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16 March 2021
Indiana, PA Man Indicted for Illegally Possessing a Weapon while Subject to a Domestic Violence Protection from Abuse OrderRead the Press Release
PITTSBURGH, PA – An Indiana County resident has been indicted by a federal grand jury in Pittsburgh on a federal firearms violation, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Todd Matthew Jakosh, 33, of Indiana, Pennsylvania, as the sole defendant.
According to the Indictment, on or about August 7, 2020 the Jakosh possessed a firearm and ammunition even though he knew that he was subject to a domestic violence protection order. Federal law prohibits anyone who is subject to a protection from abuse (PFA) order from lawfully possessing a firearm or ammunition while the order is under effect.
According to a state criminal complaint, on August 7, 2020 at 10:26 a.m. Indiana Borough Police were dispatched to a Taco Bell on Oakland Avenue in Indiana County for a report of a domestic incident with shots fired. The victim, an employee of the restaurant, told police that Todd Jakosh had exited his vehicle, shot at her and left the scene headed toward town. Within the hour, Jakosh was taken into custody by officers and later charged by the state with Aggravated Assault, Aggravated Assault with a Deadly Weapon, Carrying a Firearm without a License, Discharging a Firearm into an Occupied Structure, Reckless Endangerment, Terroristic Threats, and Criminal Mischief. At the time of the shooting, Jakosh was subject to an active PFA order from the victim.
"Federal law provides that persons subject to qualifying Protection from Abuse orders may not possess firearms," stated Acting U.S. Attorney Kaufman. "This important federal law protects victims of domestic violence, and it will be aggressively enforced against abusers who illegally possess guns."
"Domestic violence is inexcusable," said Indiana County District Attorney Robert F. Manzi, Jr. "In partnership with local, state and federal authorities, we will continue to stand up for the victims of domestic abuse with every tool available. While the U.S. Department of Justice prosecutes Mr. Jakosh for their charge, my office will continue to our prosecution for the assault charges."
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana Borough Police Department conducted the investigation leading to the Indictment in this case. This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illinois Felon Sentenced to Prison for Possessing GunRead the Press Release
A man who illegally possessed a gun was sentenced today to more than two years in federal prison.
Rajih Rafee Donley, age 33, from Chicago, Illinois, received the prison term after an October 2, 2020 guilty plea to possession of a firearm by a felon.
At the plea hearing, Donley admitted he possessed a firearm in 2018 despite having a prior felony conviction. Donley had previously been convicted of felony offenses involving marijuana and cocaine in Illinois. In 2019, Donley was convicted in Iowa of willful injury causing serious injury, intimidation with a dangerous weapon, going armed with intent, and two counts of possessing a firearm as a felon.
Donley was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Donley was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
Donley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2035.
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Honduran Man Pleads Guilty to Transporting Illegal Aliens Within the United StatesRead the Press Release
Gulfport, Miss. – Jose Ceferino Guardado-Reyes, 38, and a citizen of Honduras who had been living in Texas, pled guilty today before U.S. District Judge Sul Ozerden, to transporting an illegal alien within the United States, announced Acting U.S. Attorney Darren J. LaMarca, Jack Stanton, Acting Special Agent-in-Charge of Homeland Security Investigations in New Orleans, and Michael J. Harrison, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Guardado-Reyes is scheduled to be sentenced by Judge Ozerden on June 16, 2021, at 9:30 a.m. He faces maximum penalties of 5 years in prison, a $250,000 fine, and $5,100 in special assessments.
On January 26, 2021, a U.S. Border Patrol Agent conducted a traffic stop on a 2010 white Ford F-150 on Interstate 10 eastbound near Mile Marker 50, in Jackson County. During the encounter, the Border Patrol Agent, who was speaking Spanish, determined that Guardado-Reyes and both of his passengers all were unlawfully present in the U.S. It also was determined that Guardado-Reyes was unlawfully transporting or smuggling his two passengers from Texas to Florida.
Acting U.S. Attorney LaMarca praised the cooperation exhibited by the Department of Homeland Security, United States Border Patrol, and Homeland Security Investigations. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Hazleton Man Sentenced to 84 Months’ Imprisonment for Heroin and Fentanyl TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced Yilber Rosario, age 32, of Hazleton, Pennsylvania, was sentenced to 84 months’ imprisonment followed by a four-year term of supervised release by United States District Court Judge Malachy E. Mannion for heroin and fentanyl trafficking offenses.
According to Acting United States Attorney Bruce D. Brandler, from approximately February 2018 through approximately July 2019, Rosario conspired with others to distribute approximately 200 grams of heroin (which is equivalent to approximately 2,000 individual doses) and approximately 350 grams of fentanyl.
The matter was investigated by the Drug Enforcement Administration (DEA) and its state and local partners, including the Pennsylvania State Police (PSP). Assistant U.S. Attorney Jeffery St John 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Former mayoral candidate charged with stealing from the Paycheck Protection ProgramRead the Press Release
ATLANTA - Olivia Ware, a former candidate for Mayor of the City of Conyers, has been arraigned on federal charges of bank fraud and money laundering stemming from a scheme to use a company she started to steal over $323,000 from the Paycheck Protection Program (PPP).
“Authorities continue to examine Paycheck Protection Program loans for acts of fraud, as the charges against Ware demonstrate,” said Acting U.S. Attorney Kurt R. Erskine. “Those who would consider stealing from the Paycheck Protection Program should think twice.”
“It has been said that bad times bring out the best in people, this case is not an example of that. Ware tried to defraud the government out of money meant to help small businesses affected by the pandemic continue operations and take care of their employees. Instead of helping others through a difficult time as the money was intended, she used the money for personal gain,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Every time a fraudster steals money from the PPP fund another legitimate business is unable to get those funds to help real employees with real families. HSI’s OPERATION STOLEN PROMISE protects the country from the threat of COVID-19-related fraud and criminal activity.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: The PPP is an emergency funding program created to assist small business owners and their employees during the coronavirus pandemic. PPP loans are fully guaranteed by the Small Business Administration (SBA).
In 2020, Olivia Ware was the CEO of a Georgia company called Let’s Talk About the Family, Inc., but according to state records, it did not pay wages to any employees. Yet, Ware allegedly submitted a false application to a bank for a PPP loan for the company that included fictitious tax records purporting to show the company had 54 employees that were paid hundreds of thousands of dollars in salary.
As a result of this materially false information, the bank loaned over $323,000 in PPP funds to Ware’s company. Ware then allegedly spent the PPP loan for her own benefit, including to buy an in-ground swimming pool, furniture, and other home improvement items, and to pay down the principal on her mortgage.
Ware, 61, of Oxford, Georgia, faces charges of bank fraud and money laundering. She was arraigned on a criminal information on March 16, 2021.
Members of the public are reminded that the criminal information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Bernita B. Malloy and Trevor C. Wilmot are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Scott AFB Airman Sentenced to Prison for Distributing Child PornographyRead the Press Release
East St. Louis, Ill. – Jace Faugno, 25, of Paducah, Kentucky, has been sentenced to 78 months in prison for two counts of distributing child pornography. Chief United States District Judge Nancy
J. Rosenstengel handed down the sentence, which includes 5 years of supervised release.
Faugno first came to the attention of law enforcement in September 2018, when a joint undercover investigation by the Air Force Office of Special Investigations (OSI) and the FBI caught him sending child pornography over Kik, a popular cell phone messaging application. At the time, Faugno was living in St. Louis, Missouri, and serving as an active duty Senior Airman at
Scott Air Force Base in St. Clair County, Illinois.During chat discussions with two different undercover agents, Faugno sent them each a video depicting a prepubescent girl being raped by an adult male. Faugno also solicited the agents to send him videos of child pornography and expressed an interest in meeting up with one agent to engage in sex acts with the undercover agent’s fictitious prepubescent daughter. Faugno ended his contact with the agents when they refused to provide him with videos of child pornography.
Faugno pled guilty to the charges in 2019. At his sentencing hearing, Faugno argued that his chats were merely a fantasy that he never intended to act upon. Judge Rosenstengel observed that while only Faugno was aware of his true intentions, “fantasy can turn into reality.”
The case was investigated by Air Force OSI and FBI Springfield and was prosecuted by
Assistant United States Attorney Christopher Hoell.Former Owners of Telemarketing Company Agree to Pay at Least $4 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Two Florida men have agreed collectively to pay at least $4 million to resolve allegations that they violated the False Claims Act by engaging in schemes to generate prescriptions for compounded drugs and refer those prescriptions to pharmacies in exchange for illegal kickbacks. Many of those prescriptions were billed to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees, and military dependents.
Jack Lee Stapleton, of Gulf Stream, Florida, and Jack Hunter Stapleton, of Fort Lauderdale, Florida, formerly owned a marketing business in Fort Lauderdale, Florida, which operated under various names, including CV McDowell LLC, and J&J Tel Marketing LLC (the Stapleton Entities). The United States alleged that the Stapleton Entities, under the Stapletons’ direction, used telemarketing to solicit prospective patients to accept compounded drugs regardless of patient need, procured prescriptions for those patients, and then sent those prescriptions to compounding pharmacies that agreed to pay the Stapleton Entities half of the amount TRICARE reimbursed for each prescription. The Stapletons and Stapleton Entities worked with pharmacies to identify compounded drug formulas that maximized the level of reimbursement for the drugs, regardless of the medical need for the chosen formula. They then sought to procure large volumes of prescriptions for those formulas. In many cases, the Stapleton Entities procured prescriptions by paying telemedicine providers who prescribed expensive compounded drugs without ever seeing the patients or conducting any meaningful medical examination.
“Kickback arrangements undermine confidence in our health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This case demonstrates how kickback schemes often result in the provision of medically unnecessary services at the taxpayer’s expense. The department is committed to holding accountable those who engage in such unlawful conduct.”
“This is another in a long line of this office’s civil and criminal prosecutions of pharmacies, marketers, and prescribers – both individual and corporate – who exploited the TRICARE program for their personal gain and at substantial expense to taxpayers,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We will continue to use all available resources to pursue those who defraud this and other federal healthcare programs and to return monies to those programs.”
“The Defense Criminal Investigative Service (DCIS) protects the integrity of Department of Defense programs, such as TRICARE, by rooting out those who choose to divert into their own pockets American taxpayer dollars intended to support our men and women in uniform,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Individuals who unjustly enrich themselves will be held accountable.”
“We are grateful to those who came forward to expose these fraudulent practices and vow to continue our efforts to protect taxpayers from fraudsters siphoning money from the nation’s health care system,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
As part of the settlement, the Stapletons have agreed to pay additional amounts in the event of certain contingencies.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dwayne Thornton against the Stapletons. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. Mr. Thornton is a former employee of one of the pharmacies to which the Stapleton Entities referred prescriptions. The share to be awarded from this settlement has not yet been determined. The qui tam case is captioned United States ex rel. Thornton v. National Compounding Co. et al., Case No. 8:15-cv-2647 (M.D. Fla.).
The resolutions obtained in this matter were the result of a coordinated effort between the Department of Justice Civil Division’s Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the Middle District of Florida, the FBI, and DCIS.
The matter was investigated by Trial Attorney Nathan Green and Assistant U.S. Attorney Charles Harden.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Owners of Telemarketing Company Agree to Pay at Least $4 Million to Resolve False Claims Act AllegationsRead the Press Release
Two Florida men have agreed collectively to pay at least $4 million to resolve allegations that they violated the False Claims Act by engaging in schemes to generate prescriptions for compounded drugs and refer those prescriptions to pharmacies in exchange for illegal kickbacks. Many of those prescriptions were billed to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees, and military dependents.
Jack Lee Stapleton, of Gulf Stream, and Jack Hunter Stapleton, of Fort Lauderdale, formerly owned a marketing business in Fort Lauderdale which operated under various names, including CV McDowell LLC, and J&J Tel Marketing LLC (the Stapleton Entities). The United States alleged that the Stapleton Entities, under the Stapletons’ direction, used telemarketing to solicit prospective patients to accept compounded drugs regardless of patient need, procured prescriptions for those patients, and then sent those prescriptions to compounding pharmacies that agreed to pay the Stapleton Entities half of the amount TRICARE reimbursed for each prescription. The Stapletons and Stapleton Entities worked with pharmacies to identify compounded drug formulas that maximized the level of reimbursement for the drugs, regardless of the medical need for the chosen formula. They then sought to procure large volumes of prescriptions for those formulas. In many cases, the Stapleton Entities procured prescriptions by paying telemedicine providers who prescribed expensive compounded drugs without ever seeing the patients or conducting any meaningful medical examination.
“Kickback arrangements undermine confidence in our health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This case demonstrates how kickback schemes often result in the provision of medically unnecessary services at the taxpayer’s expense. The department is committed to holding accountable those who engage in such unlawful conduct.”
“This is another in a long line of this office’s civil and criminal prosecutions of pharmacies, marketers, and prescribers – both individual and corporate – who exploited the TRICARE program for their personal gain and at substantial expense to taxpayers,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We will continue to use all available resources to pursue those who defraud this and other federal healthcare programs and to return monies to those programs.”
“The Defense Criminal Investigative Service (DCIS) protects the integrity of Department of Defense programs, such as TRICARE, by rooting out those who choose to divert into their own pockets American taxpayer dollars intended to support our men and women in uniform,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Individuals who unjustly enrich themselves will be held accountable.”
“We are grateful to those who came forward to expose these fraudulent practices and vow to continue our efforts to protect taxpayers from fraudsters siphoning money from the nation’s health care system,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
As part of the settlement, the Stapletons have agreed to pay additional amounts in the event of certain contingencies.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dwayne Thornton against the Stapletons. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. Thornton is a former employee of one of the pharmacies to which the Stapleton Entities referred prescriptions. The share to be awarded from this settlement has not yet been determined. The qui tam case is captioned United States ex rel. Thornton v. National Compounding Co. et al., Case No. 8:15-cv-2647 (M.D. Fla.).
The resolutions obtained in this matter were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the Middle District of Florida, the FBI, and DCIS.
The matter was investigated by Trial Attorney Nathan Green and Assistant U.S. Attorney Charles Harden.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Newark High School Faculty Member Pleads Guilty to Production and Possession of Child Pornography, Faces up to 50 Years in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Holland, 29, of Newark, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to production of child pornography and possession of child pornography involving prepubescent minors. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 50 years, lifetime supervised release, and a $500,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between 2016 and 2020, the defendant, who was formerly employed as a Teaching Assistant in the Newark, NY, Central School District, and a teacher/assistant at the Canandaigua, NY, YMCA, engaged in a series of child exploitation and child pornography crimes, including coercing minors both known and unknown to him to produce child pornography via social media; surreptitiously recording minors in states of undress in their homes, surreptitiously recording minors in states of undress at a YMCA where he was employed, surreptitiously recording minors and others in states of undress at his Newark photography studio “Illumination Images,” and downloading and possessing hundreds of images and videos of pre-existing child pornography via the internet.
The defendant posed as a 14-16 year-old male and used the Snapchat account “Tjohnson755” and the Instagram account “TimJ755,” to engage minors in sexually explicit conversations. Holland would begin in neutral conversation, then would send pictures of an attractive teenaged boy, before transitioning the conversation to sexual topics and demanding that the minors produce and send to him nude or semi-nude photographs – to include the minors’ faces. The defendant often played upon his victims’ insecurities, paying them compliments and promising that he would delete their photos and would not share them. In some cases, once he obtained nude or semi-nude photographs, Holland would ask for more sexually explicit photographs involving sex acts. If a minor declined, the defendant threatened to share their previous images over the Internet. Since the defendant knew many of the minors through his employment with the Newark Central School District, he sometimes made specific threats involving the minors actual addresses, relatives, and schools, causing the minors, most of whom were 13 to 16 years old, to suffer extreme anxiety and fear.
The defendant’s conduct was first discovered when a minor victim in Virginia reported to police that Holland had coerced her into sending him sexually explicit photographs and videos. An investigation by the Loudoun County, Virginia, Sheriff’s Office led to the discovery of dozens of victims in the Western District of New York, and coordination with the Newark Police Department, the Wayne County Sheriff’s Office, the Canandaigua Police Department, and the Department of Homeland Security.
In addition to coercing minors to produce child pornography via social media and the internet, Holland also engaged in the following conduct:
• Between October 2019, and February 14, 2020, while employed as a teacher/assistant at the before and after school childcare program at the Canandaigua YMCA, the defendant was responsible for supervising children 3 to 12 years old. On at least one occasion, Holland entered the family locker room and photographed approximately 5 female children in his care as they were changing out of their swimsuits after swimming in the YMCA pool.
• Between February 18, 2019, and February 20, 2020, Holland surreptitiously recorded a 10-11 year-old girl in various stages of undress in the bathroom of her home in Newark.
• On April 17, 2016, the defendant surreptitiously recorded a 10 year-old female in various stages of undress in the bathroom of her home in Marion, NY.
• Prior to his arrest in May 2020, Holland was also the owner and operator of Illumination Images located in Newark. Using this business, the defendant surreptitiously recorded minors in various states of undress by placing a hidden recording device inside of the studio changing room.
The defendant also possessed hundreds of images and videos of child pornography that he obtained via the Internet, including images and videos depicting the sexual abuse of prepubescent minors, to include toddlers, and children being subjected to violence.
The plea is the result of an investigation by the Loudoun County, VA, Sheriff’s Office, under the direction of Sheriff Michael L. Chapman; the Newark, NY Police Department, under the direction of Chief Mark Thoms; the Wayne County Sheriff’s Office, under the direction of Sheriff Berry Virts; the Canandaigua, NY Police Department, under the direction of Chief Stephen Hedworth; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 17, 2021, at 9:15 a.m., before Judge Siragusa.
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Former Echo Housing Corporation Executive Director Sentenced on Three Counts of TheftRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Stephanie TenBarge, 73, of Evansville, Indiana, was sentenced to two years’ probation by U.S. District Judge Richard Young. TenBarge previously worked as the Executive Director at Echo Housing Corporation, where she embezzled more than $102,000 of funds over a three-year period from the organization which received federal, state, and local tax dollars.
Echo Housing Corporation is a non-profit organization based in Evansville. Echo’s mission is to create and sustain safe and affordable housing, provide supportive services, and promote community development for homeless men, women, children, and veterans.
“The citizens of Vanderburgh County and the State of Indiana deserve better from officials in positions of trust,” said Childress. “Citizens should be confident that taxpayer funds are used to help those in need, not line the pockets of those in power.”
TenBarge served as Executive Director of Echo Housing Corporation and in that role had the primary responsibilities of bookkeeping, balancing bank statements, and preparing finance reports and records for Echo’s Board of Directors to approve. TenBarge maintained and controlled Echo’s checking accounts and had the ability to direct funds from the organization’s accounts to herself and other individuals.
From January 1, 2015 through December 31, 2017, TenBarge embezzled funds from Echo Housing Corporation by making unauthorized payments to herself and issuing unauthorized payroll checks to herself. In addition, TenBarge used Echo funds to pay property taxes for her personal residence; purchase a heat pump for her home; and pay individuals to perform maintenance inside her home and the surrounding property. During this time period, Echo received federal funds from the U.S. Department of Housing and Urban Development, the U.S. Department of Justice, and the U.S. Department of Labor.
This investigation was a collaborative effort between the Federal Bureau of Investigation, Evansville Police Department, U.S. Department of Housing and Urban Development Office of Inspector General, Indiana State Board of Accounts, and United States Secret Service.
“Ms. TenBarge abused her official position to pad her pockets with taxpayer funds for nothing more than simple greed and, in doing so, victimized those she should have been serving,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will continue our mission to root out public officials who commit federal crimes and ensure they are held accountable for their actions.”
“This case should serve as a reminder that the American people will not stand for those in power to take advantage of their position and take from those they have been charged to help,” said Eric Reed, Special Agent in Charge of the Indianapolis Field Office. “The Secret Service is proud to work with the Federal Bureau of Investigation, Housing and Urban Development Office of Inspector General, Evansville Police Department and the U.S. Attorney’s Office, especially on cases as important as this one.”
“This sentencing represents our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to illegally benefit from them.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, TenBarge must also pay $90,513.95 in restitution to Echo Housing Corporation.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and violate the public trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.3.
Former Chief Investment Officer Admits Bank Fraud Relating to $91.5 Million Commercial LoanRead the Press Release
NEWARK, N.J. – A former chief investment officer of a medical property management company pled guilty today to a bank fraud conspiracy involving a $91.5 million commercial mortgage loan, Acting U.S. Attorney Rachael A. Honig announced.
Barton Schack, 65, of Ringwood, New Jersey, was charged by information with one count of conspiracy to commit bank fraud. United States District Court Judge Madeline Cox Arleo accepted the guilty plea.
According to documents filed in this case and statements made in court:
Schack was the chief investment officer of Regent Medical Properties (“Regent”), a property management company located in Glen Rock, New Jersey. Sovereign Medical Services, and affiliates (“Sovereign”), was a network of multi-specialty, out-patient medical practices headquartered in Glen Rock, New Jersey, with various practice locations. Co-conspirator 1 was the founder and chief executive officer of both Regent and Sovereign.
In April 2016, Schack and Co-conspirator 1 used fraudulent representations to obtain a $91.5 million loan (the “Mortgage Loan”) from Lender 1 and others secured by thirteen medical office buildings in New Jersey, New York, and Florida (the “Medical Properties”). The borrowers in the Mortgage Loan were thirteen separate special purpose entities—majority-owned by Co-conspirator 1—one for each collateral property (collectively, the “Borrowers”).
Schack and Co-conspirator 1 exploited the fact that, through Sovereign, Co-conspirator 1 controlled approximately half of the tenants in the Medical Properties. Schack and Co-conspirator 1 misrepresented to Lender 1 the physical occupancy status of certain affiliated tenants and the Medical Properties’ true rental income.
After the Mortgage Loan closed, Schack and Co-conspirator 1 continued their scheme to conceal the actual financial status of the Medical Properties by submitting fraudulent financial statements to the loan servicer on a monthly basis. Those misrepresentations allowed Schack and Co-conspirator 1 to avoid accelerated payment on the Mortgage Loan.
Finally, after the Mortgage Loan closing, Schack and Co-conspirator 1 diverted rent payments owed through the “lockbox” account procedure specified in the Mortgage Loan agreement. Instead, Schack and Co-conspirator 1 used the funds for both Regent’s operating expenses and Co-conspirator 1’s personal expenses, including credit card bills of up to approximately $80,000 per month and private jet payments. Through such means, Co-conspirator 1 diverted millions of dollars in rental payments from the “lockbox” account over the course of the Mortgage Loan for his own personal use.
Shortly after the closing of the Mortgage Loan in April 2016, Lender 1 sold its interest into two commercial mortgage-backed security loans. By 2019, approximately three years after the closing of the Mortgage Loan, the Borrowers were sixty days behind on loan payments, and administration of the loan was referred to a special servicer. In February 2020, the Borrowers declared bankruptcy.
The conspiracy to commit bank fraud count carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch, Jr., and IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Shawn Barnes of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Brent Culpepper, Esq.
Former Bank Teller Sentenced to Fifteen Months in Jail for Stealing from Wells Fargo Bank CustomersRead the Press Release
WASHINGTON – Tiara Langston, 29, of District Heights, Maryland, was sentenced Thursday in the United States District Court for the District of Columbia to 15 months of incarceration for her role in a scheme that bilked Wells Fargo customers of $124,000 from their accounts. United States District Court Judge Royce C. Lamberth imposed the sentence, also ordering Langston to pay restitution to Wells Fargo which incurred losses on behalf of its customers.
Langston pleaded guilty on November 30, 2020. In entering her plea, Langston admitted to participating in a scheme to steal from Wells Fargo’s customers while she was employed at the bank as a teller during 2017. According to the government’s evidence, Langston used Wells Fargo’s systems to check the account balances of customers without customers’ knowledge. Langston would then share with a confederate the customer’s name and account balance. The confederate then entered the bank and withdrew funds from the customer’s account by presenting a forged signature for the customer. The conspirators used this scheme to steal $124,000 in cash and an $80,000 cashier’s check from two of the bank’s customers. Wells Fargo was able to detect the theft and stop payment of the $80,000 cashier’s check, thus incurring total losses on behalf of its customers in the amount of the $124,000 in cash that Langston and others stole.
In announcing the sentence, Acting U.S. Attorney Channing D. Phillips commended the work of the Federal Bureau of Investigation, Washington Field Office, which investigated the case. He also acknowledged the work of those who are handling the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Frijas and Assistant U.S. Attorney John W. Borchert.
Former Background Investigator for Federal Government Pleads Guilty to Making a False StatementRead the Press Release
WASHINGTON – Lucia Rose DiEmidio, 28, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from her falsification of work on background investigations of federal employees and contractors, announced Acting U.S. Attorney Channing D. Phillips.
DiEmidio, of Bohemia, New York, pled guilty in the United States District Court for the District of Columbia to making a false statement. The Honorable Trevor N. McFadden scheduled sentencing for June 1, 2021. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000.
According to the government’s evidence, DiEmidio was employed by a private contractor that had a contract to supply background investigations on behalf of OPM’s Federal Investigative Services, which subsequently became known as OPM’s National Background Investigations Bureau (NBIB). DiEmidio admitted that, between approximately March 2017 and August 2017, she submitted Reports of Investigation for background investigations in which she falsely represented, about 26 times, that she had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, DiEmidio had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
On October 1, 2019, the functions and personnel of National Background Investigations Bureau were transferred to the Defense Counterintelligence and Security Agency (DCSA). DeEmidio’s conduct occurred prior to the transition and while conducting work on behalf of OPM.
The false representations by DiEmidio have required OPM and DCSA to reopen and rework numerous background investigations that were assigned to her during the time period of her falsifications, at an estimated cost of at least $86,562 to the federal government.
OPM’s Federal Investigative Services and National Background Investigations Bureau had a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to DiEmidio, more than 30 other background investigators have been convicted of charges.
In announcing the plea, Acting U.S. Attorney Phillips commended the efforts of Special Agent Christopher J. Sulhoff, Office of the Inspector General, OPM; and Dale A. Walker, Office of the Inspector General, Defense Counterintelligence and Security Agency. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Angeline Thekkumthala, Assistant U.S. Attorney Joshua Rothstein, and former Assistant U.S. Attorney Bianca Forde, who investigated and prosecuted the matter.
Floridian Pleads in Cross-Country Marijuana Trafficking Conspiracy that Distributed on Western PA College CampusesRead the Press Release
PITTSBURGH - A Florida resident pleaded guilty in federal court to a charge of conspiracy to distribute marijuana, Acting United States Attorney Stephen R. Kaufman announced today.
Ryan Hendrix, age 32, of Lighthouse Point, Florida, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration and other agencies conducted a multi-year investigation of the marijuana trafficking conspiracy of Hendrix and his co-conspirators. From 2012 through 2017, Hendrix and his co-conspirators arranged for marijuana to be supplied from the West Coast and mailed to the Pittsburgh area through the United States Postal Service. Hendrix’s co-conspirators would then distribute the marijuana in the Western District of Pennsylvania, primarily on college campuses, such as Indiana University of Pennsylvania.
Judge Cercone scheduled sentencing for July 22, 2021. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Indiana Borough Police conducted the investigation that led to the prosecution of Hendrix. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Florida drug trafficker caught with 78 pounds of meth in a traffic stop near Columbus sentenced to 11 years in prisonRead the Press Release
BILLINGS – A Florida man who admitted trafficking methamphetamine after the Montana Highway Patrol found 78 pounds of the drug during a traffic stop in one of the state’s largest seizures was sentenced today to 11 years in prison and to five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Nicholas James Imhoff, 30, of Cape Coral, Florida, pleaded guilty on Sept. 9, 2020 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
“With this traffic stop of Mr. Imhoff’s vehicle, the Montana Highway Patrol prevented a staggering amount of nearly pure methamphetamine from hitting the streets and harming communities. The U.S. Attorney’s Office is dedicated to dealing with the problem of meth in our communities. We need to reduce both supply and demand. One way to reduce supply is demonstrated by this case. Meth traffickers caught in Montana will be investigated and prosecuted to the full extent of the law,” Acting U.S. Attorney Johnson said.
"Meth is the driving force behind the surge in violent crime across our state in recent years. One Highway Patrol trooper’s vigilance resulted in one of the largest drug interdictions in state history and kept a massive amount of meth off the streets. The Highway Patrol and entire Montana Department of Justice will continue to pursue and crack down on the people who are flooding our communities with dangerous drugs,” Montana Attorney General Austin Knudsen said.
The government said in court documents filed in the case that on Feb. 11, 2020, a Montana Highway Patrol trooper stopped a vehicle for speeding on Interstate 90 near Columbus. Imhoff, the driver and sole occupant, told the trooper he was headed back to work in the oilfields in North Dakota. Imhoff's explanations and other observations led the trooper to suspect Imhoff was transporting drugs.
Imhoff's vehicle was impounded and the officer obtained a Montana search warrant. During a search of the vehicle, officers seized about 78 pounds of meth, which is the equivalent of 282,672 doses. The meth was located under a floor storage compartment in the second seat area and was in white plastic garbage bags. Some of the meth was packaged in vacuum sealed plastic bags and some was wrapped in duct tape. An analysis by a Drug Enforcement Administration lab determined the meth was 98 percent pure. The street value of the meth was estimated at between $624,000 to $1,248,000. The seizure was one of the largest meth seizures in Montana.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the Drug Enforcement Administration and the Montana Highway Patrol.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Florida Man Sentenced to 10 Years for Distributing FentanylRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard has sentenced Wendell Mario Roy (39, Taylor, MI), a/k/a Chico, to 10 years in federal prison for conspiracy to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and conspiracy to commit money laundering. He was also ordered to serve a 5-year term of supervised release.
Roy had pleaded guilty on September 3, 2020.
According to court documents, Roy utilized different “trap houses” in Jacksonville to distribute heroin and fentanyl. As part of a Drug Enforcement Administration investigation, agents learned that a package was deposited into the U.S. mail and addressed to one of Roy’s trap houses. The package was intercepted in Jacksonville, where a law enforcement drug canine alerted to the presence of drugs inside the package. A federal search warrant executed on the package revealed a toy truck with a small package taped to the underside of the truck, and containing a white compressed powdery substance, later determined to be fentanyl (92 grams).
Further investigation uncovered the full extent of the distribution network, resulting in Roy being held responsible for over 400 grams of fentanyl. The investigation also revealed bank accounts that Roy used to launder thousands of dollars in drug proceeds.
“Fentanyl destroys lives, wrecks families, and threatens communities. The fight against the opioid scourge is real,” stated Assistant Special Agent in Charge Ronald Loecker of IRS Criminal Investigation. “IRS Special Agents are firmly resolved to lend their financial expertise to track down those who profit from the sale of this and other illicit drugs.”
This case was investigated by Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Beatriz Gonzalez and Frank Talbot.
Final Defendant Sentenced to 284 Months in Methamphetamine Trafficking ConspiracyRead the Press Release
COVINGTON, Ky. – A Florence man, John P. Darnell, 65, was sentenced on Friday to 248 months in federal prison, by U.S. District Judge David Bunning, for conspiring with others to distribute methamphetamine and possession of a firearm by a convicted felon.
According to his guilty plea agreement, Darnell conspired with others to distribute 500 grams of more of methamphetamine, between March 1, 2019 and December 11, 2019. Specifically, Darnell admitted that law enforcement executed a search warrant on a residence and located three firearms and four baggies of methamphetamine that belonged to him. Darnell further admitted that he was a convicted felon and was prohibited from possessing a firearm.
Darnell pleaded guilty in July 2020.
Darnell’s co-defendants were previously sentenced. Buddy J. Pauly received 72 months in prison and three years of supervised release. Lori A Wilson received 30 months in prison and five years of supervised release.
Under federal law, Darnell and his co-defendants must serve 85 percent of their prison sentences. Darnell will be under the supervision of the U.S. Probation Office for five years, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; and Robert Brown, Special Agent in Charge, FBI, Louisville Field Division, jointly announced the sentencing.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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 Eastern District of Kentucky, the U.S. Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s targeted 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. Click here for more information about Project Guardian.
Federal Jury Convicts Ocala Man for Narcotics and Firearm ChargesRead the Press Release
Ocala, Florida – A federal jury has found Michael Kendrick (35, Ocala) guilty of possession of a controlled substance with intent to distribute, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a convicted felon. Kendrick faces a mandatory minimum penalty of 15 years, and up to, life in federal prison. His sentencing is scheduled for June 21, 2021.
Kendrick was originally indicted on February 5, 2020.
According to testimony and evidence presented at trial, on July 6, 2019, at approximately 1:30 a.m., an Ocala Police Department officer stopped Kendrick for committing a traffic offense. Kendrick immediately fled from the vehicle, discarding a plastic bag containing 29 individual packets of eutylone, a controlled substance. The officer gave chase and apprehended Kendrick. A search of the vehicle revealed a loaded handgun, along with paraphernalia used for distributing narcotics. Kendrick also had three cellphones and $1,844 in currency on his person. Kendrick’s DNA was also found on the recovered firearm.
As a multi-convicted felon, a career offender and armed career criminal, Kendrick is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Tyrie K. Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Federal Detainee at Allegheny County Jail Charged with Illegally Possessing a Cell PhoneRead the Press Release
PITTSBURGH – An inmate at Allegheny County Jail, located in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on a charge of possessing contraband while in prison, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dana Lamont Henderson, age 39, a federal pretrial detainee at the Allegheny County Jail, as the sole defendant.
According to the Indictment, Henderson was charged with possessing a cell phone while in custody, a prohibited object for inmates.
The law provides for a maximum total sentence of not more than one year in prison, a fine not to exceed $100,000.00, a term of supervised release of not more than 1 year, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fayette County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pleaded guilty today to being a felon in possession of firearms. Jonathan Fields, 38, was indicted by a federal grand jury in August 2020, and charged with two counts of being a felon in possession of ammunition and one count of being a felon in possession of firearms.
According to the plea agreement and statements made in court, Fields admitted that during the early morning hours of November 6 and 7, 2019, he was illegally hunting deer in Nicholas County, and shot two deer without a license and out of season. While doing so, he possessed two rifles, a Bushmaster Firearms 5.56 caliber rifle, with a 30-round capacity magazine, and a Remington .243 caliber rifle. On November 12, 2019, Fields left the two firearms at the home of a friend in Summersville where they were later recovered by law enforcement officers with the West Virginia Department of Natural Resources (DNR). Fields further admitted that at the time he possessed the two rifles he had previously been convicted of voluntary manslaughter in the Circuit Court of Nicholas County in 2013.
Fields faces up to 87 months in prison when sentenced on June 14, 2021.
The West Virginia Division of Natural Resources conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nowles Heinrich is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00128.
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El Paso Tax Preparer Indicted for Underreporting IncomeRead the Press Release
El Paso businessman, 59-year-old Victor Manuel Gonzalez, sole proprietor of the now-closed Tax Preparation Service, allegedly underreported his income on personal tax returns causing a tax loss of over $100,000, announced U.S. Attorney Ashley C. Hoff and Special Agent in Charge Richard D. Goss, Internal Revenue Service Criminal Investigation (IRSCI), Houston Field Office.
A federal grand jury indictment unsealed last week charges Gonzalez with three counts of filing a false federal income tax return. The indictment alleges that Gonzalez filed fraudulent returns for three years. Gonzalez claimed his income was $17,462, $18,450 and $25,328 for tax years 2014, 2015 and 2016, respectively. Court testimony today revealed that Gonzalez actually earned over $350,000 during that period. In addition to underreporting his yearly income, Gonzalez applied for and improperly received funds through the Earned Income Tax Credit (EITC). EITC is a refundable tax credit for low to moderate income workers.
Federal authorities arrested Gonzalez on March 3, 2021. During Gonzalez’s detention hearing this morning, U.S. Magistrate Judge Anne T. Berton set bond at $25,000.
“Filing a tax return is one of the biggest financial transactions an average American taxpayer makes each year and the tax return preparer industry is at the dawn of a new era of accountability,” said IRS Criminal Investigation Special Agent in Charge Goss. “The indictment of Victor Manuel Gonzalez demonstrates the IRS is taking extra steps this tax season, and planning more actions in future years, to help make sure people can count on their tax return preparer.”
The IRSCI investigated and Assistant U.S. Attorney Michael Osterberg is prosecuting this case.
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El Paso Man Sentenced to Federal Prison for Trafficking Meth and Assaulting Co-DefendantRead the Press Release
A federal judge in El Paso sentenced 53-year-old Gerardo Paz to 190 months of imprisonment followed by five years of supervised release for methamphetamine trafficking and assaulting his co-defendant while in custody, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Luis Quesada, El Paso Division; and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Field Office.
“Methamphetamine destroys lives and ruins families. Those that peddle this dangerous, illegal drug in our communities should know that profiteering from death and destruction will not be tolerated. Today’s 190-month sentence should serve as a warning to those that choose to bring this poison into the El Paso community,” said U.S. Attorney Hoff.
On January 2, 2020, Paz pleaded guilty to conspiracy to possess with intent to distribute more than five kilograms of methamphetamine. According to court records, on June 20, 2019, federal agents witnessed Paz transport and deliver approximately eight kilograms of methamphetamine to the El Paso residence of his co-defendant, Francisco Contreras. On January 4, 2020, Paz confronted and physically assaulted Contreras in the detention holding facility’s visitation area.
On January 15, 2020, U.S. District Judge Kathleen Cardone sentenced Contreras to 30 months in federal prison followed by five years of supervised release. Contreras earlier pleaded guilty to one count of conspiracy to possess with intent to distribute more than five kilograms of methamphetamine.
“With this conviction, FBI and our law enforcement partners are working together to have a positive impact at the local level,” said FBI Special Agent in Charge Quesada. “We are sending a strong and unified message that drug trafficking will not be tolerated, and, in turn, we are keeping our communities safer and free from methamphetamine which continues to cause horrific damage in too many of our communities.”
“The sentencing of Gerardo Paz exemplifies DEA’s relentless commitment to keep dangerous drugs and those who traffic them off of our streets,” said DEA Special Agent in Charge Williamson. “DEA, along with our federal and local law enforcement partners, will continue to focus on these drug trafficking organizations that try and spread this kind of poison in our communities.”
These sentences resulted from an investigation by the FBI/DEA Strike Force. The Strike Force is a multi-agency task force established to disrupt and dismantle major drug trafficking organizations. The El Paso Police Department, U.S. Customs and Border Protection and the U.S. Border Patrol assisted with this investigation. Assistant U.S. Attorney Kyle Myers prosecuted this case.
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El Paso Man Sentenced to Federal Prison for Cocaine TraffickingRead the Press Release
A federal judge in El Paso sentenced 34-year-old Daniel Leal yesterday to 87 months of imprisonment for cocaine trafficking, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Luis Quesada, El Paso Division; and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Field Office.
In addition to the prison term, U.S. District Judge David C. Guaderrama ordered that Leal be placed on supervised release for a period of three years after completing his prison term.
On September 22, 2020, Leal pleaded guilty to conspiracy to possess with intent to distribute more than five kilograms of cocaine. According to court records, on April 10, 2020, El Paso Police officers conducted a traffic stop on a vehicle driven by David Lightbourn, 46, of El Paso. A canine unit alerted to an odor of narcotics. Officers subsequently discovered approximately eight kilograms of cocaine inside the vehicle. Further investigation revealed that the cocaine was being delivered at Leal’s direction.
By pleading guilty, Leal accepted responsibility for the cocaine discovered by authorities on April 10, 2020. Furthermore, Leal accepted responsibility for nine kilograms of cocaine delivered from El Paso to Kansas City, Missouri on March 4, 2020 as well as $219,000 derived from the delivery of the cocaine. El Paso police seized the currency from Lightbourn following a traffic stop on his return trip to El Paso. By pleading guilty, Leal also admitted to buying approximately 18,000 rounds of ammunition intended for illegal exportation into Mexico. That ammunition was seized by FBI in July 2019 as part of an on-going investigation.
Leal has remained in federal custody since his arrest on April 27, 2020.
On January 6, 2021, Lightbourn pleaded guilty to one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine. He faces between 10 years to life in federal prison. Sentencing is scheduled for April 19, 2021, before U.S. District Judge Guaderrama.
These sentences resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Plumba conducted by the FBI, DEA, U.S. Customs and Border Protection and El Paso Police Department.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply. Assistant U.S. Attorney Richard Watts prosecuted this case.
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Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyrone Wyatt-Smith, of Detroit, Michigan, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Wyatt-Smith, also known as “Fetty,” 28, pleaded guilty today to one count of “Distribution of Oxycodone.” Wyatt-Smith admitted to selling Oxycodone in April 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Dayton ‘investigation & security’ business owner sentenced to prison for COVID-relief fraudRead the Press Release
DAYTON – A Dayton woman was sentenced in federal court today to prison for fraudulently obtaining more than $2.5 million in pandemic relief loans.
Nadine Consuelo Jackson, 32, was sentenced to 24 months in prison for committing wire fraud and making a false statement to a bank related to two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). The PPP and EIDL programs provide emergency financial assistance to businesses suffering the economic effects caused by the COVID-19 pandemic. The CARES Act of 2020 created the PPP and expanded the EIDL Program.
“The Pandemic has brought out the best in people. And, as this case unfortunately demonstrates, it has also brought out the worst in people. Jackson defrauded programs that were meant to keep workers on the job at businesses suffering because of the pandemic,” Acting U.S. Attorney Vipal J. Patel said. “She lied to steal millions of public dollars for her own pockets at a time when Americans were suffering the effects of public health and economic crises. This office will continue to pursue any fraudulent opportunists like Jackson. Her prison sentence should serve as a warning to anyone else considering this conduct.”
According to court records, Jackson fraudulently sought forgivable PPP loans in the amount of $1.3 million and $1.2 million from financial institutions by claiming to have more than 70 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, there were few or no other employees working at Extract LLC.
On two occasions Jackson listed 73 Extract LLC employees with payroll wages totaling approximately $500,000 on loan application reports. Loans totaling more than $1 million were initially wired to Jackson’s accounts and then flagged. The bank recalled one loan and the Government seized the other.
Jackson also applied for and received $54,000 in EIDL funding from the Small Business Administration. In that loan application, Jackson stated Extract LLC had eight employees. She then wired the funds in five transactions to another account. That money has since been seized by the Government as well.
Four “employees” named on Jackson’s applications were interviewed by agents and stated they did not work for the company. Three of the individuals interviewed stated they had never heard of Extract LLC.
The defendant pleaded guilty in November 2020 to wire fraud and making false statements.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Sharon Johnson, Special Agent in Charge, Small Business Administration Office of the Inspector General (SBA-OIG); and Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI) announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorneys Elizabeth R. Rabe and Peter K. Glenn-Applegate are representing the United States in this case.
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Convicted Felon with Violent Criminal History Faces Ten Years Imprisonment for Illegally Possessing A FirearmRead the Press Release
MACON, Ga. – A convicted felon with a violent criminal history is facing a maximum ten years in federal prison for illegally possessing a firearm, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Janorick Antwon Ford, 36, of Milledgeville, Georgia, pleaded guilty to one count possession of a firearm by a convicted felon before U.S. District Judge Marc Treadwell. Ford faces a maximum ten years in prison to be followed by three years of supervised release and a $250,000 fine. Ford will be sentenced on June 10, 2021. There is no parole in the federal system.
“The U.S. Attorney’s Office is working closely with law enforcement in the Milledgeville area and across the Middle District of Georgia to identify violent and repeat felons in illegal possession of guns for federal prosecution,” said Acting U.S. Attorney Leary. “I want to thank the law enforcement agencies involved in this case for their continued efforts to reduce violent crime in our communities.”
“If convicted violent felons want to continue wreaking havoc in our communities, we have laws to help keep them off the streets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to an alert Baldwin County Sheriff deputy and our law enforcement partnerships, Ford was charged with a federal felony that will remove him from our community for a long time.”
On February 10, 2020 at 10:20 a.m., Ford was stopped for a routine traffic violation by a Baldwin County Sheriff’s Office deputy. The deputy smelled marijuana and observed an open container of alcohol inside the vehicle. Following a legal search of the vehicle, which included the seizure of six bags of suspected drugs and digital scales, along with other illegal drug paraphernalia, deputies found a loaded 9mm caliber pistol in the glove compartment. Ford was previously convicted of aggravated assault in Baldwin County Superior Court and possession of cocaine in Hancock County Superior Court. Ford admitted the loaded weapon was his and that it was illegal for him to possess a gun given his felony history.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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/archives/projectguardian.
The case was investigated by the Baldwin County Sheriff’s Office, the Ocmulgee Drug Task Force and the FBI-Macon Field Office. Criminal Chief Michael Solis and Assistant U.S. Attorney Paul McCommon are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Colorado Man Charged with Possessing MethRead the Press Release
PITTSBURGH – Steve Garduno was indicted by a federal grand jury in Pittsburgh for methamphetamine trafficking, Acting United States Attorney Stephen R. Kaufman announced today.
The Indictment charges Garduno, age 50 of Strasburg, Colorado, with possessing with intent to distribute 50 grams or more of a mixture containing methamphetamine on October 28, 2020.
The law provides for a maximum total sentence of at least ten years and up to life in prison and a fine of up to $8,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller and Special Assistant United States Attorney/Mercer County Assistant District Attorney Shane T. Crevar are prosecuting this case on behalf of the United States.
The Greenville Police Department and the Drug Enforcement Administration conducted the investigation leading to the return of the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cincinnati Man Sentenced to 174 Months for CarjackingRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Sammie Green, 25, was sentenced to 174 months in federal prison on Tuesday, by U.S. District Judge David Bunning, after previously pleading guilty to carjacking and discharging a firearm in furtherance of a crime of violence.
According to his plea agreement, Green admitted that, on August 15, 2019, he got into a domestic dispute with his girlfriend, during which a pizza delivery driver arrived. His girlfriend and her children fled from Green and asked the delivery driver to call the police. As the delivery driver called the police, Green fired multiple shots from a handgun. Green then approached the delivery driver, pointed the gun at him, and demanded the keys of his vehicle. When the delivery driver complied, Green fled in the stolen vehicle.
Green pleaded guilty to the charges in September 2020.
Under federal law, Green must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, following his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Michael Helmig, Boone County Sheriff, jointly announced the sentence.
The investigation was conducted by the ATF and Boone County Sheriff’s Department. The United States was represented by Assistant U.S. Attorneys Tony Bracke and Kyle M. Winslow.
Cheraw Man Sentenced to Nearly Seven Years for Transferring Obscene Material to Minor After Multi-State OperationRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Nathan Branham, 40, of Cheraw, was sentenced to nearly seven years in federal prison after pleading guilty to transferring obscene material to a minor and having his federal supervised release revoked.
Evidence presented to the Court showed that Branham, who was on supervised release for a previous federal conviction for being a felon in possession of a firearm, coerced a 13-year-old minor in Kentucky to speak with him via video chat and threatened to come to her home if she did not expose herself to him. After she complied, Branham exposed himself to the minor.
“This office will always protect children and will act swiftly to prosecute those who seek to do them harm,” said Acting U.S. Attorney DeHart. “I commend the excellent work by the Secret Service and our law enforcement partners in Kentucky and South Carolina. They moved quickly to identify and arrest a repeat offender who was operating across state lines. Our communities are safer because of their work.”
According to evidence presented to the Court, Branham contacted the minor through the online social media application Uplive, a live-streaming platform that allows viewers to broadcast and view real-time videos via their smartphones. Using the screen name Mystic, Branham learned the minor’s age, told the minor he was sixteen years old, and convinced the minor to contact him using the Google Duo video chat application.
As presented to the Court, the minor instantly noticed Branham was an adult male. Although Branham stated that he had a genetic condition that made him look older, the minor ended the call. At that point Branham claimed he could find the minor’s address and threatened the minor into engaging in another call with him. On that call, Branham told the minor to expose herself or he was going to “find out your address and have a little talk to you.” After the minor complied, Branham also exposed himself. The minor reported the matter to her parents. The parents contacted Branham, at which point Branham falsely claimed to be a police officer whose children had initiated the call.
The parents reported the matter to police. The Kentucky Attorney General’s Office Internet Crimes Against Children (ICAC) task force immediately initiated a case in conjunction with the United States Secret Service. The ICAC task force program is a national network of 61 coordinated task forces representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies. The investigation in Kentucky quickly revealed that Branham lived in South Carolina, and within a week he was arrested as part of a joint operation between the Secret Service and the South Carolina Attorney General’s Office ICAC task force.
Branham – who has convictions for indecent exposure and assault and battery of a high and aggravated nature – admitted to engaging in similar interactions with minors on more than thirty occasions and admitted to having had sexual intercourse with a minor when he was 29 years old. Branham had also been released from federal prison only three months earlier after serving more than eight years for being a felon in possession of a firearm. As a result of this conduct, his supervised release was also revoked.
Senior United States District Judge Terry L. Wooten sentenced Branham to 21 months in federal prison for violating his federal supervised release. United States District Court Judge Sherri A. Lydon sentenced Branham to 60 months in federal prison for transferring obscene material to a minor. Judge Lydon ordered that the 60-month sentence run consecutively with the sentence imposed by Judge Wooten, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. After his release, Branham will be required to register as a sex offender.
This case was investigated by the United States Secret Service, the South Carolina Attorney General’s Office ICAC task force, and the Kentucky Attorney General’s Office ICAC task force. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Derek A. Shoemake of the Florence office prosecuted the case.
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Bulgarian National Pleads Guilty to ATM SkimmingRead the Press Release
BOSTON – A Bulgarian national pleaded guilty today in connection with a scheme to create counterfeit ATM cards and to withdraw money from the bank accounts of unsuspecting customers.
Georgi Kanev, 33, a Bulgarian national, pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for May 26, 2021.
According to court documents, Kanev and a co-conspirator installed skimmers and cameras on two Martha’s Vineyard Savings Bank ATMs over a period of approximately four weeks in July and August 2013. The devices allowed the defendants to obtain magnetic strip information from ATM customers as well as obtain their PIN numbers. The information was then used to create counterfeit ATM cards to withdraw funds from the compromised accounts.
The charge of conspiracy to commit access device fraud provides for a sentence of up to 90 months in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Edgartown Police Department and the Oak Bluffs Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Black Market Money Remitter Pleads Guilty in Manhattan Federal CourtRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that JOSE MORELY CHOCRON pled guilty today before U.S. District Judge Jed S. Rakoff to one count of money laundering. CHOCRON laundered more than $500,000 in funds that had been represented to him to be the proceeds of a scheme to bribe Brazilian political officials, using a network and bank accounts to which he had access by virtue of his operation of an unlicensed money transmitting business.
U.S. Attorney Audrey Strauss said: “Jose Chocron’s black-market banking was designed to facilitate tax evasion, and was used to facilitate what he thought was the bribery of a foreign official. Unbeknownst to Chocron, the FBI had identified his network and worked quickly to dismantle it. This Office will continue to ensure the integrity of the U.S. financial system by identifying and prosecuting shadow banking operations like Chocron’s.”
According to the Complaint, the Indictment, and other filings in this case:
Between May 2019 and October 2019, CHOCRON, working with his co-conspirators, utilized his network of contacts and bank accounts to launder funds that had been provided to him by individuals who – unbeknownst to CHOCRON – were working for the Federal Bureau of Investigation (“FBI”). Those individuals informed CHOCRON that the funds were the proceeds of bribes that had been paid to Brazilian public officials in order to obtain licenses and permits. On four occasions, CHOCRON accepted cash from individuals who were working for the FBI or arranged to have the cash delivered to his associates. He then arranged for the funds to be transferred to bank accounts specified by the FBI, minus a commission payment.
CHOCRON explained that he was able to receive large amounts of cash in the United States and arrange for those funds to be transferred to bank accounts because CHOCRON “ha[d] . . . people here that need cash. They will transfer to you, because they don’t want to pay taxes . . . What do I do? I give them the money and they make a transfer to me.” He also requested a higher commission for his services than initially offered, stating “Let’s be clear, that’s laundering money.”
* * *
CHOCRON, 61, of Spain and Venezuela, pled guilty to one count of money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. In connection with his guilty plea, CHOCRON also admitted that he operated an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960.
CHOCRON is scheduled to be sentenced by Judge Rakoff on July 16, 2021, at 4:00 p.m.
Ms. Strauss praised the outstanding work of FBI New York’s Eurasian Organized Crime Task Force.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transitional Criminal Enterprises Unit. Assistant U.S. Attorneys Andrew C. Adams, Benet J. Kearney, and Sarah Mortazavi are in charge of the case.
Beaver County Man Charged in Two Area RobberiesRead the Press Release
PITTSBURGH, PA - A resident of Koppel, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charges of Hobbs Act Robbery and Bank Robbery, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Superseding Indictment named Christopher Mangelli, age 36, as the sole defendant.
According to the Superseding Indictment, on or about August 30, 2020, Mangelli robbed a Kwik Fill convenience store, in Western Pennsylvania, against the will of its employees. Mangelli exited the store with $117.00. Additionally, on or about September 11, 2020, Mangelli robbed Huntington Bank in New Brighton, Pennsylvania in the amount of $1,440.00.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Cranberry Township Police Department conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Felon Sentenced to 10 Years in Federal Prison for His Participation in a Fentanyl Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Thomas Corey Crosby, age 51, of Woodlawn, Maryland, to 10 years in federal prison, followed by eight years of supervised release, for conspiracy to distribute controlled substances, specifically, 40 grams or more of fentanyl. Judge Russell also ordered that Crosby must forfeit $134,499 in cash, which was seized on August 14, 2020.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from at least May 2020 through August 2020, Crosby participated in a conspiracy to distribute illegal narcotics, including heroin and fentanyl.
Beginning in May 2020, investigators began wiretapping a cell phone known to be used by a co-conspirator, which revealed that the co-conspirator was operating an open-air drug market (commonly called a “drug shop”) that sold cocaine, heroin, and fentanyl, in Northwest Baltimore City in the area of Palmer and Spaulding Avenues and that the co-conspirator was communicating with Crosby regarding the drug business. Investigators also obtained authorization to intercept a phone used by Crosby. Investigation revealed that Crosby and the co-conspirator communicated approximately every 7 to 14 days concerning the sale of narcotics, including heroin and fentanyl. Crosby and the co-conspirator spoke in code during these calls, but it was clear that they were discussing the distribution of narcotics. After these conversations, Crosby and his co-conspirator would meet at a gas station, located at the intersection of Druid Park Avenue and Liberty Heights in Baltimore, where Crosby supplied the co-conspirator with drugs. Investigators conducted surveillance on several of these meetings and obtained video surveillance from the gas station.
On August 9, 2020, law enforcement executed a vehicle stop on the co-conspirator’s vehicle after Crosby had met the co-conspirator at the gas station, where Crosby was seen placing an item in the center console area of the vehicle. During a search of the vehicle, investigators recovered over 100 grams of fentanyl from a bag inside the center console of the vehicle. After this traffic stop, the co-conspirator immediately called Crosby and the pair then met at the same gas station. After this additional meeting, Crosby disposed of his cell phone, which investigators had obtained authorization to intercept and track. Crosby distributed the 100 grams of fentanyl to the co-conspirator.
On August 14, 2020, investigators executed a series of search warrants at locations related to the investigation, including a residence in the 2500 block of Park Heights Terrace in Baltimore, a location used by Crosby to manufacture and store drugs. Inside the residence, investigators recovered fentanyl, as well as drug paraphernalia and packaging material including: sifters, razor blades, plastic baggies, a digital scale, and cutting agents. Investigators also executed a search warrant at Crosby’s residence, where they recovered $134,499 in cash, which Crosby admitted constituted proceeds from his drug trafficking activities.
Crosby admitted that he distributed over 160 grams of fentanyl during his participation in the conspiracy. Additionally, Crosby acknowledged that he was previously convicted in federal court for possession with intent to distribute 100 grams or more of heroin.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who prosecuted the case.
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Allentown, PA Man Indicted for Cocaine TraffickingRead the Press Release
PITTSBURGH – Luis Morales was indicted by a federal grand jury in Pittsburgh for cocaine trafficking, Acting United States Attorney Stephen R. Kaufman announced today.
The Indictment charges Morales, age 46 of Allentown, Pennsylvania, with possessing with intent to distribute 500 grams or more of cocaine on December 10, 2020.
The law provides for a maximum total sentence of at least ten years and up to life in prison and a fine of up to $8,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller and Special Assistant United States Attorney/Mercer County Assistant District Attorney Shane T. Crevar are prosecuting this case on behalf of the United States.
The Pennsylvania State Police and the Department of Homeland Security conducted the investigation leading to the return of the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Accused Iraqi gun smuggler arraigned in U.S. District Court in SavannahRead the Press Release
SAVANNAH, GA: An Iraqi national has appeared in U.S. District Court in Savannah after his indictment on charges related to the attempted smuggling of firearms to Iraq.
Nihad Al Jaberi, 41, a Clarkston, Ga., resident, is charged with Smuggling, Failure to Notify a Common Carrier, and Submitting False or Misleading Export Information, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The smuggling charge carries upon conviction a penalty of up to 10 years in prison and substantial financial penalties. There is no parole in the federal system.
Al Jaberi, an Iraqi citizen and legal permanent resident of the United States, was arraigned Monday before U.S. Magistrate Judge Christopher L. Ray. Al Jaberi previously was ordered detained after a hearing in U.S. District Court in the Northern District of Georgia.
“The Port of Savannah is exceptionally valuable to the coastal region, and the high volume of traffic presents an ongoing challenge to law enforcement agencies enforcing import-export laws,” said Acting U.S. Attorney Estes. “Customs and Border Protection officers perform outstanding work in interdicting illegal shipments and maintaining border security.”
As described in court documents and testimony, Al Jaberi is charged with attempting in August 2020 to export three handguns and six .308-caliber long-range rifles in a shipment in which the contents were listed as “71 Pieces of Spare Auto Parts with No License Required.” The firearms, which were discovered disassembled along with used auto parts in a container at the Port of Savannah, had been obtained through straw purchases at various Atlanta-area sporting goods stores.
“This weapons seizure clearly illustrates how closely Customs and Border Protection inspects export manifests and identifies anomalies that could potentially harm others,” said Henry DeBlock, Area Port Director for CBP Savannah.
“Special Agents of The Bureau of Industry and Security’s Office of Export Enforcement will aggressively investigate and disrupt the illicit smuggling of controlled commodities in violation of U.S. export laws,” said Ariel Joshua Leinwand, acting Special Agent in Charge Miami Field Office, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (OEE). “Working cooperatively with our law enforcement partners, OEE Special Agents are committed to preventing firearms, firearms parts, and ammunition from potentially falling into the wrong hands overseas.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by U.S. Department of Commerce Bureau of Industry and Security and by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with U.S. Customs and Border Protection, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard, and by Northern District of Georgia Assistant U.S. Attorney Theodore S. Hertzberg.
A photo introduced as evidence in the detention hearing for Nihad Al Jaberi includes nine firearms from a shipment interdicted in the Port of Savannah and reassembled, along with other firearms removed during a search of the defendant’s residence.
15 March 2021
Waterloo Woman Sentenced to 33 Months’ Imprisonment for FraudRead the Press Release
A former Waterloo woman, who was employed as a conservation assistant for the Soil and Water Conservation District was sentenced today; to more than 2 years in federal prison.
Leslie Carey, age 44, from Waterloo, received the prison term after a March 13, 2020 guilty plea to wire fraud.
In a plea agreement, Carey admitted that from 2010 until 2017, she defrauded the Black Hawk and Bremer County Soil and Water Divisions and took their money through unauthorized withdrawals, debit card and credit card purchases, store purchases, and disbursements. Defendant admitted she concealed her scheme by transferring funds among accounts, altering financial statements, and submitting false Treasurer reports and minutes.
Carey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Carey was sentenced to 33 months’ imprisonment and was ordered to make $430,019.80 in restitution. Carey must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Carey was released after sentencing and is to surrender to the United States Marshal no later than June 7, 2021.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by Federal Bureau of Investigation and the United States Department of Agriculture - Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2012.
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Washington State tech executive pleads guilty to wire fraud and money laundering in connection with PPP loansRead the Press Release
Seattle – A Washington tech executive pleaded guilty today to wire fraud and money laundering in connection with his scheme to obtain over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, announced Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington.
Mukund Mohan, 48, of Clyde Hill, Washington, was charged in July 2020. He is scheduled for sentencing in front of U.S. District Judge John C. Coughenour on July 20, 2021.
According to the plea agreement and other records filed in the case, Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. In support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.
In support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019. In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at the time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake.
Quick action by federal law enforcement resulted in the seizure of all but just over $16,000 of federal loan funds from Mohan’s accounts.
Under the terms of the plea agreement, prosecutors will recommend the low end of the federal sentencing guidelines range. Both prosecution and defense will recommend that Mohan pay a $100,000 fine in addition to his restitution obligation.
Wire fraud is punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Federal Deposit Insurance Corporation – Office of Inspector General. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Village of Airmont Ordered to Cease Enforcement of Zoning Code That Discriminates Against Orthodox Jewish Residents and to Restore Right to Home WorshipRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced the entry today of a Consent Order of Preliminary Injunction (the “Injunction”) mandating that the Village of Airmont (“AIRMONT”) immediately cease enforcement of zoning code provisions enacted in 2018 that discriminate against Orthodox Jewish residents in violation of the Religious Land Use and Institutionalized Persons Act (“RLUIPA”), as alleged in a lawsuit brought by the United States (the “Government”). Among other things, the zoning code provisions at issue limit the amount of space in private homes that can be used as a Residential Place of Worship (“RPW”), restrict whom residents are allowed to invite into their own homes to pray, and expand the use of an arbitrary, drawn-out application process designed to delay and effectively deny permits for even minor alterations to private houses. After commencing its lawsuit in December 2020, the Government presented evidence that the provisions had been motivated by discriminatory animus and served no legitimate governmental purpose. Following the Government’s submission, AIRMONT agreed to entry of the Injunction.
U.S. Attorney Audrey Strauss said: “The right to Free Exercise of religion is central to the First Amendment, and our multicultural society is only as strong as our willingness to stand up for the rights of religious minorities. We appreciate Airmont’s willingness to agree to cease enforcement of its discriminatory zoning code restrictions pending final resolution of this matter.”
Under the terms of the Injunction entered today by U.S. District Judge Nelson S. Román, AIRMONT:
- Must restore RPWs as a recognized land use category permitted as of right in all residential districts and may not enforce contrary provisions of local law enacted in 2018 that removed RPWs as a recognized of-right use from AIRMONT’s zoning code;
- Must restore in full zoning provisions protecting the right to residential worship enacted by order of the District Court in 1996 after a jury found that AIRMONT had engaged in discrimination against Orthodox Jews, which AIRMONT removed from its zoning code in 2018 in violation of the Court-entered final judgment;
- Must ensure that all applications for RPWs that are 1,400 square feet or less in total size are reviewed and approved on an expedited basis without public hearing; and
- May not adjudicate applications for RPWs that are larger than 1,400 square feet under the terms of site development regulations enacted in 2018, which expanded and made mandatory a disproportionately burdensome review process, and may instead only apply regulations that were in effect under an earlier version of AIRMONT’s zoning code enacted in 1997.
RLUIPA authorizes the Department of Justice to commence an action against any local government that implements a land use regulation that places a substantial burden on religious exercise or discriminates on the basis of religion. By its terms, the Injunction will remain in effect until further order of the District Court.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Stephen Cha-Kim is charge of the case.
Two Men Charged with Assaulting Federal Officers with Dangerous Weapon on January 6Read the Press Release
WASHINGTON – A Pennsylvania and West Virginia man were arrested Sunday on criminal charges related to their alleged conspiring to injure officers and assaulting federal officers, among other charges.
According to court documents, Julian Elie Khater, 32, of State College, Pennsylvania, and George Pierre Tanios, 39, of Morgantown, West Virginia, were arrested on Sunday in connection with a complaint filed in federal court in Washington, D.C., charging them with conspiring to injure officers and assaulting federal officers, among other charges, on Jan. 6. Khater was arrested as he disembarked from an airplane at Newark Airport in New Jersey. Tanios was arrested at his residence in West Virginia.
Khater and Tanios are each charged with one count of conspiracy to injure an officer; three counts of assault on a federal officer with a dangerous weapon; one count of civil disorder; one count of obstructing or impeding an official proceeding; one count of physical violence on restricted grounds, while carrying dangerous weapon and resulting in significant bodily injury; and one count of violent entry and disorderly conduct, act of physical violence on Capitol grounds.
According to the affidavit in support of the criminal complaint, Khater and Tanios were at the U.S. Capitol on Jan. 6, 2021, and were observed in video footage working together to assault law enforcement officers with an unknown chemical substance by spraying officers directly in the face and eyes. During the investigation, it is alleged that law enforcement discovered video that depicted Khater asking Tanios to “give me that bear s*it.” Tanios replied, “Hold on, hold on, not yet, not yet… it’s still early.” Khater then retrieved a canister from Tanios’ backpack and walked through the crowd to within a few steps of the police perimeter. The video shows Khater with his right arm up high in the air, appearing to be holding a canister in his right hand and aiming it at the officers’ direction while moving his right arm from side to side. The complaint affidavit states that Officers Sicknick, Edwards, and Chapman, who were all standing within a few feet of Khater, each reacted to being sprayed in the face. The officers retreated, bringing their hands to their faces and rushing to find water to wash out their eyes.
The FBI’s Washington Field Office, with assistance from the FBI Pittsburgh and Newark Field Offices, the United States Capitol Police, and the Metropolitan Police Department are investigating the case.
The U.S. Attorney’s Office for the District of Columbia, with valuable assistance from the U.S. Attorney’s Office for the Northern District of West Virginia and the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
Two Men Charged with Assaulting Federal Officers with Dangerous Weapon on January 6Read the Press Release
WASHINGTON – A Pennsylvania and West Virginia man were arrested Sunday on criminal charges related to their alleged conspiring to injure officers and assaulting federal officers, among other charges.
According to court documents, Julian Elie Khater, 32, of State College, Pennsylvania, and George Pierre Tanios, 39, of Morgantown, West Virginia, were arrested on Sunday in connection with a complaint filed in federal court in Washington, D.C., charging them with conspiring to injure officers and assaulting federal officers, among other charges, on Jan. 6. Khater was arrested as he disembarked from an airplane at Newark Airport in New Jersey. Tanios was arrested at his residence in West Virginia.
Khater and Tanios are each charged with one count of conspiracy to injure an officer; three counts of assault on a federal officer with a dangerous weapon; one count of civil disorder; one count of obstructing or impeding an official proceeding; one count of physical violence on restricted grounds, while carrying dangerous weapon and resulting in significant bodily injury; and one count of violent entry and disorderly conduct, act of physical violence on Capitol grounds.
According to the affidavit in support of the criminal complaint, Khater and Tanios were at the U.S. Capitol on Jan. 6, 2021, and were observed in video footage working together to assault law enforcement officers with an unknown chemical substance by spraying officers directly in the face and eyes. During the investigation, it is alleged that law enforcement discovered video that depicted Khater asking Tanios to “give me that bear s*it.” Tanios replied, “Hold on, hold on, not yet, not yet… it’s still early.” Khater then retrieved a canister from Tanios’ backpack and walked through the crowd to within a few steps of the police perimeter. The video shows Khater with his right arm up high in the air, appearing to be holding a canister in his right hand and aiming it at the officers’ direction while moving his right arm from side to side. The complaint affidavit states that Officers Sicknick, Edwards, and Chapman, who were all standing within a few feet of Khater, each reacted to being sprayed in the face. The officers retreated, bringing their hands to their faces and rushing to find water to wash out their eyes.
The FBI’s Washington Field Office, with assistance from the FBI Pittsburgh and Newark Field Offices, the United States Capitol Police, and the Metropolitan Police Department are investigating the case.
The U.S. Attorney’s Office for the District of Columbia, with valuable assistance from the U.S. Attorney’s Office for the Northern District of West Virginia and the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
Tucson man arrested with 20 kilos of cocaine in vehicle chargedRead the Press Release
A federal grand jury sitting in Cleveland returned a one-count indictment on March 11 charging Benjamin Ortiz Ledezma, 38, of Tucson, Arizona, with possession with the intent to distribute approximately 20 kilograms of cocaine.
According to court documents, on February 21, 2021, a trooper with the Ohio State Highway Patrol pulled over a vehicle on Interstate 76 in Milton Township, Mahoning County, Ohio, and identified the driver as the defendant. The defendant was unable to produce a driver’s license when asked by the officer. The trooper then requested backup, and a trained canine unit arrived and indicated an odor of narcotics emitting from the rear of the vehicle.
Troopers searched the vehicle and found two brick-shaped objects of suspected cocaine concealed in the rear cargo area. An additional 16 brick-shaped objects of suspected cocaine were found concealed within a spare tire.
In total, officers seized 18 bricks of suspected cocaine weighing approximately 20 gross kilograms.
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.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Three Former Orangeburg County Sheriff’s Office Deputies Sentenced to Federal Prison for Their Roles in Narcotics Conspiracies and Visa FraudRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three former deputies with the Orangeburg County Sheriff’s Office – Carolyn Colter Franklin, 64; Allan Hunter, 52; and Nathaniel Miller Shazier, III, 29 – all from Orangeburg County, were sentenced to multi-year sentences in federal prison for using their positions as law enforcement officers to conspire with who they believed to be members of a Mexican drug cartel. In addition, Franklin and Hunter were sentenced on federal charges of conspiring to obtain fraudulent U-visas for non-immigrants in exchange for bribes.
“These sentences highlight that no one is above the law,” said Acting U.S. Attorney DeHart. “Anyone brazen enough to conspire with cartels to commit crimes, especially those placed in public trust, will be met with the full force of the federal government.”
“Those sentenced were trusted by their communities to serve and protect,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge. “Instead, while still wearing a badge, they decided to work on behalf of a drug cartel and facilitate the distribution of illegal drugs. Keeping to the FBI’s mission, we aggressively pursued this investigation bringing together dedicated Agents and an array of resources to root out corrupt law enforcement officers who dishonor the profession. The FBI is committed to ensuring law enforcement maintains the trust of the public it serves by never ceasing to pursue the corrupt.”
Evidence presented to the Court showed that, during an undercover operation conducted by the FBI between December 2018 and March 2019, Franklin, Hunter, and Shazier agreed to help protect trucks containing what they believed were drug proceeds derived from narcotics distribution by members of a Mexican drug cartel drug ring. The members were actually undercover FBI agents. Additionally, the three agreed to help protect trucks containing kilogram quantities of methamphetamine and cocaine in the future.
Evidence presented in court also showed that, between February 2018 and March 2019, in exchange for bribes, Franklin and Hunter created fraudulent documents for non-immigrants. Specifically, the documents were designed to help the immigrants achieve U non-immigrant status, which, by statute, is reserved for victims of certain crimes who have suffered mental or physical abuse and are helpful to law enforcement in the investigation or prosecution of criminal activity.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Franklin to 61 months in federal prison, Hunter to 63 months in federal prison, and Shazier to 46 months in federal prison. Each defendant’s sentence will be followed by 36 months of supervised release. There is no parole in the federal system.
The case was investigated by the FBI and the South Carolina Law Enforcement Division (SLED).
Assistant United States Attorney Benjamin Garner and Assistant United States Attorney Brook Andrews prosecuted the case.
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Three Defendants Charged in Cocaine Importation and Distribution Network in New YorkRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced that ADRIANO RODRIGUEZ-DIAZ, IRONELLYS PAULINO-NOLASCO, and ROBERT NUNEZ were charged in a criminal complaint filed in Manhattan federal court with narcotics importation, narcotics trafficking, and firearms offenses. RODRIGUEZ-DIAZ and PAULINO-NOLASCO were apprehended on March 12, 2021 and will be presented this afternoon before United States Magistrate Judge Sarah L. Cave. NUNEZ remains at large.
Manhattan U.S. Attorney Audrey Strauss said: “This investigation has yielded the seizure of over 120 kilograms of cocaine and over $1 million in suspected proceeds from illegal narcotics trafficking, disrupting the operation of this alleged drug trafficking organization. Thanks to our partners at the DEA, this massive shipment of potentially deadly narcotics has been kept off the streets.”
DEA Special Agent in Charge Raymond P. Donovan said: “A stakeout turned into a three-day enforcement operation taking six million dollars’ worth of cocaine sales away from alleged drug traffickers while saving lives. Over one hundred kilograms of cocaine is significant in many ways since CDC warned of a 26.5% increase in overdose deaths involving cocaine in a 12- month period ending May 2020. Law enforcement will continue to rally our resources to seize illegal drugs responsible for record-breaking overdose rates.”
As alleged in the Complaint[1]:
Since in or about late 2020, the DEA has been investigating the importation and distribution of narcotics through a produce warehouse in New Jersey called “Sweet Produce” (the “Warehouse”). Cocaine was shipped from a company in the Dominican Republic to the Warehouse. Between March 9, 2021 and March 12, 2021, DEA agents observed members of the conspiracy receive and move shipments from the Warehouse to other locations, including an apartment in the Bronx.
On March 10, 2021, agents seized approximately one kilogram of cocaine from a car driven by NUNEZ. On March 11, 2021, agents seized approximately 20 kilograms of cocaine and $1.3 million in United States currency from the apartment in the Bronx. On March 12, 2021, agents seized approximately 100 kilograms of cocaine from a produce van as it left the Warehouse, and also seized a firearm from the Warehouse. The Produce Van was en route to a safe house in New Jersey that contained approximately one kilogram of cocaine, a cocaine press, and packaging materials.
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ADRIANO RODRIGUEZ-DIAZ, 41, IRONELLYS PAULINO-NOLASCO, 37, and ROBERT NUNEZ, 50, are charged with conspiring to import at least five kilograms of cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and conspiring to distribute and possess with intent to distribute at least five kilograms of cocaine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. RODRIGUEZ-DIAZ is also charged with possession of a firearm during and in relation to the narcotics importation and trafficking conspiracies, which carries a mandatory consecutive sentence of five years in prison.
The maximum potential sentences described above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the assigned judge.
Ms. Strauss praised the outstanding investigative work of the New York Division the DEA. Ms. Strauss also thanked the El Dorado Task Force of the United States Department of Homeland Security, Homeland Security Investigations, the New York City Police Department and the Organized Crime Drug Enforcement Task Force New York Strike Force, Financial Investigation Team comprising agents and officers of the DEA, NYPD, Bergen County Prosecutors Office, Fort Lee Police Department, Teaneck Police Department, Hillsdale Police Department, Northvale Police Department, Palisades Interstate Parkway Police, and Closter Police Department for its assistance in the investigation.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Danielle M. Kudla and Alexander Li are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Tech Executive Pleads Guilty to Wire Fraud and Money Laundering in Connection with PPP LoansRead the Press Release
A Washington man pleaded guilty today to wire fraud and money laundering in connection with his scheme to obtain over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds.
Mukund Mohan, 48, of Clyde Hill, was charged in July 2020. According to the plea agreement and other records filed in the case, Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. In support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.
In support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc. had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019. In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake.
Quick action by federal law enforcement resulted in the seizure of nearly all of the federal loan funds from Mohan’s accounts. Mohan is scheduled to be sentenced on July 20 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney Tessa M. Gorman of the U.S. Attorney’s Office for the Western District of Washington made the announcement.
The Federal Housing Finance Agency – Office of Inspector General, IRS-Criminal Investigation, U.S. Treasury Inspector General for Tax Administration, and Federal Deposit Insurance Corporation – Office of Inspector General are investigating the case.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Subsequent Federal Conviction Earns Onslow County Man More Than 19 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Anthony Lemmonds, 53, of Onslow County, was sentenced today, to 235 months imprisonment for: (1) Conspiracy to Possess With Intent to Distribute and Distribute Five Hundred (500) Grams or More of Methamphetamine; (2) Distribution of Fifty (50) Grams or More of Methamphetamine; and (3), Possession With the Intent to Distribute Fifty (50) Grams or More of Methamphetamine. Lemmons pled guilty to these charges on June 9, 2020.
According to court documents, on March 29, 2019, the Duplin County Sheriff’s Office (DCSO) obtained information that Anthony Lemmonds was traveling to South Carolina to purchase crystal methamphetamine. The DCSO, operating in conjunction with the Onslow County Sheriff’s Office (OCSO), conducted a controlled purchase with Lemmonds utilizing a confidential informant.
On March 30, 2019, utilizing the same confidential informant as the previous day, another controlled purchase was conducted. The confidential informant obtained 86 grams of crystal methamphetamine and during that controlled purchase, Lemmonds informed the confidential informant that he brought back a pound of crystal methamphetamine the week prior.
On April 4, 2019, the confidential informant met with Lemmonds again, this time to obtain three ounces of methamphetamine. Lemmonds advised the confidential informant that he would have to travel to South Carolina again to obtain the methamphetamine. On the return trip from South Carolina on April 5, 2019, Lemmonds was surveilled by law enforcement and a traffic stop was conducted where officers witnessed Lemmonds throwing an item out of the car. Law enforcement recovered the sealed bag containing crystal methamphetamine in the area where Lemmonds threw the items out of the car. Additionally, law enforcement searched his car and found an additional 138 grams of methamphetamine, two digital scales and a ledger. Lemmonds confirmed that the ledger contained records detailing prior drug transactions. Between August 2018 and April 5, 2019, Lemmonds is attributed with trafficking more than 2.5 kilograms of methamphetamine.
Lemmonds prior criminal history includes the following: Possession of Cocaine (2004); Possession of Methamphetamine (2005); Possession of a Firearm by Felon and Possession of Methamphetamine (2017). In 2009, Lemmonds also has a previous federal conviction for Conspiracy to Possess With Intent to Distribute More than 500 Grams of Methamphetamine where he received a 91-month sentence.
The investigation was part of OCDETF Operation. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of large quantities of extremely pure methamphetamine throughout the United States.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge Louise W. Flanagan. The Drug Enforcement Administration, the Duplin County Sheriff’s Office and the Onslow County Sheriff’s Office took part in the investigation. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-182-FL.
St. Francis Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Tanner Kills Enemy, age 22, was indicted on March 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 12, 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, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Kills Enemy was convicted of Sexual Abuse in October 2020. As a result of this conviction, he is required to register as a sex offender. It is alleged that between November 4, 2020, and March 12, 2021, Kills Enemy, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Kills Enemy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Kills Enemy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Francis Man Indicted for Assault and Firearm ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer and Using and Carrying a Firearm During and in Relation to a Crime of Violence.
Willard Henry, Jr., age 40, was indicted on March 11, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, seven years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 3, 2021, in Todd County, South Dakota, Henry assaulted, opposed, impeded, intimidated, and interfered with multiple law enforcement officers who were employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved the use of a firearm.
The charges are merely accusations and Henry 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 Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Henry was released on bond pending trial. A trial date has not been set.
St. Francis Man Charged with Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Kevin Adam Left Hand Bull, age 31, was indicted on February 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 12 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 May 19, 2020, in Todd County, South Dakota, Left Hand Bull did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
The charge is merely an accusation and Left Hand Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Left Hand Bull was released on bond pending trial. A trial date has not been set.
Shoshone Dairy Farm and Its Owner Sentenced for Clean Water Act ViolationRead the Press Release
BOISE – 4 Brothers Dairy, Inc. (4 Bros.) and its owner, Andrew Fitzgerald, 60, of Shoshone, Idaho, were sentenced in U.S. District Court for unlawful discharge of pollutant into a water of the United States, a misdemeanor violation of the Clean Water Act, announced Acting U.S. Attorney Rafael M. Gonzalez, Jr. today.
U.S. Magistrate Judge Candy W. Dale ordered 4 Bros. to pay a $95,000 fine and ordered Fitzgerald to pay a $35,000 fine. As part of its plea agreement entered in the case, 4 Bros. also agreed to obtain a National Pollution Discharge Elimination System (NPDES) permit issued under the Clean Water Act by the United States Environmental Protection Agency (EPA). NPDES permits are designed to control water pollution by regulating point sources, such as large dairies, that discharge pollutants into waters of the United States. Judge Dale also imposed one year of probation on 4 Bros.
According to court records, 4 Bros. is a dairy and concentrated animal feeding operation operating in Shoshone with at least 1,000 head of cattle. It maintains waste-water lagoons that are adjacent to the Milner-Gooding Canal, which flows to the Malad River and on to the Snake and Columbia Rivers. In the winter season of 2017, record precipitation, record snowpack, and flooding occurred, leading to extreme runoff at the 4 Bros. property. In February 2017, during this period of flooding, 4 Bros. and Fitzgerald negligently caused discharges of manure-laden water into the Milner Gooding Canal at three locations.
Specifically, on February 10, 2017, a catchment area on the east side of the dairy overtopped, inadvertently breached, and discharged snowmelt along with manure into the canal. 4 Bros. and Fitzgerald were aware of the discharge during that time but did not attempt to repair the lagoon until February 23, 2017. 4 Bros. and Fitzgerald admitted that failing to repair the discharge for 14 days was criminally negligent under the circumstances.
Two other discharges occurred between February 19 and February 22, 2017. On the west side of the dairy, 4 Bros. used earth-moving equipment to cut open a berm and lined it with plastic to cause manure-laden wastewater from a lagoon to flow into the canal. At the central portion of the dairy, 4 Bros. mechanically pumped manure-laden wastewater from a wastewater lagoon into the canal. 4 Bros. additionally admitted that these discharges were negligent under the circumstances.
“The United States Attorney’s Office takes seriously any business, corporation, or individual that violates federal environmental laws. Even the negligent discharge of pollutants into the waters of the United States is simply unacceptable,” said Acting U.S. Attorney Gonzalez. “The sentence holds the defendants accountable for their actions in violating the Clean Water Act, and our office will continue to work with the EPA and our state and local partner agencies in the State of Idaho to hold offenders of the Clean Water Act accountable,” he concluded.
“The defendants’ conduct led to a serious impact to water quality in the state of Idaho,” said Scot Adair, Special Agent in Charge of EPA’s Criminal Investigation Division in the Northwest. “EPA and the Department of Justice hold accountable companies and individuals that pollute our waterways.”
As part of the plea agreement, 4 Bros. also agreed to commit no further Clean Water Act violations and to provide the EPA and state regulators with full access to 4 Bros.’ operations as well as books and records upon reasonable notice to ensure compliance with the Clean Water Act.
Acting U.S. Attorney Gonzalez commended the cooperative investigation by the Environmental Protection Agency, Idaho Department of Environmental Quality, Idaho Department of Agriculture, and the Lincoln County Sheriff’s Office, which led to the charges.
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Settlement Agent Pleads Guilty to Misappropriating Closing FundsRead the Press Release
NORFOLK, Va. – The former president of an escrow and title company pleaded guilty today to misappropriating $715,000 of closing funds in connection with 48 real estate transactions for which she served as the settlement agent.
According to court documents, Tammy Hamrin, formerly known as Tammy A. Cheek, 57, of Virginia Beach, was a licensed title and settlement agent and was the president, secretary, and treasurer of Preferred Escrow and Title, Inc. During 48 real estate transactions, Hamrin misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account. She did so by making seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom Hamrin had an online personal relationship.
During this period, Hamrin partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000. As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.
Hamrin pleaded guilty to wire fraud and is scheduled to be sentenced on July 26. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Alan M. Salsbury is prosecuting 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. 2:21-cr-2.