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Thursday 21 January 2021
Worcester Couple Arrested on Stimulus Fraud ChargesRead the Press Release
BOSTON – A Worcester couple was arrested today and charged in connection with fraudulently applying for business loans under the CARES Act, and then spending the money on personal expenses.
Lucy Oworae, 56, and her husband, Richard Oworae, 59, were charged by criminal complaint with wire fraud and making false statements. They will make an initial appearance before U.S. Magistrate Judge David H. Hennessy this afternoon.
According to the charging documents, between late July 2020 and late August 2020, Lucy and Richard Oworae schemed to defraud the Small Business Administration (SBA) by submitting applications through SBA’s website for at least three Economic Injury Disaster Loans (EIDL) totaling approximately $194,700. The Oworaes fraudulently applied for EIDL loans, provided false statements on the loan applications and misappropriated the loan funds for their personal use.
The Oworaes allegedly created fictitious companies for the purpose of fraudulently applying for EIDL loans, and spent funds obtained from that fraud on unauthorized personal expenses and to make money transfers through a money-remitter business based in Tanzania to numerous individuals residing in Ghana.
EIDL funds are available to eligible individuals and businesses pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The provisions of the CARES Act allowed for the SBA to offer EIDL funding to business owners negatively affected by the COVID-19 pandemic. The provisions of the EIDL program require that loan proceeds only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington State Man Sentenced to Federal Prison for Absconding Supervision and Failing to Register as a Sex OffenderRead the Press Release
EUGENE, Ore.—A Vancouver, Washington man was sentenced to federal prison today for failing to comply with sex offender supervision and registration requirements designed to protect the community from predatory acts, announced U.S. Attorney Billy J. Williams.
Joseph Alonzo Lugo, 50, was sentenced to one year and one day in federal prison and five years’ supervised release. As a condition of his post-prison supervision, Lugo will be required to undergo sex offender treatment and mental health counseling.
According to court documents, Lugo was required to register as a sex offender after pleading guilty in state court, in August 2017, to communicating with a minor for immoral purposes and, less than a year later, pleading guilty to second-degree child molestation. In the latter case, Lugo sexually abused a family member younger than five and served 11 months in prison. He was released in September of 2019 and stopped registering as a sex offender in December of 2019.
On December 31, 2019, Lugo absconded from Washington State supervision and took up residence in Eugene. Shortly thereafter, U.S. Marshals Service deputies began investigating Lugo’s whereabouts and, on April 14, 2020, located him at a house in Eugene. The deputies’ investigation revealed that Lugo had interacted with several children at the house while in non-registration status, though the investigation revealed no evidence of additional sexual offenses. Lugo was arrested on April 14, 2020.
On April 13, 2020, Lugo was charged by criminal complaint with failing to register as a sex offender. He pleaded guilty on October 15, 2020.
This case was investigated by the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney William M. McLaren and Certified Law Student Kara Greenaway.
The United States Marshals Service is the federal government’s primary law enforcement agency for sex offender and fugitive investigations. The United States Marshals Service has implemented an aggressive strategy across the nation, including complex sex offender investigations and multiagency enforcement operations. Protecting children in our communities is a critical part of the multiagency sex offender mission in Oregon.
The Sex Offender Registration and Notification Act (SORNA) is Title I of the Adam Walsh Child Protection and Safety Act of 2006. The act provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA strengthens the nationwide network for the protection of the community.
Vicksburg Man Sentenced to 12 Months in Federal Prison for Providing False Information in an Attempt to Purchase a FirearmRead the Press Release
Jackson, Miss – Dvonte Amir King, 23, of Vicksburg, was sentenced today by U.S. District Court Judge Tom S. Lee to 12 months in federal prison, followed by 3 years of supervised release, for making false statements to a licensed firearms dealer and putting false information on an official form, announced Acting United States Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On June 4, 2018, King attempted to purchase a firearm from a local Vicksburg retailer. King filled out and signed ATF Form 4473, the standard form for background checks. On the form, King marked that he had never been convicted of a misdemeanor crime of domestic violence whereas in truth and in fact, he had been convicted of a misdemeanor crime of domestic violence. Approximately six months prior, on November 28, 2017, King had pled guilty to misdemeanor domestic assault in the Municipal Court of the City of Vicksburg. Persons convicted of misdemeanor crimes of domestic violence are prohibited from purchasing firearms under federal law and it is a federal offense to put false information on the firearm form.
King was charged in a federal criminal indictment. He pled guilty before Judge Lee on September 10, 2020.
This case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Bert Carraway.
United States Attorney Matthew Schneider ResignsRead the Press Release
DETROIT – United States Attorney Matthew Schneider submitted his resignation letter to President Biden yesterday shortly after the President was sworn into office. Schneider’s last day as the United States Attorney will be February 1, 2021. After his resignation, he will immediately join a private law firm based in Detroit.
“It has been the honor of my lifetime to serve the people of Eastern Michigan, alongside the incredibly hard-working team at the U.S. Attorney’s Office,” Schneider said. “In the last three years, this team has overcome tremendous challenges, from the longest federal government shutdown in American history, to an enormous rise in violent crime, the greatest increase in civil unrest since 1967, and a global pandemic. Through it all, the lawyers and support staff of this office have faithfully enforced the law, supported our law enforcement partners, and protected our fellow citizens, and I could not be more proud of the work that they have accomplished.”
Schneider continued: “I’m extremely pleased to leave this office in the hands of one of the finest federal prosecutors I’ve ever known, Saima Mohsin. Saima is a dynamic trial lawyer and a talented manager. And, as the first woman, immigrant, Muslim United States Attorney in American history, her service is truly historic. Saima will be an outstanding representative and defender of our community as the Acting United States Attorney.”
Saima Mohsin will immediately assume office as Acting United States Attorney, as provided for under the Vacancies Reform Act. Mohsin has served as the First Assistant United States Attorney—a non-political position— since March 2018. She is a career prosecutor, having served in the U.S. Attorney’s Office since 2002, and prior to that as a Deputy New Jersey Attorney General and an Assistant District Attorney in Manhattan.
Mohsin stated, “It is a great honor to serve the citizens of the Eastern District of Michigan as Acting United States Attorney. I am deeply committed to fulfilling our core mission to faithfully enforce the law and seek justice for all.”
Schneider has served as the chief federal law enforcement official in Eastern Michigan since Attorney General Jeff Sessions appointed him on January 5, 2018. In May 2018, the judges of the United States District Court voted to continue his term in office. In January 2, 2019, following his nomination by President Trump, the United States Senate unanimously confirmed his appointment.
While in office, Schneider hired more than 100 federal employees and contractors, including approximately 40 Assistant United States Attorneys, which is around one-third of the office’s attorneys. Approximately 70 percent of those new employees have been women. Schneider said, “We’ve been incredibly successful in the last three years in hiring outstanding public servants, and at the same time we’ve advanced and strengthed the role of women in the legal profession.”
During Schneider’s tenure, the office investigated and prosecuted several high-profile civil and criminal cases, including:
● The filing of an anti-corruption and anti-fraud civil lawsuit against the UAW, and a proposed consensual resolution to bring independent oversight to the union and eliminate corruption among its leadership;
● The largest investigation and prosecution of corrupt auto company executives and UAW officials in American history, which has thus far led to the convictions of 15 persons for fraud and corruption crimes, including two UAW International Presidents;
● The busiest docket of public corruption cases in the United States, including fraud, bribery, and pay-to-play schemes centering around corrupt public officials in Macomb County;
● Obstruction of justice charges against Macomb County Prosecuting Attorney Eric Smith for attempting to get a friend and two assistant prosecutors to make false statements to federal law enforcement officers and a federal Grand Jury;
● In coordination with the U.S. Attorney’s Office for the Western District of Michigan, the investigation of six men who have been charged federally with conspiring to kidnap Michigan Governor Gretchen Whitmer;
● The country’s first indictment of a U.S. citizen who was arrested on a battlefield in Syria while fighting in support of ISIS, a designated foreign terrorist organization;
● The largest civil settlement in American history arising out of unlawful drug diversion in a major health system, resulting in a $7.75 million settlement payment by McLaren Health Care Corporation; and
● The trial, conviction, and life sentence of a Canadian man who stabbed and attempted to kill a Flint Bishop Airport police officer in an act of violent jihad inspired by the ideology of Al Qaeda and Osama bin Laden.
In April 2020, Attorney General William Barr named Schneider to lead a nationwide effort to review state and local policies to ensure that civil liberties remain protected during the COVID-19 pandemic. That effort resulted in dozens of court victories and policy reforms across the country to preserve Americans’ civil rights, including their right to worship and their right to be free from arbitrary, irrational state restrictions.
On May 29, 2020, upon the Justice Department’s filing of a Statement of Interest in a case challenging Michigan Governor Gretchen Whitmer’s pandemic-related orders, Schneider stated, “As important as it is that we stay safe during these challenging times, it is also important to remember that we do not abandon our freedoms and our dedication to the rule of law in times of emergency.”
Schneider, a graduate of the University of Michigan Law School and Michigan State University’s James Madison College, had previously served as: Chief Deputy Attorney General for the State of Michigan; Chief Legal Counsel for the Michigan Department of Attorney General; Chief of Staff and General Counsel for the Michigan Supreme Court; an Assistant United States Attorney; Senior Advisor and Assistant General Counsel in the White House Budget Office; and an attorney in private practice.
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U.S. Attorney’s Office, the Eastern Panhandle Empowerment Center, and Monongalia County QRT offer trainingRead the Press Release
MORGANTOWN, WEST VIRGINIA – A virtual human trafficking training for Quick Response Teams will be held next week as a part of National Human Trafficking and Slavery Prevention Month, U.S. Attorney Bill Powell announced.
The U.S. Attorney’s Office has partnered with the Eastern Panhandle Empowerment Center and the Monongalia County Quick Response Team to offer “Human Trafficking 101: Identifying and Helping Victims.” The goal of the training is to convey the reality and seriousness of human trafficking crimes and allow for those responding to overdoses in our communities to recognize the signs of human trafficking and report it.
The training will provide practical guidance to distinguish trafficking from other crimes and offer a comprehensive overview of the state and federal anti-trafficking laws. It will also provide information on the identifying and triage of trafficking victims, and more on initiating trafficking investigations.
The two-hour virtual training hosted by the Monongalia County QRT will include presentations from Assistant U.S. Attorney Andrew Cogar of the Northern District of West Virginia and Katie Spriggs, the Executive Director of the Eastern Panhandle Empowerment Center. The training will also offer a question and answer discussion.
The event will be held Tuesday, January 26 at 1:00 p.m. More than 100 attendees are expected, which includes law enforcement, EMS, and service providers. The event is free for those registered.
In 2019, the National Human Trafficking Hotline received 98 calls regarding human trafficking in West Virginia. Those calls resulted in the identification of 153 victims, 21 traffickers, and five trafficking businesses. The majority of those cases were sex trafficking cases.
For more information on the training and to request participation, call 304-234-0100.
For more information on human trafficking, go to the West Virginia Human Trafficking Task Force website at https://stophumantraffickingwv.org/
U.S. Attorney’s Office Returns More Than $235 Million in Fiscal Year 2020 to Crime Victims and the United States GovernmentRead the Press Release
BOSTON – U.S. Attorney Andrew E. Lelling announced today that the District of Massachusetts collected more than $235 million in criminal and civil actions in Fiscal Year 2020. Of this amount, $208,282,537 was collected in civil actions, including $77,933,472 in restitution for crime victims, and $27,194,175 was collected in criminal actions.
“I’m proud of the work the civil and criminal prosecutors in my office have done to secure more than $235 million in collections, restitution to crime victims, and asset forfeitures, in 2020 alone,” said U.S. Attorney Andrew E. Lelling. “The District of Massachusetts has long been a leader in financial recoveries in the areas of health care fraud, securities fraud and civil settlements, and we will continue to aggressively pursue collections that return money to victims of crime and U.S. taxpayers, and deprive criminals of their ill-gotten gains.”
The 94 U.S. Attorney’s Offices jointly collected over $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2020. The $8,064,931,805 in collections in FY 2020 represents nearly four times the appropriated $2.25 billion budget for the 94 U.S. Attorneys’ Offices.
The largest civil collections were from affirmative civil enforcement cases by the Office’s Affirmative Civil Enforcement Unit, which recovered government money lost to fraud or other offenses. Settlements with three pharmaceutical companies for illegal use of third-party foundations as conduits to pay kickbacks account for the office’s largest civil collections. In September 2020, Gilead Sciences paid $97 million and Novartis paid $51 million in July 2020, and Sanofi-Aventis paid $11.85 million in February.
In addition to these civil and criminal collections, in Fiscal Year 2020 the Office’s Asset Recovery Unit was responsible for the collection of $77,933,472 in restitution for crime victims, as well as forfeiture of $22,449,306 in criminal proceeds or other property involved in crimes. The Asset Recovery Unit locates, seizes, and forfeits proceeds of crime, including health care fraud, securities fraud, mail and wire fraud, drug trafficking, as well as money and property involved in money laundering. The Unit pursues forfeiture of ill-gotten gains both domestically and abroad and works closely with units across the Office and its law enforcement partners to ensure that crime doesn’t pay. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
U.S. Attorney’s Office Announces Findings of Investigation Concerning Tribal Ranger-Involved Shooting on Southern Ute Indian ReservationRead the Press Release
DURANGO – After a thorough investigation, the United States Attorney’s Office for the District of Colorado has concluded that there is no legal basis to pursue federal criminal charges against a Southern Ute Tribal Ranger who fatally shot George Sands on November 24, 2020, on the Southern Ute Indian Reservation because the Tribal Ranger’s actions were justified under the legal doctrine of self-defense. The U.S. Attorney’s Office announced the decision today, after notifying the family of Mr. Sands.
“The loss of any life is tragic. And when it comes at the hands of law enforcement, the FBI and my office are committed to thoroughly investigating and reviewing such incidents,” said U.S. Attorney Jason Dunn. “Here, the evidence demonstrates that the Tribal Ranger’s actions were clearly justified under the self-defense doctrine. We appreciate the public’s patience while we investigated this matter and its understanding that, during the pendency of an investigation, we are limited by both ethical and legal considerations as to what information we can release.”
In this matter, both the location of the shooting on tribal land and the identity of one of the parties as an Alaskan Native gave the United States exclusive jurisdiction to consider whether federal criminal charges were appropriate. The FBI performed the investigation and the results were reviewed by the U.S. Attorney’s Office. The evidence included a civilian witness account, photographs, recorded radio communications of law enforcement, an autopsy report, a report from responding paramedics, and reports from the La Plata County Sherriff, the Southern Ute Police Department, the Southern Ute Tribal Rangers, and the Colorado State Patrol.
In summary, the evidence demonstrates that on November 24, 2020, a Tribal Ranger approached a SUV parked near Weaselskin Bridge to investigate potential trespassing on tribal land. Mr. Sands was in the driver seat of the SUV and a female party was in the passenger seat. During the interaction, Mr. Sands got out of the SUV. Mr. Sands orally provided a false name and date of birth. The Tribal Ranger contacted dispatch and learned that the false name was a known alias of Mr. Sands. Dispatch relayed to the Tribal Ranger that Mr. Sands had an active felony warrant for his arrest. Mr. Sands ran back to the SUV, while the Tribal Ranger pursued him. Mr. Sands unsuccessfully attempted to draw a large knife strapped to the door of the SUV. Mr. Sands then retrieved a realistic replica handgun from the SUV (photo below).
Unlike other replica or toy guns, the replica gun brandished by Mr. Sands did not have an orange end cap or other markings that would make it easily distinguishable from a real firearm. As Mr. Sands moved the replica gun towards the Tribal Ranger, the Tribal Ranger fired his service weapon six times, killing Mr. Sands.
Based on the available evidence, the U.S. Attorney’s Office concluded that no criminal charges against the Tribal Ranger are warranted. Specifically, the Tribal Ranger’s use of lethal force against Mr. Sands was uniformly consistent with self-defense. Under federal law, a person may resort to self-defense if he or she reasonably believes that he or she is in imminent danger of death or great bodily harm, thus necessitating an in-kind response.
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Two Utqiagvik Residents Indicted on Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Bryron Shontell McFadden, 41 and Roberta Ruth Sielak, 30, of Utqiagvik were indicted on drug trafficking charges, conspiracy to distribute controlled substances and attempt to possess controlled substances with intent to distribute.
The criminal complaint alleges that on or about January 12, U.S. Postal Inspectors identified a suspicious package mailed from Arizona to Utqiagvik resident Roberta Sielak. On January 13, 2021 the package was intercepted in Anchorage by U.S. Postal Inspection Service (USPIS). Further inspection of the package revealed approximately 200 blue pills hidden inside. Preliminary test results, subject to laboratory confirmation, indicated the pills contain fentanyl.
Postal inspectors state they installed a tracking device in the package and delivered it to Sielak’s mailbox. Sielak retrieved the package, placed it in a vehicle and drove to McFadden’s residence. McFadden took the package from Sielak’s vehicle and went into his residence, and allegedly opened the package. Upon realizing there was a tracking device, he fled the residence with the tracking device and disposed of it in a nearby dumpster. McFadden was located by the North Slope Borough Police Department and taken into custody. Sielak was located in her vehicle by Borough police and detained for questioning.
If convicted, Sielak and McFadden may be sentenced to up to 40 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Postal Inspection Service (USPIS), the North Slope Borough Police Department, and Alaska's High Intensity Drug Trafficking Area (HIDTA) Anchorage Airport Interdiction Team conducted the investigation leading to the indictment in this case. The Anchorage Airport Interdiction Team is a Trooper-led drug interdiction task-force staffed by investigators and agents from the Alaska State Troopers, Anchorage Police Department, North Slope Borough Police Department, Anchorage Airport Police Department, Sand Point Police Department, DHS – Homeland Security Investigations, US Postal Inspection Service, Drug Enforcement Administration, and the US Coast Guard Investigative Service. This case is being prosecuted by Assistant U.S. Attorney Dan Doty.
This case is part of the U.S. Attorney’s Office, District of Alaska Rural Alaska Anti-Violence Enforcement Network (RAAVEN) Initiative’s ongoing efforts to increase engagement, coordination, and action on public safety in Alaska Native communities.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Texan sent to prison for involvement in distribution of child pornography via DropboxRead the Press Release
GALVESTON, Texas - A 51-year-old resident of Angleton has been ordered to federal prison following his convictions of receipt, possession and distribution of child pornography, announced U.S. Attorney Ryan K. Patrick.
Joe Dean Spradlin pleaded guilty March 11, 2020.
Today, U.S. District Judge Jeffrey V. Brown ordered him to serve a total of 155 months in federal prison. Following his prison term, Spradlin will serve 10 years on supervised release, during which time he will have to comply with numerous conditions that restrict his access to children and the internet. He will also be required to register as a sex offender.
In 2017, law enforcement learned of a Dropbox account that contained what was suspected to be child exploitation material. The investigation revealed some of the material in that account depicted nude, minor children exposing their genitals and engaged in sexual activity.
Authorities traced the account to an IP address registered to a residential address in Angleton. Spradlin was living there.
Law enforcement executed a search warrant and seized Spradlin’s HP laptop, which was found to contain thousands of images and thousands of videos of child pornography. Spradlin admitted to acquiring child exploitative material over Tumblr and Kik as well as storing that material on Dropbox. He even paid extra to increase the storage capacity of his account.
Spradlin’s collection included videos of unusual length. One video was over two hours long.
Spradlin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations -Galveston conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force and Pearland Police Department.
Assistant U.S. Attorneys Sherri Zack and Stephanie Bauman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Terlingua Man Convicted of Multiple Obscenity Crimes Involving ChildrenRead the Press Release
WASHINGTON – A Texas man was convicted by a federal jury today for operating a website dedicated to publishing writings that detailed the sexual abuse of children.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Gregg N. Sofer, U.S. Attorney of the Western District of Texas; and Luis M. Quesada, Special Agent in Charge of the FBI’s El Paso Field Office made the announcement.
After a three-day trial, Thomas Alan Arthur, 64, of Terlingua, was convicted of three counts of trafficking in obscene visual representations of the sexual abuse of a child, five counts of trafficking in obscene text stories about the sexual abuse of children, and one count of engaging in the business of selling obscene matters involving the sexual abuse of children.
According to trial evidence, Arthur began operating the Mr. Double website in 1996, and began charging members for access to the site in 1998. The website was dedicated to publishing writings that detail the sexual abuse of children, including the rape, torture, and murder of infants and toddlers. The evidence at trial showed that all submissions for publication were reviewed and approved by Arthur before he posted them on the site. Some of the author pages contained drawings depicting children engaged in sexually explicit conduct. Evidence at trial showed that the website was Arthur’s sole source of income for more than 20 years. The site was taken offline in November 2019 when the FBI executed a search warrant at his residence near Terlingua, where Arthur administered the site. Pursuant to our Mutual Legal Assistance Treaty with the Netherlands, additional evidence was obtained from the server in the Netherlands where the site was hosted.
Sentencing is scheduled for April 19, 2021.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Monica Morrison of the Middle District of Tennessee, and Assistant U.S. Attorney Fidel Esparza of the Western District of Texas are prosecuting the case with assistance from the Justice Department’s Office of International Affairs.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, and Brewster County Sheriff’s Office investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Tenderloin Drug Dealer Sentenced to over 11 Years in Prison for Possessing A Firearm in Furtherance of Drug TraffickingRead the Press Release
SAN FRANCISCO – Jontae Carlos Sandifer was sentenced today to 138 months in prison for possessing a firearm in furtherance of a drug trafficking crime, possession with the intent to distribute heroin, and being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Patrick Gorman. The sentence was handed down by the Honorable Vince Chhabria, United States District Judge.
Sandifer, 40, of Patterson, California, pleaded guilty to the charges on March 10, 2020. As part of the guilty plea, Sandifer admitted in a plea agreement that on August 12, 2019, he was in an argument with a man in the Tenderloin neighborhood of San Francisco and pulled a semiautomatic handgun out of the trunk of his car. He fired one shot across Leavenworth Street in the man’s direction. The bullet missed the man. Sandifer further admitted that he possessed twenty-five plastic twists of heroin found in his nearby parked car and that he intended to distribute that heroin. Sandifer also admitted that he possessed fourteen additional rounds of ammunition with the pistol he fired and that he possessed the weapon and ammunition to further his intended heroin distribution. In addition, Sandifer admitted he knew he previously had been convicted of multiple felony offenses which made it illegal for him to possess firearms or ammunition.
The government filed a sentencing memorandum asserting additional facts providing a broader description of Sandifer’s crimes. The government stated Sandifer fired the shot toward the man at approximately 6:45 p.m. while the man was crossing the street near the corner of Leavenworth Street and Golden Gate Avenue, a time when pedestrians were passing by. The bullet missed the man and all the passers-by, and it struck a building. Inside the building, children were practicing for an upcoming play. The building where the children were practicing is the home of a non-profit tutoring facility for under-resourced students and, according to the government, the bullet struck the outside and narrowly missed hitting the ground floor window. The government’s memorandum further describes that Sandifer left the scene immediately but police shortly detained him. The police located and searched his parked car.
“The Tenderloin belongs to the families, businesses, workers, and others who are fostering a community in this wonderful neighborhood,” said U.S. Attorney Anderson. “For too long drug dealers and users have descended on the Tenderloin as a convenient place to commit their crimes. The Tenderloin desperately needs vigorous prosecutions to carry forward the work of professional law enforcement. We will continue to do all we can in federal court.”
“ATF is committed to making the Tenderloin a safer place for everyone,” said Special Agent in Charge Gorman, San Francisco Field Division, ATF. “Protecting the public is at the core of ATF’s mission. The San Francisco Field Division will continue to work diligently with our partners to eradicate the illegal possession and use of firearms. This investigation is an example of the dedication and importance ATF and our partners place in honoring our commitment to this community.”
A federal grand jury indicted Sandifer on October 10, 2019. He was charged with possession with intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C); possessing a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A); and being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g). He pleaded guilty to all counts. Sandifer has been in custody since August 12, 2019, and will begin serving his sentence immediately.
In addition to the prison term, United States District Judge Chhabria also ordered Sandifer to serve a three-year period of supervised release.
Assistant U.S. Attorney Noah Stern is prosecuting the case with the assistance of Marina Ponomarchuk and Ralph Banchstubbs. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the San Francisco Police Department.
This investigation and prosecution is part of the Federal Initiative for the Tenderloin, a multi-agency effort spearheaded by the U.S. Attorney’s Office focusing on fighting crime in the Tenderloin neighborhood of San Francisco.
Storm Lake Man Sentenced to Federal Prison for Meth and Gun ChargesRead the Press Release
A man who conspired to distribute methamphetamine while possessing guns was sentenced on January 19, 2021, to more than 10 years in federal prison.
Jacob Hernandez, 27, from Storm Lake, Iowa, received the prison term after a September 16, 2020, guilty plea to conspiracy to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
In a plea agreement, Hernandez admitted that from January 2020 through March 2020, he was involved in a conspiracy that distributed more than 4 pounds of methamphetamine in the Storm Lake and Fonda areas. In February and March 2020, law enforcement conducted three controlled drug purchases of methamphetamine from Hernandez. In March 2020, law enforcement officers executed a search warrant at Hernandez’s residence. Ultimately, officers seized two guns, approximately 2 ounces of methamphetamine, over $5,000 in cash, drug trafficking materials, 2 bullet proof vests, marijuana, drug ledgers, and various ammunition.
Hernandez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hernandez was sentenced to 125 months’ and 29 days’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Iowa Department of Narcotics Enforcement, Buena Vista County Sheriff’s Office, Clay County Sheriff’s Office, Sac County Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3029. Follow us on Twitter @USAO_NDIA.
St. Thomas Man Sentenced to Federal Prison for Possessing a Machine Gun, Following Foot Chase and Seizure of $ 800,000 in CurrencyRead the Press Release
St. Thomas, USVI – Gretchen C.F. Shappert, United States Attorney for the District of the Virgin Islands, announced today that John Burgos was sentenced to 21 months in prison and two years of supervised release for possessing a machine gun in violation of federal law. The defendant was also ordered to forfeit the weapon and all interest in the nearly $ 800,000 that was seized on the day of his arrest.
According to court documents, on February 21, 2020, federal agents acting in an undercover capacity made numerous phone calls to an individual later identified as John Burgos. The purpose of the calls was to negotiate the transfer of money proceeds of suspected drug trafficking, in the amount of almost $800,000. On February 24th, federal agents met up with the defendant Burgos at a predetermined location on St. Thomas. The defendant was completing the monetary transaction when he saw the agents and fled. A lengthy foot chase ensued, and the defendant was arrested by federal agents in the Estate Tutu area of St. Thomas.
Agents recovered a 30-round extended magazine in Burgos’ pocket. Nearby, under a vehicle, agents recovered a loaded Glock pistol equipped with an “auto sear,” a conversion device that renders a pistol fully automatic (i.e., a machinegun). Agents seized the money, the ammunition, and the firearm equipped with the auto sear. Following his arrest, the defendant admitted he possessed the Glock automatic machine gun and ammunition.
This case was investigated by the Drug Enforcement Administration and Homeland Security Investigations. It was prosecuted by the Assistant United States Attorneys Kyle Payne and Nathan Brooks.
U.S. Attorney Shappert noted that proceeds of criminal activity administratively forfeited by federal law enforcement are routinely directed to local law enforcement agencies, such as VIPD, for use in their law enforcement work.
Sobieski Man Sentenced for Distribution of Child PornographyRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 21, 2021, Jacob J. Salewski (age: 24) of Sobieski, Wisconsin, was sentenced to 60 months’ imprisonment for his distribution of child pornography.
In September of 2019, the Wisconsin Department of Justice, Division of Criminal Investigation (DCI) received leads from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the National Center for Missing and Exploited Children (NCMEC). Based on those leads, DCI investigators determined that an online user known as “susandoll69” and “ollie9615” distributed child pornography using a popular instant messaging service. Investigators tracked those usernames’ online activities and determined that the distribution was occurring at a residence in Sobieski, Wisconsin. Further investigation determined that Jacob J. Salewski was the individual known online as “susandoll69” and “ollie9615.”
Senior U.S. District Judge William C. Griesbach called Salewski’s actions serious and called for appropriate punishment. In addition to the 60 months of imprisonment, Salewski will spend seven years on supervised release and will be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, with the assistance of the Oconto County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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414-297-1700
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Serial Bank Robber Sentenced in Maryland to 14 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Duane Burton, age 44, of Baltimore, to 14 years in federal prison, followed by three years of supervised release, for three bank robberies committed in Maryland and Delaware, as well as for violating his supervised release for two previous federal bank robbery convictions.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Lisa D. Myers of the Howard County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; and Colonel Melissa Zebley, Superintendent of the Delaware State Police.
According to Burton’s plea agreement, between December 2018 and February 2019, he robbed one bank in Delaware and two banks in Maryland. At the time of the robberies, Burton was on supervised release for two previous bank robbery convictions. Burton admitted that he robbed a bank in Newark, Delaware, on December 26, 2018; a bank in in Elkridge, Maryland on February 8, 2019; and a bank in Baltimore on February 14, 2019.
As detailed in his plea agreement, in each robbery Burton approached the teller and announced the robbery, demanding money and “no dye packs.” The victim tellers each complied with Burton’s demands and Burton stole a total of more than $7,000. In the Baltimore robbery, the victim teller included a GPS tracker in the cash, which Burton located and discarded before he fled the bank.
On February 27, 2019, law enforcement executed a search warrant at Burton’s residence and recovered shoes that matched the shoes worn by the robber in the surveillance video from the February robberies. Burton was arrested.
United States Attorney Robert K. Hur praised the FBI, the Howard County Police Department, the Baltimore Police Department, and the Delaware State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
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Sapulpa Man Sentenced for Sexually Abusing Two Children and Sharing Photographs of the Abuse on Messaging AppRead the Press Release
A man who created and advertised child pornography depicting him sexually abusing two children was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge John E. Dowdell sentenced Ryan David Miller, 34, of Sapulpa, to 60 years in federal prison to be followed by a lifetime of supervised release. Miller previously pleaded guilty to sexual exploitation of a child by a parent, advertising child pornography, distribution of child pornography, and possession of child pornography on Aug. 6, 2020.
During today’s hearing, the children’s Guardian ad Litem told the Court that both children had expressed sheer terror at the thought of having any contact with Miller in the future.
“Pedophiles like Ryan Miller belong in prison where they no longer have access to children. Miller not only molested two young children, he boasted about it online and shared images of the abuse to an online group frequented by pedophiles. Fortunately, an undercover FBI agent was in search of child predators that day and discovered Miller’s heinous crimes,” said U.S. Attorney Trent Shores. “I’m thankful for Assistant U.S. Attorneys Chris Nassar and Edward Snow who take on these challenging cases and fight for the child victims.”
According to a criminal complaint and affidavit filed in the case, an undercover FBI agent was on a Kik messaging group when the agent received a message from Ryan Miller on Feb. 3, 2020. During their conversation Miller explained in detail sexual abuse he had committed against a 10-year-old male and an eight-year-old female and provided child pornography images of the female victim. On February 4, agents executed a search warrant at Millers home in Sapulpa. The court documents stated that Miller admitted to sexually abusing the male victim at least 20 times and the female victims at least four times. He also admitted to taking at least 50 images of the children engaged in sexually explicit behavior.
Miller will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The FBI, Broken Arrow Police Department and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Christopher J. Nassar and Edward Snow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Russian Hacker Pleads Guilty to Administering a Website that Catered to CriminalsRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – January 21, 2021
SAN DIEGO – Kirill Victorovich Firsov, a Russian citizen, pleaded guilty in federal court today to a cybercrime, admitting that he was the administrator of a website that catered to cyber criminals by virtually selling items such as stolen credit card information, other personal information and services to be used for criminal activity.
According to the plea agreement, Firsov was well-compensated as the administrator of DEER.IO, an online platform which catered to cyber criminals. DEER.IO was a Russian-based platform that allowed criminals to set up cyber storefronts and sell illegal products or services. DEER.IO started operations as of at least October 2013, and, as of March 2020, had approximately 3,000 shops with sales exceeding $17 million.
DEER.IO offered a turnkey online storefront design and hosting platform, from which cybercriminals could advertise and sell their products, such as harvested credentials, hacked servers, and services, such as assistance performing a panoply of cyber hacking activities. As detailed above, a criminal could simply “sign up,” “configure wallets to receive funds,” “upload products,” and “get money.”
Once the criminal paid to set up their store on the DEER.IO platform, the site then guided the newly-minted shop owner through an automated set-up to upload the products and services on offer through the shop and configure crypto-currency wallets to collect payments for the purchased products and/or services. A cybercriminal who wanted to sell contraband or offer criminal services through DEER.IO could purchase a storefront directly from the DEER.IO website for 800 Rubles (approximately $12.50) per month. The monthly fee was payable by Bitcoin or a variety of online Russian payment methods such as WebMoney, a Russian based money transfer system similar to PayPal.
The shop owner had the option to purchase a storefront name linked to DEER.IO or one its subdomains, like DEER.ST, DEER.IS or DEER.EE (e.g., https://[SHOP NAME].deer.io, such as ONLYFB.DEER.IO, SHIKISHOP.DEER.IO and SELLACCSS.DEER.IS), or a custom name (e.g., https://[SHOP NAME], such as SQLBAZAR.SHOP and ISIS.RENTS.HOUSE), which directed the prospective buyer to the storefront infrastructure hosted on DEER.IO.
A cybercriminal who wanted to purchase from storefronts on the DEER.IO website could use a web browser to navigate to the DEER.IO domain, which contained a search function that allowed individuals to search a catalog for specific items or browse popular storefronts containing items to purchase. Any purchases were conducted using cryptocurrency, such as Bitcoin, or through Russian-based money transfer systems. For example, as reflected above, a cybercriminal could purchase stolen Uber accounts with associated credit card information from SHIKISHOP.DEER.IO. To make these purchases, the prospective buyer just needed to click on the cart on the right-hand side of the screen.
An initial scan through DEER.IO storefronts revealed thousands of compromised accounts posted for sale, including Personally Identifiable Information (PII) files containing full U.S. Social Security Numbers, dates of birth and victim addresses. Many of these victims were located in Europe and the United States, including victims in San Diego.
Firsov is set for sentencing before Judge Cynthia Bashant on April 12, 2021.
“This was one-stop shopping for criminals,” said U.S. Attorney Robert Brewer. “Cybercrime is one of the most pervasive threats facing our country. Data is being stolen and sold on the Dark Web every day, and we are devoting significant resources to combatting this serious problem.” Brewer commended the excellent work of Assistant U.S. Attorney Alexandra F. Foster and the FBI agents on this case.
“The internet allows cybercriminals and our adversaries to attack Americans in new and unexpected ways. Therefore, the FBI is constantly pivoting to staying ahead of the evolving nature of cyber threats,” said Suzanne Turner, Special Agent in Charge of FBI's San Diego Field Office. “The seizure of the DEER.IO website and conviction of Firsov is an example of the FBI cyber program’s investigative prowess and jurisdictional reach in order to identify, locate and bring to justice anyone who attempts to profit from harm to U.S. persons, businesses and infrastructure.”
If victimized in a cyber security incident, the FBI encourages companies to immediately contact the FBI. Specialized cyber agents will work with companies to protect company information and the personal data of its customers. Please contact the FBI San Diego's cyber program by calling our field office at (858) 320-1800 or submitting tips at Internet Crime Complaint Center (IC3).
DEFENDANT Case Number 20cr1182-BAS
Kirill Victorovich Firsov Age: 29 Moscow, Russia
SUMMARY OF CHARGE
Unauthorized Solicitation of Access Devices (18 U.S.C. § 1029(a)(6))
Maximum Penalty: Ten years in prison, $250,000 fine.
INVESTIGATING AGENCY
FBI
Rhode Island Man Sentenced to Five Years in Prison for Distribution of Fentanyl and Fentanyl AnaloguesRead the Press Release
BOSTON – A Rhode Island man was sentenced yesterday in federal court in Boston in connection with his fentanyl and fentanyl analogue distribution activities in Rhode Island and Massachusetts.
Moises Rodrigues, 32, of Johnston, R.I., was sentenced by U.S. District Court Judge Allison D. Burroughs to 60 months in prison and four years of supervised release. In October 2020, Rodrigues pleaded guilty to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, 10 grams or more of acetyl fentanyl and carfentanil and three counts of distribution of fentanyl and/or acetyl fentanyl.
Rodrigues sold fentanyl and fentanyl analogues on five separate occasions and had a “runner”—co-defendant Robert Soucy—deliver the drugs for him on one occasion. According to the Drug Enforcement Administration, carfentanil is a synthetic opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which itself is 50 times more potent than heroin.
In May 2020, Soucy was sentenced by Judge Burroughs to 16 months in prison.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorney Lauren Graber of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Rhode Island Man Pleads Guilty to Federal Ammunition ChargeRead the Press Release
BOSTON – A Providence, R.I. man pleaded guilty today to illegal possession of ammunition.
Paul Marino, 57, formerly of New Bedford, pleaded guilty to being a felon in possession of ammunition. Marino was arrested and charged in September 2020. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 20, 2021.
On various dates in September 2019, Marino attempted to purchase a handgun and silencer from a federal agent acting in an undercover capacity. During a search of Marino’s home in New Bedford on Sept. 26, 2019, agents seized three 9mm handgun magazines and 277 rounds of 9mm ammunition from a closet in Marino’s bedroom. The ammunition was in a FedEx box addressed to “Vincent Amoroso” in Rhode Island and bearing a return address in Tennessee. Agents also seized counterfeit Virginia identification documents in the names of Vincent Amoroso and Christian Bennington, each of which bore Marino’s photograph, and an American Express card in the name of Christian Bennington.
Due to a prior federal conviction for wire fraud, Marino is prohibited from possessing firearms or ammunition.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of a $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The New Bedford Police Department provided assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Purported biotech executive charged with introducing misbranded drug into interstate commerce for distribution of “COVID-19 vaccine”Read the Press Release
Seattle - A Redmond, Washington, man who held himself out as a biotech expert was arrested today on a federal warrant charging him with introducing misbranded drugs into interstate commerce, announced U.S. Attorney Brian T. Moran. JOHNNY T. STINE, 55, claims to be Founder & President of North Coast Biologics. In a variety of online postings from as early as March 2, 2020, STINE claimed to have a COVID-19 vaccine that he offered to inject in customers for $400-$1000 each. STINE will appear in U.S. District Court in Seattle at 2:00 today.
“Untested, untried and potentially unsafe – this defendant was injecting people with an unknown substance claiming it was a vaccine for COVID-19,” said U.S. Attorney Brian T. Moran. “Preying on our fears in the midst of this pandemic is unconscionable. DOJ continues to investigate and prosecute these fraud cases.”
According to the criminal complaint unsealed today, in early March 2020, the Food and Drug Administration - Office of Criminal Investigation (FDA-OCI), was alerted to Stine’s posts on social media. An investigator made contact with Stine in an undercover capacity, and STINE represented that he had a COVID-19 vaccine for sale. STINE claimed that his main biotech effort was creating vaccines that attack cancer tumors. He indicated that he had used a similar method to develop his COVID-19 vaccine. On March 27, 2020, even as the undercover investigation was ongoing, FDA-OCI received a complaint from an area resident about STINE injecting a friend of the complainant with a “vaccine” for COVID-19. Just this month, January 2021, law enforcement was alerted that at least one person who had been “vaccinated” by STINE was in the hospital battling COVID-19.
In early April, investigators met with Stine in undercover roles. STINE represented to the agents that he traveled across the U.S. giving his vaccine. STINE indicated he would make a trip to Oregon and California to vaccinate family members of the undercover agents.
In late April, responding to complaints from the public, the Washington State Attorney General issued a cease and desist letter to STINE, telling him to stop making claims and offering his “vaccine” for COVID-19. Rather than be deterred, STINE indicated it had just increased demand for his injections which he now called “immunogen” instead of a vaccine. In June, STINE signed a Consent Decree with the Washington State Attorney General wherein he agreed not to promote or sell his COVID-19 vaccine.
Still, in August STINE again communicated with an undercover agent and traveled to Idaho to “vaccinate” the agent. Law enforcement contacted STINE in Idaho and seized the “vaccine.” Agents also executed a court-authorized search warrant on the Redmond warehouse where STINE claimed to conduct his research.
The investigation also revealed that STINE conducted a business preying on cancer patients selling them untested “vaccines” to battle their malignant tumors. That conduct, along with the COVID-19, vaccine is charged in a separate Information filed today in federal court.
“Unproven injectable vaccines purported to prevent or treat COVID-19, made from unknown substances under unknown conditions, present significant health risks in and of themselves. They also can lead consumers to make lifestyle choices that increase their actual risk of infection with COVID-19, or to delay or stop appropriate medical treatment,” said Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “The FDA will continue to investigate fraudulent COVID-19 treatments and bring to justice those who try to profit from the pandemic by offering unproven and illegally marketed coronavirus products.”
“The very idea that someone would prey upon fearful people seeking a COVID vaccine in the midst of a global pandemic is not only despicable, but potentially deadly behavior. Equally appalling is the exploitation of vulnerable cancer patients and their families, desperate for treatment,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “Snake oil salesmen, such as this, who endanger consumers should take this arrest as a stern warning. HSI, along with our law enforcement partners, remain dedicated to protecting the community from these criminals and the dangerous substances they sell.”
The criminal charges filed today are misdemeanor federal crimes, unrelated to the civil cease and desist letter and civil Consent Decree. The misdemeanors are punishable by up to one year in prison.
The charges contained in the complaint and Information are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FDA Office of Criminal Investigations, Homeland Security Investigations, and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Brian Werner who serves as the COVID-19 fraud coordinator for the U.S. Attorney’s Office.
Providence Man Indicted on Firearms Trafficking ChargeRead the Press Release
BOSTON – A Providence, R.I. man was indicted by a federal grand jury today on a firearms trafficking charge.
Chiweze Ihunwo, 24, previously of Randolph, Mass., was indicted on one count of engaging in the business of dealing in firearms without a license. Ihunwo was arrested and charged by criminal complaint in November 2020 and has been detained since.
According to charging documents, Ihunwo acquired numerous firearms in North Carolina and then re-sold them for a profit. In addition, Ihunwo allegedly made arrangements to sell firearms to a person who was soon thereafter arrested in connection with a June 23, 2020 shooting incident on I-95 in Providence, R.I. According to the charging documents, Ihunwo also made numerous social media posts referencing firearms or ammunition.
During a search of Ihunwo’s residence in Providence, an AK-style handgun and various rounds of ammunition were recovered.
The charge of dealing in firearms without a license carries a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Assistance was provided by the Randolph Police Department, the Providence Police Department and the Rhode Island State Police. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Police Officer Indicted for Theft of Firearms from Police Weapons Vault and Tampering with Multiple WitnessesRead the Press Release
SAN JUAN, Puerto Rico – On January 20, 2021, a federal grand jury returned an eight-count indictment charging William Cintrón Rivera, a.k.a. “El Kid”/“Kid” with the theft of 54 guns and thousands of rounds of ammunition, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. A federal grand jury further charged defendant Cintrón Rivera with tampering with multiple witnesses, by requesting that they provide false information to federal investigators. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation of the case.
According to the indictment, on July 17, 2019, in the District of Puerto Rico, defendant Cintrón Rivera stole 54 firearms from the Puerto Rico Police Bureau (PRPB), Guayama headquarters. At the time of the theft, defendant Cintrón Rivera was a police officer in the PRPB. In addition, the defendant is charged with the possession of six of the stolen firearms and thousands of rounds of ammunition.
In an effort to cover his crime, Cintrón Rivera attempted to intimidate and corruptly persuade M.T.A. and E.C.R. by requesting that they provide false information to federal investigators relevant to the theft, such as Cintrón Rivera’s whereabouts on the night of the crime.
Subsequently, on December 12, 2020, Cintrón Rivera also attempted to intimidate and corruptly persuade G.A.C. by requesting that she falsely provide information to federal investigators regarding (a) the nature and duration of their relationship; (b) Cintrón Rivera’s whereabouts during the timeframe of the theft; (c) the identity of an alleged informant; and (d) communications involving Cintrón Rivera and G.A.C., including payment for an alleged cell phone.
Assistant U.S. Attorney Luis A. Valentin and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendant faces up to 10 years in prison for each firearms count, and 20 years for each witness-tampering count.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Pittsburgh-area Man Sentenced for Supplying SCO Gang with DrugsRead the Press Release
PITTSBURGH, PA - A resident of suburban Pittsburgh, Pennsylvania, has been sentenced in federal court to five years' imprisonment and eight years' supervised release on his conviction of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Chadlin Leavy, 32.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock borough of Pittsburgh and identified several members and associates of a neighborhood-based street gang, self-titled "SCO" that were responsible for distributing controlled substances in Western Pennsylvania, including a defendant charged in a related case, Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Through the course of this investigation, the Court was informed that Leavy was identified as one of McFadden’s heroin and cocaine sources of supply. In April of 2019, law enforcement began intercepting communications over one of Leavy’s cell phones, which revealed that Leavy was conspiring with others, including co-defendants Marvin Porter, Larry Dandridge, Damien Franklin and Jared Eck, to possess with intent to distribute heroin, cocaine and marijuana in the Western District of Pennsylvania. Within that timeframe, Leavy conspired to distribute and distributed 585 grams of heroin, 1,526 grams of cocaine and 53 kilograms of marijuana.
The Court was advised that on several occasions, in March, April and May of 2019, law enforcement conducted surveillance in conjunction with intercepted communications and observed Leavy meeting with one of his co-conspirators to facilitate drug transactions. For example, on one occasion, the Court was informed that law enforcement stopped Leavy while he was in route to meet with his marijuana source of supply, Jared Eck, to purchase 25-30 pounds of marijuana from Eck for $30,000. Law enforcement located the $30,000 in the vehicle and seized it.
Additionally, the Court was advised that on June 12, 2019, law enforcement seized from Leavy’s residence a 2008 Mercedes Benz S550, $42,882, two pistols, one revolver and one Mossberg 500 shotgun, as well as related magazines and over 200 rounds of ammunition, high-end
jewelry, as well as several items used to facilitate his drug-trafficking activity.
In addition to the term of imprisonment and supervised release, the Court ordered the forfeiture of all of these items, including the $72,882.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Wolford. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Philadelphia Electrical Contractor Pleads Guilty to Tax Fraud, Theft of Union Benefit FundsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Donald Dougherty, 54, of Philadelphia, PA, entered a plea of guilty today before United States District Court Judge Michael M. Baylson. Dougherty, the owner of Dougherty Electric, Inc., (“DEI”), a well-established Philadelphia-based electrical contractor, pleaded guilty to one count of filing a false federal income tax return and one count of theft of employee benefit funds.
On November 25, 2020, Dougherty was charged by Indictment with multiple charges of bank fraud, tax fraud and theft from employee benefit plans. Also charged with tax fraud was Michael McKale, an accountant who worked for Dougherty. Under the plea agreement between Dougherty and the government announced today, in addition to pleading guilty to tax fraud and theft of union benefit funds, the defendant has agreed to pay $92,913 in taxes due to the Internal Revenue Service, arising from false business deductions for what were actually expenditures for Dougherty’s personal benefit. The defendant also agreed to pay $266,000 in restitution to the International Brotherhood of Electrical Workers (“IBEW”) Local Union 5 in Pittsburgh, arising from his failure to make $266,000 in contributions to Local 5’s employee benefit funds in violation of the collective bargaining agreement between DEI and Local 5 in Pittsburgh.
In 2007, Dougherty was charged, pleaded guilty, and imprisoned for filing false income tax returns, tax evasion, making an unlawful payment to a union official, theft of employee benefit funds, and related offenses. During today’s plea hearing, Dougherty agreed to pay all restitution still owed in this previous case.
“Donald Dougherty has a track record of trying to skirt the law and defraud hard-working individuals,” said First Assistant U.S. Attorney Williams. “But the government also has a track record of convicting Dougherty for his crimes. And we will continue to do just that with every criminal who attempts this kind of scheme.”
“Engaging in an elaborate scheme to willfully underreport taxable income is a felony,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Today, Donald Dougherty admitted he broke the law by cheating on his taxes. As we approach tax filing season, those who might consider filing false tax returns should be aware of the negative consequences; which could include being branded a felon for life and a lengthy prison sentence.”
The case was investigated by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Employee Benefits Security Administration branch of the Department of Labor, and is being prosecuted by Assistant U.S. Attorneys Paul L. Gray and Frank R. Costello, Jr.
Pascagoula Man Sentenced Under Project EJECT to over 3 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – Lawrence Lavoy Jackson, 36, of Pascagoula, was sentenced today by U.S. District Judge Sul Ozerden to 45 months in federal prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Jackson was also ordered to pay a $3,000 fine.
On September 2, 2019, Moss Point Police officers encountered Jackson in a vehicle parked in front of a store in Jackson County. The vehicle was running, with the reverse lights on, and Jackson appeared to be asleep at the wheel of the vehicle. The police tapped on the window several times to get Jackson to respond. The officer had Jackson step out of the vehicle and found a 9 mm pistol in his waist band and 7 rounds of ammunition. Jackson had previous felony convictions and was prohibited from possessing a firearm.
Jackson was indicted on September 2, 2019. He pled guilty before Judge Ozerden on October 21, 2020.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moss Point Police Department. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Orange County Man Sentenced to More Than 24 Years in Prison for Traveling to Engage in Sex with Minors and Production of Child PornographyRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 292 months in federal prison for travelling out of state to sexually abuse minors – including a 6-year-old girl – and for inducing minors to send him sexually explicit videos of themselves.
Daniel Seibert, 29, of Lake Forest, was sentenced by United States District Judge James V. Selna.
Seibert pleaded guilty in March 2020 to a three-count information charging him with production of child pornography, traveling to engage in illicit sex, and using a facility of commerce to induce a minor to engage in criminal sexual activity.
In the spring of 2019, Seibert traveled from California to Michigan to engage in illicit sexual conduct with a victim who was 6 years old. The victim’s mother attempted to render the victim unconscious by using over-the-counter drugs before having Seibert engage in sex acts with the victim, according to court documents. Images later recovered during a search depicted his abuse of the victim. The victim’s mother is facing multiple child sexual abuse charges in Oregon state court.
Seibert traveled to Utah in December 2018 and again in May 2019 to engage in illicit sexual conduct with a 14-year-old victim that he had met on the internet, he admitted in a plea agreement.
One victim recounted that Seibert asked her to send sexually explicit material, knowing she was a minor. She did so, and law enforcement later found in Seibert’s possession about 160 images and eight videos of child exploitation material of the victim.
This matter was investigated by Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorneys Daniel H. Ahn and Jake D. Nare of the Santa Ana Branch Office.
Ohio man admits to carjackingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Ashley Hubbs, of Paris, Ohio, has admitted to carjacking, U.S. Attorney Bill Powell announced.
Hubbs, 38, pled guilty today to one count of “Carjacking.” Hubbs admitted to using violence to steal a Honda CR-V in Lewis County in October 2016.
Hubbs faces up to 15 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Lewis County Sheriff Office; and the Weston Police Department and investigated.
U.S. Magistrate Judge Michael John Aloi presided.
North Texas Woman Sentenced to Federal Prison for Bankruptcy Fraud SchemeRead the Press Release
SHERMAN, Texas – A 47-year-old Arlington, Texas woman has been sentenced to federal prison for a bankruptcy fraud scheme in the Eastern District of Texas announced Acting U.S. Attorney Nicholas J. Ganjei today.
Cotriena Machelle Embers pleaded guilty on August 10, 2020 to bankruptcy fraud, wire fraud and aggravated identity theft and was sentenced to 42 months in federal prison today by U.S. District Judge Amos Mazzant. The judge left open the possibility of ordering restitution to the identity theft victim in the case.
According to evidence presented in court, beginning in August 2017, Embers engaged in a scheme to defraud an apartment complex where she resided by falsely filing a bankruptcy petition using the name and social security number of a third party, without that person’s knowledge or authorization. The bankruptcy court ultimately discovered this fraudulent representation and ordered Embers to appear and explain her actions. The United States Trustee’s Office, which is charged with overseeing the integrity of bankruptcy cases in the federal courts, offered evidence in the bankruptcy case about what Embers had done and referred the matter to the U.S. Attorney’s Office and the FBI for investigation. After investigation by the FBI, a federal grand jury indicted Embers in 2019, charging her with bankruptcy fraud, wire fraud, and aggravated identity theft.
“It is crucial that proceedings in bankruptcy cases in federal court are carried out with integrity. The United States Attorney’s Office is determined to prosecute individuals who undermine these cases by making false statements to the bankruptcy judge and parties” said Acting U.S. Attorney Nicholas Ganjei. “We appreciate the work of the U.S. Trustee in investigating and referring these cases for prosecution to the U.S. Attorney and the FBI, and appreciate the valuable work done by the FBI in this investigation.”
This case was investigated by the U.S. Trustee’s Office and the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
New Haven Man Sentenced to 57 Months in Federal Prison for Illegally Possessing 2 HandgunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS BARNES, also known as “Buddha,” 29, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer to 57 months of imprisonment, followed by three years of supervised release, for illegally possessing two firearms.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, on October 12, 2019, Hamden Police arrested Barnes after they found him in possession of a Taurus Millennium G2 9mm handgun and a Springfield XD-40 .40 caliber handgun with an obliterated serial number.
Prior to October 2019, Barnes was convicted in state court of carrying a pistol without a permit, sale of illegal drugs, and robbery in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Barnes has been detained since his arrest. On July 9, 2020, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Federal Bureau of Investigation and the Hamden Police Department. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
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 neighborhoods safer for everyone.
Michigan man charged with possession with intent to distribute more than 1,000 THC vape cartridgesRead the Press Release
Cleveland, Ohio – Acting U.S. Attorney Bridget M. Brennan announced today that a federal indictment charging Adrian Joseph-Todd, age 25, of Okemos, Michigan, with one count of possession with intent to distribute tetrahydrocannabinols was unsealed this week following the arrest of the defendant.
“There is a well-known and documented connection between the consumption of THC vape cartridges and significant respiratory health issues that could cause lasting harm or even death,” said Acting U.S. Attorney Bridget M. Brennan. “These products must be taken seriously, and dealers of these illegal cartridges must be held accountable due to the potentially life-threatening health conditions they may cause.”
On September 20, 2019, it is alleged that the defendant drove from Michigan to Cleveland, Ohio, with over 1,000 THC vape cartridges in his vehicle. The defendant allegedly intended to sell the vape cartridges in the Northern District of Ohio. In October of 2019, the Food and Drug Administration warned the public to stop using vaping products containing THC amid more than 1,000 reports of lung injuries—including some resulting in deaths—following the use of vaping products.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The matter was investigated by the FDA Office of Criminal Investigations in conjunction with the Ohio Attorney General’s Organized Crime Commission Major Crimes Task Force which consists of the Cuyahoga County Sheriff’s Department, Cuyahoga County Prosecutor’s Office, FDA OCI, U.S. Postal Inspection Service and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Aaron P. Howell.
Michigan Man Sentenced to 15 Months in Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today that Terry Alan Blackmon, Jr., 34, of Michigan, was sentenced to 15 months in federal prison for distribution of heroin.
“Another out of state heroin dealer has been sentenced to prison for peddling poisons in Huntington,” said United States Attorney Mike Stuart. “We have maintained our focus on ridding our communities of drug dealers like Blackmon.”
Blackmon previously pled guilty and admitted that on September 24, 2019, he distributed approximately 2 grams of heroin to a confidential informant. This distribution of heroin occurred in controlled buy at a residence at 523 6th Street in Huntington.
Stuart commended the investigative efforts of the FBI’s Transnational Organized Crime (TOC) Task Force, the Cabell County Sheriff’s Office, the Federal Bureau of Investigation, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00290.
Follow us on Twitter: SDWVNews and USAttyStuart
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Methamphetamine trafficking sends Box Elder man to prisonRead the Press Release
GREAT FALLS — A Box Elder man who admitted possessing methamphetamine for distribution after leading law enforcement officers on a high-speed chase on the Rocky Boy’s Indian Reservation was sentenced today to seven years and eight months in prison followed by five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Kyle Frank Russette, 26, pleaded guilty on Sept. 24, 2020 to possession with intent to possess meth.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said that on Jan. 16, 2020, a Chippewa Cree Law Enforcement officer responded to a call to check on a vehicle that was parked and running outside of a residence. The officer found Russette asleep behind the wheel of a running pickup truck. Russette did not comply with directions to roll down his window or open his door, and a passenger exited the truck. While the officer returned to his vehicle to use the radio, Russette drove across a field and onto a road. Russette then led law enforcement on a high-speed pursuit, leaving the reservation and leading officers down snowy dirt roads. During the pursuit, an officer saw the driver’s door of the truck open and a handgun appear in the snow next to the vehicle. Russette eventually jumped from the vehicle as it careened into coulee and he was detained. He refused to provide his name, claimed to be someone else and had $668 in cash in a pocket.
Law enforcement recovered a 9mm loaded handgun from where Russette had thrown it from the truck. Officers executed a search warrant on the truck and found 164 grams of meth and a pistol. A confidential source identified Russette as a meth distributor on the reservation and had purchased the drug from Russette multiple times.
Assistant U.S. Attorney Ethan Plaut prosecuted the case, which was investigated by the FBI, Tri-Agency Drug Task Force and Chippewa Cree Law Enforcement Services.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 through 2019. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Marrero Men Sentenced After Pleading Guilty to Cocaine ConspiracyRead the Press Release
NEW ORLEANS –U.S. Attorney Peter G. Strasser announced that U.S. District Mary Ann Vial Lemmon sentenced GARLAND GULLORY (GUILLORY), age 41, and PHILLIP HELTON (P. HELTON), age 41, both of Marrero, Louisiana, to 188 months’ imprisonment and five years’ supervised release and a $100 special assessment, respectively, after both plead guilty to a one-count superseding bill of information charging them with conspiracy to distribute and possess with intent to distribute five hundred grams or more of cocaine hydrochloride and twenty-eight grams or more of cocaine base (“crack”).
According to court documents, in 2016, agents of the Drug Enforcement Administration (DEA) New Orleans identified GUILLORY and P. HELTON’S brother Derris (D. Helton) as cocaine traffickers in the New Orleans area. Using a confidential source, agents made three controlled purchases of crack from GUILLORY and D. Helton totaling more than one hundred fifty grams. Through telephone wiretaps, agents identified their co-conspirators, P. HELTON, Robert Gaines, and Exavier Gardner. During a monitored telephone call in July 2017, the Helton brothers discussed having Gaines supply an individual with a quantity of drugs.
On August 1, 2017, agents learned through monitored telephone calls between the Helton brothers that D. Helton was travelling from Houston, Texas to New Orleans via Greyhound bus with a large quantity of cocaine. DEA agents and Louisiana State Police troopers stationed themselves at the Greyhound terminal in New Orleans awaiting D. Helton’s arrival. When D. Helton arrived at the terminal and exited the bus, agents and troopers approached D. Helton. After D. Helton consented to a search of his bag, agents found approximately 500 grams of cocaine hydrochloride in his bag. A subsequent monitored telephone call revealed a distraught P. HELTON lamenting his brother’s arrest while acknowledging that he (P. HELTON) should have been the one arrested with the drugs.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney André Jones in was charge of the prosecution
Marine Corps Civilian Employee Pleads Guilty to Assaulting His SpouseRead the Press Release
A civilian employee working for the U.S. Marine Corps Community Association pleaded guilty today to assaulting his spouse while working in Iwakuni, Japan.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Matthew Schneider, U.S Attorney for the Eastern District of Michigan; and Timothy Mahew, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Far East Field Office made the announcement.
Jason Beltran, 35, a former U.S. Marine most recently residing in Flushing, Michigan, pleaded guilty to a single count of assault of a spouse resulting in substantial bodily injury. Beltran entered his plea before U.S. District Judge Nancy G. Edmunds in the U.S. District Court in Detroit, Michigan.
According to the admissions made in connection with his plea, Beltran was an active duty U.S. Marine stationed in Iwakuni, until he was honorably discharged from the Marine Corps in 2011.
Thereafter, Beltran was hired by the U.S. Marine Corps Community Services to work as a library technician at Marine Corps Air Station Iwakuni. In 2011, Beltran married a dual Japanese-U.S. citizen and had three children with his spouse. Beltran admitted that on or about June 20, 2017, he had an argument with his spouse during which he punched her with a closed fist to the side of her face causing a gash that required several stitches to close the wound, and which resulted in a small, permanent scar.
Sentencing is scheduled for May 3.
NCIS conducted the investigation. Trial Attorneys Frank G. Rangoussis and John-Alex Romano of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
Manhattan man convicted of lying in attempted firearm purchase sentenced to prisonRead the Press Release
MISSOULA – A Manhattan man who was convicted at trial of providing false information on a form when trying to buy a firearm was sentenced today to 13 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said today.
U.S. District Judge Dana L. Christensen, on Oct. 1, 2020, found Joshua Rodney Meech, 29, guilty of false statement during a firearms transaction. The one-day bench trial was held on Sept. 28, 2020.
During the trial, the prosecution presented evidence that Meech attempted to buy a 9mm semi-automatic pistol from Bob Ward & Sons, Inc., in Bozeman on April 4, 2020. In court records filed in the case, the prosecution said Meech, while shopping for firearms at the store, completed a Firearms Transaction Report, known at ATF Form 4473, signed and dated the form and provided it to an employee for a background check. A few days later, Bob Ward's was notified that Meech's request had been denied.
Meech had checked a box on the form that he was not subject to a court order restraining him from harassing, stalking, or threatening his child, and intimate partner or the child of such a partner. On Jan. 10, 2020 the District Court in Gallatin County issued a temporary restraining order against Meech directing him not to commit any acts of violence or harass, threaten, abuse or stalk the petitioner, now his ex-wife, and three minor children. The parties agreed to a Stipulated Order of Protection, which was signed by Meech and his attorney, on Feb. 26, 2020. The Stipulated Order was to remain in effect until the parties mutually agreed to dissolve it or upon further order of the court. The Stipulated Order included the statement, "Federal law provides penalties for possessing, transporting, shipping or receiving any firearm or ammunition."
The Stipulated Order was terminated on May 20, 2020 by a motion from the petitioner.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Man Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
A Washington man pleaded guilty today to perpetrating a scheme to fraudulently obtain COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Brian T. Moran, U.S. Attorney for the Western District of Washington; J. Russell George, Inspector General of the U.S. Treasury Inspector General for Tax Administration (TIGTA); Gail S. Ennis, Inspector General of the Social Security Administration (SSA); Hannibal “Mike” Ware, Inspector General of the SBA, and Cardell Morant, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement.
Austin Hsu, 46, of Issaquah, pleaded guilty to an information charging him with one count of wire fraud before U.S. Magistrate Judge Michelle L. Peterson in the Western District of Washington. Sentencing has been scheduled for April 19, 2021, before U.S. District Court Judge James L. Robart.
As part of his guilty plea, Hsu admitted that he submitted nine fraudulent disaster loan applications seeking over $1.1 million. Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of four other companies that he owned and controlled. Hsu further admitted that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
Hsu also admitted that he incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. Hsu admitted that, in truth, Blueline had no business or operations.
Six of Hsu’s nine fraudulent loan applications were approved, and he fraudulently obtained more than $700,000 in COVID-19 relief funds.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $294 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 one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
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.
This case was investigated by the TIGTA, SSA – Office of Inspector General (OIG), SBA – OIG, and HSI. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Convicted of Multiple Obscenity Crimes Involving ChildrenRead the Press Release
A Texas man was convicted by a federal jury today for operating a website dedicated to publishing writings that detailed the sexual abuse of children.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Gregg Sofer, U.S. Attorney of the Western District of Texas; and Luis M. Quesada, Special Agent in Charge of the FBI’s El Paso Field Office made the announcement.
After a three-day trial, Thomas Alan Arthur, 64, of Terlingua, was convicted of three counts of trafficking in obscene visual representations of the sexual abuse of a child, five counts of trafficking in obscene text stories about the sexual abuse of children, and one count of engaging in the business of selling obscene matters involving the sexual abuse of children.
According to trial evidence, Arthur began operating the Mr. Double website in 1996, and began charging members for access to the site in 1998. The website was dedicated to publishing writings that detail the sexual abuse of children, including the rape, torture, and murder of infants and toddlers. The evidence at trial showed that all submissions for publication were reviewed and approved by Arthur before he posted them on the site. Some of the author pages contained drawings depicting children engaged in sexually explicit conduct. Evidence at trial showed that the website was Arthur’s sole source of income for more than 20 years. The site was taken offline in November 2019 when the FBI executed a search warrant at his residence near Terlingua, where Arthur administered the site. Pursuant to our Mutual Legal Assistance Treaty with the Netherlands, additional evidence was obtained from the server in the Netherlands where the site was hosted.
Sentencing is scheduled for April 19, 2021.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Monica Morrison of the Middle District of Tennessee, and Assistant U.S. Attorney Fidel Esparza of the Western District of Texas are prosecuting the case with assistance from the Justice Department’s Office of International Affairs.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, and Brewster County Sheriff’s Office investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Maine Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Maine man was charged yesterday in federal court in Boston for travelling to have sex with a minor and child pornography offenses.
Patrick Plummer, 29, of Parsonsfield, Maine, was charged in a criminal complaint with traveling with intent to engage in illicit sexual conduct with a person under 18 years of age and transportation of child pornography.
According to the complaint, Plummer communicated via various messaging applications with an undercover officer posing as a 13-year-old girl and devised a plan to meet the purported child in Georgetown, Mass. to have sex. On Sept. 26, 2020, Plummer allegedly drove from Maine to a predetermined location in Georgetown, as they had planned. Officers arrested Plummer on scene, and found him in possession of four cell phones, a computer and a spring-release knife. Preliminary analysis of the electronic evidence seized from Plummer’s car revealed in excess of 100 images and videos of child pornography on at least three of the devices. Preliminary analysis also revealed evidence that Plummer was logged into the account from which he had communicated with the undercover officer. Forensic analysis of the devices is ongoing.
According to court documents, Plummer admitted that he had traveled from Maine to meet the purported 13-year-old girl, that he was talking to approximately 10 underaged girls and that investigators would find child pornography on his devices.
The charge of traveling with intent to engage in illicit sexual conduct with a minor provides for a sentence of up to 30 years in prison, a minimum of five years and up to life in prison and a fine of up to $250,000. The charge of transportation of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a minimum of five years and up to life in prison and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Georgetown Police Chief Donald C. Cudmore made the announcement today. The Essex County District Attorney’s Office provided assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, is prosecuting the case.
The case was 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/.
Lexington Man Sentenced to 71 Months for Fentanyl and Cocaine Trafficking and Illegal Gun PossessionRead the Press Release
LEXINGTON, Ky. – A Lexington man, Christopher Lovings, 36, was sentenced to ____ months in federal prison on Thursday, before Chief U.S. District Judge Danny Reeves, for conspiracy to distribute fentanyl and cocaine base and possession of firearm by a convicted felon.
According to his plea agreement, on January 28, 2019, law enforcement observed a vehicle matching reports of a stolen vehicle at a gas station on Versailles Road in Lexington. Lovings was identified as the driver. Law enforcement located approximately four grams of crack cocaine and approximately eight grams of fentanyl on Lovings, along with a handgun under the drivers’ seat. Lovings admitted to being in possession of the drugs with intent to distribute and further admitted to being in possession of the firearm as a convicted felon.
Lovings was previously convicted of a felony in 2006 and was prohibited from possessing a firearm.
Under federal law, Lovings must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, announced the sentence.
The investigation was conducted by the DEA, ATF, and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Le Mars Man Sentenced to Federal Prison for COVID-19 Related Unemployment FraudRead the Press Release
A Le Mars, Iowa man who stole government funds using a COVID-19 unemployment scheme was sentenced January 19, 2021, to 3 months in federal prison.
Dennis George Chinn, age 55, from Le Mars, Iowa, received the prison term after a September 25, 2020 guilty plea to theft of government funds.
In a plea agreement, Chinn admitted to falsely reporting his income, stating it was $150 per week, so he could get an additional $600 weekly payment, and to fraudulently obtaining unemployment benefits related to COVID-19 relief funds to which he was not entitled. In total, Chinn obtained over $13,000 in COVID-19 pandemic CARES Act Iowa unemployment funds.
Chinn was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Chinn was sentenced to 3 months’ imprisonment. He was ordered to pay $12,231.00 in restitution. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Chinn is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by United States Attorney Ron Timmons and was investigated by the United States Department of Labor and the Office of Inspector General and the Federal Bureau of Investigation.
Rooting out COVID-19 fraud is a priority of the Department of Justice. On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits.
These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4082.
Follow us on Twitter @USAO_NDIA.
Latin Dragons Nation Associate Sentenced to 60 Months Imprisonment Following Conviction for Racketeering ConspiracyRead the Press Release
HAMMOND- Tiffany Barragan, 23, of Chicago, Illinois, was sentenced to 60 months imprisonment following her guilty plea to conspiracy to participate in racketeering activity as an associate of the Latin Dragons Nation street gang, announced Acting U.S. Attorney Gary T. Bell.
According to documents in the case, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory. The Latin Dragons Nation members have been charged with crimes involving in excess of 50 victims, including 15 murder victims.
As part of her involvement in the Latin Dragons Nation, Barragan participated with gang members and associates in acts of violence and other criminal activity. In June 2017, at the direction of a Latin Dragons Nation member, Barragan and another Latin Dragons associate provided a firearm previously used to commit a murder to another Latin Dragons Nation member, with the intention that he would dispose of the murder weapon. In November 2017, Barragan accompanied Latin Dragons Nation members when they shot at a rival gang member’s residence, after which Barragan concealed drugs from the police during a traffic stop. In this case, a total of 19 members and associates have been charged with racketeering conspiracy for their participation in Latin Dragons Nation activity. Of those, 15 defendants have pled guilty and 8 are awaiting sentencing.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Kevin F. Wolff and Maria N. Lerner, and Special Assistant U.S. Attorney Michael J. Toth, with prior assistance from former Assistant United States Attorney Joseph A. Cooley.
Lake City Man Pleads Guilty to Federal Gun ChargesRead the Press Release
A man who illegally possessed a gun pled guilty January 19, 2021, in federal court in Sioux City.
Jeffrey Carothers, 52, from Lake City, Iowa, was convicted of possession of a firearm by a prohibited person. Carothers was previously convicted of a crime which prohibited him from possessing guns, namely, receiving stolen property, in the Superior Court for the State of California in and for the county of Plumas, on or about November 17, 1995.
At the plea hearing, Carothers admitted that around April or May 2019, he possessed a 9mm pistol. Carothers further admitted he was an illegal user of methamphetamine and that over the past one or two years, he had traded methamphetamine and marijuana for guns approximately six times.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Carothers faces a possible maximum sentence of 10 years’ imprisonment; a $250,000 fine, and not more than three years of supervised release.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, Lake City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3018. Follow us on Twitter @USAO_NDIA.
Kotzebue Man Indicted for Sex Trafficking of a MinorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Wally Roy Carter, 61, of Kotzebue, Alaska, has been indicted by a federal grand jury for sex trafficking of a minor. Carter was arrested on Thursday, Dec. 17, and has remained incarcerated since his arrest.
According to a criminal complaint, Carter became the subject of a federal investigation in November 2020, when the FBI received a tip alleging a minor had been sexually abused by Carter approximately 15 times over the course of three years, with the first instance occurring when the victim was just 10 years old. Carter allegedly gave the victim money after each instance of sexual abuse, and often gave her alcohol and marijuana before or after the sexual abuse. The complaint further alleges that the sexual abuse happened in Carter’s home, his vehicle and on one occasion, Carter took her by boat to a cabin, where the victim tried to escape from Carter at least five times.
If the public has any further information regarding Carter’s activities, please contact Anchorage FBI at (907) 276-4441.
If convicted, Carter faces a mandatory minimum sentence of 15 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) Task Force Officers investigated this case collectively as part of the FBI’s Child Exploitation and Human Trafficking Task Force, with assistance from the Alaska State Troopers (AST) and Kotzebue Police Department (KPD). This case is being prosecuted by Assistant U.S. Attorney Dan Doty.
The investigation is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is also part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN), the U.S. Attorney’s Office is increasing engagement, coordination, and action on public safety in Alaska Native communities.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kanawha County Woman Sentenced to Federal Prison for FraudRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Holly Urlahs, also known as Holly Anderson, 32, of Elkview, was sentenced to two years in federal prison for bank fraud and forging a judge’s signature. Urlahs will also serve a three year term of supervised release upon completion of her prison sentence.
“Urlahs committed very serious crimes,” said United States Attorney Mike Stuart. “She spun a tangled web of deceit for which she will now spend the next two years in federal prison.”
Urlahs previously pled guilty and admitted that she falsely claimed to have sued Charleston Area Medical Center (CAMC) and was expecting a large financial settlement from her lawsuit. Under these false pretenses, she set out to defraud financial institutions and an insurance company. As part of her fraudulent scheme, Urlahs altered a $100 cashier’s check to reflect an amount over $8.4 million. She also provided fake documents with forged signatures and a personal check for $1 million, although she knew she did not have sufficient funds in her account, to an insurance company to obtain an annuity contract. Urlahs’ check was returned for insufficient funds.
The investigation was conducted by the West Virginia State Police-Bureau of Criminal Investigations and the West Virginia Insurance Commissioner’s Special Investigations Division. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Kathleen Robeson handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00125.
Follow us on Twitter: SDWVNews and USAttyStuart
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Judge sentences St. Louis man to 10 years for drug trafficking and firearm chargesRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced James Lamont Fields to 120 months in prison today. The 23-year-old St. Louis, Missouri resident pleaded guilty to one count of conspiracy to distribute fentanyl and one count of felon in possession of a firearm.
Fields, along with three other co-defendants, was involved in a conspiracy in December 2016 to distribute more than 400 grams of fentanyl.
As part of the conspiracy to distribute the fentanyl, a co-defendant maintained multiple cell phones that were passed among members of the conspiracy and which drug customers would call in order to procure fentanyl. At various times, multiple co-defendants and Fields agreed to maintain possession of the phone and distribute fentanyl to the customers on behalf of the conspiracy. During the investigation, federal agents and assisting police officers utilized undercover officers and confidential informants to do controlled purchases of fentanyl from whoever was in possession of the common cell phone. On at least one occasion, Fields answered the cell phone and distributed fentanyl to an undercover officer in the city of St. Louis.
Additionally, Fields kept in touch with his co-conspirators regarding the activities of the conspiracy even during periods of incarceration. On December 3, 2016, Fields placed a call from the St. Louis City Justice Center to a phone number and received updates from co-conspirators regarding drug trafficking and the shooting death of David Bryant.
On April 11, which was after Fields’ release from the St. Louis City Justice Center, officers from the St. Louis Metropolitan Police Department received a call for multiple offenders fleeing from police at a high rate of speed in a stolen vehicle. When officers spotted the vehicle, Fields fled from it and led officers on a foot chase in Downtown St. Louis. When officers found Fields, he was in possession of a bag containing a Glock model 23C, .40 caliber semi-automatic firearm and a knotted baggie containing clear capsules totaling 11.68 grams of fentanyl. Fields told officers the firearm was stolen, and he was a convicted felon. Fields agrees he responsible for more than 400 grams, but less than 1.2 kilograms.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service and the St. Charles County Sheriff’s Department.
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Jamestown Man Going to Prison for Illegally Possessing A FirearmRead 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 Ingvue Buchanan, 57, Jamestown, NY, who was convicted of being a felon-in-possession of a firearm, was sentenced, by Chief U.S. District Judge Frank P. Geraci, Jr., to serve 36 months in prison.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that in June 2016, law enforcement officers interviewed the defendant regarding his knowledge of 97 firearms that had been stolen, between May and June of 2016, from three federal firearms licensees in Pennsylvania. During the interview, Buchanan consented to a search of his vehicle, which he stated he had recently purchased from an individual by the name of Ben McCormack. During the search, officers recovered of a box containing 20 rounds of .44 caliber ammunition. The defendant was on New York State parole at the time following a manslaughter conviction in January 2011, and as a result of that conviction, he was prohibited from possessing any ammunition.
The following day, Buchanan was interviewed by his parole officer and stated that he had two firearms in his residence. The parole officer located one of the firearms, a rifle, but could not locate the other, a handgun. Subsequent investigation determined that the rifle was previously reported stolen from GNR Sporting Goods, in Mansfield, Pennsylvania. The defendant also told the parole officer that he helped facilitate meetings between Ben McCormack and individuals located in the Western District of New York for the purposes of selling stolen firearms from Pennsylvania. In addition, he admitted that 15 of the stolen firearms that were intended for distribution at a future date were hidden in the garage of a person known to the defendant.
Ben McCormack was previously convicted in the Middle District of Pennsylvania and sentenced to serve 121 months in prison.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of John B. Devito, Special-Agent-in-Charge, New York Field Division.
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Issaquah, Washington man pleads guilty to COVID-19 relief fraud schemeRead the Press Release
Seattle – An Issaquah, Washington man pleaded guilty today to perpetrating a scheme to fraudulently obtain COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Brian T. Moran, U.S. Attorney for the Western District of Washington; J. Russell George, Inspector General of the U.S. Treasury Inspector General for Tax Administration (TIGTA); Gail S. Ennis, Inspector General of the Social Security Administration (SSA); Hannibal “Mike” Ware, Inspector General of the SBA, and Cardell Morant, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement.
AUSTIN HSU, 46, of Issaquah, pleaded guilty to an information charging him with one count of wire fraud before U.S. Magistrate Judge Michelle L. Peterson in the Western District of Washington. Sentencing has been scheduled for April 19, 2021, before U.S. District Court Judge James L. Robart.
As part of his guilty plea, HSU admitted that he submitted nine fraudulent disaster loan applications seeking over $1.1 million. HSU, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of four other companies that he owned and controlled. HSU further admitted that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
HSU also admitted that he incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. HSU admitted that, in truth, Blueline had no business or operations.
Six of HSU’s nine fraudulent loan applications were approved, and he fraudulently obtained more than $700,000 in COVID-19 relief funds.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $294 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 one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
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.
This case was investigated by the TIGTA, SSA – Office of Inspector General (OIG), SBA – OIG, and HSI. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Illegal Alien from the Dominican Republic Sentenced Today for Unlawfully Possessing a Firearm Related to a Shooting at the Executive NightclubRead the Press Release
St. Thomas, USVI – Gretchen C.F. Shappert, United States Attorney for the District of the Virgin Islands, announced today that Charlie Manuel Castillo Borg, 27, a citizen of the Dominican Republic with no legal status in the United States, was sentenced to time served in custody. He has been detained under custody by local and federal authorities since December 31, 2019. The defendant was also ordered to forfeit the firearm he unlawfully possessed.
According to court documents, on December 22, 2019, a shooting occurred at the Executive Night Club, Bar and Restaurant located at Contant #38, St. Thomas. V.I. Surveillance video from the incident collected at the scene shows a male subject, later identified with the initials I.D.A., open the door of the Executive Night Club, Bar and Restaurant and discharge a firearm into the establishment. Immediately thereafter, the surveillance video records the defendant, Charlie Manuel Castillo Borg, shooting the firearm at I.D.A., striking him several times. Medical personnel later pronounced I.D.A. dead at the scene. A query conducted by the U.S. Citizenship and Immigration Services found that the defendant Charlie Manuel Castillo Borg is an illegal alien in the United States.
This case was investigated by the Virgin Islands Police Department in conjunction with the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorney Juan A. Albino.
Hartford Man Admits Assaulting U.S. Postal Service EmployeeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DEMORSE KELLEY, 39, of Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to assaulting a U.S. Postal Service letter carrier.
According to court documents and statements made in court, on June 7, 2019, a U.S. Postal Service letter carrier was sorting mail inside her postal delivery van that was parked on Sigourney Street in Hartford. Kelley approached the van from the sidewalk, slid the side door of the van so that it was fully open and then spoke to the letter carrier. Kelley commented the letter carrier on her appearance and asked her for a hug and for her phone number. Kelley then climbed into the postal van and allowed the door to close behind him. He then touched the letter carrier’s leg below her shorts, made sexual advances and obstructed the letter carrier’s ability to exit. The letter carrier was eventually able to exit the van and called Hartford Police, who arrested Kelley later that day.
Judge Dooley scheduled sentencing for April 15, 2021, at which time Kelley faces a maximum term of imprisonment of eight years.
Kelley, who has unrelated state charges pending, has been detained since his arrest.
This matter is being investigated by the U.S. Postal Inspection Service and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Gulf Coast Man Pleads Guilty to Firearms OffenseRead the Press Release
Gulfport, Miss. – Cameron Malik Dajon Payton, 19, of Harrison County, Mississippi, pled guilty today before Senior U.S. District Judge Louis Guirola to being an unlawful user of a controlled substance in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
On September 2, 2020, law enforcement officers with the Biloxi Police Department conducted a traffic stop on a vehicle driven by Payton. As a result of the stop, officers located two loaded handguns, one of which was stolen, beneath the passenger seat. One of the firearms was a Glock 42 .380 caliber pistol. Additionally, officers found a Glock 42 pistol magazine loaded with 5 rounds of .380 ammunition and a single .380 round on Payton. Further investigation revealed that Payton was an unlawful user of marijuana, a controlled substance.
On October 6, 2020, Payton was charged in a federal criminal indictment with being an unlawful user of a controlled sustance in possession of a firearm.
Payton will be sentenced by Judge Guirola on April 28, 2021 at 1:30 p.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the FBI and the Biloxi Police Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.