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Tuesday 26 January 2021
North Carolina Man Charged for Multiple Center City KidnappingsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jacob Montague, 35, of Wilson, North Carolina, was charged by Indictment for the attempted kidnapping of one woman, and the kidnapping of a second woman in Center City Philadelphia in late 2020. The defendant is currently in custody and will have his initial appearance in federal court on Friday, January 29; the government will be moving for detention pending trial.
According to the Indictment, the first incident occurred on the night of November 1, 2020. Montague allegedly wielded a knife near the intersection of 20th and Spruce Streets in an attempt to abduct the victim. Then the following day, on November 2, 2020, Montague allegedly parked his vehicle near the intersection of 24th and Spruce Streets and abducted a young woman at knifepoint, dragging her into his vehicle.
“Kidnapping is a terrifying experience for the victims,” said Acting U.S. Attorney Williams. “As alleged in the Indictment, the defendant was relentless in his pursuit, trying two days in a row to kidnap someone at knifepoint. We hope everyone can rest easier knowing that he is now facing federal charges.”
“Anyone trying to forcibly kidnap strangers off the street is a clear menace to society,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Violent criminals like that need to be locked up, for everyone’s safety. The FBI thanks our partners at the Philadelphia Police Department and Pennsylvania State Police for their assistance with the investigation that’s led to these federal charges against Jacob Montague.”
If convicted, the defendant faces a maximum possible sentence of life in prison, followed by five years of supervised release, and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Michael R. Miller and Priya T. DeSouza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Life Insurance Broker Admits Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York Life insurance broker today admitted his role in a scheme to fraudulently use his association with the company to solicit investor money, Acting U.S. Attorney Rachael A. Honig announced.
Ivan Ramos, 39, of Hillside, New Jersey, pleaded guilty by videoconference before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud.
According to documents filed in this case and statements made in court:
Ramos, who worked at New York Life selling life insurance, sought out inexperienced investors seeking low-risk investments. The victims met Ramos after purchasing life insurance through him, or through New York Life marketing events, or through mutual acquaintances. Ramos led his victims to believe, through misrepresentations and omissions, that two entities that he controlled, Invexperts LLC and Wealth Seeds Capital LLC, were associated with New York Life when they were not. The victims believed that the money they entrusted to Ramos would be placed in investments through New York Life, and accordingly multiple victims referenced New York Life on the memo line of their investment checks. One victim, for example, attended a New York Life seminar, then subsequently met with Ramos at his office in Edison, and ultimately invested in Invexperts believing it was associated with New York Life.
Ramos falsely told victims that their investments in Invexperts and Wealth Seeds were no-risk with fixed annual returns. Instead of investing their money as he promised he would, Ramos used the funds for purposes not disclosed to the victims, including, among other things, to pay for personal expenses for Ramos and others, to develop a restaurant called “Frisky Bull Barbeque” in Elizabeth, New Jersey, and to repay other investors.
Ramos obtained over $1 million in investor money through the fraudulent scheme.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for June 15, 2021.
The U.S. Securities and Exchange Commission (SEC) has filed a civil complaint against Ramos based on the allegations underlying the securities fraud charge.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Economic Crimes Unit.
New Haven Man Sentenced for Role in Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYRESE STANLEY, also known as “Scoot,” 30, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 21 months of imprisonment, followed by four years of supervised release, for his role in a New Haven-based drug trafficking ring. Judge Chatigny ordered Stanley to serve the first three months of his supervised release in home confinement.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
During the investigation, Anderson “Barry” Atkinson of Hamden was identified as a supplier of heroin to members of the drug trafficking organization. Investigators intercepted calls between Stanley and Atkinson in which Stanley arranged for Atkinson to provide him with heroin for resale. On certain calls, Stanley explained to Atkinson that he needed to raise funds through his drug sales to pay an attorney in a state court matter.
Twenty-seven individuals were charged as a result of this investigation.
Stanley has been detained since his arrest on July 10, 2019. On September 21, 2020, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
Atkinson has pleaded guilty and awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle, Elena L. Coronado and Tara E. Levens. This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle, Elena L. Coronado and Tara E. Levens through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Monongalia County man admits to fentanyl distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Clint Gaines, Jr., of Morgantown, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Gaines, 33, pled guilty today to one count of “Possession with Intent to Distribute Fentanyl.” Gaines admitted to having fentanyl in February 2020 in Monongalia County.
Gaines faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Member of White Supremacist Prison Gang Guilty of Violent Crime in Aid of RacketeeringRead the Press Release
A Texas man pleaded guilty today to violent gang-related activities in the Eastern District of Texas.
According to information presented in court and contained in court filings, Glynnwood Derrick, 46, of Texarkana, joined the Aryan Circle (AC) while in state prison in Texas in 2000, and received his “patch,” or gang tattoo, in 2004 while serving a sentence in federal prison. Derrick held various ranks within the organization over the years, including the ranks of Captain and Major. Derrick attended “church,” or gang meetings, on numerous occasions at the homes of other AC members.
The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Prior to Oct. 2, 2016, AC members learned that an AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. AC members were ordered to attack the former member in order to “X” him, or attack and remove him from the gang, because it violated the AC’s rules to join another organization. A meeting was held at an AC member’s home in the Tyler, Texas area where AC members planned the logistics of the assault.
On Oct. 2, 2016, Derrick and other AC members met at a park near Tyler, Texas, where they had planned to attack the former member, who was also present. Multiple AC members violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care.
Derrick will be sentenced at a date to be determined.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Nicholas J. Ganjei, Acting U.S. Attorney for the Eastern District of Texas, made the announcement.
This case is part of a larger investigation into the Aryan Circle by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. It is being prosecuted by Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas.
Member of White Supremacist Prison Gang Guilty of Violent Crime in Aid of RacketeeringRead the Press Release
BEAUMONT, Texas – A Texas man has pleaded guilty to violent gang-related activities in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei and Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division.
Glynnwood Derrick, 46, pleaded guilty to assault resulting in serious bodily injury in aid of racketeering today before U.S. Magistrate Judge Zack Hawthorn.
“Gang violence has no place in our community,” said Acting United States Attorney Nicholas Ganjei. “The men and women of the Department of Justice, and our law enforcement partners, will do whatever it takes to safeguard our citizens from the predations of organized criminal gangs.”
According to information presented in court and contained in court filings, Derrick joined the Aryan Circle (AC) while in state prison in Texas in 2000, and received his “patch,” or gang tattoo, in 2004 while serving a sentence in federal prison. Derrick held various ranks within the organization over the years, including the ranks of Captain and Major. Derrick attended “church,” or gang meetings, on numerous occasions at the homes of other AC members.
The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Prior to Oct. 2, 2016, AC members learned that an AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. AC members were ordered to attack the former member in order to “X” him, or attack and remove him from the gang, because it violated the AC’s rules to join another organization. A meeting was held at an AC member’s home in the Tyler, Texas area where AC members planned the logistics of the assault.
On Oct. 2, 2016, Derrick and other AC members met at a park near Tyler, Texas, where they had planned to attack the former member, who was also present. Multiple AC members violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care for serious injuries.
This case is part of a larger investigation into the Aryan Circle by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Christopher Rapp of the Eastern District of Texas and Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section.
Man from Arizona sentenced to three years in federal prison for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Travis Clitso, 25, of Pinon, Arizona, was sentenced in federal court on Jan. 22 to three years and one month in prison for assault with a dangerous weapon in Indian Country.
Clitso previously plead guilty on Oct. 8, 2020. According to his plea agreement, Clitso, an enrolled member of the Navajo Nation, admitted to hitchhiking near Cortez, Colorado, on Feb. 6, 2019. A driver picked up Clitso and agreed to give him a ride. They later stopped at a gas station in Shiprock, New Mexico, where Clitso pulled out a knife and stabbed the driver in the throat. Clitso fled the scene, but police officers found and arrested him later the same day. The driver suffered a large cut to his throat. Emergency medical personnel flew him to Albuquerque for emergency treatment. He spent several days in the hospital for his injuries.
The Farmington office of the FBI and the Navajo Nation Department of Public Safety investigated this case. Assistant U.S. Attorney Thomas Aliberti prosecuted the case.
Milwaukee County Employee Sentenced for Fraud SchemeRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 14, 2021, United States District Court Judge Lynn Adelman sentenced Nicole Doxtator (age: 30) of Milwaukee to two years and one day in prison following her conviction for mail fraud and aggravated identity theft. Doxtator, who committed the offenses in connection with her position as an economic support specialist with Milwaukee County Enrollment Services, pled guilty to the charges on September 24, 2020.
According to the indictment, Doxtator and her co-defendant, Granville Holley, accessed and made changes to the closed files of thirteen former Supplemental Nutrition Assistance Program (SNAP) recipients, causing the benefits to be revived. SNAP cards were then mailed, not to the former recipients, but to addresses where Doxtator and Holley would retrieve them. The two used several of the cards to make purchases for themselves. Other were sold for cash.
The scheme, which began in December 2015 and continued through December 2018, resulted in a loss of $49,432.10 to the federally funded program.
In sentencing the defendants, Adelman noted that the crimes were serious not only because they depleted funds designated for truly needy people, but also because the defendants’ conduct undermined public confidence in the program.
“Doxator is heading to federal prison because she exploited her position of trust to steal public funds meant for people in need,” said United States Attorney Krueger. “The Department of Agriculture performed excellent work in bringing this case, which stands as a warning to anyone else who would consider stealing public benefits.”
The case was investigated by the United States Department of Agriculture, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Carol L. Kraft and Kate M. Biebel.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
Local pastor sentenced to 10 years in prison for sexually coercing minor parishionerRead the Press Release
CINCINNATI – The pastor of a Sharonville church was sentenced via video conference in U.S. District Court today to 120 months in prison for sexually coercing a minor female.
Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted in June 2020 to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and Aug. 5, 2019 at his office at the Mision Cristiana el Calvario Church.
Court documents detail that Guerrero told the victim God was speaking to him and the only way to get out of the dark place was for the victim to have sexual relations with Guerrero. The pastor referred to this as a “cleansing process.”
According to the Guerrero’s plea agreement, he communicated with the victim via text messages, audio and video calls on Facebook Messenger. He coerced the victim into sending him sexually explicit photos and engaging in a sexually explicit video call. Guerrero cited several biblical verses while making the requests.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Sharonville Police Chief Steve Vanover announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Local man charged with coercing minor to engage in sexual conductRead the Press Release
HOUSTON – A 42-year-old former Conroe resident is set to appear in federal court on charges of sexual exploitation of children as well as distributing, receiving and possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
Timothy Lee Tyler is scheduled to appear today at 10 a.m. before U.S. Magistrate Judge Frances H. Stacy.
The indictment, returned Jan. 13, alleges that in 2016 Tyler did or attempted to employ, use, persuade, induce, entice and coerce a minor victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of it. On various dates in September 2020, Tyler also allegedly distributed, received and possessed material containing child pornography.
The FBI conducted the investigation with the assistance of Montgomery County Internet Crimes Against Children Task Force which is comprised of several local and federal agencies.
Assistant U.S. Attorneys Stephanie Bauman and Sherri Zack are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Litchfield Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Richard Black, 23, of Litchfield, pleaded guilty in federal court on Monday to distributing fentanyl and possessing fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in May, 2019 Nashua police learned that Black was distributing fentanyl in the Nashua area. Between June 27, 2019 and July 18, 2019, an undercover officer made four purchases of fentanyl from Black. After his arrest on July 22, 2019, officers searched Black’s residence pursuant to a warrant and recovered additional fentanyl. Officers seized approximately 200 grams of fentanyl from the undercover purchases, the search of Black’s person incident to his arrest, and the search of Black’s residence.
Black is scheduled to be sentenced on May 12, 2021.
“Fentanyl is a deadly drug that has caused substantial damage to Nashua and communities throughout our state,” said U.S. Attorney Murray. “Through Operation SOS, we are fighting back against the fentanyl dealers. We will continue to work closely with the Nashua Police Department and our other law enforcement partners to identify and prosecute fentanyl traffickers who are doing business in the Granite State.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Leader of Portland-Area Prescription Drug Trafficking Scheme Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a conspiracy to distribute oxycodone fraudulently obtained from local pharmacies.
Chase Adam Conway, 36, was sentenced to four years in federal prison and three years’ supervised release.
According to court documents, in June 2018, agents from the U.S. Drug Enforcement Administration (DEA) began investigating Conway. They learned that Conway, who had a long history of committing drug frauds, was enlisting female runners to fraudulently obtain oxycodone from pharmacies in the Portland area. Conway would deliberately seek out runners who were heavily addicted to oxycodone and willing to risk criminal liability in exchange for a portion of the prescriptions filled or a small amount of cash.
Conway obtained medical prescription paper and used a home printer to place the names and DEA registration numbers of real doctors on the prescriptions. He would then provide his co-conspirators with fraudulent identification to use in conjunction with the fake prescriptions at various pharmacies. After obtaining the oxycodone pills, Conway redistributed to them for profit to large quantity vendors and street customers.
In the fall of 2018, agents tracked Conway’s car and obtained evidence from several pharmacies where he and his accomplices filled prescriptions. In February 2019, agents executed a search warrant on Conway’s rented room and mobile phone, seizing prescription paper, lists of runners and pharmacies, doctors’ names and DEA numbers, and dozens of communications call logs and text messages with various co-defendants.
On October 6, 2020, Conway was charged by criminal information with conspiracy to possess with the intent to distribute oxycodone and, one week later, he pleaded guilty. As part of his plea agreement, Conway is also subject to a $10,000 money judgement.
This case was investigated by the DEA. It was prosecuted by Kemp Strickland, Assistant U.S. Attorney for the District of Oregon.
Lake County Man Charged in Federal Court with Attempted CarjackingRead the Press Release
CHICAGO — A Lake County man has been charged in federal court with attempted carjacking for allegedly trying to violently carjack a vehicle at a north suburban golf course last summer.
ZAYVEON THOMAS, 19, of Beach Park, attempted to hijack a 2018 Lexus IS300 sedan from a victim in a parking lot of the golf course in Glencoe on July 2, 2020, according to an indictment returned Monday in U.S. District Court in Chicago. The indictment charges Thomas with one count of attempted carjacking, which is punishable by up to 15 years in federal prison. Thomas is currently in law enforcement custody. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Cook County State’s Attorney’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorney Michael Kelly.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Kenner Man Sentenced to Prison for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that DAVID HUNTER (“HUNTER”), age 24, of Metairie, was sentenced to thirty (30) months imprisonment as to Counts 1 and 2 of his Indictment by the Honorable Wendy D. Vitter. Count 1 charged HUNTER with possession of stolen firearms in violation of 18 U.S.C. § 922(j). Count 2 charged HUNTER with being a prohibited person under indictment in possession of firearms in violation of 18 U.S.C. § 922(n). Each sentence will be served concurrently. Additionally, HUNTER has been sentenced to pay a $100 Special Assessment for each count. Upon release from federal imprisonment, HUNTER will be subject to two (2) years supervised release.
According to court documents, in December of 2016, HUNTER stole a gun safe that contained various firearms from a residence in Tylertown, Mississippi. HUNTER then transported the firearms in interstate commerce to the Eastern District of Louisiana. HUNTER possessed and transported the firearms after having been charged in Orleans Parish of state offenses that were punishable by terms of imprisonment exceeding one year. Several firearms including a suppressor/silencer have not been recovered are still missing. The unrecovered firearms are listed below:
Item Description
Make
Model
Caliber
Serial Number
Pistol
Walther
P38
9 millimeter
Unknown
Rifle
Winchester
1892
38-40
180289
Rifle
Rock River Arms
AR-15
.223
Unknown
Pistol
Magnum Research
Desert Eagle
.50
36200016
Suppressor/Silencer
Tactical Innovation, Inc.
TAC 16
.223
1691150
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Louisiana State Police. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Justice Department Settles with New Jersey-Based IT Consulting Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Quantum Integrators Group (Quantum), an IT consulting and staffing company based in New Jersey. The settlement resolves claims that Quantum (1) discriminated against a lawful permanent resident by requiring her, based on her citizenship status, to provide unnecessary documentation before it would refer her for an employment opportunity, and (2) routinely required other work-authorized non-U.S. citizens to present unnecessary documents to prove their eligibility to work.
“Companies cannot make requests for unnecessary work authorization documents because of an individual’s citizenship status, or condition a referral for employment on complying with such a request,” said Gregory B. Friel, Deputy Assistant Attorney General of the Civil Rights Division. “We are pleased that Quantum will work with the Department of Justice to ensure that its policies and practices do not discriminate on the basis of citizenship status.”
The department’s investigation began after a lawful permanent resident filed a discrimination complaint with the Civil Rights Division against Quantum. Based on its investigation, the department concluded that Quantum would not refer her to a client so that she could be considered for an employment opportunity unless she first proved she was authorized to work by providing a copy of her Permanent Resident Card. According to the investigation, Quantum would have referred a U.S. citizen candidate to the client without requiring similar proof of work authorization. Additionally, the department concluded that Quantum routinely required other work-authorized non-U.S. citizens to provide additional and unnecessary documents to prove their eligibility to work.
The Immigration and Nationality Act (INA) prohibits employers from requesting more or different documents than necessary to prove eligibility to work based on employees’ citizenship, immigration status or national origin. All work-authorized individuals, regardless of citizenship status, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA also does not permit an employer to verify an individual’s eligibility to work before a job offer is accepted.
Under the terms of the settlement, Quantum will pay a civil penalty to the United States, revise its policies and procedures, ensure that relevant employees participate in training on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring over the term of the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Jefferson County Man Charged with Aiming a Laser Pointer at HelicopterRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted a Jefferson County man for aiming the beam of a laser pointer at a helicopter, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
A one-count indictment filed in U.S. District Court charges Gabriel Lopez Mathews, 26, of Pinson, with aiming the beam of a laser pointer at an aircraft. According to the indictment, on April 11, 2020, Mathews aimed the beam of a laser pointer at a helicopter operated by the Jefferson County Sheriff’s Office.
The maximum penalty for aiming a laser pointer at an aircraft is five years in prison.
The Federal Bureau of Investigation investigated the case, along with the Jefferson County Sherriff’s Office and the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Internal Revenue Service Agent Charged with Identity Theft and Wire FraudRead the Press Release
A 10-count indictment was unsealed today in federal court in Brooklyn charging Bryan Cho, also known as “Yong Hee Cho,” with possession of a fake foreign passport; aggravated identity theft; making false statements during a background check and wire fraud in connection with the purchase of an Upper East Side co-op apartment. Cho was arrested this morning and is scheduled to be arraigned via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA), announced the charges.
“As alleged, the defendant repeatedly betrayed the trust placed in him as a federal law enforcement officer to further his own schemes by misusing information to which he had access by virtue of his official assignments,” stated Acting United States Attorney DuCharme. “Today’s charges show that no one is above the law, and that this Office remains committed to rooting out corruption wherever it lurks.”
“The public places a great deal of trust in those who carry a shield, but when sworn federal officers use this as a free pass instead of a badge of honor, things go awry. As alleged, that’s what happened in this case when Cho used, to his benefit, proprietary information belonging to an individual he once investigated as part of his official duties. Today’s charges are a reminder that no one is beyond the reach of our corruption laws,” stated FBI Assistant Director-in-Charge Sweeney.
“The Treasury Inspector General for Tax Administration aggressively investigates Internal Revenue Service employees who violate the public’s trust,” stated Treasury Inspector General George. “Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law. I would like to thank the U.S. Department of Justice and the Federal Bureau of Investigation for their support in this effort.”
As set forth in the indictment, Cho has been employed as a Special Agent with Internal Revenue Service Criminal Investigation since 2008. During the course of his employment, Cho worked on an investigation through which he obtained identifying information for an individual described in the indictment as “John Doe.” The investigation was eventually closed, but Cho retained items he obtained during the investigation and used John Doe’s identifying information to create false identification documents and open a corporate entity overseas in John Doe’s name. The fraudulent documents included purported identification cards for the Philippines and the Republic of Marshall Islands in the name of John Doe, but bearing photos of the defendant, and a purported passport in the name of John Doe for the Republic of Guinea-Bissau.
Cho later made false statements during a background investigation, including denying that he possessed any foreign identification documents. Cho also denied any contacts with foreign officials even though law enforcement from the Republic of South Korea had communications with him regarding allegations that South Korean government personnel had paid bribes to the defendant in exchange for information about ongoing U.S. criminal investigations. Cho also submitted multiple false documents in connection with the purchase of a co-op apartment on the Upper East Side of Manhattan, including forged tax returns and bank statements that inflated his income and assets to secure the co-op board’s approval for the purchase, and funneled hundreds of thousands of dollars from a foreign bank account associated with an entity the defendant created using John Doe’s identity to fund the purchase.
If convicted of the top count, wire fraud, Cho faces up to 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Elizabeth Geddes and Turner Buford are in charge of the prosecution.
The Defendant:
BRYAN CHO (also known as “Yong Hee Cho”)
Age: 49
New York, N.Y.E.D.N.Y. Docket No. 21-CR-40 (AMD)
Individual indicted for drug trafficking and firearms possessionRead the Press Release
Honolulu, Hawaii – Ping Hong Lee of Honolulu, Hawaii, was arraigned today before Magistrate Judge Wes R. Porter on an indictment charging conspiracy to distribute and possess with the intent to distribute cocaine, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm and ammunition. He pleaded not guilty to the offenses. Trial is scheduled for March 30, 2021 before Senior District Court Judge Helen Gilmore
US Attorney for the District of Hawaii Kenji M. Price announced the charges.
As set forth in court filings, on January 13, 2021, law enforcement officers observed Lee, the lone occupant of a 2018 Porsche Macan GTS, pull into the pick-up area of a Waikiki Hotel. While there, a male entered the backseat of the Porsche with a dark blue duffle bag and then exited without the dark blue duffle bag. After Lee drove away, law enforcement officers tried to conduct a stop of the Porsche but were unsuccessful. The Porsche and Lee were found minutes later. Within the Porsche, law enforcement officers recovered approximately 11 kilograms (approximately 24 pounds) of cocaine from within the dark blue duffle bag, a loaded Charter Arms .38 caliber pistol, and US currency.
As charged in the indictment, Lee has a prior 2012 federal drug distribution felony conviction.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Lee faces a mandatory minimum sentence of 20 years of incarceration and up to life.
The case was investigated by the DEA. The case is being prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
Indictment Unsealed in Child Pornography InvestigationRead the Press Release
MACON, Ga. – A Georgia resident has been charged with two counts of distribution of child pornography, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. An indictment is only an allegation of criminal conduct, and the defendant is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Stanley Joseph Weaver, 60, formerly of McDonough (Henry County), Georgia, and currently of Jackson (Butts County), Georgia, was taken into custody on Saturday, January 23 after a federal grand jury indicted Weaver on two counts of distribution of child pornography on January 13. Each charge carries a maximum sentence of 20 years imprisonment, a $250,000 fine, no less than five years to life of supervised release and registration as a sex offender upon release from prison.
Weaver was arraigned today before U.S. Magistrate Judge Charles H. Weigle. The Government has moved for pretrial detention, and Weaver is scheduled to have his detention hearing at 11:00 a.m. on Thursday, January 28 before Judge Weigle.
The case is being investigated by the FBI. Assistant U.S. Attorney Katelyn Semales is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603, or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Human Trafficking Has No Home in the Eastern District of TexasRead the Press Release
BEAUMONT, Texas – January is Human Trafficking Awareness month. Each year, law enforcement and service providers reaffirm their commitment to eradicating human trafficking in all forms. Acting United States Attorney Nicholas J. Ganjei is issuing a number of messages to educate the public about human trafficking and, importantly, to dispel many myths and misconceptions about trafficking.
“Human trafficking is modern-day slavery,” said Acting United States Attorney Ganjei. “We proudly partner with federal, state, and local law enforcement, as well as the remarkable men and women who work with victims, to bring traffickers to justice. Those who exploit other human beings for personal gain have no safe harbor in the Eastern District of Texas.”
Often associated only with sex trafficking, “human trafficking” also includes labor trafficking and indentured servitude. Moreover, trafficking offenses occur in every city and region. It is also a common misconception that individuals are kidnapped or forced into trafficking by strangers. Most victims of human trafficking actually know their trafficker and are enticed by promises of good jobs, easy money, a comfortable life, new opportunities, or even the affection of their trafficker. Traffickers do not fit one particular profile. They can be men or women and are from all races, ethnicities, and socio-economic backgrounds.
Acting United States Attorney Ganjei urges the public to assist. “Because these crimes are often unreported, the public plays a valuable role in helping law enforcement to combat human trafficking. Each day, people unwittingly come into contact with victims of trafficking. From ride share drivers, to beauty service providers, to grocery or convenience store workers, we see these hidden victims.” Acting U.S. Attorney Ganjei added, “It us up to all of us to end this terrible practice. If you see something, say something. Please contact law enforcement or the National Human Trafficking Hotline if you suspect human trafficking.”
If you are currently the victim of sex trafficking, labor trafficking, or indentured servitude, or if you suspect someone else is being victimized, please contact the National Human Trafficking Hotline at 888-373-7888 (voice), “BeFree” or 233733 (text), or https://polarisproject.org.
Hospital Pharmacist to Plead Guilty to Attempting to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
A Wisconsin pharmacist has agreed to plead guilty to charges filed today in federal court that he attempted to render hundreds of doses of COVID-19 vaccine ineffective.
According to court documents filed in U.S. District Court for the Eastern District of Wisconsin, Steven R. Brandenburg, 46, of Grafton, Wisconsin, was charged with two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. Brandenburg has agreed to plead guilty to the charges, which each carry a maximum sentence of 10 years imprisonment.
As detailed in the court documents, while working as a hospital pharmacist in Grafton, Wisconsin, on two successive overnight shifts in late December, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from the hospital’s refrigeration unit intending to render the vaccines inert and no longer effective. According to the plea agreement, Brandenburg stated that he was skeptical of vaccines in general and the Moderna vaccine specifically. Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.
After leaving the vaccines out for several hours each night, Brandenburg returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“Tampering with vaccine doses in the midst of a global health crisis calls for a strong response, as reflected by the serious charges the United States has brought today,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
“Distributing the COVID-19 vaccine is critical to overcoming this pandemic, which continues to end lives and upend our economy,” said U.S. Attorney Matthew D. Krueger. “As these charges show, the Justice Department will pursue anyone—and especially any medical professional—who tampers with the vaccine.”
“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for quality, safety, and efficacy,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Those who knowingly tamper with this vaccine place American patients’ health at risk. Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
“Pharmacists rank among some of the most trusted professionals,” said FBI Milwaukee Special Agent in Charge Robert Hughes. “This individual used his special access to tamper with vials of the much needed COVID-19 vaccine. The FBI takes allegations of consumer product tampering very seriously and will use all available resources to bring those to justice who intentionally put the public’s health at risk.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch.
The claims made in the information are allegations that, if the case had proceeded to trial, the government would have had to prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Wisconsin, visit its website at www.justice.gov/usao-edwi. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
Harvey Man Charged with Clean Water Act Violation from 2016 Oil SpillRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that JAMES TASSIN, age 50, of Harvey, was charged on January 25, 2021with violating the Clean Water Act in connection with an oil spill in 2016.
According to the Bill of Information, TASSIN negligently discharged a harmful quantity of oil into a navigable water of the United States, upon adjoining shorelines, and affecting the United States’ natural resources. The spill took place on September 5, 2016, on the edge of Bay Long near the Chenier Ronquille barrier island, which is east of Grand Isle.
If convicted, TASSIN faces up to one year in prison, a fine of up to $100,000, and up to one year of supervised release following any term of imprisonment. A bill of information is merely a charge, and the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Department of Transportation’s Office of Inspector General, and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Halifax County Man Who Sold Drugs Out of a Local Hotel Sentenced to More Than 12 Years as a Career OffenderRead the Press Release
WILMINGTON, N.C. – A Weldon man was sentenced today to 154 months in prison for Possession with Intent to Distribute a Quantity of Heroin, a Quantity of Cocaine Base (Crack) and a Quantity of Marijuana, and Felon in Possession of a Firearm.
According to court documents, in April 2019, Weldon Motic Jackson, 52, sold marijuana to a confidential informant working with the Halifax County Sheriff’s Office (“HCSO”) out of the New Yorker Motel in Weldon. Thereafter, HCSO executed a search warrant at Jackson’s hotel room where they found Jackson with his juvenile child along with another man who was attempting to flush marijuana down the toilet. On a table in the room, deputies found quantities of heroin, cocaine base (crack), marijuana, and drug distribution paraphernalia. In a book bag near the drugs, deputies located a loaded firearm. Upon his arrest by federal authorities, Jackson was found with additional narcotics on his person.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Halifax County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
This case is also 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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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. 4:20-CR-00020-M.
Hospital Pharmacist to Plead Guilty to Attempting to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 26, 2021, Steven R. Brandenburg (age: 46) of Grafton, Wisconsin, signed a plea agreement acknowledging that he was guilty of attempting to render hundreds of doses of COVID-19 vaccine ineffective, in violation of 18 U.S.C. § 1365.
Brandenburg is charged by an Information with two counts of attempting to tamper with consumer products, with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. Brandenburg has agreed to plead guilty to the charges, which each carry a maximum sentence of ten years’ imprisonment.
As detailed in court documents, while working as a hospital pharmacist in Grafton, Wisconsin, on two successive overnight shifts in late December, Brandenburg purposefully removed a box of COVID-19 vaccine manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from the hospital’s refrigeration unit, intending to render the vaccine inert and no longer effective. According to the plea agreement, Brandenburg believed in various “conspiracy theories”; subscribed to notions of “alternative history”; and was skeptical of vaccines in general and the Moderna vaccine specifically. Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.
After leaving the vaccines out for several hours each night, Brandenburg returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“Distributing the COVID-19 vaccine is critical to overcoming this pandemic, which continues to end lives and upend our economy,” said United States Attorney Krueger. “As these charges show, the Justice Department will pursue anyone—and especially any medical professional—who tampers with the vaccine.”
“Tampering with vaccine doses in the midst of a global health crisis calls for a strong response, as reflected by the serious charges the United States has brought today,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for quality, safety, and efficacy. Those who knowingly tamper with this vaccine place American patients’ health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
“Pharmacists rank among some of the most trusted professionals,” said FBI Special Agent in Charge Robert Hughes. “This individual used his special access to tamper with vials of the much needed COVID-19 vaccine. The FBI takes allegations of consumer product tampering very seriously and will use all available resources to bring those to justice who intentionally put the public’s health at risk.”
“The actions by Mr. Brandenburg are not representative of the great people at Aurora Grafton who, day in and day out, serve our community. I am extremely proud of those who came forward to expose Mr. Brandenburg’s actions. I am also proud of my team’s efforts, their professionalism, hard work and diligence on this case. Finally, I would like to thank all of our federal partners and the Ozaukee County DA’s Office for working with us on this case—it is through these partnerships that we are able to accomplish great things,” said Jeff A. Caponera, Grafton Chief of Police
Adam Gerol, Ozaukee County District Attorney said, “I’m grateful for the hard work and dedication of all the law enforcement officers, and the prosecutors from the federal government, that was necessary to bring an appropriate level of prosecution and punishment to this case. Unfortunately, the facts of this incident simply didn’t fit a charge provided for by Wisconsin law that carried a sufficient measure of punishment. Hopefully, what transpired here will emphasize the need to expand the scope of our existing statutes should anything like this happen again.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight of the United States Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch.
The claims made in the Information are allegations that, if the case were to proceed to trial, the government must prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.
For more information about the United States Attorney’s Office for the Eastern District of Wisconsin, visit its website at www.justice.gov/usao-edwi. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
Grayson County Man Sentenced for Trafficking MethamphetamineRead the Press Release
SHERMAN, Texas – A Sherman, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Anthony Wade Buford, 35, pleaded guilty on June 9, 2020, to conspiracy to distribute and possession with intent to distribute methamphetamine and was sentenced to 235 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
According to information presented in court, in the summer of 2019, Grayson County law enforcement agencies began investigating reports that a drug trafficking group operating in the area was receiving narcotics from a supplier in McKinney, Texas. On August 22, 2019, a deputy with the Grayson County Sheriff’s Office initiated a traffic stop on a vehicle occupied by Buford and a search of the vehicle revealed 242.74 grams of pure methamphetamine and 13.1 grams of suspected black tar heroin. Officers were able to identify co-defendants Jeremy Wayne Helton, a resident of McKinney, as Buford’s source of supply. On August 28, 2019, task force investigators executed a search warrant at Helton’s residence, where they located co-defendant Kennen Depetris and seized 1.568 kilograms of pure methamphetamine, $12,000 cash; four handguns; 3.8 ounces of GHB, digital scales and assorted baggies for drug packaging, fake driver’s licenses; and a quantity of suspected heroin.
Investigators later identified co-defendant Benjamin Christopher Reyes, of Dallas, Texas, as Helton and Depetris’s source of supply. They immediately conducted a “buy-bust” operation on Reyes at Helton’s residence, where they seized an additional two kilograms of pure methamphetamine from him. Further investigation led to the identification of the following additional members of the conspiracy, all of whom were indicted along with Reyes, Helton, Depetris and Buford, including:
- Mishay Gabriele McManigell of Sherman, Texas, who has pleaded guilty and was sentenced to 121 months in federal prison for her role in the conspiracy.
- Coty Allen Pipkin, of Sherman, Texas, who has pleaded guilty and was sentenced to 120 months in federal prison for his role in the conspiracy.
- Melysa Rae Sudderth, of Pottsboro, Texas, who has pleaded guilty and was sentenced to 70 months in federal prison for her role in the conspiracy.
- Stephen Keith Martin, of Sherman, Texas, who has pleaded guilty and was previously sentenced to 188 months in federal prison for his role in the conspiracy.
- Bridget Marie Dobrovolsky, of Durant, Oklahoma, who has pleaded guilty and was sentenced to 120 months in federal prison for her role in the conspiracy.
Two defendants, Reyes and Marlon Glenn Warren, II, of Denison, Texas have pleaded guilty and are awaiting sentencing. Helton previously pleaded guilty and received 210 months in federal prison for his role in the conspiracy. Depetris is currently awaiting trial.
This case was investigated by the Sherman, Denison, and Bells, Texas Police Departments; the Grayson County Sheriff’s Office; the Drug Enforcement Administration’s (DEA); and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant United States Attorney Matthew T. Johnson.
Gilmer County man admits to fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Lee Rutherford, of Linn, West Virginia has admitted to his role in a methamphetamine and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Rutherford, 32, pled guilty today to one count of “Possession with Intent to Distribute at Least Forty Grams of Fentanyl—Aiding and Abetting.” Rutherford admitted to having more than 40 grams of fentanyl, enough to kill more than 13,000 people, in Hardy County in January 2020.
Rutherford is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Fort Dodge Man Sentenced to Federal Prison for Illegal Possession of FirearmRead the Press Release
A man who illegally possessed a gun was sentenced January 25, 2021, to more than two years in federal prison, including credit for 27 days previously served on a related State of Iowa assault conviction.
Justice Terry, 26, from Fort Dodge, Iowa, received the prison term after a September 18, 2020, guilty plea to prohibited person in possession of a firearm.
Evidence at the hearings showed that as of September 30, 2019, Terry was subject to a court order issued by the Iowa District Court for Wright County on April 29, 2019, restraining him from harassing, stalking, or threatening an intimate partner, that included a finding that Terry was a credible threat to the physical safety of the intimate partner. Also, as of September 30, 2019, Terry was an unlawful user of marijuana and/or methamphetamine. On September 30, 2019, Terry was stopped by law enforcement while driving. During the traffic stop, Terry was found in possession (in the vehicle, under the driver’s seat) of a Taurus .357 magnum revolver, loaded with 3 rounds, plus two small baggies of meth and one small baggie of marijuana and various drug user paraphernalia. Terry was stopped by law enforcement because of reports he had assaulted his girlfriend (a passenger in the vehicle) with a handgun. Terry subsequently pled guilty and was sentenced in the State of Iowa for the assault upon his girlfriend.
Terry was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Terry was sentenced to 24 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. Terry is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Wright County Sheriff’s Office, Fort Dodge Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3006.
Follow us on Twitter @USAO_NDIA.
Former Wheeler H.S. Teacher Sentenced to 144 Months in PrisonRead the Press Release
HAMMOND - Brian Kunze, 32, of Valparaiso, Indiana, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to receiving child pornography, announced Acting U.S. Attorney Bell.
Mr. Kunze was sentenced to 144 months (12 years) in prison, followed by 10 years of supervised release and ordered to pay $30,000 ($10,000 each) in restitution to the identified victims of this case.
According to documents in the case, Mr. Kunze, a former Wheeler High School teacher, used his position of authority at the school to cause one of his minor students to take and send him sexually explicit photos. A digital forensic examination of devices seized by federal law enforcement agents from Mr. Kunze’s home also revealed that he knowingly obtained sexually explicit photos of other minors whom he knew to be under the age of 18 because they attended the school where he taught. In total, Mr. Kunze admitting to knowingly receiving and possessing over 150 images depicting minors being caused to engage in sexually explicit conduct.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Porter County Sheriff’s Department and Michigan City Police Department. The case is being prosecuted by Assistant U.S. Attorney Jill Koster.
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Former Vice President of Recycling Company Sentenced to 5 Months for Illegally Storing Hazardous WasteRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bonnie Dennee, 66, Phillips, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to five months in federal prison, followed by a three-year term of supervised release, for conspiracy to store and transport hazardous waste without required permits and manifests, in violation of the Resource Conservation and Recovery Act (RCRA). Dennee pleaded guilty to this charge on October 22, 2020.
Dennee’s co-defendant, James Moss, pleaded guilty to this charge on September 1, 2020, and was sentenced to 18 months in prison. Co-defendant Thomas Drake signed a plea agreement to this charge on December 31, 2019, which was filed on May 21 ,2020. Finally, co-defendant Kevin Shibilski was indicted by a grand jury on September 10, 2020. The indictment against Shibilski included a hazardous waste storage charge, as well as eight counts of wire fraud, and conspiracy to defraud the IRS by not paying over employment taxes and income taxes.
Dennee worked for 5R Processors Ltd. (5R) based in Ladysmith, Wisconsin. 5R was a Wisconsin-based corporation involved in recycling electronic equipment, appliances, and other assets. Dennee pleaded guilty to a criminal information charging that from 2011 to 2016, Dennee, Moss, Drake and others conspired to (1) knowingly store hazardous waste (i.e., broken and crushed CRT glass that contained lead) at unpermitted facilities in Catawba, Wisconsin, Glen Flora, Wisconsin, and Morristown, Tennessee; (2) knowingly transport the hazardous waste without a required manifest; and (3) conceal the above violations from state regulators in Wisconsin and Tennessee, as well as auditors with a nationwide recycling certification program (R2).
At her plea hearing, Dennee admitted to attempting to conceal the illegal storage and transport of the crushed leaded glass from state regulators by various means, including: (1) changing the date labels on the containers; (2) hiding the containers by putting them inside semi-trailers and locking the trailer doors; (3) moving the containers to the back of the warehouse and stacking other pallets in front of them, making it impossible for regulators to see the boxes or inspect them; (4) storing the containers at a warehouse on Artisan Drive in Glen Flora, Wisconsin (known as the “Sunshine Building”), and not disclosing the existence of this warehouse, or its contents, to state regulators or R2 auditors; (5) storing the containers at 5R’s plant in Morristown, Tennessee in two warehouse spaces that did not have electricity or power, and which were referred to by 5R employees as the “dark side” and the “dark-dark side;” and (6) providing the state regulators with inaccurate inventory and shipping records for the leaded glass.
At today’s sentencing, Judge Conley told Dennee that once she left 5R in 2016, she could have reported the criminal conduct to regulators at the Wisconsin Department of Revenue, but she chose not to make such a disclosure. Judge Conley pointed out that her inaction, “let the community down.” Dennee agreed with the Court’s assessment, adding that she could not provide a good reason why she did not come forward after she left the company.
Nonetheless, Judge Conley praised Denee for ultimately doing the right thing and cooperating with the government to help explain and unravel the criminal conspiracy, but noted that Dennee, “still needed to pay a price.” Judge Conley added, “I hope this sentence also delivers a message to others who wish to commit this same conduct.”
The charges against Dennee were the result of an investigation conducted by the Wisconsin Department of Natural Resources, Bureau of Law Enforcement; the U.S. Environmental Protection Agency, Criminal Investigation Division; and IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Former U.S. Government Employee Pleads Guilty to Conspiracy to Steal U.S. Government Records and Defraud U.S. Refugee ProgramRead the Press Release
WASHINGTON – Earlier today in the District of Columbia, Haitham Isa Saado Sad, 42, pleaded guilty to several charges related to his role in a scheme to steal U.S. government records and defraud U.S. refugee programs. Defendant Sad remains held without bond pending sentencing.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin for the District of Columbia, U.S. Department of Homeland Security Inspector General Dr. Joseph V. Cuffari, and U.S. Department of State’s Diplomatic Security Service (DSS) Assistant Director for Domestic Operations Ricardo Colón.
Sad pleaded guilty to conspiracy to steal records and defraud the United States, conspiracy to launder money, and computer fraud and abuse before U.S. District Court Judge Rudolph Contreras of the District of Columbia. Sad is one of three defendants charged in an indictment that was unsealed on Friday, January 22. The indictment charges Sad and two other foreign nationals, Aws Muwafaq Abduljabbar, 42, and Olesya Leonidovna Krasilova, 43, with conspiracy to steal U.S. government records and to defraud the United States, theft of U.S. government records, and conspiracy to launder money, all related to the U.S. Refugee Admissions Program (USRAP) and, in particular, the Iraq P-2 program, which allows certain Iraqis to apply directly for refugee resettlement in the United States. The indictment also charges Krasilova and Sad with computer fraud and abuse. Abduljabbar was previously arrested and remains held without bond. Krasilova remains at large.
According to the indictment and the statement of facts agreed to by Sad as part of his guilty plea, Sad was employed in Amman, Jordan from 2007 to 2016 by U.S. Citizenship and Immigration Services, and Krasilova held a similar position at the U.S. Embassy in Moscow, Russia. As part of their duties, both defendants had access to the State Department’s Worldwide Refugee Admissions Processing System (WRAPS), a database containing sensitive, non-public information about refugee applicants and their family members, as well as the results of security checks and internal assessments by U.S. officials regarding applications. From approximately February 2016 until at least April 2019, the three defendants, led by Abduljabbar, conspired to steal U.S. government records related to hundreds of USRAP applications. Abduljabbar organized and led the conspiracy, and he relied on and paid Sad and Krasilova to steal WRAPS records and information so that Abduljabbar could assist applicants in gaining admission to the United States through fraudulent means. As outlined in the indictment and statement of facts, the theft of USRAP records creates a number of risks to public safety and national security while imposing significant costs on the U.S. government, its taxpayers, and otherwise legitimate refugee applicants negatively impacted by the scheme.
The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum penalty for conspiracy to commit an offense or defraud the United States is five years; the maximum penalty for theft of government records is 10 years; the maximum penalty for conspiracy to launder money is 20 years; and the maximum penalty for the charged computer fraud and abuse is five years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated jointly by the DHS Office of Inspector General and the U.S. Department of State’s Diplomatic Security Service. It is being prosecuted by Assistant U.S. Attorneys Luke M. Jones and Erik M. Kenerson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs assisted.
Former Baltimore Police Officer Sentenced to 14 Months in Federal Prison for Lying to Federal Law Enforcement Officer Regarding the Illegal Sale of Drugs Seized During a BPD InvestigationRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Officer Victor Rivera, age 48, of Nottingham, Maryland, to 14 months in federal prison, followed by two years of supervised release, for making false statements to a federal law enforcement officer in connection with a scheme to sell three kilograms of cocaine seized during a Baltimore Police Department investigation.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
Victor Rivera joined the Baltimore Police Department (BPD) on July 11, 1994 and November 21, 1999, respectively. In February 2009, Rivera served on a squad with Ivo Louvado, W.J., C.J., P.G., and K.G., that was supervised by W.K.
According to his plea agreement, prior to February 19, 2009, W.J. and C.J. told Rivera they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence on the 1400 block of Ellamont Street, in Baltimore, Maryland. On February 19, 2009, Rivera, Louvado, and other members of the squad were conducting surveillance at the residence of the alleged narcotics trafficker, T.M. Rivera and another member of his squad, W.K., followed a car from that residence to a nearby school where Rivera saw the driver throw something into a trash container. Once the driver left, Rivera and W.K. recovered the trash and found it to be empty kilogram drug wrappers. During this time other officers claimed to have followed a second individual who left the residence and threw trash from the car window, which was found to contain cocaine residue. Rivera and other officers remained at the house until W.J. and C.J. obtained a search warrant from a Baltimore City District Court judge.
As detailed in his plea agreement, Rivera ultimately participated in the search of the residence. While no drugs were found in the house, officers found car keys, including a key that had the ability to activate an alarm in a vehicle remotely. A BPD officer activated the alarm and officers heard the alarm sound in a pickup truck that was parked nearby. Louvado and other officers went to the pickup, where they found a significant quantity of cocaine under an opaque cover that was over the back of the pickup truck. Rivera learned that drugs were found in the truck. Louvado and other officers waited with the cocaine until a SWAT team arrived to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by K.G. After the cocaine was loaded into the surveillance van, Louvado and other officers followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine were turned in to the BPD’s Evidence Control Unit on February 20, 2009. Later that day, a criminal complaint was filed in the United States District Court for the District of Maryland charging T.M. with possessing with intent to distribute five or more kilograms of cocaine.
Rivera, Louvado, and K.G., later discovered three additional kilograms of cocaine in the surveillance van that had been used to transport the cocaine to BPD. These kilograms of cocaine had come from the seizure from T.M.’s pickup truck on February 19 and 20, 2009, but had not been turned in to the BPD on February 20, 2009. Rather than turn this cocaine in to BPD, Rivera, Louvado, and K.G. agreed to sell the cocaine and split the proceeds from its sale.
Rivera sold the cocaine to a confidential informant of his, who trafficked in cocaine. The source sold the cocaine in Baltimore City. Rivera received the proceeds of the sale from his source and then shared them with Louvado and K.G. Ultimately, Rivera received $20,000 in drug proceeds from the sale of the cocaine seized from T.M.’s pickup truck that had not been turned in to BPD.
On March 1, 2017, seven members of the BPD’s Gun Trace Task Force were arrested on federal racketeering charges, including W.J. Following the filing of charges, the FBI continued to investigate misconduct by members of the BPD. On November 1, 2019, Rivera agreed to participate in a voluntary interview with FBI task force officers (“TFOs”). Rivera was told it was a crime to lie to the FBI TFOs interviewing him and he acknowledged he understood. In that interview, Rivera made a number of false statements and material omissions. An example being, the FBI TFO asking, “Did you ever hear of anybody taking any drugs or any money or anything like that from the incident?” to which Rivera replied, “No sir. No.”
Former Baltimore Police detective Ivo Louvado, age 47, of Bel Air, Maryland, pleaded guilty on November 6, 2020, to making false statements to federal agents. No sentencing date has been set for Louvado.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
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Food Suppliers to Pay $250,000 to Resolve Claims of Diluting Spices Sold to PrisonsRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that his office has resolved claims that FlavorPros, LLC; America’s Best Packaging, LLC; Artisan Foods, LLC; Charlene R. Brach; Richard B. Brach; and Richard C. Brach submitted false claims to the Bureau of Prisons (BOP) between October 1, 2011, and December 31, 2018, for food product, particularly spices, that contained significant quantities of filler agents. The food suppliers will pay $250,000 to resolve the claims.
In its complaint, filed November 1, 2019, the United States alleged that FlavorPros, LLC, contracted with the BOP to supply spices that were required by the contract to be in pure condition with no additives, extenders, foreign matter, or flow agents. The United States alleged that FlavorPros sold spices to the BOP that were substantially comprised of filler agent for economic gain. Thus, it was alleged that FlavorPros and its principal, Charlene Brach, submitted false claims for payment by the BOP for the spices that did not meet the purity requirements of the contract. The United States also alleged that Charlene and Richard Brach created Artisan Foods to circumvent administrative suspension of FlavorPros and filed a false claim to the BOP for substandard food product.
As part of the settlement reached today, FlavorPros, America’s Best Packaging, and Artisan Foods will pay the United States $170,000. For their individual roles in the fraud, Charlene Brach will pay the United States $60,000; and Richard B. Brach and Richard C. Brach will each pay the United States $10,000.
“All federal contractors must use tax dollars responsibly and for their intended purpose,” said U.S. Attorney McCoy. “Today’s resolution illustrates the Department of Justice’s emphasis on combating fraud against the government. If a federal contractor fraudulently obtains tax dollars paid by hard-working Americans, this office will act.”
“Contractors that are selected and paid by the government to supply food to inmates are expected to comply with contractual and other standards. When they provide adulterated products, as the defendants allegedly did here, the government is cheated and the health and safety of inmates are placed at risk,” said Kenneth R. Dieffenbach, Special Agent in Charge of the Department of Justice Office of the Inspector General (DOJ OIG) Fraud Detection Office. “The DOJ OIG is committed to rooting out this type of fraud.”
The case was investigated by the U.S. Attorney’s Office for the District of South Carolina and the U.S. Department of Justice Office of Inspector General. The civil settlement was reached for the U.S. Attorney’s Office by Assistant United States Attorneys Beth Warren and Stan Ragsdale, both of the Columbia office.
The claims resolved by this settlement are allegations only. There has been no determination of liability, and the food suppliers did not admit liability.
Anyone who suspects fraud against the Department of Justice or its components should report it at https://oig.justice.gov/hotline
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Florida Man Sentenced for Threatening A VA EmployeeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael F. Hanley, 49, of Clearwater, Florida, who was convicted of threatening a federal employee, was sentenced to serve three years probation, to include six months home detention, by U.S. Magistrate Judge Michael J. Roemer.
Assistant U.S. Attorney Douglas A. Penrose, who handled the case, stated that the defendant was formerly employed by the United States Department of Veterans Affairs (VA) as a Veterans Claims Examiner. During his tenure at the VA, Hanley became acquainted with another VA employee (Victim), and the two had a history of contentious interactions. The defendant left a series of similar voicemails on the Victim’s phone between October 2018 and November 2019, in which he threatened to kill the Victim and the Victim’s family.
The sentencing is the result of an investigation by the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri.
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Felon sentenced to prison for illegally possessing firearmRead the Press Release
HELENA — A man who admitted pawning a firearm after having been convicted of a felony was sentenced today to 26 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Daniel Wayne Baker, 52, a transient, pleaded guilty on Sept. 22, 2020 to prohibited person in possession of a firearm.
U.S. District Judge Sam E. Haddon presided.
In court documents filed in the case, the prosecution said that on Dec. 2, 2019, Baker possessed and pawned a .357 revolver at a pawnshop in Helena. On Jan. 15, 2020, a woman from the Helena area reported Baker’s possession of the revolver to the Lewis and Clark County Sheriff’s Office because he still owed her money from the pawn of the firearm. A deputy confirmed with the Montana Department of Corrections that Baker was on state supervision for a 2013 felony conviction. Baker told law enforcement that he took the firearm from the woman because it caused her distress and acknowledged he could not possess firearms because he was a convicted felon.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montana Department of Corrections’ Probation and Parole and the Lewis and Clark County Sheriff’s Office.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Federal Inmate Pleads Guilty to Making Threats Against Federal AgentsRead the Press Release
BOSTON – A former inmate at the Federal Medical Center (FMC) Devens was sentenced today in connection with making threats against federal agents and threatening to cause an explosion at a federal courthouse.
Nathan Danforth, 34, was sentenced by U.S. District Court Judge Timothy S. Hillman to three years in prison and three years of supervised release. Danforth pleaded guilty on Jan. 20, 2021 to one count of making threats to murder federal law enforcement officers and one count of threats to damage or destroy a building using fire or explosives.
In July 2019, Danforth, then an inmate at FMC Devens, attempted to mail a letter to a federal court in Florida, threatening to kill the agents who previously investigated him and to cause an explosion at the courthouse. In February 2020, Danforth sent an email from FMC Devens to the Department of Justice Office of Inspector General threatening that the President would die and federal buildings would be “blown up.”
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. FMC Devens Special Investigation Section provided valuable assistance to the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office prosecuted the case.
Fairland Woman who Embezzled from her Employer and Signed a False Tax Return SentencedRead the Press Release
A woman who stole nearly $232,000 from her employer over a two-year period and signed a false income tax return was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge John F. Heil III sentenced Stephanie K. Gragg, 45, of Fairland, to 12 months in federal prison followed by one year supervised release. The judge further ordered Gragg to pay restitution in the amounts of $231,964 to Shangri-La Management LLC and $55,036 to the IRS.
“Stephanie Gragg’s corrupt financial shenanigans have earned her the title of convicted felon. Her employer entrusted her with access to corporate funds, and she took advantage of her position to divert corporate money into her personal accounts and to feed a gambling habit,” said U.S. Attorney Trent Shores. “The agents of IRS-Criminal Investigation, in concert with the FBI, are to be commended for their work. From embezzlement to tax crimes to large scale organized crime, they meticulously follow the money to ensure criminals are brought to account for their crimes.”
“Mrs. Gragg's crimes were not victimless. Every time someone cheats on their taxes, there are more than 300 million victims,” said Mark Pearson, IRS-Criminal Investigation Acting Special Agent in Charge of Dallas Field Office. “Honest taxpayers need to be reassured that everyone is paying their fair share. Together with our law enforcement partners, IRS-Criminal Investigation will continue the pursuit of those who violate our tax system.”
From January 2014 to December 2016, Gragg used her access to Shangri-La Management LLC’s cash collections to take $231,964 in cash funds to enrich herself. She deposited a portion of the embezzled cash into her personal accounts at Arvest Bank to pay for personal and family expenses. She also used a portion of the cash funds to gamble.
Gragg further admitted that she knowingly failed to report on her tax returns the funds that she misappropriated from her employer. For example, Gragg signed, under penalty of perjury, her 2016 Form 1040, U.S. Individual Income Tax Return, in which she failed to report $103,377 in illegally obtained funds.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger prosecuted the case.
Everett, Washington, call center manager pleads guilty to defrauding homeownersRead the Press Release
Seattle – The manager of an Everett, Washington, call center pleaded guilty today in U.S. District Court in Seattle to a conspiracy to defraud approximately 1,000 distressed homeowners facing foreclosure, announced U.S. Attorney Brian T. Moran. EDWIN JOSUE HERRERA ROSALES aka “Josh Herrera,” 34 , pleaded guilty to one count of conspiracy to commit wire fraud in connection with his operation of call centers that operated under the names “Sound Solutions Group,” “Community Assistance Center,” and California-based “Sienna Support Network.”
HERRERA ROSALES and his co-conspirators sent solicitation mailers to distressed homeowners nationwide. The mailers promised that HERRERA ROSALES’ organization could reduce homeowners’ mortgage debts and lower their monthly payments. When homeowners called the call center, operators put the callers through a phony “underwriting” process and then told the callers that the company’s legal and underwriting staff had determined it could negotiate a favorable mortgage modification in exchange for an upfront fee of $3,000. In fact, the call center had no legal or underwriting staff, and many of the homeowners did not receive the promised modifications.
HERRERA ROSALES is scheduled for sentencing by U.S. District Judge John C. Coughenour on May 4, 2021.
According to records filed in the case, HERRERA ROSALES conspired with others based in Southern California to operate the scheme. Each week the operation sent approximately 4,000 mailers to distressed homeowners across the country. The mailers stated that that the homeowner had been “pre-approved” for a new government program, under which HERRERA ROSALES’s organization could negotiate a mortgage modification. For example, one mailer said that HERRERA ROSALES’s organization could reduce a borrower’s loan balance by over $140,000 and could reduce the interest rate to 2%. The mailers urged the homeowners to call the Everett call center for assistance.
HERRERA ROSALES oversaw a staff of call center operators. When homeowners contacted the call center, HERRERA ROSALES directed the operators to follow a script designed to make it appear as if each caller’s mortgage was being reviewed by the company’s “underwriting” and “legal department” to make sure the homeowner qualified for the supposed federal program. In fact, the call center had no legal staff or underwriting department. Instead, operators were instructed simply to put each caller on hold for a pre-determined amount of time, to make it appear a review was underway. The operator then would return to the line and tell each victim that he or she was one of the “very select few” who qualified for the program—but only if the homeowner paid the call center a $3,000 fee. If the homeowner balked at the fee, the call center staff had another script with certain “hot button” statements to persuade them to sign the documents. It is impermissible under federal regulations to charge upfront fees for mortgage modification services.
Once the contracts were signed, the call center submitted the homeowner’s paperwork to a California-based loan processing group, which made some minimal efforts to restructure the debt. While a limited number of customers obtained a lower monthly payment, the vast majority had no change or, in some cases, a higher monthly payment. The call center used a phony address, and operators used aliases to disguise their identities.
Between March 2016 and May 2018, about 1,000 customers paid over $2.5 million to the various entities operated by HERRERA ROSALES. After HERRERA ROSALES paid the expenses of the call centers and paid a share to his co-conspirators, he kept approximately $360,000.
Conspiracy to commit wire fraud is punishable by up to five years in prison.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
herrera_rosales_information.pdfEstherville, Iowa, Police Officer Honored for Commitment to Drug Abuse PreventionRead the Press Release
An Estherville, Iowa, police officer is being honored by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for his commitment to reducing drug abuse. The recipient of the Enrique S. Camarena Award is Captain Nathaniel Dunlavy of the Estherville Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured, and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
Captain Dunlavy has gone above and beyond the call of duty in pursuit of a drug-free community, worked tirelessly to reduce drug abuse, and is a worthy recipient of this distinguished award. Captain Dunlavy spent over a decade as the DARE officer for Estherville schools. During that time, he expanded the program to include all students in kindergarten through fifth grade. He also started teaching refresher courses in middle and high school, ensuring the students he previously taught remembered what they learned. Through the DARE program, Captain Dunlavy impacted an entire generation of students.
Captain Dunlavy’s contributions to keeping young people drug free did not end with his work in the DARE program. He volunteered thousands of hours of his own time to teach, coach, and mentor hundreds of youth. Through his interactions with students, he not only served as a teacher, but as a positive role model. Captain Dunlavy is especially good at identifying young people who may be on a bad path, connecting with them, and helping them avoid drug use or other destructive behaviors.
Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, stated, “Captain Dunlavy is dedicated to educating students about the risks of drugs and substance abuse. By his actions, he has demonstrated that engaging with young people and being a positive role model is key to ensuring students remain drug free.”
“Captain Dunlavy’s commitment to students as a school resource officer, DARE program leader, coach, mentor and friend, exemplify the beliefs of fallen DEA Special Agent Enrique (Kiki) Camarena,” DEA Omaha Division Acting Special Agent in Charge Darin Thimmesch said. “Kiki strongly believed that one person could make a difference in the life of another and Captain Dunlavy has proven that true time and time again. On behalf of DEA, we thank Captain Dunlavy for his service and encouragement to future generations to live a drug-free life.”
United States Attorney Deegan will present Captain Dunlavy with the Enrique S. Camarena Award in Estherville on January 26, 2021.
Follow us on Twitter @USAO_NDIA.
El Departamento de Justicia Llega a un Acuerdo con una Compañía de Consultoría Informática con Sede en Nueva Jersey que Resuelve Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Quantum Integrators Group (Quantum), una compañía de contratación y consultoría informática con sede en Nueva Jersey. El acuerdo resuelve las acusaciones de que Quantum (1) discriminó a una residente permanente legal al requerir, por motivos de su estatus de ciudadanía, que proporcionara documentación innecesaria antes de referirla para una oportunidad laboral y (2) requería, de forma rutinaria, a personas no ciudadanas de los EE. UU. que presentasen documentos innecesarios para demostrar su elegibilidad para trabajar.
«Las compañías no pueden solicitar documentos innecesarios de autorización para trabajar por motivos del estatus de ciudadanía de uno o condicionar una referencia para un puesto laboral al cumplimiento con tal solicitud», dijo Gregory B. Friel, el Fiscal General Auxiliar Adjunto de la División de Derechos Civiles. «Nos complace ver que Quantum colaborará con el Departamento de Justicia para garantizar que sus políticas y prácticas no discriminen a las personas por motivos de su estatus de ciudadanía».
La investigación del Departamento comenzó después de que una residente permanente legal presentó una demanda contra Quantum ante la División de Derechos Civiles. Con base en su investigación, el Departamento concluyó que Quantum se negó a referirla a un cliente para ser considerada para una oportunidad laboral antes de presentar una copia de su Tarjeta de Residente Permanente para demostrar su autorización para trabajar. Según la investigación, Quantum hubiera referido a un candidato ciudadano estadounidense al cliente sin requerir semejante prueba de autorización para trabajar. Más aún, el Departamento concluyó que Quantum tenía la costumbre de requerir a otros individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. que proporcionaran documentos adicionales e innecesarios para demostrar su elegibilidad para trabajar.
La Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar la elegibilidad para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. Todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos. La INA tampoco permite a los empleadores verificar la elegibilidad del individuo para trabajar antes de que el mismo acepte una oferta de trabajo.
Conforme a los términos del acuerdo, Quantum pagará una sanción civil a los Estados Unidos, revisará sus políticas y procedimientos, asegurará que los empleados relevantes participen en una capacitación sobre los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión por parte del Departamento durante el término del acuerdo.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery
Cuba Man Sentenced for Meth Trafficking Following High-Speed Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Cuba, Missouri, man has been sentenced in federal court for methamphetamine trafficking following a high-speed police chase.
Shannon L. Brim, 33, was sentenced by U.S. District Judge Roseann Ketchmark on Monday, Jan. 25, to 14 years in federal prison without parole.
On Sept. 20, 2020, Brim pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
A Missouri State Highway Patrol trooper responded to a report of careless and imprudent driving on Missouri 291 in Cass County on Aug. 18, 2019. The trooper located the vehicle, a silver Pontiac passenger car being driven by Brim, and attempted to conduct a traffic stop. The vehicle accelerated and a pursuit began. The pursuit continued southbound on Missouri 291, reaching speeds of 80 miles per hour. The Pontiac repeatedly crossed the center line and passed several vehicles. The pursuit passed a golf course, and a golfer threw an orange golf ball and struck the Pontiac. The Pontiac traveled off the south side of the roadway and became disabled in a sod farm, where Brim was arrested. Brim had an active parole warrant for his arrest.
The trooper searched Brim’s vehicle and found a plastic bag wrapped in duct tape, which contained approximately 1.14 pounds of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the DEA, the Missouri State Highway Patrol, the Cass County, Mo., Sheriff’s Department, and the Harrisonville, Mo., Police Department.
Cryptocurrency Trader Charged in Manhattan Federal Court with Fraudulent Scheme Involving over $5 MillionRead the Press Release
AUDREY STRAUSS, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JEREMY SPENCE, a/k/a “Coin Signals,” a cryptocurrency trader who solicited funds for various cryptocurrency funds that he operated, with commodities fraud and wire fraud offenses. As alleged, SPENCE took cryptocurrency worth over $5 million from more than 170 individual investors after making false representations in connection with these cryptocurrency funds. SPENCE was arrested this morning in Rhode Island and will be presented later today before Magistrate Judge Patricia A. Sullivan in the U.S. District Court for the District of Rhode Island.
Manhattan U.S. Attorney Audrey Strauss said: “Jeremy Spence, a/k/a, ‘Coin Signals,’ allegedly lured investors to his cryptocurrency investment scam by touting returns of up to 148%. Spence’s investments not only failed to reach his audacious claims, they consistently lost money, leaving a $5 million void in his clients’ crypto accounts. Spence’s alleged conduct should strongly signal would-be investors to thoroughly educate themselves in the cryptocurrency ecosystem before falling prey to investment scams promising huge returns for small investments that are indeed too good to be true.”
FBI Assistant Director-in-Charge Sweeney said: “As alleged, Jeremy Spence misrepresented the success of his investment platform in order to entice people to send money his way. Because his trading was less than profitable and significantly less successful than he represented to investors, he used money from new investors to pay off others in order to keep his plan moving—a typical marker of a Ponzi scheme. Whether investing with cash, shares, or virtual currency, our advice to investors always remains the same—exercise due diligence, and when something just doesn’t seem right, report suspicious activity to the authorities.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
From November 2017 through April 2019, SPENCE solicited investors in various cryptocurrency investment pools that SPENCE had created and managed (the “Funds”). SPENCE solicited investments for several Funds, the largest and most active of which were the Coin Signals Bitmex Fund, a/k/a the “CS Mex Fund,” the Coin Signals Alternative Fund, a/k/a the “CS Alt Fund,” and the Coin Signals Long Term Fund. Investors who wanted to participate in a Fund would transfer cryptocurrency, such as Bitcoin and Ethereum, to SPENCE in order for SPENCE to invest it.
SPENCE solicited these investments through false representations, including that SPENCE’s crypto trading had been extremely profitable when, in fact, SPENCE’s trading had been consistently unprofitable. For example, on January 28, 2018, SPENCE posted a message in an online chat group falsely claiming that his trading of investor funds over the past month had generated a return of more than 148%. As a result of this misrepresentation, investors transferred additional funds to SPENCE. In fact, over that same period of approximately one month, SPENCE’s trading resulted in net losses in the accounts in which he traded investor funds.
To forestall redemptions by investors, and to continue to raise money from investors to fund his scheme, SPENCE generated fictitious account balances, which he made available to investors online. Instead of accurately reporting the trading losses SPENCE was incurring, the account balances falsely indicated to investors that they were making money by investing with SPENCE. To hide his trading losses, SPENCE used new investor funds to pay back other investors in a Ponzi-like fashion. In total, SPENCE distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors.
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SPENCE, 24, of Bristol, Rhode Island, is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine Magdo is 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 should be treated as an allegation.
Claypool Man Sentenced to over 24 Years in PrisonRead the Press Release
SOUTH BEND – Kenneth Hyatt, age 53, of Claypool, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to receipt of child pornography, announced Acting U.S. Attorney Bell.
Mr. Hyatt was sentenced to 293 months in prison followed by 10 years of supervised release and ordered to pay $14,930.00 restitution.
According to documents filed in this case, Hyatt uploaded 65 images of child pornography to his Dropbox account. These images along with others depicted children under the age of 12 participating in bondage or sadistic conduct. In addition, Hyatt possessed at least 143 total images of child pornography. Six months before committing the instant offense, Hyatt was released from prison for a state conviction of possession of child pornography.
This case was investigated by the Department of Homeland Security Investigations and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney John M. Maciejczyk.
On August 30, 2022, Hyatt was re-sentenced to 234 months in prison.
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Claremont Man Sentenced to 37 Months for Drug TraffickingRead the Press Release
CONCORD - Jonathan Santiago-Perez, 35, of Claremont, was sentenced to 37 months in federal prison for drug trafficking on Monday, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on three occasions between January and April of 2019, an individual who was cooperating with law enforcement officers purchased crack cocaine from Santiago-Perez.
Santiago-Perez previously pleaded guilty on February 20, 2020.
“Drug trafficking is a serious offense that undermines public health and safety,” said U.S. Attorney Murray. “In order to safeguard our citizens, we will continue to work closely with our law enforcement partners to identify and prosecute the dealers who sell dangerous drugs in the Granite State.”
This matter was investigated by the Drug Enforcement Administration offices in New Hampshire as well as Springfield and Burlington, Vermont, with assistance from the New Hampshire State Police, Massachusetts State Police, United States Postal Inspection Service, New Hampshire Attorney General’s Drug Task Force, Vermont State Police Drug Task Force, Manchester Police Department, Claremont Police Department, Lebanon Police Department, Hartford, Vermont Police Department, and the Hampden County, Massachusetts Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Chicago Man Charged in Conspiracy to Sell U.S. Government Checks Stolen from the MailRead the Press Release
CHICAGO —A Chicago man has been indicted on federal criminal charges for allegedly conspiring with a U.S. Postal Service employee and others to sell U.S. government checks stolen from the mail.
An indictment returned Monday in federal court in Chicago charges AKEEM KOSOKO, 26, with one count of conspiracy to steal mail and government funds, three counts of embezzlement of government property, and three counts of receipt of stolen mail. Arraignment has not yet been scheduled.
According to the indictment, Kosoko conspired with his brother, who worked as a postal carrier, and others to have U.S. Treasury checks taken from the mail and sold to others. The checks were issued last year as part of the Coronavirus Aid, Relief, and Economic Security Act. Kosoko’s brother, AHMED KOSOKO, 35, of Chicago, was previously charged by federal criminal complaint with one count of conspiracy to steal mail and government funds.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andre Martin, Special Agent-In-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Special Assistant U.S. Attorney M. Claire Nicholson.
The public is reminded that an indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Charlotte Man Is Sentenced to 17 ½ Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced today George Malcolm Hargrove, 30, of Charlotte, to 17 ½ years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Hargrove to serve 30 years supervised release and to register as a sex offender after he is released from prison.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on or about June 11-12, 2018, the FBI determined that an individual, later identified as Hargrove, was using an online file sharing network to exchange child pornography with another user. Court records show that, in October 2018, the FBI executed a search warrant at Hargrove’s residence and seized Hargrove’s laptop and other devices. A forensic examination of the seized items revealed that Hargrove possessed hundreds of images and videos depicting the sexual abuse of minors, including prepubescent children. Hargrove was arrested on state offenses. In April 2019, Hargrove was indicted on federal child pornography charges and was released on pretrial probation.
On July 19, 2019, the U.S. Probation Office conducted an inspection of Hargrove’s residence. U.S. probation officers discovered that Hargrove was using the internet to contact a 14-year-old girl. According to court records, Hargrove, who knew the age of the minor, began communicating with her online prior to his arrest, and continued his communication with her while on pretrial release.
On October 7, 2019, Hargrove pleaded guilty to possession, distribution and attempted receipt of child pornography. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray commended the FBI for their investigation of the case and thanked the U.S. Probation Office for their invaluable assistance.
Assistant United States Attorneys Emily Wasserman and Cortney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chapel Hill Man Pleads Guilty in Elder Fraud Home Repair SchemeRead the Press Release
Greensboro, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that JORGE ALBERTO GARCIA, also known as “Alberto Garcia” and “Roberto Garcia”, pled guilty to a Bill of Information charging one count of conspiracy to commit wire fraud, that is, a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises, in a home repair scheme, as well as two counts of failure to file income tax returns.
“We will not tolerate elder fraud. It is despicable conduct,” said U.S. Attorney Martin. “I commend the FBI, IRS Criminal Investigations Division, and the local law enforcement agencies involved in his investigation who helped stop this abuse and bring about today’s plea.”
The Information alleges that from on or about September 2015 to and including April 2020, GARCIA approached elderly, retired individuals at their private residences in Durham, Orange, and Chatham Counties, offering home improvement services using the business names “J&J Home Improvement” and “JH Home Improvements, Inc.” Many of these victims had physical or mental infirmities. GARCIA—who never had a state general contractor’s license—would offer to perform home improvement projects and these elderly individuals would, in turn, pay him prior to the completion of any construction work via personal checks, credit cards, or withdrawals from investment accounts. GARCIA would often direct that these individuals leave the “to” line of the check blank (which would later be completed in the name of his wife), or issue the check directly to his wife, who, in turn, deposited the checks into personal accounts in her name or that of her business, La Cacerola. GARCIA’s wife would then withdraw the money in cash and/or issue a cashier’s check made out to GARCIA. GARCIA and his wife would also take the checks to the elderly individual’s bank or their bank and cash the checks without depositing the funds into their bank accounts.
Filed documents further state GARCIA would develop personal relationships with these elderly individuals, calling them “Momma” and “Poppa,” and encourage them to solicit their neighbors to engage his services in home improvement projects for their residences, as well. GARCIA also solicited loans from some of the elderly individuals for whom he had already contracted to perform home improvement projects, separate and apart from those projects. In at least one instance, he received a check from a victim for such a loan and returned to that victim’s home later that same day to request the loan again. The victim, not remembering that he had written the first check, issued yet another check for the same amount to GARCIA.
However, GARCIA would not complete the contracted home improvement projects, nor would he repay any loans in full. When the contracting individual, a concerned relative of that person, or a local law enforcement officer confronted GARCIA about the payments, GARCIA would respond in the following ways: a) GARCIA would promise to send workers to complete the project but never fully complete the project; b) GARCIA or his wife would return a small percentage of the monies paid for the project; and/or c) GARCIA or his wife would write a personal check to the contracting individual that would be returned by the issuing bank as lacking sufficient funds. On more than one instance, GARCIA urged the victim not to contact the authorities about the unfinished work.
Review of records from bank accounts known to be controlled by GARCIA and/or his wife for the time period spanning May 2014 through November 2019 indicates that, as a result of the above-described scheme to defraud, GARCIA obtained a total of approximately $3,258,511.48 belonging to multiple victims.
Further, as reflected in the factual basis filed in support of GARCIA’s guilty plea, GARCIA and his wife have filed no federal income taxes since 2007, either personally or for their respective businesses. For the tax years 2014, 2015, 2016, 2017, and 2018, GARCIA and his wife had a joint income totaling $3,242,130.00. In calendar years 2017 and 2018, GARCIA had and received gross income exceeding the amount required to file an income tax return with the Internal Revenue Service; GARCIA knew this and willfully failed to file a return.
“Jorge Garcia targeted and systematically ripped off more than a hundred elderly victims without a second thought. These types of crimes will not be tolerated. Justice was served today, and the FBI hopes his federal prison sentence provides some comfort and a sense of security to the victims,” said Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
“Today’s admission of guilt by Mr. Garcia is an example of how the justice system will succeed in holding criminals accountable for their actions,” said Special Agent in Charge Matthew D. Line of the Internal Revenue Service, Criminal Investigations. “Mr. Garcia, motivated by pure greed, not only preyed on the elderly and vulnerable, but also
cheated the entire American public by failing to pay into the tax system; as a result, he now faces a prison sentence for his crimes.”
The terms of the plea agreement call for GARCIA to serve a sentence of 84 months of imprisonment. The Court can choose to reject this disposition at sentencing, in which case the matter would go to trial. The charges in the Information carry a maximum of twenty-two years of imprisonment, a term of supervised release of not more than three years, a fine not to exceed $300,000 or not more than the gross gain or loss, and a mandatory special assessment of $150.
Sentencing is scheduled to take place on June 15, 2021 at 9:00 am in Winston-Salem Courtroom Number Four before the Honorable Loretta C. Biggs.
The case was investigated by the Federal Bureau of Investigation (in coordination with the Durham Police Department, Chatham County Sheriff’s Office, Chapel Hill Police Department, Carrboro Police Department, and Cary Police Department) and the Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Canonsburg Man Sentenced for Conspiring to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of Canonsburg, PA, has been sentenced in federal court to 42 months’ imprisonment on his conviction of conspiracy to possess with intent to distribute and distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Antoine Dean, Jr., age 31.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Antoine Dean, Jr. conspired to distribute over 28 grams of crack cocaine.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Dean, Jr.
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.
California Man Pleads Guilty to Wire Fraud and ConspiracyRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Worcester to federal tax and fraud charges arising from his role with various Worcester-based employment agencies.
Julio Lopez, 43, of Los Angeles, Calif., and formerly of Worcester, pleaded guilty to two counts of wire fraud and one count of conspiring to defraud the United States. Lopez was charged in December 2020. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 27, 2021.
Lopez worked for Worcester-based employment agencies Bay State, Prime Labor and UT Services. Bay State misrepresented the number of its employees and the wages earned by such employees and failed to report cash wages to the IRS and to its workers compensation insurance carrier. In 2016, in connection with a client audit, another Bay State employee fabricated payroll documents that falsely showed that deductions were taken from employees’ paychecks for payroll taxes, and Lopez provided these fabricated documents to the client.
After Bay State ceased operations in approximately November 2017, Lopez was involved in shifting certain Bay State clients to UT Services, an agency controlled by Tam Vuong. Thereafter, Lopez and, allegedly, Vuong, engaged in a scheme to defraud by misrepresenting the number of employees who worked for UT Services and the wages earned by such employees. UT Services paid most of its employees in cash and then failed to report those employees and the cash wages to the IRS and to its workers compensation insurance carrier. During the time he worked for UT Services, Lopez knew that federal law enforcement was investigating the cash payroll practices of various employment agencies, and used an email address associated with a fake name so that that his own name would not be tied to UT Services.
In August 2019, Vuong was indicted on fraud and tax charges in connection with his oversight of UT Services and Prime Labor and is scheduled to stand trial on Sept. 7, 2021.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The conspiracy charge provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Lelling’s Major Crimes Unit, and Ian Stearns of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Charged with Making Threats Directed Against A New York City-Based U.S. Congressman and A Journalist, Citing Their Statements About the Results of the 2020 Presidential ElectionRead the Press Release
Audrey Strauss, U.S. Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that ROBERT LEMKE was arrested today based on a criminal Complaint filed in Manhattan federal court charging LEMKE with making threatening interstate communications. LEMKE allegedly sent threatening text messages on January 6, 2021 to family members of a New York City-based U.S. Congressman (the “Congressman”) and a New York City-based family member of a journalist (the “Journalist”). LEMKE was arrested in Bay Point, California, and will be presented tomorrow in the United States District Court for the Northern District of California.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Robert Lemke was dissatisfied with the results of the 2020 Presidential Election and subsequent statements about the election made by a U.S. Congressman and journalist. Rather than peaceably disagree, Lemke allegedly threatened to harm those individuals’ families, demanding they retract their statements. The electoral process is the essential mechanism through which our democracy functions. While in any election it is inevitable that some will be disappointed in the result, threats of violence cannot and will not be tolerated.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Lemke’s alleged threats, aimed at the family members of a sitting U.S. Representative and a journalist, crossed a bright line. The FBI’s New York Joint Terrorism Task Force is always on watch, and we act with speed to stop violence - whether the threat comes from within our borders or from outside them. That's how we do it. As always, it is the partnership with our communities that makes us most effective. If you have any additional information that could benefit this case, or are aware of an active threat, we urge you to call 1-800-CALL-FBI.”
NYPD Commissioner Dermot Shea said: “To those individuals and groups that would seek to threaten a United States Congressman, this arrest should serve as a warning that the NYPD and its law enforcement partners, will ensure you are held accountable for your actions. I want to commend the FBI Agents, NYPD Detectives, and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the Complaint unsealed in Manhattan federal court[1]:
On January 6, 2021, the same day that individuals purporting to protest the 2020 Presidential Election gathered in Washington, D.C. and stormed the Capitol Building, ROBERT LEMKE sent threatening text messages to the brother of the New York City-based Congressman, citing the Congressman’s statements about the results of the 2020 Presidential Election. LEMKE’s text messages, which included a picture of a home in the same neighborhood as the home of the Congressman’s brother, stated:
Your brother is putting your entire family at risk with his lies and other words. We are armed and nearby your house. You had better have a word with him. We are not far from his either. Already spoke to [the Congressman’s son] and know where his kids are.
. . . your words have consequences. Stop telling lies; Biden did not win, he will not be president. We are not[] white supremacists. Most of us are active/retired law enforcement or military. You are putting your family at risk. We have armed members near your home . . . . . Don’t risk their safety with your words and lies.
Also on January 6, 2021, LEMKE sent threatening text messages to the Congressman’s sister-in-law, stating: “calm your husband down . . . . We saw on the hidden camera, he was quite stirred up. You need to have him talk to [the Congressman].”
In addition, also on January 6, 2021, LEMKE sent threatening text messages to a relative of the Journalist, stating: “[The Journalist’s] words are putting you and your family at risk. We are nearby armed and ready. Thousands of us are active/retired law enforcement, military, etc. That’s how we do it.”
LEMKE’s Facebook account has as its background image a photograph of Mark and Patricia McCloskey, who were charged with criminal offenses last summer after they pointed firearms at Black Lives Matter demonstrators near their home in St. Louis, Missouri. On November 7, 2020, LEMKE posted to Facebook: “Folks. Be ready for war. Trump has refused to cede. Evidence shows fraud occurred and the Supreme Court cases will be successful. We blockchained and watermarked ballots in 16 states. Trump will prevail.[] Spread this message. . . . FAITH my fellow Republicans. Do not give up. Keep an eye out for a variety of protests, and Stop The Steal Facebook groups for updates.”
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ROBERT LEMKE, 35, of Bay Point, California, is charged with making threatening interstate communications, which carries a maximum sentence of five years’ imprisonment. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI’s San Francisco Field Office. Ms. Strauss also thanked the U.S. Attorney’s Office for the Northern District of California for its assistance.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jacob H. Gutwillig, Matthew J. Laroche, Kimberly J. Ravener, Benjamin W. Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Butler Man Pleads Guilty to Wire Fraud in Connection with Theft of Approximately $1.5 Million from Former EmployerRead the Press Release
PITTSBURGH, Pa. – A resident of Butler, Pennsylvania, pleaded guilty in federal court to one count of wire fraud related to his theft of corporate funds from his former employer, United States Attorney Scott W. Brady announced today.
Paul Harmon, 63, pleaded guilty before United States District Judge Nicholas Ranjan.
During his plea hearing, Harmon admitted that for over 40 years he was the corporate controller for Butler-based Fuellgraf Electric Company, and an affiliated company, Technical Management Associates (collectively, "Fuellgraf"), which supplied electricians and related services to a variety of industrial and commercial business customers located primarily in Pennsylvania and Florida. As controller, Harmon admitted that he exercised day-to-day responsibility for and control over Fuellgraf’s finance, accounting, and treasury functions. He also maintained check-writing authority for Fuellgraf’s business bank accounts and control of Fuellgraf’s internal books and records.
Between at least October 2009 and his termination in December 2018, Harmon admitted that he misappropriated approximately $1.5 million in Fuellgraf funds and concealed his theft through manipulation of Fuellgraf’s books and records. As part of Harmon’s scheme to defraud Fuellgraf, he admitted stealing funds in a variety of ways, including by: causing the company to issue over $470,000 in duplicate or inflated payroll disbursements to Harmon, initiating electronic payments toward his personal credit card balances totaling approximately $500,000, issuing approximately $10,000 in corporate checks to pay his personal credit card balances, issuing almost $80,000 in corporate checks to himself, and misappropriating $200,000 in corporate checks written to cash. In addition, Harmon admitted that he issued Fuellgraf corporate checks to an entity he controlled, PM Accounting, totaling more than $200,000, for purported accounting work performed on behalf of Fuellgraf, when, in fact, no such work occurred. Harmon concealed his misappropriation by creating hundreds of false entries in Fuellgraf’s books and records that masked the true nature and purpose of the expenditures.
As part of a written plea agreement, Harmon agreed to make restitution to Fuellgraf in the amount of $1,466,456.71.
Harmon faces a maximum sentence of 20 years in prison and a fine of not more than the greater of (i) $250,000 or (ii) an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person. 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 Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the charge in this case.