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24 March 2021
Coppell Man Pleads Guilty to $24 Million COVID-Relief Fraud SchemeRead the Press Release
A Coppell businessman pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.
According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans.
Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications.
Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”
“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law-enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”
Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah will forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government seized to date.
Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in federal prison.
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.
Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case.
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. 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 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
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 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 general 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.
Clarksville Man Facing Child Pornography ChargesRead the Press Release
NASHVILLE, Tenn. – March 24, 2021 – A Clarksville, Tennessee man was arrested last week and charged with possession of child pornography, announced Acting U.S. Attorney Mary Jane Stewart. Austin Kidd, 27, was arrested on March 17th at his home by agents of Homeland Security Investigations (HSI). Kidd appeared before U.S. Magistrate Judge Barbara D. Holmes this morning for a detention hearing and was ordered held in custody pending trial.
According to the criminal complaint, in March 2020, HSI Nashville received an investigative referral pertaining to Kidd and his internet activity in April 2019. Agents were able to identify a Facebook account, “ShadowPhoenix24,” as belonging to Kidd and through further investigation, agents identified Internet Protocol (IP) addresses associated with Kidd’s home address in Clarksville. Agents were also aware that in August 2019, a foreign law enforcement agency notified the FBI of an IP address in San Antonio, Texas that was used to access online child sexual abuse and exploitation material. This address was found to have been occupied by Kidd during the time the access occurred and before he relocated to Clarksville.
Through further investigation, HSI agents determined that the IP address associated with Kidd’s Clarksville residence had accessed The Onion Router (TOR) network, which is an anonymizing network that masks the IP address of users and is commonly used by persons when accessing child pornography. Based on the information obtained through the investigation, agents obtained a federal search warrant for Kidd’s residence and subsequently seized his cell phone and other media storage devices. To date, approximately 260 suspected images and videos depicting child sexual abuse have been identified on the devices.
The complaint further alleges that Kidd is in the final hiring process to become a substitute teacher for middle school children.
If convicted, Kidd faces up to 20 years in prison.
This case is being prosecuted by Assistant U.S. Attorney Monica Morrison.
A criminal complaint is merely an accusation. Kidd is presumed innocent until proven guilty in a court of law.
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Clarksburg man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jo-El Rene Torres, of Clarksburg, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Torres, 36, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Torres admitted to having heroin and fentanyl in May 2020 in Upshur County.
Torres faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force, the West Virginia State Police, the Upshur County Sheriff’s Office, and the Buckhannon Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Chino Woman Arrested on Indictment Alleging Fentanyl and Heroin Trafficking Operation through Southern California AirportsRead the Press Release
LOS ANGELES – Federal authorities today arrested a San Bernardino County woman on an indictment charging her with recruiting drug couriers to smuggle pound quantities of fentanyl and heroin through Southern California airports for transport to other parts of the United States.
Chavon Sayles, a.k.a. “Amber,” 28, of Chino, was arrested this morning at her residence. She is expected to be arraigned this afternoon in United States District Court in Los Angeles.
A federal grand jury indictment returned on March 16 charges her with one count of conspiracy to distribute heroin and fentanyl, and one count of possession with intent to distribute fentanyl.
According to the indictment, from June 2018 to March 2019, Sayles and other co-conspirators recruited drug couriers to transport heroin and fentanyl through Hollywood Burbank Airport, Long Beach Airport, and Ontario International Airport to Ohio, Oregon, and elsewhere in the nation. Sayles allegedly contacted the couriers the night before the flight, and then booked their flight.
The couriers would then receive a bag containing concealed pound quantities of drugs, and they would be responsible for checking it in at the airport, the indictment alleges. In June 2018, a co-conspirator, for whom Sayles allegedly purchased a plane ticket the night before, checked a bag intended for delivery to other co-conspirators in Ohio containing 6.5 pounds of heroin at Hollywood Burbank Airport. In July 2018, Sayles allegedly picked up another co-conspirator and dropped her off at Long Beach Airport with 6.6 pounds of fentanyl in her luggage for a flight to Dayton, Ohio.
In January 2019, Sayles allegedly told one co-conspirator via text to get ready for a short trip from Ontario International Airport to Portland, Oregon the next day, and to “make sure you bring a lot of stuff your bag has to look so full it’s going to bust.” The co-conspirator later checked into the airport with a bag containing 3.2 pounds of heroin, the indictment alleges.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Sayles would face a statutory maximum sentence of life imprisonment and a mandatory minimum sentence of 10 years in federal prison.
Other co-conspirators, including Tatijana Bell, 27, of San Bernardino, and Keeshanai Monique Wilcher, 27, of San Bernardino, have pleaded guilty to federal narcotics charges in connection with this case. Wilcher is serving a 31-month prison sentence for her role in this drug trafficking operation.
Homeland Security Investigations investigated this matter.
Assistant United States Attorneys Jehan M. Pernas of the International Narcotics, Money Laundering, and Racketeering Section, and Morgan J. Cohen of the General Crimes Section are prosecuting this case.
California Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Jackson, Miss. – Donte Ramon Nelson, 41, of Compton, California, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 120 months in federal prison, followed by three years of supervised release, for conspiracy to possess with intent to distribute 100 grams or more of heroin and 400 grams or more of a substance containing fentanyl, announced Acting U.S. Attorney Darren LaMarca, Special Agent in Charge Brad Byerley of the Drug Enforcement Administration (DEA) and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation (FBI) in Mississippi.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
This OCDETF case is the result of an extensive investigation targeting illegal narcotics distribution in central Mississippi that involved the distribution of methamphetamine, heroin, marijuana and cocaine from California using the United States Postal Service. It was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Mississippi Bureau of Narcotics and the Madison County Police Department. It was prosecuted by Assistant United States Attorneys Chris Wansley and Keesha Middleton.
CEO of NYC Non-Profit Charged in Bribery and Kickbacks Scheme Involving Publicly Funded Housing and Social ServicesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of VICTOR RIVERA on charges of honest services fraud and money laundering. As alleged in an Information filed today in Manhattan federal court, RIVERA, while leading a non-profit organization (“Organization-1”) that operated soup kitchens, homeless shelters, and affordable-housing facilities in New York City, schemed to enrich himself through bribes and kickbacks from Organization-1’s contractors. RIVERA will be presented and arraigned later today before United States District Judge Sidney H. Stein.
Manhattan U.S. Attorney Audrey Strauss said: “Many of the over 8.4 million residents of New York City rely on government-assisted non-profits to provide food, affordable housing, and other essential services for their well-being. As alleged in today’s charges, by accepting bribes and kickbacks, Victor Rivera sought to leverage his position as the CEO of a non-profit into a very much for-profit situation for himself. The vast majority of organizations in New York City’s non-profit networks honorably provide assistance to those in need, but when any individual selfishly exploits one of those organizations for their own personal gain, they will find themselves facing criminal charges for corruption.”
DOI Commissioner Margaret Garnett said: “As CEO of a City-funded nonprofit, this defendant should have been serving the underprivileged, including the homeless; instead, according to the criminal information, he schemed to enrich himself and his relatives, taking bribes and kickbacks from those doing business with his organization. New York City provides billions of dollars to support nonprofits, many of which run organizations with integrity and provide valuable, essential services. But corruption at nonprofit social services contractors remains an investigative priority for DOI, and today's arrest should serve as notice to any individual who sees the City's coffers as a path to personal profit. DOI thanks the U.S. Attorney's Office for the Southern District of New York for its partnership and commitment to this important corruption investigation.”
As alleged in the Information:[1]
RIVERA was the President and Chief Executive Officer of Organization-1, which annually spent millions of dollars in public funds on real estate, security, cleaning, construction, and food expenses, among other costs related to the housing and social services Organization-1 provided. From at least in or about 2013 until in or about 2020, RIVERA engaged in a scheme to enrich himself and his relatives by soliciting and accepting bribes and kickbacks from contractors doing work related to or for Organization-1. The scheme yielded RIVERA at least hundreds of thousands of dollars in illicit gains. RIVERA laundered some of the corrupt payments through intermediary entities he controlled, including through a purported consulting company nominally owned by one of RIVERA’s relatives.
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RIVERA, 61, of Stony Point, New York, is charged with one count of honest services wire fraud conspiracy, one count of honest services wire fraud, and one count of money laundering. Each count carries a maximum potential prison sentence of 20 years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only; any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Special Agents of the United States Attorney’s Office for the Southern District of New York and of DOI, and thanked the Internal Revenue Service for its participation in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys David Abramowicz and Tara La Morte are in charge of the prosecution.
The allegations contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Information and the description of the Information set forth below constitute only allegations, and every fact described should be treated as an allegation.
Brevard County Man Sentenced to 19 Years for Armed Drug Trafficking, FentanylRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Thomas Michael Ibarra (30, Brevard County) to 19 years in federal prison for conspiracy to possess with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense. Ibarra had pleaded guilty on October 27, 2020.
According to court documents, Ibarra was responsible for distributing more than 9 kilograms of fentanyl in the Brevard County area during the approximately one-year period leading up to his arrest. Further, when arrested, Ibarra was in possession of nearly a quarter of a kilogram of fentanyl, and during the execution of a search warrant at his residence, law enforcement recovered two firearms, over three-quarters of a kilogram of fentanyl, scales, and other drug paraphernalia.
This case was investigated by the Drug Enforcement Administration and the Palm Bay Police Department, with assistance from the Federal Bureau of Investigation, the Melbourne Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Berryville Man Sentenced to 90 Months, Required to Forfeit Firearms for Illegal Possession of Guns, Distribution of CocaineRead the Press Release
HARRISONBURG, Va. – Cironta Commander, who pleaded guilty to possession of a firearm by a convicted felon and possession with the intent to distribute cocaine, was sentenced this week in U.S. District Court in Harrisonburg to 90 months in federal prison and ordered to forfeit his firearms, Acting United States Attorney Daniel P. Bubar, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division announced today.
Commander, 22, of Berryville, Virginia, pleaded guilty in December 2020 to one count of possession of a firearm by a convicted felon and one count of possession with the intent to distribute and distributing 28 grams or more of cocaine base.
According to court documents, on January 27, 2020 an officer with the Berryville Police Department initiated a traffic stop of Commander. As the officer returned to his cruiser to investigate a potential discrepancy in Commander’s paperwork, Commander sped from the scene at a high rate of speed. When the defendant approached an intersection, he failed to stop at a stop sign and drove into a grassy area between an apartment building and a tree, where there were people present in the common area. As the defendant reentered the roadway, he drove toward a dead end and crashed into a tree.
Commander attempted to flee the scene on foot while carrying a backpack but was detained. In a search of the backpack, officers found a loaded Smith & Wesson, 9mm, semi-automatic pistol containing five rounds of ammunition. In addition, officers found approximately 3.66 oz. of marijuana, $4,738 in cash, a bundle of clear plastic bags commonly used for narcotics distribution, and a small plastic bag of white powder with 2.19 grams of powder cocaine. At the time of his possession of the firearm, Commander was a previously convicted felon prohibited from legally possessing a firearm.
Local police executed a search warrant at the defendant’s residence in Berryville, Va., on February 3, 2020. In the basement of the residence, officers found three rifles and $4,392. In the closet in the master bedroom, agents located a shoebox with an additional $11,000 in cash.
Additionally, during the search of a Cadillac Escalade parked in the driveway, agents recovered an access card for a storage unit in Stephens City, Virginia. Agents went to that location and learned the unit had only been leased following Commander’s arrest. After obtaining a search warrant of the location, agents recovered a variety of narcotics, including 191.64 grams of fentanyl, 32.96 grams of heroin, 349.47 grams of powder cocaine and 181.83 grams of cocaine base.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Berryville Police Department, the Virginia State Police’s Northwest Virginia Regional Drug Task Force, the Clarke County Sheriff’s Office, and the Office of the Clarke County Commonwealth’s Attorney. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Antitrust Division Issues 2021 Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2021 edition of its annual Spring Newsletter. The newsletter highlights the division’s recent activities and successes on civil and criminal enforcement, diversity initiatives, international cooperation, and competition advocacy. The newsletter also includes a message from Acting Assistant Attorney General Richard Powers.
“Thanks to the dedication of the division’s employees, we’ve continued our efforts on behalf of American consumers, workers, and taxpayers despite the crisis posed by COVID-19,” said Acting Assistant Attorney General Richard A. Powers. “As the Acting Assistant Attorney General, it is my privilege to work with the division’s phenomenal staff as we continue our critical work through this transition period. The civil servants who work for the division are deeply invested in promoting competition and making the economy fairer for all Americans. I am grateful to them and intend to make sure that all employees are fully supported and empowered to do their important work and that we remain a process driven organization.”
The newsletter highlights the division’s accomplishments and features profiles of division staff. It can be found at https://www.justice.gov/atr/division-operations/division-update-spring-2021.
Acting U.S. Attorney, IRS address COVID fraud through investigation, awarenessRead the Press Release
DAYTON — The U.S. Attorney’s Office for the Southern District of Ohio and Internal Revenue Service’s Criminal Investigation Division (IRS-CI) Cincinnati Field Office mark the one-year anniversary of the Coronavirus Aid, Relief and Economic Security (CARES) Act by urging taxpayers to continue reporting instances of suspected fraud and by pledging their continued commitment to investigating COVID-19 financial crimes.
Over the last year, U.S. Attorney’s Office and IRS-CI has been combatting COVID-19 fraud related to the Economic Impact Payments, Paycheck Protection Program (PPP) and Employee Retention Credit. IRS CI has investigated more than 350 tax and money laundering cases nationwide totaling $440 million. These investigations covered a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.
On March 16, 2021, Nadine Consuelo Jackson, 32 of Dayton, Ohio, was sentenced to 24 months in prison for committing wire fraud and making a false statement to a bank related to two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). Jackson fraudulently sought forgivable PPP loans in the amount of $1.3 million and $1.2 million from financial institutions by claiming to have more than 70 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, there were few or no other employees working at Extract LLC.
Other fraud charges are pending in Columbus and in Cincinnati.
“At the same time we’re all fighting the spread of the virus, we unfortunately also have to fight the spread of fraudsters who hinder our economic recovery,” Acting U.S. Attorney Vipal J. Patel said, noting that other potential crimes are under investigation in the 48-county Southern District of Ohio. “The CARES Act is supposed to help small businesses keep afloat, but some will try to scam the system. Anyone who suspects that fraud may be going on should report it, either through the IRS website, another appropriate law enforcement agency, or even to your local police. The key is to report it.”
“The CARES Act was designed to provide financial assistance to Americans struggling as a result of the pandemic,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Unfortunately, some individuals saw several of the programs enacted as an opportunity to steal and commit fraud. IRS CI will continue to partner with the United States Attorney’s Office and our law enforcement partners to investigate CARES Act fraud and bring those committing the fraud to justice.”
While abuses of the various CARES Act assistance programs have been limited in the overall administration of the law, some unscrupulous businesses and individuals have sought to enrich themselves through fraudulent activity. IRS-CI encourages the public to share information regarding known or suspected fraud attempts against any of the programs offered through the Cares Act.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 29, 2020, to provide emergency financial assistance to millions of Americans suffering the economic effects of 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 Paycheck Protection Program. In April 2020, Congress authorized over $300 billion in additional funding, and in December 2020, another $284 billion.
The Paycheck Protection Program allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. 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.
To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
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30 Members of A Violent Gang Charged for Drug Trafficking in Mayagüez, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 10, 2021, a federal grand jury in the District of Puerto Rico returned an indictment charging 30 violent gang members with conspiracy to possess with intent to distribute controlled substances, and aiding and abetting in the possession/distribution of controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) and the Puerto Rico Police Bureau (PRPB) Mayagüez Strike Force investigated the case.
“This arrest operation spotlights the hard work and dedicated partnership between federal and state law enforcement agencies,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We share the mission of taking violent criminals off the streets and enhancing community-wide efforts to make Puerto Rico a safer place.”
“DEA and our federal, state and local partners have not let our guard down. We remain committed to protecting our families and communities. Today’s arrests serve as an example of law enforcement’s dedication to disrupting and dismantling violent drug organizations that affect not only the citizens of Mayagüez but all of Puerto Rico,” said DEA Caribbean Division Special Agent in Charge A.J. Collazo.
The indictment alleges that from in or about the year 2017, to the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, and marihuana, within 1,000 feet of the Manuel Hernández Rosa, commonly known as “Candelaria”, Rafael Hernández, also known as “Kennedy”, and El Carmen Public Housing Projects, and other areas in the municipality of Mayagüez, all for financial gain and profit.
As part of the conspiracy, the members of the drug trafficking gang established drug points that would move within different areas inside the public housing projects in order to avoid police detection; and operated during the day and night, at times operated 24 hours a day. Some co-conspirators would routinely possess, carry, brandish, and use firearms to protect themselves and their drug trafficking organization. Some of the sellers within the organization had access to different vehicles and would stash the narcotics in order to retrieve them when they sold the drugs. The 30 co-conspirators acted in different roles in order to further the goals of their organization, to wit: four suppliers and 26 sellers. The defendants indicted are:
Carmelo Ramírez-Polidura
Benigno Torres-Benítez, a/k/a “Porki”
Norbert A. Molina-Avilés, a/k/a “Alex Fogón”
Christian Anjul Martínez-Valentín
Emilio Rivera-Rodríguez, a/k/a “Gafas/Chino”
Abel Francisco Lozada-Colón
Rogelio A. Rivera-Acosta
Josué M. Justiniano-Méndez, a/k/a “Molle”
Gilbert Vargas-Deriux, a/k/a “Gemelo”
Alexander Justiniano-Pagán, a/k/a “Alex Tota”
Jason Nieto-Martínez, a/k/a “Milta”
José A. Velázquez-Pérez, a/k/a “Tato”
Carlos A. Rivera-Gómez, a/k/a/ “Buggie”
Joseph Toro-Pérez, a/k/a “Viejo”
Gerardo Méndez-Nazario, a/k/a “Chupi”
Gilfredo Luciano-Merle, a/k/a/ “Crayola”
Sonny B. Cardona-Zapata
Christopher Malavé-Bracero
Luis J. Borrero-Mejías, a/k/a “Chelo”
José L. Malavé-Cintrón, a/k/a “Pito”
José L. Rivera-Colón, a/k/a “Baby Rasta”
David Cruz-Ibarrondo, a/k/a “Davo”
Israel Rivera-Acosta, a/k/a “Yiyo/Guillo”
Ángel L. Soler-Muñiz
Erichell Ramírez-González
Christian Joel Soto-Calderón, a/k/a “Salsilla”
Walberto Rivera-Vigo, a/k/a “Wally El Pelotero”
Jhomar Echevarría-Luciano
Eileen Echevarría-Luciano
José L. Malavé-González, a/k/a “Lichi Motora”
Assistant U.S. Attorney Myriam Fernández, Chief of the Asset Recovery and Money Laundering Unit and Assistant U.S. Attorney Linet Suárez are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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10 defendants indicted in multi-state, fraudulent COVID-19 related business loan schemeRead the Press Release
NEWNAN, Ga. - Ten defendants, who operated as part of a larger group, have been indicted for participating in a wide ranging, multi-state scheme to submit fraudulent loan applications on behalf of non-existent businesses as part of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
“The impact of COVID-19 on small businesses around the country has been devastating,” said Acting U.S. Attorney Kurt R. Erskine. “The defendants allegedly abused both programs by submitting fraudulent applications and obtaining thousands of dollars that should have gone to support struggling businesses. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat.”
“The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. The CARES Act was signed to provide economic assistance to keep companies afloat while navigating through these uncertain times,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: On August 11, 2020, agents with the U.S. Postal Inspection Service (USPIS) and the Drug Enforcement Administration executed a search warrant at the home of Alicia Quarterman in connection with an ongoing narcotics trafficking investigation. A package containing methamphetamine hidden in dog food containers had been mailed to Quarterman’s home. As part of the court-authorized search, law enforcement seized Quarterman’s cell phones and discovered a handwritten ledger with the personal and banking information of several individuals.
After obtaining a second search warrant for the cell phones, USPIS inspectors uncovered hundreds of text messages and photos related to an additional crime, fraudulent EIDL and PPP business loans.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law passed in March 2020 that provided $2.2 trillion dollars in emergency financial assistance to the millions of Americans who are suffering the economic effects caused by COVID-19. The provisions of the CARES Act, in conjunction with an officially declared disaster by the United States Government, allowed the Small Business Administration (“SBA”) to offer EIDL funding to business owners negatively affected by COVID-19. The EIDL application information, submitted by the applicant, was used by SBA systems to calculate the amount of money the business was eligible to receive in the form of a loan. However, in conjunction with the submission of an EIDL application, by having clicked on and checked a box within the on-line application, an applicant could request and then receive up to $10,000.00, an EIDL Advance which did not have to be repaid.
Another source of relief from the March 2020 CARES Act is the PPP which allows qualifying small businesses and other organizations to receive PPP loans to pay payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds for payroll expenses.
Once Quarterman and her co-conspirator, Katrina Lawson, who is a former deputy sheriff for Fulton County, Georgia and is still a certified peace officer, became familiar with the requirements and applications for the EIDL program and the PPP, they allegedly devised a scheme to submit fraudulent business loan applications on behalf of their friends and family who did not actually own businesses. Quarterman would recruit co-conspirators who would send her their personal and banking information mostly via text message, and then Quarterman would send that information to Lawson who would submit the applications to the SBA. After the fraudulent loans were paid out by the SBA or partner banks, the co-conspirators completed their scheme by allegedly paying Quarterman a “fee” from the proceeds of the fraudulent loans which she would split with Lawson.
Some of Quarterman and Lawson’s co-conspirators also allegedly recruited additional participants to the scheme and then sent their information to Quarterman for fraudulent loan applications. As part of their crimes, the defendants not only submitted false information for the business loans, but for the PPP, they also allegedly created fake Internal Revenue Service documentation to support the applications.
Besides Alicia Quarterman, 38, of Fayetteville, Georgia, and Katrina Lawson, 41, of Houston, Texas, the following individuals also participated in the scheme and are charged in the indictment:
- India Middleton, 34, of Accokeek, Maryland,
- James McFarland, 56, of Atlanta, Georgia,
- Tranesha Quarterman, 33, of Atlanta, Georgia,
- Darryl Washington, 66, of Atlanta, Georgia,
- Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia,
- Katie Quarterman, 28, of Atlanta, Georgia,
- Nikia Wakefield, 42, of Rockville, Maryland, and
- Victor Montgomery, 43, of Washington, D.C.,
Overall, between July 1, 2020 and August 11, 2020, Quarterman sent Lawson the information for about 48 different individuals, and she allegedly completed approximately 58 fraudulent EIDL applications, seeking $490,000. In that same time frame, Lawson allegedly submitted 11 fraudulent PPP loan applications on behalf of many of the same individuals in an attempt to obtain at least $224,000. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Miguel R. Acosta is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
23 March 2021
Yuba City Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Scott Stephen Howard, 36, of Yuba City, pleaded guilty today to possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 11, 2016, Howard knowingly possessed visual depictions of minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Howard is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 29. Howard faces a maximum penalty of 10 years in prison as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Woman Indicted on Federal Firearm Charge for Allegedly Providing Handgun to Convicted FelonRead the Press Release
CHICAGO — A woman has been indicted on a federal firearm charge for allegedly providing a semi-automatic handgun to a convicted felon whom she knew was not lawfully allowed to possess it. The convicted felon was also charged.
BENITTA GROSS knowingly disposed of the gun in Chicago on June 20, 2020, to TERRANCE ELKINS, knowing that Elkins was previously convicted of a felony and not lawfully allowed to possess a firearm, according to an indictment returned in U.S. District Court in Chicago.
Gross, 32, of Springfield, Ill., is charged with one count of disposal of a firearm to a prohibited person. Elkins, 32, of Springfield, Ill., is charged with one count of illegal possession of a firearm by a convicted felon. Gross and Elkins made initial court appearances Friday before U.S. Magistrate Judge Young B. Kim in Chicago. Elkins was ordered detained in federal custody, while Gross was ordered released on bond. A status hearing was scheduled for April 6, 2021, at 10:00 a.m., before U.S. District Judge John J. Tharp, Jr.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Cook County State’s Attorney’s Office, Sangamon County State’s Attorney’s Office, Sangamon County Sheriff's Office, U.S. Marshals Service, and Springfield, Ill., Police Department. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each charge in the indictment is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
West Virginia Man Sentenced to 15 Years in Prison for Traveling to Alabama with the Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a West Virginia man for child exploitation, announced U.S. Attorney Prim F. Escalona, and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Liles C. Burke sentenced Andrew Scott Davis, 37, to 180 months in prison followed by a lifetime of supervised release. Davis pleaded guilty in December 2020 to one count of traveling with the intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Davis travelled from Circleville, West Virginia to Madison County, Alabama between November 2019 and January 2020, and met with the minor five times. Davis began an online relationship with the minor through Snapchat. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“Protecting our children will always be a top priority of my office,” USA Escalona said. “In today’s world of technology, it is important that parents educate their children about safe and appropriate online behavior and immediately report inappropriate contact between an adult and their child to law enforcement.”
“Social media and the internet are great tools for entertainment, education and collaboration, but they can also be great tools for predators looking to victimize our children,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are dedicated to finding, arresting, and prosecuting those involved in this heinous crime.”
U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Huntsville Police Department, and the Madison County Sheriff’s Office. Assistant U.S. Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Upshur County Individuals Guilty of Conspiring to Commit ID Theft for COVID Economic Impact PaymentsRead the Press Release
TYLER, Texas – Two individuals from Gilmer, Texas have pleaded guilty to conspiring to commit identity theft in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Emilee Fenton, 24, pleaded guilty to conspiracy to unlawfully transfer, possess, and use a means of identification today before U.S. Magistrate Judge K. Nicole Mitchell. Dalton Brewer, also 24, pleaded guilty to the same charge on March 4, 2021.
“Economic Impact Payments were designed to reach the most needy, not to line the pockets of criminals. The Eastern District of Texas is committed to fighting fraud and criminal activity related to the COVID-19 pandemic,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s plea is just another example of how our office and our law enforcement partners are holding accountable the wrongdoers who exploit this crisis.”
Fenton and Brewer were indicted by a federal grand jury on August 19, 2020 and charged with conspiracy to unlawfully transfer, possess, and use a means of identification. Fenton was also charged with theft of government money and aggravated identity theft.
According to the indictment, from at least November 2019 through June 2020, Brewer and Fenton conspired to possess and use the means of identification of other persons, including names, Social Security numbers, and dates of birth, in connection with the theft of government money, aggravated identity theft, wire fraud, theft of mail, and fraudulent use or possession of identifying information. Fenton was also charged with theft of government money and aggravated identity theft for her role in obtaining two Economic Impact Payments (EIPs) using the means of identification of other persons.
The 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. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
At sentencing, Brewer and Fenton each face up to 15 years in federal prison.
This case is being investigated by the U.S. Postal Inspection Service (USPIS), Treasury Inspector General for Tax Administration (TIGTA), and the Internal Revenue Service-Criminal Investigations (IRS-CI) and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Two Newark Men Sentenced to Prison for Trafficking Crack Cocaine and Heroin with Newark’s ‘Famous Boyz’ Street GangRead the Press Release
NEWARK, N.J. – Two members of the Newark street gang known as the “Famous Boyz” were sentenced to prison for conspiring to distribute crack cocaine and heroin, Acting U.S. Attorney Rachael A. Honig announced today.
Malik Minor, aka “YK,” 23, of Newark, was sentenced today to 63 months in prison and five years of supervised release; Javon Holmes, aka “J-Dot,” 21, of Newark, was sentenced March 22, 2021, to 108 months in prison and four years of supervised release. Minor previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to distribute 28 grams or more of crack cocaine, and 100 grams or more of heroin. Holmes previously pleaded guilty to a superseding information charging him with one count of conspiring to distribute 28 grams or more of crack cocaine, and 100 grams or more of heroin, and possessing with the intent to distribute 28 grams or more of crack cocaine. Judge Arleo imposed both sentences by videoconference.
According to the documents filed in this case and statements made in court:
The Famous Boyz are a subset of the Brick City Brim set of the Bloods street gang, which dealt significant quantities of heroin and crack cocaine, primarily in and around the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.”
In October 2018, Minor, Holmes, and 15 other members of a violent drug trafficking conspiracy operating in Newark were charged by complaint with conspiracy to distribute crack cocaine and/or heroin following a lengthy wiretap investigation. Shaka McKinney and Jahid Vauters, aka “K,” aka “KO,” also were charged with firearms possession offenses. To date, 15 of the defendants have pleaded guilty to drug and firearm charges and three await sentencing.
On Feb. 25, 2019, a grand jury returned an indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, aka “Bebo” with one count each of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine. On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against Patricio Hernandez, Jonathan Hernandez, Garcia, Holmes, and John Mosley, aka “Breezy,” aka “Brazy.” The charges in the superseding indictment remain pending against Patricio Hernandez and Mosley.
Acting U.S. Attorney Honig credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to the guilty pleas.
She also thanked the DEA, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and is part of the Violent Crime Initiative (VCI) in Newark. 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. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Top Federal Prosecutor in Los Angeles and Head of FBI Field Office Denounce Hate Crimes and Racism Targeting Asian AmericansRead the Press Release
LOS ANGELES – With a call to the public to report hate crimes to law enforcement authorities, Acting United States Attorney Tracy L. Wilkison and FBI Assistant Director in Charge Kristi K. Johnson today condemned bigotry, racism and hatred against the Asian American and Pacific Islander community.
“Discrimination against Asian Americans is a long-standing and malignant problem that has found new roots in the pandemic,” said Acting U.S. Attorney Wilkison. “Everyone deserves to feel safe in their communities, and attacks based on race, ethnicity or national origin have no place in our society. We urge the public to report potential racial discrimination and hate crimes to law enforcement so we can address these illegal and immoral acts.”
“The FBI is committed to reaching out to the AAPI community, among other groups who have been targeted historically with racial bigotry, so that affected individuals know their rights and know that they have an ally with their law enforcement professionals,” said Assistant Director in Charge Johnson, who runs the FBI’s Los Angeles Field Office. “The FBI and partners with the Los Angeles County Sheriff’s Department and the Los Angeles Police Department operate the L.A. Hate Crimes Task Force to investigate and properly address hate crime allegations. We encourage anyone who believes their civil rights were violated to report it so that we can determine whether a crime occurred. Hate crime threats in the form of racially charged rhetoric or violent assaults are taken extremely seriously as we continue to safeguard the rights of every individual, citizen and non-citizen alike."
In addition to working with colleagues in law enforcement, the United States Attorney’s Office and the FBI review allegations of hate crimes for possible federal prosecution. Members of the public may report a potential hate crime to the Federal Bureau of Investigation. The FBI’s Los Angeles Field Office can be reached 24 hours a day at (310) 477-6565, or reports can be made online at https://tips.fbi.gov/. The Civil Division of the U.S. Attorney’s Office also investigates non-criminal instances of discrimination, and citizens may report potential civil rights violations by submitting this form.
The United States Attorney’s Office is increasing its outreach efforts as more people are becoming aware of anti-Asian bias in our communities. The Office last week participated in a rally on the steps of the Kenneth Hahn Hall of Administration to emphasize that we all stand together as we see an increase in the reporting of hate crime incidents against Asian Americans in our district. The event was presented by the LA vs Hate Campaign and featured representatives from County Supervisors’ offices, the Mayor’s office, the Anti-Defamation League, Asian Americans Advancing Justice, and other civil and human rights leaders in Los Angeles County.
The United States Attorney’s Office and the FBI, along with other federal partners and community stakeholders, are hosting a virtual community event on April 22 to discuss the federal government’s multi-faceted response to hate against the AAPI community and other communities.
President Biden on January 26 issued the “Presidential Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States.” The memorandum mandates that the Attorney General explore opportunities to support, consistent with applicable law, the efforts of State and local agencies, as well as AAPI communities and community-based organizations, to prevent discrimination, bullying, harassment, and hate crimes against AAPI individuals, and expand collection of data and public reporting regarding hate incidents against such individuals.
The Justice Department’s Civil Rights Division enforces federal anti-discrimination laws, and the United States Attorney’s Office has dedicated units that prosecute civil rights violations in its Criminal Division: Public Corruption and Civil Rights Section and enforce civil rights laws in its Civil Division.
Tioga County Man Sentenced to 124 Months for Attempted Online Enticement of a MinorRead the Press Release
SYRACUSE, NEW YORK - Jacob Gorman, age 39, of Waverly, New York, was sentenced today to serve 124 months in federal prison for attempted online enticement of a minor, announced Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previous guilty plea Gorman admitted that between August 11, 2020 and August 27, 2020, he exchanged text messages with an undercover officer he believed was the mother of a 9 year old girl. In those messages, Gorman expressed an interest in meeting the child and engaging in sex acts with her. Gorman negotiated a price he was willing to pay to engage in sex acts with the child and on August 27, 2020, drove to a pre-determined location in Broome County to meet and have sex with the child. Gorman was then encountered by law enforcement and arrested.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Gorman is released from prison, and ordered Gorman to pay a $100 special assessment. As a result of his conviction, Gorman will be required to register as a sex offender upon his release from prison.
Gorman’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Three Indicted in Bribery Scheme Related to U.S. Military Contracts in AlaskaRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Wilson announced that Ryan Dalbec, 42, Raihana Nadem, a/k/a/ Raihana Dalbec, 27, of Virginia, and Brian Lowell Nash II, 30, of Washington, have been charged in a 26 count indictment with conspiracy, bribery, and money laundering involving millions of dollars’ worth of U.S. military contracts in Alaska.
According to the indictment, Ryan and Raihana Dalbec owned and managed Best Choice Construction, LLC (Best Choice), a federal government contractor that provided construction and other services. Through Best Choice, the Dalbecs bid on and were awarded multiple U.S. military construction contracts throughout Alaska.
From March through November 2019, Ryan and Raihana Dalbec allegedly paid and promised Nash, an enlisted Contract Specialist in the U.S. Air Force assigned to Joint Base Elmendorf-Richardson (JBER), over $460,000 in bribes. In exchange, Nash allegedly supplied the Dalbecs with confidential, non-public bidding information that helped Best Choice win numerous Alaska military contracts, including a construction contract related to the F-35 aircraft program at Eielson Air Force Base and contracts to perform construction and related services at JBER. The indictment also alleges the defendants committed multiple overt acts in furtherance of the bribery conspiracy. Additionally, between March and October 2019, the Dalbecs and Nash are alleged to have laundered payments and proceeds from the bribery scheme to conceal their unlawful activities.
If convicted, each defendant faces up to 20 years in prison and a $500,000 fine for the most serious charges in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and the Air Force Office of Special Investigations (AFOSI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Three Defendants Charged in $1.6 Million Covid-19 Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, New York Division, Federal Bureau of Investigation (“FBI”) and Amaleka McCall-Brathwaite, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), announced today the unsealing of a complaint charging ALICIA AYERS, ANDREA AYERS, and TRACI PROCTOR with conspiracy to commit wire fraud, wire fraud, false statements, and aggravated identity theft in connection with a scheme to defraud the U.S. Small Business Administration (“SBA”), resulting in a loss to the SBA of more than $1.6 million. All three defendants were arrested this morning. ALICIA AYERS and ANDREA AYERS will be presented this afternoon before United States Magistrate Judge Judith C. McCarthy. TRACI PROCTOR will be presented in United States District Court for the Northern District of Georgia.
U.S. Attorney Audrey Strauss said: “As alleged, the defendants schemed to defraud the SBA by submitting disaster loan and grant applications for non-existent businesses. In so doing, they stole funds intended for the many small businesses that are struggling as a result of the COVID-19 pandemic. We thank the FBI and SBA-OIG for their partnership in investigating the scheme alleged.”
FBI Assistant Director William F. Sweeney Jr. said: “While small businesses throughout the country were clamoring for the economic support they so desperately needed after the first quarter of the pandemic, those charged today allegedly saw the SBA’s Economic Injury Disaster Loan Program as nothing more than an opportunity to turn a quick profit. As alleged, Ayers, Ayers, and Proctor filed more than 300 online applications on behalf of others that included false information to support their claims. This resulted in nearly $1.7 million worth of payments from the SBA, a portion of which the defendants received in the form of kickbacks. No matter how creative the scheme is, rest assured those who siphon money from taxpayer funded programs will be aggressively pursued. This investigation remains ongoing, and we ask anyone with information to call us at 1-800-CALL-FBI or reach us online at tips.fbi.gov.”
SBA OIG’s Eastern Region Special Agent-in-Charge Amaleka McCall-Brathwaite said: “Law enforcement will aggressively unmask fraudsters who allegedly hid behind stolen identities to gain access to SBA’s EIDL funds. 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.”
As alleged in the Complaint:[1]
The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program. In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.
In June and July 2020, ALICIA AYERS, ANDREA AYERS, and TRACI PROCTOR used the identities of approximately 300 other individuals (the “Applicants”) to submit approximately 315 online applications to the SBA, seeking over $3 million of funds through the SBA’s EIDL Program. (the “EIDL Applications”). In connection with the EIDL Applications, ALICIA AYERS, ANDREA AYERS, and PROCTOR falsely represented to the SBA, among other things, that the Applicants were the owners of businesses with ten or more employees. In fact, however, the applications falsely reported the businesses’ numbers of employees, and the vast majority of the purported businesses appear not to have existed at all. Based on the fraudulent EIDL Applications, the SBA made advance payments of approximately $1,690,000 to the Applicants, who often then kicked back a portion of the advance payments to ALICIA AYERS, ANDREA AYERS, and TRACI PROCTOR.
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ALICIA AYERS, 34, and ANDREA AYERS, 54, of Mount Vernon, New York, and TRACI PROCTOR, 47, of Clarkston, Georgia, are charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) wire fraud, which carries a maximum sentence of 2 years in prison, (3) false statements, which carries a maximum sentence of five years in prison, and (4) aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the outstanding work of the FBI and the SBA-OIG.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman and Courtney Heavey are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Swainsboro, Ga., woman admits defrauding government program designed to provide COVID-19 small business reliefRead the Press Release
STATESBORO, GA: An Emanuel County woman has admitted creating a fake business and using it to receive funding from a federal COVID-19 small business relief program.
Tracy Kirkland, 40, of Swainsboro, pled guilty to an Information charging her with Wire Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charge carries a maximum statutory penalty of 30 years in prison and a $1 million fine. As a result of the plea, Kirkland agrees to repay $66,400 and will forfeit a 2019 Dodge Charger and $16,250. After any prison term, Kirkland could be required to spend up to three years on supervised release.
There is no parole in the federal system.
“Congress provided funding under the Coronavirus Aid, Relief and Security (CARES) Act specifically to help financially struggling businesses during the pandemic,” said Acting U.S. Attorney Estes. “Tracy Kirkland stole from those funds, and she is being held accountable for that theft.”
As described in court documents and testimony, in August 2020 Kirkland received a federally guaranteed loan for $66,400 under the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program comprised of funds appropriated by the CARES Act. In applying for the funding, Kirkland falsely claimed to own a business in Swainsboro with three employees, “Kirklands Hair N Beauty,” that had suffered economic harm because of the COVID-19 pandemic.
Soon after receiving the SBA loan proceeds into her personal account, Kirkland, a previously convicted felon, used the funds to purchase a 2019 Dodge Charger R/T; made large cash withdrawals from her bank account; and made other non-business-related purchases.
SBA’s General Counsel Peggy Delinois Hamilton stated, “We commend the work of the U.S. Attorney in prosecuting this case, involving SBA’s EIDL Program, which is designed to provide much-needed economic relief to small businesses that are greatly affected by the current pandemic. Such fraud hurts legitimate small businesses that need financial assistance. We appreciate the work of our Inspector General and other law enforcement partners to uncover and prosecute individuals who commit fraud in the CARES Act loan programs.”
The U.S. Small Business Administration Office of Inspector General is investigating the case with assistance from the Swainsboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with prosecution for the United States by Assistant U.S. Attorneys Steven H. Lee and Asset Recovery Unit Chief Xavier A. Cunningham.
St. Louis man pleads guilty for his role in trafficking ring involving 45 kilograms of methamphetamineRead the Press Release
ST. LOUIS – Nathaniel Hill, 39, of St. Louis, Missouri, pleaded guilty to conspiracy to distribute methamphetamine. Hill appeared, today, before United States District Court Judge Audrey G. Fleissig.
In November 2017 the Federal Bureau of Investigation (FBI) and the United States Postal Inspectors Service (USPIS) initiated an investigation into methamphetamine trafficking led by Hill and involving nine co-defendants. Beginning in or about May 2017, Hill and a co-defendant purchased kilogram quantities of methamphetamine from a San Diego source of supply. Initially, Hill arranged for packages of methamphetamine to be sent to St. Louis through the mail. Two of those packages were intercepted by law enforcement: one containing 1.336 kilograms on August 7, 2017; and, one containing 4.4 kilograms on April 9, 2018.
Investigators also applied for and received authorization to wiretap Hill’s cellular telephone. On the wiretap, investigators heard Hill talk to co-conspirators regarding methamphetamine shipments, proceeds, and methods of transportation. The conspirators traveled between San Diego and St. Louis and used hotel rooms and rental cars to facilitate and hide their activities from law enforcement.
During the investigation, a confidential source made several controlled purchases of methamphetamine directly from Hill including 450 grams on December 12, 2017, 223 grams on January 18, 2018, and 224 grams on February 28, 2018.
On June 13, 2018, Hill was present at his residence in the 11000 block of Cadigan expecting a large shipment of methamphetamine. Agents executed a search warrant where they seized 25.064 kilograms of methamphetamine. Investigators also seized multiple firearms, $29,850 in cash, multiple items of jewelry and a BMW sedan, all of which were either derived from proceeds of the sale of methamphetamine or possessed in furtherance of the drug activity.
Based on the intercepted packages, the controlled purchases, the seizures on June 13, 2013, the intercepted calls and other evidence gathered by law enforcement, Hill admitted being responsible for at least 45 kilograms of methamphetamine and consented to the forfeiture of various assets seized by agents.
Judge Fleissig has set sentencing for June 29, 2021.
The St. Louis County Police Department, Federal Bureau of Investigation and United States Postal Inspection Service investigated the case.
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Spartanburg Felon Sentenced to 15 Years in Federal Prison for Unlawful Gun PossessionRead the Press Release
Greenville, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Jerrod Dupree Lyman, Jr., 30, of Spartanburg, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented in court established that on August 8, 2019, members of the Spartanburg County Sheriff’s Office were looking for Lyman on outstanding warrants. Deputies observed Lyman come out of a residence in Inman and flee into the woods. During the chase, deputies observed Lyman carrying a backpack and gave him several commands. Lyman dropped the backpack but continued to flee. Lyman was eventually taken into custody. The recovered backpack contained two loaded 9mm pistols. Lyman was also in possession of a quantity of methamphetamine. Due to prior convictions for domestic violence and multiple drug offenses, Lyman is prohibited from possessing firearms and ammunition. Based on his prior record, the Court sentenced Lyman as an Armed Career Criminal.
United States District Court Judge Timothy M. Cain imposed a sentence of 180 months in federal prison to be followed by 60 months of supervised release. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Max Cauthen prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), 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.
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Seven Individuals Indicted and Arrested on Wire Fraud Charges in Relation to A Scheme to Defraud the Municipality of MayagüezRead the Press Release
SAN JUAN, PUERTO RICO – On March 22, 2021, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging seven individuals with thirty-three counts of wire fraud and money laundering. W. Stephen Muldrow, United States Attorney, District of Puerto Rico and Tyler R. Hatcher, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Rafael Riviere-Vázquez, Special Agent in Charge of the FBI, San Juan Field Office, made the announcement.
“The defendants charged in this conspiracy were trusted to invest public money for the benefit of the municipality of Mayagüez and the western area, but instead they used part of it for personal gain and expenses, defrauding the government,” said U.S. Attorney Muldrow. “We will continue to focus on these types of fraud schemes and work with our law enforcement partners to bring the defendants to justice.”
Acting Special Agent in Charge Tyler R. Hatcher, of IRS Criminal Investigation, Miami Field Office, said: “Persons in a position of trust that use public monies to perpetrate fraud for personal enrichment betray the trust of the citizens they are supposed to serve. These funds were designated to improve the quality of life of the citizens for a region of Puerto Rico and this fraud will not go unpunished. We are all responsible for complying with laws, regardless of position of influence. IRS Criminal Investigation along with our law enforcement partners will continue our collective efforts to enforce the law and foster public trust.”
“The FBI is committed to fight fraud at every level. This case is the result of patient, detail-oriented, hard work. I'd like to thank our dedicated team as well as our IRS partners for their continued support to the FBI mission,” said Rafael Riviere-Vázquez, Special Agent in Charge of the FBI, San Juan Field Office.
The indictment alleges that from March 2016 to June 2018, defendants Eugenio García-Jiménez, a.k.a. “Gino”; Stephen Kirkland, a.k.a. “Steve”; Steve Minger; Alejandro Riera-Fernández; Joseph Kirkland; Arnaldo J. Irizarry-Irizarry; and Roberto Mejill Tellado orchestrated a scheme to defraud the municipality of Mayagüez and Mayagüez Economic Development Inc. (hereinafter “MEDI”) of monies belonging to Mayagüez, by falsely representing that the totality of $9,000,000 in principal belonging to Mayagüez and entrusted to MEDI for investment was in fact invested and yielding a significant rate of return. MEDI is a domestic for-profit public corporation created with the purpose of promoting the economic development of Mayagüez and the western region of Puerto Rico, creating jobs, supporting infrastructure projects, and improving the quality of life of citizens. The defendants transferred, distributed, and spent the money in ways inconsistent with the representations made to Mayagüez and MEDI about the investment of the money, to include purchases of: a marine vessel, jewelry, clothing, school tuition, restaurants, utilities, credit card payments, and home décor, as well as real estate improvements (pools, for example) and the payment of home mortgages.
Using multiple shell corporate entities and financial accounts, defendants collectively received hundreds of thousands of dollars belonging to Mayagüez, intended for investment, which defendants then used for personal expenses and purchases of personal and real property. The use of shell corporate entities further served to conceal the scheme to defraud Mayagüez and MEDI and allowed defendants to lull Mayagüez and MEDI into believing that the nine million dollars was invested as falsely represented by defendants. Of the nine million dollars obtained from the municipality through material misrepresentations, the defendants only returned $1,800,000 to Mayagüez and in doing so, falsely represented that the $1,800,000 was a return on investment.
If found guilty, the defendants face a maximum statutory sentence of up to 20 years in prison and a fine up to $250,000 for charges relating to wire fraud, and up to 10 years in prison for the money laundering charges.
U.S. Attorney W. Stephen Muldrow commends the investigative efforts of IRS-CI’s Miami Field Office and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Myriam Fernández, Chief of the Asset Recovery and Money Laundering Unit and Seth A. Erbe, Chief of the Financial Fraud and Public Corruption Unit. An indictment contains only charges and is not evidence of guilt. All defendants are presumed to be innocent unless and until proven guilty.
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Serial Fraudster Sentenced to over Three Years in Prison for Scamming Elderly Victims Out of Hundreds of Thousands of Dollars in Fraudulent Payment SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York announced that MICHAEL PIZARRO, a/k/a “Eric Miller,” was sentenced today to 40 months in prison in connection with PIZARRO’s scheme to defraud individuals (the “Victims” ) by representing to them that they had qualified for a government grant, which could only be accessed upon the payment of an up-front refundable application fee. In actuality, the government grant did not exist and none of the Victims had been approved for such a grant. PIZARRO pled guilty to a one-count information on August 20, 2019, before United States Magistrate Judge Gabriel W. Gorentstein. Today, United States District Judge Paul A. Crotty accepted PIZARRO’s guilty plea and imposed the sentence.
U.S. Attorney Audrey Strauss said: “Michael Pizarro promised government grants to his victims under the condition they pay an up-front application fee. Regretfully, Pizarro’s victims, many of whom were over 70 years old, eventually discovered that they had fallen prey to a serial fraudster – there were no government grants, and they would not be receiving any funds. Michael Pizarro has now been sentenced to time in federal prison for his brazen fraud.”
According to allegations in the criminal complaint, the information, and other documents filed in federal court, as well as statements made in public court proceedings:
Beginning in at least February 2017 through July 25, 2019, PIZARRO called the Victims, many of whom were more than 70 years old, and told them that his name was “Eric Miller” and that he was calling on behalf of a company named “National Grants.” PIZARRO informed the Victims that they had been approved for a government grant, which was being held in escrow at an account with the “World Bank” in Washington, D.C. Before the funds could be released, however, the Victims would have to pay a registration fee. In fact, none of the Victims had been approved for a grant, the grants did not exist, and no Victim ever received any funds.
In April 2018, PIZARRO was charged in New York Supreme Court in connection with his involvement with National Grants from October 2015 through January 2017. PIZARRO pled guilty to those charges in December 2018 and was awaiting sentencing when he was arrested in connection with this scheme on May 2, 2019. After he was released on bail in connection with the federal charges, PIZARRO continued to seek contact information for additional Victims in furtherance of the scheme. In total, not including the conduct charged in New York Supreme Court, PIZARRO defrauded the Victims out of approximately $270,000.
In addition to his prison sentence, PIZARRO, 38, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay forfeiture and restitution in the amount of $278,853.37.
Ms. Strauss praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations and the New York City Police Department.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher and Benet J. Kearney are in charge of the prosecution.
Serial Bank Robber Sentenced to Almost 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell today sentenced Edward Omar Johnson, age 37, of Baltimore, Maryland to 141 months in federal prison, followed by three years of supervised release, for committing five bank robberies and two attempted bank robberies in Baltimore and York, Pennsylvania, between February 27, 2019, and March 19, 2019. During each robbery, Johnson presented the victim teller with a demand note stating that he had a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Commissioner Michael Muldrow of the York City (Pennsylvania) Police Department.
According to his plea agreement, on February 27, 2019, Johnson robbed a bank in the 400 block of West Baltimore Street in Baltimore and robbed the same bank again on March 12, 2019. On March 4 and March 5, 2019, Johnson unsuccessfully attempted to rob banks in the 300 block of West Baltimore Street and the 2100 block of Eastern Avenue, both in Baltimore. On March 5, 2019, Johnson robbed a bank located in the 2000 block of East Monument Street in Baltimore. On March 12, 2019, Johnson robbed a second bank located in the 1100 block of North Charles Street in Baltimore. Finally, on March 19, 2019, Johnson robbed a bank in the unit block of West Market Street in York, Pennsylvania, throwing the demand note at the teller, then reaching into the victim teller’s cash drawer and stealing $430 in cash. In that robbery, Johnson also inadvertently took a GPS tracker hidden in bait money, which he threw in a nearby dumpster.
On March 14, 2020, the FBI Violent Crimes Task Force issued a media release of the robbery surveillance images captured during the robberies in Maryland. The Baltimore Police Department subsequently received an anonymous tip that the robber was Johnson. Law enforcement obtained prior photos of Johnson which matched the physical appearance of the suspect in the bank robberies. On March 22, 2019, the York City Police Department located and arrested Johnson in York, Pennsylvania. A search of Johnson recovered a bank robbery demand note, the language of which was consistent with the language in the notes used in previous robberies. Johnson waived his rights and during an interview with law enforcement admitted committing the robberies and identified himself in surveillance photos from the robberies. Later investigation revealed the existence of Johnson’s latent fingerprints on the demand notes he left behind after the attempted bank robbery and successful bank robbery on March 5, 2019, and the two March 12, 2019, bank robberies.
Acting United States Attorney Jonathan F. Lenzner praised the FBI, the Baltimore Police Department, and the York City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
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Schenectady Woman Charged with Possession of a Defaced FirearmRead the Press Release
ALBANY, NEW YORK – Nakia Barber, age 46, of Schenectady, New York, was charged by criminal complaint today with unlawfully possessing a defaced firearm. The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The charge filed against Barber alleges that she possessed a defaced Walther P22 .22 caliber pistol on October 30, 2018. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Barber appeared today in Albany before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending further proceedings.
The charge filed against Barber carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and the Schenectady County Sherriff’s Office, and is being prosecuted by Assistant United States Attorney Alexander P. Wentworth-Ping.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; 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 https://www.justice.gov/ag/project-guardian-memo-2019/download.
Savannah drug dealer faces up to 20 years in prison after guilty pleaRead the Press Release
SAVANNAH, GA: A Chatham County man who admitted to distributing cocaine and marijuana faces up to 20 years in federal prison.
Okemi Mon Lawton, 45, of Savannah, pled guilty in U.S. District Court to Possession with Intent to Distribute Cocaine and Marijuana, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Lawton forfeited $19,640.31 seized during the investigation, and the charge carries a statutory penalty of up to 20 years in federal prison, followed by up to three years of supervised release.
There is no parole in the federal system.
“Supervised release is designed to allow convicted felons a controlled opportunity to reintegrate into society after completion of a prison sentence,” said Acting U.S. Attorney Estes. “Okemi Lawton instead reverted to criminal behavior, and now faces the prospect of more hard time in prison.”
As described in court documents and testimony, Lawton was on supervised release following a prison sentence for a federal firearms charge in August 2018 when the Chatham-Savannah Counter Narcotics Team began investigating suspected drug distribution activity from Lawton’s Savannah residence. With assistance from the FBI, agents documented Lawton’s sale of cocaine, and a subsequent search of the residence discovered drugs, drug manufacturing and packaging materials, nearly $20,000 in cash, and a semi-automatic pistol.
Lawton remains in custody pending sentencing, which has not yet been scheduled.
“After getting a chance to change his criminal behavior, Okemi Mon Lawton chose to continue his life of crime by spreading drugs in our community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now he faces more severe prison time to think about his future, and hopefully doesn’t waste another opportunity to change.”
The case is being investigated by CNT and the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and Noah J. Abrams.
Rochester Man Sentenced to over 21 Years in Prison for Armed Robbery of Cell Phone StoreRead 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 Troy L. McCullough a/k/a Trey, 49, of Rochester, NY, who was convicted of Hobbs Act robbery and brandishing and carrying a firearm during a crime of violence, was sentenced to serve 262 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Robert A. Marangola, who handled the case, stated that on December 3, 2019, the defendant and co-defendants James A. Houston a/k/a Hood, and Raekwon D. Fuqua, and others, robbed at gunpoint the AT&T store located on E. Ridge Road in the Town of Irondequoit. McCullough entered the store wearing a mask and gloves, brandished and pointed a firearm at a store employee while ordering him to open the safe, held the employee at gunpoint while he and defendant Fuqua removed 32 cellular phones from the store safe, and took them out of the store. The cellular telephones were valued at over $32,344. McCullough was arrested shortly after the robbery at a residence on Champlain Street in Rochester, where the stolen phones were recovered.
Co-defendants Fuqua and Houston were previously convicted of Hobbs Act robbery and are awaiting sentencing.
The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; and the Irondequoit Police Department, under the direction of Chief Alan Laird.
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Rochester Man Arrested on Gun Charge After Attempting to Flee from PoliceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Tyree Sommerville, 24, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Meghan E. Leydecker, who is handling the case, stated that late in the morning on December 6, 2020, Buffalo Police Officers were on routine patrol when they observed a vehicle with Ohio license plates fail to signal 100 feet prior to turning at the intersection of Dartmouth Avenue and Orleans Street. Officers activated their overhead lights and sirens to conduct a traffic stop. The operator of vehicle refused to stop and continued to drive before turning into a lot on Stockbridge Avenue. At that point, three individuals exited the vehicle, including Sommerville, who jumped out of the vehicle and fled from officers on foot. After a foot chase, law enforcement officers apprehended the defendant on Hewitt Avenue. As he was being apprehended, officers recovered a semiautomatic pistol from Sommerville. In July 2014, the defendant was convicted of Criminal Possession of a Weapon in the Second Degree, in New York State Court and as a result is legally prohibited from possessing a firearm.
The defendant was ordered detained this morning following a detention hearing before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rock Springs Cpa Pleads Guilty to Assisting in Preparation of False Federal Income Tax ReturnRead the Press Release
Acting United States Attorney Bob Murray announced today that Paul Edman, age 53 and a Certified Public Accountant, of Rock Springs, Wyoming, pled guilty before U.S. District Court Judge Alan B. Johnson to aiding or assisting in the preparation of a false document filed with the Internal Revenue Service. According to the charges, on or about April 15, 2015, Edman willfully counseled taxpayers in the preparation of Internal Revenue Service Form 1040 for calendar year 2014, knowing the Form 1040 was false.
Edman faces a prison sentence of up to 3 years; up to one year of supervised release, and a fine of up to $100,00.00. Edman is scheduled to be sentenced on June 1, 2021.
This case was investigated by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorney Stephanie I. Sprecher.
Queens Man Indicted for $1.7 Million Paycheck Protection Program FraudRead the Press Release
An indictment was returned in federal court in Brooklyn yesterday charging Gelpys Joel Peralta-Gutierrez with wire fraud conspiracy relating to a fraudulent application for a loan under the United States Small Business Administration (the “SBA”)’s Paycheck Protection Program (“PPP”), which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Peralta-Gutierrez was previously arrested in February 2021 on a criminal complaint and will be arraigned at a later date.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG), announced the charges.
“As alleged, Peralta-Gutierrez claimed falsely that he needed government loan benefits to pay his employees during the pandemic, but instead deliberately lined his own pockets with $1.7 million,” stated Acting United States Attorney Lesko. “This Office will not hesitate to bring the full weight of the law against those who, for personal gain, take advantage of the COVID crisis and unlawfully divert funds from vitally important government relief programs.”
“Peralta, as alleged, took advantage of the Paycheck Protection Program, which was created to provide emergency financial assistance to businesses who need it during the pandemic. While claiming to have 62 employees on his payroll, he received $1.7 million worth of taxpayer-funded relief in support of his claims. According to other business relief applications he filed, however, he had only one employee. The FBI will continue to aggressively pursue those who are using the money from this economic relief program to pad their own pockets. If you know of similar instances of fraud, please call us at 1-800-CALL-FBI,” stated FBI Assistant Director-in-Charge Sweeney.
“Lying to gain access to economic stimulus funds will be met with justice,” stated SBA-OIG Special Agent-in-Charge McCall-Brathwaite. “SBA-OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
As set forth in court filings, in June 2020, Peralta-Gutierrez arranged for a PPP loan application to be submitted on behalf of his company, J Films HD Inc., claiming that he employed 62 employees with a total monthly payroll of nearly $700,000. Based on these representations, Peralta-Gutierrez’s business was granted a loan in excess of $1.7 million. The location that Peralta-Gutierrez submitted as his business address, however, was a New York City Housing Authority apartment at the Queensbridge Houses. In applications Peralta-Gutierrez submitted for other business relief, he acknowledged that, in reality, his business had only one employee, and total revenues of approximately $50,000.The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, he faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.
The Defendant:
GELPYS JOEL PERALTA-GUTIERREZ (also known as “Joel Peralta”)
Age: 31
Long Island City, New YorkE.D.N.Y. Docket No. 21-CR-149 (DG)
Postal Clerk Sentenced for Stealing from CustomersRead the Press Release
SAN DIEGO – U.S. Postal Service employee Esteban Sanchez was sentenced in federal court today to time served and ordered to pay $20,153.23 in restitution for stealing money orders from 21 post office customers.
Sanchez pleaded guilty on November 3, 2020 to Theft of Mail by Postal Employee. The stolen money was often needed to pay the customers’ rent and other essentials.
The defendant was a clerk at the Encanto, Southeastern and Andrew Jackson post offices in San Diego. Beginning in February 2019 and continuing through May 2019, Sanchez stole approximately 31 money orders from customers who purchased them from him at the Encanto and Southeastern Offices.
The customers put the money orders in envelopes and provided them to Sanchez for him to mail. Instead of mailing the money orders, Sanchez set them aside and after the customers left, he cashed the money orders and pocketed the money.
In April and May 2019, two customers filed complaints at the post office stations where Sanchez worked. The customers reported that the money orders that they’d purchased and mailed were never delivered to the intended recipients. Agents for the U.S. Postal Service, Office of Inspector General (USPS OIG) conducted an investigation and data analysis and determined that Sanchez cashed at least 31 money orders, from 21 different customers, totaling $20,153.23. Some of the thefts were captured on video surveillance from inside the Post Office.
All of the victims of Sanchez’s thefts have been reimbursed by the United States Postal Service.
"Customers trust the post office with important business, and we are going to keep it that way," said Acting U.S. Attorney Randy Grossman. "In the rare case where a postal employee is unworthy of that trust, we will step in and make it right." Grossman praised prosecutor Andrew Sherwood and U.S. Postal Service investigators for their excellent work on this case.
"The majority of Postal Service employees are hardworking and honest people. On the rare occasion that an employee betrays that trust, the U.S. Postal Service Office of Inspector General will aggressively pursue the actions and allegations of theft. I want to stress that we are committed to preserving the integrity of the U.S. Mail and U.S. Postal Service resources," said Special Agent in Charge Brian Washington, with the U.S. Postal Service Office of Inspector General.
To report fraud, waste, and misconduct to the U.S. Postal Service Office of Inspector General, please visit www.uspsoig.gov/hotline or send your complaint to ATTN: HOTLINE, USPS OIG, 1735 North Lynn Street, Arlington, VA 22209-2020.
DEFENDANT Criminal Case No. 21-CR-02453-GPC
Esteban Sanchez Age: 26 San Diego, CA
SUMMARY OF CHARGE
Theft of Mail by Postal Employee (Felony) – Title 18, U.S.C., Section 1709
Maximum penalty: Five years in prison; $250,000 fine
INVESTIGATING AGENCY
United States Postal Service, Office of Inspector General
Pittsburgh Woman Charged with Drugs and Firearms OffensesRead the Press Release
PITTSBURGH, PA. - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute a quantity of cocaine and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Monique Matthews, 25, of Pittsburgh, PA 15208, as the sole defendant.
According to the Indictment, on or about February 25, 2021, Matthews was found to be in possession of cocaine and a firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant is currently being detained at Allegheny County Jail.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police 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.
Pittsburgh Man Indicted on Drug ChargeRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Quenton McCoy, age 35, formerly of Pittsburgh, Pennsylvania 15210, as the sole defendant.
According to the Indictment, on or about February 14, 2021, McCoy possessed with intent to distribute a quantity of heroin and fentanyl.
The law provides for a maximum total sentence of not more than 30 years’ imprisonment and a fine of $2,000,000 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 Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Penn Hills Police Department and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Admits Role in Heroin Trafficking OrganizationRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Doron McCarthy, 29, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that McCarthy conspired to distribute and possessed with intent to distribute heroin from September of 2018 through October of 2019. In 2018, the Federal Bureau of Investigation began investigation a heroin trafficking organization operating throughout the greater Pittsburgh area of which McCarthy was a member. Beginning in February of 2019 and continuing through September of 2019, the FBI initiated a Title III wiretap investigation into the organization. McCarthy was intercepted communicating with his codefendants about acquiring quantities of heroin, prices of heroin, and the purity of the heroin. Through extensive physical and electronic surveillance, McCarthy was observed meeting with his co-conspirators to conduct heroin transactions.
Judge Stickman scheduled sentencing for May 4, 2021. The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, 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 Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police conducted the investigation leading to the prosecution of McCarthy.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Sentenced to 14 Years in Prison for Gun TraffickingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mario Ramirez, 33, of Philadelphia, PA, was sentenced to 14 years in prison, and three years of supervised release by United States District Judge Gene E.K. Pratter for trafficking weapons, conspiracy, and being a felon in possession of firearms as part of his family’s firearms trafficking ‘business’ in Philadelphia. The defendant committed these crimes while under the supervision of the Commonwealth of Pennsylvania for a prior gun offense.
In March 2020, the defendant pleaded guilty to all charged offenses in two separate Indictments. First, in January 2019, the defendant was charged with being a felon in possession of firearms stemming from the recovery of four of the defendant’s firearms which he had stored in his mother’s home in Philadelphia. Then in October 2019, the defendant was charged with conspiracy to deal in firearms without a license, dealing in firearms without a license, and being a felon in possession of firearms, all stemming from a law enforcement operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in the fall of 2018. During the operation, ATF purchased 35 firearms, including machinegun conversion kits and 11 self-made, non-serialized firearms, in eight transactions from the defendant, who conspired with co-defendant Matthew “Montana” Stephens who had brokered the sales and received a percentage of each sale as a fee.
On March 4, 2021, the defendant’s sister, Elena Ramirez, was sentenced to three years in prison for trafficking firearms and ammunition – sales which were also brokered with the assistance of Stephens.
“Mario Ramirez added to the chaos and carnage on the streets of our city by illegally selling firearms,” said Acting U.S. Attorney Williams. “When he was arrested on these charges, his sister stepped in to fill the gap – and now they will both face the consequences of their actions in federal prison.”
“Firearms trafficking continues to help fuel violent gun crime throughout the Commonwealth of Pennsylvania,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Illegally selling firearms presents an obvious threat toward the safety of our communities. Had it not been for the collaborative work between investigators and the United States Attorney’s Office, dozens of firearms would have been on the streets of Philadelphia where they would have been used in an untold number of violent crimes.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Pasco County Meth Dealer Sentenced to More Than Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. today sentenced Jason A. Crowder (42, Zephyrhills) to 10 years and 1 month in federal prison for possession with the intent to distribute 50 grams or more of methamphetamine. Crowder had pleaded guilty on December 8, 2020.
According to court documents, on January 17, 2020, deputies from the Pasco Sheriff’s Office executed a search warrant at Crowder’s residence and recovered 325 grams of methamphetamine from a safe inside the home.
This case was investigated by the Drug Enforcement Administration and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Orlando Man Pleads Guilty to Conspiring and Distributing Fentanyl-Laced HeroinRead the Press Release
Orlando, Florida – Freddie Miguel Velez-Gonzalez (53, Orlando) has pleaded guilty to one count of conspiracy to possess with the intent to distribute more than 40 grams of fentanyl and more than 100 grams of heroin, and to six counts of distribution and possession with the intent to distribute controlled substances. Velez-Gonzalez faces a minimum mandatory sentence of 5 years, and up to 40 years, in federal prison. A sentencing date has not yet been set.
According to court documents, Velez-Gonzalez was a member of a drug trafficking organization (DTO) that distributed controlled substances including, heroin, fentanyl, cocaine, marijuana, and tramadol, in the Middle District of Florida. Between approximately April 23 and August 11, 2020, at the direction of law enforcement, a confidential source negotiated and met with Velez-Gonzalez at the same designated location and purchased narcotics from him. This occurred on six different dates and resulted in the purchase of approximately 106 grams of mixtures containing heroin, fentanyl, or a combination of the two substances. Velez-Gonzalez sold the drugs to the confidential source to further a drug trafficking conspiracy with other members of the DTO.
On September 8, 2020, Velez-Gonzalez was arrested alongside his co-defendant, Inginio Santos-Garcia, at an address on Brosche Road in Orlando from which the co-defendants were distributing narcotics in furtherance of the conspiracy. Santos-Garcia pleaded guilty on November 9, 2020, and is awaiting sentencing.
This case was investigated by the Drug Enforcement Administration, with assistance from the Orlando Police Department. It is being prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Ilianys Rivera Miranda.
Oklahoma Man Pleads Guilty to Child Pornography ChargesRead the Press Release
An Oklahoma man pleaded guilty today to producing and possessing child pornography.
According to court documents, Hunter Jacob James Hope, 21, of Muldrow, engaged in a pattern of conduct that involved threatening to share sensitive (typically undressed or partially undressed) images of minors unless the minors either engaged in sexual acts with him or provided him over the internet with sexually explicit images of themselves.
Hope pleaded guilty to seven counts of production of child pornography and one count of possession of child pornography. According to his written plea agreement, he will face a term of imprisonment between 262 to 327 months. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The plea agreement also requires that Hope pay restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma; and Special Agent in Charge Ryan L. Spradlin of U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas made the announcement.
HSI investigated the case.
Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oklahoma City Attorney Sentenced to Serve 24 Months in Federal Prison for Possessing a Firearm While Subject to Victim Protective OrderRead the Press Release
OKLAHOMA CITY – Today, Oklahoma City attorney KEEGAN KELLEY HARROZ, 37, was sentenced to serve 24 months in federal prison for being a prohibited person unlawfully in possession of a firearm, announced Acting U.S. Attorney Robert J. Troester.
On September 29, 2020, Harroz pled guilty to one count of unlawfully possessing a firearm while subject to victim protective order. Specifically, Harroz admitted that, on or about August 4, 2019, she possessed a firearm in violation of federal law because she was subject to a state-court victim protective order at the time she possessed the firearm.
Today, U.S. District Judge Scott L. Palk sentenced Harroz to 24 months of imprisonment, to be followed by a three-year term of supervised release. In announcing the sentence, Judge Palk noted the nature and circumstances of the offense and the history and characteristics of Harroz. Harroz has been in federal custody since September 27, 2019.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the United States Marshals Service and Oklahoma City Police Department, along with other law enforcement partners. Assistant U.S. Attorneys Matthew P. Anderson, Jacquelyn M. Hutzell, and Danielle M. Connolly are prosecuting the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
North Attleboro Man Admits to Leading Steroid Distribution ConspiracyRead the Press Release
PROVIDENCE – A North Attleboro, MA, man arrested twice for leading a conspiracy to import and distribute large quantities of steroids faces up to 40 years in federal prison and will, according to a plea agreement filed with the court, forfeit more than $640,000 derived from his criminal activity, after pleading guilty today in federal court in Providence to conspiracy and money laundering charges.
David M. Esser, 47, first arrested in February 2020, and rearrested in December 2020, admitted that he arranged for the importation of large quantities of raw steroids from international suppliers, primarily based in Hong Kong. The raw steroids were shipped directly to various locations in the United States where individuals, working at Esser’s direction and paid by Esser, “cooked” the raw steroid product into liquid form, packaged the product in vials, and shipped the vials to a stash house in North Attleboro. From there, Esser and others shipped the product to customers throughout the United States.
Esser, who was released on $50,000 unsecured bond while awaiting trial following his arrest on February 14, 2020, was re-arrested on December 14, 2020, on charges he arranged with a Virginia resident he conspired with in the past to resume the sale, packaging, and distribution of anabolic steroids.
Esser was ordered detained in federal custody following his second arrest.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Esser pleaded guilty to conspiracy to distribute anabolic steroids, conspiracy to distribute anabolic steroids while on release, and money laundering, announced Acting United States Attorney Richard B. Myrus and Homeland Security Investigations Acting Special Agent in Charge William S. Walker.
According to a plea agreement filed with the court, Esser will forfeit proceeds from his criminal activity to include a total of $160,359.85 in cash and bank accounts seized at the time of his arrests; cryptocurrency equal to $268,692.74; $214,000 – the value of thirteen properties purchased by Esser in Pennsylvania, purchased using proceeds from his criminal activity; four vehicles; and jewelry.
Esser, who remains detained in federal custody, is scheduled to be sentenced on June 7, 2021.
At sentencing, Esser faces statutory penalties of up to 40 years imprisonment; two years to lifetime supervised release; and a fine of $1.5 million dollars.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Acting United States Attorney Myrus acknowledges and thanks the United States Postal Inspection Service, Alamance County North Carolina Narcotics Enforcement Team, U.S. Food and Drug Administration, Internal Revenue Service, HSI Special Agents in the Houston and Winston-Salem Field Offices, and officers and detectives from the North Attleboro and Mansfield Police Departments for their assistance in the investigation of this matter and arrest of defendants involved in this matter.
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Newport Man Pleads Guilty to Unlawful Possession of FirearmsRead the Press Release
CONCORD - Jacob Valley, 26, of Newport, pleaded guilty in federal court to unlawful possession of firearms, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on November 15, 2019, law enforcement officers searched Valley's home pursuant to a federal search warrant. During the search, they found firearms and ammunition. As a person with felony convictions, Valley is legally prohibited from possessing firearms and ammunition.
Valley is scheduled to be sentenced on July 13, 2021.
“In order to protect the public from violent crime, it is vitally important to keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute felons who possess guns unlawfully.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the New Hampshire Attorney General's Drug Task Force; the Sullivan County Sheriff's Office; the Manchester Police Department, Claremont Police Department, Charlestown, Police Department; and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Muskogee Resident Pleads Guilty to Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Demarco Latrel Patterson, age 25, of Muskogee, Oklahoma entered a guilty plea to Sexual Abuse of a Minor in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2243(a), and 2246, punishable by not more than 15 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 22, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly engage in a sexual act as defined in Title 18, United States Code, Section 2246(2)(A), with a minor female who at that time had attained the age of 12 years, but had not attained the age of 16 years, and who was at least four years younger than defendant.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Kyle J. Essley represented the United States.
Muldrow Resident Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hunter Jacob James Hope, age 21, of Muldrow, Oklahoma entered a guilty plea to seven counts of production of child pornography, in violation of Title 18, United States Code, Section 2251, and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252. According to the plea agreement, he will face a term of imprisonment between 262 and 327 months and a fine up to $250,000.00.
According to court documents, Hope engaged in a pattern of conduct that involved threatening to share sensitive (typically undressed or partially undressed) images of minors unless the minors either engaged in sex acts with him or provided him with sexually explicit images of themselves over the internet.
The charges arose from an investigation by the Sallisaw, Oklahoma Police Department and the Department of Homeland Security, Homeland Security Investigations.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Gwendelynn Bills represented the United States.
Missouri Couple Charged with Bankruptcy Fraud and Evading Bank Reporting RequirementsRead the Press Release
A Camden County, Missouri couple are facing bankruptcy fraud and structuring charges arising out of a scheme to defraud the federal bankruptcy court for the Southern District of Illinois. Kevin and
Catharine Kahrig are named in a four-count indictment that accuses the pair of bankruptcy fraud and structuring. The indictment also charges Kevin Kahrig, age 47, with making a long list of false statements and omissions to the bankruptcy court.
According to the indictment, from 2016-2018, the Kahrigs launched a scheme to conceal Kevin’s assets from his creditors and fraudulently transfer at least $550,000 in assets to his wife, Catharine, age 34. Kevin and Catharine allegedly deposited over $160,000 in cash and checks belonging to Kevin into Catharine’s bank account. Catharine allegedly used the commingled funds in her account to purchase property and selectively pay Kevin’s expenses, while Kevin emptied and closed his own bank accounts, cashing over $200,000 in checks rather than depositing them with the bank. The Kahrigs also allegedly structured over $100,000 in deposits in an attempt to evade bank reporting requirements.The indictment further alleges that Kevin instructed his business customers to make out payments to
Catharine and other family members rather than to himself or his business. The couple is also accused of selling Kevin’s boat and using the $395,000 check to pay off Catharine’s mortgage rather than pay Kevin’s debts.Kevin Kahrig filed for bankruptcy in May 2018. The indictment charges him with making numerous false statements and omissions in his bankruptcy filings and subsequent statements under oath to conceal the scheme to defraud.
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Southern
Illinois, Central Illinois and Indiana (Region 10). “I am gratified by the actions taken by United
States Attorney Wei hoeft and our law enforcement partners to prosecute those who engage in fraudulent conduct.”Each charge carries a maximum sentence of five years imprisonment and a fine of up to
$250,000. The Kahrigs’ initial appearances and arraignments were held earlier today, and both defendants entered a plea of not guilty. Trial is set for May 19, 2021, before United States
District Judge Stephen P. McGlynn.An indictment is merely a formal charge against a defendant. Under the law, the defendants are presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the FBI, in collaboration with the Southern District of Illinois
Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10, after referral by the
U.S. Trustee. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South Bend, Indiana. The case is being prosecuted by Assistant United
States Attorney Peter T. Reed.Mexican National Convicted at Trial After Attempting to Eat Memory Cards Containing Child PornographyRead the Press Release
RALEIGH, N.C. – A federal jury today convicted David Sierra Orozco, 31, a Mexican national and recent resident of Georgia, of possessing child pornography.
According to court records and evidence presented at trial, on July 25, 2017, members of the Harnett County Sheriff’s Office were observing traffic outside of Dunn city limits, when they spotted a Lexus whose registered owner had an expired license. They followed the Lexus, and after observing it twice drift across the center lane, conducted a traffic stop.
The driver identified himself as Orozco and presented a Mexican consular ID but no valid driver’s license. Officers noticed that Orozco appeared extremely nervous—he was sweating profusely despite the air conditioner on high and was shaking uncontrollably. They also noticed tool marks on the car’s instrument panel and that the cover was not flush with the dashboard. Recognizing this as signs of a possible hidden “trap” in the dashboard, officers called for a K-9 deputy. As the traffic stop proceeded, Orozco consented to a search, and the K-9 arrived and alerted to the car. Within a trap in the dashboard, officers found $111,252 in cash, wrapped in blocks within grocery bags.
While being processed into the Harnett County Jail on a charge of driving without a license, Orozco was searched. A folded up $100 bill was removed from his pocket, and as law enforcement unfolded it, several MicroSD memory cards fell out. Orozco lunged for the floor, picked up what appeared to be two memory cards, and put them in his mouth. Officers recovered one chewed half of a memory card from his mouth and three intact cards from the floor.
Law enforcement obtained a search warrant based on possible narcotics trafficking. But upon opening the first MicroSD memory card, they spotted what appeared to be child sexual abuse material, commonly referred to as child pornography. After securing a second search warrant, a full forensic review uncovered over 261 videos and 2 images of child pornography on one MicroSD memory card, another 14 videos on a second memory card, and 5 child pornography thumbnails on the defendant’s smart phone. Most files depicted children under 12 years of age.
Along with the child pornography, the forensic examiner found files linking the devices to Orozco. Two of the memory cards and the cell phone contained photographs that Orozco had taken of himself. The other card contained a photo of a car that an officer confirmed was the same make, model, and color as the Lexus that Orozco had been driving. Forensics further showed that Orozco had taken and sent one of the photos of himself using the same mobile application that had been used to collect the child pornography.
Orozco faces a maximum of 240 months in prison and is scheduled to be sentenced during the court’s June 21, 2021 term.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Harnett County Sheriff’s Office and Department of Homeland Security have investigated the case, which Assistant U.S. Attorney Jake D. Pugh is prosecuting.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00095-D.
Max Meadows Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
ABINGDON, Va.- A Max Meadows, Virginia man, who willfully filed false tax returns for tax years 2014 through 2016, pleaded guilty yesterday in U.S. District Court in Abingdon, to a federal felony of willfully filing a false tax return, Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigations announced today.
Matthew Wood Ridgaway, 61, waived his right to be indicted and pleaded guilty yesterday to one count of willfully filing a false tax return. A sentencing, Ridgaway faces a maximum possible sentence of three years in prison and/or a fine of $250,000. A sentencing hearing has been scheduled for June 17, 2021, at 10:30 a.m.
According to court documents, for tax years 2014 through 2016, Ridgaway failed to disclose on his Forms 1040 income tax returns over $130,000 in payments he received as rental income from properties he owns.
The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Manlius Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chester Hammond, age 44, of Manlius, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of distribution of child pornography and one count of possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
Hammond, who remains detained pending his sentencing scheduled for July 27, 2021, faces at least 15 years in prison and up to 60 years imprisonment on the charges. The Court will also impose a term of supervised release of between five (5) years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Hammond admitted that while using a social media messaging application he sent an image depicting child pornography to another individual over the internet. A subsequent search of Hammond’s cellular telephone revealed that he was in possession of over 400 images of child pornography. Hammond is registered sex offender who was convicted in 1996 of attempted sexual abuse in the first degree.
Hammond’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.