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4 March 2021
Texarkana Man Sentenced to 70 Months in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Gerson Eduardo Magana, 25, of Texarkana, Arkansas, was sentenced today to 70 months in federal prison, followed by five years of supervised release, for the Distribution of more than 50 grams or more of pure methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, in the United States District Court’s Texarkana Division.
According to court records, the Federal Bureau of Investigation (FBI) and the Bi-State Narcotics Task Force conducted a controlled purchase of methamphetamine from Magana in June of 2018. The substance purchased from Magana was submitted to the Arkansas State Crime Laboratory, which found it to contain at least 70.8 grams of pure methamphetamine.
Magana was indicted by a federal grand jury in June of 2019 and entered a guilty plea in October of 2019.
This case was investigated by the FBI and the Bi-State Narcotics Drug Task Force. Assistant United States Attorney Graham Jones prosecuted the case for the Western District of Arkansas.
Talladega County Man Sentenced for Possession of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a Childersburg man yesterday for possession of child pornography, announced United States Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge R. David Proctor sentenced Seth Thompson, 41, to 168 months in prison followed by 240 months supervised release. In September 2020, Thompson pleaded guilty to possession of child pornography. This conviction will require him to register as a sex offender.
“Children are the most vulnerable victims and my Office will do everything in our power to prosecute criminals who victimize our children through the internet, videos, or photos,” U.S. Attorney Escalona said.
“I am pleased with the sentence handed down today that now holds Thompson accountable for these sickening crimes,” SAC Sharp said. “I encourage anyone who may have information about possible child sexual exploitation, including posts on social media, to report it to the National Center for Missing and Exploited Children (NCMEC) at CyberTipline.org or by calling 1-800-THE-LOST. This case emphasizes the importance of concerned citizens making those reports.”
According to the plea agreement, law enforcement received Cyber-Tips from the National Center for Missing and Exploited Children ("NCMEC") that images of child pornography had been uploaded to certain Facebook and Google accounts registered to Thompson. Thompson was located and arrested by Childersburg police on unrelated charges, and a federal search warrant was obtained for Thompson’s cell phones. During a forensic review of Thompson’s cell phones, a total of 153 images and 69 videos of children being sexually exploited were identified. Thompson admitted he had seen images of child pornography and that he had received certain images and videos in a Kik group.
The FBI investigated the case, along with Alabama Law Enforcement Agency and with the assistance of Childersburg Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Croix Man Sentenced to a Total of 15 Years in Prison for His Murder-for-Hire Plot and for Attempted Retaliation against a WitnessRead the Press Release
St. Croix, USVI – The United States Attorney, Gretchen C.F. Shappert announced today that on Wednesday, March 3, 2021, Chief Judge Wilma Lewis sentenced Delroy Thomas, 30, of St. Croix, to 120 months in prison, a $3,000 fine, three years of supervised release and a $100 special assessment for the federal charge of murder for hire. Judge Lewis also sentenced Thomas to five years on the Virgin Islands local charge of attempted retaliation against a witness, to run consecutive to the federal sentence.
According to the evidence presented at a July 2019 trial, between March 9, 2015 to March 11, 2015, Thomas made a series of telephone calls, while in Golden Grove Correctional Facility, to another inmate. He solicited the inmate’s assistance to eliminate two witnesses in his pending Superior Court case. Thomas described the location of the witnesses’ residence to the inmate and texted their photographs to the other inmate. He told the inmate that he wanted them “off”; that he was dead serious; that he would get the gun (to commit the murders of the witnesses); that this was the result of Thomas’s eight months of thinking; and that there were no ifs, ands, buts or changing of his mind.
Thomas discussed the price for the planned “hit” and directed a female to place $500.00 into a particular vehicle, intending that the money would serve as a down payment for the planned murders. He also admitted that if the inmate did not carry out the hit, he (Thomas) would find someone else to commit the crimes. Unbeknownst to Thomas, the inmate with whom Thomas was communicating was a confidential informant for the Drug Enforcement Administration, which recorded the phone calls. One of the witnesses at trial identified Thomas’s voice on the calls.
Post arrest, Thomas told agents that he may have discussed eliminating witnesses in his case with other inmates when he was angry, but he denied that there was any murder for hire plot. Thomas testified at his trial that he did make the recorded statements in the jail calls, but that was merely “going along” with a scheme by the inmate, who had threatened him into participating in the calls. Thomas claimed that the calls were rehearsed, and that he simply followed the plan.
The Government, however, presented evidence of text messages Thomas sent to other individuals, before the phone calls, stating in substance that Thomas was planning a massacre and that if officials did not let him out of prison, he would put a hit on the witness and her mother.
On March 12, 2015, Bureau of Corrections officers searched Thomas’s prison cell and seized three cellular telephones and a knife from a chase accessible from his cell.
This case was investigated by the Drug Enforcement Administration, the Virgin Islands Police Department and the Gang Intelligence Search Team of the V.I. Bureau of Corrections. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
St. Croix Man Sentenced to 14 Months for Cocaine Possession ConvictionRead the Press Release
St. Thomas, USVI – Malachi Benjamin, 25, was sentenced to 14 months and 10 days by District Judge Robert A. Molloy on his conviction of possession with intent to distribute cocaine, United States Attorney Gretchen Shappert announced today. Judge Molloy also sentenced Benjamin to three years of supervised release and $100 special assessment.
According to court records, on June 14, 2018, Virgin Islands Police Department (“VIPD”) officers conducted a traffic stop of a vehicle operated by Glenn David with Benjamin in the front passenger seat. After the traffic stop, officers approached Benjamin to advise him that he was a person of interest in recent double homicide on St. Croix, and Benjamin responded by immediately fleeing the scene on foot. After Benjamin fled the scene, David, the driver and owner of the vehicle, granted the officers permission to search his vehicle.
A forensic team of VIPD officers later recovered three pre-packaged baggies of suspected cocaine hidden inside of a Pepperidge Farm container. The suspected cocaine was recovered from the passenger side floor of the vehicle where Benjamin had been seated.
A field test conducted on the suspected cocaine yielded a positive result. The forensic team also collected buccal swaps from the cocaine baggies that were hidden inside of the Pepperidge Farm container for DNA analysis. When compared with DNA previously collected from Benjamin, a DNA laboratory confirmed that Benjamin was the source of DNA collected from the cocaine wrappings.
Benjamin is also charged in the Virgin Islands Superior Court with unlawful firearm possession charges, and in the U.S. District Court with drugs and firearms conspiracy charges.
This case was investigated by Drug Enforcement Administration and the Virgin Islands Police Department.
Smith County Woman Sentenced for Methamphetamine TraffickingRead the Press Release
TYLER, Texas – A Tyler, Texas woman was sentenced to prison today for a federal drug trafficking crime in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Alexa Leigh Brown, 51, pleaded guilty on Sep. 8, 2020, to possession with intent to distribute methamphetamine and was sentenced to 71 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“The illegal drug trade brings with it violence, property crime, and severe health risks,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are committed to aggressively investigating and prosecuting those who would harm our communities.”
According to information presented in court, beginning in April 2019, Brown sold more than 165 grams of methamphetamine to a confidential informant over five separate occasions. On August 26, 2019, Brown was arrested following the execution of a search warrant at her residence in Tyler, which resulted in the seizure of additional quantities of methamphetamine and firearms. Brown and eight other co-conspirators were indicted by a federal grand jury on Jan. 15, 2020, and charged with violations of federal drug trafficking and firearms laws.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Smith County Sheriff’s Office; and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.
Sioux Falls Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on March 1, 2021, by U.S. District Judge Karen E. Schreier.
Samantha Kay Hill, a/k/a Samantha Kay Rieger, age 33, was sentenced to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hill was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 20, 2020. She pled guilty on December 7, 2020.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately July 20, 2020.
On October 12, 2019, a vehicle Hill was driving, for the purposes of transporting methamphetamine, was stopped and searched by law enforcement. Inside the vehicle, law enforcement located over 50 grams of actual methamphetamine.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Hill was immediately turned over to the custody of the U.S. Marshals Service.
Rogers County Mother Charged with Production of Child PornographyRead the Press Release
A 29-year-old Claremore woman has been indicted in federal court for producing child pornography involving her young child, announced Acting U.S. Attorney Clint Johnson.
Brittney Jo Wallace was charged with production of child pornography by a parent and with possession of child pornography. The Court ordered Wallace detained pending trial.
“This Office seeks justice for victims, period. The allegations against Brittney Wallace are heartbreaking, and I have confidence that Assistant U.S. Attorney Tilli Villalobos will fight for this young child and hold the defendant accountable under the law,” said Acting U.S. Attorney Clint Johnson. “I appreciate the dedicated work of the OSBI Internet Crimes Against Children Unit and Tulsa’s Homeland Security Investigations Child Exploitation Task Force who led this investigation and their commitment to protecting Oklahoma’s children.”
“We are thankful to work with our state and federal partners on behalf of the children of Oklahoma,” said Oklahoma State Bureau of Investigation Director Ricky Adams. “Through our collaborative efforts at the local, state and federal levels, we will do all we can to protect our children and take child sexual predators off the streets.”
According to the indictment, Wallace knowingly permitted the young child to engage in sexually explicit activity while she took photos on her cell phone on Sept. 26, 2015. From Sept. 26 to May 13, 2016, Wallace also knowingly possessed with intent to view the child pornography.
At a detention hearing on March 2, Assistant U.S. Attorney Matilda Villalobos argued the defendant was a danger to the community and should be detained based on her criminal record and evidence she abused her children in 2015 and 2016. AUSA Villalobos stated evidence would show that in 2016, the defendant’s children were taken from the home after a doctor found signs of severe child abuse. Wallace’s parental rights were later terminated. The Court ruled in favor of the United States and ordered the defendant detained.
During the 2016 investigation conducted by the State, authorities seized the defendant’s phone which was later suppressed. Recently, the Oklahoma Court of Criminal Appeals found the seizure and subsequent search of her phone were proper, and it was turned over to investigators. When authorities conducted a forensic examination of the phone, they discovered the alleged child pornography.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On March 1, 2021, the U.S. Marshal Service arrested Wallace on a federal arrest warrant. The Oklahoma State Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Rogers County Sheriff’s Office, and Claremore Police Department conducted the investigation.
Assistant U.S. Attorney Matilda Villalobos is prosecuting the case. AUSA Villalobos is a prosecutor from the District of New Mexico. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress.
If you suspect a child is being sexually exploited, contact the National Center for Missing and Exploited Children immediately at 1-800-THE-LOST or cybertipline.org. You can also contact the OSBI ICAC Unit at (800) 522-8017 or [email protected].
Robert and Todd Morgan, Two Others, Charged with Wide-Ranging Mortgage and insurance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 104-count indictment charging Robert Morgan, Todd Morgan, Frank Giacobbe, and Michael Tremiti, with conspiracy to commit wire fraud and bank fraud for their roles in a wide-ranging mortgage fraud scheme. The defendants each face charges of wire and bank fraud. Robert and Todd Morgan are also charged with defrauding insurance companies. The charges carry a maximum penalty of 30 years in prison and a fine in the amount of double the loss caused by the crimes.
“Upon executing search warrants in this case, my Office, together with our law enforcement partners, acted quickly to take action in an effort to try to limit the amount of damage occasioned by the defendants’ alleged widespread fraud,” noted United States Attorney Kennedy. “While that effort succeeded in that objective, the unfortunate truth is that the swiftness with which we moved may have also contributed to the reasons for which the original indictment in this case was dismissed by the Court. In the end, however, this new indictment now ensures that the defendants will be held to answer for the serious crimes alleged therein.”
Assistant U.S. Attorneys Elizabeth R. Moellering and Douglas A.C. Penrose, who are handling the case, stated that according to the indictment, between 2007 and January 2019, the defendants conspired with Kevin Morgan, Patrick Ogiony, Scott Cresswell, and others fraudulently to obtain funds from financial institutions such as Arbor Commercial Mortgage, LLC, Berkadia Commercial Mortgage, LLC, UBS and Deutsche Bank, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae).
During the course of the conspiracy, the defendants engaged in a scheme to defraud financial institutions and government sponsored enterprises by providing false information to lenders in support of applications for mortgage loans to purchase properties, refinance properties or build properties. As part of the applications for mortgage loans, the defendants submitted inflated and false rent rolls which included non-existent tenants and inflated rents to fraudulently increase the income for a building in order to justify a loan amount that they would not otherwise qualify for. Similarly, in order to further inflate the income, defendants told lenders they were receiving fake fees, such as stating that residents paid for cable when it was actually included in the rent. Defendants also fraudulently reduced and improperly capitalized expenses in order to make the property appear to generate more income to, again, justify a larger mortgage loan than they would otherwise qualify for.
The defendants took steps to conceal the fraud from the lenders, including by making vacant units appear occupied during inspections by turning radios on in vacant units, by placing welcome mats and shoes in hallways outside vacant units, and by paying individuals to pretend to be tenants in units the inspectors would enter.
In the wire fraud conspiracy to defraud insurers, Todd Morgan and Robert Morgan are accused of conspiring with Kevin Morgan and Scott Cresswell to present false and inflated contracts and invoices to insurance companies for repairs after damages to properties in Robert Morgan’s real estate portfolio.
While the loans which were the subject of defendants’ alleged fraudulent conduct exceeded $400 million in value, the total loss sustained by financial institutions and government sponsored enterprises throughout the mortgage fraud scheme is currently estimated to exceed $9,500,000. The loss resulting from the insurance fraud scheme is currently estimated at approximately $3,000,000.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder and were released on conditions.
Defendants Kevin Morgan and Patrick Ogiony were previously convicted of conspiracy to commit bank fraud, and defendant Scott Cresswell was previously convicted of conspiracy to commit wire fraud for their roles in the multi-million dollar fraud scheme. All three defendants are awaiting sentencing.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
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.
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Roanoke Man Sentenced on Child Enticement, Child Pornography ChargesRead the Press Release
ROANOKE, Va. - A Roanoke man, who used an online chat website to engage in sexually explicit conversations with a 12-year-old child and later induced the victim to engage in sexually explicit conduct over video chat, was sentenced today in U.S. District Court here to 150 months in federal prison to be followed by 10 years of supervised release, Acting United States Attorney Daniel P. Bubar announced.
Roger Allen Bellini, 31, pleaded guilty in 2020 to one count of coercion and enticement of a minor and one count of possession of child pornography.
“As this case demonstrates, online predators are all too real and willing to prey upon our children using computers,” Acting U.S. Attorney Bubar stated today. “We hope that today’s sentence continues the healing process for the victim in this case and reinforces the need for continued vigilance as we spend increasing portions of our lives online.”
According to court documents, Department of Homeland Security (DHS) Homeland Security Investigations (HIS) learned that Bellini used an online messaging service to send and receive child pornography. Forensic review of his devices showed that Bellini possessed dozens of videos and hundreds of images of child pornography. HSI agents interviewed Bellini, who admitted to possessing child pornography. Bellini also admitted to using a video chat website to engage in sexually explicit communications with children. Specifically, Bellini admitted to communicating with a 12-year old child and used screen capture software to record his computer screen while he engaged in video chats with the minor. In these video chats, Bellini exposed his genitals and induced the minor to engage in sexually explicit conduct.
The investigation of the case was conducted by Department of Homeland Security- Homeland Security Investigations. Department of Justice Trial Attorney Leslie Fisher, Trial Attorney Eduardo Palomo, and Assistant United States Attorney Rachel Swartz prosecuted the case for the United States.
Raymond Man Convicted for Attempted Possession of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Nathaniel Walker, 33, of Raymond, Nebraska, was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for attempted possession of child pornography. Walker was sentenced to 11 years in prison and 10 years of supervised release. There is no parole in the federal system. Walker was additionally ordered to pay $9,000 in restitution.
This case began when Kik flagged a September 29, 2018 conversation in which Walker and other Kik users discussed an interest in child pornography and Walker shared a link to a Dropbox folder which contained child pornography material. On March 2, 2019, Homeland Security Investigations conducted a knock and talk with Walker at his residence. Walker admitted he used Kik about three times a week at night to seek out child pornography. Walker also admitted that he would share links during Kik chats which he knew contained child pornography, but that he did not own the Dropbox accounts. He indicated that he shared these links in the hopes of receiving new links from other individuals on Kik. Walker had previously been convicted in 2012 of attempted possession of child pornography in Lancaster County.
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 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 Homeland Security Investigations.
Public Warning: Please Report Scam CallsRead the Press Release
JEFFERSON CITY, Mo. – It has come to our attention that a number of residents in various parts of the state have received scam calls that falsely claimed to be from the U.S. Attorney’s Office in Jefferson City, Mo. In some instances, the caller claimed to be with Cyber Crimes and said they (the receiver of the call) had a phone that was identified as a phone used in a cyber crime.
The public should be on the alert for such calls, and aware that the U.S. Attorney’s Office does not contact the public in this manner. If you receive such a call, please contact the FBI at 816-512-8200.
Phoenix Man Sentenced to 15 Years for Planning to Release Stolen Radiological Materials in Scottsdale and PaysonRead the Press Release
PHOENIX, Ariz. – Jared Trent Atkins, 27, of Phoenix, Arizona, was sentenced today by U.S. District Judge John J. Tuchi to 15 years in prison, followed by twelve years of supervised release. Atkins previously pleaded guilty to attempted use of a weapon of mass destruction.
In the early morning hours of April 28, 2019, Atkins entered a gas station in Phoenix, Arizona, and stabbed the night clerk working inside. Atkins then fled the gas station and drove to his place of employment, where he stole three radiological devices containing Iridium-192 along with the tools to open the devices and expose the radiological material. Approximately one hour after the stabbing and theft, Atkins set fire to a vehicle at a Mesa car dealership.
Atkins texted his co-workers to inform them he had the radiological devices. He warned his co-workers to stay home until the devices were found. Security footage from Scottsdale Fashion Square Mall shows Atkins driving on Camelback Road adjacent to the Mall. Atkins later told the Federal Bureau of Investigation (FBI) he intended to have a “last stand” and considered conducting it at the Mall.
Atkins then drove to Mt. Ord in the Payson area and called his family to say goodbye. Atkins opened one of the radiological devices. Atkins planned to commit suicide by irradiation, knowing he would harm anyone who tried to stop or arrest him. For unknown reasons, however, Atkins closed the radiological device and returned to Phoenix.
Later the same morning, Atkins drove back to his apartment, with the radiological devices and the bloody knife he used to stab the gas station clerk. The Phoenix Police Department and FBI agents responded to the scene, but Atkins barricaded himself inside his apartment. After roughly two hours of a standoff and working with a negotiator, Atkins agreed to surrender and was taken into custody without further incident. Law enforcement safely recovered all three radiological devices, including all stolen radiological material, from Atkins’s vehicle.
On April 28, 2019, Atkins was arrested on state charges in Maricopa County. He subsequently pleaded guilty to Aggravated Assault and Arson of Property, and was sentenced to three and a half years in prison. Atkins’s federal sentence will run consecutive to his state sentence.
“Today’s sentence sends a powerful message of deterrence to would-be criminal actors who plan to weaponize industrial technologies,” said Acting United States Attorney Anthony Martin. “As was done in this case, we stand ready to work alongside our federal and state partners to respond quickly to any threats to public safety.”
“This case is a prime example of how the FBI and our partners come together to keep our communities safe,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “From beginning to end, this investigation was truly a team effort. I commend the FBI’s Joint Terrorism Task Force and the Phoenix Police Department, which did significant work on this investigation from the day of the incident, to the weeks, and months that followed. I also commend the Phoenix Stabilization Task Force members, who played an important role in this case by finding and successfully securing the radiological material.”
The FBI Joint Terrorism Task Force and the Phoenix Police Department investigated the case, with support and assistance from the FBI Phoenix Stabilization Task Force, Laboratory, and Intelligence Analysts.
This case was prosecuted by Assistant U.S. Attorney Kristen Brook of the District of Arizona, and Celeste Corlette and Jason Denney of the National Security Division’s Counterterrorism Section.
CASE NUMBER: CR-20-00344-PHX-JTT
RELEASE NUMBER: 2021-112_Atkins# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Philadelphia Woman Sentenced to Three Years in Prison for Firearms TraffickingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Elena Ramirez, 34, of Philadelphia, PA, was sentenced to three years in prison and three years of supervised release by United States District Court Judge Gene E.K. Pratter, for trafficking weapons and ammunition as part of her family’s firearms trafficking ‘business’ in Philadelphia.
In November 2020, the defendant pleaded guilty to conspiracy to deal in firearms without a license, dealing in firearms without a license, and possession of a machinegun and a non-registered machinegun, arising from a series of purchases made during the course of an undercover law enforcement operation. In January 2019, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) purchased a total of 19 machinegun conversion devices, two privately made firearms (“PMFs”), two rifles, and more than one hundred rounds of ammunition over four separate transactions from Ramirez. The defendant provided the inventory for these transactions and received the net-profits from the sales, which were brokered through a co-defendant, Matthew “Montana” Stephens, who received a percentage of each sale as a fee.
In 2019, the defendant’s brother, Mario Ramirez, was indicted for selling firearms, ammunition and machinegun conversion devices, also with the help of Stephens, and is awaiting sentencing. Thus, despite having personal knowledge of the legal consequences of engaging in firearms trafficking, Elena Ramirez stepped into her brother’s role and continued to supply weapons for sale.
“Elena Ramirez threatened the safety of our communities by illegally selling firearms on the street,” said Acting U.S. Attorney Williams. “Even after witnessing her brother’s arrest and conviction for the exact same crimes, this defendant chose to follow in his footsteps and will now spend years in prison. Thanks to the steady, determined efforts of investigators at the ATF, the Ramirez family business is closed.”
“Federal law requires gun dealers to obtain a license and to conduct background checks on their customers,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “These laws are in place to prevent guns from falling into the hands of dangerous people. When a person circumvents the license-and-background-check framework by engaging in the business of unlicensed dealing, that person increases the threat to public safety. ATF, along with our local, state and federal partners, are committed to countering that public safety threat as a part of its broader strategy to combat violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Philadelphia Armed Robber Sentenced to 30 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Hughes, 32, of Philadelphia, PA, was sentenced to 30 years in prison, five years of supervised release and ordered to pay restitution to his victims by United States District Court Judge Cynthia M. Rufe, for two armed robberies in which two victims were shot in the leg in August 2016.
In January 2020, a jury convicted Hughes of all charges against him: two counts of robbery which interferes with interstate commerce (known as Hobbs Act robbery), and two counts of using, carrying, bradishing, and discharging a firearm during and in relation to a crime of violence. The charges stem from Hughes’s participation in an armed robbery and shooting, along with co-defendant Nashadeem Henderson, of a marijuana dealer in the area of 2600 Allegheny Avenue in Philadelphia; and an armed robbery and shooting of a pizza deliveryman employed by Mimmo’s Pizza in the area of 3000 North Taney Street in Philadelphia. Henderson pleaded guilty prior to the trial and was sentenced to 18 years in prison for his role in the crimes.
“Michael Hughes acted with complete disregard for the lives of his victims, shooting indiscriminately in an effort to score some quick cash,” said Acting U.S. Attorney Williams. “Philadelphia is in the midst of a public safety crisis, with alarming rates of homicides and shootings. Our Office is doing everything it can to investigate and aggressively prosecute violent crimes like those committed by this defendant.”
“Michael Hughes took part in two violent armed robberies in one week, which saw two victims shot and seriously wounded,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Anyone who thinks they can make their money this way, anyone who thinks they can carry out this kind of crime with impunity, should take a good hard look at the 30-year sentence just handed down to Mr. Hughes. The FBI and our partners are committed to combating the violence scarring so many lives in Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and Roberta Benjamin.
Pharmacist Sentenced to More Than 14 Years in Federal Prison for a Drug Distribution Conspiracy and for Murder for HireRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced David Robinson, age 51, of Baltimore, Maryland, to 171 months in federal prison, followed by three years of supervised release, for the federal charges of conspiracy to distribute oxycodone and alprazolam and for murder for hire. Robinson, formerly a licensed pharmacist who owned and operated the Frankford Family Pharmacy, located in the 5400 block of Sinclair Lane in Baltimore pleaded guilty on October 10, 2018, to a federal drug conspiracy involving the distribution of oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose. On December 17, 2020, Robinson pleaded guilty to a federal charge of murder for hire, admitting that he ordered a “hit” on the person he believed had cooperated with law enforcement that led to his indictment on those charges. Robinson’s pharmacist license was suspended on August 7, 2017.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Commissioner Michael Harrison of the Baltimore Police Department; and Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services.
“Pharmacists who divert pharmaceutical drugs for illegal purposes further the tragic cycle of addiction and the epidemic of opioid overdose deaths,” said Acting U.S. Attorney Jonathan F. Lenzner. “David Robinson not only betrayed the trust placed in him by diverting drugs in order to line his own pockets, he then attempted to have the person killed whom he believed had reported his abuses. We have zero tolerance for any effort to intimidate or retaliate against witnesses.”
According to Robinson’s plea agreement for the drug distribution conspiracy, a confidential source (CS-1) advised law enforcement that the pharmacist at Frankford Family Pharmacy knowingly filled fraudulent prescriptions for alprazolam and oxycodone at the pharmacy. During the DEA’s investigation, between January and July 2016, the confidential source made a number of controlled purchases from Robinson at the pharmacy, using blank prescriptions provided to the source by DEA. Robinson knew that the prescriptions were fraudulent because he told the confidential source what name to use on the prescriptions and what quantity of oxycodone tablets to write on the prescriptions. Robinson also told the source to include non-controlled medications on the same prescriptions in order to evade law enforcement. Between April 2015 and June 2017, Robinson fraudulently distributed approximately 12,330 units of alprazolam and 10,000 milligrams of oxycodone.
On June 22, 2017, a federal grand jury in Maryland indicted Robinson for a drug conspiracy involving the distribution of oxycodone and alprazolam. Robinson was arrested on June 27, 2017 and was released from custody on June 29, 2017, under the supervision of U.S. Pretrial Services. On October 10, 2018, Robinson pled guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone and alprazolam and one count of distribution and possession with intent to distribute oxycodone and alprazolam. Robinson was allowed to continue on conditions of release until his sentencing, scheduled for February 15, 2019.
DEA investigators also learned that during Robinson’s tenure as a pharmacist working the night shift at a pharmacy in Waldorf, Maryland, Robinson also filled fraudulent prescriptions for oxycodone. Robinson admitted that he wrote prescriptions using the names of prominent athletes provided to him as the purported patients. Between September and December 2015, Robinson admitted that he dispensed at least 85,500 milligrams of oxycodone outside the scope of professional practice and not for a legitimate medical purpose.
On October 27, 2018, Baltimore City’s Citi-Watch camera system captured a drug transaction, which led to the arrest of an individual, CS-2. A search of CS-2’s vehicle resulted in the recovery of two shoeboxes containing a total of 35 stock pharmacy bottles of the prescription medications promethazine and clonidine.
CS-2 had obtained the prescription medications from David Robinson. CS-2 had known Robinson for approximately three years, and had previously purchased oxycodone, Xanax, clonidine, and promethazine from Robinson at the Frankford Family Pharmacy. After the search warrant was executed at Robinson’s pharmacy on June 27, 2017, Robinson began providing CS-2 with boxes of medications in exchange for cash without requiring a prescription. Robinson continued to sell promethazine and clonidine and six months after the raid, Robinson was still ordering pills from his vendors.
As detailed in his plea agreement for the murder for hire, following his arrest in 2017, Robinson told CS-2 about an individual that Robinson believed had cooperated with law enforcement and led to his arrest (i.e., CS-1). CS-2 and Robinson had a discussion about CS-1 being killed. After some time, the two agreed to have CS-1 killed. Robinson provided CS-2 with some information about CS-1. CS-2 told Robinson that he/she knew someone that could do a “hit” on CS-1. CS-2 told Robinson that the fee would be $5,000 up front and $5,000 when CS-l was killed.
Robinson admitted that from December 13, 2018 through February 7, 2019, CS-2 made three controlled purchases of drugs from Robinson, at the direction of law enforcement, using cash provided by DEA agents. CS-2 purchased a total of 118 stock pharmacy bottles of clonidine, each containing 100 tablets; and 24 stock pharmacy bottles of 50 mg promethazine tablets, with each bottle containing 100 tablets. Robinson did not request, nor did CS-2 provide, a prescription for any of the drugs.
During a controlled purchase on January 24, 2019, CS-2 and Robinson discussed the murder of CS-1 (which was audio-recorded). During this conversation, they discussed a $5,000 fee that had already been paid to the hitman, and that an associate of the hitman had information about the location of CS-1. The associate wanted an additional $3,000 to be paid to him/her in order to provide CS-1’s location to the hitman. Robinson was upset over this additional fee required to identify the location and accomplish the murder of CS-1 and did not agree to pay the additional fee. On February 4, 2019, CS-2 sent a text message to Robinson’s cell phone advising that he had provided the additional $3,000 in order to obtain CS-1’s address.
On February 14, 2019, CS-2 called Robinson and told Robinson that the murder was done and that the hitman would want his money. CS-2 then met with Robinson, who provided CS-2 with $2,000. CS-2 put the cash in his pocket and Robinson asked CS-2 for proof that the murder had been completed. CS-2 showed Robinson several fake photos in which it appeared that CS-l had been bound with zip ties, shot several times, and killed. After the meeting, law enforcement arrested Robinson.
Robinson will also forfeit items seized on June 27, 2017 during the execution of search warrants at his residence, the Frankford Family Pharmacy, his vehicle, and a safe deposit box rented by Robinson. These include: $159,862 in cash from Robinson’s home; $46,927 in a briefcase, blank prescriptions, a prescription pad, and a loaded 9mm pistol from Robinson’s car; $60,486 in cash, an AR-15 rifle with a magazine, several boxes of ammunition for the rifle from the pharmacy; and $25,041 in cash, $4,500 in gold coins, and $1,010 in silver coins from the safe deposit box.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, HHS OIG, the Baltimore Police Department, and the Maryland Department of Public Safety and Correctional Services for their terrific work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
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Orange County Man Sentenced to 5 Years in Prison for Threatening to Attack SchoolRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Kevin P. Bruen, Acting Superintendent of the New York State Police (“NYSP”), announced that BRENDAN VAUGHAN was sentenced today to 60 months in prison, in connection with threats VAUGHAN made to classmates and law enforcement to carry out a school shooting in Washingtonville, New York. VAUGHAN pled guilty to a three-count Information on December 3, 2019, before U.S. Magistrate Judge Judith C. McCarthy, and was sentenced today by U.S. District Judge Kenneth M. Karas.
U.S. Attorney Audrey Strauss said: “In the wake of the many recent tragic school shootings committed in our country, parents, school administrators, and students are increasingly alert to the frightening possibility that their community could be next. The defendant callously preyed on those fears in one community with a series of terrifying threats spread out over months, and took steps to act on those threats. Today’s sentencing sends a clear message that making violent threats will merit a serious prison sentence.”
FBI Assistant Director William F. Sweeney Jr. said: “No child should have to live in a society where the simple act of going to school invokes a sense of fear. Unfortunately, for many school-aged children, this has become an all-too-familiar reality. Vaughan’s clear and direct threats to his fellow classmates and others were so egregious that he was ultimately charged and convicted of a federal crime. May this, along with the sentencing he received today, serve as a message to others like him – there are life-changing penalties for this type of behavior.”
State Police Acting Superintendent Kevin P. Bruen said: “I applaud the work done by the State Police and our law enforcement partners on this case, which no doubt saved lives. Threats to our schools and the communities we serve are always taken seriously, and investigated to the fullest. We are committed to working with our law enforcement partners to combat and prevent these types of crimes from occurring. Our priority is the safety of all New Yorkers.”
According to the Information, court filings, and statements made during court proceedings:
In May 2018, VAUGHAN, who was then a senior at a high school in Washingtonville, New York, communicated to a number of classmates via a social media chat group that he intended to carry out a school shooting on the final day of school. Even after being visited by law enforcement toward the end of May 2018, VAUGHAN continued his threatening behavior by sending additional threatening messages to a classmate about committing a school shooting and asking that classmate “not to go to the cops.” VAUGHAN also took some preliminary steps toward carrying out such an attack, including drafting a kill list, compiling lists of his “favorite” school shooters, researching “pipe bombs” on the Internet, accessing a website to purchase a firearm, and composing diary entries expressing his desire for imminent “revenge.” VAUGHAN also told a law enforcement officer that he intended to kill a specific classmate.
In August 2018, VAUGHAN sent a number of additional messages on social media in which he threatened an imminent attack in Washingtonville. Specifically, on successive days, VAUGHAN posted:
- a message that said: “I regret nothing,”
- a graphic that included the text “The 845” (that is, the designated area code for Hudson Valley) and a series of 15 gun and bomb emojis,
- a video depicting a red plastic gas container and pool chemicals with the text: “[smiley face emoji] Plans [smiley face emoji] bang.bang,” and,
- immediately following the posting of the pool chemical video, a video of himself in a car in which he was turning the ignition on and clutching the steering wheel.
After VAUGHAN was detained in March 2019, he continued his threatening behavior, compiling another kill list that included classmates, family members, medical personnel, and the FBI agent and Assistant U.S. Attorney assigned to his case.
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In addition to his prison sentence, VAUGHAN, 20, of Campbell Hall, New York, was sentenced to three years of supervised release.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, the Washingtonville Police Department, the New York State Police, and the Orange County District Attorney’s Office.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution.
Northern Colorado Man Pleads Guilty for Possessing Pipe BombsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Bradley Bunn, 55, of Loveland, Colorado, pleaded guilty to one count of making destructive devices and four counts of possessing destructive devices in violation of Title 26, United States Code, Section 5861. Each count carries a maximum potential penalty of 10 years imprisonment, followed by three years of supervised release. Bunn was remanded to the custody of the U.S. Marshals following today’s hearing before U.S. District Judge Christine Arguello. A sentencing hearing is scheduled for June 3, 2021.
According to the facts contained in the plea agreement, on May 1, 2020, the FBI executed two search warrants at Bunn’s home. They found four explosive devices. Each device consisted of galvanized steel pipe with end caps and a fuse. The devices measured 2 inches in diameter and between 13.5 and 9.25 inches in length. FBI Bomb Technicians concluded that each of the devices was filled with explosive materials. Agents recovered additional bomb-making components in the house, including more steel pipes, end caps, primers, fuses, and bottles of smokeless powder. The defendant had not registered the devices in the National Firearms Registration and Transfer Record and he had not complied with any regulations concerning the making of destructive devices.
“The United States Attorney’s Office is committed to making Colorado safer,” said Acting United States Attorney Matthew T. Kirsch. “Thanks to the hard work of our law enforcement partners and prosecutors, we were able to find and remove these dangerous devices before the defendant could cause serious harm.”
“The operation to remove and render safe the explosives discovered in Mr. Bunn's home averted a potentially hazardous situation from endangering innocent people in our community. According to facts in the public record, Mr. Bunn knowingly and willingly assembled home-made explosives with the intent to use them against law enforcement,” said FBI Denver Special Agent in Charge Michael Schneider. “The FBI and our partners stand ready to identify, disrupt, and dismantle any plans to inflict harm on our communities and hold individuals accountable for their criminal actions.”
The investigation was conducted by the Federal Bureau of Investigation, the ATF, the Northern Colorado Bomb Squad, and the Larimer County Sheriff’s Office. Assistant United States Attorney David Tonini is handling the prosecution.
Case number: 20-cr-00158-CMA
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North Dakota man sentenced to more than 12 years in prison for meth trafficking at Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A North Dakota man convicted of methamphetamine trafficking crimes after investigators seized nearly two pounds of meth that were hidden in a pinata and a jar of peanut butter was sentenced today to 12 years and six months in prison followed by five years of supervised release, Acting U.S. Attorney Leif Johnson said.
A jury found Christopher Michael Stebbins, 53, of Williston, N.D., guilty on Nov. 6, 2020 of conspiracy to possess with intent to distribute meth and with attempted possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided and continued Stebbins’ detention.
In court documents and during trial, the prosecution presented evidence that on Nov. 8, 2019, Don Fred Baldwin, of Merced, California, mailed almost two pounds of meth to Stebbins to an address of a Brockton residence, located on the Fort Peck Indian Reservation. The meth was hidden in a jar of peanut butter and inside a “cop dog” pinata. Law enforcement officers intercepted the package, obtained a search warrant and found 1.7 pounds of meth inside the pinata and the peanut butter jar. The quantity of meth seized is the equivalent of about 6,208 doses. Baldwin was sentenced to six years in prison for conviction in a companion case.
A witness told law enforcement officers that Stebbins received meth from Baldwin and that the shipments were usually one-pound quantities. Baldwin typically shipped the meth to Stebbins’ home in Williston and that the Nov. 8, 2019 package was the only shipment to the Brockton residence. Stebbins would re-package the meth to sell to others.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the FBI, U.S. Postal Service and the Merced 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.
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Multi-Drug Trafficker and Money Launderer Sentenced to 34 Years in Federal PrisonRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge Claria Horn Boom today sentenced Dante Watts, 49, of Louisville, Kentucky, to 34 years in federal prison, followed by a life term of Supervised Release for conspiracy to distribute controlled substances and money laundering, announced Acting United States Attorney Michael A. Bennett. On December 20, 2019, a federal jury convicted and returned guilty verdicts following almost two weeks of testimony. There is no parole in the federal system.
“I commend Assistant U.S. Attorneys Bonar and Sullivan for their exemplary work and leadership during the investigation and trial of this case,” said Acting U.S. Attorney Bennett. The tireless effort and outstanding work of the DEA and IRS agents who investigated the case, as well as the work of their state and local counterparts, ensured a successful prosecution. Our community is safer now as a result of their professionalism and sacrifice. The lengthy prison sentence serves notice of the consequences to those who traffic illegal drugs in the Western District.”
The Second Superseding Indictment charged Watts, along with 6 codefendants, for his involvement in a major drug trafficking organization responsible for distributing millions of dollars’ worth of narcotics in Louisville between May and July of 2016. The case arose out of a U.S. Drug Enforcement Administration (DEA) wiretap investigation and culminated with the execution of multiple federal search warrants on July 2, 2016 which resulted in the seizure of 31.9 kilograms of cocaine and 4.6 kilograms of heroin in a semi tractor-trailer and other drugs found in multiple locations, including 375 grams of methamphetamine. Agents also seized over $800,000 cash from the sale of narcotics.
The DEA executed another search warrant at Watts’ residence located on Blackthorn Trace in eastern Jefferson County on July 8, 2016. During the search, federal agents found over 6 kilograms of fentanyl in various locations in the kitchen along with a loaded firearm, several blenders utilized to mix drugs in the kitchen, and multiple boxes of plastic baggies and mixing agents. Agents found an additional firearm in Watts’ attached garage, along with empty kilo wrappers. Agents also located a high-tech surveillance system installed in and around the house, and a money counter was also found.
The DEA investigation revealed that Watts and codefendant Ismael Gonzalez received the narcotics from Mexican suppliers. Multiple intercepted phone conversations between Watts and Gonzalez showed that Gonzalez arranged for the shipment of drugs from the southern U.S. border to Louisville by semi-tractor trailer. Once the drugs arrived in Louisville, Gonzalez would oversee the transport to Watts, who would then direct distribution on the streets. Watts would then collect the proceeds of drug sales and send cash back to the suppliers through Gonzalez.
“Mr. Watts and his criminal enterprise caused a great deal of harm to people of this community; he was given many chances, and every time he flouted the mercy of the criminal justice system,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “His sentence today is considerable but justified; long delayed justice for a lengthy criminal career.”
From May 2015 through July of 2016, the IRS showed that Watts spent over $4.2 million dollars which included over $3.5 million dollars in cash casino purchases as well as the purchase of real property. Also, the Court forfeited Watts’ interest in his home on Blackthorn Trace, over $428,000 in cash, over $89,000 seized from an account, 2 loaded firearms, and a gold Breitling for Bentley with 596 diamonds (DEA previously forfeited over $400,000 in cash seized during the investigation).
“IRS CI is committed to following the money in narcotics investigations,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By tracing the funds, we were able to show how Watts used the narcotics proceeds at casinos and to purchase property.”
Watts has multiple prior felony convictions for a variety of serious offenses including narcotics trafficking, wanton endangerment, and burglary. Watts previously served 14 years in prison in Indiana for dealing cocaine. In 2016, Watts pled guilty to assault in the second degree after having been charged with kidnapping and brutally torturing his own cousin over a drug debt. Watts was accused of chaining his cousin’s legs together, pushing him down basement steps, pistol whipping him and fracturing his eye sockets, and then slicing him several times with a butcher knife. The victim escaped and fled through backyards in St. Mathews with Watts giving chase.
This case was prosecuted by Assistant United States Attorneys Robert Bonar and Amy Sullivan. The investigation was led by the DEA, the U.S. Internal Revenue Service’s Criminal Investigation Division, the Louisville Metro Police Department, Kentucky State Police, and the Jeffersontown Police Department.
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Minnesota Man Pleads Guilty to Central Florida Investment FraudRead the Press Release
Orlando, Florida – Jeremy Kee Anderson (50, Minnesota) has pleaded guilty to 12 counts of wire fraud, 7 counts of mail fraud, and 1 count of conspiracy to commit mail fraud and wire fraud. He faces up to 20 years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, Anderson led a conspiracy that defrauded more than 200 victims out of over $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Anderson was the founder and principal owner of Tri-Med.
The investment fraud scheme involved the alleged purchase of medical receivables by Tri-Med, and services that were provided to accident victims who were represented by personal injury attorneys. Payment of those medical receivables was supposed to have been made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was also supposed to be secured by a “Letter of Protection,” a letter that is provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. The letter is a contract involving a patient, the patient's attorney, and the medical services provider by which the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.
To fund Tri-Med’s alleged purchases of medical receivables, Anderson and his conspirators solicited individuals to participate in an “investment program” in which investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Anderson and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.” Those representations were false.
Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The vast majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses, while approximately $2.3 million was paid as distributions to investors to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.” The result was that more than 200 victims lost over $10.3 million in this scheme.
Anderson is the fourth person to be charged as part of this conspiracy. Previously, the following individuals were charged and sentenced to federal prison terms for their roles in this conspiracy: Anthony Nicholas, Jr. (63, Hudson) received 11 years and 3 months and Eric Ager (78, Orlando) and Irwin Ager (84, Orlando) each were sentenced to 24 months’ imprisonment.
This case was investigated by the United States Secret Service and the State of Florida’s Office of Financial Regulation. It is being prosecuted by Assistant United States Attorneys Shawn P. Napier and Roger B. Handberg, III.
Mexican Drug Cartel Members Sentenced for Narcotics Trafficking in East Texas, Agree to Forfeit Millions in Illicit Drug ProceedsRead the Press Release
TEXARKANA, Texas – Three East Texans have been sentenced to prison for an international drug trafficking operation in the Eastern District of Texas pursuant to Operation Dirty Bird, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“Mexican drug cartels are not welcome in East Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office—in partnership with the phenomenal men and women of the Texas law enforcement community—will work tirelessly to dismantle any drug trafficking operations based in East Texas, or even those that happen to be passing through.”
Rodolfo Javier Falcon, a 36-year-old Camp County, Texas, man, was sentenced to thirty years in prison by U.S. District Judge Robert W. Schroeder III. Falcon pleaded guilty on August 20, 2020, to conspiring to distribute controlled substances before U.S. Magistrate Judge Caroline M. Craven. Falcon agreed to forfeit $5 million in drug proceeds.
Eleazar Martinez Reyes, a 41-year-old Camp County, Texas, man, was sentenced to 87 months in prison by Judge Schroeder. Reyes pleaded guilty on August 4, 2020, to conspiring to distribute controlled substances and to illegal re-entry following removal before Judge Craven. Reyes agreed to forfeit $150,000 in drug proceeds.
Gerardo Carbrera Ramirez, a 28-year-old Franklin County, Texas, man, was sentenced to 151 months in prison by Judge Schroeder. Ramirez pleaded guilty on June 11, 2020, to conspiring to distribute controlled substances before Judge Craven. Ramirez agreed to forfeit $7500 in drug proceeds.
According to information presented in court, Falcon, Reyes, Ramirez, Jose Armando Rosales-Bernal, Julio Villarreal, Armando Moreno Jr., Claudia Claribel Gardea, Jose Geraldo Ornelas-Pineda, David Martinez, and others conspired to distribute more than 150 kilograms of cocaine, along with methamphetamine and heroin, from the Jalisco Nueva Generacion drug cartel in Mexico. The group distributed drugs in Dallas, East Texas, Florida, North Carolina, Arkansas, Illinois, and Michigan. On one occasion, Falcon, Gardea, and Ornelas-Pineda—and two young children—were stopped in Tennessee carrying nine kilograms of cocaine from Rosales-Bernal to North Carolina. The organization was also responsible for shipping drug proceeds, in the form of bulk cash, back to Mexico. Law enforcement intercepted one bulk cash shipment of approximately $350,000. Rosales-Bernal and Falcon both occupied leadership roles in the drug trafficking organization. During the conspiracy, Rosales-Bernal, Falcon, Martinez, and others possessed and carried firearms to safeguard their drugs and cash. Rosales-Bernal and others spent their drug proceeds on lavish lifestyle items, including a Dodge Charger Hellcat, flashy watches, exotic weapons, a jewel encrusted rooster necklace, and numerous pairs of luxury shoes and boots.
Operation Dirty Bird is a long-term drug trafficking and money laundering investigation that has led to the seizure of more than $500,000 in U.S. Currency, almost 40 kilograms of cocaine, more than a quarter kilogram of methamphetamine, nine firearms, several vehicles, two houses in Dallas, and an array of fine jewelry.
Rosales-Bernal, Villarreal, Moreno, Falcon, Ramirez, Gardea, Ornelas-Pineda, Dalia Janet Campos Rosales, Reyes, and Martinez were previously charged and arrested as a result of this investigation. Ornelas-Pineda, Moreno, and Villarreal have pleaded guilty and have been sentenced. Rosales-Bernal, Gardea, and Campos Rosales have pleaded guilty and are awaiting sentencing. Martinez has pleaded not guilty and is awaiting trial. This case is pending in the Texarkana Division of the Eastern District of Texas. If convicted, Martinez face a minimum of 15 years and as much as life in federal prison.
This case is being investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and the Dallas office of Homeland Security Investigations. In addition, the following agencies have played critical roles in this investigation: the Mesquite, Texas, Police Department SWAT team; the Texas National Guard; the Texas Department of Public Safety, Highway Patrol Division and Aircraft Division; the George West, Texas, Police Department; the 23rd Judicial Drug Task Force in Dickson, Tennessee; and the Mount Pleasant, Texas, Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Mescalero man pleads guilty to domestic assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Drew Jerome Beck, 28, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, pleaded guilty on March 2 in federal court to domestic assault by a habitual offender. Beck will remain in custody pending sentencing.
According to the plea agreement and other court records, on March 2, 2020, Beck assaulted his intimate partner, who is also an enrolled member of the Mescalero Apache Tribe, in their home in Otero County on the Mescalero Apache Reservation. The victim, identified in court records as Jane Doe, called 911. When an officer arrived at the home, Beck fled through the back door.
Beck previously was convicted of battery against a household member in Ruisdoso, New Mexico, in 2011 and was convicted of domestic violence in Mescalero Tribal court in 2017. He faces up to 10 years in prison.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Aaron O. Jordan is prosecuting the case.
Members of White Supremacist Prison Gang Plead Guilty to Federal Charges of Violent Crime in Aid of RacketeeringRead the Press Release
BEAUMONT, Texas – Two Texas men pleaded guilty this week to violent gang-related activities in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei and Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division.
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 entered his plea before U.S. Magistrate Judge Zack Hawthorn and Boney pleaded before U.S. Magistrate Judge Keith Giblin. Martin and Boney committed the assault as part of their membership in the Aryan Circle (AC), a gang that operates in Texas and other states throughout the country.
“Fighting the scourge of organized criminal gangs is a team effort,” said Acting U.S. Attorney Nicholas Ganjei. “It will take the full resources and resolve of federal, state, and local law enforcement to push back against these violent criminal organizations.”
According to information presented in court and contained in court filings, 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. Martin had previously served as an upper board member of the gang, which meant that he was one of the five highest-ranking leaders in the AC. 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.
The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Prior to Oct. 2, 2016, AC members learned that another AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. AC members were ordered to attack the former member in order to “X” him, or attack and remove him from the gang, because it violated the AC’s rules to join another organization. A meeting was held at an AC member’s home in the Tyler, Texas area where AC members planned the logistics of the assault.
On Oct. 2, 2016, Martin, Boney, and other AC members met at a park near Tyler, Texas, where they had planned to attack the former member, who was also present. Multiple AC members violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care for serious injuries.
This case is part of a larger investigation into the AC, Operation Noble Virtue, which has targeted AC leadership and resulted in prosecutions and convictions in six different jurisdictions to date. This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by 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. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
The matter is being prosecuted by Assistant United States Attorney Christopher Rapp of the Eastern District of Texas and Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section.
Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering Conspiracy and Drug Trafficking ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering charges.
Kevin Guadalupe, a/k/a “King K-Milly,” 19, 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 10, 2021.
Guadalupe admitted to participating in an unarmed robbery committed in November 2019 by members of the Latin Kings in New Bedford. During the robbery, which was captured on video, the victim was chased down in the middle of a busy street, thrown to the ground and kicked and beaten by six members of the Latin Kings. At the end of the beating, an item believed to be a wallet or cell phone was taken from the victim’s pants pocket.
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. Robert Vargas is the 37th 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. 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.
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.
Medical research company agrees to pay $1.1 million to settle allegation it received kickbacks from northwest medical testing companyRead the Press Release
Seattle – Heart Center Research, LLC, a Huntsville, Alabama, medical research company, entered into a settlement with the U.S. Department of Justice to resolve allegations that its member physicians referred patients for genetic testing in exchange for kickbacks from a Seattle-area testing company, announced Acting U.S. Attorney Tessa M. Gorman. Heart Center Research has agreed to pay a total of $1.1 million to resolve the allegations.
According to the settlement agreement, between 2012 and 2013, the company was alleged to have accepted payments from now-defunct testing company Natural Molecular Testing Corporation (NMTC) in return for the company’s member physicians ordering genetic tests from NMTC, which NMTC then billed to Medicare. The scheme was alleged to be in violation of the Anti-Kickback Statute and the civil False Claims Act.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
In August 2019, three doctors and one medical practice entered into settlements with the U.S. Department of Justice to resolve allegations that they referred patients for genetic testing in exchange for kickbacks from NMTC. Those settlements totaled $1.1 million.
NMTC declared bankruptcy in 2013. The Centers for Medicare and Medicaid Services has an unsecured claim against NMTC for $70 million but has little chance of recovering those funds as there are few remaining assets.
The matter was investigated by the Department of Health and Human Services Office of Inspector General (HHS-OIG). The settlement was negotiated by Assistant United States Attorney Ashley Burns.
Manchester Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Wilgfrido Valnodis Arias-Mejia, 45, a citizen of the Dominican Republic most recently residing in Manchester, pleaded guilty in federal court on Wednesday to possession of controlled substances with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Arias-Mejia sold fentanyl and crack cocaine from 2018 to at least November 27, 2019 in the Manchester area. During that time period, he employed various co-conspirators to sell drugs on his behalf. Each day they worked, the defendant provided his employees with pre-packaged bags containing between three and six “fingers” (10-gram packages) of fentanyl and smaller baggies containing fentanyl, powder cocaine, and crack cocaine and sent customers to their residences until all of the drugs were sold.
Arias-Mejia is scheduled to be sentenced on June 14, 2021.
“The sale of fentanyl and other dangerous drugs endangers public health and safety,” said U.S. Attorney Murray. “In order to keep our citizens safe, we will continue to be aggressive in our efforts to identify and prosecute the drug traffickers who are responsible for peddling these deadly substances in Manchester and other communities. Drug dealers in New Hampshire should understand that they will be held responsible in federal court for their unlawful conduct.”
“Wilgfrido Valnodis Arias-Mejia led a major drug trafficking organization, selling large amounts of fentanyl, cocaine, and crack cocaine to a region hit hard by the opioid epidemic. With today’s guilty plea, he has finally taken responsibility for setting up multiple drug distribution houses in Manchester, NH, with the intent to harm our neighbors,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case reflects the continuing impact the FBI New Hampshire Safe Streets Gang Task Force has on illegal drug trafficking. We will continue to work with our law enforcement partners to investigate criminal organizations like this one and ensure they are held accountable.”
This matter was investigated by the Federal Bureau of Investigation and Drug Enforcement Administration with assistance from the Manchester Police Department and Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana MacDonald.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man Convicted of Receiving, Soliciting, and Promoting Child PornographyRead the Press Release
A federal jury convicted a Virginia man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.
According to court documents and evidence presented at trial, Christopher Sueiro, 39, of Fairfax, used a peer-to-peer network to download images of child sexual abuse. Sueiro was also a member of a Darknet hidden service website dedicated to trafficking in child sexual abuse material of preteen boys, where he made posts promoting and soliciting images and videos of child sexual abuse and attempted to receive it from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded images and videos of child sexual abuse repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro was convicted of four counts: receipt; attempted receipt; possession; and solicitation of child pornography. He is scheduled to be sentenced on June 16, 2021, and faces a mandatory minimum penalty of five years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Erin Schaible, Chief of the City of Fairfax Police Department made the announcement.
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
CEOS Trial Attorney James E. Burke IV and Assistant U.S. Attorney Nathaniel Smith III of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Macon Probationer Sentenced to 118 Months in Federal Prison for Attempting to Distribute 1.3 Kilos of MethRead the Press Release
MACON, Ga. – A Macon probationer was sentenced to serve more than nine years in federal prison for attempting to distribute 1.3 kilograms of methamphetamine, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Alexander Brock Ray, 30, of Macon, was sentenced to serve 118 months in prison to be followed by four years of supervised release by U.S. District Judge Marc Treadwell on Wednesday, March 3. Ray previously pleaded guilty to one count possession with intent to distribute methamphetamine. There is no parole in the federal system.
Law enforcement served an arrest warrant at Ray’s home on August 16, 2018 for a Bibb County Superior Court probation violation. A shotgun belonging to Ray was visible inside, along with pills, approximately 20 bags filled with suspected ecstasy, and more bags containing yellow and blue powder. Officers obtained and executed a search warrant. In total, 1.3 kilograms of methamphetamine (105 separate bags) were seized from Ray’s home, along with two semiautomatic pistols, eleven stamps being used to compress powder to pills and other drug paraphernalia. Ray had been previously convicted in Bibb County Superior Court of theft by receiving (firearm), carrying a concealed weapon, and felony obstruction in 2013. Ray was in violation of his probation at the time of his arrest in this case.
“Repeat violent offenders and drug traffickers are facing steep prison sentences across the Middle District of Georgia for choosing to continue a life of crime,” said Acting U.S. Attorney Leary. “We will continue to work closely with our law enforcement partners across the district to bring federal cases against the most egregious individuals who continually disregard the laws and disturb the peace.”
“The Bibb County Sheriff’s Office and the FBI should be commended for their joint efforts in this case. This particular defendant is facing a nearly 10-year federal prison sentence, and hopefully this large sentence will deter others from a life of crime,” said U.S. Marshal John Cary Bittick.
“Thanks to the work of the Bibb County Sheriff Office, the U.S. Marshals Service and our FBI Macon resident agency, Ray will have plenty of time to rethink his life of crime,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Criminals must learn that if they continue to plague our communities arrest after arrest, the federal authorities will make sure they are removed from those communities for lengthy sentences.”
“The sentence handed down on Mr. Ray illustrates the penalty for dealing in illegal drugs and possessing a firearm can be very substantial. We can be grateful for the investigative work of the Bibb Investigators and our federal partners to bring this individual to justice,” said Bibb County Sheriff David Davis.
The case was investigated by the Bibb County Sheriff’s Office, the U.S. Marshals Service and FBI. Assistant U.S. Attorney Will Keyes prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Lisa G. Johnston Named Acting United States Attorney for the Southern District of West VirginiaRead the Press Release
CHARLESTON, W.Va. – Lisa G. Johnston will serve as Acting U.S. Attorney for the Southern District of West Virginia, according to the United States Attorney's Office.
U.S. Attorney Lisa JohnstonJohnston was selected to serve as the Acting U.S. Attorney by the Executive Office of United States Attorneys in Washington D.C. after former U.S. Attorney Mike Stuart announced his resignation effective February 28.
“I am truly humbled and honored to serve as the Acting U.S. Attorney in the Southern District of West Virginia. The important work of the public servants in the U.S. Attorney’s Offices in the district and their dedication to justice will continue,” said Acting U.S. Attorney Lisa Johnston. “We look forward to working with our dedicated law enforcement partners who work hard to ensure the safety of our communities.”
Johnston is a career prosecutor who joined the U.S. Attorney’s Office in the Southern District of West Virginia in August 2006. In 2010, she was named the Project Safe Childhood Coordinator for the district. Throughout her lengthy career with the Department of Justice, Johnston prosecuted numerous sexual exploitation cases as well as federal cases involving firearms, arson, drugs and health care fraud.
Johnston assumed the duties of First Assistant U.S. Attorney in the Southern District of West Virginia in January 2018, providing guidance to the Civil, Criminal, and Administrative Divisions of the U.S. Attorney’s Office.
Prior to joining the U.S. Attorney’s Office in the Southern District of West Virginia, she was employed as a Special Assistant U.S. Attorney and then as an Assistant U.S. Attorney in the Northern District of West Virginia from 1988 until 2006.
Johnston will serve as the Acting U.S. Attorney until President Biden makes a nomination and confirmation takes place.
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.
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Lincoln City Felon Sentenced to 17 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
EUGENE, Ore.—A Lincoln City, Oregon man with multiple felony convictions was sentenced to federal prison today for his role in a conspiracy to distribute large quantities of methamphetamine in and around Lincoln City and illegally possessing a firearm, announced Acting U.S. Attorney Scott Erik Asphaug.
Felix Daniel Garcia-Mendoza, 28, was sentenced to 204 months in federal prison and five years’ supervised release.
“The U.S. Attorney’s Office is committed to doing everything we can to reduce drug trafficking and violent crime across Oregon. A key pillar of our strategy is to reduce illegal gun ownership and use by drug traffickers,” said Acting U.S. Attorney Asphaug. “I applaud our law enforcement partners for their persistence in bringing Mr. Garcia-Mendoza to justice and making our coastal communities safer in the process.”
“The brazenness of Garcia-Mendoza’s actions clearly warrant this significant sentence,” said ATF Seattle Field Division Assistant Special Agent in Charge Jonathan E. Blais. “He showed a complete disregard for the law and jeopardized the community as a whole. The removal of Garcia-Mendoza and his co-conspirators from the streets will help make Lincoln City and Lincoln County safer.”
According to court documents, beginning in March 2018, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began infiltrating the Lincoln City methamphetamine market. Soon after, one of Garcia-Mendoza’s co-conspirators brokered the sale of a quarter pound of methamphetamine from Garcia-Mendoza to an undercover agent. At their initial meeting, agents purchased 113 grams of methamphetamine from Garcia-Mendoza.
Garcia-Mendoza met repeatedly with undercover agents and sold them increasingly larger quantities of methamphetamine. On one occasion, in June 2018, Garcia-Mendoza sold the agents more than one and half pounds of methamphetamine. Garcia-Mendoza also sold the undercover agents a handgun later determined to have be stolen from a Lincoln City gun shop. He wore a Glock pistol prominently in his waistband during various transactions and displayed it by raising his shirt and pulling it out during deals.
On December 12, 2018, a federal grand jury in Eugene returned an 11-count indictment charging Garcia-Mendoza with conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, possession of a stolen firearm, and possession of a firearm in furtherance of a drug trafficking crime. He was arrested on January 5, 2019 and pleaded guilty to all but three of the charges on January 20, 2020.
Three other co-defendants—Billy Jack Reese, Jr., 42, of Lincoln City, Oregon; James Levi Boyer, 51, of Springfield, Oregon; and Patricia Rose Hedrick, 25, of Newport, Oregon—were charged and have pleaded guilty to conspiring with Garcia-Mendoza to distribute methamphetamine. All were sentenced to time served in federal prison and are serving five-year terms of supervised release.
This case was investigated by ATF, the Lincoln City Police Department, and the Tillamook County Sheriff’s Office. It was prosecuted by Nathan J. Lichvarcik and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.
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.
Leading Co-Founder of Cryptocurrency Company Sentenced to 8 Years in Prison for ICO Fraud SchemeRead the Press Release
Ilan T. Graff, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that SOHRAB SHARMA, a/k/a “Sam Sharma” was sentenced today to eight years in prison in connection with his leading role in a scheme to induce victims to invest more than $25 million worth of digital funds in Centra Tech, Inc. (“Centra Tech”), a Miami-based company he co-founded and that purported to offer cryptocurrency-related financial products. SHARMA previously pled guilty to conspiring to commit securities fraud, wire fraud, and mail fraud in connection with his and his co-conspirators’ use of material misrepresentations and omissions to solicit investors to purchase securities, in the form of digital tokens issued by Centra Tech, through fraudulent fundraising efforts that included an initial coin offering (“ICO”) beginning in approximately July 2017. U.S. District Judge Lorna G. Schofield imposed the sentence in Manhattan federal court.
Mr. Graff said: “Sohrab Sharma led a scheme to deceive investors by falsely claiming that the start-up he co-founded had developed fully functioning, cutting-edge cryptocurrency-related financial products. In reality, Sharma’s most notable inventions were the fake executives, fake business partnerships, and fake licenses that he and his co-conspirators touted to trick victims into handing over tens of millions of dollars. We will continue to aggressively pursue digital securities frauds like this one.”
According to statements in the Superseding Information, and other filings and statements at public court proceedings in the case:
In or about July 2017, SHARMA, along with codefendants Robert Farkas and Raymond Trapani, founded a company called Centra Tech that claimed to offer cryptocurrency-related financial products, including a purported debit card, the “Centra Card,” that supposedly allowed users to make purchases using cryptocurrency at establishments accepting Visa or Mastercard payment cards. From approximately July 30, 2017, through October 5, 2017, SHARMA and his codefendants solicited investors to purchase unregistered securities, in the form of digital tokens issued by Centra Tech (“Centra tokens” or “CTR tokens”), including through a so-called “initial coin offering” or “ICO.” As part of this effort, SHARMA and his codefendants represented, in oral and written offering materials that were disseminated via the internet: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University; (b) that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard; and (c) that Centra Tech had money transmitter and other licenses in 38 states, among other claims. Based in part on these claims, victims provided millions of dollars’ worth of digital funds in investments for the purchase of Centra Tech tokens. In or about October 2017, at the end of the defendants’ fundraising efforts, those digital funds raised from victims were worth more than $25 million. At certain times in 2018, as the defendants’ fraud scheme was ongoing, those funds were worth more than $60 million.
The claims that SHARMA and his co-conspirators made to help secure these investments, however, were false. In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team were fictional people who were fabricated to dupe investors, Centra Tech had no such partnerships with Bancorp, Visa, or Mastercard, and Centra Tech did not have such licenses in a number of those states.
In 2018, this Office and the Federal Bureau of Investigation (“FBI”) seized, pursuant to judicially authorized seizure warrants, 100,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech during its fundraising efforts based on fraudulent misrepresentations and omissions. The United States Marshals Service sold the seized Ether units for approximately $33.4 million earlier this year. Following entry of a final order of forfeiture, these funds and other forfeited fraud proceeds will be available for potential use in a remission program that the Department of Justice intends to create to compensate victims of the Centra Tech fraud.
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In addition to the prison term, SHARMA, 29, of Aventura, Florida, was also sentenced to three years of supervised release and ordered to pay a fine of $20,000. He was further ordered to forfeit $36,088,960.
Mr. Graff praised the investigative work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer, Negar Tekeei, and Daniel Loss are in charge of the prosecution.
Leader of Rhode Island Latin Kings Chapter Sentenced for Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A leader of the Rhode Island Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced yesterday on conspiracy charges.
Joel Francisco, a/k/a “King Casper,” 42, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years in prison and three years of supervised release. In November 2020, Francisco pleaded guilty to conspiracy to distribute cocaine.
Francisco admitted that in August 2019, he conspired with others to purchase cocaine from members of the Latin Kings in New Bedford for resale. On Sept. 4, 2019, Francisco was captured in a video recording purchasing approximately 186 grams of cocaine from members of the New Bedford Chapter in a deal facilitated by a co-conspirator.
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. Francisco is the 19th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction 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.
Largo Man Sentenced to 10 Years in Federal Prison for Attempting to Entice A 14-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Asa Nall (50, Largo) to 10 years in federal prison for attempted enticement of a child. The court also ordered Nall to forfeit the electronic devices that were used in commission of the offense.
Nall was found guilty by a jury on October 29, 2020.
According to evidence presented at trial, Nall communicated online and over text messages with someone he believed to be a 14-year-old child. In reality, Nall had been communicating with an undercover agent. For more than a month, Nall repeatedly asked the child to produce sexually explicit images for him, specifying that he wanted to see her fully nude to include close-up photos of the child’s genitalia. Nall also repeatedly requested to meet the child for sex, asking her to “sneak away” and “skip school” to meet with him. In the conversations, Nall discussed in graphic detail the sex acts that he would engage in when they met. On October 16, 2019, Nall traveled to meet the child for sex, and he was subsequently arrested.
Law enforcement agents recovered two condoms in Nall’s pants pocket and the cellphone he had used to communicate with the child. A search of the phone revealed that Nall had also saved the child’s name to his contact list.
This case was investigated by the Federal Bureau of Investigation and the Largo Police Department. It was prosecuted by Assistant U.S. Attorneys Lisa M. Thelwell and Erin C. Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
La Crosse Woman Sentenced to 5 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Sandy Xiong, 31, La Crosse, Wisconsin, was sentenced on Monday, March 1 by Chief U.S. District Judge James D. Peterson to 5 years in federal prison for possessing more than 50 grams of methamphetamine for distribution. Xiong pleaded guilty to this charge on December 4, 2020.
Xiong was arrested on February 10, 2020, in a La Crosse grocery store parking lot as she prepared to deliver approximately four ounces of methamphetamine to an individual who met her at that location. When searched by police after being removed from her car, Xiong was found in possession of four separate baggies of methamphetamine totaling 116 grams. A search of her home in La Crosse later that night yielded another 212 grams of methamphetamine, packaging materials, and a scale.
The charge against Xiong was the result of an investigation conducted by the West Central Metropolitan Enforcement Group and the Prairie du Chien Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
KC Man Pleads Guilty to Illegal Firearms Following Armed Standoff with Police OfficersRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to illegally possessing a firearm following a brief armed standoff with police officers and a foot chase.
Michael D. Moore, 31, pleaded guilty before U.S. Chief District Judge Beth Phillips to being a felon in possession of a firearm.
Moore was arrested on Monday, Aug. 17. Officers who had been surveilling Moore followed him into a parking lot near 2310 E. 9th St., Kansas City, Mo. As officers drove into the parking lot with their red and blue lights flashing, Moore got out of the BMW SUV, took cover behind the vehicle, and drew a Smith and Wesson 9mm handgun from his waistband. Moore pointed his firearm directly at police officers as he attempted to take a position of cover behind his vehicle. Moore fled as additional police cars entered the parking lot, throwing away his handgun. Moore then laid on the ground about 15 feet away from the firearm, and was taken into custody. Officers recovered the firearm, which was loaded with 16 live rounds in the 16-round high-capacity magazine and one live round in the chamber. Officers identified the firearm as having been reported stolen.
According to court documents, Moore was involved in two armed robberies that led to the issuance of the arrest warrant and surveillance.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Moore has a prior felony conviction for robbery.
Under federal statutes, Jones is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew Moeder. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Justice Department Warns About Fake Unemployment Benefit WebsitesRead the Press Release
The Department of Justice has received reports that fraudsters are creating websites mimicking unemployment benefit websites, including state workforce agency (SWA) websites, for the purpose of unlawfully capturing consumers’ personal information.
To lure consumers to these fake websites, fraudsters send spam text messages and emails purporting to be from an SWA and containing a link. The fake websites are designed to trick consumers into thinking they are applying for unemployment benefits and disclosing personally identifiable information and other sensitive data. That information can then be used by fraudsters to commit identity theft.
Unless from a known and verified source, consumers should never click on links in text messages or emails claiming to be from an SWA offering the opportunity to apply for unemployment insurance benefits. Instead, anyone needing to apply for unemployment benefits should go to an official SWA website, a list of which can be found at: https://www.careeronestop.org/localhelp/unemploymentbenefits/unemployment-benefits.aspx.
Schemes that use links embedded in unsolicited text messages and emails in attempts to obtain personally identifiable information are commonly referred to as phishing schemes. Phishing messages may look like they come from government agencies, financial intuitions, shipping companies, and social media companies, among many others. Carefully examine any message purporting to be from a company and do not click on a link in an unsolicited email or text message. Remember that companies generally do not contact you to ask for your username or password. When in doubt, contact the entity purportedly sending you the message, but do not rely on any contact information in the potentially fraudulent message.
If you receive a text message or email claiming to be from an SWA and containing a link or other contact information, please report the communication to the National Center for Disaster Fraud (NCDF) by calling 866-720-5721 or using the NCDF Web Complaint Form found at: www.justice.gov/disaster-fraud.
If you believe you may have entered information into a fraudulent website, resources on how to protect your information can be found at: www.identitytheft.gov.
To learn more about identifying and protecting yourself from phishing attempts, go to: https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams or https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/spoofing-and-phishing.
Further information about the SWA-imposter scheme, and other major scams targeting American consumers, can be found at the Justice Department’s Transnational Elder Fraud Strike Force website: https://www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
This alert is provided by the Justice Department’s National Unemployment Insurance Fraud Task Force (NUIFTF) and the Consumer Protection Branch of the department’s Civil Division. Members of NUIFTF include: Department of Labor Office of Inspector General, U.S. Secret Service, Homeland Security Investigations, IRS-Criminal Investigation, U.S. Postal Inspection Service, Social Security Administration Office of Inspector General, and FDIC Office of Inspector General.
Find out more about the NUIFTF at: /media/1093226/dl?inline.
For more information about the Consumer Protection Branch, visit http://www.justice.gov/civil/consumer-protection-branch.
Jury Convicts Virginia Man of Receiving, Soliciting, and Promoting Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Fairfax man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.
“The evidence admitted at trial demonstrated that thousands of images and videos of child sexual abuse were found on the defendant's electronic devices,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The trafficking of child pornography causes incalculable and irreparable harm to society’s most vulnerable victims, which often continues long after the abuse has occurred. Thanks to the painstaking efforts of our law enforcement partners and prosecutors on this case, the defendant has been held accountable by a jury of his peers for his heinous criminal conduct.”
According to court records and evidence presented at trial, Christopher Sueiro, 39, used a peer-to-peer network to download images and videos of child sexual abuse. Sueiro also was a member of a Darknet hidden service website dedicated to trafficking in child sexual abuse material of preteen boys, where he made posts promoting and soliciting images and videos of child sexual abuse and attempted to receive it from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to finding child pornography online. The evidence showed that he downloaded images of child sexual abuse repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro was convicted of receipt of child pornography, possession of child pornography, attempted receipt of child pornography, and promotion and solicitation of child pornography. Sueiro faces a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years for each count of conviction when sentenced on June 16. 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.
Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Erin Schaible, Chief of the City of Fairfax Police Department, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the verdict.
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Assistant U.S. Attorney Nathaniel Smith III and CEOS Trial Attorney James E. Burke IV are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
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. 1:17-cr-284.
Jury Convicts Local Man on Federal Drug Trafficking, Firearm, and Arson-Related CrimesRead the Press Release
PENSACOLA, FLORIDA – Late Wednesday afternoon, a federal jury in Pensacola convicted Tony M. Streeter, of Fort Walton Beach, on multiple drug charges, firearms offenses, and a conspiracy to commit arson related offense. The convictions, which followed a three-day jury trial that began Monday morning, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
In August 2019, following an undercover methamphetamine purchase from Streeter, law enforcement executed a search warrant at his residence in Fort Walton Beach. Among other items seized from his residence, law enforcement seized his 2012 Mercedes SUV and placed it in a secured impound lot at the Okaloosa County Sheriff’s Office for further processing. Within approximately 72 hours of the vehicle being placed in the law enforcement impound lot, it was set ablaze. Evidence presented at trial revealed that Streeter conspired with his sister, Betty Joe Streeter, and his nephew, William Sims, to break into the secured impound lot under the cover of darkness and attempt to locate and remove a hidden firearm and drugs from Streeter’s SUV. After recovering a hidden stash of methamphetamine from Streeter’s SUV, Streeter then instructed Sims to set the vehicle ablaze in hopes of destroying any remaining evidence. Despite their efforts, a loaded firearm was later located in the burned vehicle when searched by law enforcement. Betty Joe Streeter and William entered guilty pleas related to this case and await sentencing.
“The evidence introduced at trial not only demonstrated Streeter’s efforts to avoid responsibility for his crimes, but his willingness to engage his family members in additional criminal conduct,” said Acting U.S. Attorney Coody. “Moreover, he endangered the safety of Okaloosa County Sheriff’s Office employees when he instructed his sister and nephew to break into the impound lot and set fire to his seized vehicle. Thanks to the collaborative efforts of our local, state, and federal law enforcement partners, our prosecutors were successful in demonstrating his guilt and the citizens of Okaloosa County are now safer as a result.”
The jury found Streeter guilty of distribution of methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm and ammunition by a convicted felon, conspiracy to maliciously damage or destroy by fire his Mercedes SUV, and possession with intent to distribute heroin.
“Our joint partnership was pivotal in securing the firearms and arson charges that led to a conviction in this case,” said ATF Special Agent in Charge Craig W. Saier. “We will continue to work with our partners to ensure that the streets of our communities are safe from violent crime”.
Streeter’s sentencing hearing is scheduled for June 29, 2021, at the U.S. Courthouse in Pensacola. Based upon the offenses of which he was convicted, and his prior criminal convictions in state court for drug trafficking and crimes of violence, Streeter faces up to life in federal prison.
“It’s rewarding to help take a violent career criminal who peddled poison in our community off the streets, someone willing to mastermind invading a law enforcement facility to destroy evidence and cover his tracks,” said Eric Aden, Okaloosa County Sheriff. “Our region is much safer because of the joint efforts that went into making him accountable for his crimes.”
This conviction was the result of an investigation conducted by the Okaloosa County Sheriff’s Office, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. Assistant United States Attorneys David L. Goldberg and Meredith Steer prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. StreeterJudge sentences St. Louis man who fled from police in a stolen vehicle for being a felon in possession of a stolen firearmRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Clarence Brown to 30 months in prison today. The 35-year-old St. Louis, Missouri resident pleaded guilty to one count of being a felon in possession of a firearm.
Officers from the St. Louis Metropolitan Police Department patrolling in the Greater Ville area were advised that a stolen vehicle was traveling eastbound on Natural Bridge Avenue from Kingshighway Boulevard. Officers observed the stolen vehicle traveling at a high rate of speed in the parking lane before parking in the area of Blair Avenue and Monroe Avenue.
Officers identified the driver as Brown who re-entered the vehicle and began driving northbound on Blair Avenue. Officers deployed department-issued spike strips. Brown drove over the spike strips, accelerated at a high rate of speed, and turned onto westbound N. Florissant Avenue. While traveling northbound, on Blair Avenue from Salisbury Avenue, a St. Louis Metropolitan Police Detective observed Brown throw a firearm out of the stolen vehicle’s passenger side window. The detective stopped his patrol car, exited his vehicle, and retrieved the discarded firearm, a Glock 23, .40 caliber pistol containing nine live 9mm cartridges.
The recovered pistol had been reported stolen from a home in Creve Coeur, Missouri on October 16, 2019.
Prior to being arrested, Brown drove in the opposite direction of travel and struck an unsuspecting driver head-on. Brown also ignored several police commands to stop resisting before being apprehended after a short foot pursuit. A computer search revealed that Brown was a felon and had an active warrant for his arrest.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Kourtney M. Bell is handling the case.
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Judge sentences St. Louis man for wire fraudRead the Press Release
ST. LOUIS – United States District Judge Ronnie L. White sentenced John Koeln to 24 months in prison today. The 37-year-old St. Louis, Missouri resident pleaded guilty, in October, to wire fraud.
Koeln was the Director of Finance for Unlimited Prepaid Distribution (UPD) from May 2014 to April 2017. UPD is a wholesaler of prepaid phones, SIM cards, airtime and other cellphone products. Koeln was responsible for day-to-day financial transactions and managing UPD’s bank account. A.A. is the CEO and President of UPD.
On or about May 12, 2015, Koeln opened a bank account at First Bank in the name of Abusharbain Holding, LLC. Koeln was the only person with signatory authority on the
account. He repeatedly made unauthorized transfers of funds from UPD' s Bank of America business account to the Abusharbain Holding, LLC First Bank account. Koeln
repeatedly made unauthorized transfers of funds from the Abusharbain Holding, LLC First Bank account to his eTrade brokerage accounts. Koeln transferred the stolen funds from
his eTrade brokerage accounts to pay his personal expenses including credit card bills and living expenses. These transfers were not authorized by A.A. or U.P.D.
Specifically, on or about September 5, September 8 and December 7 in 2016, Koeln, for the purpose of committing wire fraud, caused ACH transfers of $50,000 from the Abusharbain Holding, LLC First Bank account in Missouri to his eTrade Bank account ending in 8839 in Virginia.
On or about December 27, 2016 and February 12, 2017, Koeln, for the purpose of committing wire fraud, caused ACH transfers of $80,000 from the Abusharbain Holding, LLC First Bank account in Missouri to his eTrade Bank account ending in 8839 in Virginia.
In March and May, of 2016, Koeln made unauthorized cash withdrawals from the Abusharbain Holding, LLC First Bank account for his own personal benefit. On or about February 2, 2016, Koeln made an unauthorized withdrawal of funds from the Abusharbain Holding, LLC First Bank account to obtain a cashier's check payable to U.S. Title for his purchase of real estate for his own personal benefit.
On or about May 19, 2016, Koeln made an unauthorized transfer of funds from the Abusharbain Holding, LLC First Bank account to pay his Capitol One loan to purchase a 2015 Buick Enclave.
On or about January 23, 2017, Koeln made an unauthorized transfer of funds from the Abusharbain Holding LLC First Bank account to pay his personal U.S. Bank loan used to purchase a boat and trailer.
On or about March 14, 2017, Koeln made an unauthorized transfer of $99,975 from UPD's Bank of America account to his eTrade brokerage account ending in 8839.
The loss from Koeln's fraud was approximately $1,007,031. The Government seized Koeln’s eTrade accounts, vehicles and boats and the proceeds will be used to pay restitution to the victim.
“In addition to bringing criminals to justice, the FBI will diligently search for and seize assets that can be repaid to victims,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “In this case, we are pleased to be able to return a vast majority of the amount embezzled by John Koeln. Unfortunately, most white-collar criminals squander the money they steal leaving little left to repay victims.”
This case was investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin is handling the case.
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Jackson County Corrections Officer Charged with Taking Bribes to Smuggle Illegal Drugs to InmatesRead the Press Release
KANSAS CITY, Mo. – A corrections officer at the Jackson County Detention Center was charged in federal court today for taking bribes to smuggle illegal drugs to inmates of the facility.
Daniel Coach, 26, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. The complaint charges Coach with one count of using a telephone to facilitate the unlawful activity of acceding to corruption.
According to an affidavit filed in support of the federal criminal complaint, an undercover police officer communicated over the phone with Coach on Wednesday, March 3. During the telephone conversation, Coach allegedly agreed to transport 25 oxycontin pills into the detention center and deliver them to an inmate. In return, the affidavit says, Coach wanted six extra pills for himself and $100 cash. On that same evening, the undercover officer met Coach in person at a gas station. The undercover officer got into Coach’s vehicle; Coach accepted the illegal drugs (inert oxycontin pills) and the cash. Coach allegedly talked about how he gets contraband past checkpoints, and said he would attempt to give the pills to the inmate. The undercover officer got out of the vehicle, and when Coach left the parking lot he was stopped and arrested.
According to the affidavit, that planned operation was in response to a previous interview conducted by a law enforcement officer with an inmate at the Jackson County Detention Center.
During that interview on Feb. 2, 2021, the inmate identified Coach and said that Coach coordinated his smuggling efforts with friends or family members of inmates on several occasions. Coach told these individuals where his car was parked, the inmate said, and they would drop the contraband through Coach’s car window. Coach usually smuggled in Percocet, K2, ecstasy, and cocaine, according to the inmate. They allegedly would transfer a bribe payment of $100 to $150 to Coach through Cash App. Coach would then arrange to get placed on the inmate’s floor and find a way to provide the contraband to the inmate, often during a cell check. The inmate told officers that one of his last orders to Coach was 50 Percocet pills.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the FBI and the Jackson County, Mo., Sheriff’s Department.
Individual Indicted for Carjacking on Marginal 181 in San JuanRead the Press Release
SAN JUAN, Puerto Rico – On March 3, 2021, a federal grand jury returned a three-count indictment charging Carlos Ortiz-Santiago with an armed carjacking and with being a felon in possession of a firearm, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on December 2, 2020 around 11:20 AM, a woman was parking her Toyota Yaris in front of condominium Puerto Del Sol along marginal 181 in San Juan. Carlos Ortiz-Santiago approached her, brandishing a gun, and yelled at the victim to surrender the keys and exit the car. After the victim complied, Ortiz-Santiago drove off in the Yaris.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. If convicted, the defendant faces a sentence in excess of seven 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.
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Home Health Aide Charged with Defrauding ClientsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Christopher Algieri, Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office, today announced that PHILLIANN BARNETT, 42, a Jamaican citizen residing in New Britain, was arrested on March 2 on a criminal complaint charging her with bank fraud stemming from her alleged theft of money from a disabled client for whom she worked as a home health aide.
As alleged in the criminal complaint, in 2003, Barnett sustained a federal conviction, in the Eastern District of New York, for defrauding an individual who suffered from cerebral palsy. In that case, she opened credit cards in the victim’s name and used the cards for her personal expenses. She was subsequently convicted in Connecticut superior court of larceny and identity theft offenses for defrauding an elderly woman suffering from Alzheimer’s disease. On approximately August 31, 2020, after serving approximately five years of incarceration, Barnett was released from state custody. Shortly after her release from prison, and while she was on probation, Barnett, using the alias “Philliann Burke,” applied to be a home health aide for a company that serviced disabled veterans receiving benefits from the Department of Veterans Affairs. Barnett, who did not disclose her criminal history to the company, began working for the company on September 11, 2020.
It is further alleged that, in November 2020, while caring for a disabled veteran, Barnett forged the veteran’s signature on a check and deposited the check into her account. In February 2021, law enforcement investigating Barnett learned of a separate complaint from a resident of an assisted living facility in the Waterbury area where Barnett purportedly worked. The complainant alleged that Barnett stole money from the complainant’s checking account and deposited it into her own account using the “Cash App” cell phone application.
After her arrest, Barnett was released on a $75,000 bond into home incarceration. She is subject to GPS monitoring and was ordered to surrender her passport. She was also ordered to comply with her state probation conditions, which include a prohibition from working as a home health aide.
Bank fraud carries a maximum term of imprisonment of 30 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. The case is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
It is alleged that Barnett has a history of using other aliases, including “Phillianne Barnett,” “Susie Barnett,” “Nikki Daley,” and “Susie Susie.” Individuals who believe they have been victimized by Barnett are encouraged to contact Special Agent Abraham Raymond with the U.S. Department of Veterans Affairs, Office of the Inspector General, at 781-687-3417.
Hartford Man Sentenced to More Than 7 Years for Drug and Gun Offenses, Violating Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JONATHAN TORRES, also known as “U-Haul” and “Fats,” 30, was sentenced today by U.S. District Judge Alvin W. Thompson to 88 months of imprisonment, followed by three years of supervised release, for fentanyl distribution and gun possession offenses, and for violating the conditions of his supervised release from a prior federal conviction.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in March 2017, Torres was released from federal prison after serving a 70-month sentence for distributing heroin in Hartford. While Torres was on federal supervised release, he was arrested by West Hartford Police on September 13, 2017, for being in possession of a stolen motor vehicle; was arrested by Hartford Police on July 1, 2019, for possessing crack cocaine after he arrived at Hartford Hospital with a gunshot wound to his foot; and distributed fentanyl on six occasions to an individual working with law enforcement in December 2019 and January 2020.
On February 7, 2020, Torres was arrested by Hartford Police after he was found in a possession of a loaded .40 caliber semi-automatic pistol, drugs and drug paraphernalia.
On February 21, 2020, as part of his federal supervised release violation proceedings, Torres was ordered into home detention and placed on location monitoring.
In March 2020, Torres conducted a fentanyl sale, and, in April 2020, he attempted to conduct another fentanyl sale.
Torres has been detained since his federal arrest on April 16, 2020. On November 10, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl, and one count of possession of a firearm by a convicted felon.
Judge Thompson sentenced Torres to 70 months of imprisonment for the fentanyl distribution and gun possession offenses, and a consecutive 18 months of imprisonment for violating his supervised release conditions.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The task force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harrison County woman sentenced for meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kaylie Marie Jones, of Wallace, West Virginia, was sentenced today to 60 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Jones, 26, pleaded guilty in February 2021 to one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine.” Jones admitted to working with others to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harford County Felon Facing Federal Indictment for Production and Possession of Child Pornography and for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Baltimore, Maryland – A federal grand jury today returned an indictment charging Travis Joseph Crawford, age 33, of Edgewood, Maryland, for production and possession of child pornography and for being a felon in possession of a firearm and ammunition.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Harford County Sheriff Jeffrey R. Gahler; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to the five-count indictment and other court documents, Harford County Sheriff’s deputies arrested Crawford at a residence in Edgewood, Maryland, based on a warrant issued for Crawford by Maryland State Police for firearm related offenses. At that time, law enforcement also recovered a fully-loaded .40-caliber semi-automatic pistol. During the investigation, a witness advised law enforcement that Crawford had videos on his cell phone depicting Crawford sexually touching a 13-year-old girl, Jane Doe, while the girl appeared to be asleep.
As detailed in court documents, law enforcement seized the phone, which was in Crawford’s possession. A search warrant subsequently executed on the phone revealed three sexually explicit videos allegedly involving Jane Doe, all of which appeared to be recorded without her knowledge or permission. The indictment also alleges that at the time of his arrest, Crawford on his phone possessed visual depictions of prepubescent minors engaged in sexually explicit conduct. Finally, the indictment alleges that Crawford was previously convicted of a felony and therefore was prohibited from possessing a firearm or ammunition.
If convicted, Crawford faces a mandatory minimum sentence of 15 years and maximum sentence of 30 years in federal prison for each of three counts of production of child pornography; a maximum of 10 years in federal prison for possession of child pornography; and a maximum of 10 years in federal prison for illegal possession of a firearm by a previously convicted felon. 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. An initial appearance will be scheduled in U.S. District Court in Baltimore. Crawford remains detained on related federal charges.
If convicted, Crawford will also be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended HSI, ATF, the Maryland State Police, and the Harford County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
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Grand Jury Indicts Rochester Man on Multiple Child Pornography Charges Including Enticement and ProductionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging James Oliver Young, 52, of Rochester, NY, with enticement of a minor to engage in sexual activity, conspiracy to produce child pornography, and production and receipt of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, and a maximum of life.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that the according to the indictment and previously filed complaints filed against the defendant and co-defendant and Rebecca Wilson, on April 17, 2020, the New York State Police received information from the National Center for Missing and Exploited Children (NCMEC) that an “Ollie Young” was communicating with a Minor Victim (MV1), in Rochester through private messages on Facebook. It appeared that “Ollie Young” was attempting to entice MV1 to produce and send apparent child exploitation images as well as engage in sexual activity. “Ollie Young” was later identified as defendant Young. Subsequent investigation determined that Young and Wilson allegedly had sexual relations with MV1 on multiple occasions.
On April 18, 2020, New York State Police executed a search warrant and seized multiple devices, including two cell phones belonging to Wilson. Investigators located multiple videos depicting child pornography involving Minor Victim 2 (MV2).
Rebecca Wilson previously pleaded guilty to two counts of production of child pornography and is awaiting sentencing.
Young made an initial appearance today before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The indictment is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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.
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Gage H. Clausen Pleads Guilty to Interstate Communication of a ThreatRead the Press Release
WICHITA, KAN. – Gage H. Clausen, 21, of Cheney, Kansas, has pleaded guilty to federal charges of violation of 18 U.S.C. § 875(c), Interstate Communication of a Threat. Clausen previously communicated a threat via the internet on the life of a juvenile.
“Gage Clausen threatened serious bodily harm against another person via the Internet,” said Acting U.S. Attorney Duston Slinkard. “His plea of guilty today should send a message that, you cannot hide behind a computer keyboard and make threats against another person with impunity. These threats are taken seriously, they are investigated and people are held accountable.”
Google has several App Engines, none of which are located in the State of Kansas. These engines are located in Iowa, South Carolina, Virginia, Oregon, California, Utah, and Nevada. In order for Clausen’s communication to be received by the victim the communication would have traveled through one of these engines, thus Clausen’s communication traveled in interstate commerce before reaching the victim.
Sentencing is scheduled for May 25, 2021 at 2:30, before U.S. District Judge John W. Broomes.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Alan Metzger is prosecuting the case.
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Four Charged in Scheme Employing Homeless to Cash Bogus ChecksRead the Press Release
PROVIDENCE – Four men from the Atlanta, GA, area have been charged in federal court in Providence, RI, for allegedly operating a long-running scheme in which homeless and transient individuals from the Providence area were recruited to cash counterfeit business checks in exchange for a cash payment.
It is alleged in court documents that homeless individuals enlisted by the Georgia men were driven to financial institutions in Rhode Island, Massachusetts, Connecticut, Maine, and elsewhere, provided bogus business checks made out to them, and were instructed to cash the checks using their Rhode Island ID card or driver’s license for identification. The individuals were told to return to the vehicle with the cash and in return were paid between $100 and $200.
It is alleged that in at least one instance, a homeless individual was threatened with bodily harm if that person took off with the proceeds after cashing the bogus check and failed to provide the funds to the schemers.
As a result of an investigation by the Medway, MA, Police Department and the United States Secret Service, federal criminal complaints filed in U.S. District Court in Providence charge Austin Weaver, 31, of Decatur, GA; Cortavious Benford, 26, of Atlanta, GA; and Michael Williams, 26, and Jalen Ronald Stanford, 28, of East Point, GA, with conspiracy to commit bank fraud, announced Acting United States Attorney Richard B. Myrus, Medway, MA, Police Chief Allen Tingley, and Special Agent in Charge of the U.S. Secret Service Frederick J. Regan.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
Acting United States Attorney Richard B. Myrus acknowledges and thanks the Providence Police Department for its assistance in the investigation of this matter.
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Former staffer at juvenile detention facility indicted for accepting bribes for smuggling contraband into facilityRead the Press Release
Tacoma - A former guard at the Green Hill School, a juvenile rehabilitation facility in Chehalis, Washington, was indicted late Wednesday by a federal grand jury for taking bribes in exchange for delivering contraband, including illegal drugs, into the secure facility. JULIO W. HAYES, 40, was terminated as a staffer in February 2020 following an FBI operation that uncovered HAYES was accepting bribes and smuggling drugs and other contraband. HAYES will be arraigned on the indictment on March 16, 2021.
“This illegal conduct at a juvenile facility sends exactly the wrong message to young people trying to rehabilitate,” said Acting U.S. Attorney Tessa M. Gorman. “This defendant demonstrated that for a price, he would defeat the restrictions at Green Hill School—restrictions that are aimed at maintaining safety, as well as helping youth return to a productive path. This case should serve as a warning to others tempted to trade their ethics for financial gain.”
According to the indictment, HAYES began working as a guard at Green Hill School in November 2018. Despite the fact that HAYES had significant training regarding his ethical obligations as an employee of the Department of Children, Youth and Families (which operates Green Hill School), HAYES began accepting bribes from offenders or their family and friends in May 2019 for smuggling marijuana, iPhones, vape pens, and chewing tobacco into the facility. HAYES was paid in cash and via electronic payments such as Cash App and accepted more than $11,000 before his employment was terminated in February 2020.
The indictment describes various text messages and electronic payments where HAYES essentially took orders from offenders as to the types of contraband they wanted him to bring to the facility. HAYES and the offenders would set the pricing and payment amounts for his services. On February 25, 2020, law enforcement conducted a traffic stop on HAYES on his way to work. In his possession, HAYES had marijuana packaged for smuggling into the facility, as well as three vape cartridges containing liquid marijuana.
HAYES is charged with seven counts of Hobbs Act Extortion Under Color of Official Right, punishable by up to 20 years in prison. He is also charged with conspiracy to distribute controlled substances and possession of controlled substances with intent to distribute. Those charges are also punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with assistance from the Chehalis Police Department and the Joint Narcotics Enforcement Team (JNET) in Lewis County.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Michael Dion.
hayes_indictment.pdf