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22 March 2021
Rapid City Woman Sentenced to 10 Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, woman who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on March 12, 2021, by U.S. District Court Judge Jeffrey L. Viken.
Erin Hunter, age 36, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately July 2019 to May 2020, methamphetamine was brought to South Dakota by others. Hunter then dispersed the methamphetamine to others for use or additional distribution.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard.
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.
Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Hunter was immediately returned to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to 15 Years in Federal Prison for Attempted Sexual Exploitation of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Attempted Sexual Exploitation of a Minor was sentenced on March 12, 2021, by Jeffrey L. Viken, U.S. District Court Judge.
Jonathan Andrew Whitney, age 34, was sentenced to 15 years in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Whitney will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Whitney, a previously convicted sex offender, was arrested and federally indicted following multiple chats he exchanged with a person Whitney believed to be a 15-year-old girl, but who was in fact an undercover agent. Whitney sent sexually explicit messages to the 15-year-old undercover persona and negotiated the time and place he would meet the minor to engage in unlawful sex acts. When Whitney went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, Department of Homeland Security, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Whitney was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Gordon Cosme, age 38, was sentenced on March 12, 2021, to five years in federal prison, followed by three years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Cosme, who is prohibited from possessing firearms due to a previous felony conviction, possessing a Springfield Armory, .45 auto caliber semi-automatic pistol, which was found after Cosme came into contact with law enforcement officers in February 2019 in Rapid City.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Cosme was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 22, 2021, by U.S. District Judge Karen E. Schreier.
Jacob Lee Walton, age 33, was sentenced to 200 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Walton was indicted by a federal grand jury on January 7, 2020. He pled guilty on July 27, 2020.
The conviction stemmed from an incident beginning on an unknown date and continuing until on or about December 2019, when Walton, along with others, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine, which is a Schedule II controlled substance.
This case was investigated by Department of Homeland Security – Homeland Security Investigation and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Walton was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Cocaine and Firearm ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Cocaine and Possession of a Firearm by a Prohibited Person was sentenced on March 22, 2021, Chief Judge Roberto A. Lange, U.S. District Court.
Michael Kearney, age 29, was sentenced to 24 months in federal prison, followed by three years of supervised release, a fine of $500, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Kearney was indicted by a federal grand jury on March 9, 2020. He pled guilty on December 21, 2020.
The convictions stemmed from a drug conspiracy that occurred from January 2017 through March 2018. Kearney was involved in a conspiracy with others on the Rosebud Indian Reservation to distribute cocaine and marijuana. Further, on July 23, 2017, Kearney, knowing he was an unlawful user of and addicted to a controlled substance, knowingly possessed a firearm.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Kearney was immediately turned over to the custody of the U.S. Marshals Service.
Portland Man Sentenced to Federal Prison for Fraud Schemes Targeting Family and FriendsRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for perpetrating two separate fraud schemes targeting his family and friends, resulting in losses exceeding $650,000, announced Acting U.S. Attorney Scott Erik Asphaug.
Joseph D. Galvan, 46, was sentenced to 46 months in federal prison and 3 years’ supervised release. He was also ordered to pay $658,060.39 in restitution.
According to court documents, between January 2018 and August 2020, Galvan devised a scheme to defraud his ex-wife’s family and friends, most of whom had emigrated to the U.S. from Romania or were of Romanian descent. Galvan posed as a savvy, high-rolling investment trader and promised his victims he would invest their money and help them achieve financial security, retire early, and live a good life. He also promised to teach his victims, many of whom were elderly and spoke English as a second language, how to successfully navigate the stock market.
Once victims transferred their funds into an account controlled by Galvan, he failed to open investment accounts on their behalf as promised. Galvan used an app called StockMaster to create false investment profile accounts for each victim and would periodically send them phony screen shots of their profiles. Galvan subsequently spent victims’ money on various personal expenses including rent, car payments, travel, dining, food, guns, and voluntary cosmetic procedures. Total losses incurred by these victims exceeded $518,000, which, for many, constituted their entire life savings.
During this same time, Galvan engaged in a separate scheme targeting his own family and friends. In July 2019, he told a victim he had purchased a house in Lake Oswego, Oregon for $900,000, despite the home being worth approximately $2 million. He further told the victim that he sued the owners of the house after they refused to leave. According to Galvan, a court judgment allegedly required the owners to pay him a large settlement that was placed into an escrow account. Galvan falsely claimed the settlement had grown in escrow to $1 million, but that the court would not release the funds until certain conditions with Galvan’s bank account were met.
Galvan convinced the victim to pay for various fees and costs associated with the house purchase while he awaited the settlement funds. Galvan told the victim he would pay him $250,000 if the victim agreed to provide these funds. Galvan also promised to pay the victim an additional $100,000 every time the victim provided more funds toward house purchase expenses. Galvan encouraged the victim to convey a similar offer to several of the victim’s relatives and a family friend. Based on Galvan’s false promises, the victim and several others paid him more than $130,000. In reality, Galvan had never purchased a home in Lake Oswego and there were no settlement funds in escrow.
On August 19, 2020, a federal grand jury in Portland returned a seventeen-count indictment charging Galvan with wire fraud and money laundering for the scheme perpetrated on his ex-wife’s family and friends. For the scheme targeting his own family and friends, on November 19, 2020, Galvan was charged by criminal information with wire fraud. On November 23, 2020, he pleaded guilty to wire fraud and money laundering to resolve both cases.
This case was investigated by the FBI and prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
North Pole Mail Carrier Indicted for Theft, Delay, Destruction of MailRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Wilson announced that Melissa M. Lascurain, 40, of North Pole has been indicted by a federal grand jury on charges of Mail Theft and Delay or Destruction of Mail by a Postal Employee.
According to the indictment, between November and December 2019, Lascurain was empgloyed as a contract delivery service mail carrier for the U.S Postal Service and allegedly stole approximately 37 letters that she was entrusted to deliver as a mail carrier. Additionally, the indictment further alleges that Lascurian destroyed, opened, delayed and failed to deliver postal cards, packages, bags, and mail intended for delivery on her assigned route.
If convicted, the defendant faces up to 5 years in prison and a $250,000 fine for the 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 U.S. Postal Service, Office of Inspector General and the U.S. Postal Inspection Service (USPIS) conducted the investigation leading to the charges 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.
New Orleans Woman Charged with Social Security Fraud Spanning More Than Three DecadesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BETTY ARRINGTON a/k/a “Betty Callie Arrington,” a/k/a “Betty Francis C Miller,” a/k/a “Betty Miller” (“ARRINGTON”), age 72, a resident of New Orleans, Louisiana, was charged on March 19, 2021 with theft of government funds.
According to the Indictment, ARRINGTON engaged in a 35-year multifaceted scheme to defraud the Social Security Administration (“SSA”). From 1984 through 2019, ARRINGTON intentionally used a Social Security number (“SSN”) not assigned to her by the Commissioner of the SSA in order to conceal her earnings from employment in the New Orleans area. ARRINGTON’s fraudulent use of a SSN, in addition to the concealment of program eligibility factors and the intentional submission of false statements to SSA, aided ARRINGTON in fraudulently gaining and maintaining Supplemental Security Income Disability benefits totaling approximately $164,270.90.
ARRINGTON is charged in the Indictment with one count of theft of government funds, in violation of Title 18, United States Code, Section 641. The maximum penalties that may be imposed upon conviction are up to ten years imprisonment; a fine of $250,000; up to three years of supervised release; and a $100 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Social Security Administration Office of Inspector General for its work in investigating this case. U.S. Attorney Evans reiterated that an Indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
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Middle Tennessee Investors to Pay $200,000 to Settle False Claims Act Allegations Regarding HUD ProgramRead the Press Release
NASHVILLE, Tenn. – March 22, 2021 – Laziza Abdullaeva and Aziz Ashurov of Mt. Juliet, Tennessee, agreed to pay $200,000 to settle False Claims Act allegations involving misrepresentations in their purchases of certain properties from the U.S. Department of Housing & Urban Development (HUD), Mary Jane Stewart, Acting U.S. Attorney for the Middle District of Tennessee, announced today.
On December 30, 2019, relators William Worrall and Jim Gregory filed a qui tam action against Ms. Abdullaeva, Mr. Ashurov and their investment company, Capital Invest, LLC, in the United States District Court for the Middle District of Tennessee. Relators alleged that Abdullaeva and Ashurov made false statements that they intended to occupy certain properties they purchased from HUD as a primary residence, but instead resold the properties for a profit and were presently renovating one such property purchased in East Nashville presumably for resale.
“When purchasers misstate their intentions in purchasing federally-owned properties, it impairs the ability of HUD to provide access to affordable housing for everyone,” said Acting U.S. Attorney Stewart. “This settlement sends a message that the Government will take action to ensure that the objectives of HUD are met and to deter investors from profiting through misrepresentations.”
The settlement agreement resolves the United States’ allegations that misrepresentations were made concerning three properties in Nashville, and one property in Antioch that Ms. Abdullaeva and Mr. Ashurov purchased between July 29, 2013 and December 20, 2017. As part of the settlement, Relators will receive a 20% share of the recovery.
“HUD housing programs have been created to aid millions of Americans to realize the dream of homeownership. This action today should serve as notice that through close cooperation with our law enforcement partners this office will work to preserve the fiscal integrity of affordable housing funds and ensure their appropriate use,” said Wyatt Achord, Special Agent in Charge, HUD, Office of Inspector General.
The case was investigated by the United States’ Attorney’s Office for the Middle District of Tennessee and HUD, Office of Inspector General (HUD OIG). Assistant U.S. Attorney Kara F. Sweet represented the United States.
The lawsuit is captioned United States ex rel. Worrall v. Ashurov, et al., Case No. 3:19-cv-1170 (Trauger, J.). The claims alleged are allegations only, and there has been no determination of liability.
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Medical Doctor and Study Coordinator Sentenced to Prison in Scheme to Falsify Clinical Trial DataRead the Press Release
A Florida medical doctor was sentenced to 63 months in prison after pleading guilty to her role in a scheme to falsify clinical trial data regarding an asthma medication.
Dr. Yvelice Villaman Bencosme, 64, of Miami, previously pleaded guilty in U.S. District Court for the Southern District of Florida to one count of conspiracy to commit wire fraud related to her work at Unlimited Medical Research in Miami. Bencosme is the second defendant to be sentenced in connection with the scheme. On March 5, 2021, Lisett Raventos, 46, of Miami, was sentenced to 30 months in prison after also pleading guilty to conspiracy to commit wire fraud.
Bencosme was a licensed medical doctor who served as the primary investigator for clinical trials purportedly conducted at Unlimited Medical Research. Raventos was the site director, the director of clinical operations, and a study coordinator at the clinic. In pleading guilty, Bencosme and Raventos admitted that they participated in a scheme to defraud an unnamed pharmaceutical company by fabricating the data and participation of subjects in a clinical trial at Unlimited Medical Research.
The clinical trial was designed to investigate the safety and efficacy of an asthma medication in children between the ages of four and 11. Bencosme and Raventos admitted that they falsified medical records to make it appear as though pediatric subjects made scheduled visits to Unlimited Medical Research, took study drugs as required, and received checks as payment. In sentencing Raventos, U.S. District Judge Beth Bloom said that if the defendants’ actions had been left unchecked, the scheme “could have negatively impacted the treatment and well-being of children with asthma throughout the country.”
“Falsifying clinical trial data risks the health of those who might later rely on the drugs being tested,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue working with its partners at the Food and Drug Administration to investigate and prosecute anyone who endangers the public for personal gain.”
“Clinical trials are an essential part of the medical research process, as they ensure the effectiveness and safety to patients of new drugs,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Those who manipulate clinical data risk the public’s health and such criminal behavior will be prosecuted.”
“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials. Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review,” said Special Agent in Charge Justin C. Fielder of the Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office. “We will continue to investigate and bring to justice those whose actions may subvert the FDA drug approval process and put the public health at risk.”
Another defendant in the case, Maytee Lledo, pleaded guilty in February 2021 to conspiracy to commit wire fraud. She is scheduled to be sentenced on April 16, 2021, in Miami.
Trial Attorneys Joshua Rothman and Kara M. Traster of the Civil Division’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
Medical Doctor Turned Crystal Meth Dealer Sentenced to Ten Years in Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in Miami has sentenced 49-year-old Carlton Cash, of Ft. Lauderdale, Florida, to ten years in prison for dealing crystal methamphetamine. Cash holds an active Florida medical license.
Cash was charged and convicted of selling over 150 grams of crystal methamphetamine in Broward County, Florida over an eight-month period starting in 2019. Cash had worked as an emergency room physician until 2014, when he was declared disabled due to injuries he suffered in a car accident ten years earlier. Cash was receiving $15,000 each month in disability payments when he purchased about $100,000 worth of crystal methamphetamine in the year before his arrest and sold crystal methamphetamine to others. Besides his Florida license, public records show that Cash has held medical licenses in Alabama, Tennessee, Arkansas, New York, Michigan, and Mississippi.
In December 2020, Cash pled guilty in Miami federal court to five counts of possession with the intent to distribute crystal methamphetamine.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Keith Weis, Special Agent in Charge, Drug Enforcement Administration, Miami Field Office, and Jonathan Shaw, Chief, Margate Police Department, made the announcement.
DEA and Margate Police Department investigated the case, with assistance from Broward County Sheriff’s Office. Assistant United States Attorney Donald F. Chase, II prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-CR-60118.
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Massachusetts Man Pleads Guilty to Conspiring to Steal Mail and Cash Counterfeit ChecksRead the Press Release
PORTLAND, Maine: A Holbrook, Massachusetts man pleaded guilty in federal court today to conspiring to steal checks from the mail in Maine and to cash counterfeit versions of those checks at banks in Massachusetts, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in September 2016, two business checks were stolen from the mail in Scarborough, Maine. The intended recipients of the checks were both businesses located in an industrial park in Scarborough. About two weeks later, Christopher Farnham, 35, and his co-defendant Nicholas Veelenturf cashed or attempted to cash counterfeit versions of the two checks at several TD Bank branch locations in Massachusetts. The routing and account numbers for each business had been printed on different check stock, the check amounts had been increased significantly, and the names of the payees had been altered to either Farnham’s or Veelenturf’s name. The total amount of the checks cashed was almost $16,000.
Farnham faces up to five years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Nicholas Veelenturf was sentenced in October 2018 to two years in prison and three years of supervised release. He was also ordered to pay restitution in the full amount of the two checks.
The U.S. Postal Inspection Service investigated the case.
Martinsburg man sentenced for role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Justin Clinton, of Martinsburg West Virginia, was sentenced today to three years of probation for his role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Clinton, 26, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base” in December 2020. Clinton admitted to working with others to distribute Eutylone and Cocaine Base from October 2019 to April 2020 in Berkeley and Jefferson Counties.Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Mark J. Lesko Appointed Acting United States Attorney for the Eastern District of New YorkRead the Press Release
Mark J. Lesko has begun serving as Acting United States Attorney for the Eastern District of New York, as per the Vacancies Reform Act. Mr. Lesko was sworn in today by United States Chief Judge for the Eastern District of New York Margo K. Brodie. Mr. Lesko has served as the First Assistant United States Attorney since March 2019. In that role he has been second-in-command of the U.S. Attorney’s Office and a key decision-maker in both criminal prosecutions and civil litigation in the Office. Mr. Lesko succeeds Seth D. DuCharme, who resigned on March 19, 2021.
“It is an absolute honor and privilege to serve as the Acting United States Attorney for the Eastern District of New York,” stated Acting U.S. Attorney Lesko. “After having spent many years on the line prosecuting federal crimes, as well as significant time overseeing prosecutions and civil cases in a wide range of supervisory positions, I look forward to leading the Office and working with our law enforcement and agency partners to protect and serve the Eastern District’s more than eight million residents. I’m also particularly proud that I get to continue to work with the outstanding and dedicated women and men in the Office as they continue their tireless efforts to prosecute criminal cases and defend the interests of the United States, all in the unwavering pursuit of the fair administration of equal justice under the law.”
In October 2018, Mr. Lesko returned to the Office and assumed the position of Special Counsel to the United States Attorney before he was appointed to the position of First Assistant United States Attorney two years ago. Mr. Lesko was a member of the prosecution team that won the trial conviction of Nxivm founder Keith Raniere on all counts of a superseding indictment charging him with racketeering and racketeering conspiracy; sex trafficking, attempted sex trafficking and sex trafficking conspiracy; forced labor conspiracy and wire fraud conspiracy.Mr. Lesko previously served in the Office from 2002 to 2009. He served as the Deputy Chief of the Long Island Criminal Division and as a Computer Hacking and Intellectual Property Coordinator. While in the Office, Mr. Lesko conducted complex and wide-ranging criminal investigations and handled numerous jury trials and appeals. His most notable cases include the prosecutions of the former CEO and CFO of Symbol Technologies; a titanium manufacturing company and its CEO for violations of the Resource Conservation Recovery Act for illegal storage of hazardous waste; two fraudulent financiers of a major motion picture; and a Colombo associate. His trial convictions include a Muttontown, New York couple who tortured two Indonesian domestic servants held in a condition of forced labor and servitude; gang members convicted of the racketeering murder of a man they mistakenly believed to be a member of the MS-13; and the leader of a robbery crew based in the Louis H. Pink Houses in East New York who was responsible for more than 50 armed robberies throughout New York City and Long Island.
Prior to joining the Office, he served as an Assistant United States Attorney for the District of Columbia from 1999 to 2002, where he was in the Homicide/Major Crimes Section and handled numerous jury trials and appellate arguments. He also worked as an associate at the law firms of Miller & Chevalier in Washington, D.C. and Kirkpatrick & Lockhart in Pittsburgh, Pennsylvania (now K&L Gates). He received his B.A. from Yale University in 1989 and his J.D. from the Georgetown University Law Center in 1994.
Mr. Lesko has also previously served as the Vice President for Economic Development, the Executive Dean of the Center for Entrepreneurship and an Adjunct Professor of Law at Hofstra University. Prior to Hofstra, Mr. Lesko served as the Executive Director of Accelerate Long Island, a regional collaboration between Brookhaven National Laboratory, Cold Spring Harbor Laboratory, Hofstra University, Northwell Health and Stony Brook University that oversaw a seed-stage investment program for biotech companies in New York City and on Long Island. Before Accelerate Long Island, Mr. Lesko was the three-time elected Supervisor of the Town of Brookhaven, New York State’s second-largest town with a population of 486,000 residents.
Local Businessman Sentenced to 18 Months in Prison and Ordered to Pay $1.5 Million in Restitution for Bank Fraud and Tax EvasionRead the Press Release
Assistant U. S. Attorney Oleksandra Johnson (619) 546-9769
NEWS RELEASE SUMMARY – March 22, 2021
SAN DIEGO – A local business owner was sentenced in federal court today on charges of bank fraud and tax evasion. David Daughtrey, 60, of El Cajon, was sentenced by U.S. District Judge Larry A. Burns to 18 months in custody and ordered to pay restitution of $1,519,590.63.
In July 2020, Daughtrey pleaded guilty to one count of conspiracy to commit bank fraud and tax fraud, and one count of filing a false tax return. Daughtrey’s illegal conduct spanned for a decade, from 2006 until 2016. For several years, Daughtrey evaded income tax by under-reporting his income and orchestrated an illegal scheme to fraudulently obtain a mortgage for his $1.8 million residence using a third party. The total tax loss to the United States in this case was $1,053,989.63.
“The defendant abused our tax and banking systems for his own financial benefit, and the victims of that crime are ethical taxpayers and bank customers,” said Acting U.S. Attorney Randy Grossman. “Today’s sentence will hopefully remind others that there is a high price to pay for such deception.” Grossman thanked prosecutor Oleksandra Johnson and agents from the IRS and FBI for their excellent work on this case.
“While Mr. Daughtrey achieved business success, he failed in his obligations as an American by lying to our banks and cheating the government,” said Special Agent in Charge Ryan L. Korner, IRS Criminal Investigation. “Today’s sentencing shows that we will hold accountable those who deceive and exploit our people and financial institutions because of their greed.”
“The FBI and our partners at the IRS uncovered David Daughtrey's mortgage fraud and tax evasion scheme using our team's financial and fraud expertise,” said FBI Special Agent in Charge Suzanne Turner. “Today's sentencing serves as a warning to those who attempt to personally gain by deliberately cheating the government and the integrity of the banking system through financial fraud. Our team of fraud experts will bring justice in these white-collar cases.”
According to court documents, from July 2006 until April 2016, Daughtrey conspired with others to commit the crimes to which he pleaded guilty. As part of the bank fraud scheme, Daughtrey directed another individual to submit a mortgage application to a national bank to purchase a $1.8 million five-bedroom residence, and to falsely claim that the funds used as down payment belonged to, and the residence would be used by, the third party.
In reality, Daughtrey provided the funds and the home was intended to be Daughtrey’s primary residence. Daughtrey made monthly mortgage payments of approximately $8,000 for his residence but continued to represent to the bank that the third party owned the house. Daughtrey later submitted a false hardship letter on behalf of the third party in an effort to modify the terms of the loan on the home.
Over several years, Daughtrey conspired to commit tax evasion by filing tax returns listing substantially less income than Daughtrey actually earned. Daughtrey’s tax return for the year 2012, for example, omitted at least $498,612 in income. Daughtrey failed to report his total income in tax years 2013, 2014, and 2015, and did not file timely tax returns for subsequent years. Daughtrey agreed to pay $1,053,989.63 in restitution to the IRS, which includes the total tax loss plus penalties and interest.
DEFENDANTS Case Number 20cr2113-LAB
David Daughtrey Age: 60 El Cajon, CA
SUMMARY OF CHARGES
Conspiracy to Commit Bank Fraud and Tax Evasion, 18 U.S.C. § 371 (count 1); and
Making a False Tax Return, 26 U.S.C. § 7206(1) (count 2).
Maximum penalty:
Five years’ imprisonment and $250,000 fine (count 1)
Three years’ imprisonment and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest (count 2)
AGENCY
Federal Bureau of Investigation
Internal Revenue Service
Little Eagle Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Little Eagle, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on March 16, 2021, by U.S. Magistrate Judge William D. Gerdes.
Deon Fast Horse, age 27, was sentenced to 180 days in federal prison, followed by one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Fast Horse was indicted by a federal grand jury on September 9, 2020. He pled guilty on November 2, 2020.
The conviction stemmed from an incident that occurred on May 27, 2020, in McLaughlin, South Dakota. On that date, Fast Horse assaulted his dating partner.
This case was investigated by the Standing Rock Sioux Tribe Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Fast Horse was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department Sues Detroit-Area Tax Preparation Franchisor, Four Others Using Franchise Name, to Stop Alleged Tax FraudRead the Press Release
The United States has filed four civil injunction suits in federal court in the U.S. District Court for the Eastern District of Michigan. The suits seek to enjoin a Detroit-area tax preparation franchisor from owning, operating and franchising tax preparation businesses and to prohibit the franchisor, as well as certain others that have agreements to operate using her business’s name, from preparing tax returns for others. The complaints also request that the court require all defendants to disgorge the return preparation fees they obtained by preparing allegedly false and fraudulent tax returns.
The complaint against Jeanisia Allen alleges that she owns, operates, and franchises a tax return preparation business known as “The Tax Experts” through co-defendants First Choice Tax Solutions LLC, The Tax Experts Inc., The Tax Experts LLC, and Top Notch Taxes Inc. The other three complaints allege that Jennifer Sherman, Erica McGowan, Annetta Powell, and Jasmine Powell have each entered into agreements with Jeanisia Allen and her entity, The Tax Experts LLC, to use the name “The Tax Experts.”
Each of the government’s complaints allege that the defendants and their entities prepare and file tax returns to falsely increase their customers’ refunds, and profit through high and often undisclosed preparation fees at the expense of their customers and the U.S. Treasury. The complaints allege that the defendants engaged in misconduct, including falsely claiming the earned income tax credit; fabricating businesses, business income and expenses, resulting in understated tax liabilities; claiming false education credits; and claiming improper filing statuses. The complaints each allege that defendants’ activities have harmed their customers, who now may be liable for sizable penalties and interest.
According to the complaint against Allen, The Tax Experts has operated at least 32 stores, primarily in metro-Detroit, but also in Chicago and Los Angeles. Over the course of three years (2017, 2018, and 2019), businesses operating as “The Tax Experts” allegedly prepared more than 17,000 federal tax returns claiming over $82 million in tax refunds. The complaint alleges that Allen and The Tax Experts failed to train, oversee and control businesses that operate under an agreement to use that name, including failing to review tax returns prepared at franchise stores, resulting in the preparation of false or fraudulent tax returns exhibiting common and widespread false income, expenses, claims, credits and deductions. According to the complaint against Allen, the IRS examined 716 federal tax returns prepared by The Tax Experts, resulting in a total additional tax owed to the United States of $3,552,114, or an average of $5,349.57 for each adjusted return.
“Particularly during this time of year when honest taxpayers are filing their returns, we want the public to know that, working with our partners at the IRS, the Justice Department will pursue those who would abuse our nation’s tax laws,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Fraudulent tax return preparers too often seek to take advantage of their customers and the U.S. Treasury, undermining our tax system.”
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Settles Investigation into Language Barriers in the Colorado Administrative Court SystemRead the Press Release
The Justice Department today announced it has reached a settlement agreement with the Colorado Office of Administrative Courts (OAC) to help people with limited English proficiency (LEP) access timely and competent language assistance in the court system.
The OAC is an administrative court that hears workers’ compensation claims, as well as claims in other critical areas such as civil rights, environmental justice, education, and transportation. The agreement resolves a Justice Department investigation of the OAC under Title VI of the Civil Rights Act of 1964. Title VI prohibits discrimination on the basis of race, color and national origin by recipients of federal assistance, such as the OAC. The Justice Department’s review uncovered concerns with OAC’s Title VI compliance, including a rule that prohibited the OAC from providing qualified interpreters to help limited English proficient individuals understand and participate in their court proceedings.
“For people with limited English proficiency, not getting the language services they need to participate meaningfully in a court proceeding can have truly devastating consequences," said Pamela S. Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. "We can’t achieve our nation’s promise of access to justice for all without dismantling language barriers in our judicial system. I commend the OAC’s Chief Judge and leadership for taking action to realize this promise and for their commitment to provide critical services for court users with limited English proficiency.”
“This agreement will result in real help for people who seek justice in Colorado’s administrative court system but who don’t speak English,” said Acting U.S. Attorney for the District of Colorado Matt T. Kirsch. “I appreciate that Colorado’s Office of Administrative Courts recognized an opportunity to work with our office and the Civil Rights Division in crafting an agreement that will benefit communities in Colorado that speak languages other than English.”
A key aspect of the OAC’s implementation of the settlement will be a revision to its Rule 21, which will now require the OAC to provide qualified interpreters at no cost to LEP individuals in court proceedings. In addition, the OAC has created a language access policy and plan and agreed to provide notice of language assistance services in at least the top eight languages it encounters. The OAC will create and publicize a language access complaint process, and require annual training on LEP issues for judges, staff, and contractors. The strong support and active participation of the OAC’s Chief Judge and Colorado Office of the Attorney General have been key to the swift and cooperative resolution of this matter.
Under the terms of the agreement signed today, the Justice Department will monitor the OAC’s compliance for two years.
The enforcement of Title VI of the Civil Rights Act of 1964 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Seeks to Shut Down Mississippi Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Mississippi seeking to bar a Mississippi tax return preparer from owning or operating a tax return preparation business and preparing tax returns for others.
The civil complaint was filed against Terance Price, both individually and doing business as Superior Taxes. It alleges that Price knowingly took unreasonable positions on returns he prepared that led to understatements of the tax customers owed or overstatements of the refunds to which they were entitled to receive. In particular, the complaint alleges that Price prepared returns that claimed residential energy credits, fuel tax credits, or unreimbursed employee business expenses that he knew were false. According to the complaint, the IRS has assessed penalties against Price for failing to comply with due diligence requirements that obligate a tax return preparer to make reasonable inquiries to ensure that a customer is legitimately entitled to various tax credits, including the earned income tax credit. The complaint alleges that Price has not paid the penalties incurred for past violations of those due diligence requirements.
The complaint further alleges that Price filed hundreds of tax returns each filing season since 2015, the year in which he began operating his tax preparation business, and that he has filed tax returns using other tax preparers’ personal identifying information. According to the complaint, the potential tax losses from the returns that Price prepared for tax years 2017 and 2018 could exceed $1 million, and actual losses from his activities could surpass that estimate. In addition, the complaint alleges that Price’s conduct harms his customers, who are responsible for these tax deficiencies and, potentially, interest and penalties.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Eagle Butte Man Not Guilty of Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota man was acquitted of Assault with a Dangerous Weapon as a result of a federal jury trial in Pierre, South Dakota, on March 17, 2021.
Joshua Heideman, age 27, was indicted by a federal grand jury on July 16, 2020.
The charge relates to an incident where the Defendant is alleged to have assaulted a 69-year old man with a bar on May 20, 2020, in Dupree. After the jury trial, Heideman was remanded into custody based upon his admission to violating the terms and conditions of his supervised release from a 2017 First Degree Burglary conviction
The investigation was conducted by Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Attorney's Office prosecuted the case.
Judge sentences St. Louis man for drugs and weapons chargesRead the Press Release
ST. LOUIS – United States District Judge Sarah E. Pitlyk sentenced Demarko Nelson to 46 months in prison today. The 23-year-old Berkeley, Missouri resident pleaded guilty, in December, to three counts of being a felon in possession of a firearm and one count of possession with intent to distribute fentanyl.
On March 2, 2020, Nelson ran a stop sign at the intersection of Clara and Etzel Avenues in the City of St. Louis, while driving a Pontiac G6. Officers from the St. Louis Metropolitan Police Department stopped the vehicle. After identifying Nelson, a convicted felon, officers found two handguns. They seized the loaded gun on Nelson’s side of the vehicle and released a purple handgun located on the other side of the vehicle to the registered owner in the passenger seat.
On April 9, 2020, Nelson was riding in his friend’s Dodge Challenger on Interstate 70. Nelson’s friend was driving approximately 100 miles per hour when a tire blew, causing the friend to lose control. The car left the road, ripped through a chain-link fence, struck a streetlight and overturned on Bircher Boulevard in St. Louis. At the hospital, officers found two clear baggies of marijuana and more than $6,000 in the friend’s fanny pack. Back at the scene, an SLMPD accident investigator found a loaded purple handgun near a storm sewer just feet away from the Challenger. The firearm was later confirmed to be the purple gun from the original incident.
On August 20, 2020, the United States Marshals Service apprehended Nelson at his home in St. Louis County. While clearing the house, the U.S. Marshals discovered two bags containing 9.64 grams of fentanyl. U.S. Marshals also found a stolen handgun in Nelson’s bedroom.
The St. Louis Metropolitan Police Department and United States Marshals Service investigated this case. Assistant United States Attorney Zack Bluestone is handling the case.
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Idaho Man Sentenced to Federal Prison for Role in Darknet Drug Distribution SchemeRead the Press Release
PORTLAND, Ore.—A former Boise, Idaho resident was sentenced to federal prison today for his role in a darknet drug distribution scheme, announced Acting U.S. Attorney Scott Erik Asphaug. Kevin Marc Crotteau, 25, was sentenced to one year and one day in prison followed by three years of supervised release.
According to court documents, in July and August 2018, U.S. Customs and Border Protection (CBP) officers intercepted several packages containing MDMA and ketamine shipped from France to Crotteau’s co-conspirator, Brandon Paul Bart, 25, of Portland, at four different Portland addresses. On August 30, 2018, federal agents from Homeland Security Investigations (HSI) and officers from the Portland Police Bureau (PPB) assigned to a federal drug interdiction task force detained Bart after he attempted to retrieve two of the parcels, and executed search warrants on the parcels and Bart’s residence.
Investigators seized approximately eight kilograms of MDMA and two kilograms of ketamine. They determined that the packages had been imported from France to Bart’s addresses by Crotteau. The following day, August 31, 2018, investigators from HSI and PPB traveled to Boise and executed a search warrant at Crotteau’s residence.
Crotteau’s drug trafficking scheme generated significant proceeds. Investigators determined that Crotteau had sold Bitcoin valued at more than $108,000 and deposited the proceeds into a personal bank account. Crotteau used proceeds to purchase a Tesla valued at $136,200. Federal agents seized the Tesla.
On October 3, 2019, Crotteau was charged by criminal information with conspiracy to possess with intent to distribute controlled substances. On August 4, 2020, he pleaded guilty to the same charge.
On June 26, 2019, Bart was charged by criminal information with conspiracy to possess with intent to distribute controlled substances. On August 27, 2019, he pleaded guilty to the same charge. Bart was sentenced to five years’ probation on September 13, 2020.
This case was investigated by the HIDTA Interdiction Task Force comprised of HSI and PPB with assistance from CBP and the Boise Drug Enforcement Administration. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. The Oregon HIDTA program was established by the White House Office of National Drug Control Policy (ONDCP) in June of 1999. In 2015, the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 14 counties and the Warm Springs Indian Reservation. Counties in the HIDTA include Oregon’s Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock and Canyon counties.
Ice Company Fined, Required to Remedy Clean Air Act ViolationsRead the Press Release
PROVIDENCE – J.P. Lillis Enterprises, Inc., D/B/A Cape Cod Ice, a cold storage warehouse and ice manufacturing facility that stores over 10,000 pounds of anhydrous ammonia at its facility on the banks of the Seekonk River, was fined $90,000 an placed on federal probation for three years by a federal court judge in Providence today for repeatedly failing to implement a Risk Management Plan (RMP) to be executed in the event of an accidental release of anhydrous ammonia, an extremely hazardous substance.
The facility, located in an industrial area adjacent to residential area, and in the vicinity of an elementary school, was assessed civil penalties by the Environmental Protection Agency as far back as 2012 for failing to develop and submit an RMP, and since has repeatedly been found to contain equipment in need of repair to avoid a potential release of anhydrous ammonia.
Subsequent inspections by EPA, OSHA, and the East Providence Fire Department found the existence of corrosion on ammonia-carrying pipes and on the facility’s high- pressure ammonia receiver; the failure of corrosion-preventing insulation on the pipes; and inadequate inspection, testing, and maintenance of the ammonia piping and receiver.
Acting United States Attorney Richard B. Myrus and Tyler Amon, Special Agent in Charge of the Environmental Protection Agency Criminal Investigation’s Division Boston Area Office announced today that in addition to a $90,000 fine imposed by U.S. District Court Chief Judge John J. McConnell, Jr., Cape Cod Ice will, within 90 days, engage a qualified independent ammonia refrigeration consultant to conduct an audit that (1) evaluates Cape Cod Ice’s compliance with the Clean Air Act and address deficiencies identified by the EPA, OSHA, and East Providence Fire Department and (2) includes a required maintenance inspection program.
Acting United States Attorney Myrus said, “The United States Attorney’s Office is committed to working with EPA to ensure that companies doing business in Rhode Island fully comply with the Clean Air Act. Exposure to anhydrous ammonia can cause serious health issues. Today’s resolution will help to mitigate the risk of accidental release of ammonia by ensuring that Cape Cod Ice conducts a thorough third-party audit of its ammonia refrigeration system and implements an appropriate Risk Management Plan under the Clean Air Act.”
"Protecting Rhode Island communities from hazardous chemical releases is a priority for EPA" said Tyler Amon, Special Agent in Charge of EPA's Criminal Investigation Division. "Today's sentence emphasizes the importance of companies abiding by Risk Management Plans (RMP), put in place to protect workers, emergency responders and the surrounding residents."
Cape Cod Ice is required to submit to the United States Attorney’s Office and to United States Probation within 30 days of the completion of the audit an action plan to address the findings of the audit and a timeline of completion of actions to be taken by the company.
Background
In January of 2017, EPA sent a letter to Cape Code Ice, urging Cape Cod Ice to ensure compliance with the RMP requirements. In April of 2017, EPA inspected the facility and again observed numerous violations of the RMP and PSM regulations, including the existence of corrosion on ammonia-carrying pipes and on the facility’s high-pressure ammonia receiver, and the failure of corrosion-preventing insulation on the pipes. In June of 2017, EPA also issued an Administrative Compliance Order to Cape Cod Ice.
In May of 2017, the East Providence Fire Department inspected the facility and issued a Notice of Violation finding, among other things, that ammonia piping was rusted and showed signs of excessive corrosion, with areas that had moldy insulation or no insulation; and that the ammonia receiver was corroded. The Fire Department ordered the facility to come into compliance. Cape Cod Ice has submitted reports to the East Providence Fire Department and to EPA indicating that it has taken steps to bring the facility into compliance.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Dianne Chabot, EPA Regional Criminal Enforcement Counsel.
The matter was investigated by the EPA’s Criminal Investigation Division.
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IT Contractor Sentenced to Two Years for Deleting Carlsbad Company’s Microsoft User AccountsRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – March 22, 2021
SAN DIEGO – Deepanshu Kher was sentenced today in federal court to two years in prison for accessing the server of a Carlsbad Company and deleting over 1,200 over the company’s 1,500 Microsoft User Accounts.
According to court documents, Kher was employed by an information technology consulting firm from 2017 through May 2018. In 2017, the consulting firm was hired by the Carlsbad Company to assist with its migration to a Microsoft Office 365 (MS O365) environment. In response, the consulting firm sent its employee, Kher, to the company’s Carlsbad headquarters to assist with the migration.
The company was dissatisfied with Kher’s work and relayed their dissatisfaction to the consulting firm soon after Kher’s arrival. In January 2018, the consulting firm pulled Kher from the company’s headquarters. A few months later, on May 4, 2018, the firm fired Kher, and a month after that, in June 2018, Kher returned to Delhi, India.
On August 8, 2018, two months after his return to India, Kher hacked into the Carlsbad Company’s server and deleted over 1,200 of its 1,500 MS O365 user accounts. The attack affected the bulk of the company’s employees and completely shut down the company for two days. As the company’s Vice President of Information Technology (IT) explained, the impact was felt inside and outside the company. Employees’ accounts were deleted – they could not access their email, their contacts lists, their meeting calendars, their documents, corporate directories, video and audio conferences, and Virtual Teams environment necessary for them to perform their jobs. Outside the company, customers, vendors and consumers were unable to reach company employees (and the employees were unable to reach them). No one could inform these buyers what was going on or when the company would be operational again.
Unfortunately, even after those two days, the problems remained. Employees were not receiving meeting invites or cancellations, employees’ contacts lists could not be completely rebuilt, and affected employees could no longer access folders to which they previously had access. The Carlsbad Company repeatedly handled multitudes of IT problems for three months. The Vice President of IT closed by saying, “[i]n my 30-plus years as an IT professional, I have never been a part of a more difficult and trying work situation.”
In pronouncing the sentence, U.S. District Court Judge Marilyn L. Huff noted that Kher perpetrated a significant and sophisticated attack on the company, an attack which was planned and clearly intended as revenge. In addition to the two years in custody, Judge Huff sentenced Kher to three years’ supervised release and restitution to the Company of $567,084, the amount that the Company paid to fix the problems which Kher caused.
Kher, an Indian national, was arrested when he flew from India to the United States on January 11, 2021, unaware of the outstanding warrant for his arrest.
“This act of sabotage was destructive for this company,” said Acting U.S. Attorney Randy Grossman. “Fortunately, the defendant’s revenge was short-lived and justice has been delivered.” Grossman commended the excellent work of Assistant U.S. Attorney Alexandra F. Foster and the FBI agents on this case.
“The FBI was able to identify, arrest, and prosecute Deepanshu Kher, despite the fact that he committed this harmful hack while outside the United States. This case shows the commitment, expertise, and reach of the FBI in working cyber intrusion cases,” said Suzanne Turner, Special Agent in Charge of FBI's San Diego Field Office. “We encourage companies to develop a relationship with the FBI and local law enforcement prior to a cyber security incident and incorporate us into incident response plans. In this case, the victim company’s swift notification and cooperation with the FBI contributed greatly to the successful outcome. Living in a digital world, it is important to get ahead of the threats, be proactive and predictive in the way we approach cybersecurity.”
If victimized in a cyber security incident, the FBI encourages companies to immediately contact the FBI. Specialized cyber agents will work with companies to protect company information and the personal data of its customers. Please contact the FBI San Diego's cyber program by calling our field office at (858) 320-1800 or submitting tips at Internet Crime Complaint Center (IC3).
DEFENDANTS Case Number 19cr4643-H
Deepanshu Kher Age: 32 Delhi, India
SUMMARY OF CHARGE
Intentional Damage to a Protected Computer (18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i))
Maximum Penalty: Ten years in prison; $250,000 fine.
INVESTIGATING AGENCY
FBI
Huntington Woman Sentenced to 70 Months in Prison for Role in Akron to Huntington Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced today to 70 months in federal prison for her role in a conspiracy responsible for transporting methamphetamine from Akron, Ohio to Huntington where it was distributed.
Mary Beth Cummings, 36, previously pled guilty to conspiracy to distribute 50 grams or more of methamphetamine. Cummings admitted that during May 2019, she participated in a conspiracy with multiple individuals to distribute methamphetamine in the Huntington area. During the conspiracy, Cummings repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. Cummings relied on multiple individuals from Akron to deliver the methamphetamine to her and Cummings would in turn distribute the methamphetamine to various customers in Huntington. Cummings also admitted that she was aware some of her customers also intended to distribute the methamphetamine she provided to them.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00245.
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Huntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today to conspiracy to distribute heroin.
Lynndell Nicola Boling, age 37, admitted that from at least December 2018 to October 15, 2020, she worked with other persons to sell heroin in Huntington. At first, she and another individual would run drugs to customers for their source of supply. Boling was paid with heroin for her own use. Later, she began meeting a drug runner at the Greyhound bus station who was working for her source. The runner would provide approximately 500 grams to 800 grams of heroin to Boling for her and others to sell. On October 15, 2020, members of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a search at Boling’s residence. Law enforcement seized from the residence 300 grams of heroin, worth approximately $40,000, and $17,960 in cash, which was money made from selling heroin. Also seized during the search was a Taurus .380 caliber pistol which had been provided to Boling by her heroin source to protect the heroin and money.
Boling faces a mandatory minimum of 10 years and up to life in prison when she is sentenced on June 21, 2021.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00189.
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Huntington Man Pleads Guilty to Federal Crack Cocaine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to possession with intent to distribute cocaine base, also known as “crack.”
Daniel Legette, 45, admitted that on November 12, 2020, officers with the Huntington Police Department executed a search warrant at Legette’s residence located on Oakland Avenue in Huntington. During the search, officers seized approximately 100 individually wrapped bags of crack cocaine totaling approximately 23 grams. Officers also seized additional quantities of methamphetamine, heroin, and a rifle. Legette admitted that he possessed and intended to distribute all of the drugs seized by police.
Legette faces up to 20 years in federal prison when he is sentenced on June 21, 2021.
United States District Judge Robert C. Chambers presided over the hearing. The Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00007.
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Honduran National Convicted on Drug Trafficking and Weapons ChargesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against GEOVANNY FUENTES RAMIREZ (“FUENTES RAMIREZ”) on all three counts in the Indictment, which included cocaine-importation and weapons charges. FUENTES RAMIREZ is scheduled to be sentenced by the Honorable P. Kevin Castel on June 22, 2021.
Manhattan U.S. Attorney Audrey Strauss said: “Geovanny Fuentes Ramirez was, up until his arrest by the DEA just over a year ago, a ruthless, powerful, and murderous cocaine trafficker in Honduras. He facilitated the shipment of large loads of cocaine by bribing Juan Orlando Hernández Alvarado, then president of the Honduran National Congress and now the Honduran president. Hernández Alvarado instructed Fuentes Ramirez to report directly to convicted co-conspirator and former Honduran congressman Tony Hernandez, the president’s brother. Now Geovanny Fuentes Ramirez, one of the criminal conduits between Honduran officials and drug traffickers, faces a possible life behind bars.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
Beginning in or about 2009, FUENTES RAMIREZ and others established and operated a cocaine laboratory in the Cortés Department of Honduras, where they produced hundreds of kilograms of cocaine each month. FUENTES RAMIREZ worked with others to receive cocaine shipments sent to Honduras over air and maritime routes, and to transport cocaine that he produced at the laboratory. FUENTES RAMIREZ provided security for the facility, and for the transportation of cocaine, using heavily armed workers and Honduran police and military personnel.
On several occasions between approximately 2010 and 2013, FUENTES RAMIREZ helped arrange or directly participated in drug-related violence. In or about 2012, for example, after FUENTES RAMIREZ’s cocaine laboratory was raided by law enforcement, FUENTES RAMIREZ beat and tortured a law enforcement official who FUENTES RAMIREZ believed to have been involved in the investigation of the laboratory. FUENTES RAMIREZ murdered the officer by shooting him in the head with what FUENTES RAMIREZ described as “mercy shots.”
In or about 2013, FUENTES RAMIREZ paid a bribe of at least approximately $25,000 to Honduran president Juan Orlando Hernández Alvarado (“JOH”), who was at the time the president of the Honduran National Congress, and allowed JOH to access millions of dollars’ worth of cocaine from FUENTES RAMIREZ’s laboratory. In connection with negotiations relating to the laboratory, JOH told FUENTES RAMIREZ that he was interested in access to the laboratory because of its proximity to Puerto Cortés, a key shipping port on the northern coast of Honduras. JOH also told FUENTES RAMIREZ that the Honduran armed forces would provide security, and that Óscar Fernando Chinchilla Banegas, the Attorney General of Honduras, would help protect FUENTES RAMIREZ’s drug trafficking activities. JOH instructed FUENTES RAMIREZ to report directly to JOH’s brother, Juan Antonio Hernández Alvarado (“Tony Hernández”), for purposes of their drug trafficking partnership. Finally, JOH told FUENTES RAMIREZ that he wanted to make the DEA think that Honduras was fighting drug trafficking, but that instead he was going to eliminate extradition and “stuff drugs up the gringos’ noses,” referring to flooding the United States with cocaine.
In October 2019, Tony Hernández was convicted of the same offenses as FUENTES RAMIREZ, as well as an additional count of making false statements to the DEA. FUENTES RAMIREZ met with JOH following two key filings in the prosecution of Tony Hernández, as demonstrated by, among other things, data from FUENTES RAMIREZ’s phone reflecting that he twice searched for directions to JOH’s Casa Presidencial in Tegucigalpa, Honduras, after the filings. Tony Hernández is scheduled to be sentenced by Judge Castel on March 30, 2021.
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FUENTES RAMIREZ, 51, was convicted on three counts: (1) conspiring to import cocaine into the United States, which carries a mandatory minimum prison term of 10 years and a maximum prison term of life; (2) using and carrying machine guns during, and possessing machine guns in furtherance of, the cocaine-importation conspiracy, which carries a mandatory consecutive prison term of 30 years; and (3) conspiring to use and carry machine guns during, and to possess machine guns in furtherance of, the cocaine-importation conspiracy, which carries a maximum prison term of life.
Ms. Strauss praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, Matthew J. Laroche, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
Hamblen County Man Convicted of Drug and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On March 19, 2021, a federal jury convicted, Lynn Richard Norton, 61, of Morristown, Tennessee, of conspiracy to distribute more than 50 grams of methamphetamine, distribution of methamphetamine, and possession of a firearm by a convicted felon. As a result of the convictions, the defendant faces a prison sentence of 15 years up to life. The Honorable J. Ronnie Greer, United States District Judge, presided over the trial. Sentencing is scheduled for September 13, 2021.
Beginning in early 2019, according to evidence presented at trial, Norton conspired to distribute more than 50 grams of methamphetamine with James Ward, another defendant who pled guilty to the charge and who testified against Norton. Ward testified he supplied Norton with two to four ounces of methamphetamine per week, and on two occasions, Norton sold Ward methamphetamine. On April 8, 2019, Norton also sold methamphetamine and a Bryco Arms 9 mm pistol to a confidential informant who was working with the Hamblen County Sheriff’s Office. Norton has a number of prior felony convictions, including convictions for drug dealing, aggravated assault, and escape. Based on his record, Norton is considered an armed career criminal under federal law and therefore faces a sentence of 15 years to life.
This was the first federal criminal jury trial completed in Greeneville in the Eastern District of Tennessee since the expiration of the Court’s standing order suspending jury trials due to the COVID-19 pandemic.
Investigating agencies included the Hamblen County Sheriff’s Office, the Johnson City Police Department, the Tennessee Bureau of Investigation, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Assistant U.S. Attorneys Emily Swecker and Mac Heavener represented the United States in court.
This case was part of the High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Former Williamson County Mail Carrier Sentenced for Stealing Rebate ChecksRead the Press Release
Brittany Freeman, 27, of Johnston City, Illinois (Williamson County), was sentenced this week to three years’ probation and a $100 fine and was ordered to pay $704.10 in restitution to her victims. Freeman had earlier pled guilty to theft of mail by a postal service employee.
In February and March, 2020, while working as a mail carrier, Freeman stole over $700 worth of rebate checks sent by Menard’s to customers along her routes. Surveillance cameras at a nearby
Menard’s store captured Freeman using the rebate checks for herself soon after stealing them.
“Any tampering with the U.S. mail system is taken seriously, particularly when postal service employees abuse their position of trust,” U.S. Attorney Steven D. Weinhoeft said.The case was investigated by the United States Postal Service, Office of the Inspector
General. The case was prosecuted by Assistant United States Attorney Peter T. Reed.Former Venezuelan official pleads guilty in connection with international bribery and money laundering schemeRead the Press Release
HOUSTON - A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation has pleaded guilty for his role in laundering millions of dollars in bribes and corruptly providing business advantages.
Citgo is a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA),.
Jose Luis De Jongh Atencio (De Jongh), 48, was the former procurement officer and manager in Citgo’s Special Projects Group. According to court documents, between approximately 2013 and 2019, he accepted over $7 million in bribe payments in exchange for assisting businessmen and related companies in procuring contracts with Citgo. De Jongh also provided them with other business advantages.
Two included Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident.
De Jongh admitted to directing bribe payments from Gonzalez, Farias and others into bank accounts in the names of shell companies he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert.
Gonzalez and Farias also entered guilty pleas in connection with the case.
De Jongh pleaded guilty today to one count of conspiracy to commit money laundering. U.S. District Judge Gray H. Miller accepted the plea and has set sentencing for Aug. 19. At that time, De Jongh faces up to 20 years in prison.
As part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties he purchased with his corrupt proceeds.
To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation into bribery at PDVSA.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.
Assistant U.S. Attorneys (AUSA) Robert S. Johnson and John P. Pearson are prosecuting the case along with Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section. AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
First North Korean National Brought to the United States to Stand Trial for Money Laundering OffensesRead the Press Release
Note: A copy of the indctment can be viewed
here.WASHINGTON – After nearly two years of legal proceedings, Mun Chol Myong (Mun), 55, a national of the Democratic People’s Republic of Korea (DPRK), has been extradited to the United States. This case represents the first ever extradition to the United States of a DPRK national. Mun is accused of laundering money through the U.S. financial system as part of a scheme to provide luxury items to the DPRK.
“The indictment alleges that Mun defrauded banks and laundered money in an effort to evade counter-proliferation sanctions imposed on North Korea by the United States and the United Nations,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. "He is the first North Korean intelligence operative — and the second ever foreign intelligence operative — to have been extradited to the United States for violation of our laws. We will continue to use the long reach of our laws to protect the American people from sanctions evasion and other national security threats.”
“We are pleased that Mun has been extradited and will stand trial for the offenses alleged in the indictment,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia will always be prepared to protect our nation’s financial system and pursue those who violate our laws, regardless of where they might hide.”
“One of the FBI’s biggest counterintelligence challenges is bringing overseas defendants to justice, especially in the case of North Korea,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “Thanks to the FBI’s partnership with foreign authorities, we’re proud to bring Mun Chol Myong to the United States to face justice, and we hope he will be the first of many.”
“It is important to underscore the relevance of this first-ever extradition of a North Korean national,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis field office. “Our Minneapolis agents worked this case closely with international partners highlighting how FBI special agents are persistent and have an international impact wherever they are.”
According to the indictment and other court documents unsealed today, between April 2013 and November 2018, Mun and others conspired to covertly and fraudulently access the U.S. financial system. Mun is alleged to have defrauded U.S. banks and violated both U.S. and United Nations (U.N.) sanctions as part of his money laundering activities in transactions valued at over $1.5 million. The indictment further alleges that Mun was affiliated with the DPRK’s primary intelligence organization, the Reconnaissance General Bureau, which is the subject of U.S. and U.N. sanctions.
Mun has been detained in a foreign country since his arrest by local authorities on May 14, 2019. He made his initial appearance today in federal court in the District of Columbia, where he was indicted on May 2, 2019. Mun faces six counts of money laundering, including conspiracy to commit money laundering.
According to the indictment, Mun and his conspirators went to great lengths to avoid detection of their sanctions-busting operation. They used a web of front companies and bank accounts registered to false names and removed references to the DPRK from international wire transfer and transactional documents. By intentionally concealing that their transactions were for the benefit of DPRK entities, Mun and his conspirators deceived U.S. correspondent banks into processing U.S. dollar transactions for the benefit of DPRK entities, which the correspondent banks would have otherwise not processed.
This investigation was conducted by the FBI’s Minneapolis Field Office and coordinated by the FBI’s Counterintelligence Division. The Department of Justice would also like to thank the U.S. Indo-Pacific Command and the FBI’s Investigative Operations Division for providing analytical support during the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing Mun’s arrest and extradition. The FBI’s Washington Field Office also provided essential support during the extradition process.
Assistant U.S. Attorneys Michael P. Grady and Tejpal S. Chawla of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section, with support from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick, are prosecuting the case.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty beyond a reasonable doubt in a court of law.
Felon Sentenced to Prison for Possessing FirearmRead the Press Release
HUNTINGTON, W.Va. - A Huntington man was sentenced today to 46 months in federal prison for being a felon in possession of a firearm.
Kevin Holmes, Jr., 31, previously pleaded guilty and admitted that on December 22, 2019, an officer with the Huntington Police Department pulled a vehicle over around the intersection of 20th Street and 6th Avenue in Huntington. Holmes was the only person in the vehicle. After determining there were warrants for Holmes arrest, the officer asked Holmes to get out of the vehicle. After a brief foot pursuit, the officer arrested Holmes. While conducting an inventory search of the vehicle, officers found a loaded .357 Magnum revolver. Holmes was prohibited from possessing a firearm under federal law because of a 2015 conviction in Kentucky for trafficking a controlled substance, fleeing police and wanton endangerment.
United States District Judge Robert C. Chambers imposed the sentence. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00017.
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Federal Employee Charged with Unauthorized Representation of Claims Against the GovernmentRead the Press Release
Jackson, Miss. – Megan Mariah Patrick, 36, of Terry, Mississippi, has been charged in a federal indictment with unauthorized representation of claims against the government and false statements to a federal agency, announced Acting United States Attorney Darren J. LaMarca, Special Agent in Charge Dax Robertson with the U.S. Department of Agriculture Office of Inspector General, and Special Agent in Charge Rodregas Owens of the Social Security Administration Office of Inspector General - Atlanta Field Division.
The indictment, handed up by a federal grand jury on March 16, 2021, charges Megan Mariah Patrick, a Rural Development Loan Specialist with the United States Department of Agriculture in Jackson, with three counts of unauthorized representation of claims against the United States, and three counts of false statements to a federal agency.
“Those who disregard the conflict of interest laws and their duty of loyalty to their employer for easy profit at the expense of the taxpayer, will find themselves standing before a court of law to answer for their wrongs,” said Acting U.S. Attorney LaMarca.
According to the indictment, from August 2017 through March 2019, Patrick acted as an attorney, outside her official duties as Rural Development Loan Specialist, to represent claimants before the Social Security Administration seeking increased federal benefits. In each case where she entered her appearance as an attorney representing the claimant before the Social Security Administrative Law Judge, Patrick filed an official form with the Social Security Administration, stating that she was not disqualified or otherwise prohibited as a federal employee from representing the claimant. In fact, as Patrick then knew, such statement was false, because, as an employee of the U.S. Department of Agriculture, she was prohibited by law and regulation from representing claimants against the United States in the Social Security Administration.
Patrick appeared for arraignment on March 22, 2021, before U.S. Magistrate Judge LaKeysha Greer Isaac in Jackson. She was released on conditions of bond pending trial.
If convicted, Patrick faces maximum penalties of 5 years in prison and a $250,000 fine for each count of unauthorized representation, as well as for each count of false statements.
The case has been set for trial on May 3, 2021 before U.S. District Judge Kristi H. Johnson in Jackson.
Acting U.S. Attorney LaMarca commended the work of the Special Agents of the Office of the Inspector General for the U.S. Department of Agriculture and the Office of Inspector General for the Social Security Administration, who investigated the case. The Byram, Mississippi, Police Department assisted with the arrest. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Federal Judge Sentences “Pill Mill” Co-Owner to PrisonRead the Press Release
Acting United States Attorney Richard G. Frohling announced today that on March 18, 2021, Susan Moyer (58), of Milwaukee, the former co-owner and office manager of the “Compassionate Care Clinic” in Milwaukee, was sentenced to one year and one day in federal prison for her role in distribution of Oxycodone.
According to court records, Moyer and her codefendant, Steven Kotsonis, M.D., operated the Compassionate Care Clinic as a “pill mill,” issuing baseless prescriptions for high doses of Oxycodone and other opioids in exchange for cash. According to court filings, Moyer was not a licensed health professional and had no medical training. Despite this, she typically would write out prescriptions, which Kotsonis would sign without actually seeing the individual patient or doing any examination. During an office visit to the Compassionate Care Clinic during the course of the investigation, Moyer was recorded referring to herself as the “Oxy Czar.” According to court filings, at least two patients of the Compassionate Care Clinic overdosed on Oxycodone and died.
Moyer and Kotsonis each pled guilty to felony offenses. In July 2020, Kotsonis also was sentenced to a year and a day in prison.
Acting United States Attorney Frohling stated: “The Department of Justice is committed to using all available tools to stop those involved in fueling the opioid crisis. I commended the hard work and dedication of the investigators, agents, analysts, and attorneys involved in seeking to bring justice to the individuals harmed by the actions of Ms. Moyer and Mr. Kotsonis.”
“The Drug Enforcement Administration (DEA) is committed to identifying and investigating those individuals who use their positions of trust to become drug dealers for personal profit,” said DEA Wisconsin Assistant Special Agent in Charge John McGarry. “This investigation is an example of our resolve to hold those individuals accountable for their actions.”
This case was investigated by the DEA. The case was prosecuted by Assistant United States Attorney Laura S. Kwaterski.
Information and resources concerning the opioid crisis and the DEA’s “360 Strategy” for addressing the crisis may be found at the DEA’s website, www.dea.gov
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
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El Departamento de Justicia Resuelve Investigación Sobre las Barreras del Idioma en el Sistema Judicial Administrativo de ColoradoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con la Oficina de Tribunales Administrativos de Colorado (OAC, por sus siglas en inglés) para ayudar a las personas con dominio limitado del inglés (LEP, por sus siglas en inglés) a acceder a asistencia lingüística oportuna y competente en el sistema judicial.
La OAC es un tribunal administrativo que atiende las reclamaciones de indemnización laboral, así como las reclamaciones en otras áreas críticas como los derechos civiles, la justicia ambiental, la educación y el transporte. El acuerdo resuelve una investigación del Departamento de Justicia de la OAC bajo el Título VI de la ley de Derechos Civiles de 1964. El Título VI prohíbe la discriminación por motivos de raza, color de piel y origen nacional por parte de las entidades beneficiarias de asistencia federal, como la OAC. La revisión del Departamento de Justicia descubrió inquietudes con el cumplimiento del Título VI de parte de la OAC, incluida una regla que prohibía a la OAC proporcionar intérpretes calificados para ayudar a las personas con dominio limitado del inglés a comprender y participar en sus procedimientos judiciales.
“Para las personas con dominio limitado del inglés, el no recibir los servicios lingüísticos que necesitan para participar de manera significativa en un procedimiento judicial puede tener consecuencias realmente devastadoras. No podemos cumplir la promesa de nuestra Nación de acceso a la justicia para todos sin desmantelar las barreras del idioma en nuestro sistema judicial”, señaló Pamela S. Karlan, fiscal general auxiliar adjunta principal de la División de Derechos Civiles. “Felicito al juez presidente y al liderazgo de la OAC por tomar medidas para cumplir esta promesa y por su compromiso de brindar servicios críticos para los usuarios de los tribunales con un dominio limitado del inglés.”
“Este acuerdo redundará en una ayuda real para las personas que buscan justicia en el sistema de tribunales administrativos de Colorado pero que no hablan inglés”, comentó el fiscal federal interino para el Distrito de Colorado Matt Kirsch. “Agradezco que la Oficina de Tribunales Administrativos de Colorado haya reconocido la oportunidad de trabajar con nuestra oficina y la División de Derechos Civiles en la elaboración de un acuerdo que beneficiará a las comunidades de Colorado que hablan otros idiomas que no son el inglés.”
Un aspecto clave de la implementación del acuerdo por parte de la OAC será una revisión de su Regla 21, que ahora exigirá que la OAC proporcione intérpretes calificados sin costo para las personas LEP en los procedimientos judiciales. Además, la OAC ha creado una política y un plan de acceso lingüístico, y ha acordado notificar los servicios de asistencia lingüística en al menos los ocho idiomas principales con que se encuentra. La OAC creará y publicará un proceso de quejas de acceso lingüístico y exigirá la capacitación anual sobre cuestiones de LEP para jueces, personal y contratistas. El fuerte apoyo y la participación activa del juez presidente de la OAC y la Fiscalía General de Colorado han sido clave para la resolución rápida y cooperativa de este asunto.
Según los términos del acuerdo firmado hoy, el Departamento de Justicia supervisará el cumplimiento de la OAC durante dos años.
La aplicación del Título VI de la ley de Derechos Civiles de 1964 es una de las principales prioridades de la División de Derechos Civiles. Hay disponible más información sobre la División de Derechos Civiles en su sitio web en https://www.justice.gov/crt-espanol, y la información sobre el dominio limitado del inglés y el Título VI está disponible en www.lep.gov/SPA. Los miembros del público pueden reportar posibles violaciones de los derechos civiles en https://civilrights.justice.gov/report/.
East Alton Woman Charged with Stealing Disabled Daughter's Social Security FundsRead the Press Release
A federal grand jury in East St. Louis, Illinois, has returned a 21-count indictment charging
Melissa D. Wasylak, 48, of East Alton, with stealing Supplemental Security Income (“SSI”) funds that were intended for her disabled daughter. The indictment also charges Wasylak with wire fraud and making false statements on forms submitted to the Social Security Administration (“SSA”).
The SSA administers the SSI program, which provides a minimum level of income to aged, blind, and disabled individuals with limited resources. For disabled children, SSI benefits are paid to a representative payee, who is responsible for handling the funds and reporting to the SSA. Federal law requires that all SSI funds must be used for the benefit of the disabled child.Wasylak applied for her disabled daughter to receive SSI benefits and was appointed as her daughter’s representative payee. According to the indictment, in 2008, Wasylak’s daughter stopped living with her and went to live with Wasylak’s ex-husband. Despite this fact, Wasylak continued to receive her daughter’s SSI funds. The indictment charges that Wasylak did not use those funds for her daughter’s expenses, but instead used the SSI money to pay her own personal expenses. This allegedly continued until the situation was reported to the SSA in May of 2019.
Wire fraud is punishable by up to 20 years in prison. The maximum punishment for theft of government funds is 10 years’ imprisonment. Making a false statement on a Social Security form carries a five-year statutory maximum term of imprisonment. Each of the charges comes with a possible fine of up to $250,000, and Wasylak could also be ordered to pay restitution.
An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Wasylak is scheduled to be arraigned by United States Magistrate Judge Gilbert C. Sison on Monday, April 5, 2021, at 10:00 a.m., at the federal courthouse in East St. Louis.
The investigation was conducted by the SSA – Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Dominican Republic Native Faces up to 40 Years in Prison After Pleading Guilty to Drug ChargeRead 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 Elison A. Ledesma-Melo a/k/a Carlos Rivera Perez a/k/a Ostin M. Echevarria-Roman, 46, a native of the Dominican Republic, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that in August 2018, the Drug Enforcement Administration began investigating the drug trafficking activities of the defendant who was a retail distributor of heroin in the Buffalo area. Ledesma-Melo traveled to the New York, NY, area to obtain heroin which he then brought back to Buffalo for distribution. On September 11, 2019, investigators conducted surveillance of the defendant’s vehicle as it traveled between the Buffalo area and the New York area. A traffic stop of Ledesma-Melo’s vehicle was conducted on Route 20A in Warsaw, NY. The defendant produced a Puerto Rico driver’s license in the name of Ostin M. Echevarria-Roman with a March 1972 birthdate. Following a brief roadside conversation, during which Ledesma-Melo provided false information and exhibited unusual behavior, a New York State Trooper searched the vehicle. A K-9 narcotics detection dog was also brought to the scene to assist in the search. The K-9 made a positive indication for the presence of narcotics in the rear seat/hatch area. A follow-up search of that area resulted in the recovery of a plastic bag which contained in excess of 100 grams of suspected heroin. Ledesma-Melo was taken into custody.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for July 15, 2021, before Judge Sinatra.# # # #
Davenport Man Sentenced to Prison for Gun OffenseRead the Press Release
DAVENPORT, Iowa — On Thursday, March 18, 2021, United States District Court Chief Judge John A. Jarvey sentenced Isaiah Michael McAllister, age 22, of Davenport, to 37 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Following his prison term, McAllister was ordered to serve three years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
Police encountered McAllister after he was involved in a verbal confrontation and possessed a gun. McAllister ran from the police and attempted to hide the loaded firearm in the common area of an apartment complex where children were playing. McAllister is a member of the MMG street gang.
This matter was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Wednesday, March 17, 2021, United States District Court Chief Judge John A. Jarvey sentenced Alexander Jamica Hubbard, age 40, of Davenport, to 180 months in prison for Possession with Intent to Distribute Marijuana and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Following his imprisonment, Hubbard was ordered to serve three years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began in early 2019 when law enforcement received information that Hubbard was selling marijuana and possessed stolen firearms. On December 30, 2019, law enforcement conducted a search warrant at Hubbard’s residence in Davenport and seized 6,362.05 grams of marijuana and hemp; a loaded .380 caliber firearm; $20,100 in U.S. currency; a 2005 Cadillac Escalade; and a 2012 Jaguar Portfolio XJ. As a convicted felon, Hubbard was prohibited from possessing a firearm.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Federal Prison for EscapeRead the Press Release
DAVENPORT, Iowa — On Wednesday, March 17, 2021, United States District Court Chief Judge John A. Jarvey sentenced Cordell McDowell, age 32, of Davenport, to two years in prison for escape announced Acting United States Attorney Richard D. Westphal. Following his prison term, McDowell was ordered to serve three years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
The charge arose in 2020 after McDowell failed to report to the residential reentry center in Davenport to serve the remainder of his prison sentence. McDowell’s whereabouts were unknown for approximately four months until he was arrested in relation to his involvement in a murder/robbery investigation. McDowell has a history of non-compliance with supervision and a prior federal conviction for escape.
This matter was investigated by the United States Marshals Service. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Couple Charged with Firearms Offenses after Standoff in Hotel Reveals Cache of Firearms and AmmunitionRead the Press Release
NEWARK, N.J. – A husband and wife were arrested on weapons charges after a standoff at a Hudson County hotel, Acting U.S. Attorney Rachael A. Honig announced.
Rahim Harris, 42, of Maplewood, New Jersey, is charged by complaint with one count of possession of firearms and ammunition by a convicted felon. His wife, Haneefha White, 39, of Pottsville, Pennsylvania, is charged by complaint with aiding and abetting the possession of firearms and ammunition by a convicted felon. They will have their initial appearances by videoconference at a date to be determined.
According to documents filed in this case and statements made in court:
On Dec. 21, 2019, Harris was charged by complaint with weapons and aggravated assault offenses allegedly committed on that date. On March 14, 2021, law enforcement received information indicating that Harris was in a specific room at a hotel in Secaucus, New Jersey. Law enforcement officers responded to the hotel a few hours later to attempt to locate and arrest Harris, who was identified from a photograph as the person staying in the specific hotel room.
Officers observed Harris’ wife entering the room. They attempted to summon White while she was in the hallway, but she entered the room and closed the door. White then called the front desk and asked why police were in the hallway. Law enforcement officers spoke with White on the telephone to persuade her to come out. She indicated there were other individuals in the room and that they were “on edge” and had firearms and hand grenades.
After several hours of unsuccessful negotiations with White, law enforcement called the room and Harris picked up the phone. Harris stated that he did not want to come out because of the arrest warrant and that he was “prepared for war” and “ready to die.”
In the early hours of March 15, 2021, Harris and White (who were the only occupants of the room) surrendered. A lawful search of the room yielded numerous weapons, fraudulent identification papers, bank cards, $36,910 in cash and a vehicle registration.
Each of the charges carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
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 ensured 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/projectguardian
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to the charges. She also thanked the Hudson County Prosecutor’s Office; the Secaucus Police Department; the Hudson County Regional SWAT Team; the Hudson County Sheriff’s Office; the Jersey City Police Department Bomb Squad; and the New Jersey Transit Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Columbus man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Malcom X. Lewis, of Columbus, Ohio, has admitted to a methamphetamine charge, Acting United States Attorney Randolph J. Bernard announced.
Lewis, 28, pled guilty to one count of “Distribution of Methamphetamine.” Lewis admitted to selling methamphetamine in January 2020 in Marshall County.
Lewis 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Columbia Man Sentenced to More Than 8 Years in Federal Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Ra’Quan Rasheen Williams, 24, of Columbia, was sentenced to more than eight years in federal prison, after pleading guilty in September 2020 to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on March 8, 2019, Columbia Police Department officers were conducting a property check at an apartment complex on Alcott Drive in Columbia. Officers saw Williams and two other individuals near a car in the apartment complex parking lot. The officers smelled marijuana coming from the area where the car was parked and approached Willliams and the others to investigate further. During a pat down search of Williams, one officer felt a firearm in Williams’ waistband. Williams immediately began running from the scene and dropped a 9mm pistol which was recovered by officers on the scene. Williams was eventually apprehended after a short chase through the apartment complex. The 9mm pistol that Williams dropped was loaded with 17 rounds of ammunition in a large capacity magazine. Williams was also found with a quantity of heroin after his arrest.
Williams was prohibited from possessing a firearm or ammunition based on several prior state convictions. Williams was under community supervision at the time of his arrest, after serving a five-year prison sentence for a 2014 conviction of assault and battery of a high and aggravated nature during an incident in which an individual was shot. In 2015, Williams was convicted of burglary that included the theft of guns from a residence. Williams was also convicted in 2018 of carrying or concealing a weapon while he was an inmate at the Lee Correctional Institution in Bishopville.
Senior United States Judge Terry L. Wooten sentenced Williams to 100 months imprisonment for the felon in possession of a firearm and ammunition charge, to be followed by a three-year term of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant United States Attorney Christopher D. Taylor of the Columbia office 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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Colorado Man Charged with Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Canon City, Colorado, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Jeremiah Edward Haning, age 38, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 18, 2020, Haning, who had previously been convicted of a crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a Taurus .38 Special caliber revolver, which had been previously shipped and transported in interstate and foreign commerce.
The charge is merely an accusation and Haning is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Alcohol, Tobacco, Firearms, and Explosives and the South Dakota Highway Patrol. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Haning was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 25, 2021.
Chittenden County Man Linked to Shooting Charged with Possessing over Eight Ounces of Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Loren Senna, 37, of Burlington, Vermont, was arrested on Friday evening and has been charged by federal complaint with possessing with intent to distribute 28 grams or more of a mixture or substance containing cocaine base. Senna is scheduled to appear remotely this afternoon for an initial appearance before the Hon. Kevin J. Doyle, United States Magistrate Judge.
According to the complaint filed this morning, on Friday evening, officers with the South Burlington Police Department were assisting in the investigation of a Burlington shooting when they conducted a traffic stop of a white Dodge Ram being driven by Senna. The officers observed a large quantity of what appeared to be drugs on the driver’s floorboard, which was later determined to be approximately 230 grams of suspected cocaine base, or approximately 8 ounces. A search of Senna resulted in the seizure of $5,812 and a 9mm bullet. A search of Senna’s backpack resulted in the discovery of a 9mm firearm. Investigators have preliminarily linked Senna to a white Jeep from which multiple gunshots were discharged earlier Friday evening near Murray Street and Allen Street in Burlington.
The United States Attorney emphasizes that the charge against Senna is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, Senna could face up to forty years in prison, a mandatory minimum of five years in prison, up to a $5,000,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Senna’s personal history and characteristics.
AUSA Nicole P. Cate is prosecuting the case for the government. Senna is represented by the Federal Public Defender’s office.
Casa Grande Man Sentenced to 108 Months for Multiple AssaultsRead the Press Release
PHOENIX, Ariz. – Last week, Leon Arron Nopah, 31, of Casa Grande, Arizona, was sentenced by United States District Judge Douglas L. Rayes to 108 months in federal prison. On December 2, 2020, Nopah pleaded guilty to Assault with a Dangerous Weapon, Possession of a Firearm in Furtherance of a Crime of Violence, and Assault Resulting in Serious Bodily Injury. The sentence includes a term of 102 months in prison for the three offenses and a consecutive six-month term for violating supervised release in CR-15-1186-PCT-DLR. Nopah’s prison sentence will be followed by a three-year term of supervised release.
Between October 1, 2017, and November 19, 2017, Nopah intentionally assaulted his then-girlfriend by pressing a loaded pistol into the side of her head, causing extreme pain and leaving a visible indentation in her temple. The victim’s young child was present during the incident.
On July 20, 2018, Nopah intentionally assaulted a different girlfriend by striking her head and biting her hand and ear, resulting in serious bodily injuries. This victim’s minor children were also present during the assault.
Nopah and the two victims are enrolled members of the Colorado River Indian Tribe.
The Bureau of Indian Affairs – Office of Justice Services and the Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-0021-PCT-DLR; CR-15-1186-PCT-DLR
RELEASE NUMBER: 2021-015_NopahBurlington Man Sentenced to Prison for Methamphetamine OffenseRead the Press Release
DAVENPORT, Iowa — On Wednesday, March 17, 2021, United States District Court Chief Judge John A. Jarvey sentenced Lavelle Harris, age 36, of Burlington, to 262 months in prison for Conspiracy to Distribute Methamphetamine announced Acting United States Attorney Richard D. Westphal. Following his prison term, Harris was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
Harris was involved in the distribution of more than 4.5 kilograms of ice methamphetamine. Harris has a history of violence and was designated as a career offender under the United States Sentencing Guidelines, as he has two prior felony drug convictions. Harris was also under criminal justice supervision at the time of this offense. The defendant was identified as a member of the Black P Stones street gang. Harris was one of eight defendants who faced federal charges in the Southern District of Iowa after a multi-year joint federal and state narcotics investigation which culminated in the execution of several search warrants in various locations, including several in Burlington, on November 19, 2020.
This investigation was conducted by the Federal Bureau of Investigation; Southeast Iowa Narcotics Taskforce; Burlington Police Department; Des Moines County Sheriff’s Office; West Central Illinois Taskforce; Quincy, Illinois, Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County Sheriff’s Office; Mt. Pleasant Police Department; West Burlington Police Department; Keokuk Police Department; Ft. Madison Police Department; Lee County Sheriff’s Office; Iowa City Police Department; Johnson County Sheriff’s Office; North Liberty Police Department; Coralville Police Department; Muscatine County Sheriff’s Office; Louisa County Sheriff’s Office; Washington County Sheriff’s Office; Bettendorf Police Department; Illinois State Police; Monmouth, Illinois, Police Department; Macomb, Illinois, Police Department; Galesburg, Illinois, Police Department; Adams County, Illinois, Sheriff’s Office; and Fulton County, Illinois, Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods, 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.
Buffalo Woman Arrested and Charged with Stealing Unemployment Benefits; Used Money to Pay for Plastic SurgeryRead 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 Shaneesha White, 25, of Buffalo, NY, was arrested and charged by criminal complaint with theft of government funds, fraud associated with disaster relief, and wire fraud. The charges carry a maximum penalty of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that in October 2020, the U.S. Department of Labor received information from the New York State Department of Labor that a federal prisoner was illegally receiving NYS unemployment insurance benefit payments. Subsequent investigation determined that the IP address associated with the unemployment claim was also associated with multiple other claims, including the defendant Shaneesha White. According to the complaint, a total of $48,833.15 was deposited onto Key Bank debit cards controlled by the defendant. The debit cards were in the name of White, and two others. The complaint further states that the defendant used the unemployment benefits to pay for various expenses including a trip to Florida, cosmetic surgery, footwear, and cosmetics.
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. It expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for benefits. The CARES Act provided for three new UI programs: Pandemic Unemployment Assistance (PUA); Federal Pandemic Unemployment Compensation (FPUC); and Pandemic Emergency Unemployment Compensation (PEUC).
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on conditions.
The complaint is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region; the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent-in-Charge Todd Dennis; and the Social Security Administration, Office of Inspector General, under the direction of Special Agent-in-Charge John F. Grasso.
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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Brownsville man admits guilt and forfeits $2.5M in real estateRead the Press Release
McALLEN, Texas – A 54-year-old man has entered a guilty plea to conspiracy to defraud the United States and aiding and abetting the failure to file a form 8300, announced Acting U.S. Attorney Jennifer B. Lowery.
Jesus Juraidini admitted to paying over $2.5 million to Delfino Gaona in connection with the purchase and/or construction of at least six residential and commercial properties. Gaona, 48, Mission, was doing business as Keystone Construction and DG & GG Investments LLC.
Juraidini admitted he and Gaona conspired to avoid currency reporting requirements from approximately January 2010 through at least Nov. 14, 2018. Juraidini admitted he knew that under federal law, a non-financial trade or business such as the businesses Gaona operated must file a notice with the Secretary of the Treasury for the receipt of $10,000 in currency in one transaction, known as an IRS Form 8300.
Juraidini knew Gaona was not going to file the required document. A review of records confirmed that Gaona nor his business entities filed the proper form documenting the cash proceeds.
As part of his plea agreement, Juraidini also agreed to a money judgment in the amount of $2,519,000 and forfeiture of 10 properties in Hidalgo County.
U.S. District Judge Randy Crane will impose sentencing June 3. At that time. Juraidini faces up to five years in prison. He is set for a bond hearing before U.S. Magistrate Judge J. Scott Hacker today at 3 p.m.
Gaona previously pleaded guilty and is pending sentencing before U.S. District Judge Micaela Alvarez June 24.
The FBI conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorneys Roberto Lopez Jr. and Rick Blaylock Jr. are prosecuting the case.