Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
10 March 2021
Spirit Lake Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
A man who possessed child pornography was sentenced March 9, 2021, to 13 years in federal prison.
Paul Frances Hicks, age 65, from Spirit Lake, Iowa, received the prison term after a September 22, 2020, guilty plea to one count of possession of child pornography.
At the plea hearing, Hicks admitted that on September 8, 2016, he possessed visual depictions of minors engaged in sexually explicit conduct, including a depiction involving a prepubescent minor or a minor who had not attained 12 years of age. During the execution of a search warrant at Hick’s residence on September 8, 2016, law enforcement seized an HP laptop computer. The computer was forensically examined and contained at least 146 images of child pornography.
Hicks was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Several former victims were present at the sentencing. At the sentencing, Hicks admitted to grooming multiple children since the 1970s with gifts, drugs, and alcohol to sexually abuse them. Hicks tended to prey on families experiencing turmoil and offered to babysit the children in order to gain access to his victims. Hicks was sentenced to 156 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Acting United States Attorney Sean Berry stated “Our community is made safer every time a child predator is sentenced to prison. We thank our law enforcement partners for their dedication and good work on this case.”
Hicks 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 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 the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by The Iowa Internet Crimes Against Children Task Force and the FBI Child Exploitation and Human Trafficking Task Force, the Iowa Division of Criminal Investigations, the Spirit Lake Police Department, and the Dickinson County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4004.
Follow us on Twitter @USAO_NDIA.
Southbridge Man Arrested on Federal Drug ChargeRead the Press Release
BOSTON – A Southbridge man was arrested yesterday and charged in connection with distributing methamphetamine.
Christopher Williams, 33, was charged by criminal complaint with one count of distribution of methamphetamine. Following an initial appearance before U.S. District Court Magistrate Judge David H. Hennessy, Williams was detained pending a detention hearing set for March 11, 2021.
According to the complaint, on two separate occasions in January 2021, Williams sold multiple ounces of methamphetamine to an undercover officer for $4,500 in Southbridge.
The charge of distribution of methamphetamine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Southbridge Police Chief Shane Woodson made the announcement. Assistant U.S. Attorney Danial Bennett of Mendell’s Worcester Branch Office 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.
Shreveport Man Sentenced for Selling and Distributing MethamphetamineRead the Press Release
SHREVEPORT, La. - Aaron McKinney, a.k.a “Dinosaur,” 41, of Shreveport, Louisiana, was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 120 months (10 years) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possession with intent to distribute methamphetamine, announced Acting United States Attorney Alexander C. Van Hook.
Between March 2019 and December 2019, law enforcement agents began an investigation into the suspected drug trafficking activities of McKinney and other co-defendants. During the investigation, DEA agents obtained authority to intercept phone calls on a cell phone belonging to a co-defendant. On several occasions, law enforcement agents intercepted phone calls wherein McKinney discussed obtaining methamphetamine, as well as prices, amounts, and meeting locations to purchase the methamphetamine. At the time of his arrest, McKinney admitted to agents that he was selling and purchasing methamphetamine. On July 27, 2020, McKinney pleaded guilty to the charge of conspiracy to distribute and possession with intent to distribute methamphetamine.
The DEA conducted the investigation and Assistant U.S. Attorney Tennille Gilreath prosecuted the case.
This is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence—riven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
# # #
Romanian National Sentenced to Four Years in Federal Prison for Role in Credit Card Skimming SchemeRead the Press Release
PORTLAND, Ore.—A Romanian National was sentenced to federal prison today for his role in a bank fraud scheme wherein he and an accomplice used counterfeit credit and debit cards to withdraw money from local banks, announced Acting U.S. Attorney Scott Erik Asphaug.
Ciprian Simion, 35, of Romania, was sentenced to 48 months in federal prison followed by five years’ supervised release. Simon was also ordered to pay more than $27,000 in restitution.
According to court documents, Simion is an experienced credit card skimmer. In April 2018, he was arrested in New York City after using fake ATM cards and pins to withdraw cash from an ATM. After his arrest, Simion consented to a search of his hotel room where officers found nearly 100 forged debit cards and three forgery devices. He was later indicted by a New York grand jury on more than 200 counts related to his fraud activity. The New York court issued a warrant for his arrest in August 2018.
At some point after being charged in New York, Simion relocated to Oregon. His precise movements in the months leading to his arrest in Oregon are unknown. On or about March 16, 2019, Simion and an accomplice, Gabriel Tigmarau, 51, also of Romania, installed a credit card skimmer on a Rivermark Community Credit Union ATM in Newberg, Oregon. Simion and Tigmarau later removed the device to obtain stolen account information and pins, damaging the ATM in the process. Around the same time, the pair installed skimming devices on several other area ATMs.
Simion and Tigmarau used the stolen account information to produce counterfeit credit and debit cards and withdraw cash from local ATMs. On April 27, 2019, officers from the Portland Police Bureau arrested Simion and Tigmarau after they were caught tampering with an IBEW Credit Union ATM on SE Washington Street in Portland. Officers seized several counterfeit bank cards and a skimming device from the pair. While in Oregon, Simion stole at least 354 account numbers.
On July 24, 2019, a federal grand jury in Portland returned an eleven-count indictment charging Simion and Tigmarau with conspiracy to commit bank fraud, counterfeit access device fraud, illegal possession of device-making equipment, bank fraud, and aggravated identity theft. On July 29, 2020, Simion pleaded guilty to one count each of bank fraud and aggravated identity theft. Simon’s New York state charges are still pending.
On November 4, 2020, Tigmarau pleaded guilty to the same charges. He was sentenced on February 17, 2021 to 42 months in federal prison and five years’ supervised release.
This case was investigated by Homeland Security Investigations (HSI) and the Portland Police Bureau. It was prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Bank card skimming occurs when devices are illegally installed on ATMs, point-of-sale (POS) terminals, or fuel pumps to capture cardholders’ bank account information or PINs. Criminals use the stolen data to create fake debit or credit cards and steal from victims’ accounts. It is estimated that skimming costs financial institutions and consumers more than $1 billion each year. Consumers are encouraged to look carefully at ATMs and POS terminals before using them. If you observe evidence of tampering or anything unusual, do not use the machine. If you suspect you’ve been the victim of skimming, please contact your financial institution immediately.
Roanoke Drug Kingpin Sentenced to 20 Years in PrisonRead the Press Release
ROANOKE, Va. -Monta Jordan, a convicted drug kingpin who was subject to one of the largest fentanyl seizures in Virginia at the time, was sentenced yesterday in U.S. District Court in Roanoke to 240 months in federal prison, Acting United States Attorney Daniel P. Bubar; Jared Forget, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Division, and Col. Gary T. Settle, Superintendent of the Virginia State Police announced today.
In February 2020, a jury convicted Jordan, 45, a.k.a. “Ghost” and “Tae” of Roanoke, of one count of conspiring to distribute heroin, fentanyl, methamphetamine, and cocaine, one count of possession with the intent to distribute fentanyl, one count of attempting to possess with the intent to distribute cocaine, one count of attempting to possess with the intent to distribute heroin, and possession of one or more firearms in furtherance of the overall drug conspiracy.
“Monta Jordan oversaw a significant drug distribution network that pumped various deadly narcotics into the Roanoke Valley, including fentanyl,” said Acting U.S. Attorney Bubar today. “This significant sentence is the product of a lengthy investigation and trial, that could not have been accomplished without the collaboration between our many federal, state and local law enforcement partners, whose hard work brought Jordan to justice.”
“Fentanyl is responsible for killing thousands of people across our area,” Special Agent in Charge Forget said today. “With the help of federal, state, and local partners we are working hard on impactful cases such as this, to halt the distribution of these deadly drugs in our communities and throughout the country.”
Evidence at trial indicated that Jordan was responsible for trafficking more than 54 kilograms of narcotics into this region as part of an extensive drug operation that began no later than the summer of 2016 and extended even beyond his arrest on federal charges in August 2017. Jordan received deliveries of these narcotics at various locations in the Roanoke Valley and made cash payments toward his purchases of as much as $320,000 during scheduled meetings.
During trial in February 2020, witnesses explained that Jordan trafficked large quantities of narcotics into the Roanoke-area through by mail and through couriers, who were compensated in various ways for their willingness to transport narcotics by car from places such as New York, North Carolina, Tennessee, and Ohio. Further evidence established that Jordan received narcotics by mail at the residential addresses of his associates and, in turn, mailed large quantities of United States currency to designated recipients in those states. For example, during the course of the investigation, the United States Postal Inspection Service intercepted two packages mailed by Jordan within the span of one week, containing collectively just under $100,000 in cash. In one instance, agents found a basketball in one of the contraband packages, wrapped in carbon paper and surrounded by miscellaneous chair cushions. The basketball itself had been cut and contained $49,950 in rubber-banded currency.
Jurors also heard evidence regarding Jordan’s methods of transporting narcotics into the Roanoke-area by one or more vehicles outfitted with concealed traps. Among other vehicles, Jordan owned a burgundy Ford Fusion, which he identified in his own text messages as the “Batmobile.” On August 5, 2017, surveillance officers conducted a traffic stop of a burgundy Ford Fusion dubbed by Jordan himself as the “Batmobile.” The car was in route from New York to Roanoke and stopped by law enforcement agents near Harrisonburg. During a subsequent search of that vehicle, specially trained interdiction officers with the Virginia State Police discovered a secret compartment, or trap, underneath the factory-installed carpet in the trunk of the car. They found approximately 4.5 pounds of fentanyl inside the trap, wrapped in smell-proof bags, and covered in an oily masking agent designed to defeat the scenting capabilities of K-9 drug dogs. This fentanyl seizure was the largest in Virginia at the time, recovered by investigators at a time when the region was plagued with an increase in drug overdoses attributable in part to the increasing use of fentanyl as a cutting agent in heroin transactions.
The case against Jordan culminated in his arrest on August 10, 2017. On that date, authorities recovered a package containing approximately one pound each of packaged cocaine and heroin, destined for Jordan. They replaced the replaced the narcotics with sham, or fake, drugs designed to match the appearance and weight of the seized contraband. During the subsequent arrest operation, agents made a controlled delivery of the package and observed Jordan as he retrieved and emptied the box along Highway 122 in Bedford County.
Jordan was intercepted near the intersection of Highway 122 and Morgans Church Road in Bedford County. In video footage of the ensuing police pursuit, Jordan could be seen throwing the sham drugs out the window of his vehicle and over a bridge, attempting to dispose of what he believed were genuine narcotics in his possession. He was taken into custody shortly after the sham packages entered the creek below and has remained incarcerated since that time.
Notwithstanding his arrest, witnesses indicated that Jordan successfully smuggled on or more phones into his cell at a local jail and used the phones to coordinate the delivery and distribution of narcotics from jail, while his case was pending trial. A known girlfriend and associate of Jordan’s, Amany Mohamed Raya, was convicted in January 2020 of attempting to smuggle one of these phones to Jordan in the spine of a fake binder designed to look like confidential legal mail. In a coordinated effort by the United States Postal Inspection Service (USPIS), the Roanoke City Sheriff’s Department, the United States Marshals Service (USMS), and the Drug Enforcement Administration (DEA), authorities caught Jordan in possession of one of the contraband phones and successfully intercepted Raya’s fake legal mail before it could be delivered to Jordan.
The investigation of this case was led by the Drug Enforcement Administration, the Virginia State Police, the Roanoke City and Roanoke County Police Departments, the Salem Police Department, the United States Postal Inspection Service, and members of the High Intensity Drug Trafficking Area Task Force (HIDTA), with invaluable assistance and support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Air National Guard, the Department of Homeland Security, the United States Marshals Service, the Salem Police Department, the Roanoke Sheriff’s Office, and the Criminal Investigations Division of the Department of Motor Vehicles.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorneys Kari Munro and Anthony Giorno prosecuted the case for the United States.
Rioter from May 30 Seattle civil unrest pleads guilty to arson and possession of a stolen firearmRead the Press Release
Seattle – A man originally from Georgia pleaded guilty today in U.S. District Court in Seattle to arson and possession of a stolen firearm for his conduct during civil unrest on May 30, 2020, announced Acting U.S. Attorney Tessa M. Gorman. TYRE WAYNE MEANS, JR., 25, faces a mandatory minimum 5 years in prison and up to 20 years in prison when he is sentenced by U.S. District Judge Richard A. Jones on June 11, 2021.
According to records filed in the case, just after 4 p.m. on May 30, 2020, MEANS, JR., was captured on video lighting a paper towel and placing it in the back of a Seattle Police patrol car parked outside of Nordstrom on Sixth Avenue in downtown. Other persons in the crowd fed the fire with lighter fluid and other accelerants, and the vehicle was destroyed by fire. After he lit one patrol car on fire, MEANS, JR., is observed on video reaching through the destroyed rear window of a different patrol car and removing a rifle bag. MEANS, JR., opened the bag and looked inside. MEANS, JR., is seen fighting with an unidentified man who tried to retrieve the rifle bag before MEANS, JR., ran from the scene. A subsequent surveillance video on Pine Street, around the corner from where the rifle was stolen, shows MEANS, JR., in a fight with another man. While MEANS, JR., and the man are throwing punches, an unidentified man picks up the rifle bag and ultimately walks away. Later that day, the rifle was anonymously returned to the Seattle Police West Precinct.
MEANS, JR., was identified as the suspect in the video by his distinctive clothing, jewelry, tattoos, and association with a female who also had distinctive tattoos and a significant social media presence. MEANS, JR., was arrested in Bremerton, Washington, where he was meeting with his Washington State Department of Corrections probation officer.
MEANS, JR., is prohibited from possessing firearms due to two felony convictions in the state of Georgia: serious injury by vehicle and obstructing law enforcement by use of threats or violence. In Washington, MEANS, JR., has a felony conviction for domestic violence that includes a no-contact order–that order also prohibits him from possessing firearms.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison. Possession of a stolen firearm is punishable by up to 10 years in prison. Both the prosecution and defense will recommend a 5-year prison term; however, the ultimate sentence is up to Judge Jones after considering the sentencing guidelines and other factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Rhode Island Man Sentenced for Foreign Travel to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – A Pawtucket man who traveled from Rhode Island to Winnipeg, Canada, to engage in illicit sexual activity with a 13-year-old girl he befriended on social media was sentenced today to 72 months in federal prison.
According to court documents, prior to traveling to Canada in April 2019 to engage in sexual contact with the minor girl, Herbert J. Rodas, 24, communicated with the victim online for several months, sending obscene images of himself and soliciting sexually explicit photographs in return.
In June 2019, the Winnipeg Police Service contacted the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC) and Homeland Security Investigations (HSI) in Rhode Island to report the sexual assault of a 13-year-old female. Winnipeg Police developed information that Herbert Rodas had travelled from the United States to Canada in April 2019 to engage in sexual activity with the minor victim.
At the time of his guilty plea in federal court in Providence to charges of engaging in illicit sexual conduct with a minor in foreign places, transferring obscene material to a minor, and receipt of child pornography, Rodas admitted to the court that on April 25, 2019, he flew to Canada, rented a hotel room in his name for which he paid cash, and over the next three days he met with the victim on several occasions to engage in illicit sexual activity.
At sentencing today, US. District Court Judge Mary S. McElroy sentenced Rodas, who has been released on home detention with electronic monitoring since his arrest in July 2019, to 72 months in federal prison to be followed by 10 years of federal supervised release, announced Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Rhode Island State Police Superintendent Colonel James M. Manni.
The case was prosecuted by Assistant United States Attorney John P. McAdams.
Acting U.S, Attorney Myrus thanks the officers of the Winnipeg Police Department for their assistance in this investigation.
###
Rapid City Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on March 4, 2021, by U.S. District Judge Jeffrey L. Viken.
James Dakota Miller, age 21, was sentenced to five years in federal prison, followed by five years supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Miller will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Miller was arrested and federally indicted following multiple Cybertips from the National Center of Missing and Exploited Children. The Cybertips included images of child pornography of young children found among Miller’s possession.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Miller was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced on Robbery ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of two counts of Interference with Commerce by Robbery (Hobbs Act) was sentenced by Jeffrey L. Viken, U.S. District Judge.
Michael Daker, age 59, was sentenced on March 5, 2021, to 13 years in federal prison, followed by three years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund and restitution in an amount to be determined at a later date.
The conviction stems from Daker forcibly robbing a Yesway Convenience Store in Spearfish, and a BP Casino in Rapid City in March 2020.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives, the Rapid City Police Department, and the Spearfish Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Daker was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
Matthew Buchko, age 38, was charged on February 18, 2021. Buchko appeared before U.S. Magistrate Judge Daneta Wollmann on March 3, 2021, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years up to 20 years in prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Buchko knowingly receiving and possessing images of child pornography between September 2019 and February 2020 at Rapid City. The charges are merely an accusation and Buchko is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Buchko was detained pending trial. A trial date has been set for May 11, 2021.
Rapid City Man Charged with Second Degree MurderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder and Discharging, Brandishing, or Possessing a Firearm During and in Relation to a Crime of Violence.
Phillip Pond, age 39, appeared before U.S. Magistrate Judge Daneta Wollmann on March 3, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each charge is up to life in prison, and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Pond shooting and killing a man on November 22, 2020, at Pine Ridge.
The charges are merely accusations and Pond is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Pond was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 27, 2021.
Raleigh Man Convicted of Mail Fraud, Wire Fraud, and Identity Theft for Stealing from Elderly ClientRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Raleigh man today on eleven counts of mail fraud, eleven counts of wire fraud, and two counts of aggravated identity theft.
According to court records and evidence presented at trial, Furman Alexander Ford, 51, was a New York Life (NYL) financial advisor who was advising a 72-year-old client who had recently inherited real property valued at $1.3 million.
Ford assisted in the sale of the property and the setting-up of a charitable annuity trust with NYL using the sale proceeds. Ford worked as an insurance and financial agent at NYL from 2012 to 2015, and the victim was his primary client while employed at NYL. The charitable annuity was set-up to pay the victim $6,000 per month during her lifetime. As part of Ford’s responsibility as the victim’s financial agent, he drafted and submitted authorized letters of withdrawal from her annuity account to pay for certain expenses. Under NYL customer service guidelines, the financial agent is required to have the client sign the withdrawal letter in person with “wet ink” before submitting it to NYL via the mail. The funds would then be electronically wired to the recipient as directed by the client with their full knowledge and consent.
During the investigation, agents identified twenty separate fraudulent letters of withdrawal drafted by Ford and submitted to NYL headquarters in New York, NY, on behalf of Ms. Jones. The letters were all mailed by Ford via UPS from his office in Raleigh. The funds requested ranged from $5,000 to $45,000 and totaled over $400,000. The proceeds were then electronically wired by NYL to Ford’s personal checking account. An FBI financial analysis traced the funds to the purchase by Ford of various personal items, including a BMW vehicle, Rolex watches, firearms, child support, and a cruise to the Bahamas. On December 29, 2014, Ford withdrew $1 million from the victim’s annuity account. Ford stole over $1.3 million from the victim.
“Integrity and trust are characteristics that all financial agents should embody,” said Acting United States Attorney Acker. “Unfortunately, the defendant used his position to prey upon one of our nation’s most vulnerable citizens and today he was held accountable for his criminal actions. Our office is dedicated to prosecuting fraud cases, particularly those directed at the elderly, and will continue to use our resources to bring to justice those who take advantage of others to line their pockets with money.”
Ford faces a maximum penalty of 444 months in prison when sentenced during the August 3, 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The United States Postal Inspectors and the Federal Bureau of Investigation investigated the case, and Assistant U.S. Attorney Ethan A. Ontjes and Special Assistant United States Attorney Tamika Moses prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00351-FL-1.
Pittsburgh Man Indicted on Child Sexual Exploitation Charges following FBI InvestigationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of Distribution, Receipt, Attempted Distribution and Receipt, and Possession of Material Depicting the Sexual Exploitation of Minor, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Indictment, returned on February 16, 2021, named David Saban, age 45, as the sole defendant. Saban was ordered detained pending trial.
According to the Indictment, on May 18 and May 27, 2020, Saban knowingly distributed and attempted to distribute visual depictions, namely, videos in computer graphic and digital files, the production of which involved the use of a minor engaging in sexually explicit conduct. It is also alleged that on August 16, 2020, Saban attempted to and did knowingly receive and distribute such material. The grand jury further alleges that on September 1, 2020, Saban knowingly possessed visual depictions of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of not more than seventy years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This case was brought as 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Indicted for Illegal Possession of a Gun and AmmunitionRead the Press Release
PITTSBURGH, PA. - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dreshawn McBroom, 33, as the sole defendant.
According to the Indictment presented to the grand jury, on February 19, 2021, McBroom was found to be in possession of a firearm and ammunition. His prior felony convictions make it unlawful for him to possess a firearm.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant is currently being detained at Allegheny County Jail.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Agency (DEA) and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Admits Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and gun laws, Acting United States Attorney Stephen R. Kaufman announced today.
Brandon Calhoun, age 29, of 1929 Columbia Avenue, Pittsburgh, Pennsylvania, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that from September 2017 until November 2019, Calhoun conspired to possess with the intent to distribute and did distribute 40 grams or more of fentanyl, a Schedule II controlled substance. The court was further advised that on September 27, 2019, Calhoun possessed a firearm and ammunition, knowing he had been convicted of a crime punishable by imprisonment exceeding one year. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
Judge Horan scheduled sentencing for June 29, 2021 at 9:30 a.m. The law provides for a total sentence of not less than five and not more than 40 years in prison, a fine of $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway and Brian M. Czarnecki are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Office, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Calhoun.
Okmulgee Resident Pleads Guilty to Assault Resulting in Serious Bodily Injury in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronald Weslee Spears, age 58, of Okmulgee, Oklahoma entered a guilty plea to Assault Resulting in Serious Bodily Injury In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(6), 1151 and 1152, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
On November 24, 2020, in Okmulgee, Oklahoma, the defendant shot B.P., in the hip, with a black powder pistol. As a result of being shot, B.P. suffered extreme physical pain, was at risk of death, and required hospitalization for several days. The shooting took place within the territorial boundaries of the Muskogee Creek Nation and the Eastern District of Oklahoma. The victim, B.P., is a member of the Muskogee Creek Nation.
The charges arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Nalani Ching represented the United States.
Norwalk Man Sentenced to 10 Years in Prison for Third Federal Narcotics ConvictionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DOMENICO SANDALO, 46, of Norwalk, was sentenced today by U.S. District Judge Vanessa L. Bryant to 120 months of imprisonment, followed by eight years of supervised release, for trafficking cocaine and other drugs. Judge Bryant also ordered Sandalo to pay a $5,000 fine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, Sandalo was previously convicted of federal narcotics trafficking offenses in 2011 and 2013. In June 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, Stamford Police Department and Norwalk Police Department received information that Sandalo was in possession of a large quantity of cocaine, oxycodone pills and marijuana. On June 7, 2019, Sandalo was arrested after investigators conducted a court-authorized search of his residence and seized approximately 600 grams of cocaine, six kilograms of marijuana, 77 oxycodone pills, 46 fentanyl pills, 771 THC vape cartridges, and $53,943 in cash.
On December 11, 2020, Sandalo pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
Sandalo, who is released on a $1.5 million bond, is required to report to prison on August 4, 2021.
The DEA’s Bridgeport HIDTA Task Force, includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments.
This case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
North Tonawanda Man Indicted for COVID-19 Relief Fraud and Credit Card FraudRead 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 a federal grand jury has returned a five-count indictment charging Michael Kornaker, 50, of North Tonawanda, NY, with wire fraud and aggravated identity theft. The charges carry a minimum penalty of two years in prison, a maximum penalty of 20 years, and a $250,000 fine.
“As alleged in the indictment, the defendant’s conduct has demonstrated that he is a serial fraudster who will stop at nothing to fill his own pockets with money intended for those in need,” stated U.S. Attorney Kennedy. “Let this prosecution put the defendant and others like him on notice—we are paying attention, and if you commit fraud trying to enrich yourselves with money earmarked for those hardest hit by the pandemic, then the only return you should expect to receive is one from a federal grand jury in the form of an indictment.”
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment and a previously filed complaint, Kornaker was recently released from federal prison following a prior fraud conviction and was on supervised release. Between June and August 2020, the defendant fraudulently applied for an Economic Injury Disaster Loan (EIDL) through the U.S. Small Business Administration (SBA). The EIDL program provides funds to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of a declared disaster, including the COVID-19 pandemic. Kornaker applied for $60,500 by using the name and personal information of another person and without that person’s permission. In addition, the defendant fraudulently applied for an American Express credit card using the same person’s name and personal information and without their permission.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Internal Revenue Service Criminal Investigation, under the direction of Special Agent-in-Charge Jonathan D. Larsen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
New Orleans Attorney Pleads Guilty to Tax Fraud ChargeRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Robert Hjortsberg, 38, of New Orleans, Louisiana, pleaded guilty today in United States District Court in New Orleans, to one count of willful failure to file a tax return.
According to documents presented at the guilty plea hearing, Hjortsberg was employed as an attorney at the Jason R. Williams Law Firm in New Orleans, Louisiana in 2017. Hjortsberg and his spouse were required to file an income tax return for the 2017 tax year by October 15, 2018. He failed to file a return by that date even though he knew he was required to do so. Hjortsberg did not file his return for the 2017 tax year until July 28, 2020.
At the guilty plea hearing, Hjortsberg acknowledged and agreed that restitution is due and payable to the Internal Revenue Service in the amount of $31,651. He faces a maximum penalty of not more than 1 year in prison, a $25,000 fine, or both, at sentencing. The sentencing hearing has been set for June 16, 2021.
The Internal Revenue Service and FBI conducted the investigation and Assistant United States Attorneys Kelly P. Uebinger and David J. Ayo are prosecuting the case.
# # #
National Consumer Bankruptcy Law Firm Agrees to Pay More than $300,000 in Relief to Consumers and to a Six-Year Practice Ban in Settlement with U.S. Trustee ProgramRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a settlement with national consumer bankruptcy law firm Deighan Law LLC, previously known as Law Solutions Chicago and doing business as UpRight Law (UpRight). The settlement is set forth in a consent order entered by the Bankruptcy Court for the District of Montana on March 9 and resolves enforcement actions filed by the USTP over allegations of misconduct relating to UpRight’s representation of Montana consumers as debtors or prospective debtors in bankruptcy cases. As stipulated in the settlement, UpRight has paid or will pay more than $300,000 in monetary relief and will be barred from representing bankruptcy clients in Montana for six years.
As a result of dozens of USTP actions filed since 2016, UpRight has paid or been ordered to pay almost $900,000 in monetary relief, including returning fees to over 500 impacted consumers and paying court-ordered sanctions, attorney’s fees, and costs. Additionally, bankruptcy courts have imposed practice bans against UpRight in at least four jurisdictions.
“Lawyers who misrepresent their services to vulnerable clients and fail to perform as promised harm debtors, creditors, and the integrity of the bankruptcy system,” said USTP Director Cliff White. “This settlement shows that the USTP will continue to hold accountable attorneys who fail to adequately and honestly represent their clients.”
In the current matter, the USTP alleged that UpRight engaged in misconduct and misrepresentations impacting hundreds of Montana consumers, which came to light due to investigations by the USTP in two bankruptcy cases. In one case, UpRight substantially delayed filing its client’s bankruptcy case for almost a year after it misrepresented that it had a local attorney who was licensed in Montana available to file the case. UpRight’s delay resulted in a creditor garnishing more than $6,000 of the debtor’s wages. In the other case, UpRight obtained payment of its attorney’s fees by advising the debtors to participate in an improper scheme whereby they surrendered their vehicle to an out-of-state towing company. Another bankruptcy court previously sanctioned UpRight for implementing the towing program—which it used in more than 200 cases across the country—describing it as a “scam from the start,” and the towing company’s owners were indicted for their role in the scheme. UpRight’s advice resulted in the debtors being sued by their automobile lender for conversion of its collateral.
In the settlement, UpRight does not contest the USTP’s allegations that it engaged in misconduct in the course of its dealings with Montana consumers, including misrepresenting that it had a sufficient number of local Montana-licensed attorneys available to provide adequate bankruptcy representation, misrepresenting to clients the scope of legal services to be provided and the cost of those services, failing to timely provide its clients with written retainer agreements that clearly and conspicuously explained the legal services to be provided and the cost of those services, failing to discuss non-bankruptcy alternatives, failing to adequately supervise the firm’s non-attorney staff (some of whom engaged in the unauthorized practice of law), providing erroneous legal advice, and failing to adequately supervise its Montana “partner” attorneys. This misconduct contributed to UpRight’s substantial delay in filing bankruptcy cases for Montana consumers. In addition, UpRight filed bankruptcy cases for only 109 of the 473 Montana clients from whom the firm collected at least a partial fee.
To resolve the USTP’s allegations of misconduct, UpRight has refunded or will refund more than $300,000 in fees paid by Montana consumers for whom UpRight never filed a bankruptcy case. UpRight also agreed to pay a civil penalty of $10,309 and to return all fees, totaling $3,770, to the debtors in the two cases in which the USTP brought its enforcement actions. Additionally, UpRight will be barred from accepting bankruptcy clients or providing bankruptcy services to consumers in Montana, effective July 2, 2018, through July 2, 2024.
While the agreement resolves disputes with the USTP in the two underlying bankruptcy cases, it does not impact the rights of the debtors in those cases or any other parties or government agencies not participating in the settlement, including other Montana consumers, nor does it impact the USTP’s rights to litigate enforcement actions against UpRight in other jurisdictions or to seek redress in other Montana cases. The two underlying cases are captioned In re Dailey, Case No. 15-61088-7 (Bankr. D. Mont.), and In re Emerson, Case No. 16-60056-7 (Bankr. D. Mont.).
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Nashua Man Sentenced to 120 Months for Drug Trafficking ConspiracyRead the Press Release
CONCORD - Terray Morrison, 32, of Nashua, was sentenced to 120 months in federal prison for conspiracy to distribute, and possess with intent to distribute, controlled substances, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Morrison was one of the leaders of a drug trafficking organization that distributed crack cocaine and other drugs to customers in the Nashua area. During an investigation that included the use of wiretaps, Morrison took orders from customers and sent other members of the conspiracy to make drug deliveries on his behalf. He and his co-conspirators operated two stash houses in Nashua and were responsible for the distribution of substantial quantities of crack cocaine.
Morrison is one of eleven individuals charged with participating in this conspiracy. Nine have pleaded guilty and two are awaiting trial. Several members of the conspiracy have received substantial prison sentences. Melvin Nooks, Jr. was sentenced on April 2, 2020, to 120 months. George Cruz was sentenced on July 30, 2020, to 63 months. Mallory Nooks was sentenced on February 25, 2020, to 60 months. Marvin Morrison was sentenced on May 13, 2020, to 15 months. Don Johnson was sentenced on February 13, 2020, to 42 months. Isaiah Kinard pleaded guilty on December 18, 2019, Lawrence Fortenberry pleaded guilty on January 7, 2020, and William Greenleaf pleaded guilty on January 14, 2020. Kinard, Fortenberry and Greenleaf all await sentencing. Arnetta Harris and Melvin Stanford are scheduled for trial in May of 2021.
Morrison previously pleaded guilty on December 1, 2020.
“Drug traffickers threaten our communities when they peddle crack and other dangerous substances,” said Acting U.S. Attorney Farley. “Thanks to the hard work of the FBI and our other law enforcement partners, this significant drug trafficking organization has been dismantled. As this case shows, we will not hesitate to seek substantial prison sentences for the drug dealers whose actions threaten the citizens of the Granite State.”
“Terray Morrison and his crew pushed vast amounts of crack cocaine and other drugs to customers in the Nashua area, in their continuous quest for illegal profits. He endangered the health and safety of those around him, and with today’s sentence he has finally been held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This collaborative law enforcement effort has dismantled a large-scale drug trafficking organization that has brought danger to our community for years.”
The case was a collaborative investigation that involved the FBI New Hampshire Safe Streets Gang Task Force; the Nashua Police Department; the New Hampshire State Police; the Manchester Police Department; New Hampshire Probation and Parole; DEA; Massachusetts State Police Department; Portsmouth Police Department and the Federal Protective Service. The United States Marshals Service also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Georgiana MacDonald and Anna Krasinski.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###
Missoula man accused of Flathead Valley methamphetamine trafficking admits crimesRead the Press Release
MISSOULA — A Missoula man suspected of trafficking large amounts of methamphetamine in the Flathead Valley and of having five pounds of meth at his shop admitted drug crimes on March 9, Acting U.S. Attorney Leif Johnson said.
Leon Paul Kavis, Jr., 36, pleaded guilty to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth. Kavis faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Kavis was detained pending further proceedings,
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for July 8 before U.S. District Judge Dana L. Christensen. Kavis was detained pending further proceedings.
In court documents filed in the case, the government alleged that Kavis was identified to law enforcement as a source of meth in the Flathead Valley from about November 2019 to November 2020. California authorities also identified Kavis as working with individuals to bring to meth to Montana for distribution.
The government further alleged witnesses would testify that Kavis sold them meth, observed him with pounds of meth, including up to 15 pounds on one occasion, that he always carried a firearm for protection and often had large sums of cash, ranging from $30,000 to $50,000.
The government also alleged that packages were being sent from California to Kavis’ shop in East Missoula. Officers executed a search warrant on one of the packages at the shop and found it contained about five pounds of meth, which is the equivalent of about 18,120 doses. The package was addressed to Kavis’ shop and had Kavis’ number listed.
Kavis contested aspects of the government’s case.
Assistant U.S. Attorney Jennifer Clark is prosecuting the case, which was investigated by the FBI, Missoula Police Department and Flathead County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Michigan Man Indicted in Western PA for Meth PossessionRead the Press Release
PITTSBURGH - One resident of River Rouge, Michigan, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Martell Agee, 31, as the sole defendant.
According to the Indictment, on or about December 1, 2020, Agee possessed with the intent to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment in this case, which was coordinated with the Greene County District Attorney’s Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Miami Man Pleads Guilty to Money Laundering Conspiracy in Connection with Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Yanio Montes De Oca, age 33, of Miami, Florida, pled guilty today to participating in a conspiracy to launder funds derived from a nationwide gas station skimming scheme that involved stealing the banking and personal information of residents of Upstate and Central New York who used the “pay at the pump” feature to make gasoline purchases.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Inspector in Charge Joseph Cronin, Boston Division, United States Postal Inspection Service (USPIS).
As part of his guilty plea, De Oca admitted to being a part of a conspiracy that, between December 2015 and July 2019, laundered thousands of gift cards that were obtained using fraudulent debit and credit cards encoded with information stolen using gas station skimming devices. After obtaining the gift cards from co-conspirators, De Oca sold them on a gift card exchange website using a “bulk seller” account he established in the name of a Florida company he created in 2015 for that purpose. After selling the fraudulently obtained gift cards, De Oca transferred the resulting amounts to bank accounts he controlled. De Oca then distributed some of the money he obtained through gift card sales to other conspirators, retaining the rest of the funds for himself. As part of his plea agreement, De Oca agreed to be subject to a forfeiture money judgment in the amount of $1,020,193.10.
A sentencing hearing is set for July 13, 2021, before Senior United States District Judge Gary L. Sharpe. De Oca faces up to 20 years in prison; a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater; and up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Maryland Woman Sentenced for Role in Money Laundering SchemeRead the Press Release
PITTSBURGH – Nicole Bracey was sentenced to 3 years of probation for conspiring to launder drug trafficking proceeds between 2017 and 2019, Acting United States Attorney Stephen R. Kaufman announced today.
Bracey, age 45 of Waldorf, Maryland, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that Bracey serve 150 hours of community service while on probation.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Marion County man admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Charles Costello, of Fairmont, West Virginia, has admitted to distributing methamphetamine, Acting United States Attorney Randolph J. Bernard announced.
Costello, 52, pleaded guilty today to one count of “Distribution of Fifty Grams or More of Methamphetamine.” Costello admitted to selling 50 grams or more of methamphetamine for $7,500 in July 2020 in Marion County.
Costello is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated. The task force is comprised of the Drug Enforcement Administration, the West Virginia State Police, the Harrison County Sheriff’s Office, the Clarksburg Police Department, and the Bridgeport Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Man Who Brandished Assault Rifle at Black Lives Matter Protest Sentenced to 46 MonthsRead the Press Release
A man who brandished an assault rifle at a Black Lives Matter protest in Lubbock has been sentenced to 46 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Emmanuel Quinones, a 25-year-old local, was charged via criminal complaint in early June and indicted a week later. He pleaded guilty to interstate threatening communications in September and was sentenced on Tuesday by U.S. District Judge James Wesley Hendrix.
“The Department of Justice stands firmly against anyone and everyone who seeks to instill terror and encourage violence,” said Acting U.S. Attorney Prerak Shah. “This sentence sends a clear message that our office will continue to work with our law enforcement partners to apprehend and charge all violent instigators, while protecting those who want to lawfully exercise their constitutional rights.”
“Together, our local, state, and federal partners work to protect those participating in legitimate, peaceful protests,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The intimidating and violent behavior exhibited by Mr. Quinones while individuals exercised their First Amendment rights has been swiftly answered with today’s sentence.”
According to plea papers, Mr. Quinones admitted he brought a loaded Smith & Wesson .223 caliber semi-automatic rifle to a protest decrying the death of George Floyd. He also admitted that, prior to the protest, he posted threatening messages online. For example, in a May 28 Facebook post, he intimated that he planned to obtain gun parts “to off racists and MAGA people.”
In view of the protesters, Mr. Quinones held the rifle at “low ready,” in firing position with the muzzle pointed toward the ground, as panic rippled through the assembled crowd. (Although Texas is an open-carry state, the Texas Penal Code makes it illegal to display a firearm in a public place “in a manner calculated to alarm.”) He refused a Lubbock Police officer’s verbal commands to drop the rifle, and only did so when the officer drew his gun and a protestor moved to tackle him. As he was taken into custody, Mr. Quinones allegedly shouted “this is a revolution” and “President Trump must die.”
The Federal Bureau of Investigation Dallas Field Office, Lubbock Resident Agency, the United States Secret Service, the United States Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
Lubbock Area Bank Robber Sentenced to 20 Years in PrisonRead the Press Release
A Lubbock area bank robber was sentenced to 20 years in federal prison, the statutory maximum, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Eric Dion Warren, 50, plead guilty to bank robbery in August 2020 and was sentenced Tuesday by U.S. District Judge James Wesley Hendrix.
According to court documents, on June 7, 2019, at approximately 12:45 p.m., Mr. Warren entered AIM Bank in Wolfforth, Texas. He approached one of the tellers and placed a paper fast food bag and a demand note on the counter which read: “This is a f------ robbery. Play with me and die. I want $10,000 in 50 and 100 dollar bills now you got 1 minute or I will kill you.” Mr. Warren then pulled out what appeared to be a handgun and said, “I ain’t playing around, I only want 100s and 50s.”
The teller gave Mr. Warren money from her drawer including strapped twenty-dollar bills with recorded serial numbers. After the teller placed the money in Mr. Warren’s bag, he said, “Don’t push any buttons” and then fled the scene with several thousand dollars currency.
Mr. Warren admitted to driving away in a vehicle that had been loaned to him by a car dealership, while the sale of a black BMW was being finalized. Approximately 15 minutes after the robbery took place, Mr. Warren arrived in the loaned vehicle at the car dealership in Lubbock. Mr. Warren began waving the cash that he had illegally obtained from the bank robbery at employees in the car dealership. He entered the dealership’s finance office and attempted to finalize the purchase of the BMW by giving the dealership $3,000 cash as a down payment.
While Mr. Warren was in the dealership’s finance office, an employee received a phone call informing him of the recent bank robbery. The employee realized that the vehicle used in the bank robbery matched the vehicle the dealership had loaned to Mr. Warren and he alerted law enforcement.
Mr. Warren was arrested with $5,086 in cash. The serial numbers of the money found on Mr. Warren’s person were cross-referenced and matched the numbers of the bills stolen from AIM bank. Law enforcement also recovered a painted pellet gun, resembling a real handgun, approximately 10 feet way from Mr. Warren at the time of his arrest. The demand note given to the teller at the bank was analyzed and confirmed the existence of Mr. Warren’s fingerprints and DNA.
The FBI’s Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
KC Man Sentenced for $6 Million Ponzi SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for engaging in a $6 million Ponzi scheme that defrauded dozens of victim investors.
Matthew R. Peterson, 51, was sentenced by U.S. District Judge Howard F. Sachs to eight years and one month in federal prison without parole. The court also ordered Peterson to pay $2,516,010 in restitution to his victims.
On Sept. 10, 2020, Peterson pleaded guilty to one count of bank fraud and one count of money laundering.
Sports Wagering Investment Fraud
Peterson admitted that he operated an investment fraud scheme from 2012 to November 2016. During this scheme, Peterson persuaded at least 37 victims to invest approximately $6 million into sporting wagers.
Peterson lied to prospective investors about being an expert in sports betting in order to carry out his investment fraud scheme. Peterson created fictitious spreadsheets, financial statements and betting reports that indicated the investments were yielding large returns. Peterson, for the most part, did not invest funds on behalf of the investors. Instead, Peterson perpetrated a multimillion-dollar Ponzi scheme through which he fraudulently transferred new investor money to earlier investors, falsely representing these payments as profits earned on their funds invested with him. Peterson used about $3.3 million of the approximately $6 million obtained from investors to make Ponzi-type payments to existing investors.
Peterson spent approximately $565,000 of investor funds on luxury vacations for himself and his family, personal gambling, retail, automobiles, credit card payments, a house, and made cash withdrawals of more than $90,000 of investor money.
Peterson’s widespread criminal activity caused significant financial harm to numerous victims, who invested amounts ranging from $1,000 to $100,000. One of the investors, identified in court documents as T.C., went into business with Peterson. T.C. liquated his 401(k) retirement account and gave the net proceeds to Peterson. Peterson used T.C.’s personal identifiable information without T.C.’s knowledge or consent to obtain an American Express card. Peterson also made additional charges to the card, charging over $248,862 on this card without T.C.’s knowledge. Due to his scheme, financial institutions and credit card companies also incurred a loss of approximately $461,000.
Church Travel Fraud Scheme
According to court documents, Peterson also used his business to establish credibility within his church community as someone with great connections.
Peterson owned and operated AIS Travel, which attempted to find discounted deals for people who wanted to travel. Peterson approached his pastors about helping the church save money with his travel business. Peterson requested the church staff promote his business to church members and, in return, he would donate a portion of the profits to the church.
The pastors declined Peterson’s proposal, but told him they would consider using his business for church staff travel. In November 2016, Peterson approached church staff with a proposal that they should hold their staff retreat in Cancun, Mexico. The cost for approximately 20 people would be $18,000. The church paid Peterson over $16,000 for the airline tickets and room reservations before the date of travel. However, upon arrival at the airport, the church group learned that the tickets had never been purchased, and no reservations were made.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the FBI.
Justice Department Settles Claims Against Toms River, New Jersey over Zoning Code That Restricts Houses of WorshipRead the Press Release
The Justice Department today announced an agreement with the Township of Toms River, New Jersey, to resolve allegations that the Township violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by severely restricting where houses of worship can locate within its jurisdiction.
The proposed consent decree, which was filed today in the U.S. District Court of the District of New Jersey and must still be approved by the court, would resolve a lawsuit the United States also filed today alleging that the Township’s zoning code places unreasonable limits on where religious assemblies and institutions may locate, substantially burdens religious exercise and treats religious assemblies and institutions on less than equal terms with nonreligious assemblies and institution.
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “The Department of Justice has long enforced RLUIPA against zoning regulations that unreasonably burden religious exercise by imposing unwarranted restrictions and conditions on the location of houses of worship.”
“Federal law protects religious communities against unequal treatment and unwarranted burdens,” said Rachael A. Honig, Acting U.S. Attorney for the District of New Jersey. “Zoning regulations that impose unreasonable restrictions or prevent religious faiths from having a place to worship violate RLUIPA. Through the resolution entered today, this office takes another step to put an end to unlawful zoning practices and vindicate the civil rights of minority religious communities in the District of New Jersey.”
The complaint alleges that since 2009, Toms River has enacted a series of revisions to its zoning code—including a ten-acre parcel minimum requirement—which greatly reduced both the number of zoning districts in which houses of worship can locate and the number of sites available for houses of worship. These restrictions have had a particular impact on the Township’s Orthodox Jewish population, who, because of their faith and religious traditions, tend to worship at small houses of worship which they walk to and from on the Sabbath and holidays. The complaint also alleges that the Township’s zoning ordinance treats houses of worship and other religious assemblies and institutions on less favorable terms than nonreligious assemblies and institutions.
As part of the consent decree, the Township will revise its zoning code to: reduce the minimum acreage required for a house of worship in many zoning districts from ten acres to two acres; allow houses of worship as-of-right in certain zoning districts; allow smaller houses of worship to be located on minor collector roads; and treat houses of worship on comparable terms to nonreligious places of assembly. The consent decree also requires the Township to train its officials and employees on RLUIPA’s requirements, establish a procedure for receiving and resolving RLUIPA complaints and other injunctive relief.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or the U.S. Attorney’s Office Civil Right Hotline at (855) 281-3339, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Justice Department Settles Claims Against Toms River over Zoning Code that Restricts Houses of WorshipRead the Press Release
NEWARK, N.J. – The Justice Department today announced an agreement with the Township of Toms River, New Jersey, to resolve allegations that the township violated the Religious Land Use and Institutionalized Persons Act (RLUIPA), by severely restricting where houses of worship can locate within its jurisdiction.
The proposed consent decree, which was filed today in the U.S. District Court of the District of New Jersey and must still be approved by the court, would resolve a lawsuit the United States also filed today alleging that the township’s zoning code places unreasonable limits on where religious assemblies and institutions may locate, substantially burdens religious exercise, and treats religious assemblies and institutions on less than equal terms with nonreligious assemblies and institution.
“Federal law protects religious communities against unequal treatment and unwarranted burdens,” Rachael A. Honig, Acting U.S. Attorney for District of New Jersey, said. “Zoning regulations that impose unreasonable restrictions or prevent religious faiths from having a place to worship violate RLUIPA. Through the resolution entered today, this office takes another step to put an end to unlawful zoning practices and vindicate the civil rights of minority religious communities in the District of New Jersey.”
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “The Department of Justice has long enforced RLUIPA against zoning regulations that unreasonably burden religious exercise by imposing unwarranted restrictions and conditions on the location of houses of worship.”
The complaint alleges that since 2009, Toms River has enacted a series of revisions to its zoning code – including a 10-acre parcel minimum requirement – which greatly reduced both the number of zoning districts in which houses of worship can locate and the number of sites available for houses of worship. These restrictions have had a particular impact on the township’s Orthodox Jewish population, who, because of their faith and religious traditions, tend to worship at small houses of worship, which they walk to and from on the Sabbath and Holidays. The complaint also alleged that the township’s zoning ordinance treats houses of worship and other religious assemblies and institutions on less favorable terms than nonreligious assemblies and institutions.
As part of the consent decree, the township will revise its zoning code to: reduce the minimum acreage required for a house of worship in many zoning districts from 10 acres to two acres; allow houses of worship as-of-right in certain zoning districts; allow smaller houses of worship to be located on minor collector roads; and treat houses of worship on comparable terms to nonreligious places of assembly. The consent decree also requires the township to train its officials and employees on RLUIPA’s requirements, establish a procedure for receiving and resolving RLUIPA complaints, and other injunctive relief.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
The United States is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division, Assistant U.S. Attorney Susan Millenky, of the Civil Rights Unit, Civil Division, and Trial Attorneys Ryan G. Lee and Noah D. Sacks, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Justice Department Files Title VII Sex Discrimination Lawsuit Against Alabama Sheriff’s Office and the Mobile County SheriffRead the Press Release
The Department of Justice announced today that it has filed a lawsuit against the Mobile County Sheriff’s Office, Alabama’s second-largest sheriff’s office, and the Mobile County Sheriff, in his official capacity (collectively, MCSO).
The lawsuit alleges that MCSO discriminated against current and former female corrections officers and other similarly situated female employees on the basis of sex, in violation of Title VII of the Civil Rights Act of 1964, by subjecting them to a sexually hostile work environment. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
The Department’s complaint, filed today in the U.S. District Court for the Southern District of Alabama, alleges that female corrections officers at MCSO were regularly subjected to severe and pervasive sexual harassment in the workplace by male inmates who frequently expose their genitals, masturbate, and direct sexual slurs, sexual propositions, threats of sexual violence and sexually degrading comments towards female employees. The complaint alleges that despite the employees’ numerous reports to MCSO supervisors objecting to the harassment, MCSO did not take the complaints seriously and failed to take prompt and effective action to remedy this harassing conduct.
“Nobody deserves to be sexually harassed while on the job,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “The behavior to which these female employees were subjected is appalling, and the County’s failure to take action to protect its employees from such conduct is inexcusable.”
Twelve female correctional officers employed by the MCSO filed charges of sex discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Justice Department.
Through this lawsuit, the United States seeks monetary relief for the affected female employees and injunctive relief to require MCSO to develop and implement policies that would prevent and remedy sex-based harassment in the future.
Today’s lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
The United States is represented in the case by Senior Trial Attorneys Taryn Wilgus Null, Alicia Johnson, and Juliet Gray of the Civil Rights Division’s Employment Litigation Section.
Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt.
Jury convicts former officer for violating civil rightsRead the Press Release
McALLEN, Texas - A former local police officer has been convicted of sexually assaulting two men while in his custody, announced Acting U.S. Attorney Jennifer B. Lowery.
The federal jury deliberated for approximately two hours before returning guilty verdicts against Matthew Lee Sepulveda on two violations of civil rights following a two-day trial.
Sepulveda, 25, Edinburg, was a former law enforcement officer with the Progreso Police Department. He served from April 17 to July 2, 2019. The jury heard that while acting under his authority as a uniformed police officer, Sepulveda violated performed oral sex on the victims while they were in his custody.
The jury heard from the two victims.
The first explained that after he was arrested, Sepulveda took him from the jail cell and escorted him to another office at the police department. Sepulveda then began asking him questions of a sexual nature and performed oral sex on him. The victim testified because Sepulveda was a police officer, he was scared and did not think he could leave.
The evidence showed Sepulveda’s DNA was found on the victim’s underwear. The jury also heard that Sepulveda logged the victim’s arrest and case after the fact.
The second victim, who was only 17 at the time, was taken to the police department because he was unable to contact his parents subsequent to a traffic stop in which he was a passenger. He described how Sepulveda took him to an office located within the police department where he began asking the victim questions of a sexual nature and also performed oral sex on the victim.
The defense attempted to portray one of the victims as a liar and questioned some of the evidence. The jury was unconvinced and found Sepulveda guilty of two civil rights violations. They also found that on the second count, his conduct resulted in bodily injury and included attempted aggravated sexual abuse, aggravated sexual abuse and kidnapping.
U.S. District Judge Randy Crane presided over trial and set sentencing for May 20. At that time, Sepulveda faces up to life in federal prison.
Previously released on bond, he was taken into custody following the verdict today where he will remain pending that hearing.
The Hidalgo County Sheriff’s Office conducted the investigation with the assistance of the FBI. Assistant U.S. Attorneys Sarina S. DiPiazza and Angel Castro prosecuted the case.
Jury Convicts Richmond Man of Fentanyl TraffickingRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man today for distributing fentanyl on multiple occasions. According to court records and evidence presented at trial, Quotez Tyveck Pair, 33, a known drug trafficker operating in Mosby Court, a Richmond public housing community, engaged in two separate distributions of fentanyl to a law enforcement cooperator. “Fentanyl is 50 times more potent than heroin and is extremely lethal, especially when sold under false pretenses,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This type of conduct has unfortunately helped fuel the fires of the opioid crisis. EDVA will continue to hold accountable individuals who peddle this harmful substance in our communities for profit and risk the lives of our loved ones.”Between October 2019 and November 2019, Drug Enforcement Administration agents utilized a cooperator to execute two controlled drug purchases from Pair. The cooperator, working with law enforcement, purchased one ounce of heroin on October 30, 2019, and two ounces of heroin on November 12, 2019, from Pair. Upon inspection, both substances purchased from Pair were found to be fentanyl.
Pair was found guilty on two counts of unlawfully distributing more than 40 grams of a mixture and substance containing fentanyl. Pair faces a mandatory minimum of five years and a maximum of 40 years in prison when sentenced on May 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after Senior U.S. District Robert E. Payne accepted the verdict.
Assistant U.S. Attorney Olivia L. Norman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-3.
Judge sentences Wayne County man for firearm charge and attempted witness tamperingRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen R. Clark sentenced Donald Sanders to 110 months in prison today. The 63-year-old Williamsville, Missouri resident pleaded guilty, in September, to one count of possession of a firearm by a convicted felon and one count of attempting to intimidate or threaten a government witness.
On January 14, 2019, Sanders was a passenger in a pick-up truck. Officers tried to stop the truck, but the driver sped away and the truck eventually crashed. Officers found four firearms in the truck and recovered another rifle thrown from the truck during the chase and arrested Sanders and the driver. Officers later found a handgun in a motel room in Poplar Bluff that was shared by Sanders and the driver. Investigators soon learned all of the firearms were stolen from residences in Butler County, Missouri.
On February 9, 2019, while in the custody of the Butler County Jail, Sanders had a conversation with a visitor that was recorded. During the conversation, Sanders learned a female acquaintance was a possible witness against him for the firearm charge. Sanders expressed concern that he might be charged in federal court. Sanders directed the visitor to tell the woman, “Black River is very cold right now.” Sanders admitted this statement was an attempt to intimidate the woman into not testifying against him.
Sanders has prior convictions preventing him from possessing firearms.
The Butler County Sheriff’s Office investigated the case. Assistant United States Attorney Keith Sorrell is handling the case for the U.S. Attorney’s Office.
#####
Houston drug trafficker held responsible for moving millions in proceedsRead the Press Release
HOUSTON – A 51-year-old Mexican citizen who legally resided in Houston has been ordered to federal prison for leading a cocaine trafficking organization, announced Acting U.S. Attorney Jennifer B. Lowery.
Aldo Rigoberto Guerra-Guevara pleaded guilty Oct. 23, 2020, to conspiracy to possess with intent to distribute cocaine.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 14-year federal prison sentence. Guerra-Guevara could potentially lose his legal status in the country and face removal proceedings following completion of his sentence. Judge Rosenthal also entered a final order of forfeiture for properties and vehicles used for cocaine trafficking valued at over $500,000.
At the hearing, the court found Guerra was the Houston leader and organizer of a drug trafficking organization responsible for moving millions in drugs and drug money throughout the United States.
Between November 2018 and January 2019, the organization moved over $7.1 million in U.S. currency and at least 486 kilograms of cocaine valued at over $12.5 million. Guerra-Guevara served as the Houston leader and also oversaw locations where drugs and money were stored for distribution.
The investigation culminated Jan. 18, 2019, when authorities seized 50 kilograms of cocaine from Silvano Adame Jr., 52, Galena Park; and over $687,000 in U.S. currency from Alejandro Valenzuela-Razo, 41, Laredo. They also pleaded guilty as did Hermes Tomasichi-Ledezma, 46, Monterrey, Mexico and Aldo Fernando Soto, 34, Houston. They are all pending sentencing and face up to 40 years in prison.
Two others - Eluid Alejandro Rodriguez Garcia, 41, and Jose Guillermo Ramirez, 41, both of Monterrey, Mexico – are also charged but not as yet in custody. They are considered fugitives and warrants remain outstanding for their arrests.
Guerra-Guevara has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and IRS - Criminal Investigation conducted the two-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Dirty Dingo.
This operation is part of an OCDETF Strike Force Initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.
The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates and that impact Houston and south Texas.
Assistant U.S. Attorney Edward F. Gallagher prosecuted the case.
Honduran Man Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Erick Edgardo Amaya, 42, an illegal alien from Honduras, pled guilty yesterday before U.S. District Judge Taylor B. McNeel to unlawful return of an alien after removal, announced Acting U.S. Attorney Darren J. LaMarca and Michael J. Harrison, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector. Amaya is scheduled to be sentenced on June 9, 2021 at 10:00 a.m. by Judge McNeel, and faces a potential maximum of two years in prison, one year of supervised release, a $250,000 fine and removal proceedings.
In September 2020, the U.S. Border Patrol began investigating activities of Amaya following receipt of information indicating he had been officially removed from the United States, and had unlawfully returned to the Biloxi area. On November 11, 2020, a Border Patrol agent conducted a traffic stop of a vehicle driven by Amaya. A second Border Patrol agent arrived on the scene and the agents confirmed Amaya’s identity. He was arrested and transported to the Gulfport Border Patrol Station.
Further investigation revealed that Amaya had been previously arrested by the U.S. Border Patrol in Biloxi in 2008. He had been lawfully removed to his home nation of Honduras on June 12, 2008 and had unlawfully returned to the United States.
Acting U.S. Attorney LaMarca praised the efforts of the U.S. Border Patrol and the Department of Homeland Security. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Heroin Dealer Receives Federal Prison SentenceRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that Trashaun Black, 28, of Wilmington, was sentenced by the Honorable Leonard P. Stark to 50 months in prison after a Drug Enforcement Administration (“DEA”) investigation in Wilmington, Delaware. According to court documents, the Defendant was arrested in April 2019 for selling heroin to a DEA informant. As referenced in open court at today’s sentencing hearing, the DEA’s investigation of Mr. Black originated with an overdose death in Middletown, Delaware.
U.S. Attorney Weiss stated, “In tandem with our law enforcement partners on the First State Overdose Taskforce, my office will continue to pursue drug dealers linked to a fatal drug overdose. If you are peddling heroin for profit, we will bring the full force of the federal justice system to ensure your removal from our streets.”
At the same time, the United States Attorney’s Office is committed to helping those who suffer from substance abuse. While COVID-19 has made access to drug addiction treatment more difficult for many, it need not remain a barrier. If you need help, drug treatment information is available any time through the federal Substance Abuse and Mental Health Services Administration’s Treatment Referral Routing Service, found online at dpt2.samhsa.gov/treatment/ or by dialing 1.888.545.2600. Don’t let the pandemic stop you from beginning treatment.
This case was investigated by DEA Group 41, as part of the First State Overdose Taskforce, with assistance from the Middletown and New Castle County Police Departments. Assistant U.S. Attorney Christopher L. de Barrena-Sarobe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 19-CR-00095 (LPS).
Hartford Man Sentenced to 27 Months in Federal Prison for Possessing Loaded Gun While on Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that RAKEEM GRANT, 32, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 27 months of imprisonment, followed by three years of supervised release, for possession of a firearm and ammunition as a convicted felon, and while he was on supervised release following a prior federal conviction for the same offense.
According to court documents and statements made in court, in April 2017, Grant was convicted in state court of possession of a pistol without a permit. On April 23, 2018, Hartford Police arrested Grant after he was found in possession of a loaded .40 caliber handgun outside of nightclub that has been a hotspot for shootings and violence on Main Street in Hartford. He subsequently pleaded guilty in federal court to possession of a firearm by a convicted felon and, on March 28, 2019, was sentenced to six months of imprisonment, with credit for time served, and three years of supervised release. Grant was released from federal prison approximately one month later.
On August 28, 2020, Hartford Police arrested Grant after they found him in possession of a loaded Taurus G2S .40 caliber handgun. He was on federal supervised release at the time of his arrest.
Grant has been detained since his arrest. On November 24, 2020, he pleaded guilty to possession of a firearm and ammunition by a convicted felon.
Judge Meyer sentenced Grant to 21 months of imprisonment for possessing the firearm, and an additional six months of imprisonment for violating his conditions of supervised release.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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.
Grand Jury Indicts Jamestown Man on Multiple Child Pornography Charges Including Enticement and ProductionRead 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 a federal grand jury has returned a three-count indictment charging Richard Lafrance, 34, of Jamestown, NY, with enticement, production of child pornography, and committing certain crimes while required to register as a sex offender. The charges carry a minimum sentence of 45 years in prison, and a maximum penalty of life.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment and a previously filed complaint, in April 2019, the defendant met and began communicating via email and text message with a 14-year-old Minor Victim (MV1). The communications between Lafrance and MV1 were sexually explicit and included the defendant requesting that MV1 send him naked pictures. In addition, Lafrance met up with MV1 on at least two occasions to engage in sexual intercourse.
In 2006, the defendant was convicted in Oregon of two counts of second degree rape and one count of second degree sexual abuse, and as a result, he is a registered Level III sex offender.
The defendant was arraigned today before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained.The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James B. Quattrone.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Georgia Man Sentenced to Three Years for Nationwide Bank Fraud and Identity Theft SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sean Christopher Williams, 40, of Sandy Springs, GA, was sentenced to three years in prison, five years of supervised release, and ordered to pay $185,920 in restitution by United States District Court Judge John R. Padova for a nationwide bank fraud and identity theft scheme.
In February 2020, the defendant pleaded guilty to one count of bank fraud and attempt, and one count of aggravated identity theft. Williams used stolen identities to open fraudulent accounts at multiple banks, but he left the accounts unfunded. Williams then repeatedly transferred “funds” from one fraudulent account to another, knowing that the transferring account did not have any funds to support the transfer. Williams quickly used the receiving account to pay a variety of financial accounts in his name, including credit cards and student loans, before the receiving bank determined no funds were incoming. This scheme resulted in more than $185,000 in losses to the banks and impacted around 35 individual victims whose names and social security numbers were attached to the fraudulent accounts.
“This was a sophisticated fraud scheme with many victims from across the country, and it took top-notch investigative work to unravel,” said Acting U.S. Attorney Williams. “Financial fraud and identity theft is often financially devastating for victims. Prosecuting these cases will continue to be a top priority of the United States Attorney’s Office.”
“Sean Williams not only defrauded multiple banks, he dragged dozens of innocent people into his scheme by stealing their identities,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The impacts of identity theft can be serious and far-reaching for victims. Whether you take money that’s not yours or someone else’s personal information, the FBI is going to ensure you’re held accountable.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi.
Fresno County Woman Arrested for over $790,000 in Crop Insurance FraudRead the Press Release
FRESNO, Calif. — On March 10, 2021, Jatinderieet “Jyoti” Sihota, 34, of Selma, was arrested on a federal indictment charging her with conspiracy to commit mail fraud and mail fraud for the submission of over $790,000 in fraudulent crop insurance claims, Acting U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today following her arrest.
According to court records, from at least November 2013 through September 2016, Sihota controlled her family’s farms in Fresno and Tulare Counties that produced table grapes, plums, and other crops. The crops were sold through fruit brokers in California’s Central Valley to supermarket chains and other third-party buyers.
Throughout this period, Sihota and others caused her family’s farms to obtain federally backed crop insurance policies through the U.S. Department of Agriculture Risk Management Agency’s Federal Crop Insurance Program. They then submitted fraudulent insurance claims for crop losses due to excessive heat, rain, and other reasons that did not actually occur.
Sihota and others, including individuals at the produce brokers through which the crops were sold, altered records to misrepresent the varieties, quantities, and other information regarding the crops that were sold and submitted the records to the insurance program to support the fraudulent claims. These misrepresentations established sufficient crop losses to obtain insurance payments. When the insurance loss adjusters contacted Sihota and others to confirm the accuracy of the representations, they confirmed that the representations were accurate and complete, but in actuality, they were not.
This case is the product of an investigation by the U.S. Department of Agriculture’s Office of the Inspector General and the USDA Management Agency’s Special Investigations Staff. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Sihota faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 for each of the conspiracy and mail fraud charges. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which consider several variables. The charges are only allegations; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Former Roswell Park Nurse Pleads Guilty to Tampering with Medications Intended for PatientsRead 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 Kelsey A. Mulvey, 28, of Grand Island, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to tampering with a consumer product. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
“This case highlights the self-destructive power of addiction and the lengths to which those struggling with substance use disorder will go,” stated U.S. Attorney Kennedy. “This defendant took medications intended to treat cancer patients to feed her own addiction, hurting those who were seriously ill or dying. This case illustrates just how widespread and devastating the damage caused by a one person’s addiction can be.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who tamper with medicines put patients’ health at risk,” said Special Agent-in- Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations, New York Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique positions and compromise patients’ health and comfort by criminally tampering with needed drugs.”
“Kelsey Mulvey's plea today to tampering with powerful narcotics intended to ease the suffering of cancer patients here in Buffalo painfully resonates with the thousands of families who have personally faced the challenges and torment that comes with the crippling affliction of cancer,” said FBI Buffalo Field Office Special-Agent-in-Charge Stephen Belongia. “Although the pain of addiction takes its own toll on those who suffer from it, it cannot and does not excuse medical professionals who intentionally compromise the health and comfort of cancer patients who deserve to receive safe and unadulterated medication meant to ease their pain.”
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that between July 21, 2016, and July 13, 2018, the defendant worked as a registered nurse at Roswell Park Comprehensive Center. Between February and June 2018, Mulvey tampered with and stole controlled medications, including Dilaudid, from various medication dispensing machines located throughout the hospital, which tracked and held controlled substances meant for Rowell Park patients. She did so to satisfy her addiction.
Specifically, the defendant would conduct a transaction at a dispensing machine, quickly cancel the transaction and leave the medication drawer open, open the vial and remove the hydromorphone, replace it with water, and place the vial back into the machine so the total count of vials would not trigger scrutiny. Over time, Mulvey utilized the patient medical record database to search for patients specifically prescribed hydromorphone, because to access the dispensing machine, the defendant had to first access patient profiles. At times, Mulvey would divert vials of controlled medications from the dispensing machine and not administer the medication to any patient.
On June, 27 2018, the defendant had a scheduled vacation day, however, she was observed accessing a dispensing machine, carrying a backpack, and exiting a medication room in which she was not assigned. It was later determined that Mulvey had accessed the drawer for hydromorphone. The defendant was subsequently placed on administrative leave and resigned in lieu of termination.
From June to July 2018, there was a spate of waterborne infections at Roswell Park, during which six patients became ill. An investigation by the hospital concluded that tampering of compounded hydromorphone vials was the cause. On June 27, 2018, seven hydromorphone vials were removed from the dispensing machines, which were involved in the defendant’s conduct. Four out of seven grew the waterborne bacteria and had approximately 80% of the hydromorphone removed and replaced. Roswell Park tested another set of vials and concluded that three out of four vials had a substantial percentage of hydromorphone removed and replaced and waterborne bacteria.
The plea is the culmination of an investigation by the Food and Drug Administration, Office of Criminal Investigations, under the direction of Special Agent in Charge Jeffrey Ebersole; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Department of Education, Office of Professional Discipline; and the New York State Attorney General’s Office, under the direction of Attorney General Letitia James.
Sentencing will be scheduled at a later date.
# # # #
Former LMPD Officer Sentenced for Civil Rights' Violation - Explorer ProgramRead the Press Release
LOUISVILLE, KY. – United States District Judge Rebecca Grady Jennings sentenced Brad Lee Schuhmann today to two years’ probation, six months home detention, sex offender registration, and a $2000 fine announced Acting United States Attorney Michael A. Bennett. Schuhmann, 32, originally of Louisville, Kentucky, previously pled guilty before Judge Jennings for deprivation of rights under the color of law. Under the terms of his Plea Agreement, Schuhmann will register as a sex offender.
“This sentencing concludes the third federal prosecution in connection with the LMPD Explorer Program,” stated Acting U.S. Attorney Bennett. “I commend AUSA Lawless and the men and women of the Louisville FBI and LMPD who conducted the investigations into criminal conduct associated with the program.”
According to the Plea Agreement, from May 2002 until April 2009, Schuhmann participated in the Louisville Metro Police Department Explorer Program as an Explorer. In April 2009, he applied for an LMPD sworn officer position. Several people associated with the Explorer Program, including the director of the program and other advisors, wrote letters of recommendation for Schuhmann. LMPD hired Schuhmann as a police officer. Upon completion of the training academy, he was sworn in and took the oath of office on January 29, 2010. Schuhmann remained involved in the Explorer Program during his training period and took on a more formal advisor role after being sworn in as a police officer with LMPD.
While working with the Explorer Program as an advisor, Schuhmann met Jane Doe, a minor participating in the program as an Explorer. The two communicated by cellular telephone, including texting. Schuhmann met Jane Doe outside of Explorer Program activities, including at her home and other locations in Louisville. During these meetings and communications, Schuhmann was in a position of authority or special trust, due to his role as an advisor with the Explorer Program, and he came into contact with Jane Doe as a result of that position. When the two met at her home and other locations, Schuhmann subjected Jane Doe to sexual contact.
Assistant United States Attorney Jo E. Lawless prosecuted the Explorer Program cases. The investigations were conducted by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department’s Public Integrity Unit as part of the Louisville Public Corruption and Civil Rights Task Force.
####
This case was brought as 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Employee of Veterans Affairs Medical Center Charged with Stealing More Than $8.2 Million Worth of HIV MedicationRead the Press Release
NEWARK, N.J. – A former pharmacy technician was arrested today for stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Lisa M. Hoffman, 48, of Orange, New Jersey, is charged by complaint with theft of medical products, specifically HIV medication. Hoffman is scheduled to make her initial appearance by videoconference before U.S. Magistrate Judge Mark Falk this afternoon.
According to documents filed in this case and statements made in court:
Hoffman’s responsibilities at the VAMC included ordering the necessary drugs and supplies for the outpatient pharmacy, including determining when to place orders and for what products, as well as regularly maintaining inventory levels of needed drugs and supplies. From at least August 2017 through November 2019, Hoffman used her position to steal prescription HIV medication from the VAMC. She placed large orders for HIV medication, purportedly on behalf of VAMC, and then stole the medication after it was delivered. VAMC surveillance footage captured Hoffman regularly taking dozens of bottles of HIV medications from the shelves of the outpatient pharmacy, placing them in a white mail bin, and then transferring the medications from the mail bin to her bag and exiting with the stolen medication. Hoffman stole approximately $8.2 million worth of the VAMC’s HIV medication.
Once Hoffman had the medication, Hoffman met her associate, Wagner Checonolasco, aka “Wanny,” 33, of Lyndhurst, New Jersey, often at her residence, so that she could sell the stolen HIV medication to Checonolasco for cash. After obtaining the stolen HIV medication, Checonolasco resold it to others.
Checonolasco was previously charged with conspiracy to steal government property. Those charges remain pending.
The charge of theft of medical products is punishable by a potential penalty of 20 years in prison, and a fine of $1 million, or three times the economic loss attributable to the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former City of Rochelle Employee Pleads Guilty to Fraudulently Obtaining at Least $150,000 from a Non-Profit Business AssociationRead the Press Release
ROCKFORD — A former employee of the City of Rochelle, Ill., pleaded guilty Tuesday to wire fraud for fraudulently obtaining at least $150,000 from a non-profit business association.
SCOTT KOTESKI, 58, of Rochelle, was selected by the city to sit on the board of directors of a non-profit business association that provided broadband internet technology to smaller municipalities in northern Illinois. According to a plea agreement, Koteski in 2011 began serving as the association's treasurer, handling the invoicing and billing of member municipalities. Koteski as of February 2012 had signatory authority on the association’s bank account. From September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent. Koteski wrote numerous checks to himself from the association’s bank account, which he deposited into his personal bank account for his personal benefit. Koteski concealed his acts by writing false information on the memo line to make it appear the checks were for reimbursement of personal monies Koteski spent for the association, when, in fact, Koteski was not entitled to reimbursement.
Additionally, according to the plea agreement, Koteski in 2018 made online payments from the association’s bank account to a credit card company to pay balances on his personal credit card, and to an online loan financing company to pay balances on a loan.
Wire fraud is punishable by a maximum sentence of 20 years in federal prison. U.S. District Judge Iain D. Johnston set sentencing for June 29, 2021, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Illinois State Police assisted in the investigation. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former Chief Operating Officer of Global Premier Soccer Pleads Guilty in Visa Fraud SchemeRead the Press Release
BOSTON – The former Chief Operating Officer of Global Premier Soccer (GPS), a now defunct youth soccer organization formerly based in Waltham, Mass., pleaded guilty today in connection with a wide-ranging visa fraud conspiracy.
Justin Capell, 39, of Southborough, Mass., pleaded guilty to conspiracy to commit visa fraud. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 23, 2021.
According to court documents, from at least 2016 to October 2019, Capell conspired with other GPS executives and employees, and with GPS’s outside counsel, to defraud several federal agencies by submitting fraudulent visa petitions in order to secure work visas for hundreds of GPS employees.
Specifically, it is alleged that Capell and his co-conspirators arranged to file fraudulent visa petitions on behalf of at least seven professional soccer teams in order to secure visas for GPS’s foreign coaching staff. The petitions falsely stated that the beneficiaries would be working as scouts or assistant coaches for the professional teams when in reality they were employed only as youth soccer coaches by GPS. As part of the conspiracy, Capell and, allegedly, others, submitted phony employment contracts between professional teams and the purported beneficiaries. It is also alleged that Capell and co-conspirators created fraudulent coaching licenses for the beneficiaries, which were included as part of the visa application packages. A second facet of the conspiracy involved the filing of fraudulent visa petitions for foreign workers who were scheduled to work for GPS affiliates in one part of the country, but who were sent to work in different parts of the United States.
In some instances, it is alleged that conspirators directed visa beneficiaries to mislead U.S. immigration officials – providing them with detailed instructions on how to answer questions during their visa interviews.
In May 2020, Gavin MacPhee, a former GPS employee, pleaded guilty to destroying records in connection with this investigation.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge are based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State's Diplomatic Security Service (DSS), Boston Field Office made the announcement today. Valuable assistance was also provided by U.S. Citizenship and Immigration Services, Fraud Detection and National Security Unit in Vermont. HSI’s Document & Benefit Fraud Task Force, a specialized investigative group comprised of various local, state and federal agencies, conducted this investigation. Assistant U.S. Attorney Mackenzie A Queenin and Jordi de Llano, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The co-conspirators are presumed innocent unless and until charged and proven guilty beyond a reasonable doubt in a court of law.
Former Bristol Resident Sentenced to 51 Months in Prison for Dealing Fentanyl and CrackRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ELKIE CRUMP, also known as “40,” 39, was sentenced today by U.S. District Judge Janet C. Hall to 51 months of imprisonment, followed by three years of supervised release, for fentanyl and crack cocaine distribution offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in December 2019, the DEA’s New Haven Tactical Diversion Squad and Bristol Police Department began an investigation into Crump after receiving information that Crump, who formerly resided on Davis Drive in Bristol, was distributing fentanyl. On three occasions in January and February 2020, investigators made controlled purchases of fentanyl from Crump.
On March 3, 2020, Crump was arrested in West Hartford where he was residing as a condition of his state parole. At the time of his arrest, Crump possessed approximately 14 grams of crack cocaine, and an additional quantity of fentanyl. On that date, a related search of a Davis Drive residence revealed a 9mm handgun that Crump had possessed.
Crump has been detained since his arrest. On September 10, 2020, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl, and one count of possession with intent to distribute cocaine base (“crack”).
Crump’s criminal history includes five state convictions for drug-related offenses.
The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Meriden, New Britain, West Haven and Watertown Police Departments.
This case was prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Former Bookkeeper Admits to Stealing from San Diego BusinessRead the Press Release
Assistant U. S. Attorneys Eric Olah (619) 546-7540 and Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – March 9, 2021
SAN DIEGO – Arthur Jason “AJ” Morales of Pahrump, Nevada pleaded guilty in federal court today to a wire fraud charge, admitting that while employed as a bookkeeper for a San Diego lighting company, he abused his access to the company’s checkbook and issued himself 28 unauthorized checks totaling more than $183,000.
In a hearing before U.S. Magistrate Judge Mitchell D. Dembin, Morales admitted he issued the checks—sometimes forging the signatures of company management on them—to his personal business, “AJ’s Tax & Bookkeeping Service,” and deposited them into his personal bank account. He then concealed the payments by manipulating the company’s accounting records to make it appear that each check was issued for a legitimate business expense to a third-party vendor. The company realized Morales’ fraudulent activity in March 2016 when it discovered a check in the amount of $16,274 that Morales had issued to his personal business and cashed.
"The impact of fraud on small businesses can be devastation," said Acting U.S. Attorney Randy Grossman. "This defendant abused his position of trust to enrich himself, and he has been held to account for his crime." Grossman praised prosecutors Eric Olah and Seth Askins and FBI agents for their excellent work on this case.
“Accountants stealing money from an employer's coffers is the ultimate violation of fiduciary trust and can be a violation of federal law,” said FBI Special Agent in Charge Suzanne Turner. “In this case, the FBI investigation revealed Arthur Morales fraudulently wired money to his personal bank account in regular increments over seven months, totaling approximately $183,408.02. Today's conviction shows the FBI's commitment to investigating financial crimes that affect San Diego businesses.”
Morales is scheduled to be sentenced on June 7, 2021 before U.S. District Judge Larry Burns.
DEFENDANT Case Number 20-CR-2348-LAB
Arthur Jason Morales Age: 42 Pahrump, Nevada
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine, or twice the gain/loss, whichever is greater.
AGENCY
Federal Bureau of Investigation
Former Ag. Commodities Business Employee Sentenced for Wire FraudRead the Press Release
Acting United States Attorney Jan Sharp announced that Omer Sagheer, 48, of Omaha, Nebraska, was sentenced today in federal court in Omaha by United States District Judge Brian C. Buescher to 12 months’ and one day imprisonment for wire fraud. After his release from prison, Sagheer will begin a three-year term of supervised release. There is no parole in the federal system. Restitution in the amount of $232,390.39 was paid in full.
An investigation conducted by the Federal Bureau of Investigation determined that Sagheer was employed as Treasurer with The Scoular Company located in Omaha. Scoular is engaged in the purchase, sale, and transportation of agriculture commodities. During his employment, Sagheer had access to the company’s bank accounts and other financial documents, including checks made payable to Scoular. From February 2017 through July 2019, Sagheer fraudulently endorsed and deposited into his personal bank account checks made payable to Scoular. Sagheer would typically deposit the checks through ATM machines into his personal bank account in order to avoid detection and to hide the fraud from his employer. Once the check was deposited into Sagheer 's bank account, he would electronically transfer funds from the bank account to financial accounts located in the United States and Canada.
The FBI determined that between February 2017 and July 2019 Sagheer endorsed and deposited into his personal bank account approximately 10 checks which totaled approximately $232,390.39. The fraudulently deposited funds were used by Sagheer to pay for his personal “lifestyle” spending, which included expenses incurred during trips to Las Vegas, Nevada, and Canada; the purchase of a 2019 Mercedes-Benz convertible; numerous withdrawals of cash; and personal credit card payments.
FBI Omaha Special Agent in Charge Eugene Kowel said, “Omer Sagheer violated the trust of his employer, who gave him a position of leadership. Instead of honoring that trust, he enriched himself at the expense of his employer. The FBI, with our partners, will always aggressively pursue those who commit financial fraud and make sure they are held accountable.”
This case was investigated by the Federal Bureau of Investigation.