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Friday 29 January 2021
New Windsor Tax Preparer Sentenced in White Plains Federal Court to 6 Months in Prison for Filing False Tax ReturnsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that EVERSLEY BARRETT, a tax preparer and owner of a tax preparation business named Eversley Tax, in New Windsor, New York, was sentenced yesterday in White Plains federal court to six months in prison after previously pleading guilty to 16 counts of an 84-count Indictment. The Indictment charged him with preparing false and fraudulent individual income tax returns for his clients and himself, and tax evasion. BARRETT was sentenced by United States District Judge Vincent Briccetti.
U.S. Attorney Strauss said: “Eversley Barrett abused his position of trust as a tax preparer by filing false tax returns on behalf of his clients and himself. He caused over half a million dollars in losses to the IRS, all for his own unjust enrichment. Mr. Barrett’s sentence sends a message that dishonest practices by tax preparers will be justly punished.”
In imposing sentence, Judge Briccetti observed that a term of imprisonment was important because of the seriousness of BARRETT’s crimes and the need to promote deterrence in tax cases.
BARRETT included, among other things, tens of thousands of dollars of false and fraudulent deductions for business expenses and gifts to charity on tax returns he prepared for himself and his clients. BARRETT also failed to report on his own personal tax returns over $300,000 in receipts that he received for his tax preparation services from 2012 through 2015.
As confirmed by IRS audits as well as BARRETT’s admissions at his guilty plea hearing, BARRETT’s crimes resulted in a loss to the IRS of more than $500,000.
In addition to the prison term, BARRETT was also sentenced to three years of supervised release, including an obligation to pay the IRS over $573,000 in back taxes, interest and penalties.
Ms. Strauss praised the investigative work of the Internal Revenue Service, Criminal Investigation, and thanked the IRS for its assistance.
This matter is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Margery Feinzig is in charge of the prosecution.
Nebraska Man Sentenced to 235 Months in PrisonRead the Press Release
FORT WAYNE—Tracy Lloyd, 48, of Omaha, Nebraska, was sentenced before United States District Court Judge Holly A. Brady upon his plea of guilty to two counts of Robbery Affecting Interstate Commerce and one count of Armed Bank Robbery, announced Acting United States Attorney Gary T. Bell.
Mr. Lloyd was sentenced to 235 months in prison, followed by 3 years of supervised release. He was also ordered to pay restitution in the amount of $1,087.00.
According to documents filed in the case, Mr. Lloyd robbed Family Dollar on January 11, 2017; First Source bank on June 13, 2017; and a Hampton Inn hotel on June 17, 2017. Mr. Lloyd has agreed to pay restitution for these robberies and four other robberies committed by him.
This case was investigated by the Federal Bureau of Investigation, Fort Wayne Police Department, New Haven Police Department, and the Indianapolis Metropolitan Police Department.
pThis case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
NOPD Detective and NOPD Police Officer Among Seven Indicted for Stealing More Than $100,000 from the United States Army by Claiming Reimbursement for Military Funeral Honors Ceremonies That Never OccurredRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced on Friday a seven-count indictment charging New Orleans Police Detective CHANTELLE DAVIS, New Orleans Police Officer LYNEA SANDERS, and five other former United States Army reservists with stealing more than $100,000 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened.
The National Defense Authorization Act of 2000 authorizes military funeral honors for active duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
According to today’s indictment, CHRISTOPHER O’CONNOR, a former Army pay technician, submitted fraudulent reimbursement requests for military funeral honors that O’CONNOR, CHANTELLE DAVIS, LYNEA SANDERS, LEROY DANIELS, Jr., DERRICK BRANCH, CODY FRANCIS, and TERRANCE HOWARD allegedly performed but had not.
According to the indictment, O’CONNOR, age 40, stole approximately $18,825.83 in Department of the Army funds, BRANCH, age 36, stole approximately $15,469.30, DANIELS, age 45, stole approximately $11,693.87, DAVIS, age 35, stole approximately $8,399.65, FRANCIS, age 31, stole approximately $11,378.27, HOWARD, age 54, stole approximately $13,585.92, and SANDERS, age 41, stole approximately $22,505.35. All the defendants are former Army reservists in the 377th Theater Sustainment Command, New Orleans. Each is a resident of New Orleans other than DANIELS who lives in Westwego, LA.
If convicted of conspiring to commit theft of government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641, each defendant faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment. The United States is seeking full restitution of all the stolen money, approximately $101,858.19.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Army Criminal Investigation Command, including Special Agents John Hiniker, Jeffrey Riedeman, and Denny Richter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
NDTX Round-Up: January 22-28Read the Press Release
GUILTY PLEA – KALYA EVETTE ODOM
On January 21, Kayla Evette Odom, 46, plead guilty to wire fraud. Odom is the former director of human resources for a business in the Northern District of Texas. As part of her duties, Odom was responsible for reviewing and approving invoices for human resources services. Odom set up a human resources vendor business, owned and controlled by herself, in her company’s accounts payable system. She created and submitted approximately 38 fraudulent invoices for various human resources services. Odom faces up to 20 years in federal prison for her crimes. This case was investigated by the FBI. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
GUILTY PLEA – LUIS HUMBERTO RODRIGUEZ
On January 26, Luis Humberto Rodriguez, 28, plead guilty to production of child pornography and transportation of child pornography. HSI executed a search warrant at a residence in Olympia, Washington in connection to the distribution of child pornography. During analysis of the seized devices, law enforcement uncovered a social media account linked to Rodriguez in which he shared child pornography. Based on this information, HSI agents executed a search warrant at Rodriguez’s Dallas home. Rodriguez advised agents that he was in possession of a 20 gigabytes of child pornography. He further admitted to sexually abusing a 7-year-old on multiple occasions. Rodriguez faces up to 50 years in federal prison for his crimes. This case was investigated by HSI. Assistant U.S. Attorney Camille Sparks is prosecuting the case.
GUILTY PLEA – TAMMY LOUISE CRAWFORD
On January 26, Tammy Louise Crawford, 51, plead guilty to possession with the intent to distribute a controlled substance. Crawford possessed methamphetamine at her residence in Dallas, Texas. For protecting her drug business, she also possessed eight firearms. Crawford faces up to 20 years in federal prison for her crimes. This case was investigated by the Texas Department of Public Safety and Dallas Police Department. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
GUILTY PLEA – ARMANDO RAMIREZ-HERNANDEZ
On January 26, Armando Ramirez-Hernandez, 27, plead guilty to distribution of a visual depiction of a minor engaged in sexually explicit conduct. Law enforcement executed a search warrant at Ramirez-Hernandez’s residence in Seagoville, Texas in relation to a child pornography investigation. A number of digital devices were seized inside the home including two cell phones and a computer. A forensic examination of the devices revealed the presence of social media chat communications. Ramirez-Hernandez admitted to transmitting several image files containing child pornography. At the time he distributed the child pornography, he also possessed 2,786 images and videos of child pornography. Ramirez-Hernandez faces up to 20 years in federal prison for his crimes. This case was investigated by HSI. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Mississippi Man Sentenced to 11 Years for Cocaine and Money Laundering ConspiraciesRead the Press Release
Another member of a multi-state drug ring will be spending the rest of the decade behind
bars. Lendarious Hayes, 24, of Meridian, Mississippi, has been sentenced to 135 months (11 years
and 3 months) in federal prison for conspiracy to distribute cocaine and money laundering
conspiracy. Hayes (a.k.a. “Lil Daddy”) was one of 13 defendants named in a 13-count third
superseding indictment returned by an East St. Louis grand jury in October 2019. One year later,
he pled guilty to the two charges in which he was named.
The charged conspiracy to distribute cocaine took place from 2014 through 2018 and
involved the distribution of cocaine between East St. Louis, Illinois; Houston, Texas; Memphis,
Tennessee; Jackson, Mississippi; and other locations. In furtherance of the conspiracy, Hayes
personally distributed at least 32 kilograms of cocaine throughout the country. Other couriers
assisted in the distribution of cocaine for the same organization, totaling at least 360 kilograms of
cocaine. Hayes was also charged with participating in a money laundering conspiracy, in which
he directed the deposit and withdrawal of thousands of dollars of drug proceeds into a coconspirator’s
bank account, in order to disguise the nature of those funds.
The case against Hayes began in February 2019, when an earlier indictment charged him
with just one count of participating in the cocaine distribution conspiracy. While out on bond,
Hayes subsequently traveled without court permission to Houston, Texas, and later Lafayette,
Louisiana, where he was arrested and charged with possession of a controlled substance in October
2019. Later that month, the money laundering conspiracy charge was added. Hayes was eventually
brought back to the district by the U.S. Marshals Service in March 2020 and has been in federal
custody ever since.
Hayes was just one of 13 defendants named in the third superseding indictment. Many of
his co-defendants were also charged with distributing “ice,” which is a highly pure form of
methamphetamine. Eight co-defendants have already pleaded guilty, with four of them receiving
prison sentences of more than 10 years.
Members of the public are reminded that an indictment is merely an accusation, and all
defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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When his prison sentence is finished, Hayes will serve a 5-year term of supervised release.
He was also ordered to pay a $200 fine.
This prosecution 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.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue
Service, the United States Postal Inspection Service, the Illinois State Police, and other law
enforcement agencies.
Mexican woman arrested for harboring aliens in LaredoRead the Press Release
LAREDO, Texas – A 43-year-old Mexican national who illegally resided in Laredo has been charged with harboring undocumented aliens at her residence and conspiracy to do so, announced U.S. Attorney Ryan K. Patrick.
Maria San Juana de Hoyos is set to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m. today. Law enforcement took her into custody Jan. 27.
The criminal complaint alleges that authorities had believed de Hoyos was operating a stash house for undocumented aliens at her residence on the 3800 block of Alexandra Court in Laredo.
Law enforcement later conducted a search and found 10 individuals hiding inside the residence, according to the charges. The investigation revealed all were Mexican nationals illegally present in the United States.
If convicted, de Hoyos faces up to 20 years in federal prison.
Immigration and Customs Enforcement Homeland Security Investigations, Border Patrol and Webb County Constable’s Office conducted the investigation.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
McFarland Man Sentenced to over 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Eduardo Leon, 30, of McFarland, was sentenced today by U.S. District Judge Dale A. Drozd to three years and four months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
On June 26, 2019, Leon, a convicted felon prohibited by law from possessing a firearm, possessed four machine gun conversion devices, which he had previously ordered online. Machine gun conversion devices are designed to convert semi‑automatic pistols to fire in fully automatic mode and are illegal in the United States.
This case was the product of an investigation by the Customs and Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Martin County Resident Detained on Charges of Child ExploitationRead the Press Release
Miami, Florida – Today, Nikolas Cook, 22, of Stuart, Florida, appeared in federal court and was ordered detained pending trial on charges of using a three-year old girl to produce child pornography and then distributing the images in an internet chat room. Cook is also charged with possessing of child pornography.
According to the allegations in the criminal complaint affidavit, on September 10, 2020, Cook was in a social media chat room used by individuals interested in child sexual abuse material. While participating in the group chat, Cook, while using a pseudonym, distributed multiple pornographic images of a three-year-old girl. FBI learned of the activity and investigated. Within hours, FBI determined Cook’s real identity and residential address and arrested him. During a search of Cook’s residence, agents located a cell phone containing multiple sexually explicit images and videos of minor children being sexually abused.
During a hearing today in federal magistrate court in Ft. Pierce, Cooke was ordered detained pending trial. His arraignment date is set for February 12.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
FBI Miami investigated this case, with assistance from the Martin County Sheriff’s Office. Assistant U.S. Attorney Daniel E. Funk is prosecuting the case.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
You may find related court documents and information 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 20-058-SMM.
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Manchester Man Pleads Guilty to Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
CONCORD - Joseph Taylor, 31, of Manchester, pleaded guilty in federal court on Thursday to possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 9, 2020, Manchester police officers stopped a car operated by Taylor after observing suspected drug activity and a motor vehicle violation. Taylor agreed to speak with the detectives outside the car. The detectives asked Taylor if he had anything illegal on him and he said he did not. After he consented to a search of his person and car, detectives found over $1,800 and a loaded 9mm handgun hidden in an area behind the glove compartment. Detectives later learned the firearm was stolen.
Taylor admitted he was a convicted felon and that he had the firearm for protection. He explained it was hidden because he knew he could not possess a firearm as a convicted felon.
Taylor is scheduled to be sentenced on May 5, 2021.
“In order to reduce crime and maintain public safety, federal law prohibits convicted felons from possessing firearms,” said U.S. Attorney Murray. “Through Project Safe Neighborhoods, we are working with our law enforcement partners to identify armed criminals and bring them to justice in federal court.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man from La Mesa charged with derailing train in southern New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Luis Angel Rodriguez, 27, of La Mesa, New Mexico, made his initial appearance in federal court today where he was charged with knowingly derailing a train. Rodriguez will remain detained pending a preliminary hearing.
According to a criminal complaint, in the early morning hours of Dec. 2, 2020, Rodriguez allegedly placed materials on a track causing a BNSF Railway train to derail in Vado, New Mexico. The derailment injured the conductor and engineer and caused damage to the railway and surrounding property.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Rodriguez faces up to life in prison.
The FBI investigated this case in conjunction with BNSF Police and the Doña Ana County Sheriff’s Office. Assistant U.S. Attorney Mark Saltman is prosecuting the case.
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Man Charged for Bilking Employer Out of $1.6 MillionRead the Press Release
A Plano man has been charged with racking up $1.6 million dollars in personal expenses on company credit cards, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Tuesday, Steven Duety, 45, was indicted on one count of conspiracy to commit wire fraud and nine counts of wire fraud. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford on Friday.
“It is unacceptable for an employee to steal from his employer,” said Acting U.S. Attorney Prerak Shah. “This defendant’s alleged abuse of his company credit card is wire fraud and the Northern District of Texas will not stand for this sort of misconduct.”
“Mr. Duety was in a position that required trust and integrity and his alleged actions abused his position,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI will continue to work closely with our law enforcement partners to hold those who enrich themselves via fraudulent schemes accountable for their actions.”
According to the indictment, from 2015 to 2019, Mr. Duety oversaw fleet functions for Builders FirstSource, a publicly-traded construction products manufacturer. The company gave him access to several company credit cards, which he was supposed to use for fleet-related expenses, such as titling, renewing registration, etc.
Instead, Mr. Duety allegedly conspired with a relative, identified in court documents as “Person A,” to use the credit cards for personal expenses as well as inventory for their respective candle businesses, including “Steves The Man Candles.”
Mr. Duety frequently charged company credit cards for nonexistent transactions via Square or Intuit, causing the payment processors to remit money from Builders FirstSource straight into his or Person A’s bank account. He and his coconspirators sometimes characterized these transactions as “car repair” or “fundraiser,” when no such things had occurred.
Mr. Duety allegedly spent the money on cars, dining (including expensive steakhouses), first class airline tickets, luxury hotels, car rentals, furniture, Amazon charges, toys, groceries, landscaping, a Netflix subscription, laser tag, and trips to Hooters, as well as first class airline tickets and kitchen appliances for Person A.
“This is really a pain in the butt,” Person A wrote in an email to Mr. Duety on October 18, 2016. “My story is you bought 100 fundraiser candles in case they call you.”
An indictment is merely an allegation of criminal wrongdoing, not evidence. Like all defendants, Mr. Duety is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 200 years, 20 years per count, in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
Man Accused of Kidnapping Ex-girlfriend and her parents Charged in South Florida Federal CourtRead the Press Release
Miami, Fl. – Today, federal prosecutors in Ft. Lauderdale filed a criminal complaint charging a 37-year-old West Palm Beach man with kidnapping his ex-girlfriend and her parents at gunpoint from their Pembroke Pines home earlier this month.
The criminal complaint affidavit alleges the following against Jaddier Thomas Sanchez: Around midnight on January 17, 2020, as the parents of Sanchez’s ex-girlfriend arrived in their truck at their Pembroke Pines home and attempted to go inside, Sanchez appeared with a gun in his hand. Sanchez grabbed the mother by the hair, forced the father into the driver’s seat of their truck, and forced the mother into the bank seat, where Sanchez sat beside her, says the affidavit. With firearm in hand, Sanchez forced the father to drive to several local ATM machines and withdraw thousands of dollars from the couples’ bank accounts. Then, Sanchez directed the couple to drive back to their house for their daughter, whom the defendant had earlier dated for about a month. As with the parents, Sanchez forced his ex-girlfriend into the truck, according to the affidavit. They drove north for several hours, at Sanchez’ direction. Once they reached Belle Glade, Florida, Sanchez left the parents on the side of a road, with their hands and feet bound. Sanchez continued to drive across Florida with the ex-girlfriend, whom he repeatedly hit in the face and threatened to kill, according to the affidavit. On January 18, 2020, police in Alexandria, Virginia stopped the vehicle with Sanchez and the victim inside. Police arrested Sanchez. He has been in law enforcement custody since then.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
FBI Miami and its Violent Crimes Task Force investigated the case with assistance from FBI Washington Field Office, Pembroke Pines Police Department, Palm Beach County Sheriff’s Office, Virginia State Police, and Fairfax County Police Department. Assistant U.S. Attorneys Brooke Latta and Francis Viamontes are prosecuting this federal case. Sanchez also faces state charges in Virginia and Florida.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted in this federal kidnapping case, Sanchez faces a maximum penalty of life imprisonment.
You may find related court documents 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 21-MJ-6046.
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Malden Man Charged with Murder-for-HireRead the Press Release
BOSTON – A Malden man was arrested today and charged in connection with attempting to hire a contract killer – who was actually an undercover federal agent – to murder his wife.
Massimo Marenghi, 54, was charged by criminal complaint with one count of murder-for-hire. Marenghi will make an initial appearance in federal court in Boston via videoconference on Monday, Feb. 1 at 11:30.
According to a criminal complaint, an individual reported to law enforcement that Marenghi had complained about his wife seeking a restraining order against him. Marenghi allegedly asked the individual for assistance in killing his wife. At the direction of federal agents, the individual introduced Marenghi to an undercover agent who posed as a contract killer. On Jan. 20, 2021, Marenghi met with the undercover agent and allegedly sought help to “eliminate” his problem. Marenghi provided the undercover agent with a photograph of his wife’s residence and explained how to evade detection by cameras while approaching the residence.
It is alleged that earlier today, Marenghi again met with the undercover agent and discussed moving forward with the killing of his wife. Marenghi provided $1,500 cash as a deposit for the murder and explained that the sooner the “demolition job” takes place, the sooner he will be able to pay the balance owed. He also allegedly provided the undercover agent with a photograph of his wife, the hours of operation of her place of business and a schedule indicating the “best time for the construction work to start.”
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Malden Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Adam Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Pleads Guilty to Drug Trafficking, Firearm, and Fraud OffensesRead the Press Release
CONCORD - Richard Stanton, 34, of Hope, Maine pleaded guilty in federal court on Thursday to multiple charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 18, 2019, New Hampshire State Troopers stopped a vehicle with a defective taillight. The driver, Stanton, was seen reaching under the front passenger seat as they approached. Due to safety concerns, a trooper asked Stanton to exit and walk to the rear of the vehicle. Stanton initially provided false information about his identity to the officers. Officers later determined his actual identity. He was arrested after officers determined that he had a suspended driver’s license and that he was the subject of outstanding warrants in Maine
Stanton told the officers there was no one to pick up the vehicle roadside. Per their policy, the officers started to inventory the vehicle in anticipation of it being towed. Various drug paraphernalia was located during the search. Additionally, the officers observed an unlocked gun case in the rear seat containing a rifle and several rounds of ammunition. Officers then stopped the search to apply for a search warrant. The following day, pursuant to the search warrant, the vehicle was searched and officers discovered Stanton’s wallet hidden in a compartment along with over 118 grams of heroin secreted in the dashboard. As a previously-convicted felon, Stanton is prohibited from possessing firearms and ammunition.
On July 24, 2019, Stanton, an uninsured individual, checked into a medical center in Bangor, Maine. Stanton signed a consent to treatment form using another individual’s identity who was a lawful recipient of Maine Care benefits. Stanton received care and generated medical bills to be processed in the other individual’s name.
Stanton pleaded guilty to possession of heroin with intent to distribute, possession of a firearm and ammunition by a prohibited person, and making a false statement in connection with health care benefits.
Stanton is scheduled to be sentenced on March 19, 2021.
“Drug traffickers are involved in a risky business and often arm themselves for protection,” said U.S. Attorney Murray. “The result is that they pose a greater danger to the public. Working with our law enforcement partners we will prosecute drug traffickers and keep guns out of the hands of criminals. This defendant’s illegal activities jeopardized public health and safety and led to a well-deserved federal prosecution.”
This matter was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Office of the Inspector General of the U.S. Department of Health and Human Services with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation 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.
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Lame Deer man admits assaulting womanRead the Press Release
BILLINGS — A Lame Deer man on Jan. 28 admitted to assaulting a woman on the Northern Cheyenne Indian Reservation, Acting U.S. Attorney Leif Johnson said today.
Darrell Dean Fisher, 36, pleaded guilty to assault resulting in substantial bodily injury. Fisher faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Fisher was released pending further proceedings. A sentencing date has not yet been set.
In court documents filed in the case, the prosecution said that on Aug. 4, 2019, Fisher and the victim, identified as Jane Doe, returned to Ashland from a trip and argued. An altercation ensued and Fisher pushed the victim to the ground, injuring her.
Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.
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Justice Department and EPA Announce Settlement with Stericycle Inc. to Address Environmental Violations at Medical Waste IncineratorRead the Press Release
The Justice Department and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Illinois-based Stericycle Inc. resolving alleged violations of the federal Clean Air Act and Utah air quality regulations at its medical waste incinerator in North Salt Lake, Utah.
The settlement, set forth in a consent decree lodged with the U.S. District Court for the District of Utah, requires Stericycle to comply with EPA regulations applicable to medical waste incinerators, pay a $600,000 civil penalty, and conduct a Supplemental Environmental Project requiring the company to spend at least $2 million to purchase low- emitting school buses for a local school district.
Today’s settlement resolves violations alleged in the United States’ complaint, which was also filed today. The complaint alleges that Stericycle operated its waste incinerator in a manner that exceeded regulatory limits for nitrogen oxides (NOx), failed to properly conduct stack tests, and failed to comply with reporting requirements. EPA investigated the alleged violations in cooperation with the Utah Division of Air Quality, which concluded its own action for related violations several years ago.
“Medical waste incinerators must operate in strict compliance with our nation’s clean air laws,” said Jean E. Williams, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Stericycle has installed new pollution controls and made operational changes to remedy the violations alleged in the complaint.”
“This settlement will benefit all who live in and visit North Salt Lake,” said EPA Acting Regional Administrator Debra H. Thomas. “In addition to NOx reductions at the facility, the settlement requires Stericycle to replace old, high-emitting school buses for a local school district, providing cleaner air for school children and nearby neighborhoods.”
The school bus replacement is a Supplemental Environmental Project, or SEP, which is an environmentally beneficial project required in a settlement that is not otherwise required by law. Diesel emissions reduction SEPs have been expressly authorized by Congress. EPA expects the SEP in this case will replace as many as 20 buses, leading to significant reductions in NOx, carbon monoxide, and diesel particulate matter and substantial fuel savings.
NOx is a key component in the formation of ground-level ozone, a pollutant that irritates lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
The consent decree is subject to a 30-day public comment period and final court approval. To view a copy of the consent decree and for information on how to submit a comment, visit www.justice.gov/enrd/Consent_Decrees.html.
Justice Department Seeks to Shut Down Louisiana Tax Return PreparersRead the Press Release
The United States has filed a complaint seeking to bar Louisiana tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The civil complaint against Leroi Gorman Jackson and Mario Alexander, both individually and doing business as The Taxman Financial Services LLC, was filed in the U.S. District Court for the Eastern District of Louisiana. The complaint alleges that Jackson formed The Taxman Financial Services in 2013 and manages its six offices across Louisiana and Texas, and that Alexander started working there as a tax preparer in 2016. According to the complaint, in October 2019, the Civil District Court for the Parish of Orleans permanently enjoined Jackson from working as a Louisiana tax preparer.
The complaint alleges that Jackson and Alexander prepared tax returns claiming fabricated business expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleges that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits (because of the way the EITC is calculated, reporting more income can, up to a point, result in a larger refundable credit; similarly, claiming losses to offset higher income, thereby decreasing total reported income, can also generate a larger refundable credit). According to the complaint, Jackson and Alexander significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
The government further alleges in the complaint that defendants have filed over 12,400 tax returns since the 2017 filing season, and that they have filed tax returns using other tax preparers’ personal identifying information. The complaint alleges that Alexander, at least, has done so in order to avoid an IRS investigation as to whether he has complied 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. According to the complaint, Alexander is subject to and has not paid penalties incurred for past violations of these due diligence requirements.
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 and has launched a free directory of federal tax preparers. 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 Department of Justice’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on 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 Recognizes the 10th Annual Human Trafficking Prevention MonthRead the Press Release
The Department of Justice today commemorates the 10th annual National Slavery and Human Trafficking Prevention Month and declares a continued commitment to combatting human trafficking in all its forms. The fight against human trafficking remains one of the department’s highest priorities, and the department will remain relentless in its efforts to bring traffickers to justice and seek justice for survivors.
Human trafficking is a crime that preys on some of the most vulnerable members of our society. It is a crime of exploitation that deprives victims of their rights, freedom, and dignity. Traffickers exploit the vulnerable through forced labor or commercial sex involving children or involving adults subjected to force, fraud, or coercion.
“The Department of Justice is unflagging in its resolve to eradicate human trafficking and pursue justice for those affected by these heinous crimes,” said Acting Attorney General Monty Wilkinson.
The Department of Justice is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and restoring the lives of survivors, while strengthening strategic anti-trafficking partnerships. In fiscal year 2020, the department brought 210 federal human trafficking cases against 337 defendants, and secured 309 convictions.
Already in 2021, the department secured a sentence of life imprisonment for an individual in Florida who directed, primarily through online communications and transactions, the sex trafficking of impoverished young children in the Philippines. As a result, Filipino authorities were able to rescue six child victims from the defendant’s co-conspirator in the Philippines. Also in 2021, the department successfully convicted a labor trafficker who used debts, threats, abuse, and assaults to compel the victim’s unpaid labor for 10 hours a day, six to seven days a week, in the defendant’s North Carolina nail salon. The department also secured a life sentence and over $900,000 in restitution against a Texas sex trafficker who compelled women and girls to engage in commercial sex through violence, isolation, intimidation, and threats.
The department-wide approach to combating human trafficking extends beyond the prosecutions brought by U.S. Attorneys’ Offices, the Human Trafficking Prosecution Unit, and the Child Exploitation and Obscenity Section, to include interagency enforcement initiatives and strategic partnerships with global anti-trafficking allies. These efforts increasingly utilize specialized expertise in money laundering, financial crimes, and transnational organized crime to enhance investigations and prosecutions.
The FBI’s Crimes Against Children and Human Trafficking Unit develops innovative strategies on an ongoing basis to enhance detection and investigation of hidden human trafficking crimes. The Justice Department’s Office for Victims of Crime, as the largest federal funding source for trafficking victim services, issued over 400 grants totaling over $270 million, enabling its grantees to serve 9,854 clients. In addition, the Office for Victims of Crime launched its Human Trafficking Capacity Building Center to assist local and tribal organizations in starting, sustaining, and expanding their anti-trafficking efforts. The department continues to to elevate the voices of courageous survivors, ensuring that their expertise and insights inform anti-trafficking efforts.
During this, the 10th annual National Slavery and Human Trafficking Prevention Month, the Department of Justice reaffirms its commitment to combatting the heinous crime of human trafficking, holding perpetrators accountable, and seeking justice for survivors.
Inglewood Man Arrested on Federal Charges of Possessing Distribution Quantities of PCPRead the Press Release
LOS ANGELES – Federal authorities have arrested an Inglewood man on a federal narcotics trafficking charge following an investigation that determined he ordered bulk quantities of at least one chemical used to make PCP and a search that led to the discovery over 2 kilograms of the drug, the Justice Department announced today.
William Cless Hubbard Jr., 63, was arrested Thursday evening by special agents with the Drug Enforcement Administration. Federal prosecutors this morning filed a criminal complaint against Hubbard charging him with possession with intent to distribute phencyclidine (PCP).
At his first court appearance late this afternoon in United States District Court, Hubbard was ordered detained pending trial. An arraignment in this case was scheduled on February 18.
During a search at Hubbard’s residence on Thursday, authorities recovered a one-gallon jug containing amber liquid which tested presumptively positive for PCP, according to the affidavit in support of the complaint. During a related search at a business owned by Hubbard, law enforcement found 55-gallon drums containing precursor chemicals regulated under the Controlled Substances Act that can be used to manufacture PCP.
The investigation into Hubbard began in October 2019 when authorities learned of a shipment of four drums of bromobenzene from China to a beauty supply company that Hubbard owned, the affidavit states. Bromobenzene has a number of applications, including being used in the manufacturing of PCP.
After the bromobenzene was delivered to his business on West Manchester Boulevard in South Los Angeles in December 2019, Hubbard was under surveillance by law enforcement. On several occasions in 2020, authorities observed Hubbard distributing suspected chemicals to several locations, including a building in Long Beach where a clandestine PCP lab was discovered last May.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the narcotics charge alleged in the complaint, Hubbard would face a statutory maximum sentence of life in federal prison.
This matter was investigated by the Drug Enforcement Administration, U.S. Customs and Border Protection and L.A. IMPACT (the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force).
This case is being prosecuted by Assistant United States Attorney JohnPaul LeCedre of the General Crimes Section.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 26 was:
Elijah James Rideshorse, 30, of Billings on charges of conspiracy to distribute and possession with intent to distribute methamphetamine, possession with intent to distribute meth and felon in possession of a firearm. If convicted of the most serious crime, Rideshorse faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Rideshorse was detained pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department, Montana Highway Patrol, Blackfeet Law Enforcement Services, Glacier County Sheriff’s Office and Cut Bank Police Department investigated the case.
PACER case reference. 20-87.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Indicted for Possession of A MachinegunRead the Press Release
SAN JUAN, Puerto Rico – On January 27, 2021, a federal grand jury returned a one-count indictment charging Nelson Grau-Cruz with possession of a machinegun, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the collaboration of the San Juan Municipal Police (SJMP) are in charge of the investigation of the case.
On January 20, 2021, officers from the SJMP were conducting a preventive patrol in San Juan, P.R. and conducted a traffic stop on a Mitsubishi Lancer. The driver, later identified as Nelson Grau-Cruz, stopped the Lancer. During the traffic stop, the officer observed a black pistol magazine protruding from a bag in the car. After additional interactions that led police to understand that there was an illegal firearm in the car, the defendant was placed under arrest and the officers seized from the car one Glock pistol and six magazines. The firearm had a modification that allowed it to automatically shoot, without manual reloading, more than one shot by a single function of the trigger, thereby classifying it as a machinegun.
Assistant U.S. Attorney Luis A. Valentin and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendant faces up to 10 years in prison.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed to be innocent unless and until proven guilty.
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Indian Trail Man Pleads Guilty to Wire Fraud for Scheme to Defraud COVID-19 Unemployment Insurance Benefit ProgramRead the Press Release
CHARLOTTE, N.C. – Joseph Ransome, 51, of Indian Trail, N.C., pleaded guilty to wire fraud today, for defrauding the COVID-19 Unemployment Insurance (UI) benefit program, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
The Coronavirus Aid, Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020, designed to provide emergency financial assistance, including expanded UI benefits, to millions of Americans suffering the economic effects of the COVID-19 pandemic.
According to plea documents and statements made in court, from March 2020 through July 2020, Ransome received UI benefits to which he was not entitled. Court documents show that Ransome applied for fraudulent UI benefits in multiple states, including in North Carolina, New Jersey, New York, and elsewhere. Ransome filed for the UI benefits based on fraudulent claims, including non-existent employment and false reason for termination. For example, Ransome falsely claimed to have been laid off from Walmart in North Carolina due to COVID, when in fact Ransome had been laid off due to misconduct. Ransome also falsely claimed prior employment at Target, BestBuy, Lowe’s, and Hobby Lobby, and falsely claimed that he had been laid off from some of these companies because he had been diagnosed with COVID or due to lack of work because of the coronavirus, when he had never in fact been employed by those companies. As a result of the fraudulent scheme, during the relevant time period, Ransome applied for more than $150,000 in fraudulent UI benefits provided under the expanded CARES Act.
Ransome appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to wire fraud in relation to a disaster benefit. The charge carries a maximum term of 30 years in prison and a $1,000,000 fine. A sentencing date for Ransome has not been set.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service and the FBI for their investigative efforts, and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, for their invaluable assistance.
The prosecution for the government is handled by Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Illegal Alien Sentenced for Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Moises Joaquin-Antonio, 33, a citizen of Mexico, was sentenced on January 28, 2021 by U.S. District Judge Sul Ozerden to time served (3 months and 18 days imprisonment) and one year of supervised release for unlawful reentry by an alien after removal, announced Acting U.S. Attorney Darren J. LaMarca, and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector. Joaquin-Antonio will also face Homeland Security removal proceedings. Joaquin-Antonio pled guilty on December 18, 2020 before Judge Ozerden.
On October 13, 2020, two U.S. Border Patrol Agents were assigned to targeted enforcement operations regarding aliens who had been officially removed from the United States and were suspected to have unlawfully returned to the local area. While conducting surveillance on Joaquin-Antonio’s suspected address in Biloxi, an agent reported that he observed Joaquin-Antonio get into a vehicle and leave the residence. The agent followed Joaquin-Antonio, and a second agent responded in a marked Border Patrol vehicle.
A traffic stop was conducted and Joaquin-Antonio was placed under arrest. He was transported to the Gulfport Border Patrol Station for further processing. At the Border Patrol Station, Joaquin-Antonio’s fingerprints were scanned through Department of Homeland Security electronic computer database systems. Joaquin-Antonio’s identity was confirmed through computer matches of his fingerprints with his earlier federal immigration records. The databases also produced prior photographs and other record information.
Joaquin-Antonio was positively identified as an alien who had been removed from the US. on four different occasions before returning and being arrested in South Mississippi. Acting U.S. Attorney LaMarca praised the efforts of the U.S. Border Patrol and the Department of Homeland Security. Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Hobart Man Sentenced to 15 Years in PrisonRead the Press Release
HAMMOND-Antonio M. Blunt, 41, of Hobart, Indiana, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to a production of child pornography charge, announced Acting U.S. Attorney Bell.
Blunt was sentenced to 180 months (15 years) in prison followed by a 12-year term of supervised release. He was ordered not to have future contact – direct or indirect – with the 4 year-old victim of his crime, and to pay restitution totaling $46,682 to cover estimated future therapy expenses. Following his release from prison, Mr. Blunt will be required to register as a sex offender in any state where he lives, works or attends school.
Pursuant to his plea agreement with the government, Mr. Blunt admitted that, while the child was in his care, he produced sexually explicit photographs of her. He knew the child was especially vulnerable, because she suffered from various physical ailments. Mr. Blunt uploaded the pictures to a cloud storage service and accessed them repeatedly.
“Those who sexually exploit children by producing child pornography cause great harm to their young victims and their deplorable actions will not be tolerated,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This sentence should serve as a warning that the FBI and our law enforcement partners will always make it a priority to identify and hold accountable those who choose to take advantage of vulnerable children.”
This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Hobart, Indiana Police Department. The case was prosecuted by Assistant U.S. Attorneys Jill Koster and Molly Kelley.
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Highmore Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Highmore, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Stacy Alan Hansen, age 52, was indicted on October 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 27, 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, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on the 17th day of August 2020, in Highmore, the 24th day of January 2020, in Pierre, and the 9th day of February 2020, in Miller, Hanson possessed multiple firearms after being previously convicted of a felony.
The charges are merely accusations and Hanson is presumed innocent until and unless proven guilty.
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 is being conducted by the Hyde County Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Hanson was released on bond pending trial. A trial date has not been set.
Hanford Man Sentenced to More Than 7 Years in Prison for Orchestrating Firearms Trafficking RingRead the Press Release
FRESNO, Calif. — Rafael Sanchez, Jr., 41, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to seven years and three months in prison for orchestrating a large-scale firearms trafficking ring, U.S. Attorney McGregor W. Scott announced.
According to court documents, between April 2016 and March 2018, while residing in Hanford, Sanchez identified firearms available for purchase in Tennessee with the assistance of various co-conspirators residing there. Sanchez transferred money to the Tennessee co-conspirators, who used the money to purchase, package and ship the firearms to Sanchez in California. With the assistance of others, Sanchez identified California-based purchasers and offered to sell and sold to them the firearms he received from the Tennessee co-conspirators. Neither Sanchez nor the six charged co-conspirators were licensed to deal or import firearms, and Sanchez was prohibited from possessing firearms because of a pior felony conviction in Kings County Superior Court for assault with a deadly weapon.
Five other defendants charged in the case have been convicted and sentenced to various terms of imprisonment and probation, including Alexis Sanchez, of Kettleman City, Veronica Ramirez, of Lemoore, and Tennessee residents Victor Luna, Ashley Sanchez and Elvia Sanchez. A seventh defendant, Juan Daniel Gonzalez Mejia, of Tennessee, was convicted of firearms trafficking and is scheduled to be sentenced on May 21.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City - Tennessee Police Department, Department of Homeland Security, and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant United States Attorney Christopher D. Baker is prosecuting the case in the Eastern District of California.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian
Grand jury indicts St. Louis County woman accused of stealing packages from private mailboxesRead the Press Release
ST. LOUIS – A federal grand jury indicted 40-year-old Sherri Welch on two counts of theft or receipt of stolen mail this week. The U.S. Postal Inspection Service, with the help of the Hazelwood Police Department, arrested Welch on Thursday.
According to the indictment, on or about December 28, 2020, Welch stole a package addressed to another person in the 11000 block of Craig Manor Drive in St. Louis, MO. Also on December 28, 2020, Welch stole a package addressed to another person in the 6800 block of Teson Road in Hazelwood, MO.
For each count, Welch faces a maximum punishment of five years in prison and a fine of up to $250,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Hazelwood Police Department and U.S. Postal Inspector’s Office investigated the case. Assistant United States Attorney John Ware is handling the case.
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Grand Jury Returns Superseding Indictment Charging First NBC Bank Executives and A Borrower with Bank Fraud and False StatementsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that a grand jury returned a superseding indictment against ASHTON J. RYAN, age 73, of Kenner; WILLIAM BURNELL, age 71, of Kenner; ROBERT BRAD CALLOWAY, age 60, of Metairie; FRANK J. ADOLPH, age 61, of Kenner; and FRED V. BEEBE, age 62, of Donaldsonville, for defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the 49-count Superseding Indictment, from 2006 through April 2017, RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH conspired to defraud First NBC Bank (the “Bank”) through a variety of schemes. RYAN was the President and CEO of the Bank for most of its existence. BURNELL was the Chief Credit Officer. CALLOWAY was an Executive Vice President. BEEBE was a Senior Vice President. ADOLPH was a borrower at the Bank who was charged with conspiring with the four Bank executives to obtain loans based on false statements and forged documents.
The Superseding Indictment alleges that RYAN, BURNELL, CALLOWAY, BEEBE, ADOLPH, and others conspired to defraud First NBC Bank by disguising the true financial status of certain borrowers and their troubled loans, concealing the true financial condition of the Bank from the Board, auditors, and examiners. The borrowers included real estate developer Gary Gibbs, real estate developer Kenneth Charity, Bank general counsel Gregory St. Angelo, factoring business owner FRANK ADOLPH, hotel owner Arvind “Mike” Vira, contractor Warren Treme, and contractor Jeffrey Dunlap. CALLOWAY was Gibbs’s loan officer while BEEBE worked as Treme’s loan officer. RYAN served as the loan officer or oversaw the loan officers for all of those borrowers. BURNELL approved the risk rating for all of these borrowers’ loans and was the gatekeeper tasked with protecting the safety and soundness of the Bank’s loan portfolio. Dunlap, Charity, St. Angelo, Vira, Gibbs, and Treme have all previously been charged in individual Bills of Information with conspiring to defraud First NBC Bank. All six of these borrowers are listed in the Superseding Indictment as members of the bank fraud conspiracy with RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH.
During the course of the conspiracy, RYAN, BURNELL, CALLOWAY, and BEEBE repeatedly extended loans to borrowers who were unable to pay their loans without relying on loan payments to keep them current. To hide this practice, RYAN, BURNELL, CALLOWAY, and BEEBE made false statements in loan documents and elsewhere about the purposes of loans, the borrowers’ abilities to repay those loans, and the sources of funds used to pay those loans. When the borrowers were unable to pay those loans, RYAN, BURNELL, CALLOWAY, and BEEBE made new loans to these same borrowers and then used the proceeds from those new loans to pay the existing loans. This created the false impression that the borrowers were able to pay their loans, when in fact they would not have been able to pay their loans without going further into debt through new borrowing from the Bank. The new loans prevented these borrowers from appearing on lists that RYAN and BURNELL gave the Bank’s Board each month, which would have highlighted that the borrowers were unable to make loan payments or had cash flow problems. RYAN, BURNELL, CALLOWAY, and BEEBE also made false statements about the purpose of those loans, misrepresenting in Bank documents that the borrowers were able to pay loans with cash generated from the borrowers’ businesses, when in fact the borrowers were only able to pay those loans with proceeds from new Bank loans. The borrowers often spent the proceeds of these business loans on unrelated personal expenses, including by overdrawing their checking accounts at the Bank, and RYAN, BURNELL, CALLOWAY, and BEEBE paid these overdrafts by issuing new loans to the borrowers. This practice kept the borrowers off of month-end overdraft reports to the Board and hid the borrowers’ inability to pay their own expenses without new loan proceeds.
For certain loans, RYAN, BURNELL, CALLOWAY, and BEEBE included borrower documents in loan files despite knowing that the documents were false. For example, even after RYAN and BURNELL learned that ADOLPH was submitting falsified documents to the Bank to inflate his collateral, RYAN and BURNELL continued to submit loans for ADOLPH that included the false documents. Even though RYAN, BURNELL, and CALLOWAY knew that Gibbs could not pay his loans with cash generated from his businesses, they continued to submit loan documents that included false documents showing that Gibbs’s business earned enough cash to pay his loans at the Bank. Likewise, RYAN, BURNELL, and BEEBE submitted loan documents to authorize Bank funds to be loaned to Treme that included falsehoods relating to Treme’s creditworthiness and the purpose of the loans.
When members of the Board or the Bank’s outside auditors or examiners asked about loans to these borrowers, RYAN, BURNELL, CALLOWAY, and BEEBE made false statements about the borrowers and their loans, and left out the truth about the borrowers’ inability to pay their debts without getting new loans. As a result, the balance on these borrowers’ loans continued to grow. By the time regulators closed First NBC Bank in April of 2017, Gibbs owed the Bank $123 million; Charity owed $18 million; St. Angelo owed $46 million; ADOLPH owed $6 million; Vira owed $39 million; Treme owed $6 million; and Dunlap owed $22 million. The Bank’s failure cost the Federal Deposit Insurance Corporation deposit insurance fund just under $1 billion.
RYAN, BURNELL, CALLOWAY, and BEEBE each received substantial compensation from the Bank during the course of the conspiracy. RYAN also received personal benefits from three of the borrower relationships. Vira lent millions of dollars to RYAN at the same time Vira was a borrower at the Bank, and RYAN and Vira conspired to hide their business dealings from the Board, auditors, and examiners. Treme was RYAN’s partner in several businesses and real estate development projects, and RYAN used Treme’s borrowing from the Bank as a way to spend Bank loan proceeds on RYAN’s own projects. Even when parts of RYAN’s business dealings with Vira and Treme were revealed to regulators, RYAN continued to conceal from regulators that he exercised authority over loans to Vira and Treme. Dunlap was a contractor for a business that RYAN and Treme ran, and RYAN used loan proceeds from Dunlap’s business to benefit his own development project, Wadsworth Estates. RYAN never disclosed his business relationship with Dunlap to the Board, auditors, or examiners. BURNELL was aware of this business relationship and also never disclosed it to the Board, auditors, or examiners.
“Along with our partners, the FBI has dedicated significant time and resources toward investigating the failure of First NBC Bank, which resulted in nearly a billion dollar loss to the FDIC,” stated FBI New Orleans Special Agent in Charge Bryan Vorndran. “We will continue to investigate allegations of fraud by First NBC bank insiders until all those responsible for its failure are identified and brought to justice.”
“Today’s indictment sends a clear message that bank executives who engage in fraud that impacts the safety and soundness of financial institutions will be held accountable for their actions,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
“Today’s indictment demonstrates the FDIC OIG and our law enforcement partners will continue to pursue individuals who defraud our insured financial institutions and cause harm to the nation’s banking industry,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH are each charged in Count 1 of the Superseding Indictment with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH are also charged with multiple instances of bank fraud, as listed in Counts 2 through 37, in violation of Title 18, United States Code, Section 1344. RYAN, BURNELL, BEEBE, and CALLOWAY are charged with making false entries in bank records, in violation of Title 18, United States Code, Section 1005, as listed in Counts 38 through 49. For each of the charged counts, the maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of $1,000,000, or the greater of twice the gain to a defendant or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment.
The United States Attorney’s Office stated that an Indictment is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, and K. Paige O’Hale are in charge of the prosecution.
Goshen Lawn Care and Snow Removal Business Owners Ordered to Pay over $1 MillionRead the Press Release
SOUTH BEND – Michael Closson, age 52, and Laquita Closson, age 49, of Goshen, Indiana, were sentenced yesterday by United States District Court Judge Jon E. DeGuilio, announced Acting U.S. Attorney Bell.
According to documents in this case, Mr. and Mrs. Closson are married and own a lawn care and snow removal business in Goshen, Indiana. They were sentenced after each pleading guilty to conspiracy to defraud the United States. Mr. Closson also pleaded guilty to an additional count of tax evasion.
The Clossons were ordered to pay in restitution $662,027.00 to the IRS; $298,300.75 to the Indiana Department of Revenue; and $64,732.39 to Medicaid. In addition to the restitution, Mr. Closson was sentenced to prison and Mrs. Closson was sentenced to home detention.
During tax years 2012 through 2016, the Clossons intentionally concealed their income from the IRS by filing false joint income tax returns that underreported their actual income. The Clossons failed to report more than $2 million dollars in gross receipts, which resulted in them evading more than $600,000 in federal income taxes and almost $300,000 in state income taxes. The Clossons also submitted false Medicaid application forms that allowed them to unlawfully receive nearly $65,000 worth of Medicaid benefits. The Clossons own two homes, a timeshare, over $10,000 worth of luxury handbags, and four vehicles, including a Lamborghini and a Cadillac Escalade.
"Honest and law abiding taxpayers are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations," said Tamera Cantu, IRS Criminal Investigation, Acting Special Agent in Charge, Chicago Field Office. "Today’s sentencing is a direct result of IRS Criminal Investigation working together with the Northern District of Indiana U.S. Attorney’s office to protect America’s honest, hard-working taxpayers," said Cantu.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant U.S. Attorney Luke N. Reilander.
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Gang Member Sentenced for Second Federal Firearm OffenseRead the Press Release
BOSTON – A man affiliated with the Junior Kaos gang in Boston was sentenced yesterday in federal court in Boston for illegally possessing a firearm and ammunition, as well as for related violations of federal supervised release. At the time of the offense, the defendant was on supervised release for a previous firearm conviction.
Dwayne Leaston-Brown, 31, who most recently resided in Brockton, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 57 months in prison and three years of supervised release for the new offense. He was also sentenced by U.S. District Court Judge Richard G. Stearns to an additional six months in prison for violating the conditions of his supervised release.
In October 2020, Leaston-Brown pleaded guilty to one count of being a felon in possession of a firearm and ammunition. He was arrested by the Boston Police Department in September 2018, charged federally in November 2018, and has been in custody since his federal arrest.
On Sept. 8, 2018, after a verbal confrontation, Leaston-Brown drew a firearm on another gang member on a sidewalk outside a restaurant on Blue Hill Avenue in Boston. The other individual, who was also armed with a firearm, then chased Leaston-Brown through Mattapan Square. This armed chase was interrupted by a police officer who saw Leaston-Brown running, attempted to stop him, and ultimately recovered the loaded firearm from him near the corner of Fairway Street and Blue Hill Avenue in the Mattapan Square area. Police also recovered the other individual’s firearm, and he has been charged by the state.
Federal law prohibits Leaston-Brown from possessing a firearm or ammunition due to a prior felony conviction. In November 2014 he was convicted of being a felon in possession of a firearm and served 46 months in prison. At the time he committed the charged offense, he was on supervised release. Leaston-Brown’s conditions of supervised release included that he not commit any further federal, state, or local offenses, and that he not possess any firearms or ammunition – conditions that he violated when he committed the new offense.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today.
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. PSN is 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.
Fraudster Sentenced for $400,000 Motorized Surfboard ScamRead the Press Release
ALEXANDRIA, Va. – A Palm Bay, Florida man was sentenced today to six years in prison for an investment fraud scheme involving the supposed production and sale of motorized surfboards.
According to court documents, Roberto Clark, 50, previously a resident of Bethesda, Maryland, operated a scheme to defraud small investors in Virginia, Maryland, and the District of Columbia. As part of the scheme, Clark falsely promised that the investments made with Clark’s company, KRM Services, would go toward manufacturing “Jetboards” for resale to third parties at substantial profits. Instead, Clark spent the money on maintaining his lavish lifestyle.
To execute the scheme, Clark falsified sales contracts with cruise lines and water sports companies; forged signatures and notary stamps; fabricated emails from supposed buyers of the Jetboards; and falsified a patent report so that it would appear he could obtain a patent on the Jetboard. He provided all of this false information to investors to convince them to invest in KRM Services. In reality, Clark had purchased a Chinese-made motorized surfboard that had serious mechanical and design problems and never properly functioned. Clark never sold a single surfboard to any buyer.
Clark primarily defrauded small investors, including people he met socially in local restaurants and bars. He maxed out one victim’s personal credit card on Christmas Eve so that she could not buy her daughter a present or travel to see family. According to court documents, Clark stole more than $400,000 from 14 victims between 2016 and 2019, causing substantial financial hardship to a number of them.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. The Fairfax County Police Department and the Securities and Exchange Commission also provided assistance in the investigation.
Assistant U.S. Attorneys Russell L. Carlberg and Kimberly Riley Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-332.
Former Roanoke Pharmacist Sentenced for TamperingRead the Press Release
ROANOKE, Va. – Bryan Wade Lewis, a former pharmacist at Home Choice Partners in Roanoke, was sentenced yesterday in U.S. District Court here for tampering with a consumer product, hydromorphone, that affected interstate commerce. Acting United States Attorney Daniel P. Bubar made the announcement today.
Lewis, 35, of Roanoke, Virginia, was sentenced today to 12 months and 1 day in federal prison. He pleaded guilty in September 2020 to one count of tampering with a consumer product.
“Tampering with powerful narcotics can harm patients and will not be tolerated,” said Acting U.S. Attorney Bubar. “We appreciate the good work on this case by FDA, DEA, DHP, and VSP that brought Lewis to justice and demonstrates our commitment to ensure the public receives safe and unadulterated medication.”
“Those who knowingly tamper with and steal medicines risk harming patients by depriving them of their prescribed therapies,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health and bring to justice healthcare professionals and others who take advantage of their position and compromise patients’ health and comfort by tampering with needed drugs.”
According to court documents, in January 2018 an employee at Home Choice Partners in Roanoke discovered a needle, alcohol pad, and a bloody tissue in the toilet of an employee bathroom and reported it to another employee. When asked by that employee if he knew anything about the items, Lewis said the items may have fallen out of his pocket. The employee contacted human resources and a decision was made to drug test all employees.
Lewis, who was scheduled to be off work on the day of the drug test, was instructed to report to work to be administered a drug screening. However, Lewis contacted an employee and explained that he was the employee responsible for the items in the toilet. When asked, Lewis explained he had been engaging in such conduct for nine months. Lewis admitted there was a 50 ml vial of hydromorphone in the back of the narcotics cabinet that did not contain hydromorphone, but instead had been replaced, by him, with saline.
The investigation of the case was conducted by the U.S. Food and Drug Administration – Office of Criminal Investigations, Drug Enforcement Administration Diversion Control Division, Virginia Department of Health Professions, and Virginia State Police. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former Federal Grand Juror Sentenced after Pleading Guilty to Obstruction of JusticeRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Alicia Renee Coleman, 51, of Rock Hill, was sentenced in federal court after pleading guilty last fall to a felony charge of obstruction of justice.
“The integrity of our grand jury process is vital to our mission of protecting the people of South Carolina and upholding the rule of law,” said U.S. Attorney McCoy. “As this case makes clear, if you violate the secrecy of grand jury proceedings, you will be prosecuted.”
Evidence presented to the court showed that in early June 2018, Coleman communicated secret federal grand jury information concerning an indictment and upcoming arrests in case involving a drug trafficking organization in the Rock Hill and Charlotte regions, United States v. Hemphill, et al.
Coleman learned the information in her capacity while serving as a federal grand juror and communicated the information to a family member in violation of a court order. Law enforcement quickly learned of the leak, which had made its way to targets of the investigation, and as a result changed the date of the upcoming takedown in the case. Investigators were able to track down the source of the leak and thereafter, Coleman was relieved of her duties as a federal grand juror and admitted to sharing the information with a family member.
United States District Court Judge Mary Geiger Lewis sentenced Coleman, who had no prior record, to a 3-year term of probation. The charge against Coleman was prosecuted by Assistant United States Attorney Stacey D. Haynes, after an investigation by the Federal Bureau of Investigation (FBI).
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Former Clarke County Sheriff's Office Deputy Sentenced for Assault of ArresteeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Judge Terry F. Moorer sentenced defendant Mitchell Finney, 52, a former deputy of the Clarke County Sheriff’s Office, to three years of probation for deprivation of rights under color of law. Finney was convicted of that offense on October 7, 2020, following a jury trial.
During trial, the jury heard evidence that on May 11, 2019, Finney responded to a call for service at the Grove Hill Hospital. Once there, he made contact with a male patient at the hospital’s geriatric psychiatric ward. The patient had been disruptive in the hospital, and hospital employees had called for police assistance. Other law enforcement officers had arrived on scene first, subdued the man, and taken him into custody. Finney then arrived on scene and approached the man to ask him to take a seat in a patrol car. The man did not comply and spat in Finney’s direction. Finney then punched the man in the face. Finney then retreated to his patrol car, obtained a can of pepper spray, and sprayed the man in the face for an extended period of time. The man was handcuffed throughout the interaction with Finney.
The United States recommended a custodial sentence of incarceration. The Court imposed a three-year probationary sentence. Finney was not ordered to pay a fine, but the judge ordered him to pay $100 in special assessments.
The Federal Bureau of Investigation and the Alabama State Bureau of Investigation investigated this case. Assistant United States Attorney Kacey Chappelear prosecuted the case.
Five New Haven Residents Charged with Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Chief Otoniel Reyes today announced that, on January 19, 2021, a federal grand jury in New Haven returned two indictments charging five New Haven residents with federal narcotics offenses related to the distribution of crack cocaine. The five defendants were arrested on January 26.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department. The investigation included court-authorized wiretaps and multiple controlled purchases of crack.
JERRY ROLLINS, a.k.a. “Prank,” 36; BENITA FLEMMING, 33, and ORLANDO MOORE, 49, are charged in a 14-count indictment alleging that they conspired to distribute crack from approximately July 2020 to January 2021. DEVARO TAYLOR, 30, and TASHAUN FAIR, 27, are charged in an eight-count indictment alleging that they conspired to distribute crack between approximately September and December 2020.
Each defendant is charged with conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”), a charge that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Rollins and Taylor are also charged with multiple counts of possession with intent to distribute, and distribution of, cocaine base, an offense that carries a maximum term of imprisonment of 20 years on each count. In addition, the five defendants are charged with one or more counts of use of a telephone to facilitate a drug trafficking felony, an offense that carries a maximum term of imprisonment of four years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In association with the arrests of the defendants, investigators seized approximately 300 grams of crack and packaging, 50 grams of heroin and packaging, 100 grams of cocaine and packaging, and more than $17,000 in cash.
The FBI’s New Haven Safe Streets/Gang Task Force includes members from the New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police and Connecticut Department of Correction. The U.S. Drug Enforcement Administration and West Haven Police Department have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile and Marc H. Silverman through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Felon Indicted on Gun ChargeRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that EDWARD BELL, age 24 of New Orleans, Louisiana, was charged in a one count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922 and 924.
According to court documents, BELL was previously convicted of numerous drug and firearm offenses. This present charge alleges he was in possession of a P80 9mm semi-automatic pistol in April of 2020. If convicted of the firearms offense, BELL faces a maximum term of ten years imprisonment, a fine of $250,000.00, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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.
The case was investigated by the Kenner Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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Federal Prosecutors Honored by DEA for Exemplary Work in Drug-Related CasesRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – January 29, 2020
SAN DIEGO – Several federal prosecutors have received awards from the San Diego Drug Enforcement Administration for exemplary service and dedication to the mission of the DEA in San Diego and Imperial counties.
The recipients – Brandon Kimura, Larry Casper, Kyle Martin, Victor White and Dylan Aste – were honored for working tirelessly, hand-in-hand with DEA agents, to disrupt the movement of large quantities of narcotics; to dismantle transnational drug trafficking organizations around the world; to target maritime-based narcotics trafficking operations; and to hold dealers responsible for overdose deaths and doctors and pharmacies accountable for overprescribing opioids.
Collectively their efforts resulted in numerous maritime seizures of huge shipments of illicit drugs; seizures of bulk currency shipments totaling millions of dollars; the arrests and indictments of members of the command and control structures of drug trafficking organizations; and the collection of significant civil settlement payments.
“It was an honor and a privilege to recognize these Assistant U.S. Attorneys along with U.S. Attorney Robert Brewer on behalf of the DEA San Diego Field Division for their hard work and dedication to the mission of the DEA,” said Special Agent in Charge John W. Callery. “Their relationships directly with the DEA have led to proven results through countless successful prosecutions and the dismantlement of drug trafficking organizations operating in Imperial and San Diego counties and beyond. These AUSAs’ steadfast and unwavering partnership directly with DEA agents and task force officers of the SDFD is to be commended and admired.”
“During a time when drug overdoses have spiked to unprecedented levels during the pandemic, the accomplishments of these outstanding prosecutors and their DEA partners are even more crucial and impressive,” said U.S. Attorney Robert Brewer. “I am so proud of their dedication and hard work protecting the people of San Diego and Imperial counties from the violence and destruction associated with illegal drugs. And I am so grateful to John Callery and the DEA for this great honor, and for our strong and successful relationship.”
From the DEA’s commendations:
Assistant U.S. Attorney Brandon Kimura has demonstrated his commitment to the DEA Imperial County District Office through his time, his service, and his mentorship. Throughout 2020, AUSA Kimura assisted the DEA and U.S. Postal Inspectors in the prosecution of multiple investigations targeting a network of couriers, shippers, and receivers of drug laden packages originating in Imperial County and destined for cities across the United States; resulting in multiple arrests and enforcement actions throughout the country. AUSA Kimura is a reliable and valuable resource for the DEA in Imperial County and provides effective guidance and constructive feedback for prosecutorial avenues which investigators can build upon. His close partnership with his case agents results in the development of overwhelming evidence to ensure swift and meaningful prosecutions.
Assistant U.S. Attorney Victor White has demonstrated his commitment to the DEA Imperial County District Office through his dedication, determination and his mentorship. White assisted with numerous DEA investigations in Imperial County involving the prosecution of domestic and foreign targets, including Mexico-based drug trafficking organization leaders who used international drug laden vessels and aircrafts, and United States-based couriers, distributors, transporters, and receivers of narcotic shipments travelling through Imperial County and destined for cities across the United States. His efforts resulted in multiple arrests and enforcement actions throughout the country.
Assistant U.S. Attorney Kyle Martin has demonstrated his commitment to the DEA Imperial County District Office through his consistent and direct communication with DEA special agents and task force officers in pursuing transnational drug trafficking organizations. Of note, AUSA Martin took part in cases targeting organizations operating in Guatemala, El Salvador, Mexico City, the United States, and Europe. These organizations were responsible for the shipment of large quantities of narcotics on land and in boats and shipping containers. AUSA Martin’s efforts resulted in numerous maritime seizures of multi-hundred kilogram shipments of cocaine, seizures of bulk currency shipments totaling over $2.8 million, and the arrest and indictment of members of the command and control structures of the drug trafficking organizations. AUSA Martin’s commitment and steadfast dedication to the DEA in developing comprehensive investigations targeting the highest echelons of transnational drug trafficking networks has led to proven results in continuing DEA’s mission and is to be admired and commended.
Assistant U.S. Attorney Larry Casper exemplifies dedication, determination, and commitment to the mission of the DEA Imperial County District Office. AUSA Casper routinely integrates himself with the DEA, providing outstanding on the spot legal and prosecutorial guidance and insight to special agents and task force officers resulting in the progression of their investigations and the disruption and dismantlement of drug trafficking organizations. AUSA Casper’s unparalleled commitment as the U.S. Attorney’s Office Opioid Coordinator directly corresponded to the charging of the DEA’s first fentanyl overdose case in Imperial County, in which the Government alleges that the distributed fentanyl resulted in the death of a local high school student in March of 2019. Furthermore, AUSA Casper is the lead prosecutor on an Organized Crime Drug Enforcement Task Force Operation that has disrupted a Mexicali, Baja California, Mexico drug trafficking organization that allegedly exploits juveniles as body couriers and has already resulted in more than twenty successful prosecutions. Casper’s dedication is expected to further dismantlement of the drug trafficking organization and prosecution of its leadership.
Assistant U.S. Attorney Dylan M. Aste has demonstrated his dedication and commitment to the mission of the Drug Enforcement Administration by always being available and responsive and by working hard to hold doctors and pharmacies accountable for their roles in the opioid crisis. AUSA Aste has a demanding position prosecuting civil diversion investigations and responds without complaint and provides whatever assistance or guidance necessary for the investigators and agents to ensure a successful prosecution. His most recent cases have resulted in large civil settlements with doctors and a pharmacy. His deliberate and thorough approach was the driving force in the success of these investigations.
Federal Court Restrains Tampa Pharmacy and Two Individuals from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
A federal court in Florida issued a temporary restraining order enjoining a Tampa pharmacy and two of its employees from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint unsealed in the Middle District of Florida, the United States alleges that WeCare Pharmacy, its pharmacist owner Qingping Zhang, and pharmacy technician Li Yang, and another related corporate entity, L&Y Holdings LLC, repeatedly dispensed opioids in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Mary Scriven granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Pharmacists have an important role in ensuring that prescriptions for controlled substances are legitimate,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its partners to enforce the law where evidence shows pharmacists abdicated their responsibilities when dispensing these powerful drugs.”
“Medical professionals, including pharmacists, must utilize the best methods of efficacy and accountability when dispensing and distributing dangerous medications,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Failure to comply with our federal laws and standards places the public at great risk and cannot be tolerated. We intend to work with our law enforcement partners to hold responsible parties accountable for their actions and keep our citizens safe.”
“Pharmacies and their pharmacists have the responsibility to flag suspicious prescriptions written by doctors for highly sought after opioid medications, in order to prevent them from being dispensed,” said Special Agent in Charge Keith Weis of the Drug Enforcement Agency’s Miami Field Division. “When they fail to carry out this important responsibility, the dispensing of opioid medication becomes a real threat to the health of legitimate patients, and also gives pill seekers a steady supply to either fuel their addiction or illegally distribute them in our communities.”
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone and hydromorphone, almost always in the highest-strength formulations generally available. The complaint alleges that the defendants repeatedly filled prescriptions written by a particular doctor without examining the red flags those prescriptions presented. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorney Sean P. Keefe, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA.
Federal Court Restrains Tampa Pharmacy and Two Individuals from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
Tampa, FL – A federal court in Florida issued a temporary restraining order enjoining a Tampa pharmacy and two of its employees from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint unsealed in the Middle District of Florida, the United States alleges that WeCare Pharmacy, its pharmacist owner Qingping Zhang, and pharmacy technician Li Yang, and another related corporate entity, L&Y Holdings LLC, repeatedly dispensed opioids in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Mary Scriven granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Pharmacists have an important role in ensuring that prescriptions for controlled substances are legitimate,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its partners to enforce the law where evidence shows pharmacists abdicated their responsibilities when dispensing these powerful drugs.”
“Medical professionals, including pharmacists, must utilize the best methods of efficacy and accountability when dispensing and distributing dangerous medications,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Failure to comply with our federal laws and standards places the public at great risk and cannot be tolerated. We intend to work with our law enforcement partners to hold responsible parties accountable for their actions and keep our citizens safe.”
“Pharmacies and their pharmacists have the responsibility to flag suspicious prescriptions written by doctors for highly sought after opioid medications, in order to prevent them from being dispensed,” said DEA’s Miami Field Division Special Agent in Charge Keith Weis. “When they fail to carry out this important responsibility, the dispensing of opioid medication becomes a real threat to the health of legitimate patients, and also gives pill seekers a steady supply to either fuel their addiction or illegally distribute them in our communities.”
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone and hydromorphone, almost always in the highest-strength formulations generally available. The complaint alleges that the defendants repeatedly filled prescriptions written by a particular doctor without examining the red flags those prescriptions presented. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorney Sean P. Keefe, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA.
Federal Charges Announced for Fourth Person Arrested as Part of Law Enforcement Action in Jefferson County on January 27, 2021Read the Press Release
DENVER – United States Attorney Jason Dunn announced that Tanya Bui, age 23, of Littleton has been charged with possession of marijuana with intent to distribute as well as possession of a firearm in furtherance of a drug trafficking offense. Ms. Bui is scheduled to have her initial appearance in the United States District Court for the District of Colorado on Friday afternoon.
According to facts contained in the affidavit in support of the criminal complaint, evidence supporting the drug and firearm charges was obtained as part of a murder and arson investigation, which culminated in a search of a Littleton property. During Wednesday’s search, investigators allegedly located a large quantity of marijuana and a firearm in a room identified as belonging to Ms. Bui. As recounted in the affidavit, investigators previously obtained social media posts and messages which indicated drug trafficking activity and were attributed to Ms. Bui.
The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty.
This matter is being investigated by the ATF and the Denver Police Department’s Homicide Unit. The case is being prosecuted by Assistant United States Attorney Celeste Rangel.
CASE NUMBER: 21-mj-00014
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Federal Air Marshal Sentenced, Ordered to Payback Quarter Million Dollars in Fraudulent Workers' Comp PaymentsRead the Press Release
PROVIDENCE – A now former Federal Air Marshal who fraudulently collected more than $240,000 in workers’ compensation benefits he collected based on his employment with the government after concealing from the United States Department of Labor (DOL), Office of Workers’ Compensation Programs (OWCP), his self-employment and role in a Middletown-based martial arts business, has been sentenced to two years probation and ordered to pay back the ill-gotten disability benefits.
Joseph Patrick Watterson, 52, of Newport, a martial arts Black Belt, previously admitted that he initially concealed on OWCP forms the fact that he owned and was engaged in physical activities at his martial arts business, Two Swords Brazilian Jiu Jitsu. Later, after admitting that he was self-employed, he concealed on OWCP forms the true scope of his employment activities at his martial arts studio, not wanting his OWCP benefits to be reduced or terminated.
Watterson admitted that he concealed the fact that he was instructing and engaging in Jiu Jitsu. Rather than disclose his physical activities at his martial arts studio, Watterson falsely represented that his role was merely administrative. In a letter to DOL, Watterson described his duties as involving "cleaning and maintaining school, share the bookkeeping.”
According to the government’s evidence, from May 31, 2016, to March 3, 2019, Watterson collected disability benefits totaling approximately $241,118.52 that he was not entitled to collect.
Watterson pleaded guilty on November 10, 2020, to false statements to obtain federal workers’ compensation benefits. He was sentenced on Thursday by U.S. District Court Judge William E. Smith to two years probation and ordered to pay restitution in the amount of $241,118.52, announced United States Attorney Aaron L. Weisman; Michael A. Ondocin, Executive Assistant to the Administrator of the Transportation Security Administration (Federal Air Marshal Service); and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the Transportation Security Administration and the U.S. Postal Inspection Service.
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El Departamento de Justicia reconoce el 10mo Mes de Prevención de Tráfico HumanoRead the Press Release
El Departamento de Justicia conmemora hoy el 10mo Mes Nacional de Prevención de Esclavitud y Tráfico Humano y declara su compromiso continuo para combatir el trafico humano en todas sus formas. La lucha contra el tráfico humano continúa siendo una de las principales prioridades del departamento y el departamento permanecerá incesante en sus esfuerzos para llevar a los traficantes ante la justicia y buscar justicia para los sobrevivientes.
El tráfico humano es un crimen que hace presa a algunos de los miembros más vulnerables de nuestra sociedad. Es un crimen de explotación que priva a las víctimas de sus derechos, libertad y dignidad. Los traficantes explotan a los vulnerables por medio de labor forzada o sexo comercial que involucra a niños o adultos sujetos a fuerza, fraude o coerción.
“El Departamento de Justicia es inquebrantable en su resolución para erradicar el tráfico humano y perseguir justicia para quienes hayan sido afectados por estos atroces crímenes”, dijo el Fiscal General Interino Monty Wilkinson.
El Departamento de Justicia está comprometido con continuar su enfoque centrado en la víctima e informado en el trauma para detectar crímenes de tráfico humano escondido, haciendo responsables a los perpetradores y restaurando las vidas de los sobrevivientes, mientras fortalece las alianzas estratégicas contra el tráfico. Durante el año fiscal 2020, el departamento realizó 210 casos de tráfico humano federales contra 337 acusados y aseguró 309 convicciones.
En 2021 el departamento ya aseguró una sentencia de cadena perpetua a un individuo en Florida que dirigió, principalmente mediante comunicaciones y transacciones en línea, el tráfico sexual de niños pequeños pobres en Filipinas. Como resultado, las autoridades filipinas pudieron rescatar a seis niños víctimas del co conspirador del acusado en Filipinas. También en 2021, el departamento sentenció exitosamente a un traficante laboral que usaba deudas, amenazas, abusos y asaltos para obligar el trabajo de la víctima durante 10 horas al día, siete días a la semana, en el salón de uñas en Carolina del Norte del acusado. El departamento también aseguró una cadena perpetua y más de $900,000 en restitución en contra de un traficante sexual de Texas que obligó a mujeres y niñas a participar en sexo comercial por medio de violencia, aislamiento, intimidación y amenazas.
El amplio enfoque del departamento para combatir el tráfico humano se extiende más allá de los procesamientos llevados ante las Oficinas del Fiscal de EE.UU., la Unidad de Procesamiento de Tráfico Humano y la Sección de Explotación de Niños y de Obscenidad, para incluir iniciativas de ejecución entre agencias y asociaciones estratégicas con aliados anti tráfico. Estos esfuerzos utilizan conocimientos cada vez más especializados sobre lavado de dinero, crímenes financieros y delincuencia transnacional organizada para mejorar las investigaciones y acusaciones.
La Unidad de Crímenes contra Niños y Tráfico Humano del FBI desarrolla innovadoras estrategias de forma continua para mejorar la detección e investigación de crímenes de tráfico humano escondidos. La Oficina para Víctimas del Crimen del Departamento de Justicia como la fuente de financiamiento federal más grande de servicios para víctimas de tráfico, que ofreció más de 400 subvenciones sumando un total de $270 millones, que le permitió a los beneficiados servir a 9,854 clientes. Además, la Oficina para Víctimas del Crimen lanzó su Centro de Fortalecimiento para la Capacidad de Tráfico Humano, para ayudar a las organizaciones locales y tribales para comenzar, sostener y ampliar sus esfuerzos en contra del tráfico. El departamento continúa elevando las voces de los valientes sobrevivientes, asegurando que sus experiencias y conocimientos para informar a los esfuerzos en contra del tráfico.
Durante este 10mo Mes Nacional de Prevención de Esclavitud y Tráfico Humano, el Departamento de Justicia reafirma su compromiso para combatir el atroz crimen del tráfico humano, haciendo responsables a los perpetradores y buscando justicia para los sobrevivientes.
Eight charged with trafficking 10 kilos of cocaine and other drugs in Lorain, Elyria and ClevelandRead the Press Release
Federal law enforcement officials announced today that eight individuals were charged for their roles in a drug trafficking conspiracy that distributed at least 10 kilograms of cocaine and other drugs in the Lorain, Elyria and Cleveland areas. The charges were unsealed in two separate indictments. Seven defendants have been arrested and one, Mohammad HAMID, remains a fugitive.
“The cooperation between local and federal law enforcement has once again proven effective,” said Acting U.S. Attorney Bridget M. Brennan. “Anyone alleged to be selling cocaine, heroin or any other illegal narcotics in Cleveland, Elyria or Lorain should expect a strong law enforcement response.”
“Yesterday's enforcement operation was the culmination of an investigation that targeted narcotics-related crimes and drug trafficking in Lorain county,” said DEA Special Agent in Charge Keith Martin. “The arrests of these individuals puts drug dealers on notice that we will use whatever resources necessary to remove them, and the poisons they peddle, from our communities.”
The first indictment charges Fernando TALAVERA, age 42, of Parma Heights, and Harlan PAGE, age 29, of Westlake, with conspiracy to distribute and possession with the intent to distribute cocaine. In addition, defendant TALAVERA is charged as a felon in possession of a firearm.
The second indictment charges Prince BROWN, age 35, currently incarcerated; Robert STARR, age 27, of Lorain; Mohammad HAMID, age 33, of Avon Lake; Amos JACKSON, age 37, of Elyria; Darian LOPEZ, age 27, of Lorain and Devon GRANTHAM, age 26, of Elyria with conspiracy to distribute and possession with the intent to distribute controlled substances and use of a communication facility in furtherance of a drug trafficking crime. In addition, Defendant STARR is charged with two counts of distribution of cocaine and defendant BROWN is charged with one count of possession with intent to distribute heroin and as a felon in possession of a firearm and ammunition.
According to the charges, from January of 2019 to September of 2020, defendants TALAVERA and PAGE worked together to traffic at least five kilograms of cocaine in the Elyria, Lorain and Cleveland areas. Separately, defendants BROWN and HAMID conspired together to supply at least five kilograms of cocaine and other amounts of heroin to other narcotics traffickers in their network.
As part of the conspiracy and to reduce the risk of being detected by law enforcement, the defendants used cell phones obtained in the names of fictitious individuals and code words when discussing drug trafficking activity.
On the morning of January 28, law enforcement agents with the Northern Ohio Violent Fugitive Task Force (NOVFTF) assisted the DEA with apprehending the defendants and succeeded in placing seven of the eight in federal custody.
These arrests and indictments are related to an earlier investigation into drug trafficking in the Lorain county area. In July of 2020, 10 individuals were arrested in a conspiracy to distribute crack cocaine, cocaine and oxycodone throughout Elyria.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The matter was investigated by the Drug Enforcement Agency, Lorain county High Intensity Drug Trafficking Area (HIDTA), City of Lorain Police Department and City of Elyria Police Department. This case is being prosecuted by Assistant U.S. Attorney Vasile C. Katsaros.
Drug Traffickers Sentenced to a Total of 31+ Years in Federal Prison for their CrimesRead the Press Release
SHREVEPORT, La. – Two men were sentenced in United States District Court for trafficking methamphetamine, Acting United States Attorney Alexander C. Van Hook announced.
Gilbert Martinez, 30, of Brawley, California, was sentenced by United States District Judge S. Maurice Hicks, Jr. to 210 months (17 years, 6 months) in prison followed by 5 years of supervised release for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. On March 12, 2019, Martinez was captured on surveillance video at a post office in California mailing two packages to Shreveport. Pursuant to a federal search warrant, the U.S. Postal Inspection Service seized and searched the packages and found approximately 5 pounds of methamphetamine and several pills inside. Again, on April 26, 2019, Martinez and his co-conspirator traveled to three post offices in Southern California to mail packages containing methamphetamine. They were captured on surveillance video at the post offices mailing packages to Frierson, Keithville, and Shreveport. On April 29, 2019, agents were notified of the arrival of the packages at those locations in Louisiana and seized and searched the packages and discovered approximately 5 pounds of methamphetamine in each package. Martinez pleaded guilty to the charge on August 11, 2020.
Anthony Antwon Easter, 27, of Vivian, Louisiana, was sentenced to 168 months (14 years) in prison followed by 5 years of supervised release for attempted possession with intent to distribute methamphetamine. On February 12, 2020, a U.S. Postal Inspector intercepted a suspicious package and a Caddo Parish K-9 Deputy detected that the package contained narcotics. Law enforcement agents executed a federal search warrant and found approximately 5 pounds of methamphetamine inside the package. Agents placed narcotics back in the box and delivered to the address indicated on the box in Vivian, Louisiana. When the agent arrived at the address, Easter pulled in the driveway and told the agent the package was for him. Easter signed for the package using the same false name that was on the package. He was then arrested and the box containing narcotics was recovered and seized. Easter pleaded guilty to the charge on September 1, 2020.
The DEA, U.S. Postal Inspection Service, and Caddo Parish Sheriff’s Office conducted the investigations. Assistant U.S. Attorneys J. Aaron Crawford and Robert F. Moody prosecuted the cases.
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Dominican National Indicted for Fentanyl PossessionRead the Press Release
BOSTON – A Dominican national previously living in Lawrence was indicted yesterday by a federal grand jury in connection with fentanyl possession.
Anyelo Aybar-Franco, 25, was indicted on one count of possession with intent to distribute more than 40 grams of fentanyl. Aybar-Franco was previously charged by criminal complaint.
According to the charging documents, on Oct. 20, 2020 in Lawrence, Aybar-Franco possessed with intent to distribute over 65 grams of fentanyl.
Aybar-Franco faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Valuable assistance was provided by the Essex County Sheriff’s Department, Homeland Security Investigations in Boston and the Lawrence Police Department. Assistant U.S. Attorney Charles Dell’Anno of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
DOJ Announces Arrests in Middle Georgia Drug Conspiracy and Dog Fighting Ring InvestigationRead the Press Release
MACON, Ga. – An indictment was unsealed today charging 11 individuals in a 136-count federal indictment including alleged violations of drug conspiracy, drug distribution, drug possession with the intent to distribute, drug possession, as well as violations of the dog fighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit the same, announced Acting U.S. Attorney Peter D. Leary of the Middle District of Georgia and Acting Assistant Attorney General Jean Williams for the U.S. Department of Justice Environment and Natural Resources Division.
The defendants include: Jarvis Lockett, 40, of Warner Robins, Georgia; Derrick Owens, 37, of Woodland, Georgia; Christopher Raines, 50, of Talbotton, Georgia; Armard Davis, 41, of Fort Valley, Georgia; Jason Carter, 38, of Phoenix City, Alabama; Shaquille Bentley, 26, of Roberta, Georgia; Bryanna Holmes, 24, of Fort Valley, Georgia; Vernon Vegas, 49, of Suwanee, Georgia; Lekey Davis, 45, of Talbotton, Georgia, Kathy Ann Whitfield, 61, of Columbus, Georgia; and Rodrick Walton, 40, of Shiloh, Georgia.
An indictment is a set of allegations based upon a finding of probable cause by a grand jury. A defendant is presumed innocent until convicted.
“Dog fighting is brutal and illegal; it is particularly troubling when combined with drug trafficking,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “We will investigate and prosecute individuals who engage in these criminal acts and seek justice for all of their victims. I thank our law enforcement partners for their hard work on this significant investigation.”
“As this case demonstrates, we continue to aggressively prosecute dog fighters and those who work together to support and further their inhumane criminal activities,” said Jean Williams, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “We thank our federal and local law enforcement partners who made this operation possible.”
The indictment alleges that defendants Lockett, Owens, Raines, A. Davis, Carter, Bentley, Holmes, Vegas, Lekey Davis and Whitfield were involved in a conspiracy between May 2019 and February 2020 to possess with intent to distribute five kilograms or more of cocaine and 28 grams or more of cocaine base. Lockett is charged in separate counts with distribution of cocaine base and cocaine, and possession with the intent to distribute cocaine base and cocaine. Armard Davis and Holmes are charged in separate counts with possession with intent to distribute cocaine base and cocaine. Walton is charged in a separate count with possession of cocaine.
The indictment further alleges that defendants Lockett, Owens, Raines, Armard Davis, and Walton were involved in a conspiracy to sponsor and exhibit dogs in a dog fight, and possess, train, transport, deliver, and receive dogs for the purpose of having the dogs participate in a dog fight. The indictment outlines dog fights the defendants are alleged to have attended between May 2019 and February 2020, as well as discussions between the co-conspirators about training and matching up their dogs for fighting. In addition, the defendants are separately charged with possession of dogs for purposes of having the dogs participate in dog fights as follows: Lockett – 15 counts; Raines – 40 counts; Owens – 44 counts, Walton – 18 counts; Armard Davis – 9 counts.
This matter is being investigated by the Drug Enforcement Administration and the U.S. Department of Agriculture, Office of the Inspector General, with assistance from the United States Marshals Service, Southeast Regional Fugitive Task Force and local law enforcement agencies. and local law enforcement agencies. Assistant United States Attorney William Keyes and Department of Justice Senior Trial Attorney Jennifer Blackwell are prosecuting the case. An indictment is a set of allegations based upon a finding of probable cause by a grand jury. A defendant is presumed innocent until convicted. The investigation is ongoing.
Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Convicted Predator Pleads Guilty to Child Pornography 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 James Tracy, 50, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to receipt of child pornography by a person having a prior conviction for aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that between June 13 and August 18, 2018, the defendant received three images and 10 videos of a 15-year-old minor victim. Tracy solicited the minor victim, a relative, to produce some of the images via Facebook. In December 2018, the defendant told Homeland Security Investigation Special Agents that several years prior he had engaged in oral sexual contact with the 15-year-old-minor victim on at least three occasions.
Investigators conducted a forensic review of Tracy’s electronics and discovered 51 images of child pornography on Tracy’s LG cellular telephone. Some of the images included depictions of violence.
In February 1995, the defendant was convicted of Sexual Abuse in the First Degree, and in March 2001, he was convicted of Attempted Sexual Abuse in the First Degree. Both victims were under the age of 18.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major James Hall; and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
Sentencing will be scheduled at a later date.
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Convicted Felon Indicted for Illegal Possession of FirearmRead the Press Release
BOSTON – A Fitchburg man was indicted yesterday by a federal grand jury in Worcester on charges of being a felon in possession of a 10 mm Glock pistol.
Joel Polanco, 33, was indicted on one count of being a felon in possession of a firearm. Polanco was previously charged by criminal complaint in December 2020.
According to the charging documents, on Oct. 24, 2020, Polanco was arrested after police responded to the area of Snow and Cherry Streets in Fitchburg following a report of a person suffering a gunshot wound to the leg. A witness reported seeing someone fitting Polanco’s description shoot the victim. In addition, surveillance videos showed a person fitting Polanco’s description carrying what appeared to be the black fanny-pack and holding an item in his hand that appeared to be a gun. Polanco allegedly shot the victim using a 10 mm Glock pistol which was later recovered from a black fanny-pack in the area of Snow Street.
Polanco is prohibited from possessing a firearm after being convicted of being a felon in possession of ammunition and distribution of cocaine base in March 2011.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Fitchburg Police Chief Ernst Martineau made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cocoa Man Sentenced to over 19 Years for Possessing A Firearm After Having Been Convicted of A FelonyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Raymond Lee Kelly (53, Cocoa) to 19 years and 7 months in federal prison for possessing a firearm as a convicted felon. Because of his extensive criminal record, which includes drug trafficking, resisting arrest with violence, battery on a law enforcement officer, and possession of a firearm in furtherance of a drug trafficking offense, Kelly qualified as an Armed Career Criminal and faced a 15-year minimum mandatory sentence. Kelly was also on supervised release from a federal prison sentence when he committed the recent offense. A federal jury had found Kelly guilty on September 1, 2020.
According to testimony and evidence presented at trial, Kelly, a convicted felon, fled from a traffic stop in Cocoa Beach—first in a car that he crashed shortly after fleeing—then on foot toward the beach. As he fled, he left behind cannabis, a digital scale, a Ruger semi-automatic handgun, and 16 rounds of ammunition. As a previously convicted felon, Kelly is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Cocoa Beach Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Chinese National Charged with Criminal Conspiracy to Export US Power Amplifiers to ChinaRead the Press Release
An indictment was unsealed this week charging Cheng Bo, also known as Joe Cheng, a 45-year-old national of the People’s Republic of China, with participating in a criminal conspiracy from 2012-2015 to violate U.S. export laws by shipping U.S. power amplifiers to China.
Cheng’s former employer, Avnet Asia Pte. Ltd., a Singapore company and global distributor of electronic components and related software, agreed to pay a financial penalty to the United States of $1,508,000 to settle criminal liability for the conduct of its former employees, including Cheng. As part of a non-prosecution agreement, Avnet Asia admitted responsibility for Cheng’s unlawful conspiracy to ship export-controlled U.S. goods with potential military applications to China, and also for the criminal conduct of another former employee who, from 2007-2009, illegally caused U.S. goods to be shipped to China and Iran without a license. This conduct violated the International Emergency Economic Powers Act.
The U.S. Department of Commerce (DOC) is also announcing today that Avnet Asia has agreed to pay an additional $1,721,000 as part of a $3,229,000 administrative penalty to resolve violations of the Export Administration Regulations.
“Avnet’s employees repeatedly falsified documentation in order to send export-controlled goods with potential military applications to China,” said Assistant Attorney General John C. Demers of the National Security Division. “What China cannot develop itself, it acquires illegally through others. This is yet another example of a proxy acting to further China’s malign interests.”
“We will not abide individuals or business organizations that would seek to harm our national security by illegally providing coveted U.S. goods with potential military applications to Iran or China,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia. “We will pursue wrongdoers no matter where they are located in the world.”
"The People's Republic of China is relentless in its pursuit of U.S. technology, much of which can be used for military purposes,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI is just as relentless in identifying and stopping those who violate export controls while doing business with China. Let us be clear, this is not business as usual. It is illegal and individuals and companies will pay a price for such violations."
“The indictment unsealed today serves as a warning to those who violate export control laws designed to protect our national and economic security,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Field Office. “The settlement with Avnet Asia announced today represents years of hard work on one of the FBI’s highest priorities – stopping the illegal export of U.S. technology to China. Regardless of their location, global corporations have a responsibility to follow U.S. law when selling American technology. Criminal and civil penalties await companies and individuals who fail to adhere to laws protecting sensitive U.S. technologies.”
“The Office of Export Enforcement remains committed to enforcing our nation’s export control laws by investigating domestic and overseas companies who intentionally divert sensitive U.S.-origin dual-use commodities to prohibited end users and nations without the required licenses or license exceptions,” said Acting Special Agent in Charge Aaron Tambrini of DOC Office of Export Enforcement’s (DOC-OEE) Chicago Field Office.
“The export of sensitive technology items to China or anywhere else in the world is tightly regulated for good reason,” said Special Agent in Charge David A. Prince of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles. “One of HSI’s top enforcement priorities is preventing U.S. military and dual-use products and sensitive technology from falling into the hands of those who might seek to harm America or its interests. We will continue to work closely with our law enforcement partners to aggressively target and investigate those who jeopardize our nation’s security – or the welfare of those devoted to protecting it.”
According to the indictment unsealed today, Cheng was a sales account manager with Avnet Asia, and he operated as a sales representative to a Hong Kong-based customer with whom Cheng had an ownership interest. Cheng submitted paperwork on behalf of the customer to purchase export-controlled U.S. goods, including power amplifiers. Cheng caused false statements to be made to the U.S. manufacturer of the power amplifiers that his customer would use the power amplifiers in Hong Kong when, in fact, Cheng knew that the goods would be illegally shipped from Hong Kong to China.
As part of the non-prosecution agreement, Avnet Asia admitted that from 2012-2015, Cheng caused at least 18 separate shipments of export-controlled goods to be sent from the United States to Hong Kong, knowing that the goods were intended to be subsequently shipped to China, and that the value of these illegal exports was at least $814,000. Avnet Asia also admitted that another sales account manager, this one based in Singapore, conspired to violate U.S. export control laws and economic sanctions from 2007 through 2009. The Singapore-based sales account manager helped two Singapore business organizations in their efforts to ship U.S. goods to Iran and China, including by helping to create documents falsely stating that the goods were destined only for Singapore. The Singapore-based sales account manager caused at least 29 separate Avnet Asia shipments of goods to be exported from the United States, knowing that the goods were intended to be subsequently shipped to Iran or China. The value of these goods was at least $347,000. Neither Avnet Asia nor anyone else applied for an export license from U.S. government authorities.
If convicted, Cheng would face up to 20 years of imprisonment and a fine of up to twice the value of the property involved in the illegal transactions. The facts alleged in the indictment are allegations, and criminal defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The FBI’s Minneapolis Field Office, DOC-OEE’s Chicago Field Office, and HSI Los Angeles investigated the case. Assistant U.S. Attorneys Michael J. Friedman and Thomas A. Gillice, and Justice Department National Security Division Trial Attorney David C. Recker, are representing the United States.