Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 March 2021
Former National President of Children's Blanket Charity Sentenced for Stealing More Than $400,000 from the OrganizationRead the Press Release
PEORIA, Ill. –The former national president of Project Linus, Carol Babbitt, 61, was sentenced to more than two years in prison for stealing money from the not-for-profit organization. Project Linus provides handmade blankets for children who are seriously ill, traumatized, or in need. Babbitt, currently of Asheville, N.C., was ordered to serve 30 months in prison and to pay restitution in the amount of $410,250 to Project Linus and $7,856 to the Illinois Department of Revenue. Babbitt was ordered to report to the federal Bureau of Prisons on May 11, to begin serving her prison term.
At the March 4th hearing, prior to sentencing, Babbitt formally entered pleas of guilty to all counts of the indictment which charged her with five counts of mail fraud, eight counts of wire fraud, and five counts of money laundering. Members and directors of the Project Linus organization attended the hearing and provided victim impact statements detailing their devotion to the work of Project Linus and the detrimental impact of Babbitt’s crime to the organization and them personally.
Babbitt served as the organization’s national president, from 2000 to 2016, when Babbitt and the charity’s headquarters were in Bloomington, Ill. In that capacity, she controlled the charity’s operations, including its bank accounts. In 2010, Babbitt began using Project Linus credit cards to pay for personal expenses, including clothing, electronics, pet grooming, furniture, tickets for sporting events, and personal travel. Babbitt used the charity’s funds to make credit card payments, and falsely classified the expenditure in the business ledger to hide her personal use of the funds.
In addition, Babbitt filed false and fraudulent personal tax returns with the state of Illinois in which she failed to report the funds she stole from Project Linus.
The Internal Revenue Service, Criminal Investigation Division; the U.S. Postal Inspection Service; the Illinois Department of Revenue; and the Bloomington Police Department conducted the investigation. Supervisory Assistant U.S. Attorney Darilynn J. Knauss represented the government in the case prosecution.
Former Member of the Latin Kings Department of Correction Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former Leader of the Massachusetts Department of Correction Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering charges.
Vincent Dzierwinski, a/k/a “King Vice,” pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 9, 2021.
As detailed in court filings, the Latin Kings carry disputes and related gang violence into the jails and prisons where Latin Kings members are incarcerated. Dzierwinski admitted to participating in three violent incidents taking place in Massachusetts Department of Correction facilities from 2016 through 2019, while he was incarcerated on various state court sentences. These incidents involved participating in beatings and multiple incidents where victims were stabbed by other Latin Kings members. Following Dzierwinski’s release from his state court sentences, he has been held in federal custody.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Dzierwinski is the 38th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Maryland Tax Preparer Pleads Guilty to a Federal Tax Fraud ConspiracyRead the Press Release
Greenbelt, Maryland – Anita Fortune, age 56, of Alexandria, Virginia, pleaded guilty today to conspiracy to defraud the United States and to assisting in the preparation and filing of false tax returns.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to her guilty plea, Fortune was convicted of wire fraud in 2007 resulting in her Internal Revenue System (IRS) e-filing privileges being revoked. Following her release from prison, co-conspirator 2 agreed to allow Fortune to use co-conspirator 2’s unique electronic filing identifiers, in exchange for a fee of $29 per tax return. Beginning in 2012, Fortune and co-conspirator 2 agreed to operate a business that would allow Fortune to misrepresent her identity on the clients’ tax returns by using co-conspirator 2’s identifiers to prepare and electronically file client tax returns with the IRS. In August 2015, the IRS expelled co-conspirator 2 from its electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed with co-conspirator 2’s unique identifiers. At that time co-conspirator 3, who was also participating in the IRS’s electronic tax return filing program agreed to allow Fortune and co-conspirator 2 to use co-conspirator 3’s unique identifiers in exchange for the use of Fortune and co-conspirator 2’s shared office space in Temple Hills, Maryland.
Fortune and co-conspirator 2 misrepresented their identities on their clients’ tax returns by using co-conspirator 3’s identifiers to prepare and electronically file the tax returns with the IRS. Co-conspirator 3 also joined in Fortune and co-conspirator 2’s practice of falsifying tax returns and fraudulently claiming refunds. Specifically, Fortune, co-conspirator 2, and co-conspirator 3 falsified tax returns by: fabricating, inflating, and improperly claiming deductions on the Schedules A that were attached to clients’ federal individual income tax returns; and engineering business losses by fabricating, inflating, and improperly claiming purported business expenses. As a result, Fortune, co-conspirator 2, and co-conspirator 3 artificially lowered their clients’ taxable income, thereby lowering the taxes that the clients owed to the IRS and inflating their refunds.
On December 15, 2017, co-conspirator 3 was also expelled from the IRS’s electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed using co-co-conspirator 3’s unique identifiers. Co-conspirator 3 then misled a third-party electronic return originator (“ERO”) about the criminal nature of her issues with the IRS in order to obtain their assistance. The ERO allowed co-conspirator 3 to file tax returns using its unique identifiers, which co-conspirator 3 shared with Fortune and co-conspirator 2. Using the ERO’s identifiers, Fortune and her co-conspirators continued to prepare and file fraudulent federal tax returns through at least April 2019.
In total, the tax loss caused to the IRS as a direct result of Fortune and her co-conspirators’ conspiracy for the tax years 2012 through 2018 was $189,748. As part of her plea agreement, Fortune will be required to pay restitution in the full amount of the loss, which the parties stipulate is at least $189,748.
Fortune faces a maximum sentence of five years in federal prison for the conspiracy and three years in federal prison for aiding and assisting in the preparation and filing of false tax returns. U.S. District Judge Paul W. Grimm has scheduled sentencing for June 4, 2021 at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Trial Attorney Kathryn Sparks of the Tax Division, who are prosecuting the case.
Former Alpine Resident Admits Lying to Agents about Creating Fake Racist MessageRead the Press Release
In Alpine today, 26-year-old Devon Portillo admitted to lying to FBI agents during an investigation into the source of a racist text message purportedly sent by Portillo’s election opponent, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Luis Quesada, El Paso Division.
Appearing before U.S. Magistrate Judge David B. Fannin, Portillo pleaded guilty to one count of making a false statement to a federal agent. By pleading guilty, Portillo admitted that in June 2020, he was running for election against another candidate when FBI agents interviewed him about a racist social media text falsely attributed to his opponent. Portillo denied creating the racist text message. He later contacted the FBI and advised that the text was authored by another individual whom he identified to investigators. However, in a subsequent interview with FBI agents, Portillo admitted that he had indeed authored the fake text message and that the individual he identified as the author of the text had nothing to do with its creation.
Portillo faces up to five years in federal prison. He remains on bond pending sentencing. Sentencing has yet to be scheduled.
The FBI investigated this case. Assistant U.S. Attorney Mallory J. Rasmussen is prosecuting this case.
#####
Florida Woman Sentenced to Six Months for Selling Counterfeit Medical DevicesRead the Press Release
LEXINGTON, Ky. - A Hollywood, Florida, woman, Janaina Nascimento, 38, was sentenced on Thursday, by U.S. District Judge Karen Caldwell, to six months in federal prison, after previously being convicted of selling counterfeit Ethicon Surgicel® Original Hemostat (“Surgicel”), an absorbable surgical mesh used to control bleeding, that was ultimately purchased by the University of Kentucky Medical Center.
Nascimento pled guilty to one count of introducing into interstate commerce a “misbranded” medical device, in violation of the Food, Drug, and Cosmetic Act. In her plea agreement, Nascimento admitted that in January 2019, she purchased 70 boxes of Surgicel from a distributor in the United Arab Emirates. When she attempted to re-sell the product to a United States purchaser, that buyer cautioned her that the Surgicel was not authorized for sale in the United States, pointing to a warning label on the box that stated “NOT FOR RE-EXPORT TO THE U.S.A.” Instead of investigating potential problems with the Surgicel, Nascimento removed individual packages of the product from their boxes with the warning label, and sold 828 such packages to a company called XS Supply, LLC, which then resold those 828 units to the University of Kentucky Medical Center, in April 2019. After complaints from several surgeons about the product, an investigation determined that the 828 units of Surgicel sold by Nascimento were a non-sterile counterfeit.
Following her term of imprisonment, Nascimento will be on supervised release for a period of one year, during which time she will be prohibited from operating or working for any company engaged in the sale of medical devices. Nascimento also paid restitution of $24,012 to the University of Kentucky Medical Center.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office; and Phillip Burnett, Jr., Acting Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Paul McCaffrey.
Florida Man Sentenced to Interstate Transportation of Stolen Bicycles Taken from Multiple Bike Rental ShopsRead the Press Release
BOISE – Bradley Knirnschild, 27, of Kissimmee, Florida, was sentenced in U.S. District Court to two years in federal prison for interstate transportation of stolen goods, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye also ordered Knirnschild to pay nearly $15,000 in restitution and serve three years of supervised release following his prison sentence. Knirnschild pleaded guilty to the charge on December 17, 2020.
According to court records, in early July 2019, Knirnschild rented a U-Haul van in Florida, which was to be returned within one day. Knirnschild, however, never returned the U‑Haul van. Instead, Knirnschild used the U-Haul van to steal approximately two dozen high‑end bicycles in multiple states across the county in a scheme where Knirnschild would rent high-end bicycles and then transport the bicycles to another state with the intent to sell the them primarily at pawn shops. The scheme resulted in a total loss of more than $40,000 to bicycle shops across the country.
According to court records, Knirnschild specifically pleaded guilty to renting eleven high-end bicycles from bicycle shops in Nevada and Washington in early August 2019. Knirnschild then transported the bicycles to Boise where he attempted to sell some of the bicycles at a local pawn shop. When law enforcement arrested Knirnschild in the U-Haul, they discovered the eleven bicycles, which were estimated to have a combined value of more than $5,000. Law enforcement also recovered approximately $14,000 in cash from the U-Haul van.
This case was investigated by the Boise Police Department.
# # #
Florida Man Arrested in Connection with Summer Camp Fraud and Identity TheftRead the Press Release
BOSTON – A Florida man was arrested today on charges that he allegedly stole tuition and deposits from families who planned to send children to sports camps in the Boston area in July and August 2019.
Mehdi Belhassan, 52, of Tampa, Fla., was charged in an indictment on two counts of wire fraud and one count of aggravated identity theft. Belhassan will make an initial appearance in the Middle District of Florida today.
According to the charging document, beginning in the fall of 2018, Belhassan falsely claimed to have a venue for his annual MB Sports Camps, first at a Boston-area university, and then at a Boston-area college. Based on this representation, Belhassan allegedly collected tuition and deposit payments from 279 families in Massachusetts and across the United States, as well as advance payments from an online payment company and a commercial lender. As part of his scheme, Belhassan allegedly used a fraudulent contract with the college and forged a college administrator’s signature.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Crime Unit is prosecuting the case.
The details contained in charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Filer Man Sentenced to 24 Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
BOISE – Michael Robert Gorley, 29, of Filer, Idaho, was sentenced in U.S. District Court to 292 months in federal prison for sexual exploitation of children, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye also ordered Gorley to serve five years of supervised release following his prison sentence. Gorley pleaded guilty to the charge on May 12, 2020.
According to court records, Gorley admitted to communicating with an individual on Kik Messenger on June 3 and 4, 2019 regarding the exchange of sexually explicit images of children. Unbeknownst to Gorley, the person he was communicating with was an undercover Federal Bureau of Investigation (FBI) task force officer from Washington D.C. During those communications, Gorley sent the undercover agent several photographs depicting Gorley and a 4-year-old child engaged in sexually explicit conduct.
According to court records, FBI in Washington D.C. identified an IP address used by Gorley as located in Gooding, Idaho, and forwarded the information to FBI in Boise. FBI in Boise began investigating on June 5, 2019 and identified Gorley as the individual who sent the images. On June 6, 2019, FBI contacted Gorley at his residence in Filer, and Gorley admitted that he had produced the sexually explicit images with the 4-year-old child using his cell phone, and then sent the images to another individual over the internet.
As a result of his conviction, Gorley will be required to register as a sex offender. Judge Nye also ordered the forfeiture of the cell phone used in the commission of the offense.
This case was investigated by the FBI, with assistance from Gooding County Sheriff’s Office, Twin Falls County Sheriff’s Office, and the Filer Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
# # #
Federal indictment brings additional charges against Graniteville man accused of transporting a minor for sexual activityRead the Press Release
AUGUSTA, GA: A federal grand jury has indicted a Graniteville, S.C. teacher on additional federal charges related to the initial allegation that charged him with transporting a minor across state lines for sex.
Jonathan Eugene Grantham, 45, of Graniteville, S.C., is named in a four-count indictment charging him with Sex Trafficking of a Minor; Coercion and Enticement of a Minor to Engage in Sexual Activity; Travel with Intent to Engage in Illicit Sexual Conduct; and Transportation with Intent to Engage in Criminal Sexual Activity, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The sex trafficking charge carries a minimum penalty upon conviction of 15 years in prison, and a maximum penalty of life in prison. There is no parole in the federal system.
“The protection of innocent and vulnerable children is of paramount importance to our office,” said Acting U.S. Attorney Estes. “We applaud the hard work of the FBI agents in diligently investigating these difficult cases.”
At the time of his arrest in February, Grantham was employed as a teacher at Ridge Spring-Monetta High School in Ridge Spring, S.C. A U.S. District Court grand jury returned the indictment with the additional charges this week.
Grantham is accused of knowingly picking up a minor in Columbia County on or about July 20, 2019, and taking the minor across state lines to engage in prostitution. The indictment alleges that Grantham “recruited, enticed, harbored, transported, provided, obtained, maintained, patronized, and solicited, by any means, in and affecting interstate commerce, Minor Victim 1, knowing and in reckless disregard of the fact that Minor Victim 1 had not attained the age of 18 years and that Minor Victim 1 would be caused to engage in a commercial sex act.”
Grantham remains in federal custody.
“It is extremely disheartening that these charges are against a teacher who parents trusted to have the best interests of their children at heart,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These additional charges are the result of hard-working FBI investigators dedicated to protecting our children.”
An indictment contains only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Tania G. Groover and Project Safe Childhood Coordinator Tara M. Lyons
Federal Grand Jury A Indictments Announced- MarchRead the Press Release
Acting United States Attorney Clint Johnson announced today the results of the March Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven beyond a reasonable doubt to overcome a defendant’s presumptions of innocence.
Pedro Santiago Cabrera, Rolando Reyna Reyes, Desiree Loraine Castaneda, Erneesto Cerda, Jorge Guerrero Perez, Gabriel Vidales-Moreno, Carlos Yepez, Gerardo Yepez and Jorge Yepez. Drug Conspiracy; Possession With Intent to Distribute and Distribution of Methamphetamine; Maintaining a Drug Involved Premises; Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony. Pedro Santiago Cabrerra, 36, Rolando Reyna Reyes, 34; Desiree Loraine Castaneda, 33; Erneesto Cerda, age unknown; Jorge Guerrero Perez, 41; Gabriel Vidales-Moreno 41; Carlos Yepez, 41; Gerardo Yepez, 35; and Jorge Yepez, 25, are charged with conspiring to manufacture, to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. All male defendants are unlawfully residing in the United States. Castaneda is a U.S. citizen. The Drug Enforcement Administration, Tulsa Police Department, Oklahoma Bureau of Narcotics and Dangerous Drugs, Tulsa County Sheriff’s Office, and Broken Arrow Police Department are the investigative agencies.
Dustin Lee Dennis; Michael Scott Dennis. Child Neglect in Indian Country (4 counts); Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony (12 counts) (superseding). From June 12 to June 13, 2020, Dustin Dennis, 32, of Tulsa, allegedly failed to provide adequate care for his two children, who died while under his supervision. During the same timeframe, Dustin Dennis is further charged with failing to protect his children from exposure to the use, possession and sale of illegal drugs and illegal activities. Further, Dustin Dennis and his brother Michael Dennis, 49, of Tulsa, are charged with use of a communication facility in committing, causing, and facilitating the commission of a drug trafficking felony on June 12 and June 13 and other dates alleged in the indictment. The FBI and Tulsa Police Department are the investigative agencies. Find the initial complaint press release here.
Teddy Charles Devore; Kelly Eugene Wren. Felon in Possession of Firearm and Ammunition. Devore, 35, of Wichita, Kansas, and Wren, 42, of Bartlesville, are each charged with one count of being a felon in possession of a firearm and ammunition. The Bartlesville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Jordan Taylor Kuykendall. Murder-Second Degree Indian Country. Kuykendall, 24, of Owasso, allegedly killed Charles Botts by stabbing him on May 17, 2020. The FBI and Owasso Police Department are the investigative agencies.
Jaquan Dawante Lee. Burglary in the First Degree in Indian Country; Assault by Strangulation in Indian Country. Lee, 27, of Tulsa, allegedly broke into a home by kicking in the door while the occupants were present. He is further charged with assaulting an intimate partner by attempting to strangle and suffocate her. The FBI and Tulsa Police Department are the investigative agencies.
Caleb Logan McCabe. Felon in Possession of a Firearm and Ammunition. McCabe, 25, is charged with being a felon in possession of a Century Arms 7.62 x39 semi-automatic rifle, a Taurus 9 mm pistol and 27 rounds of ammunition. The FBI and Bartlesville Police Department are the investigative agencies.
John Andrew Russell. Possession of Methamphetamine With Intent to Distribute; Maintaining a Drug Involved Premises. Russell, 54, is charged with possession with intent to distribute methamphetamine on April 3, 2019, and with knowingly using and maintaining a residence in Tulsa for the purpose of distributing methamphetamine. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Michael Sam. Assault With Intent to Commit Murder in Indian Country; Carrying, Using, and Discharging a Firearm During and in Relation to a Crime of Violence; Assault With a Dangerous Weapon in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country. Sam, 20, and another individual allegedly aided and abetted each other, with intent to commit murder, when they discharged a round into a vehicle the victim was in on April 8, 2019. The victim was stuck in the back of the head with a bullet. The Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI are the investigative agencies.
David Edward Sayre Jr. Robbery in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence; Carjacking in Indian Country; Assault With a Dangerous Weapon in Indian Country. On May 25, 2020, Sayre, 28, of Bartlesville, allegedly carjacked an individual using a firearm, and further robbed the victim of his cell phone and car key. During the incident, Sayre allegedly fired multiple rounds at the victim as he ran to safety. The FBI and Bartlesville Police Department are the investigative agencies.
Stephen Lloyd Spangle. Secured Area of an Airport by False Pretenses. Spangle, 47, of Tulsa, is charged with illegally entering a secure area of the Tulsa International Airport. The FBI and Tulsa International Airport Police are the investigative agencies.
Guy Wheeler Turner. Felon in Possession of Firearm and Ammunition. Turner, 37, of Ralston, is charged with being a felon in possession of a Winchester .22 caliber rifle and 38 rounds ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pawnee Police Department are the investigative agencies.
Lemorris Walton Jr. Felon in Possession of Firearms and Ammunition; Possession of Firearms and Ammunition by an Unlawful User of Controlled Substances; Possession of Methamphetamine With Intent to Distribute; Possession of Cocaine With Intent to Distribute; Possession of Marijuana With Intent to Distribute; Possession of Firearms in Furtherance of Drug Trafficking Crimes. Walton Jr., 32, of Tulsa, is charged with being a felon and an unlawful drug user in possession of a Herman Weihrauch .38 special revolver, a Maverick 12 gauge shotgun, and 33 rounds of ammunition. According to the indictment, he also possessed with intent to distribute methamphetamine, cocaine and marijuana. Finally, he is charged with possessing firearms in furtherance of his drug trafficking crimes. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Billy John Wells; Maddison Joann Summers. Felon in Possession of a Firearm; Drug Conspiracy; Possession of Methamphetamine With Intent to Distribute; Maintaining a Drug-Involved Premises; Possession of Firearms in Furtherance of Drug Trafficking Crimes and Aiding and Abetting; Felon in Possession of Firearms. In December 2020, Wells, 28, and Summers, 24, both of Tulsa, allegedly conspired together to possess with intent to distribute 50 grams or more of methamphetamine. The two allegedly maintained a residence for the purpose of using and distributing the methamphetamine and owned at least six firearms to further their trafficking crimes. Firearms included a Ruger .380 auto caliber pistol, a Stoger, 9 mm pistol, a Glock .380 auto caliber pistol, a Sig Sauer 9X19 caliber pistol, a Taurus .40 S&W caliber pistol, and a Colt .22 magnum caliber single-action revolver. Wells is charged with being a felon in possession of a Taurus 9 mm pistol on Nov. 22, 2020, and with being a felon in possession of six firearms on Dec. 18, 2020. Summers is also charged with being a felon in possession of six firearms on Dec. 18, 2020. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department conducted the investigation.
Kendall Ray Whitlow. Child Abuse in Indian Country (2 counts); Child Neglect in Indian Country (superseding). Whitlow, 23, of Tulsa, is alleged to have physically abused a child under the age of 18. Further, Whitlow is charged with child neglect. The FBI and Tulsa Police Department are the investigative agencies.
Tighe Wilson. Child Abuse in Indian Country; Assault by Striking, Beating, and Wounding in Indian Country. Wilson, 60, of Tulsa, is charged with maliciously harming a child under the age of 18 by striking and beating the child with closed fists, causing wounds to the child’s face. Wilson is also charged with assault by striking, beating, and wounding for violently shoving an intimate partner to the ground during the same incident. The FBI and Tulsa Police Department are the investigative agencies.
Chadwick Andre Young. Child Abuse in Indian Country. Young, 34, of Tulsa, is charged with harming a young child when he punched the person holding the child multiple times, causing the child to be injured, including a skull fracture. The FBI and Tulsa Police Department are the investigative agencies.
Fayette County Woman Sentenced to Nearly 6 Years in Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Lisa G. Johnston announced that Trina Tellez-Mullins, 36, of Oak Hill, was sentenced to 70 months in prison for possession with intent to distribute 50 grams or more of methamphetamine.
“The excellent investigative work of DEA prevented approximately 433 grams of meth from being distributed in our communities,” said Acting United States Attorney Lisa G. Johnston. “It is only by working closely with our federal, state and local law enforcement partners that we can ensure defendants like Tellez-Mullins are held accountable.”
Tellez-Mullins previously pled guilty and admitted that on September 28, 2017, she possessed approximately 433.1 grams of methamphetamine at the Greyhound station in Beckley which she intended to distribute. Law enforcement had interdicted the drug package that was en route from California via Greyhound bus to Tellez-Mullins in Beckley. Federal agents arranged a controlled delivery and arrested Tellez-Mullins at the Beckley bus station when she accepted the package of methamphetamine.
The Drug Enforcement Administration (DEA) conducted the investigation. United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Nick Miller handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00119.
Follow us on Twitter: SDWVNews
###
FCI Schuylkill Inmate Sentenced to 18 Months’ Imprisonment for Possessing A Narcotic Drug While in PrisonRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Richol Griner, age 44, of Washington, DC, was sentenced on March 4, 2021, to 18 months’ imprisonment by United States District Court Judge Robert D. Mariani for possessing Suboxone while serving a prior prison term as an inmate at a federal correctional institution.
According to Acting United States Attorney Bruce D. Brandler, on or about March 1, 2019, while incarcerated at the Federal Correctional Institution, Schuylkill (FCI-Schuylkill), located in Minersville, Pennsylvania, Griner possessed 49 units of Suboxone, a narcotic drug that contains the opioid, buprenorphine. Judge Mariani ordered that the 18-month sentence was to run consecutively to the federal sentence that Griner was already serving.
The matter was investigated by the Federal Bureau of Prisons (FBP) and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Jeffery St John prosecuted the case.
# # #
Escort Sentenced to Prison for Underreporting IncomeRead the Press Release
A Florida man was sentenced today to 21 months in prison for filing a false tax return.
Jami Kopacz, of Fort Lauderdale, pleaded guilty to filing a false corporate tax return on Dec. 16, 2020. According to court documents and statements made in court, Kopacz worked as a paid escort for clients across the United States. Kopacz received payments directly from his escort clients, and from a private business for whom he worked as an independent contractor. From 2015 to 2018, Kopacz used his corporation, JK Training LLC, to receive income, and then filed false corporate tax returns (Forms 1120S) that substantially underreported the company’s gross receipts and total income. The understatement on JK Training’s corporate tax returns was passed through to Kopacz’s individual tax returns, which were also false as they underreported his total personal income. Kopacz caused a total tax loss to the IRS of $278,325.
In addition to the term of imprisonment, U.S. District Court Judge Roy K. Altman ordered Kopacz to pay $278,325 in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Grace Albinson of the Tax Division and Assistant U.S. Attorney Christopher Browne of the Southern District of Florida prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ecuadorian Nationals Charged with Trafficking over 700 Kilograms of Cocaine on Unflagged BoatsRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday charging four Ecuadorian nationals after they were intercepted on the Pacific Ocean while traveling on unflagged vessels with over 700 kilograms of cocaine.
According to the indictment and to a criminal complaint filed earlier this year, Julio Luis Rosado Benitez, 47, Maunel Alexi Quijije Mero, 26, Oscar Arcenio Sanchez Garcia, 26, and Kevin Antonio Franco Bonilla, 24, were found traveling on unflagged go-fast vessels several hundred nautical miles off the coast of Mexico and Guatemala. A U.S. Coast Guard cutter intercepted the boats, and boarding teams recovered a total of over 700 kilograms of cocaine.
All four defendants are charged with possession with the intent to distribute more than five kilograms of cocaine onboard a vessel without nationality. If convicted, they face a mandatory minimum sentence of ten years and a maximum sentence of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Marty J. Martinez, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement.
Assistant U.S. Attorneys Eric M. Hurt and Andrew Bosse are prosecuting the case.
This prosecution 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-4.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Dominican National Sentenced to More than 15 Years in Prison for Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in relation to the seizure of over 10 kilograms of fentanyl and heroin in December 2018.
Carlos Soto-Villar, 34, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Patti B. Saris to 188 months in prison and five years of supervised release. He will be subject to deportation proceedings upon completion of his sentence. In October 2020, Soto-Villar was convicted by a federal jury of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.
According to the trial testimony, on Dec. 6, 2018, Soto-Villar supplied a kilogram of fentanyl to a co-defendant. The kilogram of fentanyl was later seized by police on Dec. 7, 2018. A search at the Methuen apartment used by Soto-Villar and a different co-defendant as a drug stash house resulted in the seizure of over nine kilograms of fentanyl and heroin and drug processing equipment. Soto-Villar fled from the apartment and was apprehended a short distance away.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistance was also provided by the Massachusetts State Police and the Methuen Police Department. Assistant U.S. Attorney Katherine Ferguson, Deputy Chief of Mendell’s Narcotics and Money Laundering Unit, and Assistant U.S. Attorney Linda M. Ricci, Chief of the Narcotics and Money Laundering Unit, prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in connection with drug trafficking activities involving fentanyl.
Jonathan Mejia, 32, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and two years of supervised release. In November 2020, Mejia pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and two counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl. Mejia was arrested and charged in July 2020.
Mejia made three separate sales of fentanyl to an undercover law enforcement officer in June and July 2020 in Lawrence. While on his way to make a fourth sale of fentanyl, agents arrested Mejia.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s Boston Field Office made the announcement. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican Man Indicted on Fentanyl ChargesRead the Press Release
BOSTON – A Dominican national was indicted by a federal grand jury this week on fentanyl possession charges.
Juan Gabriel Bautista Vargas, 30, was indicted on Wednesday, March 3, 2021 on one count of possession with intent to distribute 400 grams or more of fentanyl. Bautista Vargas was previously arrested and charged by criminal complaint on Feb. 5, 2021.
According to charging documents, investigators coordinated a controlled purchase of a half-kilogram of fentanyl on Feb. 4, 2021 and Bautista was arrested when he arrived to deliver the drugs.
The charge of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Lauren A. Graber of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Admits Role in Genetic Testing Kickback and Bribery SchemesRead the Press Release
NEWARK, N.J. – A Pennsylvania doctor today admitted participating in two conspiracies to receive bribes and kickbacks in exchange for ordering genetic tests, Acting U.S. Attorney Rachael A. Honig announced.
Lee Besen, 65, of Waverly, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging him with two counts of conspiring to violate the Anti-Kickback Statute.
Besen is the fourth defendant to plead guilty in bribery and kickback schemes involving doctors and medical employees in the Scranton, Pennsylvania, area.
According to documents filed in this case and statements made in court:
Besen was a primary care physician with an office in the Scranton area. In 2018, he began accepting monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged from $500 to over $8,000. Besen typically accepted the cash inside his office, at times behind locked doors.
When Besen did not receive his kickback and bribe payments, the volume of genetic tests he ordered dipped. When he accepted those payments, that volume typically increased because, as Besen said in a recorded conversation, “Greenbacks speak.” Besen was also recorded discussing the kickback and bribe payments as “vigs” – slang for fees collected by bookies.
Besen frequently sought ways to make more money. At one point, he proposed adding to the scheme by collecting “CGx” cancer screening tests from Medicare patients, sending the tests to a new lab, and then splitting lucrative sales commissions that the lab paid out – ranging up to $2,500 per test. Although Besen had not previously ordered CGx tests for any of his patients, once he realized there was money to be made, he said in a recording that his office was “totally open now for CGx.” He was also recorded saying that he hoped the money he made from CGx tests would help him “retire early.”
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, Besen worked with his staff to generate more genetic tests from Medicare patients. Before one illicit payoff that Besen accepted in the parking lot of a fast-food restaurant, he was recorded making veiled threats and expressing concern about being caught on camera accepting kickbacks and bribes. Despite such concerns, he followed through with the meeting because, as he was recorded saying, he wanted to collect “greenbacks” for his “pool house.”
Besen enlisted his employee, Kimberly Schmidt, who, in exchange for cash kickbacks and bribes, helped prepare paperwork for the genetic tests. Schmidt has previously pleaded guilty for her role in the scheme and is awaiting sentencing.
As a result of the scheme, Medicare paid $350,374 for genetic tests generated from Besen’s medical practice.
Separately, Besen and Terri Haines, of Kennett Square, Pennsylvania, entered into a different kickback and bribery scheme involving “health fairs.” Haines was not a health care provider, but made a living soliciting and collecting CGx genetic screening tests from Medicare patients at health fairs, and then sending those tests to a lab in exchange for commissions. She was not authorized to order those CGx tests without a doctor’s sign-off. Haines paid Besen a kickback and bribe to use his name and medical credentials to order CGx tests for the Medicare patients she met at fairs, even though Besen never actually attended any of the health fairs and never met the patients for whom the genetic tests were ordered. Medicare paid $713,882 for CGx genetic tests that resulted from this scheme.
Each conspiracy charge is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for July 6, 2021.
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; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of the U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. She also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations against Haines are merely accusations, and she is presumed innocent unless and until proven guilty.
Cynthiana Man Sentenced to 36 Months for Mail FraudRead the Press Release
LEXINGTON, Ky. – A Cynthiana, Ky., man, Randall Perry, 54, was sentenced on Thursday to 36 months in federal prison, by U.S. District Judge Karen Caldwell, for mail fraud.
Perry pleaded guilty to one count of mail fraud in June 2020. According to his plea agreement, Perry was an employee at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown, Ky. Perry admitted that between November 9, 2015 and November 6, 2017, he stole various parts and equipment from the Georgetown plant, then sold some of those stolen parts through eBay and other means, fraudulently representing to online consumers that he was in lawful possession of the equipment he offered for sale. Perry mailed stolen equipment to purchasers and obtained $254,799.30 from this scheme.
TMMK identified 842 stolen parts and valued them at $1,216,147.61. The Court found TMMK’s loss calculation to be appropriate and ordered Mr. Perry to also pay restitution equal to that loss amount.
Under federal law, Perry must serve 85 percent of his prison sentences. Perry will be under the supervision of the U.S. Probation Office for one year, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, jointly announced the sentence.
The investigation was conducted by USPIS and Georgetown Police Department. The United States was represented by Assistant U.S. Attorney Tashena Fannin.
Cryptocurrency Fraudster Pleads Guilty to Securities Fraud and Money Laundering Charges in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, a citizen of Sweden, pleaded guilty to securities fraud, wire fraud, and money laundering charges, announced Acting United States Attorney Stephanie M. Hinds; Acting Assistant Attorney General Nicholas McQuaid of the Justice Department’s Criminal Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
A criminal complaint filed March 4, 2019, charged Karlsson, 47, and his company, Eastern Metal Securities (EMS), with crimes involving a scheme to defraud victims of more than $16 million. Karlsson, also known by several aliases including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg, was arrested on June 17, 2019, in Thailand and was extradited to the United States to face the charges. A federal grand jury indicted Karlsson and EMS on July 25, 2019.
“The internet has pioneered extraordinary opportunities for commerce,” said Acting U.S. Attorney Hinds. “Unfortunately, the same tools that have provided innovative methods of doing business also have provided fertile grounds for fraudsters to take advantage of the unwary. This case demonstrates that we will pursue fraudsters who seek to find their victims in the Northern District of California, even if such criminals operate from outside the country.”
“Karlsson’s false promises of a profitable investment with minimal risk bilked tens of millions of dollars from his unsuspecting victims,” said IRS-CI Special Agent in Charge Jackson. “Karlsson’s admission today will hopefully provide some measure of justice for more the more than 3,500 victims he scammed and put them on a path to financial restoration. We were glad to provide our expertise in tracing virtual currency in this investigation, diminishing the belief of anonymity associated with these transactions.”
The indictment and a factual basis filed by the government describe a long-running scheme by which Karlsson and EMS used a website to commit wire fraud against thousands of victims. Specifically, the indictment explains that from November 27, 2012, through June 19, 2019, Karlsson and EMS used www.easternmetalsecurities.com to make fraudulent representations and convince victims to send funds using a virtual currency exchange. During the same period, Karlsson and EMS used deceptive “devices and contrivances” to sell securities and then tried to conceal the proceeds of the wire fraud and securities fraud. In sum, the indictment charges Karlsson and EMS with one count each of wire fraud, in violation of 18 U.S.C. § 1343; securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. § 240.10b-5; and money laundering, in violation of 18 U.S.C. § 1957. Karlsson pleaded guilty to all the charges pending against him. EMS has ceased to exist.
During the hearing, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000. Karlsson advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. Karlsson admitted he had no way to pay off the investors. Instead, the funds provided by victims were transferred to Karlsson’s personal bank accounts and he then used proceeds to purchase expensive homes and a resort in Thailand.
As the government has alleged, Karlsson also used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson brought the investors in HCI25 together with the investors in the “Pre Funded Reversed Pension Plan” and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson admitted he defrauded no less than 3,575 victims of more than $16 million.
Karlsson faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen and Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case. Assistant U.S. Attorney Karen Beausey of the Asset Forfeiture Unit of the U.S. Attorney’s Office is prosecuting the forfeiture proceedings. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. The Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.
Correctional Officer and Inmate Sentenced to Prison for Bribery and Smuggling SchemeRead the Press Release
TEXARKANA, Texas – A correctional officer and federal inmate have been sentenced for a bribery conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“EDTX is committed to the principle that no person, regardless of their title, status, or position, is above the law,” said Acting U.S. Attorney Nicholas J. Ganjei. “This corrupt law enforcement officer exploited his position of public trust and endangered the inmates and staff at FCI Texarkana. This office will work tirelessly to protect the trust and confidence that East Texans have placed in their law enforcement community.”
James Thompson, a 55-year-old Titus County, Texas, man, pleaded guilty on August 5, 2020, to conspiring to commit bribery and was sentenced to 46 months in federal prison by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Thompson to forfeit $17,200.00 in U.S. currency and cash proceeds from his scheme.
Gilbert Gomez, a 54-year-old federal inmate, pleaded guilty on August 31, 2020, to conspiring to commit bribery and was sentenced to 46 months in federal prison by Judge Schroeder. Judge Schroeder also ordered Gomez to forfeit $15,000 in cash proceeds from his scheme.
According to information presented in court, beginning before August 2019 and continuing through January 2020, Thompson, a federal correctional officer, and Gomez, a federal inmate, engaged in a scheme to smuggle contraband into the Federal Correctional Institution located in Texarkana, Texas. During the scheme, Thompson received cash bribe payments and prison contraband at a post office box under the alias of “Bobby Brown.” Thompson then smuggled the contraband into FCI Texarkana when he entered the facility to go to work. Gomez coordinated the scheme from inside the institution, where he arranged cash bribe payments and delivered the smuggled contraband to other inmates. Thompson and Gomez received more than $30,000.00 total for smuggling contraband into FCI Texarkana.
This case was investigated by the Dallas Field Office of the U.S. Department of Justice, Office of the Inspector General, the Fort Worth Division of the U.S. Postal Inspection Service, and the Bureau of Prisons, Special Investigative Services. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Convicted felon sentenced to over nineteen years for selling methRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Leon Perry Jr., 37, of Indianapolis, was sentenced to 235 months in federal prison by U.S. District Judge James P. Hanlon for Distribution of Methamphetamine. Perry Jr. was previously convicted of a serious violent felony, and his mandatory minimum sentence was enhanced for that reason.
“Prosecuting those who have a history of violence, like Perry Jr., who choose to sell the illegal drugs that are devastating our communities and igniting violence, will continue to be a priority of this office,” said Childress. “It is just another tool that can be used to help curb the violence that has been escalating in this city and throughout the country.”
In 2019, Perry Jr. was being investigated for the distribution of methamphetamine in and around the Indianapolis area. Not only was he distributing methamphetamine throughout the community, he was unknowingly selling it to the officers investigating him. In total, Perry Jr. sold over 600 grams to the officer.
Perry Jr. was considered a serious violent felony due to his prior conviction in 2010 for Aggravated Battery, a B felony in Marion County, Indiana, Cause Number 49G04-0903- FA-036591. In addition to that conviction, Perry Jr. had four other prior felony convictions in Marion County, Indiana, including felony Carrying a Handgun without a License under Cause Number 49G05-0508-FC-130910 in 2005, and felony Criminal Recklessness under Cause Number 49G04-0709-FC-197671 in 2008.
This investigation was conducted by the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department.
“This lengthy sentence clearly demonstrates the FBI and our partners remain committed to going after those who not only endanger the community by selling illegal substances, but who have a history of violent activity,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “It is important for those who traffic meth and other narcotics to know we will continue to use all available resources to prevent dealers from peddling their poison in our communities.”
According to Assistant United States Attorney Michelle P. Brady, who prosecuted this case for the government, Perry Jr. must also pay a $1000 fine and serve 10 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to prosecute organizations and individuals distributing cocaine, marijuana, and other controlled substances. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Construction Company Owners Pleaded Guilty to Defrauding Federal Program Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
Two Texas construction company owners have pleaded guilty in a long-running scheme to defraud the United States.
Michael Wibracht of San Antonio, Texas, the former owner of several companies in the construction industry, conspired to defraud the United States in order to obtain valuable government contracts under programs administered by the U.S. Small Business Administration (SBA) for which neither his nor his co-conspirators’ companies were eligible. One co-conspirator, Ruben Villarreal, also of San Antonio, pleaded guilty on Nov. 20, 2020, to participating in the same conspiracy.
“For many years, this conspiracy undermined the integrity of the federal procurement process,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice Antitrust Division. “This conduct robbed opportunities from honest businesses, especially those owned by historically disadvantaged individuals and service-disabled veterans.”
According to court documents filed in the Western District of Texas in San Antonio, Wibracht, Villarreal, and other co-conspirators conspired to defraud the United States by interfering with the function of the SBA and fraudulently obtaining money from agencies of the United States as early as 2004 continuing at least through 2017. As part of this scheme, the conspirators installed Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Wibracht and other co-conspirators, however, exercised disqualifying financial and operational control over the construction company. The conspirators concealed that control in order to secure over $250 million in government contracts that were “set aside” for SDVOSBs in order to benefit their larger, non-qualifying businesses. The SBA administers the SDVOSB program, which is designed to increase the number of government contracts awarded to small businesses owned and controlled by service-disabled veterans. To qualify as an SDVOSB, a company, among other things, must be owned and controlled by a service-disabled veteran.
“Conspiring to fraudulently gain access to federal contracts set aside for small businesses owned and operated by disadvantaged individuals or service-disabled veterans is unacceptable,” said Inspector General Hannibal “Mike” Ware. “The guilty pleas send a strong message that those responsible will be held accountable. I want to thank the Antitrust Division and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“These plea agreements showcase the unique expertise of the U.S. Army CID’s specialized unit, the Major Procurement Fraud Unit,” said Special Agent in Charge Ray A. Rayos of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Together, with our partner agencies and the Department of Justice Antitrust Division, those individuals responsible for engaging in a complex and long running scheme to defraud the United States government have been brought to justice.”
“The General Services Administration Office of Inspector General is committed to working with its law enforcement partners and the Department of Justice Antitrust Division to ensure that individuals and companies who fraudulently obtain contracts meant for legitimate small and disadvantaged businesses are investigated and prosecuted to the full extent of the law,” said Inspector General Carol Ochoa of the General Services Administration.
“The defendants conspired to fraudulently obtain multi-million dollar government contracts under a program designed to benefit service-disabled veterans,” said Inspector General Michael J. Missal of the Department of Veterans Affairs. “These guilty pleas send a clear message that individuals and companies who defraud the government contracting process for service-disabled veterans will be held accountable. The VA OIG thanks the Department of Justice Antitrust Division and our law enforcement partners for their joint efforts to achieve justice in this case.”
“This outcome is a testament to the commitment of the Defense Criminal Investigative Service (DCIS) and our Law Enforcement partners in safeguarding the integrity to the DoD contracting process,” said Acting Special Agent-in-Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will utilize all available resources to pursue allegations of fraud and corruption, bringing to justice those who seek to enrich themselves through the exploitation of Small Business Administration programs designed to help disadvantaged groups.”
Wibracht pleaded guilty to one count of conspiring to commit wire fraud and defraud the United States. Villarreal pleaded guilty to conspiracy to defraud the United States and is scheduled to be sentenced before Judge Xavier Rodriguez on June 23, 2021. Both men face a maximum penalty of five years in prison and a $250,000 fine. The maximum fine for an individual may be increased to twice the gain derived from the crime, or twice the loss suffered by victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The SBA Office of Inspector General, Army Criminal Investigation Command’s Major Procurement Fraud Unit, General Services Administration Office of Inspector General, Department of Veterans Affairs Office of Inspector General, and DCIS are investigating the case, with assistance from the U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency.
The Department of Justice Antitrust Division’s Washington Criminal II Section is prosecuting the case. Special thanks are extended to Assistant U.S. Attorney William F. Lewis, Jr. of the U.S. Attorney’s Office for the Western District of Texas.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement and grant and program funding at all levels of government — Federal, state, and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Colombian national extradited to Columbus, Ohio, charged with conspiring to ship thousands of kilograms of cocaine to AmericaRead the Press Release
COLUMBUS, Ohio – A Colombian national was extradited to Ohio yesterday to face federal drug charges in the Southern District of Ohio. He appeared in U.S. District Court here today.
Sergio L. Valderrama-Areiza, 35, allegedly conspired with others to coordinate the shipment of thousands of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico, to the United States.
The defendant – also known as Blindaje, Blindaje Artesanal and Rasputin – is alleged to be involved in moving tens of millions of dollars’ worth of cocaine to America.
As part of this case, law enforcement officers seized more than 250 kilograms of cocaine total in Panama in February, March, May and November 2018. An additional 278 kilograms of cocaine was seized by law enforcement in Panama in August and September 2018 and April 2019.
The indictment details that, as part of the conspiracy, individuals would use “load” coordinators to assist with logistics of cocaine shipments, locate drivers and boat operators for narcotic-laden vehicles and vessels, and secure shared investments from multiple co-conspirators in specific cocaine shipments.
Fishermen and other commercial maritime laborers were allegedly recruited by conspirators to transport cocaine and refueling vessels.
Conspirators allegedly paid a “tax” or “fee” to send cocaine through areas controlled by a different drug trafficking organization or cartel.
Members of the conspiracy allegedly shared information on the activities and locations of law enforcement and military personnel assigned to interdict narcotics shipments. It is alleged co-conspirators also sheltered individuals who were at risk of extradition to other countries.
Low-level co-conspirators would allegedly take responsibility for an entire load of seized cocaine in order to free higher-level members.
The narcotics conspiracy in this case is punishable by 10 years up to life in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the charges. Assistant United States Attorneys Jonathan J.C. Grey, Elizabeth Rabe and Kelly A. Norris are representing the United States in this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendant’s extradition from Colombia.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Cedar Rapids Felon Sentenced to Two Years in Federal Prison for Possessing a FirearmRead the Press Release
A felon who possessed a firearm was sentenced today to two years in federal prison.
Anthony Rush, age 32, of Cedar Rapids, Iowa, received the sentence after a September 28, 2020 guilty plea to one count of being a felon in possession of a firearm. At the plea hearing, Rush admitted that, in May 2020, he knowingly possessed a .380 auto caliber pistol. The record at the sentencing hearing established that defendant ran from Cedar Rapids police officers and discarded a loaded pistol before being arrested. Rush was convicted of attempted burglary in the second degree in Linn County in 2012.
Rush was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rush was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-62.
Follow us on Twitter @USAO_NDIA.
Cape Coral Man Sentenced to More Than 17 Years in Prison for Distributing Fentanyl Causing the Death of AnotherRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Steven Clements Telgenhof (28, Cape Coral) to 17 years and 6 months in federal prison for distribution of and possession with the intent to distribute fentanyl. Telgenhof had pleaded guilty on February 6, 2020.
According to court documents, on March 12, 2019, Telgenhof sold the victim approximately one gram of fentanyl. The victim ingested the fentanyl later that evening and was found in his bedroom, unresponsive, by his parents early the next morning. Attempts to resuscitate the victim were unsuccessful and he passed away from acute fentanyl toxicity four days later.
Evidence gathered during the investigation led law enforcement to Telgenhof’s Cape Coral residence on March 22, 2019, where they executed a search warrant and seized Telgenhof’s stash of fentanyl and nearly $8,000 in proceeds from his distribution activities.
This case was investigated by the Cape Coral Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Camp Hill Man Sentenced to 12 Months and One Day Imprisonment for Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Forney, age 41, of Camp Hill, Pennsylvania, was sentenced today to 12 months and one day imprisonment followed by one year supervised release and a $40,000 fine by U.S. District Court Judge Jennifer P. Wilson on four counts of tax evasion.
According to Acting United States Attorney Bruce D. Brandler, on September 23, 2018, police were called to the residence of Matthew and Kim Forney for reports of a shooting. Upon arrival, police discovered that their daughter’s boyfriend had shot both Matthew and Kim Forney. While securing the residence, officers observed bloody footprints leading through the house to an outside pool house. Inside the pool house, the police located a garbage bag, which contained a large amount of bundled United States currency. Police obtained and executed a search warrant. Inside a large gun safe located in the residence, police found additional amounts of bundled cash attached to business receipts. The officers seized the cash and receipts.
The Forney’s daughter’s boyfriend was charged with two counts of aggravated assault in connection with the shooting, but charges were ultimately dismissed on June 19, 2019.
An investigation conducted by the Internal Revenue Service – Criminal Investigation determined that this currency was income that Matthew and Kim Forney earned through their business, but omitted on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
Kim Forney was sentenced to 12 months’ imprisonment by Judge Wilson on March 4, 2021.
“The license to run a business is not a license to evade taxes,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. and Mrs. Forney thought they could hoard all of their cash earnings and fly under the radar of the IRS, but they couldn’t be more wrong. Anyone contemplating similar criminal conduct should beware; IRS Criminal Investigation Special Agents are uniquely qualified to trace all sources of income.”
The case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI). Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
# # #
California Man Sentenced to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on February 22, 2021, to more than 11 years in federal prison.
Daryl David Blair, 36, from Los Osos, California, received the prison term after a September 18, 2020, guilty plea to one count of conspiracy to distribute methamphetamine.
At sentencing, Blair was found to have been involved with trafficking 16 pounds of methamphetamine across California, Iowa, and South Dakota. On February 8, 2020, while patrolling the Grand Falls Casino parking lot in Larchwood, IA, law enforcement searched a vehicle connected to Blair and ultimately recovered nearly 3 pounds of methamphetamine, and drug trafficking materials. Earlier that winter, Blair and his coconspirators had brought pounds of methamphetamine to the Midwest for distribution.
Blair was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Blair was sentenced to 140 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.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Lyon County Sheriff’s Office, Lyon County Attorney’s Office, and Iowa Department of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4068.
Follow us on Twitter @USAO_NDIA.
California Man Sentenced for Illegally Exporting Cesium Atomic Clocks to Hong KongRead the Press Release
BOSTON – A California man was sentenced on Wednesday, March 3, 2020 in federal court in Boston for illegally exporting cesium atomic clocks to Hong Kong.
Alex Yun Cheong Yue, 69, of South El Monte, Calif., was sentenced by U.S. District Court Judge Indira Talwani to time-served (one day) and three years of supervised release, a year of which must be served in home confinement. Yue is also prohibited from engaging in import or export transactions during the period of supervised release. In August 2020, Yue pleaded guilty to one count of conspiracy to commit export violations, two counts of unlawful exports and attempted exports of U.S. goods to Hong Kong and one count of smuggling.
Yue was arrested and charged in June 2019. Wai Kay Victor Zee, 56, of Hong Kong, along with his company, Premium Tech Systems, Limited were also charged. Zee remains at large in Hong Kong Special Administrative Region of the People’s Republic of China.
Beginning in December 2015, Yue, Zee, and Premium Tech conspired to procure U.S.-origin cesium atomic clocks and export them to Hong Kong without obtaining the required export licenses. Cesium atomic clocks are used in global positioning system solutions, network timing protocols, encryption programs and national defense and space applications. They are controlled for export by the U.S. Department of Commerce for national security reasons.
To obtain the atomic clocks, Yue purchased them using a fictitious company, “Ecycle Tech International Ltd.,” by falsely representing to the U.S. seller that the atomic clocks would be used solely in the United States for cordless phone research and development. Based on Yue’s false representations, the U.S. seller sold the cesium atomic clocks to Ecycle. On Feb. 19, 2016, the atomic clocks shipped from the manufacturing facility in Beverly, Mass., to Yue in California. Three days later, on Feb. 22, 2016, Yue reshipped the controlled cesium atomic clocks to Zee at Premium Tech in Hong Kong, with paperwork that falsely described what the clocks were and undervalued their worth. Neither Yue, Zee, nor Premium Tech ever applied for or obtained the required export licenses from the U.S. Department of Commerce. On Feb. 24, 2016, Zee allegedly confirmed receipt of the cesium atomic clocks in Hong Kong.
In December 2017, Yue attempted to purchase an additional cesium atomic clock. Prior to the sale, however, the U.S. seller required Yue to provide an end-user statement detailing where and for what the clocks would be used. In April 2018, Yue sent an end-user certificate on Ecycle letterhead stating that the atomic clocks would be used in a calibration lab in California. In response to further inquiries from the U.S. seller, Yue falsely declared that he was not intending to export the cesium atomic clocks. When the U.S. seller insisted on a site visit to the California location where the atomic clocks would be utilized, Yue abruptly canceled the order. On July 13, 2018, Yue received a refund payment from the U.S. seller. Three days later, on July 16, 2018, Yue sent a wire transfer to Premium Tech’s bank account in Hong Kong with the refunded money.
Acting United States Attorney Nathaniel R. Mendell; William Higgins, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; and William S. Walker, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Scott Garland, Deputy Chief of Mendell’s National Security Unit, prosecuted the case.
Buffalo Man on Federal Probation Arrested on Gun ChargeRead 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 Larry Watkins, Jr., 54, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a weapon. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Meghan E. Leydecker and Franz M. Wright, who are handling the case, stated that according to the complaint, the defendant is currently on federal probation following a 2019 conviction for being a felon in possession of ammunition. On March 2, 2021, United States Probation Officers, assisted by other law enforcement personnel, searched Watkins’ Stanton Street residence and recovered a 9mm pistol in his bedroom. The defendant was also previously convicted in New York State Court of drug and gun charges and is legally prohibited from possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on March 17, 2021.
The complaint is the result of an investigation by the United States Probation Office, under the leadership of Chief Probation Officer Timothy C. Englerth, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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.
# # # #
Bowie County Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
TEXARKANA, Texas – A Bowie County sex offender has been sentenced to federal prison for possessing child pornography in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
William Johnson Springer, 60, of Texarkana, Texas, pleaded guilty on Oct. 5, 2020, to possessing child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Springer to pay restitution to his victims, to register as a sex offender, and to serve a life term of supervised release following his imprisonment.
“This repeat sex offender victimized the weakest in our community by viewing and possessing child pornography,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office will continue to find and prosecute those who sexually exploit our children by viewing, possessing, distributing, or producing child pornography.”
According to information presented in court, Springer possessed a cell phone, which he used to download and collect images and videos containing child pornography. His collection of more than 600 images included depictions of prepubescent minors, sadistic or masochistic abuse or violence, and sexual abuse and exploitation of infants and toddlers.
Springer was previously convicted of possession of child pornography in the U.S. District Court for the Northern District of Oklahoma and on Feb. 9, 2009, was sentenced to 67 months in federal prison and five years of supervised release as a result of that conviction. Springer also has pending charges for failure to comply with registration requirements in the 202nd District Court in Bowie County.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Boston Man Indicted on Methamphetamine Distribution ChargesRead the Press Release
BOSTON – A Boston man was indicted by a federal grand jury this week on methamphetamine distribution charges.
Daniel Lennon, 31, was indicted on Wednesday, March 3, 2021 on one count of distribution of five grams or more of methamphetamine and two counts of distribution of 50 grams or more of methamphetamine. Lennon was initially arrested on Feb. 4, 2021 and charged by criminal complaint.
According to charging documents, investigators conducted three undercover purchases of methamphetamine from Lennon in January and February 2021.
The charge of distribution of five grams or more of methamphetamine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of distribution of 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Lauren A. Graber of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Andrea T. Martinez Appointed Acting United States Attorney for the District of UtahRead the Press Release
SALT LAKE CITY – Andrea T. Martinez is the Acting United States Attorney for the District of Utah, appointed on March 1, 2021, by virtue of the Vacancies Reform Act. As Acting U.S. Attorney, Ms. Martinez will serve as the District’s chief federal law enforcement official until a successor is nominated by the President and confirmed by the U.S. Senate. Ms. Martinez is only the third woman to serve as the Acting United States Attorney in the District of Utah and is the first Latina to hold the position.
Ms. Martinez is a career prosecutor who has dedicated her professional life to public service. She has served in the United States Attorney’s Office for more than a decade. As an Assistant United States Attorney, Ms. Martinez has been involved in the full spectrum of violent crime prosecution including drug trafficking, federal firearm, and child exploitation cases. She also prosecuted crimes in Indian Country. Ms. Martinez has held an array of leadership positions within the office, including First Assistant United States Attorney, Violent Crime Deputy Section Chief, Senior Litigation Counsel, Violence Against Women Act Coordinator, District Diversity Chairperson, and Project Safe Childhood Coordinator.
Ms. Martinez began her career at the Salt Lake County District Attorney’s office where she prosecuted felony narcotic, aggravated assault, special victim and homicide cases. She also prosecuted cases while assigned to the Juvenile and Misdemeanor Divisions. Ms. Martinez is from Utah. She graduated from the University of Utah, S.J. Quinney College of Law in 2001, and was awarded a Bachelor of Arts degree, with a double major, from the University of Utah in 1998.
Appleton Man Indicted for Defrauding InvestorsRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that earlier today an 11-count indictment was unsealed in federal court charging Robert Narvett (age: 56) of Appleton, Wisconsin, with: (1) four counts of wire fraud, in violation of 18 U.S.C. § 1343; (2) one count of bank fraud, in violation of 18 U.S.C. § 1344; (3) one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and (4) five counts of money laundering, in violation of 18 U.S.C. § 1956.
According to the indictment, beginning on or about January 1, 2014, Narvett defrauded victims by promising them he could invest their money and return it with significant interest and dividends when, in fact, Narvett was using his victims’ money to fund his own lifestyle and to make lulling payments to other victims. The indictment also alleges that Narvett applied for, and obtained, loans from financial institutions in his victims’ names without their authorization. The indictment alleges that between 2014 and 2019, Narvett fraudulently obtained over $1.5 million from his victims.
According to public records, in 2013, Narvett was charged by the Securities and Exchange Commission with engaging in a fraudulent investment scheme. A judgment in the amount of $654,583.92 was entered against Narvett in October 2014.
Acting U.S. Attorney Frohling stated: “Prosecuting financial crimes remains a top priority for the Department of Justice. This indictment was the result of tireless and thorough investigative work – all with the aim of seeking justice for the victims of Mr. Narvett’s latest alleged scheme.”
FBI Special Agent in Charge Robert Hughes stated: “I applaud the great work of our team. This offender can longer use his investment scheme to prey on innocent victims for his own personal gain. With our partners, the FBI will continue to use all available resources to investigate and bring those to justice who take advantage of consumers.”
If convicted of wire fraud or money laundering, Narvett would face a maximum sentence of twenty years in prison per count. If convicted of bank fraud, he would face a maximum sentence of thirty years in prison. If convicted of aggravated identity theft, Narvett would face a mandatory minimum sentence of two years in prison.
The Federal Bureau of Investigation investigated the case, which Assistant United States Attorneys Julie F. Stewart and Daniel Humble will prosecute. The Commodities Futures Trading Commission assisted in the investigation.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
###
For further information contact: Public Information Officer Kenneth Gales
[email protected], (414) 297-1700
Follow us on Twitter
18 Charged in Related Methamphetamine ConspiraciesRead the Press Release
OKLAHOMA CITY – Acting U.S. Attorney Robert J. Troester, FBI Special Agent in Charge Melissa Godbold, OCPD Chief of Police Wade Gourley, and IRS Criminal Investigations Acting Special Agent in Charge Mark Pearson jointly announce that earlier this week, more than 100 federal, state, and local law enforcement officers executed 15 search warrants and multiple arrest warrants throughout the Oklahoma City metro area targeting a drug trafficking organization distributing methamphetamine.
This operation was the culmination of a two-year joint state-wide investigation led by the Federal Bureau of Investigation, the Oklahoma City Police Department, the Internal Revenue Service Criminal Investigation, and the United States Attorney’s Office. Between March 3 and March 4, 2021, a coordinated takedown was conducted that resulted in the arrest of 15 defendants and the seizure of nearly 200 gallons of liquid meth, more than 300 pounds of crystal meth, 25 firearms, and more than $100,000 in U.S. currency. Over the course of the entire two-year investigation of this drug trafficking organization, law enforcement seized a combined total of nearly 300 gallons of liquid meth, more than 750 pounds of crystal meth, 40 firearms, and more than $1,000,000 in cash in the cases announced today and all related cases.
According to affidavits filed in support of the first criminal complaint, OSCAR HERNANDEZ FLORES, 36, and LUCERO HERNANDEZ FLORES, 41, former residents of Oklahoma, have allegedly been directing the Hernandez Drug Trafficking Organization (DTO) from San Luis Potosi, Mexico, since at least January 2018. The charging documents also allege that the Hernandez DTO is responsible for the importation, transportation, and distribution of thousands of kilograms of meth per year in the Western District of Oklahoma and elsewhere, using contacts in Oklahoma to carry out the daily operations of the DTO. Allegedly, the organization earns millions of dollars a year in drug proceeds, most of which is ultimately transferred back down to Mexico, either through bulk cash smuggling or through third party wire transfers. The remaining defendants in this complaint can be found in the attached public filing.
According to affidavits filed in support of the second criminal complaint, IAN BASWELL, 46, and TERRY HAMMONS, 36, who were incarcerated at North Fork Correctional Center in Sayre, Oklahoma, are charged for their alleged furtherance of Hernandez DTO activities through drug distribution operations from the North Fork Correctional Center, utilizing contraband cellphones and non-incarcerated couriers. The remaining defendants in this complaint can be found in the attached public filing. Likewise, CHARLES MANSFIELD, 42, who is presently incarcerated at the Lawton Correctional Facility, and MATTHEW PERRY, 31, who is presently incarcerated at the Lexington Correctional Center, were also charged in the first complaint for their alleged part in distributing drugs imported by the Hernandez DTO from their respective correctional facilities, also through the use of contraband cellphones.
The complaints charge each defendant with conspiracy to possess with intent to distribute and to distribute more than 500 grams of meth. If convicted, each defendant faces a term of imprisonment of no less than ten years and up to life and a fine of up to $10,000,000.
"These charges are the result of tremendous effort, cooperation, and teamwork between law enforcement partners to protect our communities from illegal drugs that devastate communities across the State," said Acting U.S. Attorney Troester. "Specifically, I commend the leadership of the FBI, Oklahoma City Police Department, and the Internal Revenue Service-Criminal Investigation for their countless hours of hard work in bringing this investigation together."
"Cases that are this large and this complex require teamwork, and the results we achieved this week would not have been possible without the collaboration of the law enforcement agencies from throughout Oklahoma," said FBI SAC Godbold. "This partnership led to the arrests and seizures of drugs that will make our streets safer and our communities stronger. It is the type of cooperation that the public not only deserves, but has come to expect from law enforcement and I want to thank and congratulate our partners on this week’s safe and successful operation."
"The Oklahoma City Police Department appreciates the partnerships we have with our state and federal agencies," said OCPD Chief Gourley. "Public safety in Oklahoma City takes a considerable team effort. This investigation is a perfect example of how we work together to combat major crimes, which have a huge impact on the safety of our residents. Methamphetamine use and its associated criminal activity have a detrimental effect on our city and this operation will certainly make our community safer. Thank you to everyone involved for your continued support and dedication to the safety of Oklahoma City residents."
"This week’s arrests are an important victory for the American public. The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs," said IRS-CI SAC Pearson. "Without these ill-gotten gains, the traffickers cannot finance their organizations. The role of IRS-CI in narcotics investigations is to follow the money to financially disrupt and dismantle drug trafficking and money laundering organizations. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice."
This prosecution 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.
These charges are the result of more than two years of state-wide investigation led by the Federal Bureau of Investigation—Oklahoma City Field Office; the Oklahoma City Police Department; and the Internal Revenue Service—Criminal Investigations, with the assistance of Homeland Security Investigations, the Oklahoma Bureau of Narcotics, the Comanche County Sheriff’s Office, and the Lawton Police Department.
Assistant U.S. Attorneys David McCrary and Nick Coffey are prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
4 March 2021
Windsor Woman Sentenced to 12 Months’ Imprisonment for Aiding and Abetting the Preparation and Filing of False Tax Returns with the IRSRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kim Forney, age 48, of Windsor, Pennsylvania, was sentenced today to 12 months’ imprisonment followed by one year supervised release by U.S. District Court Judge Jennifer P. Wilson on four counts of aiding and abetting the preparation and filing of false tax returns.
According to Acting United States Attorney Bruce D. Brandler, on September 23, 2018, police were called to the residence of Matthew and Kim Forney for reports of a shooting. Upon arrival, police discovered that their daughter’s boyfriend had shot both Matthew and Kim Forney. While securing the residence, officers observed bloody footprints leading through the house to an outside pool house. Inside the pool house, the police located a garbage bag, which contained a large amount of bundled United States currency. Police obtained and executed a search warrant. Inside a large gun safe located in the residence, police found additional amounts of bundled cash attached to business receipts. The officers seized the cash and receipts.
The Forney’s daughter’s boyfriend was charged with two counts of aggravated assault in connection with the shooting, but charges were ultimately dismissed on June 19, 2019.
An investigation conducted by the Internal Revenue Service – Criminal Investigation determined that this currency was income that Matthew and Kim Forney earned through their business, but omitted on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
Matthew Forney’s sentencing hearing is scheduled for March 5, 2021 before Judge Wilson.
“The license to run a business is not a license to evade taxes,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. and Mrs. Forney thought they could hoard all of their cash earnings and fly under the radar of the IRS, but they couldn’t be more wrong. Anyone contemplating similar criminal conduct should beware; IRS Criminal Investigation Special Agents are uniquely qualified to trace all sources of income.”
The case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI). Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
# # #
Williamsport Man Sentenced to 210 Months’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wayne Davidson, age 27, of Williamsport, Pennsylvania, was sentenced to 210 months’ imprisonment followed by a four-year term of supervised release by U.S. District Court Judge Matthew W. Brann for his involvement in a drug trafficking conspiracy.
According to Acting U.S. Attorney Bruce D. Brandler, Davidson pled guilty in October 2020 to conspiring to distribute 100 grams or more of heroin (which is approximately 2,000 individual doses) and a mixture of heroin and carfentanil. During a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro reported treating 51 such cases within a 48-hour period.
Two of Davidson’s co-conspirators, Markeese Askew and Nathan Crowder also pled guilty in October 2020 to the same charge. They both face minimum sentences of 11 years’ imprisonment. Raymond Howard was convicted after a five-day jury trial and awaits sentencing.
In total, Davidson and the three co-conspirators were charged with delivering a mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals.
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Alisan V. Martin and Geoffrey W. MacArthur are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Whitley County Man Pleads Guilty to Producing Child PornographyRead the Press Release
LONDON, Ky. - A Williamsburg, Ky., man, Amos Sparkman, 25, pleaded guilty on Tuesday, before U.S. District Judge Claria Horn Boom, to the production of child pornography.
According to his guilty plea agreement, in October 2020, Sparkman started an online relationship with a minor female, using the social media platform Snapchat. Sparkman confessed to a sexual relationship with the minor and possessed a video of the minor engaging in sexually explicit conduct with Sparkman. Sparkman admitted that he used the minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transferred using Snapchat.
Sparkman was indicted in January 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
Sparkman is scheduled to be sentenced on July 13, 2021. He faces a minimum of 15 years and a maximum of 30 years in prison, in addition to a maximum $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
White Supremacists Plead Guilty to Violent Crime in Aid of RacketeeringRead the Press Release
Two members of the Aryan Circle (AC) pleaded guilty this week to their roles in a violent assault of a man in October 2016.
Michael Martin, aka Aryan Prodigy, aka AP, 38, of Austin, Texas, and Bobby Dayle Boney, 50, of Sulphur Springs, Texas, each pleaded guilty to assault resulting in serious bodily injury in aid of racketeering. Martin and Boney committed the assault as part of their membership in the AC, a gang that operates in Texas and other states throughout the country.
This case is part of a larger investigation into the AC, Operation Noble Virtue, that has targeted AC leadership and resulted in prosecutions and convictions in six different jurisdictions to date. According to information presented in court and contained in court filings, the AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Martin and Boney both joined the AC in the early 2000s and have gang tattoos indicating their affiliation. Both served in leadership roles within the gang. For a period of time, Martin served as an upper board member, which meant that he was one of the five highest-ranking leaders in the gang. Also, for a period of time, Boney held the leadership rank of vice president, which meant that he gave orders to other AC members and disciplined members who were not following the gang’s directives, among other things.
Prior to October 2016, AC members learned that another member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Martin ordered AC members to attack the former member in order to “X” him, or remove him from the gang, because it violated the AC’s rules to join another organization. AC members, including Martin and Boney, held a “church,” or meeting, at an AC member’s home in the Tyler, Texas, area where they planned the logistics of the assault.
On Oct. 2, 2016, Martin, Boney, and other AC members met at a park near Tyler to carry out the assault. On Martin’s order, Boney and another AC member violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care.
Martin and Boney will be sentenced at a date to be determined.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas made the announcement.
This case is part of a larger investigation into the Aryan Circle by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas are prosecuting the case.
Washington woman sentenced for meth trafficking on Rocky Boy’s Indian Reservation, Great FallsRead the Press Release
GREAT FALLS – A Washington woman who admitted trafficking methamphetamine on the Rocky Boy’s Indian Reservation and in Great Falls was sentenced on March 3 to seven years in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Georgie Elaine Russell, 41, of Spokane, Washington, pleaded guilty on Oct. 22, 2020 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided. Russell was detained.
The government alleged in court documents filed in the case that the Great Falls Police Department learned in January 2020 that Russell was on federal supervised release for a meth conviction in the Eastern District of Washington and was trafficking meth from Washington to the Rocky Boy’s Indian Reservation and Great Falls. During an approved trip to Montana in January 2020, law enforcement made a traffic stop of a vehicle in which Russell was a passenger. The vehicle was impounded, and a search warrant was obtained. Officers found an air-sealed bag that contained approximately 222 grams of meth, or nearly one half pound of meth.
Assistant U.S. Attorney Ethan Plaut prosecuted the case, which was investigated by the Drug Enforcement Administration, Chippewa Cree Law Enforcement Services and Great Falls Police Department.
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
Utah Resident Pleads Guilty to Federal Charges for $850,000 Mining Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that a Utah man appeared in federal court and pleaded guilty to federal charges for orchestrating an investment scheme involving mining for precious metals. Andrew Malcolm Lovett, 59, a former resident of Cornelius, N.C., currently residing in Utah, pleaded guilty to securities fraud and transactional money laundering before U.S. Magistrate Judge David C. Keesler.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed plea documents and today’s plea hearing, from 2014 to 2016, Lovett executed a financial fraud scheme involving investments in mining projects involving precious metals. During the course of the scheme, Lovett fraudulently obtained nearly $850,000 from more than 30 investors, by inducing victims to invest in Safari Minerals, Inc. (Safari) and other entities with which Lovett was affiliated. To induce victims to invest their money, Lovett falsely told them that their money would be used to grow Safari and to develop various purported mining projects.
According to court records, Lovett described Safari to his investors as “an emerging junior exploration and mining company” that focused on acquiring and developing properties in Nevada which “contains an abundance of … Gold, Silver, Platinum Group Metals and Rare Earth Elements….” Lovett also misled investors by touting his experience as a seasoned businessman with a wealth of experience in the mining industry. As Lovett admitted in court today, among other things, he lied to investors about the progress and viability of Safari and failed to disclose to investors his diversion of several hundred thousand dollars from Safari for his own personal use.
According to documents filed in court, rather than use the victims’ money to grow Safari’s business as promised, Lovett used a significant portion of the investments to pay for personal expenses like rent, entertainment and travel, and to make Ponzi-style payments to other victim investors.
Following his court appearance, Lovett was released on bond. The securities fraud charge carries a maximum penalty of 20 years in prison and a $1 million fine. The transactional money laundering charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI, FBI, and the USPIS for its investigation of the case.
Assistant United States Attorneys Daniel Ryan and Caryn Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
U.S. Attorney’s Office joins federal partners urging taxpayers to ‘Slam the Scam’Read the Press Release
ST. LOUIS - The United States Attorney’s Office for the Eastern District of Missouri and Social Security Office of the Inspector General want you to know about widespread phone scams where callers impersonate government officials.
The imposters tell you about a Social Security-related problem to gain a taxpayer’s trust and steal their money. “Slam the scam” by immediately hanging up!
The predators may:
- Call to threaten you with arrest or legal action if you do not immediately pay a debt, fine or fee.
- Tell you that your Social Security number has been suspended, offer to increase your benefits or resolve identity theft problems in exchange for payment.
- Demand payment using retail gift cards, prepaid debit cards, wire transfers, internet currency or by mailing cash.
- Demand secrecy in handling a Social Security-related problem or tell you to make up a story to tell your friends, family or store/bank employees.
- Text you unsolicited to tell you about a problem with your Social Security number or benefits.
- Email you attached documents containing your personal information to convince you they are Social Security officials.
Hard-working taxpayers should be cautious if they receive an unsolicited call from the government and don’t recognize the problem or issue they’re calling about.
Tips to help ‘Slam the Scam’ include:
- Don’t provide personally identifiable information over the phone.
- Discuss major financial decisions with trusted friends or family.
- If you ever owe money to Social Security, the agency will mail you a letter with payment options and appeal rights.
Taxpayers should report Social Security scams by clicking onto oig.ssa.gov and other scams by clicking onto ftc.gov/complaint.
#####
U.S. Attorney’s Office Reminds Public of CDC Eviction Moratorium OrderRead the Press Release
DETROIT – As part of the federal response to the COVID-19 outbreak, the U.S. Attorney’s Office for the Eastern District of Michigan is reminding landlords of their obligations and tenants of their rights under the Centers for Disease Control’s (CDC) Order temporarily halting residential evictions of tenants who meet certain income eligibility requirements and who are unable to pay their full rent. The Order prohibits landlords from evicting such tenants for non-payment of rent through March 31, 2021.
As the Justice Department recently clarified, the decision of the Texas district court in Terkel v. Center for Disease Control does not extend beyond the particular plaintiffs in the case and does not prohibit the application of the CDC’s eviction moratorium to other parties. Accordingly, the CDC’s Order remains in effect.
The CDC’s Order, imposing a Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, aims to mitigate the spread of COVID-19 by enabling people who get sick or who are at risk for severe illness from COVID-19 to protect themselves and others by staying in one place to quarantine. Under the CDC Order, tenants who meet income eligibility requirements (generally, those earning less than $99,000 per year, or $198,000 if filing jointly) and who are unable to pay their full rent due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses, can obtain protection from eviction by providing a sworn declaration regarding their situation to their landlord. Once this declaration is provided, a landlord is prohibited from evicting the tenant while the moratorium remains in effect. Landlords who violate the prohibition on eviction may be subject to substantial penalties, including fines of up to $250,000 and up to a year in jail.
The Order is not intended to prevent landlords from starting eviction proceedings, but rather to stop the actual eviction of a covered person for non-payment of rent. Moreover, the Order does not affect the obligation of tenants to pay rent, nor does it bar the collection of fees, penalties, and interest.
Acting United States Attorney Saima S. Mohsin encourages anyone who has knowledge of a landlord violating the CDC Order to contact the U.S. Attorney’s Office for the Eastern District of Michigan by calling the Civil Rights Hotline at 313.226.9151 or by sending an email to [email protected]. More information on the CDC Order is available here.
Given the gravity of the current public health crisis, tenants covered by the CDC Order should consider taking appropriate steps to obtain legal protection from eviction and landlords are encouraged to consider alternatives to legal action while the CDC moratorium remains in effect. Federal resources are available through the Consumer Financial Protection Bureau to assist landlords with mortgage relief here.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2010 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edmi/programs/civil-rights
U.S. Attorney’s Office Reminds East Texans to Beware of Social Security Scam CallsRead the Press Release
BEAUMONT, Texas – In connection with the Social Security Administration’s March 4th National “Slam the Scam” Day, the United States Attorney’s Office for the Eastern District of Texas reminds the public to be vigilant of Social Security scam calls.
“For the past year, we have seen a steady increase in Social Security-related scam calls,” said Acting U.S. Attorney Nicholas J. Ganjei. “The financial exploitation of older Americans will not be tolerated. We are partnering with the Social Security Administration Office of the Inspector General to spread the word about these scams. We encourage anyone who receives such calls to hang up.”
“We are working with the Department of Justice and law enforcement agencies across the United States to combat Social Security imposter scams—but our best weapon in this fight will always be awareness,” said Inspector General Gail S. Ennis. “I want to thank the many agencies and organizations that have joined us in our effort this year to alert Americans to hang up on suspicious calls, and talk to their family and friends about phone scams.”
Last year, the (SSA-OIG) received over 700,000 reports of Social Security-related telephone scams—with a total of nearly $45 million lost. Victims reported an average loss of $5,800. The scams involve an imposter calling from what appears to be a local or government phone number. Scammers often use robocalls, but they may also have a live person call. They may also follow up with emails or texts to try to convince you they are a government official, and they are investigating you. These scammers will state that the individual’s Social Security Number has been compromised or has already been suspended for fraudulent activity. The caller may even threaten to suspend the account or have the person arrested if they do not take immediate action.
The U.S. Attorney’s Office and SSA-OIG offer the following information about how to spot these scams:
- SSA may call you in some situations, but will NEVER call you and:
- Tell you that your Social Security Number has been suspended or offer to increase your benefits or resolve an identity theft issue for a fee.
- Threaten you with arrest or legal action if you do not immediately pay a debt, fine, or fee.
- Request immediate payment or even accept payment via gift cards, pre-paid debit cards, cash, wire transfers, or internet currency, such as Bitcoin.
- Demand secrecy from you in handling a Social Security-related problem, or tell you to make up a story to tell your friends, family, or store and bank employees.
- If you owe money to Social Security, the agency will generally mail you a letter with payment options and appeal rights.
- SSA will not send you an email with an attachment containing your personal information.
- SSA will only send you emails or text messages when you have subscribed with SSA to receive updates, or as part of SSA’s enhanced security when accessing your personal my Social Security account.
If you receive such a call, hang up immediately. Do not give anyone your personal information such as your Social Security Number, bank account, or credit card numbers. If you receive a voice mail, do not return the call. Report any scams to OIG.SSA.GOV.
Two Men Indicted for Possession of Firearms While Being Unlawfully in the United StatesRead the Press Release
SAN JUAN, Puerto Rico – On March 3, 2021, a federal grand jury returned a one-count indictment charging Jorge Luis Hernández Flores and Martires Andrés Encarnación Castro with possessing firearms while being unlawfully in the United States, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on February 22, 2021 around 1:40 AM, Jorge Luis Hernández Flores fired multiple shots from a gun while he was driving on Avenida Ramal 8 in San Juan. Nearby police intervened and recovered a Glock pistol near the car, and shell casings in the rear seat. Another Glock was found in the car between Jorge Luis Hernández Flores and the passenger, Martires Andrés Encarnación Castro, who had a fanny packing with almost 100 rounds of ammunition.
Neither Jorge Luis Hernández Flores nor Martires Andres Andrés Encarnación was present legally in the United States.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. Homeland Security Investigations is in charge of the investigation. If convicted, the defendants face up to ten years in prison.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
# # #
Two Fayetteville Residents Arrested on Alien Smuggling for Commercial Advantage, Forced Labor, and Money Laundering ChargesRead the Press Release
RALEIGH, N.C. – Two Fayetteville residents were arrested on charges within an Indictment returned by a federal grand jury and relating to violations of conspiracy to smuggle, transport and harbor aliens for commercial advantage or private financial gain, conspiracy to commit forced labor, and money laundering.
According to the forty-two (42) count indictment, Martha Zelaya-Mejia, age 37, a permanent resident of the United States, born in Honduras, and David Darnell Whitehead, age 42, a United States citizen, conspired with others to smuggle four Honduran females and their minor children from Honduras, through Mexico into the United States for commercial advantage and private financial gain. Once the Honduran females were in the U.S. Zelaya-Mejia, Whitehead and others transported, harbored, and placed them into the residence of an individual residing in Willard, North Carolina in order to obtain the labor and services by means of force, threat, physical restraint, or threats of physical restraint to the Honduran females.
On August 9, 2019, the Pender County Sheriff’s Office responded to a 911 call from one of the Honduran females that was placed at the Willard residence stating that she was not free to leave and was being held against her will, and tased by the owner of the residence.
In order to smuggle the females into the U.S. Zelaya-Mejia, Whitehead and others involved in the conspiracy transmitted thousands of dollars in various wire transfers from locations in the Eastern District of North Carolina to Honduras, Mexico and areas located on the US – Mexican border to smugglers.
If convicted of conspiracy to smuggle, transport, and conceal aliens, Zelaya-Mejia, and Whitehead face up to a maximum imprisonment of 10 years per count, a $250,000 fine, and a term of supervised release following any term of imprisonment. If convicted of conspiracy and forced labor, they face up to a maximum imprisonment of 20 years imprisonment, $250,000 fine and a term of supervised release following any term of imprisonment. If convicted of conspiracy and money laundering, they face up to a maximum term of 20 years imprisonment, $500,000 fine and a term of supervised release following any term of imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina said, “Human smugglers, time and time again, prove the they have little regard for human life. Travelling from Honduras through Mexico into the US with small children, poses immense dangers from smugglers, gangs, and cartels that are only interested in their personal financial gain. This office will continue to aggressively prosecute those organizations that are operating in the Eastern District and deter criminals that choose to take advantage of those that are most vulnerable.”
“The arrests will bring an end to the reign of terror that these two predators inflicted on their victims. Human smuggling is akin to modern day slavery and the perpetrators of this evil do tremendous physical and mental damage to their victims,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. "Having these two off the street is a small step in making this country safer and we will continue our relentless pursuit of any and all who would choose to follow in their path.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with Homeland Security Investigations, Pender County Sheriff’s Office, and the Cumberland County Sheriff’s Office Organized Crime Unit are investigating the case and Assistant U.S. Attorney Gabriel Diaz is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:20-CR-191.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Three Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that CHRISTOPHER BLACKSTONE (“BLACKSTONE”), JOSEPH CAMPO (“CAMPO”), and MARIO DELUCA (“DELUCA”) have each pled guilty in federal court relating to their roles in a health care fraud conspiracy.
BLACKSTONE, age 43, a resident of Baton Rouge, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Lance M. Africk to Count One of a Bill of Information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
CAMPO, age 78, a resident of New Orleans, Louisiana, pled guilty on February 25, 2021 before U.S. District Judge Susie Morgan to Count One of a Bill of Information charging him with conspiracy to commit health care fraud and money laundering, in violation of Title 18, United States Code, Section 371.
DELUCA, age 37, a resident of Metairie, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Jane Triche Milazzo to Count One of a Bill of Information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
According to the charging documents, CAMPO was a licensed pharmacist in the State of Louisiana and worked as the Pharmacist-in-Charge (“PIC”) at Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana. BLACKSTONE served as the owner of Prime and DELUCA served as the Information Technology (“IT”) Director.
Between 2014 and 2016, Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families.
BLACKSTONE, CAMPO, DELUCA, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications.
“Individuals involved in this scheme illegally bilked TRICARE out of close to $15 million and I am pleased that the U.S. Attorney’s Office is requiring justice,” said Special Agent in Charge Cynthia Bruce, Defense Criminal Investigative Service, Southeast Field Office. “There are no victimless crimes and DCIS agents will continue to pursue unscrupulous greedy individuals who steal from our military health care system and all taxpayers.”
The Court set sentencing of BLACKSTONE and DELUCA for August 11, 2021 and CAMPO for August 19, 2021. CAMPO faces a maximum term of imprisonment of five (5) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, a $100 special assessment fee and restitution in the amount of $3,015,579.17 to be paid to TRICARE. BLACKSTONE and DELUCA face a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee. BLACKSTONE has agreed to pay restitution in the amount of $10,689,005 to TRICARE, and DELUCA has agreed to pay restitution in the amount of $777,749.20 to TRICARE.
U.S. Attorney Evans praised the work of the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.
Three Members of Extensive Mail Theft Ring Face Federal ChargesRead the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed today in federal court following the arrest of two of the three defendants charged with mail theft, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.
Haleem Cornelius Gilliland, 23, of Charlotte, North Carolina, Shemar Isaiah Walker, 20, of, Atlanta, Georgia, and Daron Quashawn Wright, 20, of Shelby, North Carolina, are each charged with conspiracy to commit mail theft. Gilliland is also charged with wire fraud and aggravated identity theft. Law enforcement apprehended Gilliland and Walker on March 3, 2021. Wright has not been arrested yet.
According to allegations in the indictment, between November 2019 and February 2020, Gilliland, Walker, Wright and other co-conspirators stole and took letters, postal cards, packages, bags, and other mail (collectively, mail) from the mailboxes of at least nine apartment complexes in North and South Carolina. As alleged in the indictment, Gilliland and other co-conspirators used the stolen mail, including stolen driver’s licenses and stolen credit cards, to pay for car rentals, hotel rooms, and to pay for other personal expenditures.
Gilliland and Walker are currently in custody. The charge of conspiracy to commit mail theft carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a mandatory term of two years in prison, to be served consecutively to any other term of imprisonment imposed, and a $250,000 fine.
The charges contained in the indictment are allegations. The defendants are presumed innocent until and unless proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the USPIS for their investigation which led to the charges.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Three Lewistown family members sentenced to prison for trafficking methamphetamineRead the Press Release
GREAT FALLS – Three members of a Lewistown family were sentenced today for their roles in a methamphetamine trafficking scheme in which meth was sent from California to Lewistown for distribution, Acting U.S. Attorney Leif Johnson said.
Kathleen Elizabeth Francis, 54, of Lewistown, was sentenced to 42 months in prison and four years of supervised release. Francis’ daughter, Amber Rachelle Carr, 36, of Lewistown, was sentenced to 20 months in prison and four years of supervised release. Francis’ mother, Shirley Ann Adcock, 73, of Springfield, Michigan, formerly of California, was sentenced to eight months in prison and three years of supervised release. Francis and Adcock pleaded guilty to possession with intent to distribute meth, while Carr pleaded guilty to conspiracy to possess with intent to distribute meth. All three defendants pleaded guilty on Nov. 10, 2020.
Chief U.S. District Judge Brian M. Morris presided and ordered the defendants to self-report to prison.
In court documents filed in the case, the government alleged that in May 2019, the Lewistown Police Department learned that Francis was receiving packages of meth in the mail from the Bakersfield area in California. The investigation determined that Francis received delivery on two to three parcels per month. When a suspect package arrived addressed to Francis on September 2019 at the Lewistown Post Office, officers obtained a federal search warrant for the package and found it contained about 15 grams of meth. The package was delivered, officers executed a search warrant of Francis’ residence and arrested Francis. While officers were at the home, Carr arrived and was detained.
Carr admitted she had drugs sent to her mother’s house and said that the meth was shipped by Adcock, her grandmother, from California. Francis admitted she was using meth and allowed meth to be shipped to her home in exchange for Carr giving her meth to use. Adcock admitted to mailing the intercepted package, to mailing packages of meth to Francis on two or three prior occasions and to receiving money orders or money transfers for payment of the drugs.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the U.S. Postal Service, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Lewistown Police Department.
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
Three Essex County Men Admit Conspiring to Defraud Banks of over $250,000 Using Credit Cards and Blank Checks Stolen from MailRead the Press Release
NEWARK, N.J. – Three Essex County, New Jersey, men admitted conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced today.
Alexander Varice, 22, and Dashawn Duncan, 27, both of South Orange, New Jersey, and Nasheed Jackson, 24, of Newark; of South Orange, New Jersey, pleaded guilty this week by videoconference before U.S. District Judge Susan D. Wigenton to informations charging each of them with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Varice, Jackson, and Duncan engaged in a scheme to use stolen credit cards or checks to fraudulently make purchases and withdraw money from two banks. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey, and never reached the intended cardholders. After obtaining the stolen cards, Varice, Jackson, and Duncan used them to make unauthorized purchases at various retail stores and to withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. The blank checks were also stolen from various New Jersey-based post office facilities, and never reached their intended recipients. Varice and Jackson altered the date, payee, and amount of the stolen checks prior to deposit into a third-party account so that they could manually enter the amounts that they wanted to fraudulently withdraw from a victim bank ATM.
The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled as follows: Varice, July 13, 2021; Jackson, July 14, 2021; and Duncan, July 19, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. States Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.