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12 March 2021
Auto Transport Company Owner Sentenced for Falsifying Motor Carrier Safety Records, Fraud, ID Theft, Tax EvasionRead the Press Release
PROVIDENCE – The owner of an East Providence automobile transport company has been sentenced to 30 months in federal prison for falsifying U.S. Department of Transportation (DOT) - Federal Motor Carrier Safety Administration (FMCSA) records, utilizing another person’s personal identifying information to continue to illegally operate his auto hauling business after being ordered to shut down, fraudulently obtaining more than $400,000 from various financial institutions, and taking evasive steps to avoid paying personal income taxes owed to the IRS.
According to information presented to the court, Michael Chaves, 41, owner of CAT Inc., continued to operate a fleet of auto transport trucks after having been cited for, among other things, allowing drivers to operate without a current or properly classified license; failing to maintain certifications that drivers were medically able to drive; failing to implement a driver alcohol or controlled substances testing program; and allowing drivers to exceed the maximum number of hours of driving allowed under the law.
Chaves utilized another person’s personal identifying information to continue to illegally operate the business after FMCSA ordered the business shutdown.
Additionally, Chaves fraudulently obtained more than $400,000 from various financial institutions by employing schemes during which he obtained $332,000 in loans and funds from several banks and credit unions by providing fraudulent earning statements, tax returns, motor vehicle purchase contracts, and Department of Motor Vehicle documents; caused the fraudulent wire transfer between financial institutions of $72,864.28; and executed a scheme by submitting 15 fraudulent checks he created to an automobile seller’s bank account from which he obtained $64,453.
Additionally, according to information presented to the court, Chaves took several steps to evade income taxes by, among other things, commingling business and personal expenses; using a check casher to divert third-party income; creating fraudulent third-party checks and cashing them using a check casher, rather than a bank; and maintaining approximately 15 different bank accounts using at least five different company names.
Chaves pleaded guilty on August 22, 2020, to a ten-count information charging him with falsification of records, aggravated identity theft, five-counts of bank fraud, two-counts of wire fraud, and tax evasion.
Chaves was sentenced on Wednesday by U.S. District Court Judge William E. Smith to 30 months in federal prison to be followed by three years of federal supervised release, announced Acting United States Attorney Richard B. Myrus Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Ramsey E. Covington, and Acting Special Agent-in-Charge Daniel Helzner, U.S. Department of Transportation Office of Inspector General, Northeast Region.
A restitution order will be forthcoming from the court. In addition to restitution to be paid in the fraud schemes connected to the operation of his auto transport company, the order will include restitution to be paid by Chaves to Amazon. It was alleged in court documents that Chaves defrauded Amazon through theft of inventory through falsely represented returns. It is alleged in court documents that Chaves ordered products from Amazon and, at times, replaced the original products with lesser value replacements, often items different than the ones he originally ordered, before returning the packages to Amazon for refunds.
Chaves’ alleged Amazon refund scams were discovered during the investigation by Internal Revenue Service Criminal Investigation and U.S. Department of Transportation Office of Inspector General into Chaves’ auto transport company.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
Acting United States Attorney Myrus thanks officers from the East Providence Police Department and the National Crime Insurance Bureau for their assistance in the investigation of this matter.
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Austin Man Sentenced to 20 Years in Prison for Distributing Child PornographyRead the Press Release
Acting United States Attorney W. Anders Folk today announced the sentencing of PHILLIP ARLAN KOONTZ, 53, to 20 years in prison for distributing child pornography. KOONTZ, who pleaded guilty on January 22, 2020, was sentenced yesterday afternoon by Judge Joan N. Ericksen in U.S. District Court.
“The sexual exploitation of children is a heinous crime, one deserving of a lengthy prison sentence,” said Acting U.S. Attorney Anders Folk. “Here in Minnesota we are fortunate to have dedicated federal, state, and local investigators who are committed to seeking justice for those who abuse and exploit innocent children.”
“This repeat offender will spend the next 20 years behind bars,” said Jamie Holt, acting special agent in charge of HSI St. Paul. “Community safety is our top priority and hopefully this lengthy sentence will give peace of mind to his victims and their families. HSI special agents will continue to work with our Minnesota law enforcement partners, like the Austin police, to relentlessly pursue child predators and ensure they are brought to justice.”
According to the defendant’s guilty plea and documents filed with the court, on April 30, 2018, KOONTZ began chatting online with an undercover federal agent who was posing as a 13-year-old girl. KOONTZ sent to the agent multiple images containing sexually explicit content involving minors, falsely representing that the images were of KOONTZ’s daughters and her friends. KOONTZ also possessed 478 sexually explicit images depicting minors, including prepubescent minors. KOONTZ has a previous felony conviction in Mower County for criminal sexual conduct in the second degree.
This case was the result of an investigation conducted by Homeland Security Investigations and the Austin Police Department.
This case was prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Defendant Information:
PHILLIP ARLAN KOONTZ, 53
Austin, Minn.
Convicted:
- Distribution of child pornography, 1 count
Sentenced:
- 240 months in prison
- 20 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Acting U.S. Attorney Leary Warns About Fraudsters Stealing Personal Information and Claiming COVID-19 Benefits Using Fake WebsitesRead the Press Release
MACON, Ga. – The Department of Justice’s National Unemployment Insurance Fraud Task Force (NUIFTF) is warning that criminals are creating websites mimicking unemployment benefit websites, including state workforce agency (SWA) websites, to steal personal information and file fraudulent unemployment insurance (UI) benefits provided as a response to the COVID-19 pandemic, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
“Fraudsters, true to form, are taking criminal advantage of the unemployment insurance benefits provided to people in real need during the COVID-19 pandemic and committing identity theft by filing for benefits using stolen information. This crime is widespread, and citizens need to keep their guard up against phishing schemes and other attempts to steal personal information,” said Acting U.S. Attorney Leary. “Our office will continue our ongoing efforts to investigate and prosecute all those committing identity theft here in the Middle District of Georgia.”
The NUIFTF recently alerted citizens about the issuance of erroneous 1099-G Forms as a result of this fraud. Since UI benefits are taxable income, SWAs issue 1099-G Forms to recipients and the Internal Revenue Service (IRS) to report the amount of taxable unemployment compensation received and any withholding. Due to widespread fraud, much of it involving identity theft, citizens may receive a 1099-G indicating they collected UI benefits, when in fact they have not. In other instances, Americans may not receive a 1099-G, but later learn from the IRS or another party that their identity was used to file for UI benefits without their knowledge or consent.
There are steps that victims can take to help remedy the situation if they receive a 1099-G Form for unemployment compensation they did not receive, including filing an identity theft complaint with the Department of Justice’s National Center for Disaster Fraud (NCDF). To learn more about these steps, please visit the following website: https://www.irs.gov/identity-theft-fraud-scams/identity-theft-and-unemployment-benefits. To report fraud, taxpayers can complete an NCDF complaint form online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form or by calling 866-720-5721.
To lure consumers to these fake websites, fraudsters send spam text messages and emails purporting to be from an SWA and containing a link. The fake websites are designed to trick consumers into thinking they are applying for unemployment benefits and disclosing personally identifiable information and other sensitive data. That information can then be used by fraudsters to commit identity theft.
Unless it is received from a known and verified source, consumers should never click on links in text messages or emails claiming to be from an SWA offering the opportunity to apply for unemployment insurance benefits. Instead, anyone needing to apply for unemployment benefits should go to an official SWA website, a list of which can be found at https://www.careeronestop.org/localhelp/unemploymentbenefits/unemployment-benefits.aspx.
Schemes that use links embedded in unsolicited text messages and emails in attempts to obtain personally identifiable information are commonly referred to as phishing schemes. Phishing messages may look like they come from government agencies, financial intuitions, shipping companies, and social media companies, among many others. Carefully examine any message purporting to be from a company and do not click on a link in an unsolicited email or text message. Remember that companies generally do not contact you to ask for your username or password. When in doubt, contact the entity purportedly sending you the message, but do not rely on any contact information in the potentially fraudulent message.
If you believe you may have entered information into a fraudulent website, resources on how to protect your information can be found at: www.identitytheft.gov.
Further information about the SWA-imposter scheme, and other major scams targeting American consumers, can be found at the Justice Department’s Transnational Elder Fraud Strike Force website: https://www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
Members of NUIFTF include: Department of Labor Office of Inspector General, U.S. Secret Service, Homeland Security Investigations, IRS-Criminal Investigation, U.S. Postal Inspection Service, Social Security Administration Office of Inspector General and FDIC Office of Inspector General. Find out more about the NUIFTF at: https://www.justice.gov/file/1319301/download.
For more information about the Consumer Protection Branch, visit http://www.justice.gov/civil/consumer-protection-branch. 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.
3 Additional Members of Alleged Fraud Ring Based in San Fernando Valley Arrested on Charges of Exploiting COVID-Relief ProgramsRead the Press Release
LOS ANGELES – Expanding a case in which four people were indicted last year, federal authorities have charged four new defendants with participating in a scheme that allegedly submitted more than 150 fraudulent loan applications seeking nearly $22 million in COVID-19 relief funds authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Justice Department announced today.
Three of the new defendants were arrested Thursday as the result of a 33-count superseding indictment that charges a total of eight defendants with using fake, stolen or synthetic identities to submit fraudulent applications for loans guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Relief Program (EIDL) and the Paycheck Protection Program (PPP) under the CARES Act.
The three defendants arrested Thursday are: Manuk Grigoryan, 27, of Sun Valley; Edvard Paronyan, 40, of Granada Hills; and Vahe Dadyan, 41, of Glendale. All three were arraigned on the superseding indictment Thursday afternoon in United States District Court in downtown Los Angeles. During court appearances that continued into the evening, a United States Magistrate Judge released all three on bond and ordered them to stand trial on May 4.
A fourth new defendant charged in the superseding indictment – Arman Hayrapetyan, 38, of Glendale – is still being sought by federal authorities.
The superseding indictment, which was filed on Tuesday, adds the four new defendants to an indictment filed in November that led to the arrests of co-defendants Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan and Tamara Dadyan.
According to the superseding indictment, the eight defendants conspired together, and with others, as part of a disaster-relief loan fraud ring that submitted fraudulent loan applications that often included fake identity documents, tax documents and payroll records. The eight defendants “submitted and caused the submission of at least 151 fraudulent PPP and EIDL loan applications seeking a total of at least $21.9 million in PPP and EIDL proceeds from the SBA and at least 11 financial institutions, and received a total of at least $18 million in PPP and EIDL loan proceeds from the SBA and financial institutions,” the indictment states.
The defendants allegedly used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags and clothing, cryptocurrency, and securities, according to the indictment.
All of the defendants named in the superseding indictment are charged with conspiracy to commit wire fraud and bank fraud, as well as conspiracy to commit money laundering. Each defendant is named in various other counts in the indictments which allege wire fraud, bank fraud, money laundering and aggravated identity theft.
The superseding indictment alleges that Richard Ayvazyan and Tamara Dadyan committed crimes after they were released on bond in this case. The superseding indictment further alleges that Richard Ayvazyan continued to use his alias “Iuliia Zhadko” to launder the proceeds of the scheme, including by using the money to buy cryptocurrency and securities. As alleged, Tamara Dadyan repeatedly lied to a bank as part of a scheme to unlawfully obtain disaster-relief funds that had been frozen in an account that she had fraudulently opened using a stolen identity.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation in this case is being conducted by the FBI, IRS Criminal Investigation, the Small Business Administration’s Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General.
This case is being prosecuted by Assistant United States Attorneys Brian Faerstein of the Environmental and Community Safety Crimes Section and Scott Paetty of the Major Frauds Section, and Trial Attorney Christopher Fenton of the Justice Department’s Fraud Section.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program. In April 2020, Congress authorized more than $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
11 March 2021
Zurich’s Oldest Private Bank Admits to Helping U.S. Taxpayers Hide Offshore Accounts from IRSRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General for the Department of Justice’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced the filing of a criminal Information against RAHN+BODMER CO. (“R+B”), a financial institution located in Zurich, Switzerland. The Information charges R+B with one count of conspiring to help U.S. accountholders evade their U.S. tax obligations, file false federal tax returns, and otherwise defraud the Internal Revenue Service (“IRS”) by hiding hundreds of millions of dollars in offshore bank accounts at R+B.
Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced a deferred prosecution agreement with R+B (the “Agreement”), under which R+B admits to its unlawful conduct in assisting U.S. accountholders in violating their legal duties. R+B’s admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires R+B to provide ongoing assistance to the Department of Justice and to pay a total of $22 million in restitution, forfeiture, and penalties. If R+B abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charge.
Manhattan U.S. Attorney Audrey Strauss said: “As Rahn+Bodmer now admits, it aided U.S. taxpayers in evading their tax responsibilities to the tune of more than $16 million. This venerated banking institution knowingly offered banking services that assisted its U.S. customers in evading their tax obligations, and affirmatively schemed to conceal from the IRS the assets and income of U.S. accountholders. Now Rahn+Bodmer will pay $22 million and commit to helping the Justice Department uncover tax evasion by U.S. customers.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Under today’s resolution, Rahn+Bodmer is paying $22 million for helping U.S. accountholders evade their taxes, and has agreed to fully cooperate with investigations into those taxpayers. With the April 15 tax filing date fast approaching, there is a clear message for those intending not to pay their fair share – nothing remains hidden forever.”
IRS-CI Chief James C. Lee said: “Through a years-long scheme, the R+B bank hid the assets of U.S. accountholders to shield them from their tax obligations. Today’s admission and agreement provide a clear path to recovery of funds owed to the U.S. government, and sends a strong signal that offshore accounts are not beyond the reach of special agents with IRS CI.”
According to the Agreement, the accompanying Statement of Facts, and other documents filed today in Manhattan federal court:
From at least in or about 2004 and continuing until at least in or about 2012, R+B conspired with certain of its U.S. accountholders and others to defraud the United States with respect to taxes, file false federal tax returns, and commit tax evasion. R+B’s bankers assisted U.S. accountholders in concealing their ownership and control of assets and funds held in undeclared R+B accounts, which enabled those U.S. accountholders to evade their U.S. tax obligations. R+B admitted to holding undeclared accounts on behalf of approximately 340 U.S. taxpayers, who collectively evaded approximately $16.4 million in U.S. taxes between in or about 2004 and in or about 2012. The assets under management that R+B held for undeclared U.S. accountholders increased from approximately $391 million in 2004 to approximately $550 million in 2007, its peak year for undeclared assets under management.
In furtherance of the scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, R+B undertook the following actions, among others:
- R+B opened “numbered” or “pseudonym” accounts for U.S. accountholders in order to reduce the risk that U.S. tax authorities would learn their identities.
- R+B opened and maintained accounts for U.S. accountholders in the names of non-U.S. corporations, foundations, trusts, or other legal entities, thereby helping U.S. taxpayers conceal their beneficial ownership of the accounts.
- R+B agreed to hold bank statements and other account-related mail in Switzerland, rather than send them to the U.S. accountholders in the United States, which helped ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
- After Liechtenstein and the United States signed a Tax Information Exchange Treaty in December 2008, R+B transferred the undeclared assets of certain U.S. taxpayers from accounts held in the names of sham foundations organized under the laws of Liechtenstein to new accounts held in the names of new sham foundations organized under the laws of Panama, in an effort to further conceal the accounts from U.S. tax authorities.
- R+B allowed U.S. accountholders and third-party asset managers to make withdrawals by check from undeclared accounts in amounts of less than $10,000, in an apparent attempt to conceal transactions from U.S. authorities.
- On occasion, R+B opened accounts for U.S. taxpayers who were exiting UBS AG and other Swiss banks, and allowed these U.S. taxpayers to continue to conceal their undeclared assets at R+B. R+B additionally opened “escrow” accounts on behalf of a Swiss attorney to facilitate the transfer of undeclared assets of U.S. accountholders that had been converted to gold and other precious metals held in a vault at UBS.
- R+B helped U.S. accountholders to repatriate funds to the United States in a manner designed to ensure that U.S. tax authorities did not discover the undeclared accounts, including by transferring the funds of one U.S. accountholder in increments of approximately $100,000 to another Swiss bank before the U.S. accountholder routed the funds to a diamond dealer in Manhattan, where the U.S. accountholder ultimately received them.
- R+B, through its bankers, made regular visits to the United States to solicit, open, and service undeclared accounts of U.S taxpayers.
Under today’s resolution, R+B is required to cooperate fully with the Department of Justice and affirmatively disclose new information it may later uncover regarding U.S.-related accounts. R+B is also required to disclose information consistent with the Department’s Swiss Bank Program relating to accounts closed between January 1, 2009, and December 31, 2019.
As part of the resolution, R+B will pay a total of $22 million, which has three parts. First, R+B has agreed to pay $4.9 million in restitution to the IRS, which represents the estimated unpaid taxes resulting from R+B’s participation in the conspiracy. Second, R+B has agreed to forfeit $9.7 million to the United States, which represents the approximate gross fees that R+B earned on its undeclared U.S.-related accounts between 2004 and 2012. Finally, R+B has agreed to pay a penalty of $7.4 million. The penalty takes into consideration that R+B conducted a thorough internal investigation and provided a substantial volume of documents to the Department, as well as implemented remedial measures to protect against the use of its services for tax evasion in the future.
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Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI. Ms. Strauss also thanked the Department of Justice’s Tax Division for their partnership on this case.
This case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorney Olga I. Zverovich and Trial Attorney Ellen M. Quattrucci are in charge of the case.
- R+B opened “numbered” or “pseudonym” accounts for U.S. accountholders in order to reduce the risk that U.S. tax authorities would learn their identities.
York Man Sentenced to 15 Years’ Imprisonment for Drug and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 10, 2021, Justin Rashaad Brown, age 31, of York, Pennsylvania, was sentenced to 15 years’ imprisonment to be followed by six years of supervised release, by U.S. District Court Judge Sylvia H. Rambo, for distributing crack cocaine and possessing a firearm as a previously convicted felon.
According to Acting United States Attorney Bruce D. Brandler, Brown sold crack cocaine in York on multiple occasions in 2016. Law enforcement executed search warrants at Brown’s residence in July 2016 and November 2016, and found crack cocaine during each search and a stolen revolver during the second search.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the York County Drug Task Force, and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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West Springfield Man Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A West Springfield man was sentenced today in federal court in Springfield on child pornography charges.
Luke Gagnon, 34, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and 10 years of supervised release. In September 2020, Gagnon pleaded guilty to one count of distributing child pornography and one count of possession of child pornography. Gagnon was arrested and charged in January 2020.
After an investigation into child pornography distribution, agents executed a search warrant at Gagnon’s residence in West Springfield and seized a hard-drive from a desktop computer belonging to Gagnon which contained several videos and images of child pornography. In addition, from September 2019 to January 2020, Gagnon knowingly distributed child pornography.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; West Springfield Police Chief Paul Connor; and South Hadley Police Chief Jennifer Gundersen made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Mendell’s Springfield Branch Office prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Violent Sioux City Drug Conspiracy Dismantled and Members Sent to Federal PrisonRead the Press Release
Raymond Nieman, age 39, Lesandro Jose Alvizo-Allison, age 21, Kelly Davis, age 34, and Erwin Scott, age 25, all from Sioux City, Iowa, received prison terms, ranging from over nine years to 16 years for their roles in a conspiracy to distribute a controlled substance, a conspiracy to commit robbery and extortion, a robbery, a conspiracy to commit arson, and possession, use, and discharge of a firearm in furtherance of a drug trafficking crime.
Raymond Nieman, Kelly Davis, and Erwin Scott were each convicted of one count of conspiracy to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of conspiracy to commit arson. Lesandro Jose Alvizo-Allison was convicted of one count each of conspiracy to distribute a controlled substance, conspiracy to commit robbery and extortion, robbery, possession of a firearm in furtherance of a drug trafficking crime, conspiracy to commit arson, and possession of a firearm by a felon. Alvizo-Allison was previously convicted of Forgery, in Iowa, in 2019.
Evidence presented by the United States revealed from on or about March 18, 2018, until August 8, 2019, Raymond Nieman distributed methamphetamine from his Sioux City home and other places. On or about August 7, 2019, Nieman attempted to purchase $600.00 worth of methamphetamine from a source of supply in Sergeant Bluff, Iowa. During that transaction, Nieman was provided what he concluded was bad dope. Nieman returned to his home and recruited Kelly Davis, Erwin Scott, and Lesandro Alvizo-Allison to assist him in his plan to seek redress against the suspected Sergeant Bluff source of supply. The three agreed to participate in Nieman’s plan which included robbing the source of supply of his drugs and money, and burning down the home of the source of supply if necessary to get what they wanted. The four men, along with Jennifer Crook, traveled, in Nieman’s van, to Sam’s Mini Mart, where Nieman and Davis filled a gas can with gasoline. The group then drove to the supposed home of the source of supply. As they drove, the group discussed burning down the alleged source of supply’s home if he did not give them money or drugs. All the men knew there were loaded guns in the van. Once at the scene, Nieman and Davis each armed themselves with loaded .22 rifles. Scott donned a wolf mask and picked up a baseball bat. All four men then walked to the supposed home of the source. Crook stayed in the van.
Nieman fired shots, including at least one at the house, shouted demands for money, and made threats of violence, including a threat to burn down the house if they did not get money or drugs. The alleged source of supply and others, who had been in front of the house, retreated inside, and after a brief standoff, Nieman, Davis, Scott, Alvizo-Allison and Crook fled the scene in Nieman’s van.
Davis was sentenced on August 21, 2020, Scott was sentenced on October 9, 2020, Alvizo-Allison was sentenced on December 3, 2020, and Nieman was sentenced on March 11, 2021, in United States District Court in Sioux City by United States District Court Chief Judge Leonard T. Strand. Davis was sentenced to 180 month’s imprisonment, Scott was sentenced to 132 months’ imprisonment, Alvizo-Allison was sentenced to 117 months’ imprisonment, and Nieman was sentenced to 192 months’ imprisonment. Davis, Scott, Alvizo-Allison, and Nieman each must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Jennifer Crook, was sentenced to 10 years in State prison after pleading guilty in Woodbury County District Court to charges of intimidation with a dangerous weapon, going armed with intent, assault while participating in a felony, conspiracy, and aggravated assault.
Alvizo-Allison, Scott, Davis and Nieman are each being held in the United States Marshal’s custody until they 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. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States (1) Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives; (2) the Sergeant Bluff Police Department; (3) the Sioux City Police Department, (4) the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; (5) the Woodbury County Sherriff’s Office; and (6) the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4082.
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Unregistered St. Louis tax preparer pleads guilty to tax fraudRead the Press Release
ST. LOUIS – Lakisha Smith, 39, of St. Louis, Missouri, pleaded guilty to two counts of tax fraud. Smith appeared, today, before United States District Court Judge John A. Ross.
According to court documents, from 2013 to 2016, Lakisha Smith prepared approximately 28 fraudulent tax returns for her clients using the TaxAct commercial website. Smith prepared client returns reporting false income and withholdings in order to generate larger tax refunds. Smith typically received cash payments of up to $2,500.00 from the false refunds paid to her customers. The defendant was not registered with the Internal Revenue Service as a return preparer and she did not sign as the preparer on the returns that she prepared and filed for other individuals.
“Return preparer fraud is a priority for IRS Criminal Investigation and we are committed to investigating and prosecuting cases like this,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Paid return preparers must sign the returns they prepare and include their Preparer Tax Identification Number (PTIN) issued by the IRS. Taxpayers are encouraged to visit IRS.gov for tips about choosing a tax professional.”
Judge Ross has set sentencing for June 17, 2021 at 10:00 a.m.
The Internal Revenue Service investigated the case. Assistant United States Attorney Jennifer Roy is handling the case.
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Two Former Louisiana Supervisory Correctional Officers Sentenced for Civil Rights Offense Arising Out of the Death of an InmateRead the Press Release
Two Louisiana men, former jail supervisors, were sentenced today to five years in prison and over four years in prison respectively for being deliberately indifferent to an inmate’s serious medical needs.
As a result of this civil rights offense, 19-year-old Nimali Henry died in the custody of the St. Bernard Parish Prison (SBPP) on April 1, 2014. Henry died after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated.
Former SBPP Captain Andre Dominick, 61, of New Orleans, was sentenced to five years in prison. Dominick previously pleaded guilty to violating Henry’s civil rights under color of law. In pleading guilty, Dominick admitted that he knew that Henry had serious medical needs that required medication. Dominick acknowledged that he had reviewed Henry’s written request for help, in which she wrote that, if she did not continue the medical treatment her doctor had prescribed, there was a 90% chance she would die. Dominick also spoke with Henry about her medical condition; spoke with Henry’s social worker, who confirmed her medical needs; and observed Henry’s deteriorating physical condition while she was in jail. However, despite knowing Henry’s plight, Dominick – who was also acting as the medical officer during Henry’s incarceration – failed to take any reasonable steps to get her the medical attention she needed, as he was required to do under the law.
Former SBPP Corporal Timothy Williams, 41, of New Orleans, was sentenced to 57 months in prison. Williams also previously pleaded guilty to violating Henry’s civil rights under color of law. In his guilty plea, Williams admitted that he knew from his conversations with Henry and her fellow inmates that Henry had serious medical conditions that required medication. Williams also personally observed Henry as she grew sicker throughout her incarceration. However, Williams failed to take any reasonable steps to get Henry necessary medical care for her serious medical needs, as the law required him to do. In his factual basis, Williams further admitted that, rather than obtain medical care for Henry, he placed her in a holding cell, a placement typically reserved for misbehaving inmates, in order to discourage her from making future medical complaints. He also told Henry’s fellow inmates to stop requesting help on Henry’s behalf.
“Nimali Henry’s death was not the result of neglect or a lapse of judgment. Her death was the slow, painful, and completely preventable result of the deliberate choices made by these defendants, each of whom knew that he had the constitutional duty to provide necessary medical care for a young woman who was completely dependent on them for help while she was in their custody,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “Prosecuting corrections officers who intentionally violate their constitutional responsibilities is a critical part of the Department’s mission.”
“The protection of all of our citizens’ civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the FBI, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens' civil rights.”
“Captain Andre Dominick and Corporal Timothy Williams were responsible for the welfare of inmates at the St. Bernard Parish Prison.” said Special Agent in Charge Bryan A. Vorndran for the FBI New Orleans Field Office. “Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused or neglected. Their actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address her known medical conditions, ultimately resulting in her death. The FBI New Orleans Field Office is appreciative of its partnerships with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana and we remain committed to protecting the rights of all Americans, to include those incarcerated.”
On March 10, two former SBBP Deputies, Lisa Vaccarella and Debra Becnel, were sentenced for their roles in covering up the circumstances of Henry’s death.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight for the Eastern District of Louisiana.
Two Former Louisiana Supervisory Correctional Officers Sentenced for Civil Rights Offense Arising Out of the Death of an InmateRead the Press Release
WASHINGTON – Two Louisiana men, former jail supervisors, were sentenced today to five years in prison and over four years in prison respectively for being deliberately indifferent to an inmate’s serious medical needs.
As a result of this civil rights offense, 19-year-old Nimali Henry died in the custody of the St. Bernard Parish Prison (SBPP) on April 1, 2014. Henry died after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated.
Former SBPP Captain Andre Dominick, 61, of New Orleans, was sentenced to five years in prison. Dominick previously pleaded guilty to violating Henry’s civil rights under color of law. In pleading guilty, Dominick admitted that he knew that Henry had serious medical needs that required medication. Dominick acknowledged that he had reviewed Henry’s written request for help, in which she wrote that, if she did not continue the medical treatment her doctor had prescribed, there was a 90% chance she would die. Dominick also spoke with Henry about her medical condition; spoke with Henry’s social worker, who confirmed her medical needs; and observed Henry’s deteriorating physical condition while she was in jail. However, despite knowing Henry’s plight, Dominick – who was also acting as the medical officer during Henry’s incarceration – failed to take any reasonable steps to get her the medical attention she needed, as he was required to do under the law.
Former SBPP Corporal Timothy Williams, 41, of New Orleans, was sentenced to 57 months in prison. Williams also previously pleaded guilty to violating Henry’s civil rights under color of law. In his guilty plea, Williams admitted that he knew from his conversations with Henry and her fellow inmates that Henry had serious medical conditions that required medication. Williams also personally observed Henry as she grew sicker throughout her incarceration. However, Williams failed to take any reasonable steps to get Henry necessary medical care for her serious medical needs, as the law required him to do. In his factual basis, Williams further admitted that, rather than obtain medical care for Henry, he placed her in a holding cell, a placement typically reserved for misbehaving inmates, in order to discourage her from making future medical complaints. He also told Henry’s fellow inmates to stop requesting help on Henry’s behalf.
“Nimali Henry’s death was not the result of neglect or a lapse of judgment. Her death was the slow, painful, and completely preventable result of the deliberate choices made by these defendants, each of whom knew that he had the constitutional duty to provide necessary medical care for a young woman who was completely dependent on them for help while she was in their custody,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “Prosecuting corrections officers who intentionally violate their constitutional responsibilities is a critical part of the Department’s mission.”
“The protection of all of our citizens’ civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the FBI, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens' civil rights.”
“Captain Andre Dominick and Corporal Timothy Williams were responsible for the welfare of inmates at the St. Bernard Parish Prison.” said Special Agent in Charge Bryan A. Vorndran for the FBI New Orleans Field Office. “Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused or neglected. Their actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address her known medical conditions, ultimately resulting in her death. The FBI New Orleans Field Office is appreciative of its partnerships with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana and we remain committed to protecting the rights of all Americans, to include those incarcerated.”
On March 10, two former SBBP Deputies, Lisa Vaccarella and Debra Becnel, were sentenced for their roles in covering up the circumstances of Henry’s death.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight for the Eastern District of Louisiana.
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Two Former Louisiana Correctional Officers Sentenced for Cover up Following Death of an InmateRead the Press Release
Two Louisiana women, former jail deputies, were sentenced today to over a year in prison and six months in prison respectively for their roles in covering up a civil rights violation arising out of an inmate’s death at the St. Bernard Parish Prison (SBPP).
On April 1, 2014, 19-year-old Nimali Henry died in custody after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated there.
Former SBPP Deputy Lisa Vaccarella of New Orleans was sentenced to 21 months in prison with three years of supervised release for failing to take any affirmative steps to alert federal authorities that she knew that other officers had willfully violated Ms. Henry’s civil rights by depriving her of necessary medical treatment. Vaccarella was also sentenced for lying to FBI agents about her own observations of Ms. Henry. Specifically, Vaccarella admitted that she falsely told FBI agents that she saw Henry get up on her command, stand without help, and walk without any difficulty when, in fact, Vaccarella watched Henry fall to the floor and then, without offering Henry any assistance, closed the cell door, leaving Henry lying on the floor.
Former SBPP Deputy Debra Becnel of New Orleans was sentenced to six months in prison with three months to be served in custody followed by three months of home detention and three years of supervised release for lying to FBI agents during the federal investigation. In pleading guilty, Becnel admitted that she falsely told FBI agents that neither Henry nor the inmates talked to her about Henry’s medical needs, when, in fact, Henry and other inmates had told Becnel and other correctional officers that Henry was ill, needed medical treatment and might die if she did not get her medical treatment.
“When officers obstruct justice and lie during investigations, it threatens our ability to prosecute civil rights cases and erodes the public’s confidence in law enforcement itself," said Pamela S. Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. "To ensure that justice prevails, the Department will continue to prosecute officers who lie to investigators and cover up crimes."
“The protection of all of our citizen’s civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the Federal Bureau of Investigation, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizen’s civil rights.”
"Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment," said Special Agent in Charge Bryan Vorndran for the FBI New Orleans Field Office. "Nimali Henry suffered incredible unusual punishment at the hands of Deputies Lisa Vaccarella and Debra Becnel. The two deputies willfully deprived Henry of the medical attention she desperately needed and lied to federal authorities to conceal their failure to act in a compassionate and humane manner, let alone honor the oath they swore to uphold. The law suffers the most when those in a position of trust abuse their power. The FBI New Orleans Field Office appreciates its partnerships with the trial attorneys from the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana.”
Former SBPP Captain Andre Dominick and former SBPP Corporal Timothy Williams are also due to be sentenced today for the role each played in Henry’s death. Dominick and Williams each have pleaded guilty to violating Henry’s civil rights under color of law by being deliberately indifferent to her serious medical needs.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Two Former Louisiana Correctional Officers Sentenced for Cover up Following Death of an InmateRead the Press Release
WASHINGTON – Two Louisiana women, former jail deputies, were sentenced today to over a year in prison and six months in prison respectively for their roles in covering up a civil rights violation arising out of an inmate’s death at the St. Bernard Parish Prison (SBPP).
On April 1, 2014, 19-year-old Nimali Henry died in custody after she failed to receive medical treatment for her rare blood disorder and other medical conditions during the ten days she was incarcerated there.
Former SBPP Deputy Lisa Vaccarella of New Orleans was sentenced to 21 months in prison with three years of supervised release for failing to take any affirmative steps to alert federal authorities that she knew that other officers had willfully violated Ms. Henry’s civil rights by depriving her of necessary medical treatment. Vaccarella was also sentenced for lying to FBI agents about her own observations of Ms. Henry. Specifically, Vaccarella admitted that she falsely told FBI agents that she saw Henry get up on her command, stand without help, and walk without any difficulty when, in fact, Vaccarella watched Henry fall to the floor and then, without offering Henry any assistance, closed the cell door, leaving Henry lying on the floor.
Former SBPP Deputy Debra Becnel of New Orleans was sentenced to six months in prison with three months to be served in custody followed by three months of home detention and three years of supervised release for lying to FBI agents during the federal investigation. In pleading guilty, Becnel admitted that she falsely told FBI agents that neither Henry nor the inmates talked to her about Henry’s medical needs, when, in fact, Henry and other inmates had told Becnel and other correctional officers that Henry was ill, needed medical treatment and might die if she did not get her medical treatment.
“When officers obstruct justice and lie during investigations, it threatens our ability to prosecute civil rights cases and erodes the public’s confidence in law enforcement itself," said Pamela S. Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. "To ensure that justice prevails, the Department will continue to prosecute officers who lie to investigators and cover up crimes."
“The protection of all of our citizen’s civil rights is an essential part of our Constitution,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office, along with the Department of Justice, the Federal Bureau of Investigation, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizen’s civil rights.”
"Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment," said Special Agent in Charge Bryan Vorndran for the FBI New Orleans Field Office. "Nimali Henry suffered incredible unusual punishment at the hands of Deputies Lisa Vaccarella and Debra Becnel. The two deputies willfully deprived Henry of the medical attention she desperately needed and lied to federal authorities to conceal their failure to act in a compassionate and humane manner, let alone honor the oath they swore to uphold. The law suffers the most when those in a position of trust abuse their power. The FBI New Orleans Field Office appreciates its partnerships with the trial attorneys from the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office of the Eastern District of Louisiana.”
Former SBPP Captain Andre Dominick and former SBPP Corporal Timothy Williams are also due to be sentenced today for the role each played in Henry’s death. Dominick and Williams each have pleaded guilty to violating Henry’s civil rights under color of law by being deliberately indifferent to her serious medical needs.
This case was investigated by the FBI and was prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
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Two Charged with Conspiracy to Defraud Bank, Bank Fraud and Aggravated Identity TheftRead the Press Release
CAMDEN, N.J. – A Camden County man and a Bronx, New York, man were charged for their participation in a scheme to steal bank customer identities and then use that information to steal more than $600,000, Acting U.S. Attorney Rachael A. Honig announced today.
Jamere Hill-Birdsong, 32, of Gloucester City, New Jersey, and Lamar Melhado, 31, of the Bronx, New York, are each charged in a 10-count indictment with one count of conspiracy to commit bank fraud, multiple counts of bank fraud and aggravated identity theft. Both Hill-Birdsong and Melhado were arrested and will appear before U.S. Magistrate Judge Ann Marie Donio in Camden federal court via videoconference this afternoon.
According to the indictment:
From August 2016 through August 2017, Hill-Birdsong and Melhado conspired with each other and others to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center. The conspirator bank employees would then take photographs or screenshots of the bank customer’s account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of moneys from the customer’s accounts.
Hill-Birdsong is charged with bank fraud conspiracy, five counts of bank fraud and one count of aggravated identity theft. Melhado is charged with bank fraud conspiracy, six counts of bank fraud and two counts of aggravated identity theft. Each count of conspiracy to commit bank fraud and bank fraud are punishable by a maximum of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Each count of aggravated identity theft is punishable by an additional consecutive term of imprisonment of up to two years.
Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Trenton Man Admits Conspiring to Distribute Fentanyl that Caused the Death of a Monmouth County WomanRead the Press Release
TRENTON, N.J. – A Trenton man admitted conspiring with others to distribute fentanyl that caused the death of a Monmouth county woman, Acting U.S. Attorney Rachael A. Honig announced today.
Quasaan Bethea, 33, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson on March 10, 2021, to Count Two of an indictment charging possession with intent to distribute fentanyl.
According to the documents filed in this case and statements made in court:
On May 15, 2018, Bethea conspired with others to distribute fentanyl to a 39-year-old Monmouth County woman, referred to in the indictment as Victim-1. Victim-1 had sought out Bethea and others to purchase heroin, not fentanyl, a significantly more potent narcotic than heroin. Bethea admitted that the fentanyl he sold to Victim-1 was stamped “CAMEL” and packaged to look like heroin. Shortly after Victim-1’s second purchase of fentanyl from Bethea and others, Englishtown police responded to a report of an overdose death. Upon their arrival, they discovered Victim-1, and in Victim-1’s possession were several wax folds of suspected heroin stamped “CAMEL” and empty wax folds stamped “CAMEL” as well. Laboratory analysis of these wax folds bearing the “CAMEL” stamp determined the substance to be fentanyl. An autopsy of Victim-1 found her cause of death to be acute fentanyl toxicity.
The count of conspiracy to distribute and possess with intent to distribute fentanyl carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 26, 2021.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Englishtown Police Department, under the direction of Peter S. Cooke, Jr., and the Trenton Police Department’s Narcotics Task Force, under the direction of Police Director Sheilah Coley, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill, of the Office’s Opioids Abuse & Prevention Task Force.
Three Members of Monument Street Drug Trafficking Organizations in East Baltimore Sentenced to Federal Prison and a Fourth Defendant Will Be Sentenced on FridayRead the Press Release
Baltimore, Maryland – In the last week, U.S. District Judge Ellen L. Hollander has sentenced three members of the Monument Street drug trafficking organizations to at least five years in federal prison related to their roles in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. Specifically, on March 4, 2021, Judge Hollander sentenced Tony Solomon, age 55, of Baltimore, to 10 years in federal prison, followed by five years of supervised release on charges of conspiracy and possession with intent to distribute controlled substances. On March 9, 2021, Judge Hollander sentenced Perez Scruggs, age 25, and Noah Walston age 30, both of Baltimore, to 65 months and five years in federal prison, respectively, each followed by three years of supervised release. Scruggs had previously pleaded guilty to the drug conspiracy and to possession with intent to distribute cocaine. Walston pleaded guilty to the drug conspiracy and to being a felon in possession of a firearm. A fourth co-defendant, Windeer Washington, age 45, of Baltimore is scheduled to be sentenced on March 12, 2021. Washington and the government have agreed that, if the Court accepts his plea agreement, Washington will be sentenced to three years in federal prison.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said Acting U.S. Attorney Jonathan F. Lenzner. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, investigators identified Solomon as a source of supply in the conspiracy; identified Scruggs and Washington as wholesale drug customers; and identified Walston as a drug distributor. Walston also operated another street level shop in the 800 block of North Milton, in conjunction with the OTM shop. On numerous occasions law enforcement intercepted calls in which the defendants discussed the distribution of drugs, including powder cocaine and crack cocaine, heroin, and fentanyl, among others.
Solomon admitted that he maintained at least two stash locations used for storing, cutting, and packaging controlled dangerous substances with other members of the conspiracy, located in the 1600 block of North Spring Street and the 3200 block of Brighton Street, both in Baltimore. Solomon conspired with coconspirators to use the North Spring Street location to meet with drug customers for the purposes of collecting money and providing controlled substances to them.
In January 2019, law enforcement executed search warrants at both stash locations, and at residences associated with Solomon, recovering a total of approximately 200 grams of crack cocaine, five grams of powder cocaine, and 147 grams of a heroin/fentanyl mixture; drug paraphernalia, including a small hydraulic press, small and large kilo presses, digital scales, gel caps, and packaging materials; more than $41,000 in cash, believed to be drug proceeds; and a loaded .45-caliber semi-automatic pistol with eight .45-caliber cartridges, which Solomon admitted he possessed in connection to his drug trafficking activities.
As detailed in their plea agreements, on January 2, 2019, investigators executed a search and seizure warrant at Washington’s residence in the 2900 block of McElderry Street in Baltimore, where they recovered approximately 118 grams of cocaine and fentanyl mixture and 34 grams of crack cocaine, a small hydraulic press and mail in Washington’s name. On May 23, 2019, investigators executed a search warrant at Scruggs’ residence in the 2400 block of Woodbrook Avenue in Baltimore. Investigators seized approximately 255 grams of a mixture containing cocaine; an electric scale with drug residue; and three firearms and ammunition. Specifically, law enforcement recovered a .22 caliber semi-automatic long rifle; a 12 gauge shotgun pump action, with no serial number; a 12 gauge semi-automatic shotgun with an extended magazine and five 12 gauge cartridges mounted on the side of the weapon; and six 9mm cartridges, as well as one additional 12 gauge shotgun shell found in a china cabinet. Washington and Scruggs admitted that they possessed the drugs with the intent to distribute them for sale.
Additionally, on June 9, 2020, Baltimore Police officers (BPD) attempted to initiate a traffic stop of Walston in the area of the 200 block of North Caroline Street in Baltimore. However, the vehicle failed to stop, and attempted to speed away to evade law enforcement. Due to high traffic, the vehicle could not escape the officers, and the driver, later identified as Walston, fled the vehicle, throwing a black gun away with his right hand as he ran. The gun, a 9mm Luger semi-automatic pistol, loaded with six rounds of ammunition, was later recovered in the same area that Walston was observed throwing the gun.
Solomon, Scruggs, and Walston are all prohibited from possessing firearms or ammunition as a result of previous felony convictions.
Throughout the course of their involvement, it was reasonably foreseeable to Solomon and Scruggs, and within the scope of the conspiracy that they or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Washington, and within the scope of the conspiracy that he would distribute between 500 grams and two kilograms of cocaine, as well as quantities of cocaine base and fentanyl, during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Walston, and within the scope of the conspiracy that he or other members of the conspiracy would distribute more than 280 grams of cocaine base (“crack”), as well as quantities of cocaine, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Of the 25 defendants indicted in this case, 14—including Solomon, Scruggs, Walston, and Washington—have pleaded guilty. The remaining defendants have trial dates in May or November 2021.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Suspected Gang Member Arrested, Charged with Being A Felon in Possession of A Firearm After Leading Police on A ChaseRead 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 Sydney Johnson, 28, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, in August 2019, the FBI Safe Streets Task Force initiated an investigation into members of the Fruit Belt Posse (FBP). The FBI learned that members and associates of the FBP are actively engaged in the distribution of narcotics, firearms offenses, and gang activity. On February 26, 2021, task force members and the Niagara Frontier Transportation Authority (NFTA) Police Department were conducting surveillance on the defendant, a suspected member of the FBP. Investigators observed Johnson, whose driver’s license is currently suspended, driving a rental vehicle in the City of Buffalo. NFTA marked patrol units initiated a traffic stop on the defendant’s vehicle, but Johnson attempted to elude police officers. As officers pursued the vehicle, one officer observed a firearm being thrown from the passenger side of Johnson’s vehicle. In addition, dash cam footage from the patrol vehicle captured the firearm being thrown from the vehicle. Officers retrieved the loaded firearm from the side of the road. Johnson continued to flee and was later observed exiting the vehicle on foot and running. NFTA officers took the defendant into custody after a foot chase.
In October 2020, Johnson was convicted of Attempted Criminal Possession of a Weapon in the Second Degree in New York State Court and as a result is legally prohibited from possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained pending trial.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Niagara Frontier Transportation Authority Police Department, under the direction of Chief George Gast; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Superior Residents Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Steven Ranta, 42, Superior, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 96 months in federal prison for possessing with the intent to distribute 50 grams or more of methamphetamine as part of a conspiracy. This prison term will be followed by 5 years of supervised release. Ranta pleaded guilty to the conspiracy charge on February 4, 2021. Ranta’s co-defendant, Christina Nord, 35, Superior, pleaded guilty and was sentenced on December 29, 2020 for her role in the same conspiracy to 3 years in federal prison followed by 3 years of supervised release.
The charges against Ranta and Nord are the result of an investigation conducted by the Superior Police Department in November and December 2019. As a part of this investigation, officers arranged a series of controlled buys for methamphetamine. A confidential informant successfully purchased methamphetamine from either Ranta, Nord, or both together, on a total of 9 occasions. In a search of Ranta’s apartment on December 31, 2019, investigators located an additional 136 grams of methamphetamine and indicia of drug distribution.
In sentencing both Nord and Ranta, Judge Peterson noted the seriousness of their offenses. With respect to Ranta’s sentence, Judge Peterson explained that a lengthy sentence was warranted given the sheer volume of Ranta’s criminal history, which included a prior federal conviction for methamphetamine distribution; crimes of violence; and sexual deviance. Judge Peterson also expressed that Ranta’s criminal conduct appeared to be related to his lack of self-control, and that this created a real danger to the community. In contrast, in sentencing Nord, Judge Peterson imposed a shorter sentence given her minimal criminal history.
The charges against Ranta and Nord were the result of an investigation conducted by the Superior Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Stratford Man Admits Producing and Distributing Child PornographyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that EDWARD GALPIN, 39, of Stratford, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to offenses related to the sexual exploitation of multiple children.
According to court documents and statements made in court, Galpin was an administrator of a private Kik messaging app chat group that provided a forum for members to discuss their sexual interest in young children and exchange images and videos of child sexual abuse. As a group administrator, Galpin distributed child pornography, requested it from other group members, and removed from the group certain members who did not share child pornography. Galpin possessed and shared a significant amount of child pornography, including images and videos of prepubescent minors and content portraying sadistic and masochistic conduct and the sexual abuse of toddlers.
The investigation also revealed that Galpin used Instagram to identify young girls for the purpose of soliciting or producing child pornography. In one instance, Galpin arranged to meet with a 17-year-old girl, picked her up at her house, and engaged in sexually explicit conduct with her. Galpin recorded the sexual encounter and then shared images and videos on Kik. In another instance, Galpin identified a 15-year-old girl via Instagram and enticed her to send him sexually explicit images of herself. The victim did so using Instagram’s “self-destruct” feature, which automatically deletes an image after a short time. However, Galpin recorded video of his conversation with the victim so he could retain the images he received. In a third instance, Galpin contacted an eighth-grade girl via Instagram direct message and subsequently received from her a video and other images of her engaged in sexually explicit conduct.
Galpin also used spy cameras to record videos of women and girls while they were undressing. Galpin then distributed the videos, including video of a minor girl, via Kik.
In June 2020, Galpin contacted a Kik account operated by an undercover law enforcement officer posing as a 14-year-old girl. Galpin asked the “girl” when her “mom” would be away from home and arranged to meet the “girl” at a coffee shop in Connecticut. On June 25, 2020, after Galpin arrived at the scheduled time and place, law enforcement approached him and seized his iPhone. He was arrested later that day and has been detained since his arrest.
Galpin was originally charged by the U.S. Attorney’s Office for the District of Columbia. The case was then transferred to the District of Connecticut.
Galpin pleaded guilty to two counts of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years on each count, and two counts of distribution of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years on each count.
Judge Meyer scheduled sentencing for June 2, 2021.
This investigation has been conducted by the Federal Bureau of Investigation in New Haven and Washington, D.C., and the Metropolitan Police (D.C.) Department’s Child Exploitation and Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Ruff and Sarala V. Nagala in the District of Connecticut, and Assistant U.S. Attorney April Russo in the District of Columbia.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Statement from Acting United States Attorney for the Western District of Oklahoma on Oklahoma Court of Criminal Appeal’s Ruling in Bosse v. OklahomaRead the Press Release
"Today, the Oklahoma Court of Criminal Appeals reversed the judgment and sentence of Shaun Michael Bosse and remanded the case to the state district court with instructions to dismiss. The court ruled that the State of Oklahoma did not have jurisdiction to prosecute the defendant because the historical boundaries of the Chickasaw Nation Reservation were never disestablished and the victims were Indian. This decision generally expands federal jurisdiction to investigate and prosecute crimes involving Indian offenders or Indian victims arising within the Chickasaw Nation Reservation. Since last year’s Supreme Court decision in McGirt, we have been working closely with our tribal, federal, state, and local law enforcement partners to prepare for today’s decision and to protect those living within the boundaries of the Chickasaw Nation. Our office will continue the ethical, vigorous, fair, and impartial enforcement of the laws of the United States for the benefit of our communities." - Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma
St. Thomas Man Sentenced to Twelve Years in Federal Prison in Connection with Bank Robbery and ShootingRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Melik Petersen was sentenced to 12 years in prison for assault with the intent to commit robbery.
According to court documents filed in the case, on the morning of September 11, 2019, Ranger American Armored Services guards were attempting to pick up $951,000 from a Scotia Bank branch in the Altona area St. Thomas. Petersen and another unidentified individual, both armed, attempted to rob the guards of the money and a gunfight ensued, during which one of the guards suffered a bullet wound in his leg. The two assailants and the getaway driver then fled the scene after failing to steal the money.
This case was investigated by the Virgin Islands Police Department, and it was prosecuted by Assistant United States Attorneys Adam Sleeper and Nathan Brooks.
St. Thomas Man Pleads Guilty to Conspiracy to Distribute CocaineRead the Press Release
St. Thomas, USVI – King Bob Leonard, 28, of St. Thomas, entered a guilty plea to the charge of Conspiracy to Distribute Cocaine, United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today.
According to court documents, in January and February of 2018 the defendant conspired with others to distribute cocaine. He operated through a number of text messages that were seized as part of the investigation. Further, the investigation revealed that the defendant and others coordinated the delivery of between 400 and 500 grams of cocaine in St. Thomas, USVI.
The offense carries a possible sentence of incarceration of up to twenty years, a maximum fine of up to $1,000,000 dollars, and a term of supervised release of up to six years. Sentencing will be scheduled at a later date.
This case is being investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It is being prosecuted by the United States Attorney’s Office for the District of the Virgin Islands.
Springfield Woman Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
BOSTON – A Springfield woman pleaded guilty in federal court in Springfield yesterday to conspiracy to commit sex trafficking.
Virginia Maldonado, 32, pleaded guilty to one count of conspiracy to commit sex trafficking before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for June 3, 2021. Maldonado was charged in December 2018.
Co-conspirator William Coleman previously pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking and was sentenced to 186 months in prison in September 2020.
Maldonado conspired with Coleman who operated a prostitution business that used violence and the drug addictions of female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman and were subject to his tight control over their daily lives. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain the drugs they needed from Coleman. In most cases, the victims were addicted to heroin.
Maldonado admitted that she agreed to help manage the business for a 30-day period while Coleman was serving a short jail term, and that she took instructions from Coleman while he was in jail. Maldonado also admitted that she took pictures of some of the female victims to be used in prostitution advertisements.
Co-conspirator Shannon Yelinek, 36, pleaded guilty yesterday to conspiracy to commit sex trafficking and is scheduled to be sentenced on June 4, 2021.
The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Hampden County District Attorney Anthony D. Gulluni; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group, which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
South Korean National Pleads Guilty to Scheme to Defraud U.S. Department of DefenseRead the Press Release
A South Korean national pleaded guilty today to participating in a scheme to defraud the U.S. Department of Defense.
According to court documents filed in the U.S. District Court in Columbus, Ohio, Hyun Dong Jo of the Republic of Korea was the designated manager under a Defense Logistics Agency contract to provide hazardous waste removal, testing, disposal, and related services to U.S. military installations in South Korea. In that position, Jo participated in a scheme to falsify laboratory reports submitted under this hazardous waste contract.
From at least as early as February 2015 until at least June 2018, Jo submitted hundreds of falsified or materially altered laboratory reports, misrepresenting to U.S. military officials that laboratory testing and analysis had been performed on samples taken from U.S. military installations located in South Korea, when, in many cases, no such testing was performed. As part of the scheme, Jo emailed the forged laboratory reports and invoices seeking payment for those reports to the Department of Defense, causing the Defense Financial Accounting Service to wire more than $280,000 in payments.
“This charge reflects the Antitrust Division’s commitment to protecting taxpayer dollars spent overseas,” said Acting Assistant Attorney General Richard Powers of the Department of Justice Antitrust Division. “Individuals who cheat the U.S. military in the performance of contracts will be held accountable. We hope this guilty plea will serve as a deterrent for other contractors who contemplate obtaining illicit gains through engaging in fraud while providing services for the U.S. military domestically or abroad.”
“The defendant forged lab results and falsely reported them to the Department of Defense,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Not only is this unsafe for the U.S. Forces installations in Korea where hazardous waste was not actually tested, but it also defrauded the Department of Defense out of $280,000. This office takes Jo’s conduct seriously and will continue to hold accountable anyone who attempts to defraud the government in this way.”
“Taking advantage of the DoD contracting system for one’s own enrichment is a clear violation of the law,” said Director Frank Robey of the U.S. Criminal Investigation Command's Major Procurement Fraud Unit. “Our agents and our law enforcement partners will steadfastly pursue this type of scheme and all fraud that erodes the rule of law and the trust between the DoD and the contracting community.”
“This case should serve as a cautionary tale for those who seek enrichment by way of deceit,” said Special Agent-in-Charge Stanley A. Newell of the Transnational Operations Field Office for the Defense Criminal Investigative Service (DCIS). “Anyone who attempts to defraud the Department of Defense with bogus and doctored invoices will be held to account. The special agents of the DCIS along with our investigative partners from the U.S. Army’s Criminal Investigative Command, are dedicated to protecting the integrity of U.S. military procurements around the globe; and ensuring that American taxpayers get what they pay for.”
Jo pleaded guilty to one count of wire fraud and faces a maximum sentence of 20 years in prison and a maximum fine of $250,000. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if that amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command, and Defense Logistics Agency’s Office of Inspector General are investigating the case.
The Justice Department’s Antitrust Division Washington Criminal II Section is prosecuting the case. Special thanks are extended to Deputy Criminal Chief Brenda Shoemaker of the U.S. Attorney’s Office for the Southern District of Ohio.
Anyone with information in connection with this investigation or other schemes affecting the U.S. military’s procurement process should call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or http://www.justice.gov/atr/contact/newcase.html.
Sex, Money, Murder Gang Member Sentenced to 12 Years for Six Robberies in RaleighRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 144 months in federal prison for robbing three Subways and three gas stations in Raleigh in 2019.
According to court documents, an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of local law enforcement officials in Raleigh, North Carolina, revealed that from June 20, 2019, to June 24, 2019, Khaliq Roberto Miranda, 28 years old and a validated member of the Sex, Money Murder sect of the United Bloods Nation, robbed multiple Raleigh businesses to include three Subways and three gas stations.
On June 20, 2019, Miranda entered the Subway on Avent Ferry Road in Raleigh and approached the counter where two employees were working. Miranda shoved one of the employees in the throat to move the employee toward the cash register. Miranda then grabbed the other employee and pushed her toward the cash register. Miranda then placed what appeared to be a firearm to the back of one of the employees while instructing the other employee to empty the register. Miranda fled the scene once provided with the register money, $300.
On June 21, 2019, Miranda entered the Subway restaurant on Wake Forest Road in Raleigh. He jumped over the counter and demanded money from two restaurant employees. One of the employees denied seeing a firearm; however, noted that Miranda was holding the waistband of his pants in a manner to insinuate he possessed a firearm. Once provided with the money, $662, Miranda forced one of the employees to the back of the business to unlock the back door so he could flee. Also, on June 21, 2019, video surveillance showed Miranda enter the BP Gas Station on Louisburg Road in Raleigh. Miranda grabbed the clerk by the neck while he brandished what appeared to be a firearm and demanded the employee open the safe. After the clerk provided him with the money, $80, Miranda pushed the clerk to the ground and exited the business.
On June 23, 2019, Miranda ran into the Subway restaurant located on Western Boulevard in Raleigh, jumped the counter, and demanded money from two employees. After the clerks gave him the money, $434, Miranda had the employees lead him to the back door, through which he exited.
On June 24, 2019, Miranda once again robbed the BP Gas Station on Louisburg Road. Miranda came upon an employee who was outside smoking. Miranda grabbed the employee by the neck and forced her into the gas station. Miranda, who was holding what appeared to be a firearm, then demanded money from the employee stating, “Don’t make me shoot you with this 9.” After receiving $115 from the employee, Miranda directed the employee to lie down on the ground and then fled the business.
Later, on June 24, 2019, Miranda entered the Circle K Gas Station on New Bern Avenue in Raleigh. Miranda walked behind the counter and placed his knuckle to the back of the clerk’s neck, insinuating he possessed a firearm. Miranda then told the clerk, “You know what time it is.” The clerk emptied the register and gave Miranda a plastic bag containing $250. Miranda then ran out of the business.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00260-BO
Serial Cell Phone Store Robber Convicted at TrialRead the Press Release
A federal jury has convicted a Long Beach, California man of committing a spree of violent cell phone store robberies, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After around two hours of deliberations, a jury on Wednesday found 49-year-old Edward Eugene Robinson guilty of conspiracy to interfere with commerce by robbery, two counts of interfering with commerce by robbery, and two counts of brandishing a firearm during a crime of violence.
According to evidence presented at trial—which included eyewitness testimony, store surveillance videos, and evidence obtained from search warrants—Mr. Robinson was the leader of a robbery crew that committed at least 15 armed robberies of cell phone stores across North Texas and Southern California in the spring and summer of 2019.
The evidence showed that during the robberies, Mr. Robinson and his accomplices would threaten store employees with guns and tasers and demand that they open the store safes where the phones and other equipment were stored. The robbers would then restrain the employees using zip-ties or cell phone chargers.
Over the course of the conspiracy, Mr. Robinson stole over $600,000 of inventory, including cell phones, tablets, and watches.
Mr. Robinson faces a minimum of 14 years and up to life in federal prison for his crimes. A sentencing date has been set for July 8. He also faces additional charges in the Central District of California.
“Mr. Robinson and his coconspirators embarked on a multi-state spree of violent robberies, putting the lives of innocent civilians at risk,” said Acting U.S. Attorney Shah. “We are grateful to the prosecutors and law enforcement partners across Texas and California who worked tirelessly to bring this criminal actor to justice.”
“The FBI focuses its investigative resources on suspects who pose the greatest safety threats to the public, including violent serial offenders who cross jurisdictional boundaries,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “In addition to stealing over $600,000 of merchandise, Mr. Robinson and his accomplices threatened dozens of employees who were in fear for their lives long after the robberies ended. The FBI’s Safe Streets Task Force and our partners will continue to seek justice for victims of violent crime.”
The other defendants in the case—Aaron Hardrick, 33, and Ncholeion Hollie, 30, both of Fort Worth, Texas—previously pleaded guilty. Mr. Hardrick pleaded guilty in 2019 to multiple federal robbery and firearms charges in North Texas and Southern California. He was sentenced to 45 years in federal prison. Ms. Hollie pleaded guilty in 2020 to one federal robbery charge in North Texas and was sentenced to 9 years in federal prison.
The Federal Bureau of Investigation Safe Streets Task Force, Fort Worth Police Department, Hurst Police Department, and Bedford Police Department conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Nancy Larson of the Northern District of Texas prosecuted the case. They received substantial assistance from Assistant U.S. Attorneys Jerry C. Yang and Peter H. Dahlquist of the Central District of California, who also prosecuted other California members of the robbery crew.
Richland Tax Return Preparer Sentenced to 6 Months in Federal Prison for Preparing False Tax ReturnsRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jonathon F. Schumann, age 49, of Richland, Washington, was sentenced today after having pleaded guilty on November 5, 2020, to three counts of aiding and assisting in the preparation and filing of false income tax returns. United States District Judge Salvador Mendoza, Jr. sentenced Schumann to a 6-month term of imprisonment, to run concurrent to a 1-year term of court supervision. Judge Mendoza ordered Schumann to pay $195,202 in restitution to the Internal Revenue Service (“IRS”), and to pay $50,000 of that amount no later than March 25, 2021.
According to information disclosed during court proceedings, Schumann operated a tax return preparation business under the name J’s Income Tax out of his residence in Richland, Washington. Through J’s Income Tax, Schumann prepared false tax returns for clients in Washington and Las Vegas, Nevada claiming fraudulent and inflated itemized deductions, including charitable contributions, personal property taxes and unreimbursed employee business expenses. By including these false items, Schumann’s clients received tax refunds from the IRS in excess of what they were entitled to receive. The fraudulent claims resulted in a loss of $195,202 to the IRS.
Acting United States Attorney Harrington said, “Schumann undermined the American tax system and the trust of taxpayers relying on his expertise. Tax preparers have a responsibility to legally and accurately prepare tax returns on behalf of their clients. The sentence imposed by the Court reflects the serious nature of his conduct. The United States Attorney’s Office for the Eastern District of Washington works closely with our partners at IRS Criminal Investigation to protect the law-abiding American public and the treasury by stopping this fraud.”
“While most return preparers provide excellent service, Mr. Schumann filed false and fraudulent returns that defrauded his clients, the tax-paying public, and the government,” said IRS Criminal Investigation Acting Special Agent in Charge Steven M. Slazinik. “Return preparer fraud continues to be a priority for IRS Criminal Investigation and if you suspect fraudulent activity from your return preparer, you can report it at www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity”
This case was investigated by IRS Criminal Investigation. This case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Repeat Fraudster Sentenced for COVID-19 Loan Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to 51 months in prison for engaging in a COVID-19 related loan fraud scheme with losses of nearly $200,000.
“During a global pandemic, the defendant took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue to hold accountable individuals who exploit and disadvantage others in order to unlawfully enrich and advantage themselves.”
According to court documents, Joseph Cherry, 40, of Norfolk, engaged in a scheme to obtain COVID-related loan benefits through the Small Business Administration (SBA) and affiliated lenders. In addition to traditional SBA funding programs, the CARES Act, which was signed into law in March 2020, established several new temporary programs and provided for the expansion of others to address the COVID-19 outbreak. Such programs include the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).
“Exploiting programs meant to help businesses in need during a global pandemic is appalling. Today, Cherry learned his actions have repercussions,” said Kelly R. Jackson, IRS-CI Special Agent in Charge. “We will continue to prioritize COVID-19 fraud investigations on those who essentially rob struggling businesses of the assistance they truly need.”
In March and April 2020, Cherry submitted multiple applications for PPP and EIDL loans. Cherry provided false information on the loan applications related to his claimed businesses, income, employment, and criminal record. As a result of these false applications, Cherry fraudulently obtained $196,900 in loan proceeds from the U.S. Treasury. In a brief period of time in April 2020, Cherry withdrew over $100,000 in the form of cash and a cashier’s check and made various purchases inconsistent with the purposes of the PPP and EIDL programs.
Cherry previously was convicted in the Eastern District of Virginia in 2009 for an extensive fraud, money laundering, and identity theft scheme involving losses of over $1.5 million. He has been convicted of over a dozen felony charges in federal and state courts since 2002, and he was under terms of supervision in both federal and state courts when he committed these additional fraud offenses in 2020.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Hannibal “Mike” Ware, Inspector General of the Small Business Administration; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-27.
Rapid City Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on March 8, 2021, by U.S. District Judge Jeffrey L. Viken.
Vance Allan Warthen, age 31, was sentenced to 36 months in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Warthen will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stems from Warthen sexually exploiting an underage female in August 2019 at Rapid City by producing images of child pornography. He remained in possession of the images thereafter.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Warthen was immediately remanded to the custody of the U.S. Marshals Service.
Poachers of 93 Protected Sea Turtle Eggs Sentenced to PrisonRead the Press Release
Miami, Florida – Bruce Wayne Bivins and Carl Lawrence Cobb, both of Riviera Beach, Florida, will serve federal prison terms after pleading guilty to poaching federally-protected sea turtle eggs.
U.S. District Court Judge Rodolfo A. Ruiz II sentenced Bivins to a seven-month term of imprisonment followed by one year of supervised release for his role in violating the Endangered Species Act, a federal law designed, in part, to protect imperiled species.
U.S. District Court Judge Kenneth A. Marra sentenced Cobb, Bivins’ co-conspirator, to a nine-month term of imprisonment followed by one year of supervised released for his role in violating the Endangered Species Act.
Florida Fish and Wildlife investigators caught Bivins and Cobb on the evening of May 24, 2020, while conducting a surveillance operation and observed Cobb (who was on Federal Supervised Probation for his January 26, 2018 conviction at the time), driving a green Ford Truck in the vicinity of 5060 North Ocean Drive, Riviera Beach, Florida. Cobb dropped Bivins off, and investigators observed Bivins digging in the sand, probing the sand with a stick, and placing his hand in and out of a dark-colored bag. Investigators later observed Bivins enter a vehicle, also driven by Cobb, with the now- heavily laden dark-colored bag. According to court records, after investigators stopped the two men, it was determined that the dark-colored bag contained freshly harvested, Federally- and State-protected sea turtle eggs.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Assistant Director Edward Grace of the U.S. Fish & Wildlife Service, Office of Law Enforcement, and Law Enforcement Director Colonel Curtis Brown of the Florida Fish & Wildlife Conservation Commission, made the announcement.
U.S. Fish & Wildlife Service and Florida Fish & Wildlife Conservation Commission investigated this matter. Assistant U.S. Attorney John McMillan is prosecuting it.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-80091.
Images taken by Florida Fish & Wildlife Conservation Commission. Sea Turtle nest chamber which eggs were removed from.
Images taken by Florida Fish & Wildlife Conservation Commission. Dark colored bag containing illegally harvested Sea Turtle eggs.
Images taken by Florida Fish & Wildlife Conservation Commission. Image of seized Loggerhead Sea Turtle eggs.
Images taken by Florida Fish & Wildlife Conservation Commission. Image of seized Loggerhead Sea Turtle eggs.###
Pierre Men Indicted on Firearm ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that two Pierre, South Dakota, men have been indicted by a federal grand jury for Prohibited Person in Possession of Firearm.
Guillermo Arceo-Estrada, age 23, and Eduardo Velasquez-Padilla, a/k/a Eduardo Velazquez-Padilla, age 30, were indicted on January 12, 2021. Both men appeared before U.S. Magistrate Judge Mark A. Moreno on March 9, 2021, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 5, 2020, in Pierre, Arceo-Estrada and Velasquez-Padilla, then being aliens illegally and unlawfully in the United States, did knowingly possess several firearms.
The charges are merely accusations and Arceo-Estrada and Velasquez-Padilla are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the South Dakota Department of Game, Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Arceo-Estrada and Velasquez-Padilla were released on bond pending trial. A trial date has not been set.
Owner of Mental Health Services Agency Pleads Guilty to Health Care Fraud ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that WALI MUHAMMAD, 45, of Branford, waived his right to be indicted and pleaded guilty today to one count of health care fraud.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Thomas O. Farrish occurred via videoconference.
According to court documents and statements made in court, from 2010 to 2019 Muhammad owned and operated Happy Family Clinical Services LLC (“Happy Family”), a mental health and social services agency. At various times, Happy Family’s office was located in East Haven and Branford, before moving to New Haven in 2014.
From 2013 through 2019, Muhammad engaged in a scheme to defraud the Connecticut Medicaid Program by submitting fraudulent claims for psychotherapy services that were purportedly provided to Medicaid clients. The claims were for occasions and dates of service when no psychotherapy services of any kind had been provided to the Medicaid clients identified in the claims. The claims also were submitted using the names and identities of licensed clinical social workers and other licensed health care providers who purportedly worked for Happy Family, and represented that the psychotherapy services were personally rendered by the licensed providers, when, in fact, the licensed providers had not personally rendered the services, had not supervised the services that were billed, and were unaware that Muhammad was billing or causing the services to be billed as if the providers had personally rendered the services. When services were provided, they were usually rendered by unlicensed individuals and billed as licensed psychotherapy.
Muhammad is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 23, 2021, at which time he faces a maximum term of imprisonment of 10 years. As part of his plea, Muhammad agreed to pay $574,034 in restitution to Medicaid.
This case has been investigated by Special Agents of the Office of the Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), and Police Inspectors from the Medicaid Fraud Control Unit (MFCU) of the Connecticut Chief State’s Attorney’s Office. Acting U.S. Attorney Boyle also thanked the Connecticut Attorney General’s Office, the Connecticut Department of Social Services, and the Connecticut Department of Mental Health and Addiction Services for their assistance in the investigation.
The matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office, and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Federal Bureau of Investigation. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Owner of Erie Fresh Meat Market Pleads Guilty to Food Stamp FraudRead the Press Release
ERIE, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to defraud the United States, Acting United States Attorney Stephen R. Kaufman announced today.
Laith Kadhem, 36, pleaded guilty to one count before United States District Judge Stephanie L Haines.
In connection with the guilty plea, the court was advised that from in and around March 2016 to in and around September 2017, Kadhem, who was the owner and operator of Anwar Fresh Meat Market in Erie and a co-defendant, Haydar Al-Kofi, who was the manager and partner working at Anwar Fresh Meat Market, conspired to defraud the United States by filing an application containing false information for a license to accept SNAP (Supplemental Nutrition Assistance Program) benefits and accepting food stamps for cash, and ineligible items.
Judge Haines scheduled sentencing for July 16, 2021 at 11:00 a.m. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Kadhem on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
This case was investigated as part of the Pittsburgh Document and Benefit Fraud Task Force (DBFTF), a multi-agency partnership established to focus on high-impact criminal investigations involving the use of fraudulent documents in furtherance of immigrations benefit applications and petitions, financial fraud, criminal work-site enforcement, and public benefits fraud. The Pittsburgh DBFTF consists of the following agencies: Homeland Security Investigations, US Citizenship and Immigration Services, the Social Security Administration-Office of the Inspector General, the Internal Revenue Service-Criminal Investigations, US Department of State-Diplomatic Security Service, US Department of Agriculture- Office of the Inspector General, US Department of Labor- Office of the Inspector General, and the Pennsylvania Office of the Attorney General.
Ohio Man Facing Federal Charges for Carroll County BombingRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Clayton Alexander McCoy, age 30, of Chesterland, Ohio, with transporting explosives with intent to injure and with with using, carrying, or possessing a destructive device during and in relation to a crime of violence, in connection with a bombing in Manchester, Maryland on October 30, 2020. The criminal complaint was filed on March 3, 2021 and unsealed today. McCoy will have an initial appearance in U.S. District Court in Cleveland, Ohio on March 12, 2021. McCoy will be transported to Maryland for an initial appearance in U.S. District Court in Baltimore at a later date.
The federal charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian S. Geraci; Carroll County Sheriff James T. DeWees; and Carroll County State’s Attorney Brian DeLeonardo.
According to the affidavit filed in support of the criminal complaint, on October 30, 2020, a victim sustained serious injuries and burns consistent with an explosion, after opening a package. Another resident of the home found the package, which was addressed to the victim, on the front porch of the home that morning at approximately 8:30 a.m., after the victim had left for work. The resident brought the package into the house and placed it in the kitchen to await the victim’s return. At approximately 5:30 p.m., the victim returned home and saw the cardboard box that was addressed to him. He opened the cardboard box and observed a smaller white box with a red ribbon inside. The victim took both boxes into his bedroom to open in private. According to the victim, as he opened the smaller white box, a small nail that appeared to be inserted into the white box was pulled outward. When he removed the nail, the victim heard a whistling or hissing sound followed by an explosion. The victim was struck in the front of his body by shrapnel and sustained injuries to his chest, legs, and front of body. He was transported to the hospital where he was treated for injuries caused by the shrapnel and explosion. The victim was released from the hospital on November 17, 2020 and is continuing with rehabilitation. Investigation revealed that the explosive device was likely a type of pipe bomb containing shrapnel.
The victim’s girlfriend advised law enforcement of a recent interaction with McCoy, with whom she had been friends for approximately seven years. As detailed in the affidavit, the victim, his girlfriend, and McCoy were all friends through their participation in Dagorhir, a live action role-playing battle game with full contact melee fighting and ranged combat as its primary focus. Sometime in early October 2020, McCoy told the victim’s girlfriend that he had feelings for her. She advised McCoy that she did not feel the same way and that she was in a relationship with the victim. She and McCoy agreed to remain friends.
Search warrants obtained by law enforcement found that in the very early morning of October 30, 2020, a device associated with McCoy and located at his residence allegedly searched for and obtained directions to the victim’s home address. McCoy’s cell phone then allegedly traveled from his home to the victim’s home, and a pickup truck, similar to a pickup truck registered to McCoy’s mother, was seen in front of the victim’s home and was depicted on home security video taken that day from a neighbor’s security camera. In addition, a review of McCoy’s online accounts revealed that a week before that the bombing, McCoy allegedly searched for the gas tank capacity of a 1994 Toyota pickup, the same make and year of the pickup truck registered to McCoy’s mother.
If convicted, McCoy faces a maximum sentence of 20 years in federal prison for transporting explosives with intent to injure and a mandatory minimum of 30 years and a maximum of life in federal prison for using, carrying, or possession of a destructive device during and in relation to a crime of violence. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the Office of the Maryland State Fire Marshal, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation and thanked Acting United States Attorney for the Northern District of Ohio Bridget M. Brennan and her office, and the ATF Columbus Field Division for their assistance with the searches and arrest. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Northern California Man Indicted for Distributing and Possessing Fentanyl in Solano and Stanislaus CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Leobardo Gerardo Anaya, 28, of Richmond, charging him with distributing and possessing with intent to distribute fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 26, 2020, Anaya sold approximately 100 counterfeit oxycodone hydrochloride pills to a confidential source who was working with law enforcement. The blue pills were stamped with “M30.” Subsequent testing revealed that these pills were laced with fentanyl, a Schedule I controlled substance. On Jan. 13, 2021, law enforcement officers stopped Anaya’s vehicle in Stanislaus County for speeding. Approximately 2,000 more M30 pills, which also tested positive for fentanyl, were found in his vehicle.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
If convicted of possession with intent to distribute over 40 grams of fentanyl, Anaya faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison and a fine of up to $5 million. If convicted of distribution of fentanyl, Anaya faces a maximum penalty of 20 years in prison and a fine of up to $1 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nigerian National Sentenced to Nine Years in Federal Prison for a Money Laundering Conspiracy Related to a Romance Scam and Other Fraud SchemesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Nigerian national Seun Banjo Ojedokun, age 37, to nine years in federal prison, followed by three years of supervised release, for a money laundering conspiracy related to a romance scam and other fraud schemes. Judge Grimm also ordered Ojedokun to pay $325,100 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
Acting U.S. Attorney Jonathan F. Lenzner stated, “I hope that this sentence serves as a deterrent to those who, like Ojedokun and his co-conspirators, take advantage of vulnerable and elderly victims across the United States, defrauding them through lies and laundering the funds internationally. These heartless fraudsters left their victims heartbroken, embarrassed, and financially devastated. Bringing to justice fraudsters who prey upon the elderly is one of the highest priorities of the U.S. Attorney’s Office and our law enforcement partners. We will continue our outreach efforts to make the public aware of scams and frauds targeting elderly victims. I encourage anyone who believes they or someone they know who may be a victim to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to the evidence presented at his six-day trial, between 2013 and March 2015, Ojedokun conspired with Gbenga Benson Ogundele, Mukhtar Danjuma Haruna, a/k/a “Mukky,” and others to use money deposited into bank accounts by fraud victims to engage in financial transactions in order to promote the fraud scheme and conceal the nature, location, source, ownership, and control of the fraud proceeds. Ojedokun was in Nigeria when he was committing these crimes. Law enforcement was able to arrest him when he came to the United States to attend school here.
According to evidence presented at trial, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable men and women. They phoned, e-mailed, texted and used Internet chat messenger services to form romantic relationships with the victims, who lived throughout the United States.
Specifically, witnesses testified that members of the conspiracy used false stories and promises to convince the many victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses, and foreign taxes. Ogundele and other conspirators opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. Testimony at trial showed that victims provided money to the conspirators as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the conspirators, or by checks sent to the conspirators. The loss to the eight victims who testified at trial was well over $1 million and the overall total loss was substantially higher.
In addition, the evidence at trial showed that the conspirators engaged in other types of fraud, including a fraudulent employment scam in which the victim was led to believe she had been hired by a company, and was instructed to deposit the proceeds of a fraudulent check into a drop account controlled by the conspirators.
According to the evidence, Ojedokun, Ogundele, Haruna, and their co-conspirators laundered money received from the fraud victims by buying used cars and shipping them to Nigeria, among other methods. As part of the fraud schemes, Ojedokun and his co-conspirators transmitted and used images of financial transactions, including bank deposit receipts and wire transfer forms, as proof that a deposit of fraud money had been made by a victim.
Ogundele, age 61, formerly of Laurel, Maryland, was convicted in 2016 after a 17-day trial, of conspiracies to commit money laundering and wire fraud, as well as aggravated identity theft, and was sentenced to 234 months in federal prison. Haruna, age 46, of Nigeria, remains a fugitive and charges against him are still pending. In addition to Ogundele, eight other defendants were convicted for their roles in the fraud scheme and were sentenced to between a year and a day and 234 months in federal prison.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
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New Bank Fraud and Aggravated Identity Theft Charges Added to Non-Profit CEO’S Previous Federal Indictment Charging Her with Wire Fraud, Bank Fraud, and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – A newly filed federal superseding indictment adds bank fraud and aggravated identity theft charges against Glenda Hodges, age 69, of Clinton, Maryland, who was already facing wire fraud, bank fraud, and aggravated identity theft charges in connection with the misuse of federal funds and other fraud related to non-profit and for-profit entities that Hodges operated. The new bank fraud charges relate to a fraud allegedly committed while Hodges was on pretrial release for the wire fraud charges. The superseding indictment was returned on March 10, 2021. At a hearing today in U.S. District Court in Greenbelt, Hodges was ordered to be detained pending trial for violating the conditions of her pre-trial release.
The superseding indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Kenneth R. Dieffenbach of the U.S. Department of Justice Office of Inspector General, Fraud Detection Office; Maryland State Prosecutor Charlton T. Howard III; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the 12-count superseding indictment, between October 9, 2020 and October 21, 2020, while on pretrial release, Hodges allegedly defrauded her fourth victim by claiming she would monitor the victim’s finances while the victim prepared to move out of state. Hodges assured the victim that she would return the funds once the victim was settled in her new location. Hodges drove the victim to her financial institution and procured a check for $71,731.85, which Hodges deposited into her own bank account. Hodges then allegedly spent the victim’s money on personal expenditures, without the victim’s authorization, and failed to repay the victim.
According to the superseding indictment, Hodges owned and was the Chief Executive Officer of Still I Rise Incorporated, a non-profit entity which purported to provide services and resources to minority survivors of domestic violence, sexual assault and stalking; Still I Rise Comprehensive Support & Training Services LLC (“CSST”), a for-profit entity; and the Women’s Wellness Center (WWC), a for-profit medical weight loss clinic operated under the umbrella of CSST. Between 2010 and 2017, Hodges was awarded more than $2 million in grants from the United States Department of Justice’s (“DOJ”) Office of Violence Against Women (“OVW”) and Prince George’s County to implement a violence against women program through Still I Rise.
The three grants that DOJ OVW awarded Hodges and Still I Rise were authorized only for the stated purpose of implementing Still I Rise’s non-profit program to address violence against women. Specifically, Hodges represented that the funds would be used to provide community services related to violence against women, including crisis intervention, support groups, financial and employment counseling, material assistance, job training, advocacy, court and medical accompaniment, language services, and transportation. Hodges allegedly represented that she would accept only a $12,000 stipend each year as the Director of Still I Rise. However, the superseding indictment alleges that Hodges converted funding from the grant awards to her personal benefit and to pay WWC payroll and other WWC expenses. By 2016, Hodges had exhausted the grant funding and her companies were financially distressed. The superseding indictment alleges that Hodges then used fraudulent means to inject additional funding into WWC and Still I Rise.
Specifically, the superseding indictment alleges that on October 9, 2015, Hodges caused $134,800 to be stolen from Victim 1—a mutual fund in Pennsylvania—and wired into a bank account associated with Still I Rise, and then used the stolen funds for expenditures at WWC and for her personal benefit. In addition, on April 8, 2016, Hodges deposited a $72,938 altered business check related to a federal cancer research grant that had allegedly been stolen from Victim 2, a prominent university in Texas, into a different bank account opened in the name of Still I Rise and over which Hodges was the sole authorized signer.
Further, the superseding indictment alleges that between March 10 and August 26, 2016, Hodges fraudulently opened credit accounts at two financial institutions using the identifying information of Victim 3, an elderly volunteer at Still I Rise, without the victim’s knowledge or permission, accumulating at least $45,000 in debt. According to court documents, to secure one of the lines of credit, Hodges had Victim 3 medically transported to a nearby bank. When Victim 3 was brought to the bank, Victim 3 was in pain and in a wheelchair, and had an antibiotic catheter line running to her heart.
Finally, the superseding indictment alleges that, as the owner of WWC, and to preserve the medical clinic’s capital, Hodges directed her medical practitioners to inject saline solution into patients rather than Lipo-C, a weight-loss injection therapy requested by patients, and issued nonsufficient funds checks to her employees..
If convicted, Hodges faces a maximum sentence of 20 years in federal prison for each of three counts of bank fraud and seven counts wire fraud. Hodges also faces a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Hodges is expected to have an initial appearance in U.S. District Court in Greenbelt, but no date has been scheduled.
A superseding indictment is not a finding of guilt. An individual charged by superseding indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the Department of Justice Office of Inspector General, the Office of the Maryland State Prosecutor, and the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.
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Nebraska Man Sentenced to 21 Months in Prison for Stealing and Selling Employer’s Confidential InformationRead the Press Release
NEWARK, N.J. – A Nebraska man was sentenced today to 21 months in prison for engaging in fraudulent activity that exposed his employer’s confidential information, Acting U.S. Attorney Rachael A. Honig announced.
Timothy Young, 50, of Moorefield, Nebraska, previously pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with wire fraud. Judge Hayden imposed the sentence by videoconference today.
According to documents filed in the case and statements made in court:
Young was employed at a data analytics and risk assessment firm based in New Jersey. The company serves customers worldwide, including entities providing insurance and financial services as well as government entities. The company maintains a network that houses, among other things, significant amounts of personally identifiable information.
Without the firm’s approval, Young obtained confidential, non-public information that belonged to the firm. The information included names, logon names, passwords, email addresses, and telephone numbers for some of the company’s clients. Young then attempted to sell the information.
In addition to the prison term, Judge Hayden sentenced Young to three years of supervised release and ordered him to pay restitution of $296,370.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and task force officers from the N.J. State Police, Jersey City Police Department, Ocean City Police Department, and Federal Protective Service, with the investigation leading to today’s sentencing. She also thanked the FBI’s Omaha Division, under the direction of Special Agent in Charge Kristi Koons Johnson, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Mounds Resident Pleads Guilty to Assault Resulting in Serious Bodily Injury in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Richard Lloyd Jack, Jr., age 57, of Mounds, Oklahoma entered a guilty plea to Assault Resulting in Serious Bodily Injury in Indian Country, in violation of Title 18, United States Code, Sections 113(a)(6), 2, 1151 and 1153, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about September 29, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, Richard Lloyd Jack, Jr., an Indian, did assault G.W. resulting in serious bodily injury.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Benjamin D. Traster represented the United States.
Missoula CPA sentenced to two years in prison, fined for filing false tax returnsRead the Press Release
MISSOULA – A Missoula certified public accountant convicted of filing false tax returns for a couple’s businesses was sentenced today to two years in prison to be followed by one year of supervised release and fined $10,000, Acting U.S. Attorney Leif Johnson said.
After a four-day trial, a jury convicted Daniel Brian Burke, 64, on Nov. 5, 2020 of six counts of aiding and assisting to subscribing to a false document.
U.S. District Judge Dana L. Christensen presided. Judge Christensen ordered Burke to self-report to prison.
“As with all tax preparers, Mr. Burke had a responsibility to ensure that his clients complied with the tax laws. Instead, Burke actively helped them cheat on their taxes by hiding income, inflating expenses, and manipulating depreciation. With tax season under way, I hope this case will encourage tax preparers and taxpayers to think twice before committing tax fraud. If they commit fraud, they will be investigated and prosecuted,” Acting U.S. Attorney Johnson said.
“Today's sentencing of Daniel Burke is a direct result of the excellent partnership the IRS and the U.S. Attorney’s Office have in combating violations of federal law,” said Andy Tsui, Special Agent in Charge IRS Criminal Investigation, Denver Field Office. “This sentence is a strong message to all CPAs and tax preparers everywhere who are contemplating abusing or exploiting the tax system. IRS CI is committed to investigating and prosecuting those who abuse our tax system.”
In court documents filed in the case and evidence presented at trial, the government alleged that Burke signed false tax returns along with co-defendants and clients, Traci and Joseph Baumgardner, owners of AJB, Inc. and JZ Contracting, Inc., for years 2011 to 2013. In total, the Baumgardners reported gross receipts of $5,001,374 and paid federal taxes totaling $10,066 for the time. Traci and Joseph Baumgardner each pleaded guilty to a conspiracy count and were sentenced to three years of probation and ordered to pay $89,918 restitution.
The government alleged that through AJB and JZ Contracting, Inc., the Baumgardners operated two businesses, Splash Car Wash, in Missoula and Hamilton, and Pro Sweeps Plus, an industrial maintenance service. Burke, a certified public accountant, owned and operated Burke and Company, P.C., and prepared corporate and individual tax returns for the Baumgardners.
Prosecutors further alleged an undercover investigation by the IRS showed that Burke instructed the Baumgardners not to deposit cash in the bank or report it as income as required, to deduct personal expenses as business expenses and to improperly depreciate assets. An undercover IRS agent met with Burke and in a recorded interview, Burke agreed to file false tax returns for the undercover agent. At one point, Burke asked the agent, “You're not an undercover agent from the IRS or anything?” The agent responded no. Burke told the agent how to avoid taxes.
Assistant U.S. Attorneys Ryan Weldon and Karla Painter prosecuted the case, which was investigated by the IRS.
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Memphis Businessman Sentenced to Federal Prison for Filing False Tax ReturnRead the Press Release
Memphis, TN – Henly Dolmon, Jr., 38, has been sentenced to 15 months for filing a false federal income tax return. Acting U.S. Attorney Joseph C. Murphy, Jr., announced the sentence today.
According to information presented in court, Dolmon, the former owner of Simple Tax Solutions, failed to report most of the income he derived from Simple Tax Solutions on his 2012 federal income tax return.
On March 10, 2o21, U.S. District Judge Mark Norris sentenced Dolmon to a total of 15 months imprisonment, ordering Dolmon to serve 8 months in federal prison to be followed by 7 months of home detention. Dolmon was also ordered to serve 1 year of supervised release after his in-custody sentence. He will also be required to pay $124,000 in restitution to the IRS. There is no parole in the federal system.
This case was investigated by IRS Criminal Investigations.
Assistant U.S. Attorney Tony R. Arvin prosecuted this case on behalf of the government.
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McKeesport Woman Pleads Guilty to Embezzling More than $43KRead the Press Release
PITTSBURGH, PA - A resident of McKeesport, PA, pleaded guilty in federal court to a charge of wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Larita Jenkins, 49, pleaded guilty to one count before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that from April 2017 until October 2017, Jenkins embezzled $43,161.03 from her employer, Selavy, Ltd. d/b/a candyfavorites.com. Jenkins embezzled the funds by accessing the company’s credit card software numerous times and issuing fraudulent refunds, causing company funds to be issued to both her and her husband’s bank accounts.
Judge Stickman scheduled sentencing for July 13, 2021 at 10:30 am. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted Jenkins to remain on bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jenkins.
Maryland U.S. Attorney’s Office Creates Civil Rights Unit to Prosecute Hate Crimes and Violations of Federal Law and to Address Discrimination in Housing, Education, and Other SectorsRead the Press Release
Baltimore, Maryland – Today, Acting United States Attorney Jonathan F. Lenzner announced that the United States Attorney’s Office for the District of Maryland has established a Civil Rights Unit to enhance the Office’s focus on the enforcement and protection of the civil and constitutional rights of all Maryland residents, including the most vulnerable members of our communities.
In announcing the new Civil Rights Unit, Acting United States Attorney Lenzner stated: “The U.S. Attorney’s Office has always enforced federal laws that prohibit discrimination on the basis of race, ethnicity, sex, color, disability, religion, national origin, sexual orientation, familial status and citizenship. We are making it a priority to have the capabilities to address all forms of discrimination that may exist in any sector or community. It is important that our focus and capabilities in the area of civil rights be well known throughout all Maryland communities. The establishment of the Civil Rights Unit to vigorously enforce federal civil rights laws will help foster a community where individuals live free from unlawful barriers and ensure equal opportunity to all citizens regardless of any protected status.”
Specifically, the Civil Rights Unit will investigate and prosecute violations of criminal statutes, including hate crimes and deprivation of rights made under the color of law, and will bring civil cases to address patterns or practices of discrimination in housing, education, health care and employment, among other areas. The Unit will also coordinate with the U.S. Attorney’s Office’s National Security Section on allegations and investigations related to domestic terrorism to ensure that civil rights statutes, including those related to hate crimes and racially motivated offenses, are considered and employed, as appropriate.
To accomplish its goals, the Civil Rights Unit will be staffed by assistant U.S. Attorneys from both the Civil and Criminal Divisions, who will work together to ensure that a full arsenal of statutes and remedies are employed to address all forms of discrimination. The Civil Rights Unit will develop working relationships with local, state, and federal law enforcement agencies throughout Maryland that are focused on enforcing civil rights, and will increase outreach efforts to public, private, and not-for-profit entities. The Office will also continue to partner and coordinate with the Civil Rights Division at the U.S. Department of Justice, as well as assist county and municipal jurisdictions in Maryland to identify and seek grants and other funding and training opportunities administered by the Department of Justice.
Through the U.S. Attorney’s Office’s prioritization and strengthened partnerships, civil rights violations in Maryland will be investigated and as appropriate, prosecuted by federal or state prosecutors. To report suspected violations of civil or criminal civil rights statutes, you may contact the FBI at 410-265-8080 or [email protected].
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Manchester Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Keith Robertson, 47, of Manchester, pleaded guilty in federal court to possession of methamphetamine with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 12, 2019, Robertson was a passenger in a vehicle that was stopped by the Barnstead Police for a defective headlight. During the stop, the officer determined that Robertson was the subject of an arrest warrant and placed him under arrest.
The driver subsequently consented to a search of the vehicle. During the search, the officer found evidence of drug use and a scale, as well as a bag containing a drug ledger, approximately $1,600 in cash, and Robertson’s identification card.
After being transported to the police station, Robertson admitted that he had methamphetamine concealed on his person and removed a bag from his pants containing over 132 grams of methamphetamine.
Robertson is scheduled to be sentenced on June 17, 2021.
“Methamphetamine is a very dangerous drug that can cause serious health problems or death,” said Acting U.S. Attorney Farley. “In order to protect the community, we will not hesitate to bring federal charges against the drug traffickers who are distributing this dangerous substance. Thanks to good police work, this methamphetamine dealer has been put out of business.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Barnstead Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Man on Probation for Fresno County Second Degree Robbery Conviction Charged Federally with Drug Trafficking and Firearms OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Fausto Piña, 31, a Mexican national residing in Fresno, charging him with being a felon in possession of a firearm, possession with intent to distribute methamphetamine, cocaine, and heroin, and possession of a firearm in furtherance of a drug trafficking offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, after Piña was arrested on outstanding warrants, law enforcement officers executed a search warrant at his apartment. That search yielded 97.17 pounds (41.8 kilograms) of methamphetamine, 2.42 pounds (1.1 kilograms) of cocaine, 1.3 pounds (.58 kilograms) of heroin, three firearms, loaded and unloaded large capacity magazines, and ammunition. A search of Piña’s person and vehicle yielded nearly $24,000 in cash. Because Piña is a convicted felon, he is prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Drug Enforcement Administration, the Multi‑Agency Gang Enforcement Consortium (MAGEC), and the Fresno Police Department. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted of felon in possession of a firearm, Piña faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. If convicted of possession with intent to distribute methamphetamine, Piña faces a mandatory minimum statutory penalty of 10 years in prison up to a maximum of up to life in prison, and a fine of up to $10 million. If convicted of possession with intent to distribute cocaine or heroin, Piña faces a mandatory minimum statutory penalty of five years in prison up to a maximum of up to 40 years prison, and a fine of up to $5 million on each count. If convicted of possession of a firearm in furtherance of a drug trafficking offense, Piña faces a mandatory minimum statutory penalty of five years in prison up to a maximum of life in prison consecutive to the sentence on his drug conviction(s). Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Man Sentenced to 3 Years in Federal Prison for Narcotics Trafficking OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ANTHONY PATTERSON, also known as “AP” and “Antonio,” 42, was sentenced yesterday by U.S. District Judge Stefan R. Underhill to 36 months of imprisonment, followed by five years of supervised release, for attempting to traffic narcotics while he was on supervised release after a prior federal conviction.
According to court documents and statements made in court, on July 14, 2014, Judge Underhill sentenced Patterson to 60 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a convicted felon. Patterson’s criminal history also includes a conviction for conspiracy to commit murder for his role in the death of a 32-year-old man in Norwalk in 2001.
In 2018, while he was serving his 60-month federal sentence, Patterson approached a fellow inmate to find a person who could help him import narcotics from Mexico into the U.S. In 2019, after his release from prison and while on supervised release, Patterson travelled to Texas with another convicted felon and negotiated the purchase of five kilograms of cocaine with an undercover DEA agent and a confidential informant. Patterson was arrested on November 13, 2019, after he met with the undercover agent at a hotel in Connecticut to pick up a kilogram of cocaine.
Patterson has been detained since his arrest. On November 19, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.
This matter was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorneys Rahul Kale and Karen L. Peck.
Louisiana Man Sentenced to Almost 22 Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
Gulfport, Miss. – Montrecus Jaworski Campbell, 40, of Ville Platte, Louisiana, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 262 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 500 grams or more of a substance containing methamphetamine, announced Acting U.S. Attorney Darren LaMarca and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (“DEA”). Campbell was also ordered to pay a $10,000.00 fine.
In June of 2020, DEA Special Agents discovered that Campbell received shipments of methamphetamine at his home in Louisiana before providing the methamphetamine to co-conspirators to distribute in the Southern District of Mississippi. Agents were able to intercept one of the packages and determine that it contained nearly 3 kilograms of 99% pure methamphetamine.
Campbell was indicted on August 11, 2020 and he pled guilty before Judge Guirola on November 24, 2020.
This case was investigated by the DEA with assistance from the Louisiana State Police. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
Las Vegas woman pleads guilty to conspiracy to distribute marijuana in St. LouisRead the Press Release
ST. LOUIS – Rita Aramyan of Las Vegas, Nevada, pleaded guilty to one count of conspiracy to distribute marijuana. Aramyan appeared today before United States District Court Judge Ronnie L. White.
Beginning in April 2013 and ending around May 2019, Aramyan was part of a drug trafficking organization that conspired to distribute multi-kilogram quantities of marijuana from sources of supply based in California and launder the proceeds. In total, the organization distributed more than 3,000 kilograms of marijuana to various cities across the United States, including St. Louis, and laundered more than $1.5 million in drug proceeds.
During the course of the conspiracy, Aramyan couriered between 700 and 1,000 kilograms of bulk marijuana from Las Vegas to various cities including St. Louis, Missouri. The marijuana was smuggled in luggage carried on to commercial flights. In one instance, Aramyan was arrested in Fresno, California in possession of approximately 100 pounds of bulk marijuana obtained from the source of supply and destined for the organization. Aramyan also stored bulk cash and marijuana at her residence in Las Vegas for the organization. During a search warrant at her residence in March 2018, investigators located two money counters and $140,000 in cash. Finally, Aramyan utilized “Vanilla Visa” credit cards purchased with marijuana proceeds to buy flights for other couriers to deliver marijuana and proceeds.
Aramyan also aided in laundering marijuana proceeds for the organization. Aramyan collected proceeds from various cities, including St. Louis, and delivered them back to the organization in Las Vegas. The cash was smuggled inside luggage carried on to commercial airlines. In September 2017, investigators seized $50,000 of marijuana proceeds from Aramyan’s luggage as she attempted to board a plane in St. Louis destined for Las Vegas. The organization laundered marijuana proceeds through purchases of real estate, luxury vehicles (such as a Lamborghini Aventador), and a business among other means. Aramyan acted as a “straw” purchaser for two residential properties in Las Vegas, Nevada.
The Drug Enforcement Administration, Internal Revenue Service, and Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Stephen Casey is handling the case.
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Las Vegas man pleads guilty to possession with intent to distribute methamphetamineRead the Press Release
ST. LOUIS – Gregory Simms, 33, of Las Vegas, Nevada, pleaded guilty to possession with the intent to distribute more than 50 grams of methamphetamine. Simms appeared, today, before United States District Court Judge Ronnie L. White.
On June 13, 2020, St. Charles County police stopped Simms for driving a vehicle 80 miles per hour in a 60 miles per hour zone on eastbound Interstate 70 between Bryan Road and Highway K.
A subsequent search of Simms’ vehicle revealed 377 grams of methamphetamine. Simms admitted to the officer he was transporting “ice,” a slang term for crystal Methamphetamine, to St. Louis.
Simms faces a maximum of 40 years imprisonment and a mandatory minimum of five years.
This St. Charles County Police Department investigated the case with assistance from the Drug Enforcement Administration.
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Laredoan admits to transporting conspiracy causing deathRead the Press Release
LAREDO, Texas – A 27-year-old Laredo resident has pleaded guilty to a conspiracy which resulted in the death of an undocumented alien, announced Acting U.S. Attorney Jennifer B. Lowery.
On Nov. 5, 2020, law enforcement attempted to pull over David Valadaz, but he fled. He then crashed into the fence of a local business before fleeing on foot. Three undocumented aliens were in the vehicle, one of whom was in the trunk.
The individual in the truck of the vehicle was deceased when authorities found him. Another had suffered serious bodily injury requiring surgery to his elbow.
Sentencing has been scheduled for June 17 before U.S. District Judge Marina Garcia Marmolejo. At that time, Valadaz faces up to life in federal prison and a possible $250,000 maximum fine.
Valadez has been and will remain in custody pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorneys Anthony Brown and April Ayers-Perez are prosecuting the case.