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29 March 2021
Dubuque Man Who Sold Near-Fatal Dose of Heroin Sentenced to over Five Years in Federal PrisonRead the Press Release
A felon who escaped from a Waterloo halfway house and was later found with a firearm pled guilty today in federal court in Cedar Rapids.
Nicholas Cameron Anderson, age 32, from Dubuque, Iowa, was convicted of one count of escape from custody and one count of being a felon in possession of a firearm.
Court records show that Anderson pled guilty in 2016 in the Northern District of Iowa to being a felon in possession of a firearm. He was sentenced in 2017 to 63 months in federal prison. At the plea hearing, Anderson admitted that, while he was still a federal inmate serving that sentence, he was housed at a residential re-entry center in Waterloo, Iowa. In September 2020, Anderson left custody without authorization. Anderson also admitted that in January 2021, he was found in possession of a pistol in Dubuque, Iowa. In addition to the federal firearm conviction, Anderson had previously been convicted of three other felonies in state court in Dubuque: theft from a person in 2007; burglary in the third degree in 2007; and escape in 2009.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Anderson remains in custody of the United States Marshal pending sentencing. Anderson faces a possible maximum sentence on the escape charge of 5 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. He also faces a possible maximum sentence on the firearm charge of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; 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. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1010-CJW. Anderson’s prior federal case file number was 16-CR-01030-1-LRR.
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Dubuque Man Pleads Guilty to Escaping Custody and Being a Felon in Possession of a FirearmRead the Press Release
A felon who escaped from a Waterloo halfway house and was later found with a firearm pled guilty today in federal court in Cedar Rapids.
Nicholas Cameron Anderson, age 32, from Dubuque, Iowa, was convicted of one count of escape from custody and one count of being a felon in possession of a firearm.
Court records show that Anderson pled guilty in 2016 in the Northern District of Iowa to being a felon in possession of a firearm. He was sentenced in 2017 to 63 months in federal prison. At the plea hearing, Anderson admitted that, while he was still a federal inmate serving that sentence, he was housed at a residential re-entry center in Waterloo, Iowa. In September 2020, Anderson left custody without authorization. Anderson also admitted that in January 2021, he was found in possession of a pistol in Dubuque, Iowa. In addition to the federal firearm conviction, Anderson had previously been convicted of three other felonies in state court in Dubuque: theft from a person in 2007; burglary in the third degree in 2007; and escape in 2009.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Anderson remains in custody of the United States Marshal pending sentencing. Anderson faces a possible maximum sentence on the escape charge of 5 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. He also faces a possible maximum sentence on the firearm charge of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; 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. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1010-CJW. Anderson’s prior federal case file number was 16-CR-01030-1-LRR.
Follow us on Twitter @USAO_NDIA.
Davis Man Pays $635,000 in Civil Settlement to Resolve Allegations of False Statements to Obtain Grant FraudsRead the Press Release
SACRAMENTO, Calif. — Owen Hughes, the sole proprietor of Eon Research Corporation in Davis, agreed to pay the United States $635,000 to resolve allegations that he knowingly submitted false statements to the National Institute of Environmental Health Sciences to secure Small Business Innovation Research grant funds, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2007, Hughes applied for and received a Small Business Innovation Research grant to conduct environmental research, certifying that he had implemented financial safeguards to ensure the proper use of grant funds.
The settlement resolves allegations that despite his certifications, Hughes had no financial policies in place. As a result, Hughes could not substantiate how he had actually used the federal funds he received. The settlement also resolves claims that Hughes commingled grant funds in his personal accounts and then used the commingled funds for his aviation hobby, by paying aircraft hangar rental fees and buying aircraft parts.
“This settlement sends a clear message that recipients of federally funded grants must strictly adhere to the regulations applicable to those grants and fully account for their use of federal funds,” Acting U.S. Attorney Talbert said. “Recipients who fail to do so risk significant consequences.”
“Establishing required financial policies is a key component to proper accounting of SBIR grants. Therefore, it is imperative that individuals and entities implement sound policies to avoid mismanagement of these limited funds,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our auditors and law enforcement partners, we will continue preserving the integrity of all our grant programs.”
“It is vital that agencies work together to hold grantees accountable for the use of taxpayer funds,” said Lori Pilcher, Regional Inspector General for Audit Services at the U.S. Department of Health and Human Services. “In this case, using forensic tools, our auditors identified suspicious grant disbursements and partnered closely with investigators and the United States Attorney’s Office throughout the investigation.”
The National Institute of Environmental Health Sciences is a component of the National Institutes of Health, which is itself a component of U.S. Department of Health and Human Services.
This case was the result of an investigation by the HHS Office of the Inspector General. Assistant U.S. Attorneys Colleen Kennedy, Rachel Muoio, and Steven Tennyson handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Convicted Sex Offender in Gastonia, N.C. Is Sentenced to 12 Years for Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Joseph Soldano, 44, of Gastonia, N.C., was sentenced to 12 years in prison today for possession of child pornography. In addition to the prison term imposed, U.S. District Judge Frank D. Whitney ordered Soldano to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $22,000 in special assessment fees and $3,000 as restitution.
According to information contained in filed documents and statements made in court, in April 2019, law enforcement determined that an individual later identified as Soldano was using the Kik instant messaging application to communicate with another individual about the sexual abuse of minors, and to receive images containing visual depictions of minors engaging in sexually explicit conduct. Law enforcement visited Soldano’s residence and seized a cell phone. A forensic review of the seized device revealed that Soldano possessed multiple images and videos depicting the sexual abuse of children, including toddlers and infants. On August 18, 2020, Soldano pleaded guilty to possession of material containing child pornography that involved a prepubescent minor. At the time he committed the offense, Soldano was required to register as a sex offender based on his 2001 conviction of Second Degree Sexual Abuse involving an 8-year-old female victim in New York.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for their investigation of the case, and thanked the Gaston County Police Department for their invaluable assistance.
Assistant U.S. Attorneys Cortney Randall and Emily Wasserman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
The 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 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.
Convicted Juvenile Sex Trafficker from Delaware Sentenced to 35 Years in PrisonRead the Press Release
PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that Dkyle Bridges, 35, of Claymont, DE, was sentenced to 35 years in prison, ten years of supervised release, and was ordered to pay $53,000 in restitution to his victims and a special assessment of $30,000 under the Justice for Victims of Trafficking Act by United States District Court Judge Nitza I. Alejandro-Quiñones for running a multi-state sex trafficking operation that brutally victimized vulnerable young women and girls for many years.
In April 2019, following a two-week jury trial, the defendant was found guilty of all charges, specifically: one count of conspiracy to engage in sex trafficking by force, fraud and coercion and in sex trafficking of minors; two counts of sex trafficking of adults by force, fraud, and coercion; and three counts of sex trafficking of minors by force, fraud, and coercion.
The evidence presented at trial showed that for more than five years, Bridges led a sex trafficking operation for his financial gain in which he coerced young women and girls to engage in commercial sex acts in southeastern Pennsylvania, Delaware, and elsewhere. Bridges preyed on vulnerable teenage girls and young women, many of whom were homeless, who needed financial and emotional support in their lives. Bridges lured them into his trafficking circle with false promises of that kind of support and then subjected them to violence – as well as fear of violence -- by making them watch him assault other trafficking victims. Among the tactics Bridges used to abuse and control his victims, as described at trial, included pouring water over them to keep them awake, choking them, and otherwise physically assaulting them. On at least one occasion, he tased his victim in the chest.
In furtherance of the sex trafficking enterprise, Bridges advertised his victims for sex acts using Backpage.com – a website that the Federal Bureau of Investigation has since shut down for its role in advertising and promoting sex trafficking.
Codefendants Kristian and Anthony Jones, among others, assisted Bridges in various capacities in running the sex trafficking operation, including by recruiting and transporting victims, collecting money, and paying for hotel rooms. The codefendants were also convicted at trial and are scheduled to be sentenced later this year.
“Bridges’ crimes were devastating to his victims, who were already facing tremendous challenges in their lives, such as homelessness and a history of abuse,” said Deputy U.S. Attorney Lappen. “Today’s sentence of thirty-five years incarceration reflects the seriousness of his crimes and the irrevocable damage he caused, all in pursuit of financial gain. We will continue to work collectively to investigate and prosecute these destructive crimes committed against some of the most vulnerable members of our community.”
“Dkyle Bridges advertised underage girls and women for sex, profiting from their exploitation,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “These victims were controlled by the constant use or threat of violence, battered both physically and emotionally. Today’s sentence keeps Bridges exactly where he belongs — behind bars, being held to account for his repulsive actions. Know that the FBI and our law enforcement partners are working every day to shut down sex traffickers like this and deliver justice for their victims.”
The case was investigated by Federal Bureau of Investigation with assistance from Tinicum Township Police Department; Newark, Delaware Police Department; Delaware State Police; Delaware River Bay Authority; and Philadelphia Police Department and was prosecuted by Department of Justice Trial Attorney Jessica Urban and Assistant United States Attorney Priya T. De Souza.
Convicted Child Molester Sentenced to 17 Years in Federal Prison for Receiving and Distributing Child PornographyRead the Press Release
PORTLAND, Ore.—A Portland man who previously served 12 years in California state prison for sexually abusing a child was sentenced to federal prison today for enticing an adolescent boy to produce sexually explicit videos of himself and share them via Facebook Messenger, announced Acting U.S. Attorney Scott Erik Asphaug.
Scott Andrew Lawrence, 57, was sentenced to a total of 17 years in federal prison and a life term of supervised release after pleading guilty to receiving and distributing child pornography.
“Scott Lawrence is a sexual predator who posed online as a woman to prey on a vulnerable teenager,” said Acting U.S. Attorney Asphaug. “Online sexual exploitation is a grave threat to children and families, even older children. We implore parents and guardians everywhere to talk frankly with their children about the risks posed by online predators, and to monitor their children’s use of social media.”
“Seventeen years is a rightfully long sentence for a man who has repeatedly abused children. The victims targeted by Scott Lawrence, however, are the ones who will pay a higher price as they must live with the effects of that exploitation for a lifetime,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, in April 2001, Lawrence was convicted in San Diego County Superior Court of sexually abusing a child and sentenced to a total of 14 years in prison. He was paroled in 2013 and completed his parole term three years later. In September 2018, Lawrence was convicted in the U.S. District Court for the District of Oregon of failing to register as a sex offender and, at the end of February 2019, was sentenced to time served plus five years of supervised release.
Three months into his supervised release term, Lawrence began communicating via Facebook Messenger with a 16-year-old boy from South Dakota whose family Lawrence lived with previously. During one exchange, Lawrence confirmed the boy’s age. In online conversations with the boy, Lawrence posed as an adult female named “Mary,” sent the boy several sexually explicit images, and repeatedly asked for videos of the boy masturbating in return. During at least three separate chat conversations, the boy sent Lawrence a total of six videos and one image of himself masturbating. Lawrence sent the image to at least two other people.
FBI agents arrested Lawrence on October 24, 2019. He admitted to chatting with the boy while posing as a woman and asking him for sexually explicit images and videos. He also admitted sending an image of the boy to two other people.
On November 19, 2020, a federal grand jury in Portland returned a nine-count indictment charging Lawrence with production, receipt, and distribution of child pornography, and committing a felony offense involving a minor while registered as a sex offender. On December 21, 2020, he pleaded guilty to distribution and receipt of child pornography.
This case was investigated by the FBI and prosecuted by Gary Y. Sussman, Assistant U.S. Attorney and Project Safe Childhood Coordinator for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California Man Pleads Guilty to COVID-Relief FraudRead the Press Release
A California man pleaded guilty today to perpetrating a scheme to fraudulently obtain approximately $1.8 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
According to court documents, Hassan Kanyike, 29, of Santa Clarita, admitted that he submitted six fraudulent PPP loan applications and two fraudulent EIDL applications. The applications sought funds to purportedly pay the salaries of employees whom he claimed worked for two of his businesses. Kanyike successfully obtained approximately $1 million through four PPP loans, and another $300,000 through two EIDL loans.
In support of the fraudulent PPP loan applications, Kanyike submitted fake federal tax filings and payroll reports. For example, in one loan application, Kanyike falsely claimed the business had 26 employees and an average monthly payroll of $168,000, and he submitted a fabricated IRS tax form claiming Falcon Motors had paid $2,022,300 in payroll in 2019. But Kanyike admitted during his plea that the company had substantially fewer employees and substantially lower payroll. Kanyike further admitted that he obtained additional Employer Identification Numbers from the IRS in April and May 2020, so that he could apply for multiple loans for the same used-car business. Kanyike then used a substantial portion of the PPP loan proceeds for his own personal benefit.
Kanyike was arrested in December 2020 at Los Angeles International Airport just before he was about to board a flight to Dubai. At the time of his arrest, Kanyike had transferred approximately $762,000 to Uganda, his country of citizenship, from one of the business accounts that had received the loan proceeds, in violation of the terms of the PPP and EIDL program.
Kanyike pleaded guilty to one count of wire fraud in the Central District of California. He is scheduled to be sentenced on Aug. 23, and faces a maximum penalty of 20 years in prison. As part of his guilty plea, Kanyike is required to pay approximately $1.3 million in restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tracy L. Wilkison of the U.S. Attorney’s Office for the Central District of California; Special Agent in Charge David A. Prince of the Los Angeles Field Office of Homeland Security Investigations (HSI); and Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
HSI and TIGTA are investigating the case.
Assistant Chief William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Richard E. Robinson of the U.S. Attorney’s Office for the Central District of California are prosecuting the case. The case was previously prosecuted by former Trial Attorney Benjamin Saltzman of the Fraud Section.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program. In April 2020, Congress authorized over $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Broken Bow Resident Sentenced to 72 Months for Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darin Dawayne Tate, age 42, of Broken Bow, Oklahoma, was sentenced to 72 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Idabel Police Department, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment to which the defendant previously entered a guilty plea alleged that on or about March 4, 2020, in the Eastern District of Oklahoma the defendant, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate and foreign commerce.
Acting United States Attorney Christopher J. Wilson said, “Federal law is very clear – felons should not possess firearms or ammunition. Enforcement of this law has long been a priority of the Department of Justice, and this case is a classic example of how local, state and federal law enforcement can work together to accomplish this mission.”
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States. Tate was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Broken Arrow Resident Sentenced to 60 Months, $14,000 Restitution for Involuntary Manslaughter in Indian Country, Driving Under the InfluenceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Addison Paige Clark, age 30, of Broken Arrow, Oklahoma, was sentenced to 60 months’ imprisonment and 3 years of supervised release for Involuntary Manslaughter In Indian Country, in violation of Title 18, United States Code, Sections 1112, 1151 and 1153; and Driving Under The Influence Of Alcohol Or Other Intoxicating Substance Resulting In Great Bodily Injury, in violation of Title 18, United States Code, Sections 13, 1151 and 1152. Clark was also ordered to pay $14,326.26 in restitution. The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Information to which the defendant previously entered a guilty plea alleged that on or about June 21, 2019, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did unlawfully kill Joshua Ray Jackson in the commission of an unlawful act not amounting to a felony, that is operating a motor vehicle under the influence of alcohol and a controlled substance, contrary to Title 47, Oklahoma Statutes Annotated, Section 11-902, without due caution and circumspection and with a wanton and reckless disregard for human life, and knew and should have known that her conduct imperiled the lives of others.
The Information further alleged that on or about June 21, 2019, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did cause an accident in which E.J. suffered great bodily injury while driving a vehicle under the influence of alcohol and a controlled substance that made defendant incapable of safely driving a motor vehicle.
Acting United States Attorney Christopher J. Wilson said, “Driving under the influence of drugs and alcohol is a serious offense and poses a grave danger to the public. Any loss of life is tragic, but it is even more so when the situation could have been avoided by making proper choices. The defendant’s senseless decision to drive her vehicle under the influence of alcohol and cannabinoids resulted in a motorcyclist being killed and the motorcycle passenger being seriously injured. This office is committed to not only holding criminals responsible for their actions, but also supporting the survivors of their needless actions.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton and Assistant United States Attorney Dean Burris represented the United States. Clark was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve her non-paroleable sentence of incarceration.
Brockton Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Anibal Pires, 30, was sentenced by U.S. District Court Judge Allison D. Burroughs to 18 months in prison and three years of supervised release. In February 2020, Pires pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On Nov. 29, 2018, Pires was found in Brockton in possession of a Taurus PT111, 9mm pistol and 10 rounds of 9 mm ammunition. Due to a prior felony conviction punishable by more than one year in prison, Pires is prohibited from possessing firearms and ammunition.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Brockton Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorney William B. Brady of Mendell’s Criminal Division prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bridgeport Man Admits Stealing Social Security Benefits Delivered to Deceased FatherRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ADOLFO VARGAS, 43, of Bridgeport, pleaded guilty today to theft of public funds related to his illegal receipt of Social Security benefits.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, Vargas’ father lawfully received Social Security Administration (“SSA”) monthly Retirement and Survivor Insurance benefit payments. When Vargas’ father became ill, he gave Vargas access to his bank accounts so Vargas could make purchases on his behalf and take care of his affairs after his death. Vargas’ father died in 2006, but the SSA was never informed of his death. Between 2006 and 2019, the SSA deposited approximately $111,000 into Vargas’ father’s account. During that time, Vargas used the account to make numerous ATM cash withdrawals, personal debit transactions and personal online purchases.
Vargas is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 23, 2021, at which time he faces a maximum term of imprisonment of 10 years. Vargas also has agreed to pay $93,092 in restitution.
Vargas is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Acting United States Attorney Mark J. Lesko, FBI Assistant Director-in-Charge and Homeland Security Investigations Special Agent-in-Charge Urge the Public to Report Hate CrimesRead the Press Release
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York announced today that the Office will double the size of its Civil Rights Section in the Criminal Division to provide additional resources to evaluate and, where appropriate, prosecute hate crimes. The Civil Rights Section will continue to be responsible for spearheading the Office’s prosecution of three types of offenses: (1) traditional civil rights crimes by individuals who operate under the color of law; (2) hate crimes; and (3) sex trafficking.
“The spiking number of hate crimes directed at Asian Americans in this District and throughout the country runs contrary to deeply-held American values of fairness, respect and equal treatment for all without regard to ethnic origin. The additional resources allocated to the Civil Rights Section reflect the commitment of this Office and its federal, state and local law enforcement partners to upholding these important and enduring values, which categorically reject hate, intolerance and the violence they spawn,” stated Acting U.S. Attorney Lesko. “We strongly encourage members of all communities to report hate-based crimes as we continue to work with our law enforcement partners to investigate and prosecute these crimes to the fullest extent of the law.”
Mr. Lesko thanked the District Attorneys of Brooklyn, Queens, Staten Island and Long Island for their cooperation and coordination, and the Federal Bureau of Investigation, New York Field Office (FBI), Homeland Security Investigations; the New York City Police Department; and the Nassau and Suffolk County Police Departments for their continued partnership.
“Investigating hate crimes remains the highest priority of the FBI's civil rights program, and the public should know that we will continue to work hand in hand with all of our law enforcement partners to investigate any and all allegations of hate crimes. We can't investigate what we don't know, however, so I would urge anyone who has been the victim of a hate crime, or anyone who has witnessed a hate crime, to report this information to the FBI by calling 1-800-CALL-FBI or submitting a tip online at tips.fbi.gov. Victims should know that information may be reported anonymously and in their native language. Help us fight hate in our communities together,” stated FBI Assistant Director-in-Charge William F. Sweeney, Jr.
“Homeland Security Investigations (HSI) is proud to join together with the FBI and the United States Attorney’s Office, EDNY, in combatting the rising trend of Hate Crimes that we are seeing throughout our region. Every person should be free to live and worship as they wish without fear for repercussions or their safety,” stated HSI New York Special Agent-in-Charge Peter C. Fitzhugh. “Working with our partners, HSI will hold those who victimize others based on their nationality, race, religion or otherwise, responsible for their actions.”
27 Hotels Across Southern California and on Central Coast Sign Agreements to Improve Access for Persons with DisabilitiesRead the Press Release
LOS ANGELES – The United States Attorney’s Office announced today that it has signed agreements with 27 hotels across Southern California to resolve investigations pursuant to the Americans with Disabilities Act (ADA).
The agreements were finalized over a one-year period that began last April and concluded today with the 27th agreement. After federal investigations into the hotels revealed non-compliance with various provisions of the ADA pertaining to “public accommodations,” the various hotels agreed to remedy the violations, with some agreeing to stop the illegal practice of charging more for accessible rooms – a “disability tax” of up to $25 when compared to similar non-accessible rooms.
Various hotels also agreed to relief that includes adding additional accessible rooms and communication features for persons with disabilities, ensuring that booking websites provide sufficient information about accessible features, and the payment of civil penalties.
The hotels that have entered into settlement agreements with the United States Attorney’s Office are:
- The Knights Inn Los Angeles Central/Convention Center;
- The Mayfair Inn in Ontario (formerly called the Knights Inn Ontario);
- The Red Roof Inns in San Dimas-Fairplex and Santa Ana;
- Rodeway Inn & Suites in Beaumont, Canyon Lake (Riverside County), Corona, and Harbor City;
- Rodeway Inns, one near Venice Beach and a second in Encino;
- The Santa Fe Inn (formerly Rodeway Inn Near LA Live); and
- Super 8 hotels located in Cypress, Hollywood, Inglewood, North Hollywood, Redlands, and Torrance.
Ten entities have signed letters of resolution and agreed to come into compliance with the ADA. They are:
- Rodeway Inn & Suites in Hollywood and Lynwood;
- Two Rodeway Inn locations, one near Maingate Knott’s and one known as Regalodge (in Glendale);
- Vantage Point Inn (formerly known as Knights Inn Woodland Hills);
- Super 8 locations near LAX, and in Pasadena, Santa Clarita, and San Luis Obispo; and
- Red Lion Hotels Corporation.
“It is unfair and illegal for private entities that own or operate public accommodations such as hotels to discriminate against people with disabilities,” said Acting United States Attorney Tracy L. Wilkison. “I commend the hotels in this district that have demonstrated their commitment to ensuring full access for persons with disabilities by cooperating in our investigations and by agreeing to comply with the ADA.”
These matters were handled by Assistant United States Attorneys Acrivi Coromelas, Katherine Hikida and Matthew Nickell of the Civil Rights Section in the Civil Division.
For more information on the ADA, or to file a complaint, please call the ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or visit the ADA website at http://www.ada.gov.
28 March 2021
Convicted Child Murderer Joseph Edward Duncan, III, Dies on Death RowRead the Press Release
BOISE – Joseph Edward Duncan, III, who was sentenced to death in 2008 for the kidnapping and murder of a nine-year-old north Idaho boy, died this morning. Duncan had been diagnosed with stage IV brain cancer. Duncan was in custody on death row at Terra Haute Federal Correctional Institution.
According to court records, on May 16, 2005, Duncan murdered the boy’s mother, her boyfriend, and the boy’s 13-year-old brother at their home just outside of Coeur d’Alene, Idaho. Duncan kidnapped the boy and his 8-year-old sister and took them into the Lolo National Forest in Montana where he tortured both children and murdered the boy. The 8-year-old girl was recovered on July 3, 2005, at a Denny’s restaurant in Coeur d’Alene and Duncan was arrested.
Duncan pleaded guilty in state court in 2006 to the murders of the family. His sentencing was stayed pending the federal prosecution for his crimes against the two younger children. Duncan pleaded guilty to the crimes against the children in December 2007. The jury empaneled for sentencing returned a verdict of death on all three counts for which Duncan was eligible. U.S. District Court Judge Edward J. Lodge then imposed the death sentence.
“This crime was horrendous and its impact on the families, the community, the jurors, court staff, our litigation team, and law enforcement were far reaching,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “While his death will not bring back the lives cut so tragically short or remove the indelible memories of his unspeakable acts, perhaps death will now allow space for some degree of healing, peace, and closure.”
According to court records, from the time he was taken into custody in July 2005, Duncan confessed to all of his crimes and repeatedly sought to plead guilty. Investigators recovered photographic and video evidence of Duncan’s crimes. He also admitted to the murders of other children. He pled guilty in 2011 in a California state court for the 1997 murder of a 10-year-old boy and was sentenced to two life sentences. Due to the sentences he had already received, Duncan was not prosecuted for the murders of two sisters, 11 years old and nine years old, both of which occurred 1996 in Bothell, Washington, although he described to federal investigators how he committed the crimes.
Following his capital sentencing hearing, Duncan waived his right to appeal and in November 2008 notified Judge Lodge that “if any appeal is initiated on my behalf, it is done contrary to my wishes.” Judge Lodge again determined that Duncan was competent, this time to waive his right to appeal. Despite Judge Lodge’s repeated findings, his attorneys appealed to the Ninth Circuit claiming Duncan was not competent to waive his right to appeal. The Ninth Circuit determined that Judge Lodge should have conducted a hearing to explore the issue more fully. In early 2013, Judge Lodge held a twenty-three-day retrospective competency hearing. In December 2013, he issued a detailed order finding Duncan had been competent to waive his right to appeal. The Ninth Circuit affirmed Judge Lodge’s finding in 2015 and in 2016, the United States Supreme Court declined to hear the case. In 2017, Duncan’s lawyers filed a motion to set aside his sentence and conviction. That motion was denied by Judge Lodge on March 22, 2019. Duncan’s lawyers had been seeking an appeal of that order at the time of Duncan’s death.
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27 March 2021
Federal Grand Jury B Indictments Announced- MarchRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the March 2021 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Eric Lee Adams. Aggravated Sexual Abuse by Force and Threat in Indian Country; Assault with a Dangerous Weapon in Indian Country. Adams, 42, of Pryor, allegedly threatened the victim with a knife, held it to her neck and raped her on Aug. 25, 2020. The Pryor Police Department and FBI are the investigative agencies.
Ricardo Avalos. Distribution of Methamphetamine; Maintaining a Drug-Involved Premises. Avalos, 21, of Tulsa, is charged with distributing 50 grams or more of methamphetamine on Jan. 14, 2021, and with maintaining a residence to distribute methamphetamine between Jan 14 and March 3, 2021. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Issac Eli Pigeon and Austin Avelar. Robbery in Indian Country; Brandishing a Firearm During and in Relation to a Crime of Violence. Pigeon, 18, and Austin Avelar, 18, both of Tulsa, allegedly aided and abetted one another during a robbery on Jan. 20, 2021. The two men are also charged with brandishing a firearm during the crime. The Tulsa Police Department and FBI are the investigative agencies.
Eric Steven Bentley, Nicole Marie Dileva, Derrick Wayne Deeds. Possession of Methamphetamine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Possession of Firearms in Furtherance of Drug Trafficking Crimes; Felon in Possession of Firearms. Bentley, 34, Dileva, 34, and Deeds, 36, all of Bakersfield, California, are alleged to have aided and abetted each other to knowingly possess with intent to distribute 500 grams or more of methamphetamine on Oct. 31, 2020. They are also charged with knowingly possessing with intent to distribute fentanyl on Oct. 31, 2020. The trio are also charged possession of firearms to further their drug trafficking crimes: a Herman Weihrauch .38 Special caliber revolver and a Jimenez Arms, Inc., 9mm Luger caliber semi-automatic pistol. Finally, Bentley is also charged with being a felon in possession of firearms. The Mannford Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Christine Marie Bowman and Rommel A. Navarro Jr. Child Abuse in Indian Country (COUNTS 1 and 2). Bowman and Navarro Jr. are each charged with aiding and abetting one another to commit child abuse. The defendants willfully and maliciously harmed and threatened harm to the health, safety, and welfare of a child under the age of 18 known to the Grand Jury, by striking and beating the child with a closed fist, belt, and hanger, and by wounding the child’s arms, abdomen, back, and legs. Navarro is also accused of feeding the child hot sauce. The Tulsa Police Department and FBI are the investigative agencies.
Matthew Dewane Carter, Donovan Dale Freeman, Courtney Rochelle Littlefield, Jonathan Michael Griffin, and Caleb Ross Lewis. Possession of Methamphetamine with Intent to Distribute; Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Assault Resulting in Serious Bodily Injury in Indian Country (2nd superseding). Carter, 32, of Pryor, Freeman, 28, of Choteau, Littlefield, 30, of Pryor, Griffin, 36, of Madill, and Lewis, 44, of Pryor, are charged with conspiring to distribute and to possess with intent to distribute methamphetamine. Carter is charged with possessing with intent to distribute methamphetamine on Aug. 23, 2019, and Freeman and Littlefield are also charged with possessing with intent to distribute methamphetamine on Jan. 22, 2020. Finally, Carter is charged with assaulting an individual on Feb. 25, 2020, while in the Mayes County jail. The Mayes County Sheriff’s Office and Pryor Police Department are the investigative agencies.
Edgar Chairez, Jaylene Algarin-Mora, First Name/Last Name Unknown aka Lupita. Drug Conspiracy; Distribution of Heroin; Possession of Heroin with Intent to Distribute; Maintaining a Drug-Involved Premises. Chairez, 19, of Tulsa, and FNU LNU aka Lupita are charged with conspiring to possess with intent to distribute and to distribute heroin. Chairez is charged with knowingly distributing heroin on Nov 18, 2020, and with knowingly possessing with intent to distribute 100 grams or more of heroin on March 2, 2021. Chairez and Algarin-Mora,19, of Tulsa, are charged with maintaining a residence to for the purpose of manufacturing, distributing and using marijuana, psilocybin mushrooms, and lysergic acid diethylamide. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Pamela Kathryn Conley. Bank Fraud (Counts 1-20); Aggravated Identity Theft (Counts 21-23) (superseding). In this superseding indictment, Conley, 58, of Catoosa, has been charged with defrauding ten Oklahoma banks when she falsified and submitted documents to apply for $879,015.02 in loans. From September 2016 to Feb. 23, 2021, Conley allegedly executed a scheme to enrich herself by knowingly submitting loan applications containing false income and employment information at ten banks and credit unions. According to the indictment, Conley forged earning statements which she provided to the financial institutions as proof of income. Conley falsified the statements to reflect that she held positions such as manager and chief financial officer, earning a salary of $200,000 or more annually or $18,000 a month.
The indictment alleges that on occasion, when loans were secured with collateral, Conley created fictitious lien releases for the collateral, using the notarized signature of unwitting financial institution employees. Conley then caused the bogus lien releases to be filed with the Oklahoma Tax Commission, which in turn provided Conley with titles to the collateral, free and clear of any liens. Conley would then approach new lenders to obtain loans secured by collateral she did not own free and clear. IRS-Criminal Investigation and the U.S. Secret Service are the investigative agencies.
Johnny Little Cook. Murder – First Degree in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. On Feb 24, 2021, Cook, 43, of Tulsa, allegedly shot and killed Xzavior Frost. He is further charged with discharging a firearm during a crime of violence. The Tulsa Police Department and FBI are the investigative agencies.
Kevin Tyler Foster. Murder – First Degree in Indian Country; Tampering with Documents and Proceedings by Corruptly Altering, Destroying, Mutilating, and Concealing a Record, Document, and Other Object. Foster, 35, of Bixby, is charged with deliberately and with premeditation shooting and killing Rick Swan on Nov. 15, 2018. He is further charged with setting fire to the victim’s recreational vehicle and body with intent to make it unavailable as evidence in the investigation. The Rogers County Sheriff’s Office and FBI are the investigative agencies.
Marvell William Gant. Felon in Possession of a Firearm. Gant, 39, of Memphis, Tennessee, is charged with being a felon in possession of a Hi-Point 9x19mm semi-automatic rifle. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Omar Heriberto Garcia-Luna. Unlawful Reentry of Removed Alien; Possession of a Firearm and Ammunition by an Alien Illegally in the United States (superseding). Garcia-Luna, 20, of Tulsa, was allegedly found to be in the United States illegally after being deported in April 2020. He is further charged with being a felon in possession of a CANIK 9 mm semi-automatic pistol and 18 rounds of ammunition. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Christopher Hanks; Leonard Loyd Martin; Billie Jo Bunch. Hanks, 47, of Casa Grande, Arizona, and Martin, 59, and Bunch, 39, both of Mountain View, Missouri, are charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. The Drug Enforcement Administration, Oklahoma Highway Patrol, Oklahoma County Sheriff’s Office, and Oklahoma City Police Department conducted the investigation.
Shane Michael Hannaford. Bank Fraud (Counts 1-10). Hannaford, 39, of Tulsa, allegedly planned and executed multiple schemes to defraud investors and their banks of approximately $607, 170.61. The FBI is the investigative agency.
Joseph Alfred Hansen. Second Degree Murder in Indian Country; Assault with Intent to Commit Murder; Carrying, Using, and Discharging a Firearm During and in Relation to a Crime of Violence. Hanson, 33, of Kansas, Oklahoma, is charged with willfully engaging in a felony that resulted in the death of Trifton Wacoche on Nov. 1, 2020. Hanson is further charged with aiding and abetting Wacoche in an assault with intent to kill another individual. He is further charged with carrying and discharging a firearm during the crime. The Cherokee Nation Marshal Service, Delaware County Sheriff’s Office, Mayes County Sheriff’s Office and the FBI are the investigative agencies.
Thelma Marie Karty. Child Abuse in Indian Country; Child Neglect in Indian Country; Assault Resulting in Substantial Bodily Injury in Indian Country. On March 11, 2020, Karty, 38, of Tulsa, allegedly assaulted a minor with a wooden stick, resulting in substantial bodily injury. She is also charged with child neglect. The Tulsa Police Department and FBI are the investigative agencies.
Jacob Patrick Krafft. Murder- Second Degree. Jacob Krafft, 39, of Helena, is charged with shooting and killing the victim with a rifle on Oct. 21, 2016. The Broken Arrow Police Department and FBI are the investigative agencies.
Brieanna Alyn Long. Threatening to Engage in Conduct Which Would Cause Bodily Injury to a Witness. Between Feb. 1 and Feb 20, 2021, Long, 22, of Reeds, Missouri, knowingly threatened to engage in conduct which would cause bodily injury to a witness who provided information to law enforcement relating to the possible commission of a federal offense. The FBI is the investigative agency.
Roberto Montel Madden; Cheetara Denise Venable. Felon in Possession of Firearm and Ammunition (Counts 1, 3, 4); Felon in Possession of Ammunition (Count 2) (superseding). Madden, 47, of Tulsa, is charged with being a felon in possession of a Beretta .40 S&W caliber pistol and ammunition and with being a felon in possession of 17 rounds of .40 S&W caliber ammunition discovered on Nov. 26, 2020. He is also charged with being a felon in possession of a Taurus 9mm caliber semi-automatic pistol, six rounds of 9mm Luger caliber ammunition, and one round of 9 mm caliber ammunition as aided by Venable and discovered on Jan. 18, 2021. Venable, 34, of Tulsa, is charged with being a felon in possession of a Taurus 9mm caliber semi-automatic pistol, six rounds of 9mm Luger caliber ammunition, and 1 round of 9 mm caliber ammunition as aided by Madden. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
James Damien McIntosh. Sexual Abuse by Threat in Indian Country; Sexual Abuse of a Minor in Indian Country; Incest in Indian Country; Attempted Coercion and Enticement and Coercion and Enticement of a Minor to Engage in Sexual Activity. Between March 18, 2015, and Dec. 10, 2019, McIntosh, 43, of Tulsa, allegedly sexually abused a minor between the ages of 12 and 17. The defendant threatened the minor, forcing her to engage in sexual acts with him. Finally, he also used a cell phone and messaging app as part of his crimes. The Tulsa Police Department and FBI are the investigative agencies.
Badlands Justice McNally. Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm During and in Relation to a Drug Trafficking Crime. On March 16, 2021, McNally, 29, of Tulsa, allegedly possessed with intent to distribute 500 grams or more of methamphetamine and possessed firearms in furtherance of his drug trafficking crimes. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Tulsa County Sheriff’s Office, Tulsa Police Department and U.S. Customs and Border Protection are the investigative agencies.
Johnny Edward Mize, Jr. Murder- Second Degree in Indian Country. Mize Jr., 35, of Tulsa, is charged with shooting and killing a Native American juvenile on July 4, 2017. The Tulsa County Sheriff’s Office and FBI are the investigative agencies.
Carl Gene Ortner, Jr. Transportation with Intent to Engage in Criminal Sexual Activity; Sexual Abuse of a Child in Indian Country; Abusive Sexual Contact in Indian Country; Possession of Parts of a Bald Eagle; Possession of Parts of a Golden Eagle (superseding). Ortner Jr., 57, of Quapaw, is charged with abusing a minor between 12 and 16 years of age and illegally possessing feathers, talons and heads from seven bald eagles and seven golden eagles. The U.S. Fish & Wildlife Service - Office of Law Enforcement, Oklahoma Department of Wildlife Conservation, Ottawa County Sheriff’s Department, FBI, and the Bureau of Indian Affairs are the investigative agencies.
Edward Joseph Parson. Aggravated Sexual Abuse of a Minor in Indian Country. Parson, 30, of Tulsa, is charged with sexually abusing a minor under the age of 12-years-old from Jan 1, 2018, to March 2019. The FBI is the investigative agency.
Elverio Pascual, Leticia Aguirre, Enrique Esquivel-Nieto, Nicholas Lee Givens. Drug Conspiracy. Pascual, 34, and Aguirre, 41, both residing in Oklahoma Department of Corrections facilities; Givens, 41, residing in an Oklahoma jail; and Esquivel-Nieto, 26, of Plano, Texas, are charged with conspiring to distribute or possess with intent to distribute 500 grams or more of methamphetamine. The FBI, Oklahoma Highway Patrol, Gray County Sheriff’s Office in Texas, Tulsa Police Department, and Oklahoma City Police Department are the investigative agencies.
Michael Douglas Provence. Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Dating Partner in Indian Country; Assault of an Intimate Partner and Dating Partner by Strangling and Attempting to Strangle and Suffocate in Indian Country; Assault With a Dangerous Weapon in Indian Country. Provence, 43, of Sapulpa, charged with assaulting a female victim by striking her with his fist and wooden broom handle as well as strangling the victim on Dec. 14, 2018. The Sapulpa Police Department and FBI are the investigative agencies.
Bobby Dwain Schrimsher, Jr. Possession of Heroin with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; Maintaining a Drug-Involved Premises; Possession of Firearms in Furtherance of Drug Trafficking Crimes. Schrimsher Jr., 26, of Tulsa, is charged with knowingly possessing with intent to distribute heroin and methamphetamine. He is further charged with maintaining a residence for the purpose of distributing and using heroin, marijuana, and methamphetamine. Finally, he is charged with possessing a firearm to further his drug trafficking crimes. The Tulsa Police Department and FBI are the investigative agencies.
Jonhron Starks. Murder- Second Degree in Indian Country. Starks, 27, of Tulsa, is charged with shooting and killing Dre’Leigha Everidge-Taylor on Sept. 19, 2020. The Tulsa Police Department and FBI are the investigative agencies.
Christopher L. Weeley. Murder – Second Degree in Indian Country; Assault with Intent to Commit Murder in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. On March 6, 2021, Weeley, 41, of Jay, is alleged to have shot and killed Annie Marie Weeley. He further shot a second victim with intent to commit murder. The Delaware County Sheriff’s Office and FBI conducted the investigation.
Kamau Jahi Williams. Distribution of Methamphetamine. Williams, 42, of Tulsa, is charged with knowingly distributing methamphetamine.
26 March 2021
Woman Sentenced for Bank RobberyRead the Press Release
NEW ORLEANS, LA – CATHOLINE HAMMETT, age 29, a resident of New Orleans, was sentenced on March 24, 2021 by the Honorable Lance Africk, announced U.S. Attorney Duane A. Evans. HAMMETT was sentenced to 30 months imprisonment, 3 years of supervised release, and a $100 special assessment. The defendant was also ordered to pay $633 in restitution.
According to the indictment, on or about January 8, 2020, HAMMETT entered the Iberia Bank located at 3412 St. Charles, Ave in New Orleans. She handed the teller a note that claimed HAMMETT had a bomb, and demanded money. HAMMETT obtained approximately $633 and left the bank.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
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Waterloo Felon Sent Back to Federal Prison for Escaping Halfway HouseRead the Press Release
A Waterloo man who left a halfway house in August 2020 for Chicago was sentenced March 25, 2021, to one year in federal prison.
Robert Donzell Luckie, age 22, received the prison term after a December 7, 2020 guilty plea to one count of escape from custody. At guilty plea and sentencing hearings, Luckie admitted that, in December 2018, he was a sentenced in the United States District Court for the Northern District of Iowa to 27 months’ imprisonment and a three-year term of supervised release after he was convicted of possessing ammunition as a felon. Luckie was released from federal prison in May 2020 and, after he violated the terms of his supervised release, was ordered to reside in a Waterloo halfway house for 120 days beginning on July 31, 2020. The very next day, Luckie left the hallway house without permission and fled to Chicago. Only four days later, on August 5, 2020, Luckie was arrested in a traffic stop by the Chicago Police Department.
In October 2020, Luckie was sentenced to 18 months’ imprisonment for violating the terms of his supervised release by escaping to Chicago. Later that same month, a federal grand jury returned an indictment charging him with one count of escape from custody.
Luckie has three convictions for possessing firearms and ammunition unlawfully. At his original sentencing in federal court for possessing ammunition as a felon, the sentencing judge found Luckie posed a high risk to reoffend in light of his strong desire to possess firearms and ammunition notwithstanding the fact he is a felon.
Luckie was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Luckie was sentenced to 12 months’ imprisonment, which Judge Williams ordered to run consecutively to Luckie’s 18-month sentence for violating the terms of his supervised release. He must also serve a new three-year term of supervised release after the prison term. There is no parole in the federal system. Luckie is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2052.
Follow us on Twitter @USAO_NDIA.
Virginia Man Charged with Federal Offenses Relating to Traveling and Transporting a Minor for SexRead the Press Release
PITTSBURGH - A former Virginia resident has been indicted by a federal grand jury in Pittsburgh on charges of Travel With Intent to Engage in Illicit Sexual Conduct, Transportation With Intent to Engage in Criminal Sexual Activity, and Obstruction of Justice—Hindering Communication Through Corrupt Persuasion, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on March 9, 2021 and unsealed today, named Apipat Vutipawat, also known as "Viktor Vutipawat," "Viktor Koi," "Arty Freedom," and "Victor Kim," age 27, of Alexandria, Virginia, as the sole defendant.
According to the Indictment, from May 29, 2020 through June 2, 2020, Vutipawat travelled in interstate commerce with the purpose of engaging in any illicit sexual conduct with Minor A and transported Minor A, a person who had not yet attained the age of 18 years, from Pennsylvania to Virginia with the intent that Minor A engage in criminal sexual activity. The grand jury further charges that from May 29, 2020 through June 2, 2020, Vutipawat knowingly corrupted and persuaded Minor A with the intent to hinder, delay, or prevent the communication to a law enforcement officer of information relating to the commission or possible commission of a Federal offense.
"Combatting child sexual exploitation is one of our highest priorities." said Acting U.S. Attorney Kaufman. "We will continue our targeted law enforcement strategies to identify and prosecute sexual predators, especially those who travel across state lines intent on harming children."
"The sexual exploitation of children is a heinous offense," said James D. Abbate, Assistant Special Agent in Charge for Homeland Security Investigations Pittsburgh. "I commend the dedicated work of our agents and law enforcement partners. Together we were able to serve one of the most important roles of law enforcement – protecting our children."
The law provides for a maximum total sentence of not less than ten years in prison and not more than life, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations-Pittsburgh, Homeland Security Investigations-York, Homeland Security Investigations-DC, Pennsylvania State Police, North Strabane Township Police Department, and the Fairfax County Police (Virginia) conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Attorney's Office for the Eastern District of Oklahoma Files More Than 20 Indian Country Murder CasesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today it has filed forty (40) violent crime in Indian Country cases since the March 11, 2021, Oklahoma Court of Criminal Appeals opinions in Bosse v. Oklahoma and Hogner v. Oklahoma. The cases include twenty-two murders, four manslaughters, and six sexual abuse offenses involving minor victims. The following cases have been filed in the United States District Court for the Eastern District of Oklahoma by Criminal Complaint:
United States v. K.C. Cole – Murder in Indian Country
United States v. Tonya Ann Waite – Murder in Indian Country
United States v. Earl McAlister – Murder in Indian Country
United States v. Johnatan Caldwell, Jason Armstrong, Jessie Hansen and Edmon McAlister – Murder in Indian Country
United States v. Scott Tate Eagle – Murder in Indian Country
United States v. Denise Grass – Murder in Indian Country
United States v. Joseph Allen Hernandez – Murder in Indian Country
United States v. David Glen Thompson – Murder in Indian Country
United States v. Tyrik D. Cohee – Murder in Indian Country
United States v. James Eric Parker – Murder in Indian Country
United States v. Laurie Martin – Murder in Indian Country
United States v. Tyler Mullins – Murder in Indian Country
United States v. Charles Cooper – Murder in Indian Country
United States v. Russell Williford – Murder in Indian Country
United States v. Jessica Tyan Moore – Murder in Indian Country
United States v. Bobby Joe Hector, Jr. – Murder in Indian Country
United States v. Glen Gore – Murder in Indian Country
United States v. Cory Boykin – Murder in Indian Country
United States v. Stormy Gann – Murder in Indian Country
United States v. Tyler Presley – Murder in Perpetration of Kidnapping in Indian Country
United States v. Delila Ann Pacheco – Murder in Perpetration of Child Abuse in Indian Country
United States v. Brandon White – Murder in Second Degree Indian Country
United States v. Heather Nicole White – Manslaughter in Indian Country
United States v. Shawn Jones – Manslaughter in Indian Country
United States v. James Russell Parker – Manslaughter in Indian Country
United States v. Robert Dwayne Roberts – Manslaughter in Indian Country
United States v. Tanya Michelle Wilson – Kidnapping in Indian Country
United States v. Christopher Space – Abusive Sexual Contact of a Child in Indian Country
United States v. J.D. Hooper – Aggravated Sexual Abuse of a Child in Indian Country
United States v. Philip Ryan Stanley – Sexual Abuse of a Minor in Indian Country
United States v. Lance Whelchel – Sexual Abuse of a Minor in Indian Country
United States v. Lucas James Blackbird – Sexual Abuse of a Minor in Indian Country and Aggravated Sexual Abuse in Indian Country
United States v. Santiago Perez III – Lewd Acts with a Child in Indian Country
United States v. Geoffrey Hitcher – Assault Resulting in Serious Bodily Injury in Indian Country
United States v. Nicholas Hammer – Assault Resulting in Serious Bodily Injury in Indian Country
United States v. Justin Taylor - Assault with a Dangerous Weapon in Indian Country
United States v. Chavio Balderas – Assault with a Dangerous Weapon in Indian Country
United States v. Chalad Teddie Lee Caldwell – Assault with Intent to Commit Murder in Indian Country
United States v. Bryce Alan Benshoof – Assault with Intent to Commit Murder in Indian Country
United States v. Clarence Wesley Sands – Assault with Intent to Commit Murder in Indian Country“Our goal has been and will continue to be protecting the people of the Eastern District of Oklahoma by focusing all of our available resources on ensuring that violent offenders are transitioned from state custody to federal custody to be tried for the violent crimes they have been charged with committing,” said Acting United States Attorney Christopher J. Wilson. “Our staff has been working many long and stress-filled hours reviewing law enforcement reports and preparing charging documents. The logistics of handling this volume of cases has been challenging and has required the cooperation of District Attorney Offices, Sheriff Offices, the Federal Bureau of Investigation, the United States Marshals Service, and the Oklahoma Department of Corrections.”
Many of the recent federal charges filed by the Eastern District of Oklahoma involve defendants previously convicted in state court. The Supreme Court decision in McGirt v. Oklahoma and the recent Oklahoma Court of Criminal Appeals rulings in Bosse and Hogner held that Congress never disestablished the reservations of the Muscogee (Creek) Nation, Chickasaw Nation and the Cherokee Nation, and the State of Oklahoma lacked jurisdiction to prosecute major crimes involving Native Americans occurring on these reservation lands. Based on these rulings, many state convictions have and will be vacated. It will be the responsibility of the federal government and/or tribal governments to prosecute the offenders. It is anticipated additional decisions impacting the Choctaw and Seminole Nations will be issued by the Oklahoma Court of Criminal Appeals in the coming days.
“As I stated when the recent Hogner and Bosse opinions came down, the Eastern District U.S. Attorney’s Office has been identifying cases of violent offenders currently in custody within the areas of the Cherokee and Chickasaw reservations which could be impacted by a change in Indian Country jurisdiction. The collective efforts of our state, local, tribal, and federal partners have enabled our office to have federal charges in place to avoid these violent offenders from being released from custody. The forty cases filed to date are only the beginning. We are reviewing and making charging decisions on additional cases daily. In addition, we have already discovered approximately 150 violent offender cases in the Choctaw and Seminole areas over which we anticipate assuming federal criminal jurisdiction if the OCCA renders similar rulings,” said Wilson.
“I am keenly aware of the hardship the jurisdictional change has placed on so many victims,” said Wilson. “As the previous state convictions are being vacated for lack of jurisdiction, victims and victim families are being forced to relive the entire process. We are committed to assisting the victims of these violent crimes as their cases navigate through the federal criminal justice system.”
A criminal complaint does not constitute evidence of guilt. A criminal complaint is only a method of bringing formal charges against a defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Two Men Are Sentenced to Prison for Selling Stolen FirearmsRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Gevon Marquise King and Michael Dwane Williams were sentenced to prison late yesterday for selling stolen firearms and related firearm offenses. U.S. District Judge Kenneth D. Bell sentenced King, 35, of Hickory, N.C., to 144 months in prison followed by three years of supervised release, and ordered Williams, 22, also of Hickory, to serve 72 months in prison and two years under court supervision.
According to filed court documents and information presented at the sentencing hearings, from November 2019 to July 2020, King and Williams engaged in the unlawful sale of numerous firearms, some of which were stolen. Court records show that, over the course of the investigation, law enforcement determined that Williams was responsible for several vehicle break-ins in Burke County, from which firearms were stolen. King conspired with Williams to sell the stolen firearms, which included a short barrel rifle, a machine gun, a semi-automatic shotgun, several semi-automatic rifles, and several handguns.
In November 2020, both King and Williams pleaded guilty to dealing in firearms without a license. King also pleaded guilty to possession of a firearm by a felon, and Williams pleaded guilty to possession and sale of stolen firearm.
King is currently in federal custody. Williams has been released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement Acting U.S. Attorney Stetzer commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of the case, and thanked the North Carolina State Bureau of Investigation, the Hickory Police Department, the Catawba County Sheriff’s Office, and the Burke County Sheriff’s Office for their invaluable assistance.
The prosecution was handled by Assistant United States Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte.
Two from Fayette County Arrested on Child Sex Trafficking ChargesRead the Press Release
CHARLESTON, W.Va. – A man and a woman from Fayette County were arrested and charged today in connection with sex trafficking a 17-year-old minor female. Larry Allen Clay, Jr., 57, and Kristen Naylor-Legg, 28, were both charged by federal criminal complaint with sex trafficking of a minor. Both Clay and Naylor-Legg are detained pending their preliminary hearings scheduled on March 31, 2021.
According to the charging documents, on two separate occasions in June 2020, Clay, who at the time was an employee of the Fayette County Sheriff’s Department and the Chief of Police for the Gauley Bridge Police Department, rendered payments of $50 to Naylor-Legg to have sex with a 17-year-old minor female relative of Naylor-Legg. According to the criminal complaints, Naylor-Legg accompanied the victim and was present during both of the sexual encounters between Clay and the minor female victim. The complaints further allege that during the first incident, Clay remained in his Gauley Bridge police uniform during the entire sexual encounter and that the second incident took place inside the old Gauley Bridge High School in a location accessible to a limited number of people, including the Gauley Bridge Police Department. Law enforcement authorities were able to retrieve DNA evidence from towels and paper towels discarded in the room where the second incident allegedly took place.
If convicted, Clay and Naylor-Legg each face at least 10 years and up to life in prison.
The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the West Virginia State Police and the Fayette County Sheriff’s Department are conducting the investigation. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
Members of the public are urged to report suspected instances of child sex trafficking through a toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or online at www.ice.gov/tips.
Note: The charges contained in the complaints are allegations and the defendants are presumed innocent unless and until proven guilty.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-mj-0068 (Naylor-Legg) and 2:21-mj-0069 (Clay).
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Two Florida Men and Baltimore Woman Facing Federal Indictment in Maryland for Nationwide Scheme That Allegedly Defrauded at Least 70 Elderly Victims of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Medard Ulysse, a/k/a “Jay,” age 37, of Miami, Florida, Eghosasere Avboraye-Igbinedion a/k/a “Ego” and “Ghost,” age 26, of Miramar, Florida, and Amaya English, age 21, of Baltimore, Maryland on the federal charge of conspiracy to commit mail fraud, in connection with a far-reaching scheme in which they allegedly defrauded more than 70 elderly victims of more than $1.5 million. The indictment was returned on March 4, 2021, and was unsealed today. Ulysse turned himself in to authorities today and is expected to have an initial appearance in U.S. District Court in Baltimore. Avboraye-Igbinedion and English were arrested and had their initial appearances on March 24, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“These defendants are charged with participating in a heartless scheme that preys on elderly victims by falsely claiming that a grandchild was in trouble and needed money to pay legal or other expenses. The indictment also alleges that members of the conspiracy pretended to be the victim’s relative to convince them to send thousands of dollars to the conspirators,” said Acting U.S. Attorney Jonathan F. Lenzner. “By preying on the grandparents’ love for their family and then stealing their retirement savings, these defendants allegedly victimized them twice. We will continue to work with our law enforcement partners to bring to justice those who perpetrate these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“This case is a true example of international law enforcement cooperation leading to multiple indictments, arrests and the wide scale disruption of a transnational organized crime group that was mercilessly preying on elderly Americans,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “These arrests demonstrate the FBI’s determination to stop these egregious crimes and should serve as a warning to those who would seek to profit by threatening and terrorizing seniors.”
According to the one-count indictment, from January 2018 through November 2019, the defendants were part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not actually occurred. Conspirators allegedly telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As stated in the indictment, during the telephone calls, the conspirators directed victims to send cash to a particular address via an overnight delivery service. The conspirators allegedly even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
The indictment alleges that Ulysse recruited individuals in Florida with promises of travel and cash payments to participate in the scheme by retrieving packages of cash sent by elderly victims and delivering the packages to him. Ulysse allegedly directed conspirators to travel from Florida to Maryland and other states and to identify residential locations across the country where the cash should be sent. At Ulysse’s direction, conspirators identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, and then retrieved the packages of cash when they were delivered. Avboraye-Ibginedion, English and other conspirators allegedly retrieved packages of cash from designated locations and relayed directions to other participants in the scheme about where and when to retrieve packages of cash. The conspirators would then allegedly deliver the packages to Ulysse, English, or to other conspirators. Ulysse allegedly distributed, and directed other conspirators to distribute, cash payments to other participants in the fraud scheme.
If convicted, the defendants each face a maximum sentence of 20 years in federal prison for mail fraud conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Two defendants previously charged as part of this ongoing investigation, David Green, age 25, of Miami Gardens, Florida, and McArnold Charlemagne, age 33, of Miramar, Florida pleaded guilty to a federal mail fraud conspiracy charge, admitting that they defrauded more than 28 elderly victims of more than $939,000. U.S. District Judge George L. Russell, III has scheduled sentencing for Green and Charlemagne on October 29, 2021.
The Canadian Sûreté du Québec announced on March 24, 2021, that as part of a National Organized Crime Suppression Squad investigation they carried out a major operation targeting a criminal organization specializing in "Grandparent" type fraud, similar to the scheme alleged in the Maryland indictment. As part of this project, Canadian officials executed 17 search warrants in the greater Montreal metropolitan area and police met with 35 people in connection with the alleged fraud scheme. On that same date, the U.S. Attorney’s Office for the Southern District of Indiana announced the indictment of defendants charged with a similar fraud scheme in that District.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation and thanked the Sûreté du Québec for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney and Matthew J. Maddox, who are prosecuting the case.
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Three Charged in Connection with Drug Trafficking ConspiracyRead the Press Release
BOSTON – Three individuals were charged today in connection with a drug trafficking conspiracy involving cocaine, cocaine base, fentanyl and methamphetamine supplied by sources in Massachusetts and spanning into Maine.
Armani Minier-Tejada, a/k/a “Shotz” a/k/a “Gustavo,” 22, of Salem; Miguel Minier, 55, of Lynn; and Shelby Kleffman, 31, of Trenton, Maine, were charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute controlled substances including cocaine, cocaine base, fentanyl and methamphetamine. Minier-Tejada and Kleffman were additionally charged with one count of conspiracy to possess, use and carry firearms in furtherance of a drug trafficking conspiracy. Minier-Tejada and Kleffman were arrested this morning in Maine and will make an initial appearance in federal court in Maine today. At a later date, Minier-Tejada and Kleffman will appear in federal court in Boston before U.S. District Court Magistrate Judge Donald L. Cabell. Minier remains wanted on the outstanding federal warrant.
As alleged in the charging documents, Minier-Tejada and Minier conspired to obtain large quantities of controlled substances, including cocaine, cocaine base, fentanyl and methamphetamine from Massachusetts suppliers and distribute them to contacts in Maine, who then distributed the controlled substances on a retail level. Members of the conspiracy also allegedly possessed numerous firearms, including at least one fully-automatic firearm with a “selector switch” that converts a semi-automatic firearm into a machinegun, in order to protect the drug trafficking operation and target rival drug trafficking operators.
As described in the charging documents, Minier-Tejada and Minier brought large quantities of controlled substances, including distinctive purple fentanyl, to sell to dealers in Maine who would in-turn resell the controlled substances for higher profits in Maine. Kleffman was one such Maine-based dealer who received large quantities of controlled substances from Minier-Tejada and Minier. Minier-Tejada and Minier also allegedly obtained rental vehicles and rental homes in Maine that served as distribution hubs for the conspiracy.
The charge of conspiracy to possess a controlled substance with intent to distribute provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of conspiring to possess, use and carry firearms in furtherance of a drug trafficking conspiracy provides for a maximum sentence of life in prison because a machinegun was involved in the offense, five years of supervised release and fine of up to $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistance was provided by the United States Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Essex County Sheriff’s Department; Lynn Police Department; Malden Police Department; Salem Police Department; Bangor (ME) Police Department; Hancock (ME) County Sheriff’s Department; Portland (ME) Police Department; and Westbrook (ME) Police Department. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tampa Woman Found Guilty of Conspiracy to Distribute Heroin and Fentanyl, and Distribution of Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – A federal jury has found Leslie Pagan (40, Tampa) guilty of conspiracy to distribute over one kilogram of heroin and a quantity of fentanyl, distribution of fentanyl resulting in death, and eight counts of distribution of heroin or fentanyl. Pagan faces a minimum mandatory sentence of 20 years, and up to life, in federal prison.
Pagan had been indicted on August 27, 2020, along with Jackylin Bonifacio and Steven Echevarria. A superseding indictment was filed on November 5, 2020. Prior to trial, Bonifacio pleaded guilty to distribution of fentanyl resulting in death, and Echevarria pleaded guilty to conspiracy to distribute over one kilogram of heroin.
According to testimony presented at trial, from January 1, 2016, through September 1, 2020, Pagan, Echevarria, Bonifacio and others conspired to distribute heroin. Bonifacio distributed heroin she had received from Pagan and Echevarria to heroin users in Hillsborough County. Echevarria initially controlled the supply he obtained from another co-conspirator, but when Echevarria was incarcerated in 2017, Pagan took over that role and distributed the heroin to Bonifacio. On December 19, 2019, Bonifacio distributed a substance to the victim. Bonifacio thought the substance was heroin, but it was actually fentanyl. When the victim used the fentanyl shortly after receiving it from Bonifacio, the victim collapsed and died.
The Hillsborough County Sheriff’s Office investigated the overdose death and identified Bonifacio as the person who had distributed the fentanyl to the victim. On December 20, 2019, Bonifacio was arrested and found in possession of 25 baggies of fentanyl, packaged for distribution.
The Hillsborough County Medical Examiner’s Office conducted an autopsy and determined that the victim died from ingestion of substances, including heroin and fentanyl. Baggies recovered from Bonifacio and residue from a syringe found near the victim at the time of the overdose were analyzed and identified to contain fentanyl. Lab analysis also determined that the fentanyl mixtures were all very similar and, based on the circumstances of the death and the toxicology from the autopsy, the victim’s use of the fentanyl caused the victim’s death.
A joint investigation led by the FBI identified Pagan as Bonifacio’s supplier. During a series of covert operations, Pagan distributed fentanyl and heroin to a confidential informant and received payments from that informant. Pagan was arrested on September 1, 2020, and investigators recovered 97 grams of fentanyl and over $105,000 in currency from her residence.
Bonifacio testified during the trial and identified Pagan as her supplier and the co-conspirator that provided the fentanyl that the victim had used, resulting in her death.
This investigation is the result of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Hillsborough County Medical Examiner’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Michael Sinacore.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. 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.
Stroudsburg Man Sentenced to 240 Months’ Imprisonment for Child Pornography ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daniel Palmitessa, age 35, of Stroudsburg, Pennsylvania, was sentenced on March 25, 2021 to 240 months’ imprisonment by United States District Court Judge Malachy E. Mannion, for production of child pornography and enticement of minors to engage in sexual activity.
According to Acting United States Attorney Bruce D. Brandler, between January 13, 2013 through January 2016, Palmitessa produced images of child pornography. Also, between February 2018 through April 2018, Palmitessa used the internet and a cellular phone to attempt to persuade a minor to engage in sexual activity. In addition to the term of imprisonment, Judge Mannion ordered that Palmitessa be placed under supervision by a probation officer for a period of 10 years following release from prison.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Jenny P. Roberts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Statement of United States Attorney Ariana Fajardo Orshan Following ResignationRead the Press Release
Miami, Florida – United States Attorney for the Southern District of Florida Ariana Fajardo Orshan makes the following statement to the residents of South Florida:
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My fellow South Floridians:
As is expected with a change in administration, I have submitted to President Biden my resignation as United States Attorney for the Southern District of Florida, effective at midnight on March 27, 2021. Beginning March 28, 2021, Juan Antonio “Tony” Gonzalez, who currently serves as the First Assistant United States Attorney, will lead the office as Acting United States Attorney for the Southern District of Florida.
Serving as your United States Attorney has been the privilege and honor of my lifetime. As the first Senate-confirmed woman to lead the office, I find it moving that my tenure ends in March, the month during which we celebrate women’s contributions to society. Befittingly, I take this opportunity to share with you some of the many things that we accomplished during my time as U.S. Attorney.
We battled drug crimes head-on, from targeting local dealers feeding the fentanyl and methamphetamine epidemics in our communities to taking on the most notorious of international drug lords, Joaquin “El Chapo” Guzman, the violent leader of the Sinaloa cartel who moved tons of cocaine, heroin, and other illegal narcotics into our country. Prosecutors from my office spent three months in a federal courtroom, sitting across from El Chapo, and secured a guilty verdict and lifetime prison sentence.
We furthered our commitment to reducing violent crime and approached the problem from different angles. When a Little Havana gang used armed violence to further their drug trafficking business in South Florida, we prosecuted 24 gang members and associates. Through our outreach programs, we connected with our community’s children and encouraged them to make smarter choices; and guided adults who had made bad decisions in the past so that they could make better ones in future.
We prosecuted criminals who preyed on seniors, from the leader of a $1 billion investment Ponzi scheme that targeted older adults, to fraudsters who impersonated bank representatives to drain their elderly victims’ bank accounts.
We held accountable doctors and other professionals who stole millions of dollars from our Medicare and Medicaid programs by fraudulently billing for medically unnecessary home health services, prescription drugs, durable medical equipment, and addiction treatment services.
We focused on getting child sex predators off our streets. In one case, we prosecuted the mastermind of an on-line sextortion ring who coerced children into producing and distributing child pornography. In another, we brought a child predator to justice after he lied about his age and enticed an 11-year-old girl into an on-line sexual relationship. These defendants will spend years in prison. We also charged persons you would never expect would commit child exploitation crimes: a former police officer, a former elementary school principal, a veterinarian and a pediatrician.
We took on foreign corruption and money laundering, crimes that deeply impact our community, the treasured gateway to Latin America. We charged the former Economics Minister of Guatemala with laundering millions of dollars in dirty drug proceeds through South Florida banks. To deal with the kleptocrats stealing money from their countries and trying to hide it in South Florida real estate, I established a dedicated Money Laundering Section at the office. The Chief Justice of the Supreme Court of Venezuela, Venezuela’s Minister of Electrical Energy, and officials and businesspeople connected to Venezuela’s state-owned oil company (PDVSA) and similar institutions are among those we have charged with money laundering crimes. And, we seized for forfeiture approximately $450 million in currency and assets from foreign corrupt actors.
We rooted out corruption in local government too, including corruption in government contracting and spending, and in shady deal making that involved bribes. We held to account police officers who furthered illegal drug activity for personal profit.
We sought justice in civil rights cases by securing prison sentences for a former police chief who tried to boost his department’s statistics by directing officers to make baseless arrests and for two corrections officers who used physical assault and intimidation to discipline young inmates in their care. And, we are actively prosecuting a case against a local police officer charged by a grand jury with violating the civil rights of a minor and an adult woman.
When the coronavirus pandemic hit, closing our courthouses and forcing us to turn home spaces into workspaces, we pulled together. Thanks in large part to the strength of our information technology staff and administrative personnel, the close to 500 employees of this office adapted and did not miss a beat. We forcefully tackled the new breed of crime, emerging as national leaders in Covid-19 relief fraud prosecutions. And when a father and his sons peddled industrial bleach as a miracle cure for Covid-19, we shut them down in a civil case and charged them in a criminal one.
Of course, our office could not have achieved these successes without the firm partnerships we maintain with ATF, DEA, FBI, Homeland Security Investigations, IRS, HHS, Postal Inspection Service, Secret Service, U.S. Marshal’s Service, and other federal, state, and local agencies. Nor could we have succeeded without help from South Florida’s community and religious leaders. I thank the wonderful people of these organizations for their enduring commitment to justice and for their support and friendship.
Finally, it is important to note that we achieved these successes during very challenging times. Three months into my tenure, we faced the longest federal government shutdown in history. In my second year as U.S. Attorney, the global pandemic and ensuing economic crash hit us, changing our lives in unimaginable ways. Amid that crisis, came the months of civil unrest, causing us to self-evaluate and confront difficult and painful race issues. The year 2021 started no better, as violence rocked our nation’s Capitol building on January 6, leading to nationwide investigations and arrests. Lastly, our district suffered the tragic killing of two FBI Miami agents while in the line of duty last month. Having worked through these challenges alongside the dedicated public servants of this office, I know that I leave the residents of South Florida in the best of hands.
I could not have served as U.S. Attorney for the last two and a half years without the support of this community. God bless South Florida and the United States of America!
With warmest regards,
Ariana Fajardo Orshan
United States Attorney for the Southern District of Florida
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Springfield Woman Sentenced to 16 Years for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, woman has been sentenced in federal court for her role in leading a conspiracy to distribute large amounts of heroin in Greene County, Mo.
Jasmine D. Steed, 34, was sentenced by U.S. District Judge Stephen R. Bough on Thursday, March 25, to 16 years and eight months in federal prison without parole.
On Jan. 20, 2020, Steed pleaded guilty to participating in a conspiracy to distribute heroin in Greene County from Nov. 15, 2016, to Nov. 3, 2018.
According to court documents, the conspiracy was responsible for distributing more than three kilograms of heroin. During the course of the investigation, law enforcement officers utilized confidential sources to make controlled buys of heroin from Steed and others, and conducted surveillance of drug transactions with various individuals, including co-defendants Richard J. Smith, 46, of Springfield, and Rashad J. Moore, 28, of Branson, Mo. On several occasions, Steed had children in her car with her during the drug transactions.
On Oct. 17, 2018, law enforcement officers executed a search warrant at Steed’s residence and seized 24 grams of heroin from her. The owner of the residence told investigators that Steed paid $1,300 in cash each month for rent. Officers also searched a Waynesville, Mo., home that Steed was renting and seized a loaded Sig Sauer .380-caliber pistol and two bundles of cash that totaled $5,435. According to court documents, Steed continued to distribute heroin after those warrants were executed.
During the conspiracy, Steed used the proceeds of drug trafficking with her boyfriend to purchase an engagement ring for $14,000 and $20,000 to close on the purchase of a home. As a result, she must forfeit $34,000 to the government as the proceeds of illegal drug trafficking.
Smith and Moore have pleaded guilty. Moore was sentenced to 20 months in federal prison without parole and Smith awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
OCDETF
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel 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 organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.Southern District of Florida Takes Sweeping Action Against CARES Act FraudRead the Press Release
Miami, Fl. – The United States Attorney for the Southern District of Florida, the Acting Assistant Attorney General of the United States Department of Justice’s Criminal Division, and representatives from their partner law enforcement agencies announced today an update on their criminal enforcement efforts in South Florida to combat fraud under the CARES Act, the relief legislation that Congress passed one year ago to help individuals and businesses financially survive the COVID-19 pandemic. In particular, the enforcement efforts announced today include prosecutions against defendants accused of trying to steal funds from the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program and the Unemployment Insurance (UI) benefit program.
The Southern District of Florida is a national leader in Covid-19 financial fraud prosecutions. In the last month, the district has charged the 18 federal criminal cases listed below alleging Covid-19/CARES Act-related financial fraud. Since passage of the CARES Act one year ago, the South Florida U.S. Attorney’s Office has charged a total of 38 COVID-19 financial fraud cases, with fraud scheme dollar amounts totaling over $75 million.
“When the CARES Act was first passed a year ago, our office promised South Floridians that we would prioritize the prosecution of fraudsters who tried to capitalize on this global health and economic crisis,” said Ariana Fajardo Orshan, the United States Attorney for the Southern District of Florida. “Our work has just begun, and we will continue to work together with our partners to hold accountable those who try to cheat South Floridians of much needed relief money.”
“To anyone thinking of using the global pandemic as an opportunity to scam and steal from hardworking Americans, my advice is simple – don’t,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “No matter where you are or who you are, we will find you and prosecute you to the fullest extent of the law.”
“The Cares Act was founded to provide financial assistance to millions of Americans and small businesses who are suffering the devastating economic effects caused by the COVID-19 pandemic. It is appalling to see that so many fraudsters orchestrated COVID-19 schemes of this magnitude. It is these indeterminate times where it is imperative for law enforcement partners to combat those who continue to enrich themselves by stealing from Americans in dire need of these funds”, said Acting Special Agent in Charge Tyler R. Hatcher, of IRS Criminal Investigation, Miami Field Office.
“Combatting fraud in the economic stimulus programs focused on providing aid to the nation’s small businesses requires a whole of government response,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG will aggressively pursue evidence of fraud with its law enforcement partners. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
“Our investigations quickly identified individuals willing to capitalize on this national emergency to enrich themselves at the expense of struggling businesses and their employees,” said George L. Piro, Special Agent in Charge, FBI, Miami Field Office. “Today does not represent the end of our efforts in this fight. The FBI will continue to pursue those who defraud the government until they are all prosecuted.”
“The egregious act of stealing from the U.S. government hurts the well-deserving American workers and families that truly deserve the financial assistance provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” said Juan A. Vargas, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “Together with our federal, state, and local partners we will continue to investigate these types of crimes and seek justice for all Americans trying to make it through this pandemic. We stand together with Americans and strive to obtain justice for all.”
“An important mission of the U.S. Department of Labor Office of Inspector General is to investigate allegations of fraud relating to the unemployment insurance program. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
“Taking advantage of a program designated to assist businesses in the midst of a pandemic is truly reprehensible,” said Special Agent in Charge Zinnia James of the Coast Guard Investigative Service, Southeast Region. “CGIS and our law enforcement partners will continue to aggressively pursue all manner of fraud within the maritime community.”
“Today’s announcement is the culmination of hard work by numerous agencies. It sends a clear message – federal law enforcement is watching, and will relentlessly pursue fraudsters and bring them to justice,” said Wayne Rosen, Assistant Special Agent in Charge, Miami Regional Office, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection. “We are proud to work with our law enforcement partners in this endeavor.”
Other law enforcement agency partners involved in recent prosecutions of alleged Covid-19 relief financial fraud are United States Secret Service and Federal Deposit Insurance Corporation, Office of Inspector General.
On March 27, 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect South Floridians from financial fraud related to the COVID-19 pandemic, the Southern District of Florida immediately established multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. The multifaceted approach to enforcement during this national health emergency continues.
Criminal enforcement in the Southern District of Florida to combat COVID-19/CARES Act- related financial fraud schemes have proceeded on numerous fronts, including:
- Paycheck Protection Program (PPP) fraud: Prominent among the District’s efforts have been cases involving attempts to obtain PPP loans through fraud. These loans were intended to help small businesses financially survive the COVID-19 pandemic. The cases charged in the District involve a range of conduct, from individual business owners who have inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for, to serial fraudsters who revived dormant corporations and purchased shell companies with no actual operations to apply for multiple loans falsely stating they had significant payroll, to organized criminal networks submitting identical loan applications and supporting documents under the names of different companies.
- Economic Injury Disaster Loans (EIDL) fraud: Another type of fraud charged in the District has been fraud against the EIDL program, which was designed to provide loans to small businesses, agricultural, and non-profit entities. Fraudsters have targeted the program by applying for EIDL advances and loans on behalf of ineligible newly-created, shell, or non-existent businesses, and diverting the funds for illegal purposes.
- Unemployment Insurance (UI) fraud: Due to the COVID-19 pandemic, more than $860 billion in federal funds has been appropriated for UI benefits through September 2021. People looking to exploit UI benefits during the pandemic use stolen identities to fraudulently file for UI benefits.
The following Covid-19 relief fraud cases were charged in the Southern District of Florida in the last 30 days:
United States v. Cleare, Case No. 21-mj-02515
Kimberly Cleare, 53, of Miami Gardens, Florida, was charged by criminal complaint with wire fraud. The complaint alleges that the defendant was involved in the submission of at least 13 fraudulent EIDL applications to the U.S. Small Business Administration on behalf of herself and other individuals. The complaint further alleges that Cleare provided substantially similar data on all the applications that she submitted, even though the applications were being submitted on behalf of different business entities. USPIS Miami investigated the case. Assistant U.S. Attorney Lauren Astigarraga is prosecuting it.
United States v. Thames, Case No. 21-mj-06101
Devonte Thames, 28, of Hollywood, South Carolina, was charged by criminal complaint with wire fraud, bank fraud, and conspiracy and attempt to commit wire fraud and bank fraud. The criminal complaint against Thames alleges that Thames participated in a conspiracy to submit at least $34 million worth of fraudulent PPP loan applications. Specifically, the criminal complaint alleges that Thames received a fraudulent PPP loan of $409,735 for his own company, the Berneta E. Thames Foundation LLC. The criminal complaint also alleges that Thames conspired to submit additional fraudulent PPP loan applications for other companies by recruiting others to submit such applications in exchange for kickbacks. IRS-CI Miami and FBI Miami investigated the case. Assistant U.S. Attorney Kiran N. Bhat and DOJ Trial Attorney Philip B. Trout are prosecuting it.
United States v. Rosado, Case No. 21-mj-6145
Jericca Rosado, 27, of Buford, Georgia, was charged by criminal complaint with wire fraud, bank fraud, and conspiracy and attempt to commit wire fraud and bank fraud. The criminal complaint alleges that Rosado participated in a conspiracy to submit at least $34 million worth of fraudulent PPP loan applications. Specifically, the criminal complaint alleges that Rosado received a $50,000 kickback payment in connection with a fraudulent PPP loan of $454,272, of which she passed $25,000 to a co-conspirator, as well as a second kickback payment in connection with a fraudulent PPP loan obtained by Devonte Thames, 28, of Hollywood, South Carolina, charged by separate criminal complaint. The criminal complaint against Rosado also alleges that Rosado conspired with Thames and others to receive additional kickback payments from fraudulently obtained PPP loan proceeds, and directed kickback payments from fraudulently obtained PPP loan proceeds to other co-conspirators and their businesses. IRS-CI Miami and FBI Miami investigated the case. Assistant U.S. Attorney Kiran N. Bhat and DOJ Trial Attorney Philip B. Trout are prosecuting it.
United States v. Kralievits, Case No. 21-cr-20157
Ioannis Kralievits, 30, of Miami, Florida, was charged in an information with conspiracy to commit an offense against the United States in violation of Title 18, United States Code, Section 371, relating to the alleged fraudulent receipt of a PPP loan of approximately $767,000. FDIC-OIG and IRS-CI Miami investigated the case. Assistant U.S. Attorney Michael N. Berger and DOJ Trial Attorney Emily Scruggs are prosecuting it.
United States v. Etwaru, Case No. 21-cr-20156
Justin Etwaru, 25 of Boca Raton, Florida, was charged in an information with conspiracy to commit an offense against the United States in violation of Title 18, United States Code, Section 371, relating to the alleged fraudulent receipt of a PPP loan of approximately $57,000. FDIC-OIG and IRS-CI Miami investigated the case. Assistant U.S. Attorney Michael N. Berger and DOJ Trial Attorney Emily Scruggs are prosecuting it.
United States v. Rivero, Case No. 21-cr-20160
Leonel Rivero, 35, of Miami, Florida was charged by information for his alleged participation in a scheme to obtain fraudulent PPP loans based on falsified income and expense information and tax documentation. According to the allegations in the information, Rivero owned a tax-preparation business in Hialeah Gardens and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 PPP loan applications sought more than $2.3 million in PPP loans. On each PPP loan application, Rivero allegedly falsified the applicant’s prior-year income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices allegedly received approximately $975,582 in PPP loans as a result of the fraud. IRS-CI Miami and SBA-OIG investigated this case. Assistant U.S. Attorney Christopher Browne and DOJ Trial Attorney Della Sentilles are prosecuting it. Assistant U.S. Attorney Nicole Grosnoff is handling asset-forfeiture.
United States v. Thompkins, Case No. 21-cr-20136
Kenbrell Armod Thompkins, 32, of Miami, Florida, a former National Football League (NFL) player, was charged by federal indictment with access device fraud and aggravated identity theft. It is alleged in court documents that Thompkins used the stolen identities of numerous Florida residents to obtain fraudulent unemployment insurance benefits from the State of California. California distributed these unemployment benefit funds in the form of debit cards, which were subsequently mailed to addresses associated with Thompkins in Miami and Aventura, Florida. Court documents allege that from August 16 through September 23, 2020, Thompkins used these debit cards to withdraw funds at various ATMs in Miami-Dade County. The alleged scheme involves approximately $300,000 in California unemployment insurance funds credited to the fraudulent debit cards associated with Thompkins, out of which approximately $230,000 of the funds were withdrawn. U.S. Secret Service, DOL-OIG, and City of Aventura Police Department investigated the case. Assistant U.S. Attorney Eduardo Gardea, Jr., is prosecuting it.
United States v. Travis, Case No. 21-mj-6173
Johnesha Travis, 21 of Fort Lauderdale, Florida and his alleged co-conspirator were charged by federal criminal complaint in the Southern District of Florida with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. They are alleged to have obtained a PPP loan of $152,605 for their company, Luxury Yacht Rentals Plus, LLC, using falsified documents. The complaint also alleges that Luxury Yacht Rentals Plus LLC did not have real employees and that they used the loan funds on personal items such as restaurants and hotels. Coast Guard Investigative Service investigated the case. Assistant U.S. Attorney Bertila Fernandez is prosecuting it.
United States v. Garcia, Case No. 21-mj-6150
Dennes Garcia, 27, of Atlanta, Georgia was charged in a federal criminal complaint with wire fraud, bank fraud, and conspiracy and attempt to commit wire fraud and bank fraud. The criminal complaint against Garcia alleges that Garcia obtained a PPP loan of $285,742 for his company, Dhanda Corporation, using falsified documents. It is alleged that Garcia failed to use the PPP loan on business-related or payroll-related expenses and instead made substantial payments to himself and others. According to the complaint, Garcia participated in a conspiracy to submit at least $34 million worth of fraudulent PPP loan applications. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.6 million. IRS-CI Miami and FBI Miami investigated the case. Assistant U.S. Attorney Lindsey Friedman is prosecuting it.
United States v. Denton, Case No. 21-mj-6149
Cindi Ellis Denton, 62, of Eastvale, California was charged in a federal criminal complaint with wire fraud, bank fraud, and conspiracy and attempt to commit wire fraud and bank fraud. The criminal complaint against Denton alleges that Denton obtained a PPP loan of $491,310 for her company Emerald Jade Business Solutions, using falsified documents. It is alleged that Denton failed to use the PPP loan on business-related or payroll-related expenses and instead made substantial payments to herself and others. According to the complaint, Denton conspired with others to obtain millions of dollars in fraudulent PPP loans. According to the complaint, Denton participated in a conspiracy to submit at least $34 million worth of fraudulent PPP loan applications. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.6 million. IRS-CI Miami and FBI Miami investigated the case. Assistant U.S. Attorney Lindsey Friedman is prosecuting it.
United States v. Dorlus, Marc, and Geronimo, Case No. 21-mj-06175
Wally Dorlus, 41, of Margate, Florida, Marcgenson Marc, 37, of Coconut Creek, Florida, and Roberto Geronimo, 40, of Miami Gardens, Florida, were charged by criminal complaint for their alleged participation in a scheme and conspiracy to obtain fraudulent PPP loans based on falsified employee and payroll obligations and documentation. According to the complaint, Dorlus was a tax preparer who, in exchange for kickbacks, facilitated the filing of over 167 fraudulent PPP loan applications, which included falsified supporting payroll tax documentation, seeking over $28 million in PPP loan funds on behalf of companies under his control and over 100 other companies. Of those, approximately 33 PPP loans were funded in the approximate amount of $5.5 million. It is alleged that Dorlus collected kickbacks ranging from 12.5% to 25% of the PPP loan proceeds and that Marc was a recruiter for Dorlus who shared in the kickbacks, which were paid to entities under the control of Dorlus and Marc or in cash. Marc, in turn, recruited at least one other individual to apply for fraudulent PPP loans through Dorlus and recruited additional applicants in exchange for a credit on the kickback he owed, says the complaint. Geronimo, who was on bond pending trial on federal drug conspiracy charges in Case No. 20-cr-20066, allegedly received a fraudulent PPP loan for approximately $250,000 based on falsified payroll tax documentation submitted by Dorlus. Geronimo paid 25% of the fraudulent PPP loan proceeds as a kickback, which was shared between Dorlus and Marc, and spent the remainder on personal expenditures, according to the allegations. As an individual subject to federal indictment, Geronimo was prohibited from applying for a PPP loan on behalf of any entities under his control. It is alleged that after receiving his own fraudulent PPP loan, Geromino attempted to recruit additional applicants for a share of the kickbacks. IRS-CI Miami investigated the case. Assistant U.S. Attorney Stephanie Hauser is prosecuting it.
United States v. Saintfumin and Adras, Case No. 21-mj-02529
Oldley Saintfumin, 40, and Lucie Adras, 38, of North Miami Beach, Florida, were charged by criminal complaint for their alleged unauthorized use of debit cards issued in other individuals’ names by various state employment offices that distribute unemployment insurance benefits. From in or around May 2020, through September 2020, various states reported that dozens of unemployment insurance benefit claims had been submitted or accessed from an Internet Protocol address associated with the defendants’ residence. During execution of a search warrant at the residence, law enforcement seized at least 15 debit cards issued by the various states’ employment offices in the names of individuals other than Saintfumin and Adras. Both Saintfumin and Adras were allegedly captured on ATM surveillance video withdrawing funds from accounts associated with unemployment insurance benefits issued in other individuals’ names. DOL-OIG investigated this case. Assistant U.S. Attorney Stephanie Hauser is prosecuting the case. Assistant U.S. Attorney Mitchell Hymen is handling asset forfeiture.
United States v. James Medard, a/k/a “James Menard,” a/k/a “James Joseph,” Case No. 21-mj-02514
James Medard, 47, of Miramar, Florida was charged with wire fraud, money laundering, and aggravated identity theft in a criminal complaint that alleges that he applied for fraudulent loans under the CARES Act. According to the complaint, the defendant, who is on federal supervised release in Case No. 14-cr-20469, obtained two EIDL loans, one under the name of a business he controlled, and a second one in his name, and submitted false earnings information, a falsified IRS form, as well as false personal identifying information to conceal his true identity and obtain approval for the loans. The complaint also alleges that the defendant applied for a fraudulent PPP loan, for which he submitted falsified IRS forms, and lists of purported employees containing the means of identification of real people who did not work for the defendant or his business, and did not authorize the defendant or his business to use their means of identification to support a PPP loan application. The defendant used some of the fraud proceeds to purchase a parcel of real property, according to the complaint. IRS-CI Miami investigated this case. Assistant U.S. Attorney Aimee C. Jimenez is prosecuting it.
United States v. Blanco, Case No. 21-mj-08094
Yansel Jimenez Blanco, 30, of Greenacres, Florida, and the owner of a trucking company, was charged by criminal complaint with one count of wire fraud, one count of bank fraud, and one count of money laundering. The complaint alleges that the defendant applied for and received a $487,500 PPP loan to pay business expenses for his trucking company, such as employee payroll. The defendant then used the funds to pay for personal expenses, or transferred the funds to multiple individuals who were not employees, according to the complaint. FBI Miami investigated the case. Assistant U.S. Attorney Susan Osborne is prosecuting it.
United States v. Wolf, Case No. 21-mj-08099
Barry Wolf, 57, of Boca Raton, Florida, was charged with wire fraud. The criminal complaint alleges that defendant received over $500,000, primarily from two fraudulent PPP loans. The defendant also submitted five fraudulent EIDL applications, according to the complaint. FBI Miami investigated the case. Assistant U.S. Attorney Eli S. Rubin is prosecuting the case.
United States v. Herrera, Case No. 21-mj-02532
Yamil Herrera, 49, of Miami, Florida, was charged with wire fraud, in a criminal complaint that alleges that defendant received over $300,000 from two fraudulent EIDL loans and advances. FBI Miami investigated the case. Assistant U.S. Attorney Eli S. Rubin is prosecuting it.
United States v. Duhart, Case No. 21-mj-06153
Shanrika Shantae Duhart, 35, of Miramar, Florida was charged in a federal criminal complaint with wire fraud, bank fraud, and conspiracy and attempt to commit wire fraud and bank fraud. The criminal complaint against Duhart alleges that Duhart obtained a PPP loan of $388,790 for her company Hair She Goes, Inc., using falsified documents. It is alleged that Duhart failed to use the PPP loan on business-related or payroll-related expenses and instead made substantial payments to herself and to others, withdrew large amounts in cash, transferred money to other entities, and used money to pay for her personal expenses. According to the complaint, Duhart participated in a conspiracy to submit at least $34 million worth of fraudulent PPP loan applications. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.6 million. IRS-CI and FBI Miami investigated the case. Assistant U.S. Attorney Yisel Valdes and DOJ Trial Attorney Philip B. Trout are prosecuting it.
United States v. Bain, Case No. 21-mj-06152
Yashica Sherea Bain, 38, of Miramar, Florida was charged in a federal criminal complaint with wire fraud, bank fraud, and conspiracy and attempt to commit wire fraud and bank fraud. The criminal complaint against Bain alleges that Bain obtained a PPP loan of $415,232 for her company Microblading Brow Studio, LLC, using falsified documents. It is alleged that Bain failed to use the PPP loan on business-related or payroll-related expenses and, instead, made substantial payments to herself and others, withdrew large amounts in cash, and used money towards the purchase of a bar and lounge in Miami, Florida. According to the complaint, Bain conspired with others to obtain millions of dollars in fraudulent PPP loans. According to the complaint, Bain participated in a conspiracy to submit at least $34 million worth of fraudulent PPP loan applications. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.6 million. IRS-CI and FBI Miami investigated the case. Assistant U.S. Attorney Yisel Valdes and DOJ Trial Attorney Philip B. Trout are prosecuting it.
Indictments, criminal complaints, and other criminal charges referenced above are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To learn more about the Southern District of Florida’s COVID response, visit: https://www.justice.gov/usao-sdfl.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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South Carolina Man Sentenced to 12 Years in Federal Prison for Possession and Use of Explosive DevicesRead the Press Release
Anderson, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Michael Lambert Seabrooke, 37, formerly of Barnwell, was sentenced to 12 years in federal prison after pleading guilty to possession of explosive devices and two counts of malicious damage and attempt to damage by means of explosive materials.
Evidence presented in court established that on July 7, 2019, a Pickens Police Department officer, after hearing an explosion, located a destructive device in a fenced-in area of the Pickens County Courthouse located at 214 East Main Street in Pickens. The device had detonated and caused minor damage to the building, but no injuries were reported. A preliminary investigation indicated the device was made of two metal pipe bombs attached with a belt to a propane cylinder with the valve in the open position. The pipe bombs detonated but did not ignite the propane. During a search of the area, law enforcement officers recovered items from the scene including galvanized metal pipes, pieces of pipe endcaps, black plastic bag type material, green plastic bag type material, a propane cylinder, along with propane cylinder hose.
Multiple law enforcement agencies worked together in the investigation to promptly locate the subject responsible. During the investigation, surveillance video was obtained from nearby businesses. In the video, a Chevy Silverado pickup truck with a South Carolina license plate was identified as a suspect vehicle. The vehicle was registered in Columbia; and, on July 9, 2019, the vehicle was located in front of a residence there. Federal agents maintained surveillance on the vehicle until contact was made with a subject walking to the truck. A Federal Bureau of Investigation (FBI) Task Force Officer approached the male and identified the subject as Michael Seabrooke.
During an interview, Seabrooke confessed to federal agents that he placed the device at the Pickens County Courthouse and that he also threw several destructive devices on the roof of the Department of Social Services building in Pickens. Agents obtained Seabrooke’s consent to search his truck and the bomb squad located two metal pipe bombs and two incendiary devices (Molotov cocktails) inside the vehicle. During a search of his residence and vehicle, agents located materials consistent with those found on the explosive devices.
Agents also went to the Department of Social Services building in Pickens where they recovered additional explosive devices consisting of three Molotov cocktails and one detonated pipe bomb that caused minimal damage.
During his interview, Seabrooke was completely cooperative with law enforcement and indicated he placed the devices and acted because he was concerned about issues with the Department of Social Services and his family.
United States District Court Judge Timothy M. Cain sentenced Seabrooke to 144 months in federal prison followed by 36 months of supervised release. There is no parole in the federal system.
The case was investigated by the Pickens County Sheriff’s Office, the Pickens Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Max Cauthen handled the case.
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Settlement Reached Between U.S. Department of Labor and Local Employer in Suit Enforcing Final Orders under Surface Transportation Assistance ActRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that D.G. Construction and Hauling, LLC and the U.S. Department of Labor, with DOJ local counsel, have reached a settlement of a civil action filed on August 5, 2020 in the United States District Court for the Western District of Louisiana seeking to enforce administrative orders against D.G. Construction and Hauling, LLC, and its owner, Brett Deshotels (“Defendants”), in Lafayette, Louisiana, for violations of employee protection provisions of the Surface Transportation and Assistance Act.
The Secretary’s orders found Defendants liable for firing its employee truck driver in retaliation for reporting equipment defects and refusing to drive due to safety concerns, and had awarded reinstatement, back pay and interest, $5,000 in compensatory damages, and $10,000 in punitive damages to the truck driver, as well as an order for $26,568.27 in attorney’s fees to his trial counsel. As Defendants had failed to fully comply with the final orders to compensate the truck driver, as ordered, the enforcement action was filed against Defendants.
This settlement is the result of a coordinated effort by U.S. Department of Labor Trial Attorneys Felix Marquez and Mary Cobb and Assistant U.S. Attorney Shannon Brown.
The Occupational Safety and Health Administration (OSHA) Whistleblower Protection Program enforces the whistleblower provisions of 25 whistleblower statutes protecting employees from retaliation for reporting violations of various workplace safety and health, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health insurance reform, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, maritime, securities and tax laws, and for engaging in other related protected activities. More information on OSHA’s Whistleblower Protection Program is available at: https://www.whistleblowers.gov/
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. To learn more about OSHA visit the website: https://www.osha.gov/
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Serial Fraudster Pleads Guilty to Federal Charges Related to Multiple Fraud Schemes Resulting in Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – Robert Lee Snowden Jr., age 45, of Owings Mills, Maryland, pleaded guilty on March 22, 2021, to the federal charges of conspiracy to commit wire fraud and to aggravated identity theft, in connection with a series of fraud schemes perpetrated between 2013 and 2020.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Inspector General Marva Sutherland of the Office of Inspector General for the Maryland Department of Human Services.
According to his guilty plea, from 2013 to July 16, 2020, Snowden conspired to defraud the Maryland Department of Human Services (DHS) and the Federal Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the “Food Stamp Program,” by using victims’ stolen identification information to obtain SNAP benefits. Snowden sold the SNAP benefits for cash at approximately 50% of the value of the benefits on the SNAP card.
In 2011, prior to being laid off from his temporary position at a health care business, Snowden stole lists of health care professionals’ personal identifying information. Beginning in 2013, Snowden used the health care professionals’ stolen identity information to apply for SNAP benefits, creating fraudulent supporting documents in the names of the victims to provide when requested during the application process. Snowden used the addresses of acquaintances or nearby vacant homes for the mailing of SNAP cards, which Snowden, or another at his direction, would pick up from those addresses.
Snowden admitted that he sold the majority of the SNAP benefit cards for cash. After the buyer used the SNAP card, the card was returned to Snowden, who would sell the card to another buyer when the next month’s benefits were loaded to the card. Snowden and his co-conspirator, Larae Betrand, also used the SNAP cards at stores to purchase groceries for themselves. Over 220 victims’ identities were used to apply for SNAP benefits and at least $1,021,583.72 in SNAP benefits were issued and redeemed through the scheme. Snowden also used victims’ identities to open utility accounts including internet, phone, and electricity at his residence.
From 2015 to 2019, Snowden was in a relationship with Larae Betrand. Betrand was aware of and participated in the SNAP fraud scheme. In addition to receiving DHS mail and SNAP benefit cards at her home address, Betrand sometimes posed as victims on phone calls with DHS and provided false information to secure approval of the fraudulent SNAP applications. Snowden provided Betrand fraudulent SNAP cards for her personal use.
As detailed in his plea agreement, Snowden and Betrand also engaged in a scheme to obtain fraudulent loans from banks and a credit union by providing false employment information on applications for six vehicle loans. Snowden fabricated documents, intending to deceive the lenders regarding his and Betrand’s ability to repay the loans. Snowden was unemployed during all relevant times, and Snowden was aware that Betrand earned significantly less than they claimed on the false documents. Between March 2017 and February 2020 Snowden and Betrand fraudulently obtained $92,668.58 for four auto loans—two loan applications were denied.
Finally, in the spring of 2020 and continuing through at least July 9,2020, Snowden attempted to obtain COVID-19 SBA Economic Injury Disaster Loan (EIDL) using the identity of at least one of the SNAP victims. Using the victim’s information, Snowden established a fictitious business entity in the name of the victim and obtained fraudulent credentials to apply for EIDL. Snowden did not complete the transaction before law enforcement searched his residence on July 16, 2020.
Snowden faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. Additionally, Snowden will be required to pay restitution of at least $1,021,583.72. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 3, 2021 at 10 a.m.
Betrand, age 39, of Elkridge, Maryland, previously pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in relation to this scheme. Betrand will also be ordered to pay at least $5,000 restitution.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of Agriculture Office of Inspector General, the U.S. Postal Inspection Service, and the Maryland Department of Human Services Office of Inspector General for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the case.
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Second California Man Charged with Conspiracy to Launder Proceeds of Fraud Schemes Targeting New Jersey Law Firm and SBA LoansRead the Press Release
NEWARK, N.J. – A second man from California has been charged with conspiring to launder money that originated from fraudulently obtained loans from the U.S. Small Business Association and from a business email compromise scheme that targeted a law firm based in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Anthony Debose Hannah, 57, of Moreno Valley, California, is charged by complaint with one count of money laundering conspiracy. Hannah was taken into custody this morning in California and is scheduled to appear by videoconference today before U.S. Magistrate Judge Shashi H. Kewalramani in Riverside, California, federal court.
According to documents filed in this case and statements made in court:
In June 2020, Victim 1 communicated via email with a law firm in New Jersey that was helping Victim 1, a resident of Bergen County, New Jersey, with a real estate transaction. One of the law firm’s email accounts was compromised and someone purporting to be emailing on behalf of the law firm sent instructions to Victim 1 to wire approximately $560,000 into an escrow account under the name “Eric’s Commercial LLC.” Victim 1 wired approximately $560,000 into a business bank account controlled by Eric Bullard, Hannah’s conspirator. Victim 1 did not intend for the money to be transferred to Bullard and sent the wire transfer to Bullard’s account under the belief that the wire instructions had come from the New Jersey law firm.
Shortly after the $560,000 was transferred into the Eric’s Commercial LLC bank account, approximately 10 cash withdrawals were made from the account totaling $96,275. On June 14, 2020, three large wire transfers totaling approximately $460,000 were made from the Eric's Commercial Bank Account to other bank accounts. One of those transfers was a wire transfer of approximately $230,000 to an account in the name of “Anthony Property Management & Development,” an account controlled by Hannah. Hannah opened the Anthony Property Management account on May 18, 2020, and was the sole signatory on the account.
On June 15, 2020, approximately $230,000 was transferred from the Anthony Property Management account to another business account that does not appear to be controlled by Hannah or Bullard.
In addition to laundering of the proceeds from the business email compromise, Bullard and Hannah also obtained and laundered funds from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. In July 2020, Hannah received into a business bank account that he controlled $145,400 from an SBA EIDL loan intended for a pharmacy company with a listed location in Idaho, some of which he shared with Bullard. Bullard also received a $143,100 SBA EIDL loan intended for a pharmacy company with a listed location in Colorado. A few days later, Bullard wrote a check to Hannah for $51,000. In addition to the SBA loan money, Hannah also received payments from the Illinois Department of Employment Security.
Bullard was arrested on similar charges last week in California and was ordered detained; he is pending transfer to the District of New Jersey.
The count of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transfer, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charges and allegations in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Salisbury Felon Facing Federal Charges for Gun Trafficking and for Illegal Possession of AmmunitionRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Jeffrey Dean Lecates, age 52, of Salisbury, Maryland, on the federal charges of being a felon in possession of ammunition and of dealing of firearms without a license. Lecates was arrested and had his initial appearance in U.S. District Court on March 24, 2021. He was ordered to be detained pending a detention hearing scheduled for March 31, 2021.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Wicomico County Sheriff Michael A. Lewis.
According to the affidavit filed in support of the criminal complaint, in December 2020, Wicomico County Sheriff’s Office officers (WCSO) received information that Lecates was manufacturing and selling firearms.
Law enforcement executed a search warrant at Lecates’ home on February 23, 2021 and seized a number of items, including: a 45 round capacity black PMAG magazine; numerous rounds of live ammunition and spent shell casings; a chore boy; gun rails and other gun parts; tools; drug paraphernalia; a book titled “How to Build Military Grade Suppressors”; and a black book bag containing four AR-15 lower receivers—including one with drilled holes ready to be assembled—and tools used to assemble firearms, gun cleaner, and five paper shooting targets.
According to the affidavit, a forensic analysis of Lecates’ cell phone allegedly revealed text messages indicating that Lecates was building and illegally selling/transferring firearms and ammunition. Photographs of weapons were also allegedly located on Lecates’ phone, including at least 12 outgoing photos of firearms. What appear to be suppressers (also known as “silencers”) are attached to the firearms in some photos. Within other text messages, Leactes allegedly acknowledged that he was prohibited from possessing and selling firearms.
If convicted, Lecates faces a maximum sentence of 10 years in federal prison for being a felon possession of firearm and a maximum of five years in federal prison for unlicensed selling of firearms. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, ATF, and the Wicomico County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Richard Gallena and Assistant U.S. Attorney Sandra Wilkinson, who are prosecuting the case.
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Rock Island Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On Thursday, March 18, 2021, United States District Court Chief Judge John A. Jarvey sentenced Michael Christopher Lewis, age 33, of Rock Island, Illinois, to 248 months in prison for Possession with Intent to Distribute Controlled Substances, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Lewis was ordered to serve four years of supervised release and to pay $300 to the Crime Victims’ Fund.
The investigation began in 2019 when law enforcement attempted to arrest Lewis - who had an active warrant for his arrest. Lewis fled and ran into a utility pole, knocking himself unconscious. Law enforcement arrested Lewis and found a loaded black handgun and $617.00 of drug proceeds in his possession. Lewis’s vehicle was searched and methamphetamine, cocaine, marijuana, morphine and fentanyl, and pills, as well as a loaded handgun were found. As a prior convicted felon, Lewis knew he was prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Repeat Offender Pleads Guilty in Heroin Investigation, Faces Max 30 Years ImprisonmentRead the Press Release
MACON, Ga. – A repeat offender arrested during an investigation into the distribution of heroin in Middle Georgia entered a guilty plea in federal court this week, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Kenneth Bernard Miles, 59, of Jonesboro, Georgia, pleaded guilty to one count distribution of heroin before U.S. District Judge Marc Treadwell on Wednesday, March 24. Miles faces a maximum of 30 years in federal prison to be followed by a minimum of six years of supervised release and up to a possible $2,000,000 fine. Sentencing is scheduled for June 10, 2021. There is no parole in the federal system.
“The penalty is steep for repeat drug traffickers who push the most deadly and addictive illegal opioids into our communities,” said Acting U.S. Attorney Leary. “Thanks to the combined efforts of the DEA, GBI, Butts County Sheriff’s Office and Byron Police Department, a known source of heroin has been cut off.”
“The mission of DEA is unwavering--we combat drug traffickers by investigating those who distribute illegal drugs (in this case heroin),” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Drugs like heroin ultimately cause immeasurable damage to our communities. The successful investigation against this reoffender and subsequent prosecution led to today’s guilty plea. The case’s outcome is an accomplishment for law enforcement and a victory for the Middle Georgia community.”
On June 20, 2020, a confidential source (CS) contacted Miles about obtaining heroin. They agreed to meet off Exit 205 on I-75 in Butts County, Georgia. Prior to meeting with Miles, the CS was searched by agents with the Drug Enforcement Administration (DEA) and provided with an audio/video recording device. The two met, and Miles provided a bag of what was later confirmed to be 27.47 grams of heroin. As part of his plea, Miles admitted that the amount of heroin attributable to him in the investigation was more than 3 kilograms, but less than 10 kilograms.
Miles was previously convicted of conspiracy to manufacture, distribute and possess with intent to distribute more than five kilograms of cocaine and more than 50 grams of cocaine base and possession with intent to distribute more than 500 grams of cocaine in the Northern District of Florida. In that case, Miles was sentenced to a total of 135 months imprisonment and ten years of supervised release on April 12, 2006. In pleading guilty this week in Middle Georgia, Miles admitted that he had violated the terms of his supervised release from his prior Northern District of Florida conviction.
This case was investigated by the DEA, GBI, Butts County Sheriff’s Office and Byron Police Department. Assistant U.S. Attorney Elizabeth Howard is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Randolph County man admits to methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Casey Warren Lang, of Huttonsville, West Virginia, has admitted to drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Lang, 30, pleaded guilty today to one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine,” and one count of “Unlawful Possession of Firearm.” Lang, a person prohibited from having firearms because of a prior conviction, admitted to having at least 50 grams of methamphetamine and 13 firearms in June 2019 in Randolph County.
Lang faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for the meth charge. He faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mountain Region Drug & Violent Crimes Task Force, and the Randolph County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Plant City Man Sentenced to More Than Five Years in Federal Prison for Money LaunderingRead the Press Release
Orlando, FL – U.S. District Judge Paul G. Byron has sentenced Melvin Rodriguez (49, Plant City) to five years and four months in federal prison for money laundering. The court also ordered Rodriguez to forfeit $26,000, which is traceable to proceeds of the offense.
Rodriguez had pleaded guilty on January 4, 2021.
According to court documents, from December 2019 through February 12, 2020, Rodriguez laundered approximately $260,000 in bulk cash that he believed to be the proceeds of narcotics sales. During this period, Rodriguez owned a tire shop in Plant City and used his business to launder what he believed to be drug money. As a part of his scheme, Rodriguez opened bank accounts at different banks and utilized a system of micro-structuring to avoid detection of his criminal activities.
“The combined efforts of the federal, state, and local agencies comprising the Federal Financial Crimes Task Force led to a successful resolution in this case, demonstrating just how impactful law enforcement can be in the fight to rid our communities of crime,” stated Special Agent in Charge Brian Payne of IRS Criminal Investigation. “This IRS led initiative is designed to harness the best each participating agency and department has to offer. We are proud to work with our partners to uncover and investigate financial and other related crimes.”
This case was investigated by Internal Revenue Service Federal Financial Crimes Task Force, including IRS – Criminal Investigation, the Osceola County Sheriff’s Office, the St. Cloud Police Department, the Winter Park Police Department, and the Kissimmee Police Department. It was prosecuted by Assistant United States Attorney Amanda Daniels.
Philadelphia Man Sentenced to 210 Months’ Imprisonment on Drug Trafficking ConspiracyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nathan Crowder, age 32, of Williamsport, Pennsylvania, was sentenced to 210 months' imprisonment followed by a four-year term of supervised release by U.S. District Court Judge Matthew W. Brann for conspiring to distribute heroin and a mixture of heroin and carfentanil.
According to Acting U.S. Attorney Bruce D. Brandler, during a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro reported treating 51 such cases within a 48-hour period.
Two of Crowder’s co-conspirators, Markeese Askew and Wayne Davidson pleaded guilty in October 2020 to the same charge. Davidson was sentenced to 210 months’ imprisonment in March. Askew faces a minimum sentence of 11 years’ imprisonment. Raymond Howard, the fourth individual indicted in the case, was convicted after a five-day jury trial in October and awaits sentencing. He faces a minimum sentence of 10 years’ imprisonment.
In total, Crowder and the three co-conspirators were charged with delivering a mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals.
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Alisan V. Martin and Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Philadelphia Man Arrested for Violent Road Rage Incident Earlier this Month now Facing Federal Charges for Armed Robbery of Kensington PharmacyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Gregory Stevens, 27, of Philadelphia, PA, was arrested today and charged by Indictment with Hobbs Act robbery and using a firearm during a crime of violence.
The Indictment alleges that on February 22, 2021, the defendant committed armed robbery of Universal Pharmacy on Kensington Avenue in Philadelphia, stealing oxycodone and other drugs. According to court documents, when Stevens demanded the oxycodone, the pharmacist told Stevens it was in the back room of the pharmacy and led him there to get it. A struggle ensued when the pharmacist attempted to resist Stevens, and the defendant shot the pharmacist in the chest with the 9mm semi-automatic pistol he was carrying. Stevens allegedly committed this crime wearing a Pennsylvania Parole Board GPS-enabled ankle monitor.
The defendant also has pending charges in state court for distribution of heroin in December 2020, and for aggravated assault stemming from a March 9, 2021 road-rage incident near the intersection of Broad Street and Washington Avenue in Philadelphia, during which he violently attacked another motorist after a traffic accident, going so far as to throw cinder blocks through the other motorist’s car windows at the driver and teenage passenger.
“As alleged in the Indictment, Gregory Stevens is a grave danger to the community and is now facing federal charges and a lengthy prison sentence if convicted,” said Acting U.S. Attorney Williams. “If you commit a serious violent offense in the City of Philadelphia, we and our law enforcement partners will do all we can collectively to arrest and prosecute you to the fullest extent of the law.”
“Gregory Stevens allegedly carried out a daylight armed robbery that ended with an innocent man shot in the chest,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI/Philadelphia Police Violent Crimes Task Force is working every day to identify and arrest those brazen enough to commit such vicious acts. For the safety of this city and everyone in it, it’s imperative we get violent criminals off the street.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a mandatory minimum sentence of 10 years and a maximum possible sentence of life imprisonment.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Part-time Grant Administrator Pleads Guilty to Converting $57K from FEMA Grant to His Own Use, Filing False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. – A resident of Hollidaysburg, PA waived indictment and pleaded guilty in federal court to charges of conversion of government funds and filing false tax returns, Acting United States Attorney Stephen R. Kaufman announced today.
Anthony Dibona, age 57, pleaded guilty to five counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about April 19, 2013, to on or about June 18, 2017, Dibona received and converted falsely to his own use a total of $57,242 in federally-funded grant money from the Federal Emergency Management Agency, through payments made to him to which he was not entitled.
Further, when filing his original tax returns for tax years 2013, 2014, and 2015, Dibona omitted all grant income from his form 1040s, and made written declarations under the penalties of perjury, which he did not believe to be true and correct. After the IRS discovered that Dibona had received unreported income from the grant, Dibona was advised the grant income was taxable. Accordingly, Dibona through a tax preparer filed a first set of amended returns for the relevant tax years and added the grant income to his returns. However, on July 24 to July 25, 2018, Dibona went to a different tax preparer and filed a second set of amended returns removing the grant income, again making written declarations under the penalties of perjury which he did not believe to be true and correct. Similarly, Dibona also filed an original return for tax year 2017 and omitted his grant income. This conduct resulted in a total tax loss of $19,809.
Judge Gibson scheduled sentencing for August 2, 2021 at 10:00 a.m. The law provides for a maximum total sentence of 22 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and the Department of Homeland Security – Office of Inspector General conducted the investigation that led to the prosecution of Dibona.
Owner of Defunct Urine Drug Testing Laboratory Agrees to Pay over $2 Million to Resolve Allegations of Participation in Kickback SchemesRead the Press Release
CHARLOTTE, N.C. – William T. Stetzer, Acting United States Attorney for the Western District of North Carolina announced today that the United States has settled claims asserted against Philip McHugh, one of the former owners of Physicians Choice Laboratory Services (PCLS), a now-defunct diagnostic testing laboratory formerly located in Charlotte and Rock Hill, South Carolina. McHugh has agreed to pay $2,021,795.57 to resolve the United States’ 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 McHugh, 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.
“Strategic drug testing, when medically indicated and ordered without the taint of monetary gain, is an important tool that medical professionals can use to safeguard patients by confirming compliance with prescription medications and identifying signs of substance use disorders,” said Acting U.S. Attorney Stetzer. “Offering financial incentives to medical providers in exchange for performing these tests not only violates the law, it undercuts the significant efforts that the medical and law enforcement communities have made to combat the opioid crisis in America.”
“This laboratory used prohibited financial instruments and giveaways to physicians for patient referrals,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta (HHS-OIG). “Such quid pro quo arrangements are kickbacks that stifle competition and steer business to the company offering the inducements.”
This settlement resolves the United States’ allegations that during the time period beginning on June 20, 2013, and continuing through October 26, 2015, PCLS submitted false claims to the Medicare program as a result of McHugh’s participation in various kickback schemes, including (1) the provision of urine drug testing equipment, including desktop analyzers and associated supplies and services, to two physicians; (2) PCLS’ payment of volume-based commissions, and later a salary, to an individual in exchange for that individual’s exercise of influence over two physician practices; and (3) the provision of loans to two physicians – all with a purpose to induce the referral of quantitative urine drug tests to PCLS.
In December 2019, the U.S. Attorney’s Office for the Western District of North Carolina announced that another defendant, Manoj Kumar, a former sales representative and manager of PCLS, had paid $649,407 to resolve claims asserted by the United States that he participated in schemes to illegally induce physicians to refer patients to PCLS for medically unnecessary urine drug tests.
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.
This settlement was the result of coordinated efforts and investigation by the HHS-OIG and U.S. Attorney’s Office. The claims resolved in this settlement are allegations only and there has been no determination of liability.
Owner of Central Medical Systems Sentenced to 15 Months for Medicare Billing FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Alan Trent Harley (62, Chuluota) to 15 months in federal prison for wire fraud. The court also ordered Harley to forfeit more than $870,000, which is traceable to proceeds of the offense.
Harley had pleaded guilty on December 4, 2020.
According to court documents, Harley co-founded Central Medical Systems, a provider of wound care supplies, in 1986. As president and sole active owner of the business, Harley was responsible for submitting claims to Medicare on behalf of Central Medical Systems. From at least 2011 through 2015, Harley knowingly defrauded the government of more than $870,000 by submitting fraudulent claims to Medicare. Although his employees provided him with accurate data about which wound care supplies were sent, and in what quantities, Harley frequently changed that data (with respect to both product type and quantities) before submitting claims to Medicare, in order to obtain fraudulently higher reimbursements from Medicare.
This case was investigated by the Department of Health and Human Services – Office of the Inspector General. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Orange Park Man Sentenced to 60 Years in Federal Prison for Using A Minor to Produce Sexually Explicit ImagesRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Michael Glenn Chope (57, Orange Park) to 60 years in federal prison for using a minor child to produce sexually explicit images. Chope was arrested on April 3, 2019, and was ordered detained throughout the proceedings in this case.
Chope had pleaded guilty on May 28, 2020, to two counts of production of child exploitation materials.
According to court documents, on March 13, 2019, detectives from the Clay County Sheriff’s Office met with Chope in relation to their investigation into a tip received by the National Center for Missing and Exploited Children. Chope confirmed that his email address and telephone number were the same ones identified during the investigation and stated that he was sole user of his electronics and computers. He also admitted to viewing and possessing child exploitation materials, including on devices in his residence. Detectives seized several electronic devices from Chope’s home that were later found to contain numerous images produced by Chope. These images depicted Chope’s sexual abuse and molestation of a young child to whom he had access. Further investigation by the Clay County Sheriff’s Office and Homeland Security Investigations resulted in federal charges against Chope. Following the Clay County Sheriff’s Office’s contact with Chope, he became a fugitive and was later arrested on April 3, 2019, in Rowlett, Texas.
“HSI special agents are committed to finding and putting away those who prey on the innocent,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Working alongside our law enforcement partners, we will do everything we can to protect children by stopping child predators like this and putting them behind bars for the rest of their lives.”
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Ashley Washington and Kelly Karase.
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.
North Chili Man Charged with COVID Relief Fraud by Scheming to Get Paycheck Protection Program LoansRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Rech, 49, of North Chili, NY, was charged by criminal complaint with wire fraud and money laundering in connection with his application and receipt of approximately $277,500 in Paycheck Protection Program (PPP) loans. The charges carry up to 20 years in prison and a fine of $500,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, the defendant is the Director, President, and CEO of Guardian of Humanity, Inc., a nonprofit corporation. Rech is also the sole member of Eclipse, a limited liability company. Between April 2020 and February 2021, the defendant applied for three PPP loans. On his application, Rech fraudulently claimed that Guardian and Eclipse had employees and that he had been paying wages to these employees, which qualified him for the PPP loans. Subsequent investigation revealed that the defendant did not have any employees and did not paid wages to any employees. Rech received three PPP loans totaling approximately $277,500. Once he received the loans, the defendant took the money out of the bank in amounts less than $10,000 to avoid federal reporting requirements.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The defendant made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The criminal complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #New York man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Pedro Garcia Rondon, of New York, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Rondon, 33, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Hydrochloride and Cocaine Base.” Rondon admitted to working with others to distribute cocaine hydrochloride and cocaine case from June 2019 to December 2019.
Rondon is facing 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.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The U.S. Marshal Service and the West Virginia Air National Guard assisted with the arrests.
U.S. Magistrate Judge Robert W. Trumble presided.
Original press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
NDTX Round up: March 19-25Read the Press Release
SENTENCING – BRIAN KEITH MCKENZIE
On March 19, Brian Keith McKenzie, 53, was sentenced to 5 years in federal prison for mailing threatening communications. In February 2018, McKenzie mailed letters to the President and a federal judge containing homicidal and threatening comments. Additionally, McKenzie ground up medication into a white powdery substance to make it appear like Anthrax and placed it in the envelopes. When questioned by federal law enforcement, McKenzie stated that he had access to firearms and that he and his friends make explosives with home cleaning products and ammonium nitrates. The United States Secret Service and FBI conducted the investigation. Assistant U.S. Attorney Sid Mody prosecuted the case.
SENTENCING – CALVIN JAMES THOMAS
On March 24, Calvin James Thomas, 35, was sentenced to 57 months in federal prison for conspiracy to possess with the intent to distribute and the distribution of cocaine. Thomas purchased cocaine from a drug dealer who controlled two drug distribution houses in Dallas. He purchased the cocaine in preset quantities and then resold the drugs to others for a profit. The DEA conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – GEORGE RODRIGUEZ
On March 24, George Rodriguez, 34, plead guilty to possession with intent to distribute cocaine. In October 2018, undercover officers purchased two pounds of marijuana from Rodriguez. During the transaction, Rodriguez agreed to provide the undercover officers with cocaine in the future. Over the next several months, Rodriguez provided or facilitated five cocaine transactions. Rodriguez faces up to 20 years in federal prison for his crimes. The DEA, Greenville County Sheriff’s Office, and Greenville Police Department conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
SENTENCING – JONATHAN MARKEY CHOPANE aka “GOTTI”
On March 25, Jonathan Markey Chopane, 36, was sentenced to 7 years in federal prison for two counts of use of a facility of interstate commerce in aid of a racketeering enterprise. Chopane began communicating with a minor female via Instagram. He purchased a bus ticket for her to travel from Dallas to Houston to perform commercial sex acts that took place in hotels. Chopane arranged the commercial sex acts with the victim on his cell phone and then shared in the proceeds that the victim made. HSI conducted the investigation. Assistant U.S. Attorney Nicole Dana prosecuted the case.
More Charges Against State Lawmaker for $900,000 COVID-19 Fraud Scheme at Springfield Health Care CharityRead the Press Release
SPRINGFIELD, Mo. – Additional charges have been returned by a federal grand jury against an elected Missouri state representative for a nearly $900,000 COVID-19 fraud scheme, following her indictment last month for a separate fraud scheme in which she made false claims about a supposed stem cell treatment marketed through her clinics in southern Missouri, and for illegally providing prescription drugs to clients of those clinics.
Patricia “Tricia” Ashton Derges, 63, of Nixa, Missouri, was charged in a 23-count superseding indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, March 23. The superseding indictment replaces the original indictment returned on Feb. 1, 2021, and includes three new counts of COVID-19 fraud in addition to the original charges.
The superseding indictment was unsealed today when Derges appeared in federal court for her arraignment.
Derges was elected in November 2020 as a Missouri state representative in District 140 (Christian County). Derges, who is not a physician but is licensed as an assistant physician, operates three for-profit Ozark Valley Medical Clinic locations in Springfield, Ozark, and Branson, Mo. Derges also operates the non-profit corporation Lift Up Someone Today, Inc., with a medical and dental clinic in Springfield to serve the poor, homeless and uninsured.
Today’s indictment alleges that Derges fraudulently received $296,574 in CARES Act funds for Lift Up, although Lift Up did not provide any COVID-19 testing services to its patients. In fact, Lift Up’s medical clinic closed at the beginning of the COVID-19 pandemic and remained closed from March to June 2020.
Derges allegedly sought CARES Act funding for COVID-19 testing that had been provided, and already paid for, at her for-profit Ozark Valley Medical Clinic. According to the indictment, Derges requested reimbursement for $379,294 in COVID-19 testing and related expenses, and future funding in the amount of $503,350. In total, Derges applied for $882,644 from the CARES Act Relief Fund on Lift Up’s behalf.
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which provided $150 billion to states, tribal governments, and units of local government. Missouri was allocated approximately $2.3 billion. Missouri allocated approximately $34 million in CARES Act funds to Greene County. To administer the CARES Act funds it received, the Greene County Commission created the CARES Act Relief Fund to “promote recovery by funding programs and services that support the needs of those impacted by the COVID-19 public health emergency.” An advisory council of 30 citizen volunteers was appointed to review funding requests and make funding recommendations to the Greene County Commission.
Derges claimed in her application to the Greene County CARES Act Relief Fund that Lift Up provided COVID-19 testing and she sought reimbursement for “COVID-19 eligible expenses” that Lift Up had incurred. To support her claim, Derges provided invoices totaling $296,574 from Dynamic DNA for more than 3,000 COVID-19 laboratory tests. Derges submitted the Dynamic DNA invoices as Lift Up expenditures, the indictment says, although they were actually for testing done at Derges’s for-profit Ozark Valley Medical Clinic.
Lift Up, a non-profit charity, and Ozark Valley Medical Clinic, a for-profit corporation, are separate legal entities. According to the indictment, Ozark Valley Medical Center had already received payment from its clients of approximately $517,000 for these COVID-19 tests. Ozark Valley Medical Center charged clients, patients, or their patient’s employer approximately $167 per sample for its COVID-19 testing services. Derges allegedly concealed from Greene County that these COVID-19 tests had already been paid for by other payors.
In December 2020, the Greene County Commission awarded Lift Up $296,574 in CARES Act funding based upon Lift Up’s fraudulent application and the Dynamic DNA invoices Derges had submitted. Derges deposited the check into Lift Up’s bank account, then transferred the funds into Ozark Valley Medical Center’s bank account.
Derges provided several more invoices from Dynamic DNA to Greene County later in December 2020 to further support her application for Lift Up, the indictment says, although the invoices were actually for testing done for clients at Ozark Valley Medical Center, raising the total to $589,143 for 6,177 COVID-19 tests. Derges allegedly concealed from Greene County that Ozark Valley Medical Center already had been paid approximately $1 million by clients, patients, or their patients’ employers, for these COVID-19 tests.
Ozark Valley Medical Center’s COVID-19 testing services were a financial boon for the corporation, according to the indictment. Between January 2015 and May 19, 2020, Ozark Valley Medical Center’s daily bank account balance never exceeded $50,000. On Sept. 22, 2020, for example, the daily bank account balance was over $345,000.
Wire Fraud Scheme
The superseding indictment contains the original eight counts of wire fraud related to a nearly $200,000 fraud scheme, which lasted from December 2018 to May 2020. Derges allegedly marketed a stem cell treatment that actually utilized amniotic fluid that did not contain any stem cells.
The Controlled Substances Act
The superseding indictment contains the original 10 counts of distributing Oxycodone and Adderall over the internet without valid prescriptions. The indictment alleges that Derges, without conducting in-person medical evaluations of the patients, wrote electronic prescriptions for Oxycodone and Adderall for patients and transmitted them to pharmacies over the internet.
False Statements
The superseding indictment contains the original two counts of making false statements to federal agents investigating this case in May 2020.
Forfeiture Allegation
In addition to the criminal charges, the indictment contains a forfeiture allegation, which would require Derges to forfeit to the government any property derived from the proceeds of her alleged fraud schemes, as well as a money judgment representing the proceeds Derges obtained through the fraud schemes.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by the FBI, Health and Human Services – Office of Inspector General, and the DEA.
Meth Courier Pleads Guilty in DEA-led Wiretap Investigation into Drug Trafficking in Middle GeorgiaRead the Press Release
MACON, Ga. – A Macon, Georgia, resident pleaded guilty this week to conspiring to distribute methamphetamine after being arrested in an extensive drug trafficking wiretap investigation led by the Drug Enforcement Administration (DEA), said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Joshua Noojin, 40, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute methamphetamine before U.S. District Judge Marc Treadwell on Wednesday, March 24. Noojin faces a maximum of 20 years in federal prison to be followed by a minimum of three years of supervised release and a maximum $1,000,000 fine. Sentencing is scheduled for June 10. There is no parole in the federal system.
“The DEA is to be commended for spearheading this investigation into a prolific methamphetamine ring that was supplying vast amounts of this deadly narcotic to the Macon community,” said Acting U.S. Attorney Leary. “The work of DEA, Bibb County Sheriff’s Office, Peach County Sheriff’s Office and Marietta Police Department to shut down this drug trafficking operation has undoubtably saved lives.”
“Strong law enforcement partnerships which led to the dismantlement of this once-thriving ‘meth’ ring underscores the power of combined forces and strategic partnerships. These partnerships are vital in the war against ‘meth’ and other dangerous drugs,” said Robert J. Murphy, the Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division. “This defendant once profited by spreading this insidious poison throughout Middle Georgia and elsewhere, but DEA and its law enforcement partners are committed to removing such criminals in order to protect our communities.”
DEA agents began investigating the illegal narcotics distribution activities of co-defendant Richard Charles Allen, 44, of Macon, in the Middle Georgia region in April 2019. DEA conducted a series of controlled purchases from Allen using a confidential informant (CI) but were unable to identify Allen’s source of methamphetamine supply. As a result, agents sought and obtained a wiretap order on Allen’s phone number from a federal judge. Allen negotiated the purchase of large quantities of methamphetamine from sources in the Atlanta area on August 21, 2019, September 1, 2019 and September 7, 2019. On each occasion, Allen sent Noojin to purchase methamphetamine on his behalf and agents observed Noojin’s movements. Noojin was taken into custody on September 7, 2019, after obtaining 990 grams of methamphetamine.
Allen was indicted by a federal grand jury on June 16, 2020, and is charged with the following: one count of conspiracy to possess with intent to distribute methamphetamine, two counts of possession with intent to distribute methamphetamine, three counts of distribution of methamphetamine, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of possession of a firearm by a convicted felon.
The case was investigated by the Drug Enforcement Administration, the Bibb County Sheriff’s Office, the Peach County Sheriff’s Office and the Marietta Police Department. Assistant U.S. Attorney Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Mercer County Roofing and Siding Business Owner Pleads Guilty to Tax EvasionRead the Press Release
PITTSBURGH, PA - A resident of Mercer County pleaded guilty in federal court to a charge of tax evasion, Acting United States Attorney Stephen R. Kaufman announced today.
Dustin R. Golub, 35, of Hermitage, PA 16148 pleaded guilty to one count before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Court was advised that for the calendar years 2016, 2017 and 2018, Golub intentionally failed to report a total of approximately $3,791,891.00 in gross receipts from his business, Penn Ohio Roofing and Siding. Instead of depositing all of his business receipts into his business operating accounts, he attempted to conceal business receipts by spreading them among nine different personal bank accounts, including four personal accounts in the names of his children. Additionally, the Court was advised that, despite multiple warnings, Golub intentionally kept his bank transactions under $10,000 to avoid the bank’s currency transaction reports. The total tax loss to the United States is $438,134.00.
Judge Hardy scheduled sentencing for July 29, 2021. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Golub on a $25,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Golub.
Menifee Resident Sentenced to 70 days Custody and Ordered to pay $20,000 for Smuggling PesticidesRead the Press Release
NEWS RELEASE SUMMARY – March 26, 2021
SAN DIEGO – Beatriz Santillan of Menifee, California, was sentenced to 70 days in prison today and ordered to pay $20,079 restitution, following her plea of guilty to the charge of smuggling involving illegal pesticides on March 26, 2020. The restitution order is to cover the cost of disposal of the pesticides.
In pleading guilty in July of 2020, Santillan admitted that she entered the United States at the Otay Mesa Port of Entry driving a Toyota Camry. Santillan twice advised the primary inspector she was not bringing anything from Mexico. The inspector, however, found 56 containers of illegal Mexican pesticides in the vehicle, including three liters of Qufuran, five liters of Bayfolan, two liters of Metaldane, two liters of Biomec, one container of Ridomil Gold, 16 containers of Fosfuro de Zinc and 27 containers of Rodentox.
According to sentencing documents, a subsequent search of Santillan’s phone revealed photographs and videos of marijuana plants, both outside and in greenhouses, beginning August 10, 2019, and ending two days before her stop at the border. Phone chats between Santillan and an associate disclosed discussions about caring for marijuana plants and the use of the pesticides for growing marijuana, and included photos of pesticides and marijuana plants. The sentencing documents also noted that receipts for the purchase of pesticides in Mexico on three separate occasions, a medical marijuana prescription for an associate, and records of the purchase of items used for growing plants were found in Santillan’s car, along with records of the transfer of over $4,000 in the three months before her stop at the border.
The pesticides imported by Santillan were labeled in Spanish and did not bear any EPA registration number, as required by law for pesticides intended for use in the United States. Pesticides with the active ingredients found in the Qufuran and Metaldane imported by Santillan are cancelled pesticides in the United States, and may not be legally imported, sold, or distributed in the United States. Pesticides with the active ingredients found in Biomec, Fosfuro de Zinc and Rodentox are restricted use pesticides and may be purchased and applied only by certified pesticide applicators. Santillan holds no such certificate. Moreover, the lawful importation of pesticides requires a Notice of Arrival to be provided to U.S. Customs, and Santillan provided no such Notice of Arrival for the pesticides in question.
According to the Environmental Protection Agency, the pesticides involved are acutely toxic. The active ingredient in Metaldane is methamidophos, which has been cancelled in the United States since 2009. Methamidophos is one of the most acutely toxic organophosphate pesticides, and is similar to a class of chemicals that were originally manufactured as chemical warfare nerve agents. Carbofuran, the active ingredient in Qufuran, is classified by the EPA as Toxicity Category I, the highest toxicity category, based upon its lethal potency from absorption by ingestion, contact with skin, and inhalation. Zinc phosphide, the active ingredient in Fosfuro de Zinc and Rodentox, is extremely toxic, and the ingestion of small amounts can cause death in animals and humans. Ingestion of 7 drops to 1 teaspoon of zinc phosphide would likely kill a 150-pound person. After it is ingested, the zinc phosphide reacts with acid in the stomach, producing phosphine gas, which blocks cells from making energy, killing the cells. Phosphine gas can also be produced in the stomach if zinc phosphide dust is inhaled and swallowed after clearing from the lungs. The use of these chemicals poses a danger to humans and wildlife that might come in contact with them, as well as cannabis users who ingest products treated with them. Moreover, these chemicals are known to have injured law enforcement officers engaged in the eradication of illegal marijuana cultivation sites in California.
"The illegal importation and use of cancelled and restricted pesticides, like the ones this defendant was smuggling into the United States, pose a serious health threat to anyone that comes into contact with them. They also threaten wildlife in the areas where they are being illegally used. The Department of Justice remains committed to working with Homeland Security Investigations and the Environmental Protection Agency to ensure that those who smuggle these dangerous chemicals into the United States are held accountable under the law for their crimes," said Jean E. Williams, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice.
"The highly toxic chemicals that the defendant smuggled across the border pose a significant danger to unknowing consumers, law enforcement, wildlife and the environment in California," said Acting United States Attorney Randy S. Grossman. "The illegal importation, distribution, and application of such dangerous chemicals will not be tolerated."
"Illegal pesticides contain very dangerous and toxic chemicals, and their use jeopardizes public safety, pollutes the environment, and puts people’s health at risk," said Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI). "These unregistered substances can be very harmful, and HSI and our partners at the Environmental Protection Agency, California Department of Toxic Substances Control, Customs and Border Protection, and the U.S. Attorney’s Office are committed to working together to stop these deadly pesticides from entering the United States."
"The pesticides involved in this case pose serious public health and environmental dangers," said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in California. "The sentence in this case demonstrates that individuals who intentionally violate smuggling and environmental protection laws will be held responsible for their crimes."
Santillan was ordered to surrender to begin serving her sentence on June 16, 2021.
DEFENDANT Case Number 20cr2178-GPC
Beatriz Santillan Age: 29 Menifee, CA
SUMMARY OF CHARGES
Smuggling – Title 18, U.S.C., Section 545
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations; U.S. Environmental Protection Agency, Criminal Investigation Division