Organizing Smuggling Event that Led to Deaths of 13 Mexican and Guatemalan NationalsRead the Press Release
Assistant U. S. Attorneys Timothy Coughlin (619) 546-6768, Victor White (619) 546-8439, Blair Perez (619) 546-7963, Shauna Prewitt (619) 546-7937, Patrick Swan (619) 546-8450
NEWS RELEASE SUMMARY – March 30, 2021
EL CENTRO – Jose Cruz Noguez of Mexicali, Mexico, was charged in federal court today with coordinating the March 2, 2021 smuggling event that led to the deaths of 13 Mexican and Guatemalan nationals in a crash of an overloaded vehicle near Holtville, California.
Cruz, a legal permanent resident of the United States who has spent time in San Jose, California, was taken into custody last night as he crossed into the U.S. from Mexico at the Calexico Port of Entry. He made his first appearance in federal court in El Centro today before U.S. Magistrate Judge Ruth Bermudez Montenegro.
Cruz was charged with Conspiracy to Bring Aliens to the United States Outside a Port of Entry Causing Serious Bodily Injury/Placing a Life in Jeopardy, and Bringing in Aliens Without Presentation for Financial Gain. Judge Montenegro ordered that Cruz remain in custody and scheduled a detention hearing for Monday, April 5, 2021 at 9 a.m.
“These smuggling networks seek maximum profit by moving as many people as possible across the border with zero regard for their safety and well-being,” said Acting U.S. Attorney Randy Grossman. “Cramming dozens of people into eight-passenger vehicles and driving recklessly to avoid detection shows an utter disregard for human life. We will find and prosecute smugglers who use these methods and cause such tragic and avoidable deaths.” Grossman commended Assistant U. S. Attorneys Timothy Coughlin, Victor White, Shauna Prewitt, Patrick Swan and Blair Perez and agents from Homeland Security Investigations and the U.S. Border Patrol, El Centro Sector Intelligence Unit, for their excellent work on this case.
“Homeland Security Investigations (HSI) remains steadfast in our commitment to pursue members of human smuggling networks such as the network that caused the tragic deaths in the March 2 smuggling incident,” said Cardell T. Morant, special agent in charge for HSI San Diego. “Our investigative efforts have led to the arrest of an individual who allegedly put those lives in danger, and this brings us another step closer to providing closure for the families. We will continue to work collaboratively with our law enforcement partners to bring the perpetrators of this heinous crime to justice.” HSI’s tip line in the Calexico area is (760) 335-5343.
“Thirteen individuals lost their lives on March 2nd due to unscrupulous human smugglers,” said El Centro Sector Border Patrol Chief Patrol Agent Gregory K. Bovino. “The U.S. Attorney’s Office, Homeland Security Investigations and the U.S. Border Patrol will stop at nothing to find, arrest, and prosecute smuggling organizations and this case is evidence of that.”
Cruz came to the attention of law enforcement when he was identified by another suspected smuggler who claimed to be an associate of Cruz. The associate was arrested at the Campo Border Patrol Station for an unrelated smuggling event on March 15, two weeks after the fatal crash. The associate pointed the finger at Cruz, telling authorities he had worked for Cruz in the past, and had been recruited by Cruz to be the driver of the ill-fated vehicle from that tragic day. Cruz had offered him $1,000 per passenger, but he declined, the complaint said.
According to the complaint, the events of March 2 unfolded like this:
At approximately 5:56 a.m., Border Patrol Agents from the El Centro Border Patrol Station received a report from the California Highway Patrol of more than a dozen individuals running away from a burning GMC Yukon SUV and into the desert in Holtville, California. Border Patrol Agents were asked to respond to this suspected human smuggling event. At approximately 6:10 a.m., Border Patrol Agents responded to the area and extinguished the fire. Border Patrol Agents also followed foot tracks into the desert and apprehended 19 individuals hiding in the surrounding brush.
Separately, at approximately 6:05 a.m., a Remote Video Surveillance System (RVSS) operator at the Calexico Border Patrol Station spotted multiple vehicles and approximately 20 individuals gathered in a remote area just south of the United States/Mexico border. He also noticed that the border fence in the area had been breached and an approximately 10-foot section of it had been removed and was laying on the ground in Mexico. Border Patrol Agents then reviewed video footage from the area and discovered that two vehicles had crossed through the fence at approximately 5:23 a.m.: the GMC Yukon SUV and a Ford Expedition.
At 7:05 a.m., Border Patrol Agents at the Calexico Border Patrol Station received a request from the Calexico Police Department to assist with a mass-casualty vehicle crash in Holtville, California. Border Patrol Agents responding to the crash identified one of the vehicles involved as the Ford Expedition that recently had breached the border fence. A total of 25 individuals had been in the Ford Expedition at the time of the crash. Subsequent inspection of the Ford Expedition revealed that all but the driver and front passenger seats had been removed, presumably to fit that large number of people.
Despite the best efforts of law enforcement and medical personnel, 12 individuals – including the suspected driver – died at the scene of the crash. Another individual died on the way to the hospital. The surviving 12 individuals were transported to various hospitals far and wide, including in San Diego. Many of the survivors were diagnosed with serious injuries.
According to the complaint, on March 26, 2021, the suspected smuggler who claimed to be an associate of Cruz participated in a secretly recorded conversation with Cruz. During the recorded call, Cruz confirmed his involvement in the March 2, 2021, event, including that his other associates cut the border fence; that the vehicles were fully loaded; and that he collected money for the event. Further, Cruz stated there were 60 “Pollos” – his term for customers – in the two vehicles and the driver was going to make $28,000.
The associate told authorities he had grown up in Mexicali, Mexico and had known Cruz for several years. He said that he illegally entered the United States six months ago and started working for Cruz, who he described as a coordinator. He said Cruz paid him to drive individuals who are in the United States illegally from El Centro, California to Los Angeles, California. He said Cruz required him to harbor an individual who was illegally in the United States at his home in El Centro, California. In addition, the associate said Cruz required that he scout areas near El Centro, California where Cruz had groups of people illegally enter the United States. According to the associate, Cruz oversees the transportation of individuals who are in the United States illegally to stash houses; collects smuggling payments from family members or sponsors; recruits drivers; and scouts for the presence of law enforcement.
The associate stated that two weeks prior to the March 2, 2021, smuggling event, Cruz attempted to recruit him to drive one of the smuggling vehicles north from Mexico into the United States through a section of the fence that Cruz said would be breached. Cruz told his associate there would be up to 20 people in the vehicle and that the associate would be paid $1,000 per person for the job. According to the complaint, Cruz also told the associate that Cruz would oversee the smuggling event and would arrange for the vehicles that crossed to go to a stash house in Holtville, California. The associate claimed he declined Cruz’s offer.
Federal officials wish to thank the Mexican and Guatemalan consulates for their assistance in notifying family members of those individuals who died in the crash and in identifying and contacting family members of those hospitalized as a result of this tragedy.
At the hearing, Cruz was advised of the charges pending against him. The matter was set for a preliminary hearing on April 13, 2021 at 9 a.m. and arraignment on April 27, 2021 at 9:00 a.m. before Judge Montenegro. The Court appointed Federal Defenders as defense counsel in this case.
DEFENDANT Case Number 21MJ8250
Jose Cruz Noguez Age 47 Mexicali, Mexico
SUMMARY OF CHARGES
Conspiracy to Bring Aliens to the United States Outside a Port of Entry Causing Serious Bodily Injury/Placing a Life in Jeopardy –Title 8, U.S.C., Secs. 1324(a)(1)(A)(i), (v)(I), and (B)(iii)
Maximum Penalty: Twenty years in prison.
Bringing in Aliens Without Presentation for Financial Gain – Title 8, U.S.C., Sec. 1324(a)(2)(B)(ii)
Maximum Penalty: For a first or second violation, not less than three years or more than 10 years in custody; for a third violation, not less than five years or more than 15 years of custody.
INVESTIGATING AGENCIES
Homeland Security Investigations
United States Border Patrol, El Centro Sector Intelligence Unit
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Law Firm Bookkeeper Sentenced for Fraud, Identity TheftRead the Press Release
PROVIDENCE – A former bookkeeper/office manager who admitted to embezzling more than $740,000 from a Rhode Island law firm that employed her, fraudulently collecting nearly $20,000 in temporary disability insurance payments, and filing fraudulent documents when applying for a mortgage from a Rhode Island bank, was sentenced today to five years in federal prison.
According to court documents, Sarah Gaulin, 39, a former employee of the law firm of Hamel, Waxler, Allen and Collins (HWAC), devised and executed multiple schemes and forged law firm checks to fraudulently obtain $740,953 in law firm funds.
Gaulin previously admitted to the court that she prepared and cashed HWAC checks made payable to herself, which included the forged signature of a law firm partner; prepared HWAC checks payable to her own creditors; and prepared HWAC checks payable to law firm credit card companies and other third party vendors to pay for personal purchases and expenses, such as her rent, mortgage, automobile lease and repairs, AT&T service, and credit card debts.
Additionally, according to court documents, Gaulin used more than 550 forged HWAC checks to purchase $292,190 worth of gift cards from Staples.
Gaulin also admitted that she submitted fraudulent bank statements to a Rhode Island bank as part of a mortgage application she filed with the bank. Gaulin admitted to submitting personal bank statements reflecting a positive balance when in fact her actual account was routinely overdrawn. Gaulin reflected that among her expenses was rent she paid monthly, when, in fact, she had been using funds she illegally obtained from HWAC to make the payments.
Additionally, as detailed in court documents, from March 26, 2016, to July 23, 2016, and from May 5, 2018, to August 11, 2018, Gaulin fraudulently collected approximately $19,588 in temporary disability insurance payments from the Rhode Island Department of Labor and Training. Gaulin claimed she was unable to work due to injury or illness, when, in fact, she remained employed during the time she was collecting the benefits.
On October 13, 2020, Gaulin pleaded guilty to two counts of bank fraud, and one count each of aggravated identity theft and wire fraud.
Gaulin was sentenced today by U.S. District Court Judge William E. Smith to 60 months in federal prison to be followed by three years of supervised release. Additionally, Gaulin was ordered to pay restitution in the amount of $760,541, to include $740,953 to HWAC and $19,588 to the Rhode Island Department of Labor and Training.
Gaulin’s sentence is announced by Acting United States Attorney Richard B, Myrus, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Las Vegas woman indicted on fraud and money laundering chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shelly Anne Leipham, of Las Vegas, Nevada, is facing fraud charges, Acting United States Attorney Randolph J. Bernard announced.
Leipham, 65, was indicted on March 2, 2021 on three counts of “Wire Fraud,” five counts of “Mail Fraud,” and three counts of “Money Laundering.” Leipham is accused of calling an elderly victim living in Harrison County and claiming the victim won one million dollars. Leipham is accused of defrauding the victim of nearly $25,000 by directing the victim to send that amount to her over the course of a two-year period by mail and wire.
“This case showcases just one of the many ways people prey on our elderly neighbors. Lottery scams aren’t new, and it’s most despicable when the perpetrator targets someone who is vulnerable. We encourage everyone to be vigilant and suspicious. If it sounds too good to be true, it’s most likely a scam,” said Bernard.
The government is also seeking a money judgment in the amount of $336,402.
Leipham is facing up to 20 years of incarceration and a fine of up to $250,000 for each of the wire fraud and mail fraud counts. She’s facing up to 20 years of incarceration and a fine of up to $500,000 for each of the money laundering counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Internal Revenue Service and the West Virginia State Police investigated.
This case is being prosecuted as a part of the Department of Justice Elder Fraud Initiative. Since the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Lakeland Man Pleads Guilty to Receiving Child Sex Abuse Videos from the Largest Darknet Child Pornography Website, Which Was Funded by BitcoinRead the Press Release
Tampa, Florida – Jack R. Dove, III (41, Lakeland) has pleaded guilty to receiving and possessing images and videos depicting the sexual abuse of children. He faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison. His sentencing hearing is scheduled for June 29, 2021.
Dove had been indicted on January 29, 2019.
According to court documents, Dove used the cryptocurrency bitcoin to pay for a membership to a Darknet marketplace called “Welcome To Video,” which contained the largest collection of child sexual exploitation materials by volume on the Darknet. In March 2018, the Korean National Police in South Korea seized the server that was used to operate the “Welcome To Video” website, which contained over 250,000 child sexual exploitation videos. The website exclusively advertised child sexual exploitation videos available for purchase and download by members of the website using bitcoin. An analysis of the server revealed that Dove had created multiple accounts. In January and February 2017, Dove used one of his accounts to purchase “points” from the website. Dove then used those “points” to download and received approximately 8,700 megabytes of child sex abuse material. In August 2018, Dove used another account to pay for “VIP” membership to the website granting him unlimited downloads from the website over a six-month period. During his VIP membership status, Dove downloaded and received approximately 38 videos depicting minors engaged in sexually explicit conduct, including young children.
On November 30, 2018, federal agents executed a search warrant at Dove’s Lakeland home and seized several electronic devices. A forensic analysis of the devices revealed that Dove had in fact received the child sex abuse videos that he had previously purchased from the “Welcome To Video” website and was in possession of additional child sex abuse material depicting young children, including infants and toddlers, who had been bound and subjected to sadistic and violent acts during the production of the videos.
This case was investigated by Homeland Security Investigations. The international investigation was led by IRS-Criminal Investigation, Homeland Security Investigations, the National Crime Agency of the United Kingdom, and the Korean National Police of the Republic of Korea. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Ilyssa Spergel, with assistance from Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section.
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.
Lake Elsinore Man Pleads Guilty to Criminal Charge for Bagman Role in Conspiracy to Defraud Elderly by Posing as Federal AgentsRead the Press Release
LOS ANGELES – A Riverside County man pleaded guilty today to a federal criminal charge that he participated in an international conspiracy where he helped collect more than $500,000 in cash conned out of elderly victims by other co-conspirators pretending to be federal agents threatening the victims with arrest on bogus warrants.
Anuj Mahendrabhai Patel, 31, a.k.a. “Mike” and “Indio,” of Lake Elsinore, pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
According to his plea agreement, from April 2019 to March 2020, Patel participated in an international conspiracy that deceived elderly victims out of their money. Other members of the conspiracy, some of whom are believed to be in India, telephoned victims and pretended to be government employees or law enforcement officers. Using several false pretenses – including phony badge numbers and using spoofed government telephone numbers – the co-conspirators convinced the victims, most of whom were elderly, that their identities or assets were in trouble.
Some victims were told that their Social Security numbers had been linked to crimes and that there were warrants issued by courts authorizing the victims’ arrests. The co-conspirators further told the victims that to clear the warrants, they should withdraw their savings and send cash by mail to other members of the scheme.
The victims were ordered to send the parcels through shipping companies that allowed parcel recipients to pick up parcel so long as the recipients had identification matching the names listed on the parcel as the addressees. The addresses the defendants gave primarily were at locations in Riverside County, but also in Los Angeles and San Diego counties.
Patel admitted he used tracking numbers to monitor the victims’ parcels, and communicated with couriers – Elmer Miranda Barrios, 36, a.k.a. “Welbin Raul Mejia” and “Joe Rodriguez,” and William Margarito Barrios, 36, Elmer Barrios’s cousin, both of Lake Elsinore – who used fraudulent identification documents matching the names listed on the parcels as addresses. Patel also admitted to receiving or intending to receive 18 packages sent by victims.
The total loss in this case is approximately $541,420 and Patel admitted the scheme involved at least 10 victims, many of whom he knew were vulnerable people.
United States District Judge Otis D. Wright II has scheduled a June 28 sentencing hearing, at which time Patel will face a statutory maximum sentence of 20 years in federal prison.
William Barrios pleaded guilty on January 4 to one count of conspiracy to commit mail fraud and wire fraud, and was sentenced on March 29 and was given a time-served sentence of five months in federal prison and was ordered released to immigration authorities for deportation. Elmer Barrios is scheduled to go on trial in this matter on May 4.
This matter was investigated by Homeland Security Investigations; the Social Security Administration; the United States Department of Treasury Inspector General for Tax Administration; the Murrieta Police Department; the San Bernardino County Sheriff’s Department; the Los Angeles County Sheriff’s Department; the Huntington Beach Police Department; the Fullerton Police Department; the Stanislaus County (California) Sheriff’s Department; the Seattle Police Department; the Brownsville (Texas) Police Department; the St. James Parish (Louisiana) Sheriff’s Office; the Cook County (Illinois) Sheriff’s Office; the Addison (Illinois) Police Department; the Columbus (Ohio) Division of Police; the Northwest Lancaster County (Pennsylvania) Regional Police Department; the Edison Township (New Jersey) Police Department; and the St. Petersburg (Florida) Police Department.
This case is being prosecuted by Assistant United States Attorney Peter H. Dahlquist of the Riverside Branch Office.
The U.S. Attorney’s Office in Los Angeles is one of six offices participating in the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of federal law enforcement and non-governmental organizations to combat international fraud schemes that disproportionately affect American seniors.
Justice Department Settles Housing Discrimination Lawsuit Against Staten Island, New York Rental Agent and Real Estate AgencyRead the Press Release
The Justice Department announced today that its Civil Rights Division, together with the U.S. Attorney’s Office for the Eastern District of New York, has reached 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.
Today’s agreement, which is in the form of a consent decree, must still be approved by the U.S. District Court for the Eastern District of New York. 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 differently and 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. The department’s complaint alleges that Donovan 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.
“For 30 years – since its establishment in 1991 – the Fair Housing Testing Program has played a critical role in helping the Justice Department root out discrimination that might otherwise go undetected,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “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.”
“Today’s settlement underscores the importance of making housing equally available to all residents of this district, regardless of race,” said Acting U.S. Attorney Mark J. Lesko of the Eastern District of New York. “This office is committed to ending racial discrimination and to achieving fairness and equality in housing.”
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.
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 Justice Department’s 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.
Judges sentences St. Louis man who brandished weapon during robbery of beauty supply storeRead the Press Release
ST. LOUIS – United States District Judge Ronnie L. White sentenced Dominic Young to 90 months in prison Monday. The 27-year-old St. Louis, Missouri resident pleaded guilty to one count of armed robbery and one count of brandishing a firearm.
On December 10, 2019, Young robbed T.K. Beauty Supply located in the 8500 block of Airport Road in Berkeley. As a T.K. Beauty Supply employee was on the way back inside the store, from taking out the store’s trash, Young tried to have a conversation with the employee. The employee re-entered the store, but Young brandished a firearm by pointing it at the employee and another employee. Young demanded one of the employees give him the money from two cash registers.
Young ordered both employees on the ground before taking more money from one of the employee’s purse. Young left the store, got into a vehicle and left the area. Young’s actions were captured on security surveillance footage inside of the store.
The Federal Bureau of Investigation and St. Louis County Police Department investigated the case. Assistant United States Attorney Geoff Ogden is handling the case.
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Judge Sentences Turtle Creek Drug Dealer to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former Allegheny County resident has been sentenced in federal court to 120 months’ imprisonment and eight years’ supervised release on his conviction of narcotics trafficking, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jerry Coker, age 30, formerly of Turtle Creek, Pennsylvania.
According to information presented to the court at the time Coker pleaded guilty, City of Pittsburgh police officers investigating Coker’s drug trafficking activity observed Coker’s sister and codefendant, Marleka Robinson, on September 11, 2016, obtain a large quantity of fentanyl from a distributor in the Knoxville section of Pittsburgh at Coker’s request. Robinson returned the drugs to the residence she shared with Coker and their other sister, codefendant Monique Robinson. A search warrant executed at the Coker residence the following day resulted in the seizure of more than 285 grams of fentanyl and small quantities of heroin, cocaine, and marijuana. Drug packaging, weighing, and distributing materials were found strewn throughout the house, along with two Smith & Wesson pistols and $8,900 in cash, all of which was ordered by the court to be forfeited.
Prior to imposing sentence, Judge Bissoon noted that given Coker’s prior felony drug trafficking conviction, the law required that she impose a sentence of 10 years’ imprisonment.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Drug Enforcement Administration and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Coker.
Jerriod Sivels Sentenced for Conspiracy to Distribute Cocaine and Money LaunderingRead the Press Release
Chattanooga, Tennessee – On March 26, 2021, Jerriod Sivels, also known as Jerriod Lee, 31, of Chattanooga, was sentenced to 142 months in prison by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Sivels previously pleaded guilty to one count of conspiracy to distribute 5 kilograms or more of cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), and one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(A).
The conviction was the result of an investigation into a drug trafficking organization responsible for distributing multiple kilograms of cocaine in the Eastdale and Brainerd communities of Chattanooga. Sivels was identified as a leader of the organization.
“This prosecution, which has made our community safer, provides an excellent example of the law enforcement successes that can be achieved through federal, state, and local collaboration,” said Acting United States Attorney Francis M. Hamilton III. “The U.S. Attorney’s Office values the coordinated law enforcement response that dismantled the drug trafficking organization in this case.”
“Today’s announcement should serve as a warning to anyone who seeks to poison our communities with dangerous and illegal drugs,” said Special Agent in Charge J. Todd Scott, who oversees DEA operations in Tennessee, Kentucky, and West Virginia. “The Drug Enforcement Administration works very closely with our law enforcement partners, like the Chattanooga Police Department, to ensure that criminal drug activity is shut down and those responsible are brought to justice. We are very grateful to CPD for their on-going cooperation and assistance.”
Chattanooga Chief of Police David Roddy said, "the Chattanooga Police Department is thankful for the partnership we have in the Federal system. The cooperative impact of our investigators and our Federal Partners has resulted in a prosecution that dismantled an organization, will keep Sivels from continuing to harm our community via drug trafficking, and has made our neighborhoods safer."
This prosecution is the result of an investigation by the United States Drug Enforcement Administration (“DEA”), the Chattanooga Police Department (“CPD”), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). The DEA Chattanooga Resident Office High Intensity Drug Trafficking Area (“HIDTA”) Task Force led the investigation. THE HIDTA Task Force includes Task Force Officers from CPD, the Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Franklin County Sheriff’s Office, Red Bank Police Department, and the Tennessee Highway Patrol.
The investigation was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Special Assistant United States Attorney Kevin Brown represented the United States. Brown is a Special Assistant City Attorney with the Chattanooga Police Department designated to the United States Attorney’s Office to prosecute violations of federal firearm and drug laws.
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Jackson Man Pleads Guilty to Federal Firearms CrimeRead the Press Release
Jackson, Miss. – Jarvis Kendal Haynes, 30, of Jackson, pled guilty today to an Indictment charging him with False Statement During Purchase of a Firearm, announced Acting United States Attorney Darren J. LaMarca and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations, New Orleans Field Office.
“Honest compliance with federal firearms laws helps to preserve the rights of innocent gun owners while allowing law enforcement to focus on illicit gun trafficking,” said Acting U.S. Attorney Darren LaMarca. “These arrests affirm the Department of Justice’s commitment to prosecuting those who willfully violate our federal firearms laws.”
An original indictment, returned by a federal grand jury on August 11, 2020, charged Haynes with unlawful possession of a firearm by a controlled substance user, and false statement during purchase of a firearm.
According to the indictment and testimony in court, on April 16, 2020, Haynes purchased a 9mm handgun from a Jackson pawnshop. In completing the necessary paperwork for the sale, Haynes claimed that he was not an unlawful user or addicted to marijuana or other controlled substances. Following a waiting period, Haynes returned on April 22, 2020, to the pawnshop to pick up the firearm, and also signed the federal form certifying that his answers remained true and correct.
On August 11, 2020, Haynes testified under oath in the United States District Court on a separate matter. Haynes then admitted that he had regularly used marijuana for years prior, and that specifically in April 2020, he lied when he claimed on the paperwork to buy the firearm, that Haynes had not been an unlawful user or addicted to marijuana when he bought the handgun.
On March 30, 2021, Haynes appeared before United States District Judge Kristi H. Johnson in Jackson, Mississippi. Haynes entered a plea of guilty to Count 2 of the Indictment: false statement during purchase of a firearm, in that he admitted to being an unlawful user of marijuana at the time he falsely claimed the opposite on the federal firearms purchase form.
Sentencing is scheduled for July 14, 2021 at 1:30 p.m. at the Thad Cochran U.S. Courthouse in Jackson, before U.S. District Judge Kristi H. Johnson. Haynes faces maximum penalties of 5 years in prison and a fine of up to $250,000.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with HSI’s Jackson Division who investigated the case, and United States Marshals Service who assisted with the arrest of the defendant. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Independence Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TIFFANY WALLACE, age 34, of Independence, Louisiana, pled guilty today to theft of government funds in connection with false applications for disaster assistance.
According to court documents, WALLACE submitted falsified applications to the Federal Emergency Management Administration (“FEMA”) for disaster assistance. The applications sought disaster assistance for vehicles that WALLACE claimed were damaged following the March and August 2016 storms and flooding in Tangipahoa Parish. In the application, WALLACE submitted fraudulent repair invoices for $13,935 of vehicle damage from the March 2016 flood and $13,368 for the August 2016 flood, when in fact WALLACE created the fraudulent invoices using fictitious automotive repair shops. As a result of false statements in the applications, FEMA paid disaster benefits of $6,000 and $11,902 for the two floods to WALLACE.
WALLACE faces up to ten years in prison, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and a special assessment of $100. Judge Jay C. Zainey set the sentencing hearing for June 29, 2021.
U.S. Attorney Evans praised the work of the Department of Homeland Security’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Hudson Man Sentenced to 276 Months for Sexual Exploitation of a MinorRead the Press Release
CONCORD - Robert Corleto, 43, of Hudson, was sentenced to 276 months in federal prison on Friday for sexual exploitation of a minor, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Corleto used a social media account on KIK Messenger to entice and coerce a minor to take images of herself engaging in sexually explicit conduct. Corleto sent at least one of those images to an undercover officer over KIK Messenger on March 18, 2019. During the course of the investigation, officers obtained a warrant to search Corleto’s cell phone. A forensic extraction of the device revealed that Corleto had between 10 and 150 images depicting the victim, as well as other minor children.
Corleto previously pleaded guilty on December 18, 2020.
“This case demonstrates the dangers that lurk on the internet,” said Acting U.S. Attorney Farley. “Sadly, there are predators who use the internet to exploit children for their own sexual gratification. The law enforcement community is working to identify these predators, but parents and the community must also make sure that children understand that they must be careful when using social media. Thanks to this substantial prison sentence, children will be protected from Mr. Corleto for a long time.”
“Today’s sentence effectively ends Robert Corleto’s ability to sexually exploit children and underscores our collective commitment to keep our children safe by going after those who seek to exploit their innocence online,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case illustrates how easy it is for a child to be victimized in the safety of their own home, and the need to talk to them about the steps they should take to safeguard their safety.”
This matter was investigated by the Federal Bureau of Investigation and the Hudson Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Houston man gets 25 years for trafficking 14-year old for sexRead the Press Release
HOUSTON – A 26-year-old Houston man has been ordered to prison following his convictions of sex trafficking of a minor and conspiracy to do so, announced Acting U.S. Attorney Jennifer B. Lowery.
Trevien Thomas aka Triggah pleaded guilty Jan. 6.
Today, U.S. District Judge Nancy F. Atlas handed Thomas a 300-month sentence. At the hearing, the court heard a statement from the victim’s mother and sister as well as letters from the victim and others detailing the emotional, physical and financial impact of what Thomas did. In handing down the sentence, the court noted the aggravating factor that Thomas lured an obviously emotionally-injured girl to Houston to engage in prostitution. The court further noted the victim suffered substantially during the time Thomas held her. He was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with requirements restricting his access to children and the internet. Thomas will also be ordered to register as a sex offender.
On March 23, 2016, Thomas picked up a 14-year-old girl in Dallas and brought her to Houston. After pistol whipping her when she tried to leave the first day, Thomas held the victim at several motels in the Houston area against her will and created commercial sex advertisements of her. He then forced the minor to engage in commercial sex acts with multiple adult men over the course of five days.
Thomas collected and kept all the proceeds.
He consistently watched her or had others do so. However, on March 28, 2016, he left her alone in a motel room, at which time she was able to escape.
Thomas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department conducted the investigation with assistance from the FBI Organized Crime Task Force. The Dallas Police Department also assisted with the investigative effort.
Assistant U.S. Attorneys Sebastian Edwards and Eun Kate Suh prosecuted this case.
Health Care Staffing Company and Executive Indicted for Colluding to Suppress Wages of School NursesRead the Press Release
A federal grand jury in Las Vegas, Nevada, returned an indictment today charging VDA OC LLC (formerly Advantage On Call LLC), a health care staffing company, and Ryan Hee, a former manager of the company, with entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses, in violation of the Sherman Act.
According to the one-count felony indictment filed today in the U.S. District Court for the District of Nevada, Hee, a resident of Las Vegas, along with a co-conspirator, agreed not to recruit or hire nurses staffed by their respective companies at Clark County School District facilities and to refrain from raising the wages of those nurses. During the alleged conspiracy, from about October 2016 until July 2017, Advantage was one of two primary providers of contract nursing services to the school district and employed Hee as a regional manager in its Las Vegas office. Advantage changed its name to VDA OC LLC after its assets were acquired by another company in July 2017.
“When employers conspire to allocate employees and fix wages, it robs American workers of higher pay and the ability to bargain for better, higher-paying jobs,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “Ensuring that American workers receive the benefits of free and fair competition is a top priority, so we will use every investigative tool at our disposal to investigate these crimes and prosecute perpetrators to the full extent of the law.”
“Our office is committed to investigating and prosecuting employers that harm the livelihood of American workers by conspiring to suppress wages,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working closely with the Antitrust Division, we will continue protecting the integrity of Nevada’s labor market against illegal wage-fixing and no-poach agreements.”
“The FBI is committed to investigating potential corruption that impedes our economy,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “The FBI works daily to disrupt illegal activity, like wage-fixing in this case, protecting honest American workers from those who would unfairly enrich themselves. We work hand-in-hand with our partners at the Department of Justice to stop this type of alleged activity and ensure Justice is served.”
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the International Corruption Unit of the FBI, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Health Care Staffing Company and Executive Indicted for Colluding to Suppress Wages of School NursesRead the Press Release
LAS VEGAS, Nev. – A federal grand jury in Las Vegas, Nevada, returned an indictment today charging VDA OC LLC (formerly Advantage On Call LLC), a health care staffing company, and Ryan Hee, a former manager of the company, with entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses, in violation of the Sherman Act.
According to the one-count felony indictment filed today in the U.S. District Court for the District of Nevada, Hee, a resident of Las Vegas, along with a co-conspirator, agreed not to recruit or hire nurses staffed by their respective companies at Clark County School District facilities and to refrain from raising the wages of those nurses. During the alleged conspiracy, from about October 2016 until July 2017, Advantage was one of two primary providers of contract nursing services to the school district and employed Hee as a regional manager in its Las Vegas office. Advantage changed its name to VDA OC LLC after its assets were acquired by another company in July 2017.
“When employers conspire to allocate employees and fix wages, it robs American workers of higher pay and the ability to bargain for better, higher-paying jobs,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “Ensuring that American workers receive the benefits of free and fair competition is a top priority, so we will use every investigative tool at our disposal to investigate these crimes and prosecute perpetrators to the full extent of the law.”
“Our office is committed to investigating and prosecuting employers that harm the livelihood of American workers by conspiring to suppress wages,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working closely with the Antitrust Division, we will continue protecting the integrity of Nevada’s labor market against illegal wage-fixing and no-poach agreements.”
“The FBI is committed to investigating potential corruption that impedes our economy,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “The FBI works daily to disrupt illegal activity, like wage-fixing in this case, protecting honest American workers from those who would unfairly enrich themselves. We work hand-in-hand with our partners at the Department of Justice to stop this type of alleged activity and ensure Justice is served.”
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the International Corruption Unit of the FBI, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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Gulfport Man Pleads Guilty under Project EJECT to Firearms OffenseRead the Press Release
Gulfport, Mississippi – Charles Jerrell Brown, 41, of Gulfport, Mississippi, pleaded guilty today before Senior U.S. District Judge Louis Guirola to being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (“DEA”).
On November 4, 2020, law enforcement officers conducted an operation in Gulfport, Mississippi. During the operation, Charles Jerrell Brown was taken into custody. As he was taken into custody, law enforcement officers found a handgun on the chair were Brown had been sitting.
Law enforcement officers were able to determine that Brown had a prior felony conviction for Possession of a Controlled Substance with Intent to Distribute. Brown admitted to possessing the firearm and being a prior convicted felon.
Brown was indicted on November 17, 2020. He will be sentenced on June 29, 2021, at 1:30 p.m. and faces a maximum sentence of 10 years in prison, unless the Court determines that he is an Armed Career Criminal, in which case he faces a maximum sentence of life in prison.
This case was investigated by the DEA and the Gulfport Police Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gregg County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A Kilgore, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Christopher Marcell Mumphrey, 43, pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
“As evidenced by this plea and a co-defendant's plea last week, local and state law enforcement, partnering with the FBI, are making a difference in shutting down the flow of illegal drugs in our communities,” said Acting U.S. Attorney Nicholas J. Ganjei.
According to information presented in court, on Feb. 5, 2020, Mumphrey was a passenger in a vehicle which was used to transport and distribute methamphetamine in Smith County, Texas. Mumphrey exited the vehicle and signaled to the buyer to approach the vehicle to complete the transaction.
A federal grand jury returned an indictment charging Mumphrey with federal drug trafficking crimes on Nov. 6, 2020. Under federal statutes, Mumphrey faces up to 40 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, the Smith County Sheriff’s Office, and the Texas Department of Public Safety-CID and prosecuted by Assistant U.S. Attorney Alan Jackson.
Former Probation Official Pleads Guilty to Child Pornography OffensesRead the Press Release
A Pennsylvania man pleaded guilty today to multiple counts of receiving child pornography, accessing with intent to view child pornography, and possessing child pornography depicting prepubescent minors and minors under the age of 12.
According to court documents, Robert Costello, 53, of Bethlehem, who was employed by the New York City Department of Probation as an assistant commissioner at the time of the offenses in 2020, used an online app to discuss the sexual abuse of children and to receive images of child sexual abuse, and stored images and videos of child sexual abuse on his electronic devices.
Costello is scheduled to be sentenced on July 15, and faces a mandatory minimum of five years in prison and a statutory maximum of 90 years in prison. He also faces mandatory restitution. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas M. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania; and Special Agent in Charge Brian A. Michael of Homeland Security Investigations (HSI) in Philadelphia made the announcement.
HSI Philadelphia is investigating the case and received assistance from the Bethlehem Township Police Department.
Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Francis Weber and Kelly Harrell of the Eastern District of Pennsylvania are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Princeton Resident Charged in Connection with Multimillion-Dollar Schemes Involving Securities Fraud, Credit Card Fraud, and Business E-Mail Compromise FraudRead the Press Release
TRENTON, N.J. – A former Princeton resident was arrested today and charged with engaging in multiple fraudulent schemes intended to steal millions of dollars from individual and institutional victims, Acting U.S. Attorney Rachael A. Honig announced.
Ford Graham, 57, formerly of Princeton, New Jersey, was arrested today in Nellysford, Virginia, and charged by criminal complaint with two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of securities fraud, three counts of aggravated identity theft, and one count of engaging in unlawful money transactions. Graham made his initial appearance before U.S. Magistrate Judge Joel Hoppe in Harrisonburg, Virginia, federal court. Graham will make his initial appearance in U.S. District Court for the District of New Jersey on a date to be determined.
According to documents filed in this case and statements made in court:
From December 2012 to September 2013, Graham represented himself as the owner, chief executive, chairman, manager, and principal member of dozens of corporate entities purporting to do business under an umbrella organization, Vulcan Capital Corp. (Vulcan). Graham held himself out as a highly successful financier who had vast experience sponsoring complex energy and natural resource projects and other investment deals. In connection with one such investment that Graham and a Vulcan entity sponsored, one victim (Victim-1) invested more than $2 million with Graham, relying on Graham’s misrepresentations and omissions regarding the investment. The investigation revealed that Graham misappropriated substantial amounts of Victim-1’s investment money and used it for his own personal benefit and enrichment – including international vacations, private school tuition for his children, and other personal amenities – instead of the investment purpose that Graham had marketed. Graham caused multiple victims to lose more than $2.6 million.
Graham also participated in a scheme to defraud merchant processing institutions through fraudulent credit card transactions. From December 2017 to February 2018, Graham used at least one payment processing platform to process fraudulent charges on stolen credit card numbers that he obtained. After the payment processing platform credited Graham’s account with the payments requested, Graham quickly transferred or caused to be transferred the fraudulently obtained money to other accounts before the victim institutions could act. When requested by the victim payment processing company to provide supporting documentation, Graham submitted false documentation, including fabricated invoices and credit card authorization forms, fabricated e-mails, forged signatures, altered bank statements, and other false and fraudulent information. This scheme resulted in tens of thousands of dollars of losses and the misappropriation of multiple victims’ personal identification information.
From February 2017 to June 2018, Graham conspired with others to defraud victim institutions and individuals of millions of dollars through a business email compromise scheme. Members of the conspiracy sent fraudulent e-mail communications to victims who were scheduled to make substantial outgoing wire transfers to third parties. These fraudulent e-mails created the appearance that they had been sent by the intended third-party recipients of the scheduled payments when, in fact, they were sent by members of the conspiracy. The fraudulent emails requested the victims to reroute the scheduled payments to different bank accounts, which Graham and his conspirators controlled. In one instance, a fraudulent email successfully induced one victim unknowingly to reroute a payment of more than $650,000 to a bank account that Graham controlled. Upon receiving the funds, Graham transferred or caused to be transferred substantial portions of those funds to other accounts that he controlled, and which he used and intended to use for his own personal benefit. Graham and his conspirators attempted to defraud multiple victims of at least $6 million.
The wire fraud and wire fraud conspiracy counts each carry a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum potential penalty of 20 years in prison and a $5 million fine. Each count of aggravated identity theft is punishable by a statutory mandatory consecutive sentence of two years, which must run consecutive to any other sentence. The charge of engaging in unlawful monetary transactions carries a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s charges. Acting U.S. Attorney Honig also thanked investigators with the New Jersey Bureau of Securities, under the direction of Chief Christopher W. Gerold, for their assistance in connection with the investigation.
The government is represented by Assistant U.S. Attorneys J. Brendan Day, Attorney-in-Charge of the Trenton Branch Office, and Martha K. Nye, of the Criminal Division in Trenton.
Former Honduran Congressman Tony Hernández Sentenced to Life in Prison and Ordered to Forfeit $138.5 Million for Distributing 185 Tons of Cocaine and Related Firearms and False Statements OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Wendy C. Woolcock, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that JUAN ANTONIO HERNÁNDEZ ALVARADO, a/k/a “Tony Hernández” (“HERNÁNDEZ”) was sentenced to life in prison for cocaine-importation, weapons, and false-statements offenses. HERNÁNDEZ is a former Honduran congressman and the brother of Juan Orlando Hernández, the current president of Honduras. HERNÁNDEZ was convicted on October 18, 2019, following a jury trial before U.S. District Judge P. Kevin Castel, who also imposed today’s sentence.
Manhattan U.S. Attorney Audrey Strauss said: “Former Honduran congressman Juan Antonio Hernández Alvarado was involved in all stages of the trafficking through Honduras of multi-ton loads of cocaine destined for the U.S. Hernández bribed law enforcement officials to protect drug shipments, arranged for heavily armed security for cocaine shipments, and brokered large bribes from major drug traffickers to powerful political figures, including the former and current presidents of Honduras. Hernández was complicit in at least two murders. Today, Tony Hernández was rightly sentenced to life in prison.”
Special Agent in Charge Wendy C. Woolcock said: “Exploiting a high-ranking position in government to wield the power of the state to support drug trafficking is as nefarious as it comes. The conviction and sentencing of Tony Hernandez is a reminder there is no position powerful enough to shield you from facing justice when you violate U.S. drug laws by sending tons of cocaine to our country. As important as this conviction is to the people of the United States, it is also important to the citizens of Honduras who Hernandez purposely put in harm’s way for his own personal gain. Today’s sentencing is a victory for the rule of law and we are grateful to our federal and international partners who made this possible.”
As reflected in the Superseding Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:
HERNÁNDEZ played a leadership role in a violent, state-sponsored drug trafficking conspiracy. Over a 15-year period, HERNÁNDEZ manufactured and distributed at least 185,000 kilograms of cocaine that was imported into the United States. HERNÁNDEZ commanded heavily armed members of the Honduran military and Honduran National Police; he sold machineguns and ammunition to drug traffickers, some of which he obtained from the Honduran military; he controlled cocaine laboratories in Colombia and Honduras; he secured millions of dollars of drug proceeds for Honduras’s National Party campaigns in connection with presidential elections in 2009, 2013, and 2017; and he helped cause at least two murders. HERNÁNDEZ made at least $138.5 million through his drug trafficking activities, money he was ordered to forfeit in connection with today’s sentencing.
Hernández’s Drug Trafficking Conduct
HERNÁNDEZ’s drug trafficking career started in about 2004 when he began providing sensitive law enforcement and military information to major Honduran drug traffickers Victor Hugo Diaz Morales, a/k/a “El Rojo,” and Hector Emilio Fernandez Rosa, a/k/a “Don H.” HERNÁNDEZ provided Diaz Morales with information about, among other things, operations of the Honduran Navy; efforts by the United States to train Honduran Air Force pilots to fly at night to conduct anti-narcotics operations; military radar capabilities so that cocaine plane shipments could avoid detection; and interdiction efforts by certain Honduran National Police officials. Over the course of their relationship, HERNÁNDEZ helped Fernandez Rosa and Diaz Morales distribute approximately 140,000 kilograms of cocaine.
By 2008, HERNÁNDEZ’s narcotics trafficking had expanded, and he was also manufacturing his own cocaine in a laboratory he controlled near El Aceitico, Colombia. HERNÁNDEZ told his co-conspirators that some of the cocaine manufactured at his laboratory was stamped with his initials “TH,” and a photograph of a kilogram of “TH” stamped cocaine was intercepted during the course of the investigation. HERNÁNDEZ supplied his co-conspirators with tons of cocaine that was produced at his laboratory.
Beginning in about 2008, HERNÁNDEZ partnered with Amilcar Alexander Ardon Soriano, a former Honduran drug trafficker and mayor, under the protection of members of the National Party leadership. Testimony at trial established that HERNÁNDEZ and Ardon Soriano secured protection from investigation, arrest, and extradition through massive bribes paid to high-ranking politicians, including, among others, Porfirio “Pepe” Lobo Sosa and Juan Orlando Hernández. In connection with the 2009 national elections, drug proceed bribes paid in exchange for protection included: (i) Ardon Soriano paying $2 million to support Lobo Sosa’s campaign for presidency and Juan Orlando Hernández’s reelection campaign for a position in the Honduran congress; (ii) Diaz Morales paying $100,000 to HERNÁNDEZ to support National Party campaigns; and (iii) Ardon Soriano bribing three congressmen at the direction of Juan Orlando Hernández so that the congressmen would support Juan Orlando Hernández’s efforts to become president of the congress.
Juan Orlando Hernandez was named president of the congress in early 2010. HERNÁNDEZ, Ardon Soriano, and their co-conspirators, including co-defendant Mario Jose Calix Hernández, a Honduran deputy mayor, and codefendant Mauricio Hernández Pineda, a then-member of the Honduran National Police and HERNÁNDEZ’s cousin, took advantage of National Party protection to continue transporting huge quantities of cocaine. Once or twice a month in 2010, HERNÁNDEZ sent Ardon Soriano cocaine shipments consisting of approximately 300 kilograms; and once a month in 2011 and 2012, HERNÁNDEZ sent Ardon Soriano maritime cocaine shipments ranging in size from 700 to 1,600 kilograms.
In 2013, HERNÁNDEZ was campaigning to become a congressman and Juan Orlando Hernández was campaigning to become president. Around this time, according to testimony at trial, Juan Orlando Hernández solicited $1.6 million in drug proceeds from Ardon Soriano to support himself and National Party campaigns. Also during the 2013 campaign, HERNÁNDEZ accepted $1 million from former Sinaloa Cartel leader Joaquín Archivaldo Guzmán Loera, a/k/a “Chapo,” to support Juan Orlando Hernández’s presidential campaign. During meetings with Chapo in Honduras, HERNÁNDEZ promised to provide protection for members of their conspiracy and their cocaine shipments through Honduran territory if Juan Orlando Hernández was elected president.
In November 2013, HERNÁNDEZ was elected to the Honduran congress and Juan Orlando Hernández was elected president. Between 2015 and 2017, per trial testimony, HERNÁNDEZ and Juan Orlando Hernández continued to secure large sums of drug proceeds for National Party campaigns in exchange for protecting drug traffickers. For example, there was testimony at trial that approximately six months before the November 2017 national elections, HERNÁNDEZ and Juan Orlando Hernández met with Ardon Soriano in Copán, Honduras. During that meeting, HERNÁNDEZ and Juan Orlando Hernández solicited $500,000 and 1.6 million Lempira in drug proceeds from Ardon Soriano to “finance” the National Party’s campaign in the Copán and Lempira Departments.
In 2018, HERNÁNDEZ continued to engage in large cocaine shipments with Nery López Sanabria, another significant Honduran drug trafficker. Honduran authorities arrested and detained López Sanabria in connection with a traffic incident and recovered, among other things, several drug ledgers in a secret compartment of his car. One of the ledgers was labeled “Hard Work” 2018, and reflected a 650-kilogram cocaine shipment with HERNÁNDEZ. At least one of the other ledgers seized by Honduran law enforcement in 2018 contained references to “JOH,” initials used by Juan Orlando Hernández. López Sanabria was murdered in a Honduran prison, as described below, shortly after his drug ledgers were introduced at HERNÁNDEZ’s trial.
Hernández’s Weapons Possession and Acts of Violence
HERNÁNDEZ used firearms throughout his drug trafficking. HERNÁNDEZ’s personal weapons included a modified AR-15, an Uzi inscribed with the name of Juan Orlando Hernández, “Presidente de la República,” and an M60 belt-fed machinegun. HERNÁNDEZ also sold machineguns and ammunition to drug traffickers. In 2010, Diaz Morales obtained between 4,000 and 6,000 rounds of assault rifle ammunition from a member of the Honduran National Police who told Diaz Morales he obtained the ammunition from HERNÁNDEZ. In 2012, HERNÁNDEZ supplied 40 M16s to another drug trafficker.
HERNÁNDEZ also coordinated at least two drug-related murders. In 2011, HERNÁNDEZ and Ardon Soriano caused the murder of a rival drug trafficker named Franklin Arita in the Copán Department. HERNÁNDEZ directed Juan Carlos “Tigre” Bonilla Valladares, the regional Honduran National Police chief responsible for the Copán Department at the time, to arrange for Arita’s murder, which was executed by assassins using two 40-millimeter grenade launchers, M16s, and Israeli-made Galil assault rifles. In 2013, HERNÁNDEZ worked with other drug traffickers, including Ardon Soriano, to murder a drug trafficker named Chino because HERNÁNDEZ was concerned that Chino might cooperate with law enforcement.
Hernández’s Obstruction and Other Efforts to Influence the Investigation
HERNÁNDEZ made false statements to law enforcement and the Court during the course of this investigation and prosecution, and he obstructed justice. HERNÁNDEZ (i) traveled to the United States in 2016 and made false statements to law enforcement about his drug trafficking activities; (ii) made false statements about his assets during a January 2019 bail hearing; (iii) caused sensitive witness information to be disclosed in Honduras in violation of a protective order in October 2019; and (iv) made false statements about his assets during an application for appointed counsel in February 2020.
Eight days after the jury found HERNÁNDEZ guilty, on October 26, 2019, López Sanabria – the drug trafficker from whom were seized the ledgers bearing HERNÁNDEZ’s name and Juan Orlando Hernández’s initials – was murdered at a maximum security prison in Honduras. López Sanabria’s attorneys confirmed to the media that: one of HERNÁNDEZ’s family members and an investigator hired by HERNÁNDEZ’s family had made unauthorized visits to López Sanabria prior to HERNÁNDEZ’s trial; López Sanabria had rejected their efforts to obtain information about whether he was cooperating with the DEA; and López Sanabria had planned to cooperate with the DEA against Juan Orlando Hernández and HERNÁNDEZ. Leaked surveillance video of the murder shows López Sanabria talking to the warden of the facility, Pedro Ildefonso Armas, while a masked man walks past and unlocks a nearby door. Several individuals who are believed to be prisoners then storm through the door and shoot and stab López Sanabria to death. On December 9, 2019, a group of unknown assailants murdered Jose Luis Pinto, a lawyer who represented López Sanabria. Three days later, on December 12, 2019, a group of unknown gunmen on motorcycles murdered Ildefenso Armas, the warden of the facility in which López Sanabria was murdered, in Tegucigalpa.
Hernández’s Co-Conspirators
On August 8, 2019, Fernandez Rosa was sentenced in this District to life in prison for, among other things, his participation in HERNÁNDEZ’s cocaine importation conspiracy and for committing 18 murders. Several of HERNÁNDEZ’s other co-conspirators, including, among others, Hernández Pineda, Calix Hernández, Bonilla Valladares, Arnaldo Urbina Soto, Carlos Fernando Urbina Soto, and Miguel Angel Urbina Soto, are also charged in this District with firearms and drug trafficking offenses based on, among other things, their participation in HERNÁNDEZ’s cocaine importation conspiracy. On February 12, 2020, Hernández Pineda surrendered in this District and he is awaiting trial. On March 22, 2021, HERNÁNDEZ’s co defendant and co-conspirator Geovanny Fuentes Ramirez was convicted at trial in this District of drug trafficking and weapons offenses. Fuentes Ramirez’s sentencing is scheduled for June 22, 2021.
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In addition to the prison term, HERNÁNDEZ, 42, was sentenced to five years of supervised release.
Ms. Strauss praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, OCDETF New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Matthew Laroche, and Jason A. Richman are in charge of the prosecution.
Former Government Contracting Officer Sentenced for Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme while she served as a contracting officer for the Broadcasting Board of Governors (BBG).
“The defendant sold out her position by receiving bribe payments in exchange for providing preferential treatment to a contracting firm that received millions of dollars in taxpayer money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of our firm commitment to seeking equal justice under the law and holding accountable government officials who betray their oaths and violate the public’s trust.”
According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for the BBG’s International Broadcast Bureau, Office of Contracts until September 2017. Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.
In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for preferential treatment and the performance of official acts benefitting the firm.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments. Instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative, and Sturgis instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
“When a public official accepts bribes during the government contracting process, it is a betrayal of the U.S. taxpayer and the principle of fairness in government contracting,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s sentencing is yet another example of the dedication and perseverance of the FBI and our partners to root out corruption and deceit. Sturgis defrauded the U.S. and taxpayers and will be held accountable for her unlawful and duplicitous actions.”
On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
The Department of State’s Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Public Integrity Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-158.
Former Contracting Officer Sentenced for Bribery ConspiracyRead the Press Release
A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme.
According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for in the International Broadcast Bureau, Office of Contracts, of the Broadcasting Board of Governors (the BBG) until September 2017. In that capacity, Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.
In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for Sturgis giving the firm preferential treatment.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments; instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative and instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The Department of State, Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Boston Police Captain Arrested for Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Captain was arrested today and charged in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Richard Evans, 62, of Hanover, was charged in an indictment unsealed today with one count of conspiracy to commit theft concerning programs receiving federal funds, one count of embezzlement from an agency receiving federal funds, one count of conspiracy to commit wire fraud and three counts of wire fraud. Evans will make an initial appearance via videoconference in federal court in Boston later today.
“The public counts on police supervisors to lead by example and serve as models of honor, integrity and professionalism,” said Acting United States Attorney Nathaniel R. Mendell. “When they break the law for personal financial gain with the officers they supervise, they not only violate the trust of the public, but they dishonor their fellow officers. I want to thank the Boston Police Department for its continued cooperation with our investigation.”
“Captain Richard Evans is accused of betraying the public’s trust, and the reputation of his fellow police officers, by conspiring with officers he supervised at BPD’s Evidence Control Unit to steal tens of thousands of dollars in taxpayer money for work they did not do, over the course of five years,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It is deeply troubling when officers who have sworn to uphold the law violate their oath and use their badge as a license to commit a crime. We would like to thank the Boston Police Department for its cooperation and commitment to ending this practice.”
“Former Captain Evans allegedly conspired to commit theft and defraud taxpayers. The alleged conduct is antithetical to the job we trust law enforcement officers to do – uphold the law and act with honesty and integrity,” said Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
According to the indictment, Evans oversaw the BPD’s Evidence Control Unit (ECU), which was responsible for, among other things, storing, cataloging and retrieving evidence at the warehouse. ECU officers were eligible to earn overtime pay of 1.5 times their regular hourly pay rate for overtime assignments. It is alleged that beginning in at least March 2015, Evans and other officers routinely departed overtime shifts two or more hours early but submitted false and fraudulent overtime slips claiming to have worked the entirety of each shift.
The indictment alleges that the fraud occurred during one overtime shift, called “purge” overtime, that was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4:00 to 8:00 p.m. on weekdays. On days which Evans claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often by 6:00 p.m. or earlier. Despite this, it is alleged that Evans routinely submitted false and fraudulent overtime slips claiming to have worked from 4:00 to 8:00 p.m. Evans also endorsed the fraudulent overtime slips of his subordinates.
From March 2015 to February 2019, Evans and his co-conspirators allegedly collected tens of thousands of dollars in fraudulent overtime. Specifically, Evans allegedly received over $12,395 for overtime hours he did not work and endorsed dozens of fraudulent overtime slips submitted by subordinates.
From 2015 through 2018, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, FBI Boston SAC Bonavolonta and DOJ-OIG SAC Cunningham made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced for Failing to Pay Child SupportRead the Press Release
CONCORD - Richard E. Goulet, Jr., 51, of Ocala, Florida, was sentenced to five years of probation for failing to pay child support, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in December of 2007, a decree of divorce was issued in the Portsmouth Family Division Court ordering Goulet to pay support in a specified amount for his three children, all of whom are residents of New Hampshire.
Since the date of the decree in 2007, the defendant failed to pay child support as ordered by the court. He owed over $100,000.00 in unpaid support at the time of his arrest. Prior to sentencing, he paid over $107,000 of past-owed child support to bring his obligations current. His sentence also includes a mandatory condition requiring him to keep his monthly support obligations current.
Goulet previously pleaded guilty on October 23, 2019.
“Out-of-state parents who fail to meet their child support obligations are committing a federal crime,” said Acting U.S. Attorney Farley. “Unfortunately, it took a federal prosecution to make this defendant finally pay over $100,000 in child support. This case should send a serious message to deadbeat parents that failing to pay court-ordered child support can result in serious consequences, including a federal felony conviction.”
“Failing to pay court-ordered child support is a federal crime,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We appreciate our partnership with the New Hampshire United States Attorney’s Office in the investigation and prosecution of such cases.”
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Charles Rombeau and former Assistant U.S. Attorney Helen Fitzgibbon.
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Federal Jury Convicts Nepalese Man of Attempting to Entice and Meet A Pregnant 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – A federal jury has found Sanjay Lama (32, Jacksonville) guilty of using the internet to attempt to entice a 12-year-old child to engage in sexual activity. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Lama was arrested on September 25, 2019, in Jacksonville and has been detained since that date. A sentencing hearing is scheduled for July 19, 2021. Lama is a citizen of Nepal who, at the time of this offense, was legally residing in Jacksonville and working as an information technology specialist for a local company.
According to evidence and testimony introduced during the five-day trial, on September 25, 2019, an undercover FBI agent who was posing online as a pregnant 12-year-old girl, was contacted by Lama, who was using the screen name “Awesome_Jack.” Lama and the undercover agent engaged in online conversation using a social media app known both for its anonymity as well as for being a way to meet others online for sex. Throughout that day, Lama sent 160 text messages in which he expressed his desire to meet the 12-year-old “child” to engage in sexual activity. Lama provided graphic descriptions of the sexual acts that he wanted to perform on the “child.” Later that afternoon, Lama left his workplace in downtown Jacksonville and rode his motorcycle to a prearranged location at a shopping center in south Jacksonville to meet the “child.” His plan was to take her to her nearby residence for sex. When he arrived at the meeting location, Lama was approached by FBI agents as he was texting with the “child” on his cellphone and was arrested.
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Fayette County Woman Charged with Stealing Government PropertyRead the Press Release
PITTSBURGH - A resident of White, Pennsylvania, has been indicted by a federal grand jury on a charge of committing theft of government property, Acting United States Attorney Stephen R. Kaufman, announced today.
The one-count Indictment named Jacqueline Knupp, 41, as the sole defendant.
According to the Indictment, Knupp stole approximately $1,794.21 in currency from the United States.
The law provides for a maximum total sentence of not more than 10 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.
Dominican National Pleads Guilty to Drug Charges and Misuse of a Social Security NumberRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to conspiracy to distribute more than 40 grams of fentanyl and misusing a Social Security number.
Bladimir Sanchez Soto, 29, formerly of Methuen, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of false representation of a Social Security number. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 27, 2021. Sanchez Soto was indicted in May 2020.
As stated during court proceedings, Sanchez Soto helped arrange four sales of approximately 65 grams of fentanyl in November 2019 and January 2020. In February 2020, Sanchez Soto and a co-defendant were arrested and additional fentanyl was seized. Sanchez Soto was previously indicted in the Western District of Michigan in connection with using a false name and Social Security number to obtain a Michigan driver’s license in Nov. 2016. The matter was transferred to the District of Massachusetts for plea and sentencing.
The charge of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl provides for a minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a $5 million fine. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Delaware man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Andre Jason Burgos, of Wilmington, Delaware, has admitted to his role in a drug distribution enterprise, Acting United States Attorney Randolph J. Bernard announced.
Burgos, also known as “Ghost,” 30, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Burgos admitted to working with others to sell cocaine hydrochloride, cocaine base, heroin, and fentanyl from June 2019 to October 2020 in Berkeley County and elsewhere.Burgos faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Dallas Man Pleads Guilty to Obstructing IRS LawsRead the Press Release
A Dallas man pleaded guilty today to attempting to obstruct the due administration of the internal revenue laws of the United States, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
According to court records, between 2009 and 2017, David Marcus Easler, 58, earned approximately $836,699 in wages. As of January 2019, Mr. Easler had an outstanding tax balance of approximately $326,257. This substantial tax due was a result of his longstanding failure to pay his income taxes dating back to 1996.
Since at least 2004, the IRS sent several Notices of Levy on Wages to Mr. Easler to collect past due income taxes. When the IRS became aware of his employment with a particular company, the IRS attempted to collect past due income taxes by either withholding taxes from his salary, or by using tax levies and/or garnishment of wages from Mr. Easler's employer.
In direct response to IRS efforts to collect his past due taxes, Mr. Easler filed four different voluntary petitions for bankruptcy. With some of these bankruptcy filings, Mr. Easler submitted false and fraudulent tax returns and other tax return related documents. For example, as part of his 2009 bankruptcy filing, he submitted several income tax returns that falsely reported that he made “0” dollars of taxable income.
In 2011 and 2013, Mr. Easler signed and filed with the IRS three false U.S. Nonresident Alien Income Tax Returns, Form 1040NR, in which he fraudulently represented that he was a non-resident of the United States living in the foreign country of Texas. In these forms, Mr. Easler also falsely claimed that he was due tax refunds.
From 2012 through 2015, Mr. Easler provided several of his employers with false Employee's Withholding Certificates, Form W-4, in which he fraudulently inflated the number of exemptions to reduce the amount of income taxes withheld from his paychecks. On some Forms W-4, Mr. Easler falsely claimed he was "exempt" from the withholding of any taxes from his paychecks.
On November 17, 2014, Mr. Easler testified at bankruptcy hearing before a United States Bankruptcy Judge. During the hearing, the Bankruptcy Judge told Mr. Easler that his theory to justify his non-payment of income taxes was "all a big ruse to keep people from paying taxes.” The United States Bankruptcy Judge also told Mr. Easler that his theory amounted to a ''tax evasion system" and said if Mr. Easler continued to refuse to pay his income taxes, "it's not going to do anything for you in the courts of this country. You're just wasting your time."
Even after these warnings, Mr. Easler did not change course and continued his efforts to impede the IRS by filing two additional bankruptcy petitions in 2015 and 2016 to obstruct IRS tax collection efforts.
“Every citizen of this country has a lawful duty to report their taxable income and pay their fair share of taxes: there is no gray area on the subject,” said Mark Pearson, IRS Criminal Investigation Special Agent in Charge. “Not only did Mr. Easler choose to ignore his duty to pay taxes for over 20 years, he repeatedly attempted to obstruct IRS collection efforts. Mr. Easler is now a convicted felon. The IRS and Department of Justice remain determined and vigilant in investigating and prosecuting those who willfully refuse to pay taxes on their income and thus undermine the integrity of the U.S. tax system."
Mr. Easler now faces up to three years in federal prison. His sentencing has been set for August 13, 2021.
IRS Criminal Investigation is conducting the investigation. Assistant U.S. Attorney David Jarvis is prosecuting the case.
Crownpoint man charged with two counts of aggravated sexual abuseRead the Press Release
ALBUQUERQUE, N.M. – Emerson Pinto, 58, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, made his initial appearance in federal court on March 29 on an indictment charging him with two counts of aggravated sexual abuse in Indian Country. Pinto will remain in custody pending an arraignment scheduled for March 31.
v Pinto was indicted by a federal grand jury on March 12. According to the indictment, between on or about Sept. 1, 2009 and Oct. 31, 2009, Pinto allegedly engaged in and attempted to engage a sexual act with Jane Doe 1 and Jane 2. At the time of the offense, the victims were both under the age of 12. The alleged incident occurred on the Navajo Nation.
If convicted, Pinto faces up to life in prison. An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty.
The FBI investigated this case with assistance from Navajo Nation Police Department. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Covington Man Sentenced for Making a False Declaration in Connection with a BankruptcyRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that PENH KANG (“KANG”), age 42, of Covington, Louisiana, was sentenced today for Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).
According to documents filed in federal court, on or about the 12th day of September 2017, in the Eastern District of Louisiana, KANG, knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury, as permitted under Section 1746 of Title 28, in and in relation to a case under Title 11, In re Pehn Kang, No.17-12431. KANG submitted a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions. Additionally, KANG failed to disclose gambling losses of approximately $40,000 to $60,000, an interest in two Capital One Bank accounts, and a $50,000 life insurance policy.
U.S. District Judge Greg G. Guidry sentenced KANG to probation for a term of 24 months.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Court Enters $4.5 Million Judgment Against Owner of Defunct Urine Drug Testing Laboratory Resolving Allegations of Participation in Kickback SchemesRead the Press Release
CHARLOTTE, N.C. – Acting United States Attorney for the Western District of North Carolina William T. Stetzer announced today that the United States District Court for the Western District of North Carolina entered final judgment in the amount of $4.5 million against Douglas Smith, resolving the United States’ claims against Smith, one of the former owners of Physicians Choice Laboratory Services (PCLS), a now-defunct diagnostic testing laboratory formerly located in Charlotte, North Carolina and Rock Hill, South Carolina. Smith consented to entry of final judgment against him to resolve allegations that he violated the Anti-Kickback Statute (AKS), and, as a result, caused PCLS to submit millions of dollars in false claims for reimbursement to the Medicare program in violation of the federal False Claims Act (FCA).
In June of 2019 the United States filed its Complaint in Intervention asserting FCA claims against Smith, PCLS and other agents of the laboratory based on allegations that they participated in various schemes to offer or provide benefits to physicians in exchange for the referral of patient samples for drug testing. The United States contended that such conduct violated the AKS, which specifically forbids any person or entity from knowingly and willfully offering, paying, soliciting, or receiving remuneration to influence the referral of items or services reimbursable by a federal health care program, and, that as a result, it was entitled to recover damages under the FCA.
This settlement resolves the United States’ allegations that from September 2012 through July 2014, PCLS submitted false claims to the Medicare program as a result of Smith’s payment of kickbacks to the owner of a medical practice in Knoxville, Tennessee.
Last week, the U.S. Attorney’s Office for the Western District of North Carolina announced that another defendant, Philip McHugh, also a former owner of PCLS, had agreed to pay over $2 million to resolve claims asserted by the United States that he participated in schemes to illegally induce physicians to refer patients to PCLS for urine drug testing. In December of 2019, the U.S. Attorney’s Office announced that another defendant, Manoj Kumar, a former sales representative and manager of PCLS, had paid $649,407 to resolve similar claims.
The United States’ civil action was filed in the District of North Carolina following the filing of two whistleblower complaints under the qui tam provisions of the FCA, titled United States ex rel. Jenkins et al. v. Physician’s Choice Laboratory Services et al., originally filed in the Eastern District of Tennessee, and United States ex rel. Hartnett & Shoched v. Physicians Laboratory Services, LLC et al., originally filed in the Middle District of Florida, which were transferred to the Western District of North Carolina and consolidated under Civil Case No. 17-cv-37.
Resolution of this matter was the result of coordinated efforts and investigation by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Attorney’s Office. The claims resolved by entry of the judgment are allegations only and there has been no determination of liability.
Cortland County Woman Pleads Guilty to Child Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Sarah Gates, age 39, of Cortland, New York, pled guilty today to a three-count information charging that she, together with Christopher M. Perry, conspired to sexually exploit, and sexually exploited, a child under five years of age for the purpose of producing images of the abuse.
The announcement was made by the Acting United States Attorney Antoinette T. Bacon and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of her guilty plea, Gates admitted that on several occasions in 2017, she and Christopher M. Perry sexually exploited a child under five years of age while taking photographs using two cell phones.
Christopher M. Perry pled guilty to the same offenses on April 9, 2020 and was sentenced on November 3, 2020 to serve 540 months (45 years) in federal prison.
Senior United States District Judge Thomas J. McAvoy will sentence Gates on July 28, 2021. Each of the three crimes to which Gates pled guilty carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000.00, and a term of post-imprisonment supervised release of at least 5 years and up to life. She will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant United States Attorney Adrian S. LaRochelle as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ 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.
Corporate Officer Sentenced to Prison for Medicaid FraudRead the Press Release
NEW BERN, N.C. – A Greensboro woman was sentenced today to 37 months in prison and also ordered to make restitution in the amount of $ 213,927.55 to the North Carolina Medicaid program for Conspiracy to Commit Health Care Fraud.
According to court documents, Pamela Grace Faulkner, 60, was the sole officer of Skeen Services, Inc., which was a company with offices in Greensboro, Greenville, Lumberton, and Wilson, North Carolina. In 2013 and 2014, Faulkner’s co-conspirator, Renee Christine Borunda, submitted over 4,500 fraudulent claims to Medicaid which falsely represented that behavioral health services had been provided to over 190 North Carolinians when in fact the services had not been provided. Faulkner was aware that Borunda was submitting the false claims. They had agreed to split the monies from the fraudulent claims. Medicaid paid Skeen Services, Inc. approximately $213,927.55 for these false claims by electronically depositing the funds into an account over which Faulkner had control. Faulkner then paid Borunda approximately $144,000.
Borunda was previously sentenced on November 7, 2018, to 37 months in federal prison followed by 3 years of supervised release for Conspiracy to Commit Health Care Fraud in violation of 18 U.S.C. § 1349 and Aggravated Identity Theft in violation of 18 U.S.C. § 1028A.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan.
The North Carolina Department of Justice’s Medicaid Investigations Division (“MID”) and the Internal Revenue Service - Criminal Investigation investigated this case. Assistance was provided by the Office of Compliance and Program Integrity of the North Carolina Division of Health Benefits, EastPointe, Sandhills Center, and Trillium Health Resources. Assistant United States Attorney John Parris and Special Assistant United States Attorney Mike Heavner prosecuted the case.
The MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-cr-00059-FL
Connecticut Nurse Pleads Guilty to Tampering with Liquid MorphineRead the Press Release
BOSTON – A Connecticut nurse pleaded guilty today in federal court in Springfield to tampering with liquid morphine prescribed to a patient.
Danielle Works, 42, of Stafford Springs, Conn., pleaded guilty to one count of tampering with a consumer product before U.S. District Court Judge Mark G. Mastroianni, who scheduled sentencing for June 2, 2021. Works was charged in Oct. 2020.
On Jan. 27, 2018, Works tampered with a bottle of morphine prescribed to a patient at Governor’s Center, a nursing facility in Westfield, by removing the morphine from the bottle and diluting the remaining morphine with another substance. The morphine was prescribed to a hospice patient, who subsequently received diluted doses of the medication shortly before her death. After ingesting the morphine, Works was observed to be significantly impaired while providing care to patients at the nursing facility.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Christopher Looney of Mendell’s Health Care Fraud Unit is prosecuting the case.
Company agrees to pay more than $315K to resolve allegations of false claims involving U.S. Disadvantaged Business Enterprise programRead the Press Release
COLUMBUS, Ohio — A highway construction company based in Summit County, Ohio has agreed to pay the United States $315,252.92 to settle a False Claims Act lawsuit claiming that the company violated the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) program rules that are designed to encourage participation by women- and minority-owned businesses.
The settlement agreement resolves allegations that Karvo Companies filed claims for payment falsely certifying that they were complying with the U.S. Department of Transportation and the Ohio Department of Transportation’s DBE) program requirements, including falsely claiming that their subcontractors were eligible under the DBE requirements and were providing “commercially useful functions” as part of two highway construction projects between 2015 and 2018.
“The payment includes restitution and interest,” said Acting U.S. Attorney Vipal J. Patel, “and the settlement agreement sends a good message to contractors participating in government DBE programs that we will act if they don’t fulfill their end of the contract and follow the rules.”
“The settlement agreement entered into today confirms our steadfast commitment to maintaining the integrity of the U.S. Department of Transportation’s (DOT) Disadvantaged Business Enterprise program,” said Andrea M. Kropf, Special Agent-in-Charge, Midwestern Region, DOT Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from actions that undermine DOT-funded programs and projects and the public trust.”
The case was filed under the qui tam provisions of the False Claims Act and was filed on behalf of the United States by a former employee of the company. The former employee will receive a share of the settlement amount.
The settlement is not an admission of liability by Karvo, however, the United States concluded that its claims were well-founded.
Deputy Civil Chief Andrew M. Malek is representing the United States in this case.
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Butler County Woman Charged with Issuing Money Orders to HerselfRead the Press Release
PITTSBURGH - A resident of Cabot, Pennsylvania, has been indicted by a federal grand jury on a charge of fraudulently issuing money orders, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Connie Hedrick, age 68, as the sole defendant.
According to the Indictment, from on or about June 25, 2019, to on or about March 31, 2020, Hedrick was caught fraudulently issuing money orders to herself.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than 3 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 the 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.
Browning man admits murder, kidnapping on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man today admitted to murdering a man and to holding a woman hostage by knifepoint on the Blackfeet Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Jason Avery Mattson, 30, pleaded guilty to second degree murder and to kidnapping as charged in an indictment. Mattson faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 24. Mattson was detained.
In court documents filed in the case, the government alleged that on March 3, 2020, law enforcement was called to the Blackfeet Indian Reservation after the discovery of a body, which showed signs of homicide. The body was identified as John Doe. An autopsy confirmed the manner of death was homicide, with evidence of blunt force injury.
In addition, the government alleged that on March 10, 2020, Mattson called Blackfeet Law Enforcement Services, confessed to killing John Doe and told dispatch he had a knife and a gun. While officers were responding to the residence, Mattson called again and told dispatch he was holding a hostage, identified as Jane Doe, at knifepoint. Mattson threatened to kill Jane Doe and held her hostage for about four hours before she was able to escape. Mattson was taken into custody.
Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the FBI, Bureau of Indian Affairs and Blackfeet Law Enforcement Services.
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