Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 February 2021
Former SCANA CEO Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, pleaded guilty in federal court to conspiracy to commit mail and wire fraud. With the guilty plea, Marsh admits that he intentionally defrauded ratepayers, while he oversaw and managed the company’s operations – including the construction of two reactors at the V.C. Summer Nuclear Station – so that SCANA could obtain and retain rate increases imposed on SCANA’s customers and qualify for up to $2.2 billion in tax credits.
Today’s plea follows a previous guilty plea by Stephen A. Byrne, former Executive Vice President of SCANA and former Chief Operating Officer of South Carolina Electric & Gas Company (SCE&G), to conspiracy to commit mail and wire fraud, as well as a previously announced agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief. It also follows a previously announced settlement by SCANA and SCE&G on a Securities and Exchange Commission lawsuit charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned.
Today’s plea is the result of an exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, South Carolina Attorney General’s Office, Federal Bureau of Investigation (FBI), U.S. Securities and Exchange Commission (SEC), and South Carolina Law Enforcement Division (SLED).
“Every day, this office protects South Carolinians from criminals of all types,” said U.S. Attorney McCoy. “Our office will always seek justice for those victimized by individuals or entities that misuse positions of trust and responsibility. Today’s plea shows that no one, not even a Fortune 500 CEO, is above the law. Of course, our efforts in this case would not be possible without the support of our federal and state law enforcement partners.”
“Today’s plea is another step in bringing to justice those individuals responsible for this vast and audacious fraud that impacted so many people throughout South Carolina and beyond,” said FBI Special Agent in Charge Susan Ferensic. “The FBI’s work is not done, however. We will see this case through while we continue to fulfill our mission to investigate and hold accountable those who seek to commit mass fraud and theft.”
This case arises out of the failed nuclear project at the V.C. Summer Nuclear Station in Jenkinsville, South Carolina. In 2008, SCANA and its subsidiary SCE&G announced their intention to build two new nuclear units with their minority partner, the South Carolina Public Service Authority, a state-owned public power and water utility commonly known as Santee Cooper.
As evidence presented to the court showed, beginning in November 2011, Marsh was the highest-ranking official within SCANA and, as such, oversaw and managed the company’s operations, including the construction of the two nuclear reactors.
From its inception, substantial delays and cost overruns plagued the project. No later than late 2016, Marsh knew that efforts by the company’s builder, Westinghouse, to improve the pace and productivity of the project were woefully inadequate. Marsh learned that at least one unit under construction was in grave jeopardy of not being completed and producing power by December 31, 2020, then the critically important deadline for SCANA to secure federal nuclear production tax credits valued up to $2.2 billion.
With this specific knowledge, using both wires and mail, Marsh conspired with others to defraud customers with misleading statements and omissions. This includes concealing the truthful status of the failing mega-project and making false and materially misleading statements in late 2016 to the South Carolina Public Service Commission (PSC), the Office of Regulatory Staff (ORS), the financial community and the general public.
For example, following a December 27, 2016, press release by Toshiba announcing a potential multi-billion dollar writedown related to Westinghouse’s nuclear construction business, Marsh and others received a confidential telephone briefing from senior Westinghouse officials, who indicated Westinghouse’s costs to complete the new units would be significantly higher than expected. Also on December 27, 2016, Marsh received a separate briefing from a senior Toshiba official indicating that Toshiba could not absorb the financial hit suggested by new estimates from Westinghouse’s subcontractor of the work remaining on the project. These briefings led Marsh to believe there existed a heightened risk of further construction delays. Yet, on December 29, 2016, when the ORS requested detailed information from SCANA regarding the construction schedule for both units, Marsh and his coconspirators fraudulently withheld the information provided by Westinghouse and Toshiba.
In the plea agreement, Marsh agrees to cooperate fully with federal, state, and local law enforcement agencies. He also agrees to testify fully and truthfully before any grand juries until the investigation and prosecution in the criminal acts that occurred in relation to the failed V.C. Summer Nuclear plant expansion are complete. Additionally, in the plea agreement, prosecutors and Marsh recommended a five million dollar forfeiture.
On the federal charge, Marsh faces a maximum penalty of five years in prison, a fine of up to $250,000, and supervised release of up to 3 years.
United States District Judge Mary G. Lewis accepted the guilty plea and will sentence Marsh after receiving and reviewing a sentencing report prepared by the United States Probation Office.
Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, and Emily Limehouse are prosecuting the case in federal court, along with Special Assistant United States Attorney John O’Halloran.
#####
us_attorney_mccoy_prepared_remarks.pdfFormer Pilot Charged Again for Internet StalkingRead the Press Release
In San Antonio today, a federal grand jury returned an indictment against 66-year-old Mark Joseph Uhlenbrock of Chesterfield, Missouri, for internet stalking yet again, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs.
On September 28, 2016, Uhlenbrock was sentenced to 41 months in federal prison followed by three years of supervised release after pleading guilty to an internet stalking charge. Uhlenbrock admitted that from January 2006 to August 2015, he caused substantial emotional distress by posting nude photographs of his victim on the internet without the victim’s consent and despite three Bexar County civil district court lawsuits.
After completing his prison term, court records reflect that in April 2019 a federal judge sentenced Uhlenbrock to six months imprisonment for violating the terms of his supervised release.
Today’s indictment charges Uhlenbrock with one count of internet stalking the same victim again. The indictment alleges that from May 2020 to September 2020, Uhlenbrock used the internet to cause substantial emotional distress to a person. The conduct in this indictment occurred while Uhlenbrock was still on supervised release for his first conviction of internet stalking.
Uhlenbrock has remained in federal custody since his arrest in Missouri on December 10, 2020, for allegedly violating conditions of his supervised release.
The FBI in San Antonio investigated this case with assistance from the FBI in St. Louis. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
#####
Former Member of New Bedford Latin Kings Sentenced for Drug Conspiracy ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on drug conspiracy charges.
Ines Lugo, a/k/a “Queen China,” 42, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately 47 days in prison) and three years of supervised release. The government recommended a sentence of 18 months incarceration. In November 2020, Lugo pleaded guilty to conspiracy to distribute cocaine base.
Lugo admitted that she conspired with other Latin Kings members and leaders to possess cocaine base (also known as “crack cocaine”) with the intent to distribute it. Specifically, in August 2019, she conspired with others to obtain cocaine base from members of the Latin Kings in New Bedford for resale. On Aug. 24, 2019, Lugo was captured on video delivering cocaine base to another Latin Kings member in a trap house.
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. Ines Lugo is the 16th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Massachusetts State Representative Pleads Guilty to Embezzling Campaign Funds, Bank Fraud and Tax FraudRead the Press Release
BOSTON – Former Massachusetts State Representative David M. Nangle pleaded guilty today to illegally using campaign funds to pay for his personal expenses, defrauding a bank to obtain loans to purchase his home and repay his personal debts, and collecting income that he failed to report to the IRS.
Nangle, 60, of Lowell, pleaded guilty to 10 counts of wire fraud, four counts of bank fraud, four counts of making false statements to a bank and five counts of filing false tax returns. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 24, 2021. Nangle was arrested and charged in February 2020.
“Elected representatives are expected to work for the benefit of their constituents, not to line their own pockets,” said United States Attorney Andrew E. Lelling. “Mr. Nangle violated his obligations to the public by siphoning campaign dollars to cover the cost of his personal lifestyle, violating both federal law and the trust placed in him by voters. This office will continue to aggressively investigate and prosecute public corruption in the Commonwealth’s government institutions.”
“David Nangle brokered his powerful position as a Massachusetts state lawmaker to put his own personal, financial, and political interests above the people he was elected to serve, depriving them of the right to honest government,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Corrupt public officials undermine the integrity of our government and inflict lasting damage. Rooting them out is among the most complex and significant work the FBI does for the American people.”
“Elected officials are chosen to serve the people, not themselves,” said Acting Special Agent in Charge Ramsey E. Covington of the Internal Revenue Service-Criminal Investigation Division. “Misusing campaign funds, underreporting income and claiming fraudulent tax deductions on income tax returns are all egregious betrayals of the public’s trust. Corruption of this nature is far too common, and I hope that today’s guilty plea sends a clear message of IRS-CI’s commitment to holding those who commit these dishonorable acts accountable.”
From 1999 to 2020, Nangle was the elected member of the Massachusetts House of Representatives for the 17th Middlesex District. Nangle, who previously served as a House Ethics Committee Chairman, used his campaign committee’s debit card to make personal purchases, including thousands of dollars in gift cards for his personal use, among other things.
During the period of the charged offenses, Nangle was heavily in debt and gambled extensively at area casinos and online, and then used thousands of dollars in campaign funds to pay for various personal expenses such as dues at a local golf club, rental cars to travel to casinos, flowers for his girlfriend, gas, hotels, and restaurants. Nangle knew that using campaign funds for personal use was prohibited and subject to oversight by an independent state agency and concealed his theft by filing false reports that disguised the personal nature of the spending.
In addition, from at least 2015 to 2018, Nangle devised a scheme to fraudulently obtain loans from a bank in order to finance the purchase of his home, fund his gambling activities and repay his personal debts. Nangle did so by making false statements on multiple loan applications, misstating his income and understating his debt.
Separately, Nangle filed false tax returns for tax years 2014 to 2018 by reporting fictitious business deductions for purported “consulting” work that he did for a Billerica company. Nangle also double dipped on deductible expenses arising from his work as a state legislator, fraudulently claiming thousands of dollars in false deductions for alleged charitable donations and misleading his tax preparer. Further, Nangle concealed the income he received through goods and services from business owners and other sources. This included $7,000 in kitchen and bathroom work done in Nangle’s home and $7,000 in check payments from a contractor; gambling income from a Connecticut casino; and thousands of dollars that he stole from his campaign account.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of bank fraud and making false statements to a bank each provide for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Dustin Chao, Chief of Lelling’s Public Corruption & Special Prosecutions Unit, and Assistant U.S. Attorney Kunal Pasricha are prosecuting the case.
Former Hershey Man Sentenced to 11 Years’ Imprisonment for Numerous Fraud OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Jay Jackson, age 61, formerly of Hershey, Pennsylvania, was sentenced yesterday to eleven years’ imprisonment and three years’ supervised release, by U.S. District Judge Sylvia H. Rambo, on bankruptcy fraud, wire fraud, aggravated identity theft, and money laundering charges. Jackson was also ordered to pay $1,567,275 in restitution. Jackson was previously sentenced in March 2019. In May 2020, the U.S. Court of Appeals for the Third Circuit vacated that sentence and remanded for resentencing.
According to Acting United States Attorney Bruce D. Brandler, Jackson pled guilty in November 2017 to an indictment charging him with twelve counts of wire fraud, five counts of bankruptcy fraud, nine counts of false bankruptcy declarations, and two counts of aggravated identity theft. Jackson defrauded his creditors, the Bankruptcy Court for the Middle District of Pennsylvania, and his wife by filing seven Chapter 13 and Chapter 11 bankruptcy petitions, five of which were under Jackson’s name, and two of which were under his wife’s name without her knowledge or consent. The petitions contained false information regarding Jackson’s income, assets, and employment, and were filed in order to postpone multiple Sheriff’s sales of his Hershey residence. Jackson filed the last two petitions under his wife’s name after the Bankruptcy Court barred Jackson from filing any further petitions for two years in May 2015.
Jackson also pled guilty in March 2018, to a two-count criminal information charging him with wire fraud and money laundering. Jackson perpetrated a loan-fraud scheme involving a bogus business venture between 2007 and 2017 that defrauded 22 victims out of approximately $1.7 million. Jackson registered a corporation by the name of INTEX Building Materials Group, Inc. (INTEX BMG) with the Pennsylvania Department of State in 2007, listing himself as the sole shareholder and Chief Executive Officer of the company. Jackson defrauded his victims by convincing them he had the backing of Brookstone Partners, a New York City capital investment company, to lend him millions of dollars to acquire companies that manufactured building products. Jackson induced his victims into giving him loans to pay for his personal expenses, including his children’s college tuition, while the victims awaited consummation of the deal with Brookstone. Jackson promised his victims huge returns on what were supposed to be short-term loans. Jackson also provided copies of what he claimed to be e-mails from Brookstone principals that falsely represented the INTEX BMG deal was real.
In reality, INTEX BMG was a “paper” company that did not hold any significant assets, did not have any paid employees, and never generated any income. Jackson provided his victims a variety of explanations as to why INTEX BMG did not go “live” in order to lull them into not taking action against him. Jackson would repeatedly blame the protracted delays upon the Internal Revenue Service (IRS), the U.S. Securities and Exchange Commission (SEC), various state regulators, and the Canadian government. Many of the victims of Jackson’s loan-fraud scheme were from central Pennsylvania.
The case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney Kim Douglas Daniel prosecuted the case.
# # #
Former Grass Seed Company Manager Charged in Scheme to Defraud Simplot and Its CustomersRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Christopher Claypool, 52, of Spokane, Washington, the former general manager of the Jacklin Seed Company, a producer and marketer of grass seed and turfgrass based in Liberty Lake, Washington, has been charged by criminal information with conspiracy to commit wire fraud and money laundering as part of multiple schemes to defraud Jacklin’s former owner, the J.R. Simplot Company, and its customers.
As general manager of Jacklin, Claypool oversaw the company’s product sales to domestic and foreign distributors. Jacklin contracted with independent growers in Oregon for the production of proprietary grass seed varieties and fulfilled orders from a distribution facility in Albany, Oregon. Differences in grass seed yield rates resulted in the over-delivery of some varieties and underproduction of others.
At some point between 2013 and 2015, Claypool and other Jacklin employees realized that growers’ preference for higher-yield grasses was creating substantial shortages of lower-yield varieties Jacklin had contracted to deliver to its customers. Claypool and a colleague who oversaw product fulfillment at the company’s Albany distribution facility recognized that these shortages would either cause Jacklin to fail to deliver on its existing contracts or require Jacklin to pay a premium to growers to acquire necessary inventory, substantially eroding company profits. Claypool and his colleague anticipated that either result would negatively affect their careers.
From January 2015 and continuing until at least the summer of 2019, Claypool and his colleague directed Jacklin employees, at the Albany facility and elsewhere, to fulfill customer orders with different varieties of grass seed than the customers had ordered, to conceal such substitutions from the customers, and to invoice the customers as though no substitutions had taken place. Claypool and his colleague referred to this scheme as “getting creative.”
To conceal the unauthorized substitutions, Claypool and his colleague directed Jacklin employees to package the substitute seed varieties with false and misleading labels. They also directed employees to invoice the customers under the original terms of their contracts, notwithstanding the unauthorized substitutions. As a result of this scheme, Jacklin invoiced customers for more than $1.1 million of grass seed the company never delivered.
In addition to the undisclosed seed substitutions, Claypool engaged in several other fraudulent schemes while serving as Jacklin’s general manager. In one scheme, he directed an accomplice to create a limited-liability corporation (LLC) to pose as an independent grass seed broker. Claypool and a colleague conspired to route a portion of Jacklin’s overseas sales through a competing grass-seed seller based in Jefferson, Oregon. The company would, in turn, add its own mark-up to the sales and kick back outsized commissions to Claypool through his accomplice’s LLC. From December 2018 through August 2019, Claypool generated more than $369,000 in fraudulent commissions.
In a third scheme, Claypool conspired with the owner of an independent travel agency in Spokane to inflate the purported costs of Claypool’s international business travel. Claypool traveled overseas extensively for business and had authority to approve his own travel expenses. In lieu of using Simplot’s contract travel agency, Claypool booked his flights through the independent travel agent. The agent booked economy and other lower-cost fares for Claypool, but created fake first-class bookings on the most expensive comparable itineraries in order to generate inflated invoices that he transmitted to Simplot, through Claypool, for payment. In total, the agent overbilled more than $500,000 for international airfare, the majority of which Claypool ultimately received in kickbacks from the agent.
In the most lucrative fraud scheme, Claypool directed Simplot’s payment of more than twelve million dollars in “rebates” and “commissions” to entities that were posing as foreign sales partners but were, in fact, fronts for Claypool’s coconspirators in embezzling those funds. The coconspirators then transmitted part of their ill-gotten gains from accounts in Hong Kong to real estate investments in Hawaii under Claypool’s control. Years later, Claypool sold the real estate and wired the proceeds to investment accounts in Spokane as part of an elaborate money laundering operation.
Claypool faces a maximum sentence of 70 years in prison, fines of more than $15 million, and 5 years’ supervised release. His arraignment has not yet been scheduled.
This case is being investigated by IRS Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Cargill Employee Is Indicted for Extensive Bribery and Kickback SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Michael A. Kennedy, 55, of Charlotte, on conspiracy and honest services wire fraud charges, for his role in an extensive bribery and kickback scheme that defrauded his employer, Cargill, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Tommy D. Coke, Inspector in Charge of the Atlanta Divsion of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today's announcement.
According to allegations in the indictment, Kennedy was a senior employee within Cargill’s division of strategic sourcing. Choung “Shawn” Nguyen was a procurement manager within the same division and reported to Kennedy. Brian Ewert was co-owner and primary sales representative of WDS, Inc., also known as Women’s Distribution Services, Inc. (WDS), a South Carolina-based company that provided non-raw materials and services to Cargill and its affiliates.
According to allegations in the indictment and information contained in filed court documents in related cases, from 2009 to 2016, Kennedy conspired with Ewert, Nguyen, and others to carry out a fraudulent bribery and kickback scheme. The indictment alleges that, during the course of the scheme, Ewert provided Kennedy and Nguyen and other Cargill employees with more than a $1 million in cash, gifts, and vacations, in exchange for them, among other things, putting the interests of WDS, and other companies Ewert controlled, ahead of Cargill’s, including by helping to conceal the fact that WDS was overcharging Cargill. For example, the indictment alleges that, as part of the conspiracy, Ewert provided Kennedy and his family with lavish trips that cost hundreds of thousands of dollars, including trips to the Caribbean on Ewert’s private jet and luxury yacht rentals to entertain Kennedy and his family. Ewert also paid for Kennedy and his family to go to Disney World and took them on ski trips. The indictment alleges that Kennedy and others concealed from Cargill the fact that they had received from Ewert the illicit bribes and kickbacks, in breach of their fiduciary duties to Cargill.
As alleged in the indictment, in early 2016, after others within Cargill began questioning the relationship between WDS and Cargill, Kennedy, Ewert, and others took numerous steps to conceal from Cargill significant overcharging of Cargill by WDS. Cargill eventually discovered the scheme and terminated its relationship with WDS and Ewert and fired Kennedy and Nguyen.
Kennedy had his initial appearance today before U.S. Magistrate Judge Gwynne E. Birzer in the U.S. District Court for the District of Kansas where Kennedy was arrested. The charges in the indictment each carry a maximum penalty of 20 years in prison and a $250,000 fine.
The charges in the indictment are allegations. The defendant is innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In November 2019, Ewert, Nguyen and Jennifer Maier, the co-owner and Chief Executive Officer of WDS, were sentenced to 60, 41, and 24 months in prison, respectively, for defrauding Cargill.
The FBI and USPIS investigated the case. Assistant U.S. Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Former COO of Publicly Traded Biopharmaceutical Company Sentenced for Accounting FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that WILLIAM TAYLOR, the former chief operating officer of MiMedx Group, Inc. (“MiMedx”), a publicly traded biopharmaceutical company, was sentenced today in Manhattan federal court to one year in prison for orchestrating a multimillion-dollar scheme to fraudulently inflate MiMedx’s revenue. TAYLOR and co-defendant Parker H. Petit were found guilty on November 19, 2020, following a four-week jury trial before U.S. District Court Judge Jed S. Rakoff, who imposed today’s sentence. Judge Rakoff sentenced Petit to one year in prison in a separate proceeding yesterday.
Manhattan U.S. Attorney Strauss said: “William Taylor and his co-defendant used secret agreements and corrupt financial inducements to materially misstate quarterly and annual sales revenue of MiMedx. They deceived the SEC, auditors, and the investing public. Now Taylor, like Parker Petit yesterday, has been sentenced to prison for his crimes.”
According to the allegations contained in the Indictment and the evidence presented at trial:
MiMedx was headquartered in Marietta, Georgia, and its securities traded under the symbol “MDXG” on the NASDAQ. MiMedx sold regenerative biologic products, such as skin grafts and amniotic fluid, both directly to end users, such as public and private hospitals, and to various stocking distributors, which, in turn, resold the product to end users.
One of the most critical financial metrics disclosed in MiMedx’s public filings with the Securities and Exchange Commission (“SEC”), and touted in MiMedx’s accompanying press releases, was MiMedx’s quarterly and annual sales revenue. Under Generally Accepted Accounting Principles (GAAP) and SEC guidance, a company like MiMedx that engages in the sale of products through a distributor may recognize revenue upon transfer of the product to a distributor if certain requirements are satisfied, including that delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability of payment is reasonably assured. TAYLOR and Petit, MiMedx’s former chief executive officer, repeatedly demonstrated and touted their understanding of these rules governing revenue recognition. They also publicly identified revenue as the principal metric reflecting MiMedx’s growth, and touted MiMedx’s consistent record of quarter-over-quarter revenue growth and meeting or exceeding revenue guidance in 17 consecutive quarters, from 2011 through year-end 2015. By 2015, however, it became increasingly difficult for MiMedx to reach its revenue guidance due to decreased demand from certain distributors and the increasingly aggressive revenue targets that MiMedx had publicly announced.
Confronted with the difficulties faced by MiMedx in meeting its quarterly and annual revenue guidance by legitimate means, TAYLOR and Petit orchestrated a fraudulent scheme to falsely recognize revenue upon the shipment of MiMedx product to four stocking distributors, CPM, SLR, Stability Biologics (“Stability”), and First Medical, in the second through fourth quarters of 2015. TAYLOR and Petit caused MiMedx to report fraudulently inflated revenue figures to the investing public in order to ensure that the reported figures fell within MiMedx’s publicly announced revenue guidance, and to fraudulently convey to the investing public that MiMedx was accomplishing consistent growth quarter after quarter, as TAYLOR and Petit had falsely touted to the investing public. The fraudulent scheme involved the following central features:
- As to CPM, in the second quarter of 2015, TAYLOR and Petit caused MiMedx fraudulently to recognize $1.4 million in revenue by (1) making a $200,000 sham “consulting” payment to CPM’s owner to bribe CPM to buy MiMedx product and (2) secretly agreeing to send CPM approximately $1.1 million of product it did not want and did not intend to sell, while promising that CPM could return the product to MiMedx and swap it for different product in a subsequent quarter. TAYLOR and Petit entered into the sham “consulting” agreement to conceal that the payment was a bribe to purchase product, and CPM’s owner performed no consulting work for the payment. Neither TAYLOR nor Petit disclosed to MiMedx’s outside auditors the “consulting” payment or product swap.
- As to SLR, in the third quarter of 2015, TAYLOR and Petit caused MiMedx fraudulently to recognize $4.6 million in revenue by booking the revenue despite understanding that SLR would not make a timely payment for the product, and certainly would not do so within contractual terms. To hide from MiMedx’s auditors that the collectability of payment from SLR was questionable, during the fourth quarter 2015, Petit arranged for his adult children to use a shell company to loan money to SLR (money that came from a trust fund established by Petit for their benefit), with the understanding that the loan proceeds would be used in substantial part to pay down SLR’s debt to MiMedx.
- As to Stability, in the third and fourth quarters of 2015, TAYLOR and Petit caused MiMedx improperly to recognize $2.6 million of revenue, where they (1) failed to agree with Stability on the essential terms of the deal, including when payment was due; (2) reached a secret understanding that Stability could swap or return unwanted product in subsequent quarters; and (3) understood that Stability could not pay for the product in a timely fashion. In fact, TAYLOR later signed a sham distribution agreement to hide the fact that the original sale had been made without agreement on the essential terms.
- As to First Medical, in the fourth quarter of 2015, TAYLOR caused MiMedx improperly to recognize $2.2 million in revenue by making an undisclosed promise to First Medical that it could return any product that it could not sell and that MiMedx would not leave First Medical with any losses. To carry out the scheme, TAYLOR sent two emails four seconds apart to First Medical. The first was a “cover story” that purported to require payment within a fixed period, as required by MiMedx’s accountants. TAYLOR forwarded the first email to MiMedx’s accounting department. The second email, sent only four seconds after the first, memorialized the true terms of the deal, which involved an agreement to defer payment and take back product if it could not be sold. TAYLOR hid the second email from MiMedx’s internal accountants and outside auditors. TAYLOR also arranged for a false audit “confirmation,” which falsely represented that First Medical was required to pay within a fixed period and omitted the true terms of the deal, to be provided to MiMedx’s outside auditors.
TAYLOR and Petit’s fraudulent manipulation of MiMedx’s revenue caused MiMedx to report materially inflated revenue in the second, third, and fourth quarters of 2015, and for the full year 2015. In its 2015 10-K, MiMedx reported annual revenue that was fraudulently inflated by approximately $8.2 million. Absent this fraudulent inflation of revenue, MiMedx would have missed both (1) its quarterly revenue guidance in the third and fourth quarters of 2015 and annual revenue guidance for 2015 and (2) analyst revenue consensus for the second through fourth quarters of 2015 and the full year 2015. As a result of the fraud, shareholders sustained losses of approximately $35 million.
* * *
In addition to his prison term, TAYLOR, 52, of Marietta, Georgia, was ordered to pay a fine of $250,000.
Ms. Strauss praised the investigative work of the United States Postal Inspection Service and thanked the SEC, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Scott A. Hartman, and Daniel M. Tracer are in charge of the prosecution.
Florida Man Pleads Guilty for His Role in Credit/Debit Card 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 Giosdeivy Duarte Torresilla, 31, of Miami, Florida, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to commit bank fraud. The charge carries a maximum penalty of 30 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that in January 2017, the defendant traveled with four co-conspirators from Miami, Florida, to Hamburg, NY. Torresilla then provided his co-conspirators with numerous counterfeit access devices, which consisted of gift cards that the defendant had re-encoded with account numbers for actual credit card or debit card accounts at multiple financial institutions, including banks and credit unions. Torresilla obtained the account numbers unlawfully by “skimming” them from payment terminals at gas station pumps. The co-conspirators used 129 different counterfeit access devices to purchase gift cards at various Walmart stores in Erie, Niagara, and Orleans Counties. After purchasing the legitimate Walmart gift cards, the co-conspirators sent the gift card numbers to a co-conspirator in Miami, Florida. The gift cards were worth $120,689.02.
The plea is the result of an investigation by the United States Secret Service, under the direction of Acting Special Agent-in-Charge Acting Thomas A. Braun.
Sentencing is scheduled for May 6, 2021, at 3:30 p.m. before Judge Geraci.
# # # #
Final Member of Methamphetamine Trafficking Organization Sentenced to 14 Years in PrisonRead the Press Release
ABINGDON, Va. – James Sebastian, a member of a conspiracy that trafficked methamphetamine from the West coast into Southwest Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 168 months in prison, Acting United States Attorney Daniel P. Bubar announced.
“Methamphetamine distribution continues to threaten public safety throughout Southwest Virginia,” Acting U.S. Attorney Bubar stated today. “Today’s significant sentence ought to send a message of our commitment to dismantling drug trafficking organizations responsible for dealing this deadly narcotic and sending their members to federal prison.”
Sebastian, 48, previously pleaded guilty to one count of conspiracy to distribute 500 grams or more of methamphetamine and one count of distribution of methamphetamine.
According to court documents, Sebastian was part of a large-scale methamphetamine organization. In early 2017, Operation California Dreaming began investigating the trafficking of methamphetamine between California, Southwest Virginia, and Northeast Tennessee. As a result of that investigation, 28 individuals, located in California, Georgia, Virginia, and Tennessee, were charged as being members of a drug trafficking organization responsible for the distribution of large quantities of methamphetamine. Charges levied against these individuals included both drug and firearms offenses.
Sebastian was the final member of the conspiracy to be sentenced:
- Sean Phillip Maidlow – 300 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Jair Medina Gutierrez - Fugitive
- Lacey Cheri Weir – 300 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Andrea Nichole Stickel - 210 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- James Nicholas Howington – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- James Robert Johnson – 151 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Stephen A. Graham – 84 months imprisonment, conspiracy to distribute 50 grams or more of methamphetamine.
- Christopher Lee Smiley – 64 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Joshua Todd Chapman – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Saleemah Lashawn Roberson – 108 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Donald Zachary Snyder – 270 months imprisonment, conspiracy to distribute 500 Grams or more of methamphetamine, distribute methamphetamine, and possess a firearm in furtherance of a drug trafficking offense.
- Larry Levi Bennett – 235 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Terry Melvin Dalton – 120 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine.
- Heather Ashley Davis – 120 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Brianna Nicole Woodby – 60 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Donald Shane Hawthorne – 144 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Gary Lee McFarlane – 135 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine
- Elizabeth Pauline Eaton – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Matthew Todd Mullins – 188 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine, distribute methamphetamine, and manufacture counterfeit United States currency.
- Anthony Chadwick Harless -108 months imprisonment, conspiracy to distribute 50 grams or more of methamphetamine.
- Kimberly Ann Drake – 210 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Brandon Heath Whitt – 108 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Melissa Darlene Barrett – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine.
- Susan Nicole Payne – 87 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine
- Bradley Scott Williams – 204 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Devon Scott Coleman – 211 months imprisonment, conspiracy to distribute 50 grams or more of methamphetamine, possess 50 grams or more of methamphetamine with the intent to distribute, and possess a firearm in furtherance of a drug trafficking offense.
The investigation of the case was conducted the Abingdon Police Department, Virginia State Police, Washington County Sheriff’s Office, Bristol, Tennessee Police Department, Bristol, Virginia Police Department, the Sullivan County, Tennessee Second Judicial Drug Task Force, Sullivan County Sheriff’s Department, Commerce, Georgia Police Department, New Jersey State Police, United States Postal Inspection Service, United States Marshals Service, United States Secret Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Washington County Commonwealth’s Attorney’s Office, Bristol, Virginia Commonwealth’s Attorney’s Office, and the Sullivan County, District Attorney’s Office have assisted in the investigation. Assistant United States Attorneys Zachary T. Lee and Cagle Juhan prosecuted the case for the United States.
Final Defendant Sentenced in $7 Billion Investment Fraud SchemeRead the Press Release
The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) was sentenced today to 10 years in prison for his role in connection with a $7 billion Ponzi scheme involving the Stanford International Bank (SIB).
Leroy King, 74, of Dickerson Bay, Antigua, pleaded guilty on Jan. 30, 2020, to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019. King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including the review of SIBL financial reports and responses to requests by foreign regulators, including the SEC, for information and documents about SIBL’s operations.
In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments.
King admitted that Stanford’s cash payments to King totaled approximately $520,963.87 over the course of the conspiracy. Stanford also provided King tickets to both Super Bowl XXXVIII in Houston (2004) and Super Bowl XL in Detroit (2006). In addition, Stanford provided King with repeated flights on private jets Stanford or SFG entities owned. King later denied the SEC’s request for help, and he wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise it because of the payments and other benefits Stanford gave to King.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from 3 to 20 years in federal prison.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.
The Houston Field Offices of the FBI, IRS-CI, and U.S. Postal Inspection Service investigated the case.
Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas prosecuted the case.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
Felon sentenced to prison for firearms crime after shooting incident at Billings motelRead the Press Release
BILLINGS – A man who admitted illegally possessing a shotgun after a shooting incident at a Billings motel was sentenced today to 30 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Roderick Lee Little Bear, 39, of Billings, pleaded guilty on Sept. 3, 2020 to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the prosecution said that Little Bear was convicted of a state felony in 2016 and was revoked in 2018.
On Oct. 17, 2017, Billings Police officers were dispatched to the Lazy KT Motel in Billings for a report that someone had shot a hole in the ceiling above a room with a shotgun. During the investigation, officers observed a suspect gray pickup return to the motel. Officers observed the driver exit the vehicle and a male, later identified as Little Bear, in the passenger seat. As officers approached the vehicle, they heard the sound of a shotgun being racked.
Little Bear looked at both officers and both officers observed Little Bear with a shotgun. One of the officers advised he saw Little Bear raise the shotgun and appear to take a step outside the vehicle. Little Bear was commanded to drop his weapon. Little Bear swung the shotgun in the direction of the officers and pointed the shotgun at them. The officers both fired shots at Little Bear. Officers directed Little Bear to show his hands and eventually Little Bear complied.
A shotgun was located on the ground next to the pickup. Little Bear was transported to a Billings hospital for treatment of his injuries. Little Bear refused to provide a statement to detectives regarding the shooting. Interviews with motel residents revealed the shooting was likely a result of a feud between rival gangs.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
XXX
Federal officer charged with helping undocumented nanny into the countryRead the Press Release
LAREDO, Texas – A 40-year-old Customs and Border Protection (CBP) officer is set to appear in federal court on charges of conspiring to transport an illegal alien and making false statements, announced U.S. Attorney Ryan K. Patrick.
Laredo resident Rhonda Lee Walker is set to appear for a detention hearing before U.S. Magistrate Judge Christopher Dos Santos today at 1:30 p.m.
The criminal complaint alleges that on Jan. 2, 2021, Walker used her official position to assist a foreign national into the country. According to the charges, Walker improperly used another officer’s computer login information to help the Mexican woman to enter the United States through the Laredo Port of Entry. The woman allegedly had no legal status to reside or work in the United States. However, Walker intended for the woman to illegally enter the country and work for her as a housekeeper and nanny, according to the complaint. The charges also allege she had sent money to the woman in Mexico to facilitate her arrival.
Walker also allegedly lied to authorities. The complaint alleges she falsely claimed the woman was her aunt and denied ever sending her money.
Walker faces up to 20 years in prison if convicted of the conspiracy or knowingly transporting undocumented aliens. The penalty for knowingly making a materially false statement is a maximum five-year-term of imprisonment.
CBP - Office of Professional Responsibility is conducting the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Federal Grand Jury Indictments Announced for FebruaryRead the Press Release
United States Attorney Trent Shores today announced the results of the February Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Carlos Banegas. Felon in Possession of Ammunition. Banegas, 30, is charged with being a felon in possession of 57 rounds of .22 caliber ammunition. The U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jermaine Dante Barnes. Felon in Possession of Firearms and Ammunition. Barnes, 22, of Tulsa, is charged with being a felon in possession of a .22 caliber rifle and various kinds of ammunition. Barnes is a 11-time convicted felon. The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jared Nathan Black. Assault with Intent to Commit Murder in Indian Country. Black, 45, of Jenks, is charged with assault with intent to commit murder after he allegedly pointed a firearm at the victim’s head and pulled the trigger. The FBI and the Jenks Police Department are the investigative agencies.
Nathan James Blaine. Sexual Exploitation of a Child by a Parent or Guardian. Blaine, 52, of Grove, allegedly permitted a minor in his care to engage in sexually explicit conduct for the purposes of producing visual depictions of that conduct to share with others. The Grove Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Jose Carbajal-Solis. Unlawful Reentry of Removed Alien.
Solis, 27, was allegedly found to be in the United States illegally after being deported in November of 2016. U.S. Immigration and Customs Enforcement’s Enforcement Removal Operations is the investigative agency.
Hugo Alfonso Castillo-Olguin. Unlawful Reentry of Removed Alien.
Olguin, 36, was allegedly found to be in the United States illegally after being deported in March 2013. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency.
Stuart H. Clark. Failure to Register as a Sex Offender.
Clark, 30, of Tulsa, is charged after allegedly failing to register as a sex offender after multiple child pornography convictions in 2014. The U.S. Marshals Service is the investigative agency.
Leslie Kenneth Copeland. Failure to Register as a Sex Offender. Copeland, 44, of Tulsa, is charged with failure to register as a sex offender. The U.S. Marshals Service, Tulsa Police Department and Tulsa County Sheriff’s Office are the investigative agencies.
Nicholas James Dardenne. Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Dating Partner in Indian Country; Assault of an Intimate Partner or Dating Partner by Strangling and Attempting to Strangle in Indian Country. Dardenne, 43, of Tulsa, is charged with assault after allegedly strangling his girlfriend and striking her with his fists. The FBI and Tulsa County Sheriff’s Office are the investigative agencies.
Melissa Lynn Davis. Child Abuse in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; Assault resulting in Substantial Bodily Injury to an Individual who has not Attained the Age of 16 Years in Indian Country. Davis, 28, of Jenks, allegedly maliciously harmed the health, safety, and welfare of a minor child by assaulting her and causing serious bodily injury. The FBI and the Tulsa Police Department are the investigative agencies.
Tywan Carnelius Erby. Felon in Possession of a Firearm and Ammunition. Erby, 47, of Tulsa, is charged with being a felon in possession of a 9x19mm semi-automatic pistol and ammunition. Erby is a five-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tulsa Police Department are the investigative agencies.
Michael Lee Figgeroa. Distribution and Receipt of Child Pornography; Possession of Child Pornography. Figgeroa, 42, of Hominy, is alleged to have knowingly possessed, distributed and received with intent to view child pornography. The Tulsa Police Department is the investigative agency.
Omar Heriberto Garcia-Luna. Unlawful Reentry of Removed Alien. Luna, 20, of Tulsa, was allegedly found to be in the United States illegally after being deported in April 2020. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency.
Bradley Don Goodin. Aggravated Sexual Abuse of a Minor Under 12 in Indian Country; Abusive Sexual Contact With a Child Under 12 in Indian Country; Abusive Sexual Contact of a Child in Indian Country; Possession of a Firearm While Subject to a Domestic Violence Protective Order (second superseding indictment). Goodin, 46, of Sapulpa, is charged with three counts of engaging in sexual acts with two Native American children under the age of 12, occurring in 2019. He is further charged with abusive sexual contact of one of those victims in 2019 and as well as sexual abusive contact with a different child between the ages of 12 and 16, allegedly taking place from the Fall of 2008 to the Spring of 2009. Goodin is also charged with being in possession of 21 firearms while subject to a domestic violence protective order. The Sapulpa Police Department, Creek County Sheriff’s Office and FBI are the investigative agencies.
Lee Owen Hallford. Assault with a Dangerous Weapon, with Intent to do Bodily Harm in Indian Country. Hallford, 29, of Tulsa, is being charged after he allegedly assaulted the victim with a knife. The FBI and Tulsa Police Department are the investigative agencies.
Pedro Herrera-Angeles. Unlawful Reentry of Removed Alien. Herrera-Angeles, 41, was allegedly found to be in the United States illegally after being deported in February 2019. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency.
Michael Charles Hicks Jr. Robbery in Indian Country; Theft in Indian Country (second superseding). Hicks, 50, allegedly stole a 2015 Cadillac Escalade, by force and violence, from the victim. The FBI, Tulsa Police Department, Tulsa County Sheriff’s Office, and the Oklahoma Highway Patrol are the investigative agencies.
Jeffrey Arch Jones. Aggravated Sexual Abuse of a Child in Indian Country; Abusive Sexual Contact of a Child in Indian Country. Jones, 31, currently residing in the Oklahoma Department of Corrections, allegedly engaged in sex acts with a minor under 12 years of age from Sept. 29, 2015 to Sept 28, 2016. He is also charged with abusive sexual contact of a second child under the age of 12 from Sept. 29, 2015, to Sept. 30, 2016. The Broken Arrow Police Department and FBI are the investigative agencies.
Timothy Eugene Jordan. Arson. Jordan, 50, is charged with setting a fire at a residential apartment building at 6565 South Newport Avenue in Tulsa. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Fire Inspector are the investigative agencies.
Derek L. Lovell. Attempted Kidnapping in Indian Country; Assault with Intent to Commit a Felony in Indian Country. Lovell, 36, of Tulsa, is charged with attempting to kidnap a female victim on Jan. 28, 2021. The Tulsa Police Department and FBI are the investigative agencies.
Roberto Montel Madden; Cheetara Denise Venable. Felon in Possession of Firearm and Ammunition; Felon in Possession of Ammunition (3 counts). Madden, 47, of Tulsa, is charged with being a felon in possession of a Beretta .40 S&W caliber pistol and ammunition and with being a felon in possession of 17 rounds of .40 S&W caliber ammunition discovered on Nov. 26, 2020. He is also charged with being a felon in possession of a Taurus 9mm caliber semi-automatic pistol, six rounds of 9mm Luger caliber ammunition, and one round of 9 mm caliber ammunition as aided by Venable and discovered on Jan. 18, 2021. Venable, 34, of Tulsa, is charged with being a felon in possession of a Taurus 9mm caliber semi-automatic pistol, six rounds of 9mm Luger caliber ammunition, and 1 round of 9 mm caliber ammunition as aided by Madden. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
James Ted McCarty. Using a Vehicle to Facilitate the Intentional Discharge of a Firearm in Indian Country; Using, Carrying, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence; Felon in Possession of Firearm. McCarty, 45, of Sand Springs, is alleged to have conducted a drive by shooting at the victim’s residence on Feb. 3, 2021. McCarty is further charged with being a felon in possession of a Taurus PT111 G2 9mm pistol. The Sand Springs Police Department and FBI are the investigative agencies.
Jesse Thomas Moore. Lewd Acts With a Child Under 16 in Indian Country; Burglary in the First Degree in Indian Country; Attempted Sexual Abuse by Threat in Indian Country. Moore, 18, of Tulsa, is alleged to have broken into a female victim’s home on May 6, 2020. He is further alleged to have ejaculated on a minor under the age of 16 on May 6, 2020. According to the indictment, Moore also broke into a different individual’s home with intent to commit a crime by forcibly entering the outer door of the house on Nov. 8, 2020, He also allegedly attempted to engage in a sexual act with a female victim and demanded she “get the f**k up and don’t say anything or I’ll f**king kill you on Dec. 13, 2020. You can find the initial Complaint press release here.
Issac Eli Pigeon. Robbery in Indian Country. Pigeon, 18, of Tulsa, used force and violence in a robbery. The Tulsa Police Department and FBI are the investigative agencies.
Brian Christopher Pradmore. Assault of a Spouse by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country. Pradmore, 31, of Mannaford, assaulted and strangled a female victim on Sept. 24, 2020. The Mannaford Police Department and FBI are the investigative agencies.
Zachary Thomas Price. Receipt of Firearm by a Person Under Indictment for a Felony. Between Oct. 6, 2020 through Jan. 22, 2021, Price, 21, of Tulsa, allegedly received and was in possession of a Smith & Wesson .40 caliber semi-automatic pistol while under indictment for the felony crime of stalking in Indian Country. The Broken Arrow and Tulsa Police Departments are the investigative agencies.
Anthony Raul Proctor. Felon in Possession of a Firearm and Ammunition (count 1); Assault with a Dangerous Weapon in Indian Country (counts 2, 4); Using and Carrying a Firearm During and in Relation to a Crime of Violence (counts 3, 5, 7, 9); Assault with Intent to Commit Murder in Indian Country (counts 6, 8) (superseding). Proctor, 32, of Bristow, is charged with being a felon in possession of a Smith & Wesson .40 caliber pistol and 14 rounds of ammunition, which was discovered on Oct. 1, 2020. Proctor is a 5-time convicted felon. In this superseding indictment, he also is charged with assaulting an individual by discharging a round into the victim’s vehicle on May 6, 2020. Proctor is also charged with assaulting a different victim, using a firearm, feet and hands to strike the victim on Aug. 7, 2020. Finally, Proctor is charged with two counts of assault with intent to commit murder when he fired multiple rounds into a home occupied by two people on Sept. 15, 2020, and in a separate incident when he fired his gun at a different individual, striking the victim with one round on Sept. 27, 2020. The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Muskogee Creek Nation Lighthorse Police Department, and Bristow Police Department are the investigative agencies.
Charles Nathaniel Scott. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Scott, 30, of Tulsa, is charged with being a felon in possession of a Beretta Pico .380 caliber pistol and ammunition. He is further charged with possessing with intent to distribute 50 grams or more of methamphetamine and with possessing a firearm to further his drug trafficking crime. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Jordan Connor Searle. Assault With a Dangerous Weapon in Indian Country. Searle, 23, residence unknown, is charged with assaulting a male victim by stabbing him with a knife. The Tulsa Police Department and FBI are the investigative agencies.
Francisco Serna-Hernandez. Unlawful Reentry of Removed Alien. Serna-Hernandez, 22, of Tulsa is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported March 24, 2018, at Del Rio, Texas, International Bridge. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency.
Joshua Marquis Shobe. Felon in Possession of Firearms and Ammunition. Shobe, 22, of Coffeyville, Kansas, is charged with being a felon in possession of a Taurus .45 caliber pistol, a Taurus 9 mm pistol, and 23 rounds of ammunition. The Oklahoma Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Roderick Demense Brooks and Tavian Caleb Steward. Attempted Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Obstructing, Delaying, and Affecting Interstate Commerce by Robbery; Carjacking; Robbery in Indian Country. According to the indictment, Brooks, 18, of Tulsa, is alleged to have used violence and brandished a handgun when he threatened a female victim and stole her money on Dec. 29, 2020. He is further accused of robbing a Broken Arrow refreshment shop and threatening a store employee with a firearm that same night. On Dec. 30, 2020, both Brooks and Steward, 18, of Tulsa, allegedly aided and abetted one another when they committed a carjacking. The two men threatened the owner using a firearm when they stole a 2019 Toyota Rav-4 from the owner. Finally, Steward threatened an employee using a firearm when he robbed a Tulsa sandwich shop on Jan. 7, 2021. The FBI and Broken Arrow and Tulsa Police Departments are the investigative agencies.
Ryan Blake Still. Failure to Register as a Sex Offender. Still is charged with failing to register as a sex offender. The U.S. Marshals Service is the investigative agency.
Charles Wesley Tillery, Jr. Assault of an Intimate and Dating Partner by Strangling and Suffocating in Indian Country. Tillery Jr., 35 of Inola, is charged with strangling an intimate partner on Jan. 3, 2021. The Rogers County Sheriff’s Office and FBI are the investigative agencies.
Daniel Angelo Torres. Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug Involved Premises. Torres, 27, of Tulsa, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. He is further charged with possessing a firearm in furtherance of his drug trafficking crime and with maintaining a drug involved premises at 1020 N St Louis Avenue in Tulsa. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Andrew Dillon Vann. Felon in Possession of Firearm and Ammunition. Vann is charged with being a felon in possession of a Taurus 9 mm caliber handgun. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Juan Vasquesz-Alvarez. Possession of Methamphetamine With Intent to Distribute; Possession of Firearms in Furtherance of a Drug Trafficking Crime. Vasquez-Alvarez, 28, of Tulsa, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. He is further charged with possessing a firearm in furtherance of his drug trafficking crime. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Taylor Vaught-Crysler; Zachary Wayne Crew. Obstructing, Delaying, and Affecting Commerce by Robbery; Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Conspiracy to Obstruct, Delay, and Affect Commerce by Robbery. Vaught-Crysler, 18, and Crew, 19, both of Tulsa, allegedly aided and abetted each other on Jan. 15, 2021, when they robbed two Tulsa QuikTrip stores located at. 1022 S. Utica Avenue and 3606 S. Peoria Avenue. The Tulsa Police Department and FBI are the investigative agencies.
Israel Vidales-Martinez. Unlawful Reentry of Removed Alien. Vidales-Martinez, 33, of Tulsa is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Nov. 19, 2010, at Del Rio, Texas, International Bridge. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency.
Blake Clifton Williamson. Possession of an Unregistered Rifle Having a Barrel of Less Than 16 Inches in Length; Tampering With a Witness, Victim, and Informant by Intimidation, Threats, Corrupt Persuasion, and Misleading Conduct; Kidnapping in Indian Country Possession of an Unregistered Silencer (superseding). Williamson was previously charged with knowingly possessing a rifle having a barrel length of less than 16 inches, that is, an Anderson Manufacturing multi-caliber short-barreled rifle, not registered to him in the National Firearms Registration and Transfer Record. According to the superseding indictment, Williamson also allegedly threatened and intimidated a witness in order to prevent her testimony in official court proceedings and to prevent the her from speaking to federal law enforcement officers. Between Oct. 24 and 26, 2020, Williamson kidnapped the same witness. Finally, the defendant possessed a silencer that was not registered to him in the National Firearms Registration and Transfer Record. The Tulsa County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Elkins man sentenced for meth chargeRead the Press Release
ELKINS, WEST VIRGINIA – Nicholas Adam Owens, of Elkins, West Virginia, was sentenced today to 72 months of incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Owens, 25, pled guilty to one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine” in September 2020. Owens admitted to having more than five grams of methamphetamine, also known as “crystal meth” or “ice,” in August 2019 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Elkins Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Eleven Men Indicted for Syracuse Heroin and Fentanyl Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Eleven defendants were arrested on a 30-count federal indictment unsealed today in federal court. The indictment alleges a large-scale drug trafficking conspiracy, drug possession and distribution crimes, and firearms offenses, announced Acting United States Attorney Antoinette T. Bacon, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Chief Kenton Buckner, City of Syracuse Police Department.
All of the defendants below have appeared in federal court in Syracuse. A number of them were previously arrested by complaint and have been ordered detained pending trial. The remaining defendants all appeared in court today and were ordered held without bail pending detention hearings scheduled for next week. The indictment remains sealed as to one defendant who has not yet appeared in court.
As alleged in the indictment unsealed today, law enforcement officers from federal, state, and local agencies seized multiple kilograms of heroin and fentanyl, firearms, vehicles, and thousands of dollars in U.S. currency in an investigation stretching over many months. The defendants are all charged with conspiracy to distribute, and possess with intent to distribute, heroin and fentanyl, and face the following potential penalties for the crimes alleged in the indictment:
Defendant
Age
Residence
Minimum
Maximum
Alejandro De Jesus Tavarez
30
Syracuse
10 years
Life
Alexander Tavarez Espinal
35
Syracuse
10 years
Life
Jan Leonel Vazquez Familia
29
Hazelton, PA
10 years
Life
Jahdier Dowdell
18
Syracuse
10 years
Life
Maurice Graves
23
Syracuse
5 years
40 years
Kamiya Joe, aka “K-Joe”
22
Syracuse
5 years
40 years
SEALED Defendant
xx
xxxx
xxxx
xxxx
Dianisha Trapps, aka “Dutchess”
27
Syracuse
5 years
40 years
Tacarra Newton, aka “T-Newt”
24
Syracuse
5 years
40 years
Tywone Haskins, aka “Ty”
21
Syracuse
5 years
40 years
Joshua Stanley, aka “40”
25
Syracuse
None
20 years
Shateek Brown, aka “Teek” and “Stu”
26
Syracuse
None
20 years
In addition to the drug trafficking offenses described above, defendants Jahdier Dowdell and Maurice Graves are additionally charged with possessing a firearm in furtherance of a drug trafficking crime. The indictment contains forfeiture allegations for the seizure of $76,281.96 in U.S. Currency, as well as over $300,000.00 of unrecovered drug proceeds gained by members of the alleged conspiracy.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department, Gang Violence Task Force and Special Investigations Division, the New York State Police, the U.S. Department of Homeland Security-ICE (Detention and Removal), the Onondaga County Sheriff’s Office, the Oneida County Sheriff’s Office, the City of Auburn Police Department, and the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Eighth Defendant Pleads Guilty in Tricare SchemeRead the Press Release
LITTLE ROCK—An eighth defendant has pleaded guilty in connection with a $12 million scheme to generate prescriptions for expensive compounded drugs paid for by TRICARE. Blake Yoder, 39, of Scott, entered his guilty plea Wednesday afternoon before United States District Judge Kristine G. Baker.
Yoder joins seven others who have pleaded guilty: Albert Glenn Hudson, 40, of Sherwood; Derek Clifton, 39, of Alexander; Donna Crowder, 66, of North Little Rock; Jennifer Crowder (formerly Bracy), 38, of Little Rock; Keith Benson, 50, of North Little Rock; Keith Hunter, 52, of Little Rock; and Angie Johnson, 49, of North Little Rock. Remaining defendants Joe David May a.k.a. Jay May, 40, of Alexander, and Kenneth Myers, Jr., 42, now of Alpharetta, Georgia, await trial on December 6, 2021, also before Judge Baker.
Charges were first filed in January 2020. A superseding indictment followed in September 2020. Hudson admitted paying Benson, Hunter, Johnson, Myers, and Yoder to recruit TRICARE beneficiaries to receive expensive compounded drugs and then paying Bracy and Clifton to get Crowder and May to rubber stamp medically unnecessary prescriptions. Hudson, Bracy, and Crowder admitted Crowder’s signature was secured by payments to her daughter (Bracy). Additionally, Clifton admitted giving cash to May in exchange for his signature, a fact also known to Hudson. After federal agents began investigating, Hudson and Clifton acknowledged helping Crowder and May fabricate medical records to make it seem as if patients were examined before receiving prescriptions.
May and Myers are charged with conspiracy, wire fraud, mail fraud, violating the anti-kickback statute, and lying to the FBI. May faces additional charges for falsifying records and aggravated identity theft, while Myers faces additional charges for witness tampering and obstruction of justice. An indictment contains only allegations; May and Myers are presumed innocent unless and until proven guilty.
All eight co-conspirators pleaded guilty to conspiring to violate the Anti-Kickback Statute, which is punishable by up to five years in federal prison, three years of supervised release, and a $250,000 fine. Together they agreed to forfeit over $3.2 million in illicit proceeds. Sentencing will follow at a later date.
Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, and Miranda Bennett, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services announced the guilty plea.
The investigation was conducted by the FBI and HHS-OIG. The case is being prosecuted by Assistant United States Attorney Alexander D. Morgan.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Deputy charged with two federal child pornography crimesRead the Press Release
COLUMBUS, Ohio – A Franklin County corrections officer has been charged federally with advertising for and receiving child pornography.
Daniel P. Heintz, 38, of Columbus, turned himself in this morning and will appear in federal court for an initial appearance at 2:15pm.
According to court documents, authorities were alerted to messages sent by Heintz on Kik Messenger in mid-August 2020. In the conversations, Heintz allegedly discusses with an Illinois man their mutual sexual interest for children, and exchanged images of themselves and of pornography, including child pornography. It is alleged Heintz received sexually explicit videos from the man of a girl 13 to 15 years old.
An affidavit details that Heintz allegedly discussed sexually abusing a minor to whom he had access. It is alleged he discussed photographing the minor in the victim’s sleep and also talked about sexual conduct he would commit as well as sexual abuse the Illinois man could commit to the minor victim.
On Feb. 11, law enforcement officials executed search warrants at Heintz’s residence and of his person at his place of employment, the Franklin County Correctional Center on S. Front Street.
A forensic examination of his electronics revealed what is alleged to be several hundred images of prepubescent minors, some as young as toddler age, engaged in explicit sexual conduct and being sexually abused.
Heintz is charged with advertising for and receiving child pornography. Advertising for child pornography is a federal crime punishable by a minimum of 15 and up to 30 years in prison. Receiving child pornography includes a sentencing range of five to 20 years in prison. If convicted, the crimes also carry a mandatory of at least five years and up to a lifetime of supervised release, and registration as a sex offender.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the charges. Assistant United States Attorneys Heather A. Hill and Emily Czerniejewski are representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Defendant Pleads Guilty to Wire Fraud and Felon in Possession of a FirearmRead the Press Release
Calvin Johnson, aka “Lakeshia Johnson” and “Keyshia Johnson,” pleaded guilty this morning in two criminal cases after committing wire fraud and possessing a firearm as a convicted felon, announced U.S. Attorney Trent Shores.
Johnson, 37, of Tulsa, pleaded guilty before Chief U.S. District Judge John E. Dowdell who set sentencing for May 26, 2021.
“Calvin Johnson used a position as a contractor at a bank’s call center to defraud and steal from customers,” said U.S. Attorney Trent Shores. “Technology rarely provides the ambiguity that criminals hope for and this case was no different. The diligent work of the FBI and the prosecutorial efforts of Assistant U.S. Attorney Rick Cella caught this white-collar criminal.”
In the plea agreement, Johnson admitted that from February to October 2018 she worked at Alorica, a call center contractor for Ally Bank. As part the job, Johnson had access to Ally Bank customer accounts and account information. Johnson devised and executed a scheme to defraud Ally Bank and its customers by using her account access to transfer money to accounts she owned or controlled to fund her own personal expenses. As a part of the scheme, she caused $7,000 to be transferred from an Ally Bank customer account to an account she controlled at City National Bank.
After being charged for wire fraud, Johnson was later encountered by law enforcement in Indiana on Sept. 2, 2020, in possession of a .45-caliber pistol and a 9mm semiautomatic pistol. In the plea agreement, Johnson admitted that she had been convicted of robbery in September of 2004; therefore, understanding that she was unlawfully possessing the firearms officers found on her on Sept. 2, 2020.
The FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
DS44 Gang Member Sentenced for Conspiring to Distribute Fentanyl and HeroinRead the Press Release
PITTSBURGH - A resident of McKees Rocks, Pennsylvania, has been sentenced in federal court to 46 months’ imprisonment and three years’ supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute a quantity of fentanyl and heroin, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Lamont Benton, age 24,.
According to information presented to the court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Benton was identified through wire interceptions as a member of DS44 and a mid-level distributor, and in connection with his guilty plea, he accepted responsibility for distributing 39 grams of a mixture containing fentanyl and heroin. Mr. Benton is one of 40 defendants charged in the case.
Prior to imposing sentence, Judge Stickman noted that Benton was serving three other sentences imposed in state court when he participated in the drug trafficking activity to which he had pleaded guilty. The court further highlighted that Benton had amassed a significant criminal history at age 24, and that, along with his otherwise positive qualities, were factors in the sentence he imposed.
Assistant United States Attorney Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal network.
Corning Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA—On February 19, 2021, Lonnie Ray Schafroth, age 54, of Corning, was sentenced by United States District Court Chief Judge John A. Jarvey to 65 months in prison, to be followed by five years of supervised release for receiving child pornography announced Acting United States Attorney Richard D. Westphal.
Microsoft provided law enforcement a cyber-tip that resulted in a search warrant served on Schafroth’s residence in Corning. The search resulted in the seizure of a computer which contained over 3,000 images of child pornography, many of which depicted children under the age of 12. Schafroth had obtained the images from searches conducted on the Internet between July of 2017 and June 12, 2019.
This matter was investigated by the Iowa Division of Criminal Investigation - Internet Crimes Against Children Task Force, Federal Bureau of Investigation, and the Adams County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Coralville Man Sentenced to Prison for Heroin and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On Tuesday, February 23, 2021, United States District Court Chief Judge John A. Jarvey sentenced Bryant Richard Smith, age 32, of Coralville, to 225 months in prison for Conspiracy to Distribute Methamphetamine and Heroin as well as 120 months in prison for Felon in Possession of a Firearm, announced Acting United States Attorney Richard D. Westphal. Those sentences were ordered to be served concurrently. Following his prison term, Smith was ordered to serve ten years of supervised release well as pay $200 to the Crime Victims’ Fund.
Smith was previously convicted of federal drug-related charges in 2013. He was serving a term of supervised release for the prior offense when he resumed methamphetamine, cocaine, and heroin trafficking. Chief Judge Jarvey ordered the term of release revoked and imposed a consecutive 36-month prison sentence for the violation. The total sentence is 261 months in prison.
This investigation began in approximately 2018 after Smith was released from custody for his prior federal conviction. Upon release, Smith manufactured and distributed “ice” methamphetamine, cocaine, and heroin. By 2019, a co-conspirator began to provide Smith money for investment into the illicit drug business. Smith’s co-conspirators took over part of the drug activities when Smith was arrested with drugs in July of 2019, and his term of supervised release from the 2013 case was revoked. Upon release from custody in October, Smith continued selling drugs. Then, in January of 2020, Smith purchased a Kel Tec Sub 2000, 9-millimeter caliber firearm in Iowa City. As a convicted felon, Smith is prohibited from owning or possessing firearms.
This matter was investigated by the Johnson County Drug Task Force and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Coralville Man Sentenced to Federal Prison for Drug Conspiracy and Possession of a FirearmRead the Press Release
DAVENPORT, Iowa — On Monday, February 22, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jeffrey Fitzgerald Goins, age 33, of Coralville, to 190 months in prison for conspiracy to distribute 500 grams or more of a mixture and substance containing detectable amounts of methamphetamine and 120 months imprisonment for felon in possession of a firearm announced Acting United States Attorney Richard D. Westphal. Following his prison terms, Goins was ordered to serve ten years of supervised release as well as pay $200 to the Crime Victims’ Fund.
Goins was previously convicted of federal drug charges in 2013. Goins was serving a term of federal supervised release for the prior offense when he participated in the methamphetamine conspiracy. Chief Judge Jarvey ordered the term of supervised release revoked and imposed a consecutive 30-month prison sentence for the violation. Goins’ total sentence is 220 months in prison.
This investigation began in 2019 when law enforcement learned Goins was a prominent supplier and distributor of drugs in the Johnson County area. Police determined Goins was involved in a conspiracy to disseminate drugs with codefendants Bryant Smith, Geneva Hudson, and others. Goins and Hudson distributed methamphetamine to law enforcement and Goins was caught with a firearm when he was arrested in February of 2020. Goins, a prior felon, was prohibited from owning or possessing firearms.
This matter was investigated by the Johnson County Drug Task Force and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon on Probation Sentenced on Drug Trafficking and Firearm ChargesRead the Press Release
PROVIDENCE – A Providence man arrested by members of the FBI Safe Street Task Force on federal drug trafficking and firearm charges while he was serving a term of state probation for illegally possessing a firearm in an unrelated matter has been sentenced to 10 years in federal prison.
During a series of wide-ranging Project Safe Neighborhoods drug trafficking investigations, members of the Safe Street Task Force (SSTF) developed information that Carlos Jojamis Gonzalez Nevarez, 26, was trafficking heroin, cocaine, and fentanyl, all while he was using the residence of another person as a stash house.
According to information presented to the court, beginning in September 2019, SSTF agents and officers arranged for what would be the first in a series of five controlled purchases of narcotics from Gonzalez Nevarez. The transactions occurred while Gonzalez Nevarez was under surveillance by law enforcement. In total, Gonzalez Nevarez sold approximately 111 grams of a mixture or substance containing fentanyl and 50 grams of cocaine.
On November 19, 2019, members of the SSFT executed a court-authorized search of Gonzalez Nevarez’s home and the stash house he maintained on Douglas Avenue, the home of his friend, also arrested in this operation, Richard Rivera Disla. The FBI seized a loaded .45 caliber pistol, and $2,056 in cash from Gonzalez Nevarez’s home and 520.80 grams of fentanyl and 12.58 grams of cocaine from the stash house.
According to a plea agreement filed with the court, Rivera Disla has agreed to plead guilty to possession with intent to distribute a substance containing fentanyl.
Gonzalez Nevarez appeared before U.S. District Court Chief Judge John J. McConnell, Jr., on October 7, 2020, and pled guilty to one count of distribution of cocaine, four counts of distribution of fentanyl, possession with intent to distribute fentanyl, and felon in possession of a firearm.
Gonzalez Nevarez was sentenced on February 11, 2021, to 120 months in federal prison to be followed by five years federal supervised release, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case was prosecuted by Assistant United States Attorneys Stacey P. Veroni and Gerard B. Sullivan.
Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Providence, Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
###
Convicted Felon from Montgomery Sentenced for Possessing a Modified AK Style PistolRead the Press Release
Montgomery, Alabama – On Tuesday, February 23, 2021, Legestin Richards, a 27-year-old man from Montgomery, Alabama, was sentenced to 136 months in prison for being a felon in possession of a firearm and possessing an illegally modified handgun, announced U.S. Attorney Louis V. Franklin, Sr. In addition to his prison sentence, Richards was ordered to serve three years of supervised release. There is no parole in the federal system. The sentence comes after a trial back in October of 2020 when a jury found Richards guilty of the two charges.
Evidence presented at Richards’ trial showed that, on March 2, 2018, the Montgomery Police Department executed a search warrant at his residence. Officers told the jury that during the search they found a variety of illegal drugs, including marijuana and oxycodone, and three handguns. Officers also testified about finding various drug paraphernalia, including digital scales used to measure drugs for sale. Among the firearms found at Richards’ residence, was an Inter Ordinance Inc., model M214 Nano, 7.62 caliber handgun. This “AK” style pistol had a vertical foregrip installed. This type of modification requires that it be registered in the National Firearms Registration and Transfer Record. However, Richards, who has previous felony convictions and is prohibited from possessing a firearm, had not done so. After hearing the evidence presented at trial, the jury found Richards guilty of being a felon in possession of a firearm and possessing a modified and unregistered handgun.
During his sentencing hearing, the Government presented evidence concerning Richards’ involvement with the Black Disciples, a street-gang based in Chicago, as well as evidence that Richards was illegally selling guns.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department investigated this case, with assistance from the United States Marshals Service, the Drug Enforcement Administration, the Alabama Department of Forensic Sciences, and the Montgomery County Sheriff’s Office. Assistant United States Attorneys Kevin Davidson and Mark Andreu prosecuted the case.
Coffee County man pleads guilty to methamphetamine distributionRead the Press Release
BRUNSWICK, GA: A Coffee County man faces up to 20 years in federal prison after admitting to distribution of methamphetamine.
Demetrius Brown, a/k/a “Jersey,” 42, of Douglas, Ga., pled guilty in U.S. District Court in Brunswick before Judge Lisa Godbey Wood to one count of Distribution of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Brown’s admission to the charge carries a possible penalty of up to 20 years in prison, followed by at least three years of supervised release. There is no parole in the federal system.
“Our law enforcement partners did outstanding work in uncovering and shutting down Demetrius Brown’s poison pill factory,” said Acting U.S. Attorney Estes. “We applaud their work in eradicating the illegal drug trade in our community.”
Brown previously has been convicted of multiple felonies, including assault on a law enforcement officer and drug distribution on school property – all occurring in New Jersey prior to his relocation to south Georgia.
The investigation of Brown began in 2019 when the Coffee County Drug Unit determined Brown was selling pills purportedly containing ecstasy. Law enforcement conducted two controlled purchases before executing a search warrant at Brown’s home, discovering a pill press, other materials used for manufacturing methamphetamine pills, and four firearms.
“We hope the conviction of Demetrius Brown will serve as a major wake-up call to those attempting to manufacture and distribute illegal drugs in Coffee County,” Sheriff Doyle Wooten stated. “We are actively partnering with state and federal officials and law enforcement agencies to aggressively target the sources of drug distribution in our area, and we will prosecute these cases to the fullest extent the law allows.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Coffee County Sheriff’s Office and the Coffee County Drug Unit, and prosecuted for the United States by Assistant U.S. Attorney John P. Harper III.
Clinton Man Sentenced to Prison for Methamphetamine ChargesRead the Press Release
DAVENPORT, Iowa — On Tuesday, February 23, 2021, United States District Court Chief Judge John A. Jarvey sentenced Shayne Russell Cox, age 33, of Clinton, to 120 months in prison for conspiracy to manufacture, distribute, and possess with intent to distribute methamphetamine, announced Acting United States Attorney Richard D. Westphal. Following his prison term, Cox was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
An investigation revealed beginning in 2015, Shayne Cox and other co-conspirators knowingly agreed to manufacture, distribute, and possess with intent to distribute “ice” methamphetamine. The conspiracy involved multiple kilograms of ice. In furtherance of this drug conspiracy, Cox regularly obtained large quantities of methamphetamine from individuals in Arizona and arranged for its transportation to Clinton. The supplier was suspected of having direct ties to Mexico.
This matter was investigated by the Drug Enforcement Administration and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Canadian National Pleads Guilty to Human Smuggling ConspiracyRead the Press Release
A Canadian national pleaded guilty today to conspiracy to bring aliens to the United States for private financial gain in connection with his role in a scheme to smuggle aliens from Sri Lanka through the Caribbean and into the United States.
As part of the plea, Sri Kajamukam Chelliah, aka Mohan, aka Richie, 55, of Sri Lanka, admitted to conspiring with others to facilitate the travel of aliens from Sri Lanka through Haiti, Turks and Caicos Islands, and the Bahamas to the United States from on or about July 1, 2019 through on or about Oct. 10, 2019. During the course of the conspiracy, Chelliah worked with other human smugglers, arranging housing and transport for illegal aliens en route to Canada through the United States. Sentencing will be scheduled at a later date.
“By participating in a smuggling operation which planned to illegally transport individuals through various countries, including the United States, the defendant jeopardized the national security of the United States for his own financial benefit” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the Criminal Division is committed to working with our law enforcement partners both here and abroad to bring human smugglers to justice and to disrupt and dismantle the international networks they operate.”
Chelliah arranged for the individuals to be transported from the airport in Port Au Prince, Haiti, to a hotel where Chelliah housed and provided them with food. Chelliah then arranged for transportation by boat from Haiti to Turks and Caicos Islands, then to the Bahamas, and then by boat to Miami, Florida. Chelliah accompanied the individuals, including traveling with them by boat during their journey. The actions undertaken by Chelliah and co-conspirators in furtherance of their smuggling activities were done in exchange for payment.
Specifically, Chelliah further admitted as part of the plea that from approximately October 2017 to approximately September 2019, six Sri Lankan nationals with no legal right to come to, enter, or reside in the United States, travelled from Sri Lanka to Haiti with the assistance of human smugglers. Upon arrival in Haiti, Chelliah arranged for the six individuals to be picked up at the airport and taken to a hotel. Chelliah arranged for the individuals to be housed and fed at the hotel, then travel by boat from Haiti to Turks and Caicos Islands and from Turks and Caicos Islands to the Bahamas. The six aliens would then travel from the Bahamas to Miami, Florida, by boat.
According to the plea agreement, on Oct. 10, 2019, the six aliens, accompanied by Chelliah, boarded a Haitian sloop sailboat heading for Turks and Caicos Islands. The Haitian sloop sailboat carrying approximately 154 aliens, including Chelliah, was subsequently interdicted by Turks and Caicos authorities. Chelliah was arrested and ultimately convicted in Turks and Caicos on local immigration charges and sentenced to 12 months imprisonment. Following the completion of his prison sentence, he was placed in immigration detention in Turks and Caicos.
Chelliah was later arrested on July 28, 2020, by Turks and Caicos authorities, based on a provisional arrest request submitted by the United States premised on a sealed U.S. criminal complaint. He consented to extradition and, on Aug. 15, 2020, the Governor of Turks and Caicos issued an order allowing the extradition to the United States. Chelliah was extradited to the United States on Aug. 17, 2020, and the criminal complaint was unsealed at his initial appearance on the same date.
This case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit and U.S. Customs and Border Protection (CBP). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The case is being prosecuted by Trial Attorneys Rami S. Badawy and John Alex-Romano of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida, with support from HRSP Trial Attorney Jim Hepburn. The Justice Department’s Office of International Affairs provided significant assistance in the investigation and in securing the defendant’s extradition to the United States. The Department of Justice gratefully acknowledges the government of Turks and Caicos Islands for their valuable assistance.
Brian G. Lizama Sentenced to Prison for Identity Theft SchemeRead the Press Release
Saipan, MP – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Brian Galang Lizama, age 49, was sentenced in the United States District Court for the Northern Mariana Islands to 24 months imprisonment for Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a)(1). The Court also ordered Lizama to pay $30,850 in restitution, serve one year of supervised release following imprisonment, perform 50 hours of community service, and pay a mandatory $100 special assessment fee.
During December 2019, Lizama obtained a copy of his brother’s birth certificate from the Commonwealth Healthcare Corporation on Saipan. He used the certificate to obtain an identification card in his brother’s name from the Saipan Mayor’s Office. Lizama then used the identification card to make $30,850 in withdrawals from his brother’s Bank of Guam savings account. Lizama’s brother discovered the theft upon later checking the balance of his savings account by phone.
U.S. Attorney Anderson stated, “Theft scams occur by many methods, including the unlawful use of identity documents. The substantial loss in this matter warranted federal prosecution. The public is urged to take precautions with their personal information and regularly monitor their financial accounts to combat this activity. If someone suspects they may be a victim of identity theft, they should contact law enforcement immediately. Additional assistance may be obtained at IdentityTheft.gov or by calling the Federal Trade Commission at (877) 438-4338.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the CNMI Department of Public Safety. The case was prosecuted by Garth R. Backe, Assistant United States Attorney in the District of the Northern Mariana Islands.
Bremerton, Washington, man charged federally for possession of unregistered destructive devicesRead the Press Release
Tacoma – A 27-year-old Bremerton, Washington, man is now charged federally for possessing Molotov cocktails–unregistered destructive devices–following a traffic stop last December, announced U.S. Attorney Brian T. Moran. DEVAN LEE KLUGE was stopped by Bremerton Police the evening of December 24, 2020, due to an outstanding warrant. The Molotov cocktails were found in KLUGE’s vehicle’s trunk. KLUGE has been in state custody since his arrest. He will make his initial appearance on the federal charge tomorrow (2/25) at 2:30 p.m. in U.S. District Court in Tacoma.
According to records filed in the case, a Bremerton Police Department officer recognized KLUGE as someone being sought on an escape warrant from the Washington State Department of Corrections. KLUGE was removed from his car, and he gave permission for officers to search the vehicle. Inside, officers found three glass jars containing diesel fuel with apparent cloth wicks—devices commonly referred to as “Molotov cocktails,” which are destructive devices under federal law. In addition to those destructive devices, law enforcement found brass knuckles, a crowbar, bolt cutters, a sledgehammer, walkie-talkie radios, and white plastic full-face masks.
Possession of an unregistered destructive device is punishable by up to ten years in prison.
The charges contained in the complaint 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 Bremerton Police Department with assistance from the FBI and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The case is being prosecuted by Assistant United States Attorney Will Dreher.
kluge_complaint.pdfBox Elder man admits assaulting woman on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man today admitted allegations that he assaulted a woman, causing serious injuries, on the Rocky Boy’s Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Kelcey James Morsette, 31, pleaded guilty to assault resulting in serious bodily injury. Morsette faces a maximum 10 years in prison, a $250,000 fine, and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 2. Morsette was detained.
The prosecution said in court documents that on Nov. 14, 2019, Morsette was highly intoxicated and belligerent. Morsette argued with the victim, identified as Jane Doe, before becoming angry and attacking her. Doe sustained serious injuries from the assault and was hospitalized for her injuries. The assault occurred on the Rocky Boy’s Indian Reservation.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI and Rocky Boy’s Police Department Criminal Investigations.
XXX
Belmont County man sentenced for firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Ricky Runner, of Martins Ferry, Ohio, was sentenced today to 51 months of incarceration for a firearms violation, United States Attorney Bill Powell announced.
Runner, age 34, pled guilty to one count of “Unlawful Possession of a Firearm” in November 2020. Runner, a person prohibited from having firearms, admitted to possessing a .40 caliber pistol in Marshall County in October 2018.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Arizona man who provided drugs that led to an overdose death in Park County sentenced to 12 years in prisonRead the Press Release
BILLINGS – An Arizona man who admitting providing methamphetamine and heroin to a friend, who overdosed and died from the drugs, was sentenced today to 12 years in prison and to three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Brandon Thomas Houdashelt, 33, of Goodyear, Arizona, pleaded guilty on Sept. 29, 2020 to possession with intent to distribute controlled substances.
U.S. District Judge Susan P. Watters presided. Houdashelt was detained.
According to court documents filed by the prosecution, on Nov. 3, 2018, Houdashelt was at the residence of two of his friends in Park County. Houdashelt had brought with him methamphetamine and heroin. He loaded a syringe with a combination of methamphetamine and heroin for himself and his two friends. One of his friends overdosed and died from the drugs. Law enforcement and medical personnel responded to the residence. An investigation determined that Houdashelt had been distributing methamphetamine and heroin to multiple people in the days between Nov. 1, 2018 and Nov. 4, 2018. Multiple drug users stated that Houdashelt was a drug dealer and described seeing Houdashelt in that time frame with a backpack containing methamphetamine and heroin, and to being provided with drugs by Houdashelt.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Anchorage Man Convicted of Attempted Sexual Exploitation of a MinorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Federal District Court Judge Sharon L. Gleason has found Eric Larsen, 51, of Anchorage, guilty of attempted sexual exploitation of a minor, coercion and enticement.
Larsen faces a penalty of not less than 10 years and up to life in prison, a fine of $250,000, and a life term of supervised release.
According to evidence presented at trial, Detectives assigned to the Anchorage Police Department (APD) Crimes against Children Unit (CACU) received a report of that Larsen solicited a 13-year-old girl for oral sex and had exposed himself to her.
APD Detectives assumed the identity of the girl and continued to communicate with Larsen. Larsen used text messages and phone calls to negotiate a time and place to meet with the girl, for the purpose of engaging in sexual intercourse. On Feb 14, 2019, Larsen arrived at a prearranged location. Instead of meeting the girl however, Larsen was met by APD officers and was arrested. At the time of his arrest, Larsen was found to be in possession of condoms, personal lubricant, a vibrator, methamphetamine, a glass pipe, and a loaded handgun.
The Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Adam Alexander and Assistant U.S. Attorney James Klugman.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
23 February 2021
West Virginia Man Sentenced to Prison for Drug Crime and Violation of Supervised ReleaseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Jay James Fields, 38, was sentenced to a total of 57 months in prison for possession with intent to distribute methamphetamine and heroin and violating his supervised release.
“Fields was still on supervised release from a previous conviction when he was found with 37 grams of meth and 3.5 grams of heroin in his car,” said United States Attorney Mike Stuart. “He will now be headed back to prison for nearly five more years.”
Fields previously pled guilty and admitted that on June 12, 2020, officers searched his vehicle and found approximately 37 grams of methamphetamine and 3.5 grams of heroin. He admitted he intended to sell these substances. Fields was on supervised release when he committed the drug offense. Fields was sentenced to 33 months for the drug offense, and in a separate proceeding, he was sentenced to 24 months in prison for violating his supervised release. The sentences were ordered to run consecutively to one another for a total of 57 months in prison.
The Logan County Sheriff’s Department conducted the investigation. Senior United States District Judge David A. Faber imposed the sentences. Assistant United States Attorney Stephanie Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00149.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Upshur County woman admits to meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ashley Nichole Bennett, of Buckhannon, West Virginia, has admitted today to a drug charge, U.S. Attorney Bill Powell announced.
Bennett, 34, pled guilty today to one count of “Distribution of Five Grams or More of Methamphetamine.” Bennett admitted to selling more than five grams of methamphetamine, also known as “crystal” and “ice,” in January 2020 in Harrison County.
Bennett faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Attorney Resignation AnnouncementRead the Press Release
BISMARCK: Earlier today in brief letter to President Biden, United States Attorney Drew Wrigley resigned his office, effective February 28, 2021. Wrigley is the 19th Presidentially appointed United States Attorney in North Dakota history, and has been serving since being confirmed by the United States Senate in April of 2019. He previously served as the 17th United States Attorney, from 2001-2009.
Mr. Wrigley has served as United States Attorney for a combined total of ten years, and is the only North Dakotan to have been twice presidentially appointed United States Attorney and confirmed by the United States Senate.
The Department of Justice informed our office that, effective upon Mr. Wrigley’s resignation, current First Assistant United States Attorney Nick Chase will serve as the Acting United States Attorney, under the Vacancy Reform Act. Acting United States Attorneys serve until such time as a new United States Attorney is nominated by the President and confirmed by the United States Senate. Mr. Chase is an honors graduate of Minot State University, and the University of North Dakota Law School. He served two federal judicial clerkships, for United States Magistrate Judge Karen Klein and United States Circuit Court Judge Myron Bright, worked in private practice in the Fargo-Moorhead area, then Minneapolis, before he was hired in 2002 as an Assistant United States Attorney in Fargo
Statement of United States Attorney Drew Wrigley:
My heart is full of gratitude for having had the opportunity to serve my nation and state as United States Attorney. I thank each of the federal, state, local, and tribal law enforcement agencies, and the full array of government agencies and private stakeholder groups that strengthen the efforts of our office’s Civil and Criminal Divisions. I offer a special thanks to each individual or entity who has cooperated with our investigations or civil suits, especially the victims of crime. It has been a privilege to help shoulder the trust you placed in the United States Attorney’s office.
I thank President George W. Bush for first appointing me United States Attorney in 2001, and I appreciate the willingness of then-Senators Kent Conrad and Byron Dorgan to assist my unanimous confirmation in the United States Senate. I thank President Donald J. Trump for again appointing me United States Attorney in 2019, and I deeply appreciate the work of Senators John Hoeven and Kevin Cramer to secure my nomination and unanimous confirmation vote. They and their extraordinary staff were steadfast.
It has been my profound honor to serve with the civil division, criminal division, and administrative staff of the United States Attorney’s office. These men and women are dedicated, ethical public servants, and they are patriots who love our nation. We shared the privilege of pursuing justice every day, and I am so fortunate to have been able to serve as their colleague and leader.
Together, our office made tremendous progress on priorities like civil rights, violent crime, financial crime, Internet crimes against children, civil litigation defense of the United States, gun crimes, and narcotics trafficking on our Native American reservations. Internally as an office, we made tremendous strides on budget reprioritization, attorney and non-attorney hiring practices, transparency, salary structure and advancement, and the year-long battle with the COVID19 pandemic, during which we experienced no community spread in either of our two staffed offices.
Special thanks is also due for my family, dear friends, and closest associates. Their love, their support, and their constructive criticism have made the hard work and difficult decisions possible. They have also made every bright day even brighter.
It is with a deep sense of love and appreciation that I announce my departure as the United States Attorney. It has been the professional honor of my lifetime to stand before federal courts and begin the proceedings with these words: "Thank you, your honor; Drew Wrigley for the United States." Today and always, I offer my profound thanks to all who allowed me to share their journey."
#####
United States Attorney Brian J. Kuester Announces Submission of ResignationRead the Press Release
MUSKOGEE, OKLAHOMA – Today United States Attorney Brian J. Kuester announced that he has submitted his resignation to President Biden, to be effective 11:59 PM on February 28, 2021. It is customary for newly elected presidents to ask for the resignations of United States Attorneys appointed by the previous administration. Kuester was nominated by President Trump and confirmed by the United States Senate in 2017. He took office on September 25, 2017. Immediately prior to his appointment, he was serving his second term as District Attorney for Oklahoma’s 27th District, which serves Adair, Cherokee, Sequoyah, and Wagoner Counties.
As the United States Attorney, Kuester served as the chief federal law enforcement officer in the Eastern District of Oklahoma and was thereby responsible for all federal criminal prosecutions and civil litigation involving the United States in the district. Twenty-six of Oklahoma’s counties are within the Eastern District as well as the headquarters of each of the Five Civilized Tribes – the Cherokee, Chickasaw, Choctaw, Muscogee (Creek), and Seminole Nations.
During his term, Kuester led the United States Attorney’s Office through several unprecedented challenges, including the longest federal government shutdown in history, a worldwide pandemic, and the impact of the U. S. Supreme Court’s landmark decision, McGirt v. Oklahoma. Despite these extraordinary circumstances, the office indicted more cases and defended more cases in which the United States had an interest than it had in previous administrations.
“I am proud of the quality and quantity of the work our office has accomplished. We have made the Eastern District a safer place to live, work, and raise a family, and protected the interests of the United States. But I am more proud that we accomplished this work by adherence to the enduring core values of the Department of Justice – Equal Justice Under the Law; Honesty and Integrity; Commitment to Excellence; and Respect for the Worth and Dignity of Each Human Being – and a renewed emphasis on our working relationships with federal, state, and tribal law enforcement agencies,” said Kuester. “Our relationships with our law enforcement partners have never been stronger. We have seen unprecedented team work by the law enforcement community serving the people of this district.”
Although the McGirt decision was decided in July 2020, the full impact of the decision has not yet been felt. It is anticipated decisions by the Oklahoma Court of Criminal Appeals in the coming weeks may extend the rationale of the McGirt decision, which currently applies only to the Muscogee (Creek) Nation, to the remaining four of the Five Civilized Tribes. If that occurs, the entire Eastern District will be recognized as Indian Country, greatly expanding federal criminal jurisdiction. The United States Attorney’s Office has been a leader in preparing the district for that potential. The re-recognition of the Muscogee (Creek) Nation has led to over a 1,500% increase in Violent Crime in Indian Country matters referred to the U.S. Attorney’s Office in the seven months since the decision.
“We have worked closely with federal, state, and tribal agencies to prepare for the exponential increase in criminal cases over which the federal government will have primary jurisdiction. We have offered training on Indian Country Jurisdiction throughout the district; we have restructured our office – historically one of the smallest U.S. Attorney’s Office in the country – to better manage the drastic caseload increase; we have worked closely with the FBI to streamline the case intake process; we have transparently shared and received information with our law enforcement partners; and we have indicted many more defendants than ever before in such a short period of time,” said Kuester. “The response by the men and women in this office and the Federal Bureau of Investigation has been nothing short of heroic. I am not surprised by that, it’s what I have come to expect of them. I have no doubt that great service will continue.”
By virtue of the Vacancies Reform Act, Christopher J. Wilson, the current First Assistant United States Attorney, will serve as the Acting United States Attorney upon Kuester’s departure from the office.
“I am thankful to President Trump, Senators Inhofe and Lankford, and other members of the Senate for entrusting me with this office and the sacred mission it is responsible for,” said Kuester. “As I drive away from the office for the final time I’ll do so with the utmost confidence, trust, and respect for the men and women who will continue to carry out the most vital roles in government – upholding the Constitution, the administration of justice, and protecting the fiscal interests of our great Nation. Having had an opportunity to work alongside them in that very important work for nearly 3 ½ years has been the highlight of my professional career.”
U.S. Attorney's Office Settles Service Animal Dispute with Haddam RestaurantRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Brookside Bar and Grill in Haddam to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities who relies on a service animal and who was a patron of the restaurant. The complainant alleged that the restaurant asked her to show identification for the services animal and, on one occasion, asked her to leave the restaurant because of her service animal.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability. The ADA requires that a public accommodation, such as a restaurant, modify its policies, practices, or procedures to permit the use of a service animal by an individual with a disability.
Service animals are defined as dogs that are individually trained to do work or perform tasks for people with disabilities. The ADA requires restaurants and other places of public accommodation to permit individuals with disabilities to be accompanied by their service animals in all areas of the place of public accommodation where members of the public, customers, patrons or invitees are allowed to go.
The settlement agreement requires the Brookside Bar and Grill to permit service animals in all areas of the restaurant that members of the public and other patrons are permitted. Additionally, the restaurant will post signage indicating “Service Animals Welcome,” will implement a “Service Animal Policy,” and will train its managers and employees regarding the policy.
The ADA authorizes the U.S. Department of Justice to investigate complaints of disability discrimination and to undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the owners and operators of the Brookside Bar and Grill have worked cooperatively with the U.S. Attorney’s Office to address the matters raised in the complaint without the need for litigation.
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses of the District of Connecticut.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities or does not permit service animals may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
U.S. Attorney Peter McCoy Announces ResignationRead the Press Release
Charleston, South Carolina – United States Attorney for the District of South Carolina Peter M. McCoy, Jr., has announced that he will be resigning as U.S. Attorney effective 11:59 p.m. on February 28, 2021.
“It has been the honor of my lifetime to serve our great nation and our beloved State of South Carolina as United States Attorney,” said U.S. Attorney McCoy in a resignation letter to the President. “Working daily with the dedicated public servants of this office to impartially enforce the rule of law, defend our Constitution, and make our communities safer is a privilege for which I will be forever grateful.”
U.S. Attorney McCoy began his service as U.S. Attorney on March 30, 2020, being first appointed Interim U.S. Attorney and then receiving unanimous confirmation by the Senate. Before being sworn in as U.S. Attorney, he served as the Chairman of the Judiciary Committee in the South Carolina House of Representatives and as an attorney in private practice. Prior to his time in private practice, U.S. Attorney McCoy served for five years as a criminal prosecutor in the Ninth Circuit Solicitor’s Office.
As the chief federal law enforcement officer responsible for federal criminal prosecutions and civil litigation involving the United States in the District of South Carolina, U.S. Attorney McCoy led the district of approximately 62 Assistant United States Attorneys, 75 support staff, and 18 contract support staff in four divisions across four offices throughout the state.
Under U.S. Attorney McCoy’s direction and in spite of a pandemic, the office used focused efforts to make quality cases and targeted fraud, civil wrongdoing, and criminal activity related to the coronavirus; attacked public corruption; fought to keep South Carolina communities safe from gun crimes, violence, and drugs; prosecuted substantial healthcare fraud; placed renewed emphasis on eradicating human trafficking and child exploitation; protected the Constitutional rights of South Carolinians; defended civil lawsuits filed against the United States and its federal agencies; and enhanced partnerships with local, state, and federal law enforcement agencies.
Among other things, these efforts made communities across South Carolina safer and resulted in charges and convictions against hundreds of defendants. The office also collected more than $54 million for taxpayers in 2020 alone. Of this amount, $49,000,580.36 was collected in civil actions and $4,839,347.03 was collected in criminal actions. Working with partner agencies and divisions, the office also collected $2,544,402 in asset forfeiture actions.
“Pandemic or not, there was no safe harbor in South Carolina for those who violated federal law on my watch,” said U.S. Attorney McCoy. “This is because the men and women of this office across our criminal, civil, appellate, and administrative divisions, along with our law enforcement partners, worked tirelessly to pursue justice for the people of South Carolina.”
CORONAVIRUS FRAUD
Almost immediately after assuming office, U.S. Attorney McCoy established the South Carolina COVID Strike Team – consisting of over a dozen federal, state, and local law enforcement agencies – to civilly and criminally investigate coronavirus fraud schemes, hoarding, and price gouging activities. The team has reviewed more than 150 matters to date, identified more than $12 million in pandemic-related fraud losses, and recovered more than $3 million in assets.
In one of these matters, seven individuals were charged with laundering over $750,000 of fraudulently obtained funds, including over $390,000 from a Paycheck Protection Program loan. It marked the 50th PPP-fraud case in the country and identified over $2.1 million in funds which agents seized from twelve different bank accounts.
PUBLIC CORRUPTION AND CORPORATE ACCOUNTABILITY
U.S. Attorney McCoy has focused resources and efforts on prosecuting those who seek to enrich themselves on the backs of South Carolina taxpayers or those who use their positions of trust to engage in criminal activity.
Chief among these cases are those stemming from an exhaustive and joint investigation into issues surrounding the construction of the V.C. Summer Nuclear Station, including admissions in court documents that officials conspired with others to lie about the progress of the V.C. Summer Nuclear Station so the SCANA Corporation (SCANA) could wrongly increase rates on hard-working South Carolinians and qualify for up to $1.4 billion in tax credits.
Specifically, Kevin B. Marsh, former SCANA Chief Executive Officer and former Chairman of its Board of Directors, signed a plea agreement and is scheduled to plead guilty on Wednesday, February 24, in federal court to conspiracy to commit mail and wire fraud. Additionally, Stephen A. Byrne, former Executive Vice President of SCANA, pled guilty in federal court in July 2020 to conspiracy to commit mail and wire fraud under a plea agreement requiring him to cooperate with law enforcement officials. The agreements to date also include a requirement that Dominion Energy will, over time, provide at least $4 billion in South Carolina ratepayer relief.
Additionally, the office’s civil division worked with the Securities and Exchange Commission to settle a lawsuit against SCANA and its subsidiary SCE&G charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned. The proposed settlement would require SCANA to pay a $25 million penalty and require SCANA and SCE&G to pay $112.5 million in disgorgement plus prejudgment interest.
The office has also brought charges, or obtained convictions, in numerous other public corruption matters, including the arrest of a high-ranking police officer for obstructing justice and operating an illegal gambling ring, the arrest of a county councilman for making material false statements in connection to the attempted acquisition of a firearm, the arrest of two individuals for conspiracy to steal personal protective equipment from the Federal Law Enforcement Training Center where they were employed, and a federal prison sentence for a former police chief for stealing seized funds.
GUNS/DRUGS/VIOLENCE
One of the primary goals of the U.S. Attorney’s Office is to improve the safety and quality of life for the people of South Carolina. During U.S. Attorney McCoy’s tenure, the office specifically and methodically targeted serious gun crimes, drug activity, and violence.
In December 2020, a federal grand jury returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history. The indictment alleges a sprawling criminal enterprise whereby inmates within the South Carolina Department of Corrections orchestrated crimes including murder, kidnapping, firearms distribution, and an international drug operation, often by using contraband cell phones.
The office has also led the way in targeting serious firearms offenses through violent-crime proactive efforts from federal, state, and local agencies. Of the nearly 100 judicial districts across the country, the U.S. Attorney’s Office for the District of South Carolina was among the top ten offices for the number of defendants who received sentences of five years or more for firearms-related charges. Further, more than 50% of the defendants charged with firearms-related offenses in the District of South Carolina received sentences of at least five years or more, putting the office among the top U.S. Attorney’s Offices in the country. Such sentences also show the significant, long-term impact each case can have on the safety of affected communities.
Further, the office also executed numerous takedowns of alleged violent drug gangs after extensive and multi-year investigations targeting the worst types of offenders. This included the arrests of more than 100 defendants across at least seven major takedowns in the last 12 months alone:
- 48 members of three distinct alleged drug trafficking organizations in the Midlands region;
- 23 members of an alleged drug trafficking organization in Horry County;
- 18 members of an alleged drug trafficking organization in the Myrtle Beach area;
- 12 members of an alleged drug trafficking organization in the Lowcountry region; and
- 10 members of an alleged drug trafficking organization in Chesterfield County.
Additionally, 13 members of a large methamphetamine trafficking conspiracy that operated out of Georgia and the Upstate region received a combined sentence of 145 years. Hundreds of firearms and hundreds of kilograms of illegal narcotics were seized because of these operations. These major operations also join the numerous other arrests and convictions of alleged violent drug dealers, including lengthy sentences for individuals who sold drugs resulting in deaths, and federal charges against two men for their roles in a drug conspiracy and the murder of a postal employee while on her mail route.
HEALTHCARE FRAUD
In light of the pandemic, healthcare fraud was a major focus for U.S. Attorney McCoy. The office handled numerous healthcare fraud matters in both the criminal and civil divisions that resulted in millions of dollars in recovered federal funds.
U.S. Attorney McCoy led the office as it worked with the U.S. Attorney’s Office for the Southern District of Georgia to federally charge more than 40 individuals for their roles in in Operation Rubber Stamp, an expansive health care fraud scheme across South Carolina and Georgia resulting in hundreds of millions of dollars in fraudulent billings. The charges marked the third in a nationwide series of telemedicine fraud prosecutions, which began through investigative efforts out of the District of South Carolina. Working cooperatively with other federal districts and the Department of Justice’s Health Care Fraud Strike Force, cases have been brought in over 20 Districts across the country, resulting in over 175 individuals being charged and/or convicted, with over a billion dollars in restitution.
Additionally, the Centers for Medicare and Medicaid Services/Center for Program Integrity separately took the largest number of adverse administrative actions resulting from a single administrative health care fraud investigative initiative in history in revoking the Medicare billing privileges of over 250 additional medical professionals for their involvement in telemedicine schemes. The District of South Carolina alone has ensured that millions of dollars have been returned, or will be returned, to these essential health care programs.
HUMAN TRAFFICKING AND CHILD EXPLOITATION
Having fought against human trafficking and child exploitation as a member of the South Carolina House of Representatives, U.S. Attorney McCoy has substantially built upon the office’s work to fight child exploitation and human trafficking. Under U.S. Attorney McCoy, the office has prosecuted some 50 defendants in trafficking or child exploitation cases and assisted more than 100 victims in the past twelve months alone. The cases include a nine-victim trafficking case out of Columbia, a multistate case involving the exploitation of a minor over the internet, and allegations against a husband and wife out of Anderson for child sex trafficking.
For the first time in the District of South Carolina, under U.S. Attorney McCoy’s leadership, the office prosecuted the patrons of human trafficking organizations along with the traffickers themselves.
These cases have required a proactive approach, and thus the office has also worked extensively with law enforcement partners to help identify the signs of human trafficking and child exploitation. Further, the office’s victim-witness advocates have worked extensively with the victims in these cases, as they do with victims of all federal crimes. To assist in these efforts, the State of South Carolina received $500,000 in Department of Justice grants to provide safe, stable housing and appropriate services to victims of human trafficking. These funds were in addition to the more than $33 million in Department of Justice grants to assist victims in the District of South Carolina under U.S. Attorney McCoy’s leadership.
PROTECTING CONSTITUTIONAL RIGHTS
U.S. Attorney McCoy has ensured that the office continues to protect the rights of all South Carolinians. This includes resolving several civil matters alleging that citizens of South Carolina have had their rights violated in areas ranging from education to housing. During the protests last spring across the country and after the recent protests in Washington, D.C., U.S. Attorney McCoy made clear that his office would always preserve First Amendment rights to free speech and assembly while also protecting South Carolina communities from violence and destruction and assisting in the prosecution of those who disregard the rule of law. In September 2020, the office charged several individuals with federal charges for participating in actions including arson, inciting riots, and other civil disorder in Columbia and Charleston on May 30 and 31, 2020. The office has also made substantial efforts toward identifying, and assisting in the prosecution of, those who invaded the U.S. Capitol on January 6, 2021.
SUPPORTING LAW ENFORCEMENT
As U.S. Attorney McCoy noted in his resignation letter, his success as U.S. Attorney is directly attributable to his office’s extensive work with federal, state, and local partners. Across the state, South Carolina has seen firsthand the exceptional work and bravery of its law enforcement community, and unfortunately witnessed several tragedies. Since U.S. Attorney McCoy took office, more than a dozen law enforcement officers have made the ultimate sacrifice and several others have been wounded in the line of duty. U.S. Attorney McCoy has remained committed to doing everything in his office’s power to ensure its law enforcement partners have the best training, resources, and support – including mental health support – to keep them safe.
In pursuit of those efforts, the office has worked the Department of Justice to make more than $16 million available to law enforcement agencies and public safety programs in South Carolina. This includes a $4.5 million grant to fight and prevent violent crime, $8 million to hire 63 additional full-time law enforcement professionals, and $2 million in grants to fund crime laboratories and other forensic needs.
Many of the office’s law enforcement partners expressed their gratitude for the work during U.S. Attorney McCoy’s tenure.
“Peter McCoy has been a committed and selfless ambassador for justice and public service,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Vince Pallozzi. “Peter’s been a strong supporter of law enforcement and public safety in South Carolina and has been a valuable partner with ATF in the fight against violent crime.”
“The investigative work of the U.S. Secret Service would not be successful without the support of the U.S. Attorney’s office,” said Special Agent in Charge John Hirt, U.S. Secret Service Columbia Field Office. “U.S. Attorney Peter McCoy has been a dedicated partner to the South Carolina district during one of the most difficult times in our history, and we are thankful for his dedication and support.”
“I am happy to have partnered with U.S. Attorney McCoy, and during his tenure we have investigated and prosecuted numerous significant cases to include child exploitation, human trafficking, narcotics and money laundering,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North and South Carolina. ”His leadership and tireless efforts to support our operations across all case disciplines has been exceptional.”
“Peter McCoy and the United States Attorney’s Office under his leadership has been a tremendous partner of the FBI,” said Susan Ferensic, Federal Bureau of Investigation Special Agent in Charge. “We wish him well on the next chapter of his professional life.”
“Peter McCoy and I met a decade ago when he was employed as an Assistant Solicitor,” said North Charleston Police Chief Reggie Burgess. “Peter rode along with our detectives, narcotics and SWAT on a weekly basis; and, whenever we had community meetings, he would be in attendance to witness police and community engagements. The North Charleston Police Department will truly miss Peter McCoy’s leadership as U.S. Attorney, and we thank Peter for a job well done.”
“I’ve known U.S. Attorney McCoy since before he was appointed U.S. Attorney,” said Richland County Sheriff Leon Lott. “He has always been very supportive of law enforcement. Most notable was the support he exhibited throughout the riots in Columbia last year, calling to offer his support and that of his office. My hope is that the incoming U.S. Attorney is as good and supportive to law enforcement.”
ABOUT PETER MCCOY
A Charleston resident, McCoy graduated from Hampden-Sydney College before receiving his Juris Doctorate from Regent University Law School. His work as a criminal prosecutor in the Ninth Circuit Solicitor’s Office spanned five years and included handling thousands of cases involving violence, guns, and drugs.
As a State Representative, McCoy was the lead sponsor of legislation requiring the mandatory reporting of child sexual abuse, as well as legislation establishing a mandatory minimum sentence for anyone who commits a crime while out on bond. Additionally, McCoy’s work in the legislature including passing statutes that ensure violent repeat criminal offenders do not remain out on bond if they continue to commit crimes.
U.S. Attorney McCoy thanked Senators Lindsey Graham and Tim Scott for their unwavering support during the appointment process, nomination, and confirmation.
“South Carolina is truly blessed with the leadership of our two United States Senators, as well as those serving our great state in the U.S. Attorney’s Office,” said U.S. Attorney McCoy. “I depart the office confident that my successor will inherit an incredibly dedicated and talented team and be ready to hit the ground running.”
#####
mccoy_resignation_letter_signed.pdfTwo Martin County Men Sentenced for Violating Federal Law Governing Ginseng SalesRead the Press Release
PIKEVILLE, Ky. – Two Lovely, Kentucky men, Sherman Jude, 73, and Johnathon Jude, 40, were sentenced today by U.S. District Judge Robert Wier, for violations of the Lacey Act, regarding ginseng purchases and required record keeping. Sherman Jude received two years of probation with a $30,000 fine. Johnathan Jude received one-year probation with a $1,500.00 fine.
The harvesting and sale of ginseng is governed by regulations, which include record keeping requirements and a limited harvest season. According to their guilty plea agreements, Sherman Jude was a dealer of wild American ginseng; and his son, Johnathon Jude, worked with him to keep records of the ginseng purchased from diggers and harvesters.
The investigation by the United States Fish and Wildlife Service revealed that over a period of years, the Judes falsified the required Kentucky Ginseng Purchase Forms, for multiple purchases of wild ginseng. This included failing to keep records of all the purchases and purchasing ginseng that was known to have been harvested from another state, without being properly certified before entering Kentucky, in violation of the regulations. Sherman Jude also acknowledged that, as of August 2019, he had purchased 12.5 pounds of ginseng that had been harvested improperly, out of season.
The Judes pleaded guilty in October 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and the United States Fish and Wildlife Service, jointly announced the sentencing.
The investigation was directed by the United States Fish and Wildlife Service, Kentucky Department of Agriculture, and Kentucky Department of Fish and Wildlife Resources. The United States was represented by Assistant U.S. Attorney Emily K. Greenfield.
Two Huntington Men Sentenced to Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today that two Huntington men were sentenced to federal prison by United States District Judge Robert C. Chambers.
“Great work by the Huntington Police Department,” said United States Attorney Mike Stuart. “Two more drug dealers are off of city streets.”
Desean Briscoe, 30, was sentenced to 46 months in prison for possession with the intent to distribute heroin and being a felon in possession of a firearm. Briscoe previously pled guilty and admitted that on January 23, 2020, officers executed a search warrant at his residence at 850 Bronson Court in Huntington. Officers found two firearms. After he was arrested and taken to the Huntington Police Department, Briscoe told officers he had heroin hidden on his person. Officers retrieved approximately 16 grams of heroin from Briscoe. Briscoe was prohibited from possessing firearms due to a 2015 felony conviction out of Wayne County for attempt to deliver a controlled substance.
In a separate case, Matthew Thomas, also known as “Rico Dolla,” and “PJ,” 29, was sentenced to 57 months in prison for distributing heroin and possession with intent to distribute heroin and cocaine base. Thomas previously pled guilty and admitted that in May and June 2019 he sold heroin on three occasions to a confidential informant in Huntington. Thomas also admitted that on June 19, 2019, officers with the Huntington Police Department searched his residence and found approximately 30 grams of heroin and 8 grams of cocaine base. Officers also found a drug press. Thomas admitted he intended to sell the heroin and cocaine base.
The Huntington Police Department conducted the investigations. Assistant United States Attorney Stephanie S. Taylor handled the prosecutions.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:20-cr-00040 (Briscoe) and 3:20-cr-00137 (Thomas).
Follow us on Twitter: SDWVNews and USAttyStuart
###
Two Former Alabama Public School Superintendents Among Six Charged with Fraud Related to Virtual EducationRead the Press Release
Montgomery, Alabama – On Tuesday, February 23, 2021, six individuals appeared in court after being indicted on charges related to the fraudulent enrollment of students in Alabama virtual schools, announced United States Attorney Louis V. Franklin, Sr., FBI Special Agent in Charge Johnnie Sharp, Jr., and Acting Special Agent in Charge Kori Smith of the U.S. Department of Education’s Office of Inspector General.
The defendants named in the indictment are: (1) Dr. William L. (“Trey”) Holladay, III, 56, a resident of Athens, Alabama and the former superintendent of the Athens City Schools district; (2) Deborah Irby Holladay, 57, of Athens and formerly employed by the Athens City Schools district; (3) William Richard (“Rick”) Carter, Jr., 45, also of Athens, currently the executive director of planning for Athens City Schools and formerly the district’s director of innovative programs; (4) David Webb Tutt, 61, of Uniontown, Alabama; (5) Gregory (“Greg”) Earl Corkren, 56, of Tuscaloosa, Alabama; and (6) Thomas Michael Sisk, 55, a resident of Toney, Alabama and formerly the superintendent of the Limestone County School district.
The indictment alleges that the defendants conspired to fraudulently enroll students in public virtual schools and then falsely report those students to the Alabama State Department of Education. As a result of this, districts received payments from Alabama’s Education Trust Fund as if the students actually attended public schools. The various defendants then received, for their own personal use, portions of the state money. The defendants skimmed the state money through direct cash payments and payments to third-party contractors owned by the various co-conspirators.
According to the indictment, the defendants obtained student identities to use in their scheme from various private schools located across the state—particularly private schools in the Black Belt region of Alabama. The defendants offered the private schools various inducements—including computers, direct payments, and access to online curriculum—to persuade them to share their students’ academic records and personal identifying information with the public school districts. During the school years that the scheme allegedly occurred—the 2016-2017 and 2017-2018 school years—the private school students and parents had little to no connection with the public school districts in which they were supposedly enrolled. The private school parents continued to pay tuition to the private schools. The students continued to attend the brick-and-mortar private schools each day, they received instruction from employees of the private schools, and, after class, some played sports for their private schools. All the while, the state reimbursed the Athens City Schools district and the Limestone County Schools district for the cost of supposedly educating these private school students.
The indictment further alleges that the defendants went to various lengths to conceal the fraud from the state. Such lengths included: creating fake report cards, manufacturing false addresses for the students of the private schools who lived outside of Alabama, and submitting falsified course completion reports to the state department of education.
All six of the defendants are charged with conspiring to commit mail and wire fraud. The indictment also contains substantive wire fraud charges against Trey Holladay, Deborah Holladay, and Carter. Additionally, Trey Holladay, Carter, and Corkren are charged with aggravated identity theft.
If convicted of the conspiracy charge, each defendant faces a maximum sentence of five years’ imprisonment, as well as substantial monetary penalties and restitution. Any defendant convicted of wire or mail fraud faces a maximum sentence of 20 years’ imprisonment, as well as substantial monetary penalties and restitution. Additionally, any defendant convicted of aggravated identity theft could receive a mandatory consecutive two-year sentence on each count.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“The money Alabama sets aside for public education should be used for exactly that—educating the students of our public schools,” stated United States Attorney Franklin. “The defendants in this case prioritized their own profits over the education needs of our students. In doing so, they stole children and parents’ identities and bribed administrators of private schools. I hope that this indictment serves as a warning for others who might try to line their pockets with public funds.”
“Public corruption remains the FBI’s top criminal priority because public officials must be trusted to do their jobs with honesty and integrity,” stated FBI Special Agent in Charge Johnnie Sharp, Jr. “The citizens of Alabama should rest assured that the FBI will continue to work with our law enforcement partners to investigate corruption at every level and hold accountable those officials who violate the public’s trust and use their position for profit or gain.”
“These so-called educators have been charged for preying on the schools that placed them in positions of trust to educate students and the students they promised to serve. That is completely unacceptable,” said Kori Smith, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “As the office responsible for identifying fraud, abuse, and other criminal activity involving U.S. Department of Education funds and programs, ensuring that those who abuse these funds or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission.”
“Integrity and trust are characteristics of Alabama teachers and administrators. When I was hired as your State Superintendent, I committed to improving education in our state which includes working closely with our local, state, and federal partners to ensure fiscal responsibility and accountability, so every crucial dollar is spent on educating our students,” said Alabama State Superintendent Dr. Eric Mackey. “Funds allocated for education should be spent to educate our public school students. However, over the course of several years, the individuals named in the indictment betrayed the trust of not only our citizens but our students, parents, and other teachers and administrators who continue to work diligently every day. We will continue to hold high standards at every level – from local schools to the state – with the expectation that every public school dollar will be spent to support our children.”
“Public officials and employees are obligated to perform their duties and administer funds with integrity and according to requirements of the law,” said Alabama Attorney General Marshall. “As Attorney General, I am committed to stand together with our partners in law enforcement to ensure that allegations of wrongdoing are investigated, and that appropriate action is taken.”
This case was investigated by the Federal Bureau of Investigation and the United States Department of Education’s Office of Inspector General. The Alabama Attorney General’s Office also assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross, Alice S. LaCour, and Brett J. Talley are prosecuting the case.
Twice-Convicted Drug Felon Indicted on Illegal Firearms Possession ChargeRead the Press Release
PITTSBURGH – Todd Hill was indicted by a federal grand jury in Pittsburgh for possessing a firearm after a prior felony conviction, United States Attorney Scott W. Brady announced today.
The Indictment charges Hill, age 35, of Pittsburgh, with possessing a Glock pistol on October 19, 2020, after two prior federal felony drug-trafficking convictions – one in the Western District of Pennsylvania and one in the Northern District of West Virginia.
The law provides for a maximum total sentence of up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the return of the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Tulsa Man Sentenced to 41 Months in Prison for Strangling a Former GirlfriendRead the Press Release
A Tulsa man who repeatedly violated a protective order and strangled his former girlfriend was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Ernie Wayne Standingsoldier Jr., 35, of Tulsa, to 41 months in federal prison to be followed by three years of supervised release. The defendant previously pleaded guilty to assault of an intimate partner and dating partner by strangling and attempting to strangle or suffocate in Indian Country.
“Strangulation is a precursor to homicide on the domestic homicide risk assessment. When a man puts his hands around a woman’s neck to strangle her, the chances of the victim dying from a domestic assault increase tenfold. Ernie Standingsoldier Jr. strangled and abused his victim, and today he faced the consequences for his actions,” said U.S. Attorney Trent Shores. “Every year, more than 10 million women and men are physically abused by an intimate partner. And with such a fine line between unconsciousness and death, law enforcement and prosecutors take special note when strangulation is involved. Standingsoldier now begins a 41 month sentence in federal prison where he will no longer be able to harm this victim.”
In January 2018, Tulsa County District Court issued a protective order against Standingsoldier Jr. in response to his repeated intimidation and abuse of the victim. The Court ordered Standingsoldier Jr. to have no contact with his former girlfriend for five years. Despite the protective order, Standingsoldier Jr. beat and strangled or attempted to strangle the victim in her own home two times within a month.
On Feb. 20, 2020, the defendant entered the victim’s apartment, grabbed her by the hair, punched her in the face, and strangled her. She managed to escape and called authorities. A medical team later found that she suffered from a concussion and a small subconjunctival hematoma, indicating strangulation. Three weeks later on March 16, Standingsoldier Jr. returned and forced his way into the victim’s apartment, punched the victim in the face and attempted to strangle the her a second time. In both cases, the defendant fled the scene before officers arrived. On March 28, 2020, the defendant again returned to the victim’s apartment, banging on the victim’s door when she was not at home. The apartment complex security officer called authorities, and Standingsoldier Jr. was arrested.
In a motion for upward variance, the United States argued the defendant should receive 41 months in prison, the highest end of the agreed to sentencing range. Assistant U.S. Attorney Devon Lash noted the grave nature of Standingsoldier Jr.’s violent assaults and his lack of respect for the law he when repeatedly violated the protective order. She argued that researchers and law enforcement professionals have determined that nonfatal strangulation is a leading indicator of escalating violence in a relationship and an important risk factor for homicide in women.
Lash cited expert testimony which noted that strangulation is the “ultimate form of power and control” because “the perpetrator can say to the victim: With this act, I can kill you if I want to. I can…let you live if I want to, and you will remember that.” Lash also cited research suggesting that the strangulation of women is increasingly prevalent in Oklahoma. Of the Oklahoma women who were in abusive relationships from 2009 to 2013, 80% reported being strangled by their partners, and 40% of those women reported multiple strangulations, according to a lethality assessment study in seven Oklahoma police jurisdictions. (Whitney Bryen, Strangulation of Women Is Common, Chilling – and Often a Grim Harbinger, Oklahoma Watch, May 29, 2019)
The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorney Devon Lash is prosecuting the case. AUSA Lash is a prosecutor from the Eastern District of New York. 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. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Three allegedly responsible for distributing thousands of fentanyl pills in Whatcom County indicted for drug distributionRead the Press Release
Seattle –Three people were arrested on an indictment today charging a conspiracy to distribute fentanyl in Whatcom County, Washington, announced U.S. Attorney Brian T. Moran. The defendants will make their initial appearance at 2:00 today and tomorrow in U.S. District Court in Seattle.
“This undercover investigation revealed these defendants were responsible for the distribution of thousands of pills tainted with potentially deadly fentanyl,” said U.S. Attorney Brian T. Moran. “A recent analysis by the King County Medical Examiner’s Office showed a significant drop in overdose deaths following large law enforcement seizures in federal drug cases. I am pleased our federal partners worked closely with Whatcom County law enforcement and other local authorities to reduce the flow of dangerous pills into our communities.”
“Saving lives is a priority of the Drug Enforcement Administration,” said DEA Special Agent in Charge Frank Tarentino. “Today’s enforcement action illustrates the commitment and sense of urgency the men and women of DEA routinely demonstrate as they carry out their mission of enforcing the federal narcotic laws of the United States. We must continue to focus our valuable resources and leverage our much needed and well established partnerships with the United States Attorney’s Office and local, state, county and federal law enforcement agencies to stem the tide of the systemic and widespread abuse of opioids in our communities.”
All three men named in the indictment are charged with conspiracy to distribute fentanyl. Each is charged with other specific distribution counts as well between September 2020 and January 2021.
JAIME HERNANDEZ HERNANDEZ, 21, of Ferndale, Washington, is charged with three additional counts of fentanyl distribution.
GORGE ORTIZ, 23, of Lynden, Washington, is charged with three additional counts of fentanyl distribution.
STANLEY STUBBS, 51, of Bellingham, Washington, is charged with possession of fentanyl with intent to distribute and being a felon in possession of a firearm.
Today, eight search warrants were executed, and law enforcement seized more than 5,000 fentanyl pills. Over the course of the investigation law enforcement has seized thousands of fentanyl pills and pound quantities of heroin and methamphetamine.
Due to the amount of fentanyl involved in this case, all three men face mandatory minimum ten-year sentences if convicted.
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.
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 investigation was conducted by the U.S. Drug Enforcement Administration (DEA) HIDTA Bellingham Residence Office, which is comprised of DEA, the Whatcom County Sheriff’s Office, Washington State Patrol, Homeland Security Investigations, and U.S Customs and Border Protection. In addition, these law enforcement agencies assisted with the arrests and search warrants executed today: Whatcom County SWAT, Washington State Patrol SWAT, Homeland Security Special Response Team, Skagit County Interlocal Drug Enforcement Unit, Ferndale and Lynden Police Departments.
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Three San Fernando Valley Men Charged with Running Counterfeit Document Ring that Created and Sold Dozens of False Passports, IDsRead the Press Release
LOS ANGELES – Two San Fernando Valley men were arraigned today on a federal grand jury indictment alleging they were part of a prolific document trafficking ring that created and sold counterfeit United States passport cards, Social Security cards, driver’s licenses, and other documents.
Carlos Ayala Hernandez, a.k.a. “Juan Juarez,” 44, of Granada Hills, the 19-count indictment’s lead defendant; and Nestor Perez, a.k.a. “Daniel Perez,” 32, of Van Nuys, each pleaded not guilty to one conspiracy count, nine counts of production of false identification documents, seven counts of transferring false identification documents, and one count of possession of five or more false identification documents. Hernandez also pleaded not guilty to one count of being an illegal alien in possession of a firearm.
On February 19, a third defendant named in the indictment – Miguel Juarez Guerrero, 23, of Van Nuys – pleaded not guilty to 18 charges related to the fake document mill.
According to the indictment filed on February 9, from January 2016 to January 2021, Hernandez, Guerrero and Perez conspired to produce false identification documents that appeared to have been issued by the United States government, and driver’s licenses purporting to be from multiple states, including California, Wyoming and Pennsylvania.
Hernandez and Guerrero allegedly received orders, some by text message, from customers seeking specific false identification documents. Hernandez and Guerrero then notified Perez, who manufactured and stored the fake IDs at a Van Nuys apartment used solely to produce the counterfeit documents, the indictment alleges. After the fake IDs were ready, Hernandez and Guerrero allegedly notified customers and arranged for pickup times and places, usually in the parking lots of restaurants or pharmacies, in exchange for cash.
On January 7, 2021 at the Van Nuys residence, the defendants possessed 21 U.S. passport cards; 68 Social Security cards; five Lawful Permanent Resident cards (commonly known as “green cards”); two Employment Authorization Document cards;135 driver’s licenses; 11 foreign identification documents for Mexico, Chile, Argentina and Peru; approximately 1,000 fraudulent authentication seals, according to the indictment. On the same date, Hernandez allegedly possessed $40,000 in cash at his residence.
An April 6 jury trial date has been scheduled before United States District Judge John F. Walter.
The three defendants in this case were arrested pursuant to a criminal complaint on January 27.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges related to the counterfeit documents each carry a statutory maximum sentence of 15 years in federal prison. So, if convicted of all charges in the document, the defendants would face potential sentences of decades in prison.
Homeland Security Investigations and the Ventura County Sheriff’s Office investigated this matter.
Special Assistant United States Attorney Matthew C. Chan and Assistant United States Attorney Gregory D. Bernstein, both of the General Crimes Section, are prosecuting this case.
Somers Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that RICHARD LEAF, a resident of Somers, was arrested this morning and charged with receiving and possessing videos and images containing child pornography. LEAF was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.
U.S. Attorney Audrey Strauss said: “Richard Leaf is alleged to have engaged in deeply disturbing sexual communications with minors, and in being in possession of child pornography. Child pornography inflicts immeasurable damage upon innocent victims, and this Office and our FBI partners will continue to exhaustively detect, identify, and charge any individuals engaged in this sinister conduct. Below, the various usernames alleged to have been used by Leaf to engage with under-aged victims are listed, please call 1-800-CALL-FBI if you believe you have information helpful to this investigation.”
FBI Assistant Director William F. Sweeney Jr. said: “As our society continues to become more reliant on technology, more of our children are exposed to the most despicable predators - those searching out young children to sexually exploit them. As we allege in this case, Mr. Leaf used Skype to chat with his victims. I'd like to stress to parents that although these contacts may occur in a virtual world, they harm your children in the real world. These criminals inflict lasting damage to their victims, and both parents and guardians need to be aware of the dangers their children face. The list below provides known fake handles Mr. Leaf allegedly used to contact children. Please take a look and have a conversation with your child. If you believe they've been in contact with Mr. Leaf, please call us at 1-800-CALL-FBI or reach us online at tips.fbi.gov."
According to the allegations contained in the Complaint[1]:
Between March 2019 and April 2020, LEAF posed as a teenager named “Alex Bronson” to communicate via Skype with a minor (“Minor-1”), who LEAF believed was 15 years old. During the course of these communications, Minor-1 sent LEAF a video of himself masturbating in the shower and a fully nude photo of himself in a bedroom. In addition, law enforcement officers uncovered almost a dozen images and videos containing child pornography on LEAF’s home computer.
The Complaint further alleges that LEAF created fictitious accounts on Chat Avenue, an online chatroom website, and Skype to communicate with minors. The usernames of some of LEAF’s fictitious accounts include:
alex bronson
sportsboi.15
alex15
15brandon
zach.914
runnerboi.14
austinf19
sportsgirl.914
brandon.williams.23
dan.dan77771
beachsand.7
Austin A
If you have information to report or if you interacted or sent under-aged photos or videos of a sexual nature to any of the above accounts, please contact the Federal Bureau of Investigation at 1-800-CALL-FBI.
* * *
LEAF, 72, of Somers, New York, is charged with one count of receiving child pornography, which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison, and one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the efforts of the FBI and its Westchester County Safe Streets Task Force. She added that the investigation is ongoing.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jennifer Ong is in charge of the prosecution.
The charge contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Six Foreign Nationals and a Bank Employee Facing Federal Indictment in Maryland for a Scheme to Defraud Financial InstitutionsRead the Press Release
Greenbelt, Maryland – A federal grand jury in Maryland has returned a superseding indictment charging six foreign nationals and a bank employee for a bank fraud scheme in which the defendants and their co-conspirators obtained or attempted to obtain more than $700,000. The defendants, Diape Seck, age 27, of Rockville, Maryland; Nicolae Gindac, age 52, of Dania Beach, Florida; Mateus Vaduva a/k/a “Romi”, age 28; Marius Vaduva, age 26; Marian Unguru, age 36; Daniel Velcu, age 43; and Vali Unguru, age 18, all of Baltimore, Maryland are charged with a federal bank fraud and wire fraud conspiracy. The superseding indictment was returned on February 17, 2021 and was unsealed in part at Diape Seck’s initial appearance on February 22, 2021.
The superseding indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to the superseding indictment and other court documents, from June 2018 to January 2021, conspirators fraudulently opened bank accounts at victim financial institutions. The conspirators stole checks from the incoming and outgoing mail of churches and other religious institutions, then deposited the stolen checks into the fraudulently opened bank accounts. The conspirators then allegedly withdrew the funds and spent the fraudulently obtained proceeds.
Specifically, the superseding indictment alleges that Diape Seck, an employee of one of the victim financial institutions, facilitated the opening of multiple bank accounts at that institution for the co-conspirators. Mateus Vaduva, Marius Vaduva, Nicolae Gindac, Marian Unguru, Daniel Velcu, Vali Unguru and their co-conspirators allegedly used foreign identity documents, often but not universally Romanian, in both their true identities as well as suspected fictitious identities, to fraudulently open bank accounts at victim financial institutions. The co-conspirators then fraudulently negotiated the stolen checks by depositing the stolen checks into the victim bank accounts, often by way of automated teller machine (ATM) transactions. After depositing the stolen checks into the bank accounts, the conspirators allegedly made cash withdrawals from ATMs and purchases using debit cards associated with the bank accounts.
According to court documents, an investigation by the victim bank where Diape Seck worked revealed that Seck allegedly violated numerous bank policies in opening approximately 412 checking accounts in a one-year period from approximately January 2, 2019 through January 3, 2020, relying predominantly on Romanian passports and driver's license information. Checks payable to and written from churches and other religious institutions from around the country were allegedly deposited into many of the 412 checking accounts which were not opened in the names of the churches. Law enforcement determined that the church checks were stolen.
For example, the indictment alleges that: on October 24, 2019, Diape Seck opened, and aided and abetted the opening of, five fraudulent bank accounts in the names of “E.V.,” “L.U.,” “R.P.,” “G.B.,” and “F.P.”; on October 25, 2019, Mateus Vaduva opened a fraudulent bank account in the name of “W.H.”; on November 12, 2019, Marius Vaduva opened three fraudulent bank accounts in the names of “P.P.,” “M.C.,” and “N.V.”; on January 21, 2020, Daniel Velcu negotiated a stolen check into a victim bank account using an ATM in Glen Burnie, Maryland; on April 12, 2020, Nicolae Gindac negotiated two checks that had been stolen from churches in Ellicott City and La Plata, Maryland into a fraudulently opened bank account in the name of “D.B.”, using an ATM in Davie, Florida; on April 15, 2020, Marian Unguru negotiated three stolen checks and withdrew $500 in cash from a fraudulently opened bank account in Glen Burnie, Maryland; and on July 13, 2020, Vali Unguru negotiated a stolen check into a fraudulently opened bank account using an ATM in Baltimore, Maryland.
If convicted, the defendants each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud. 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. Diape Seck had his initial appearance on February 22, 2021, and was ordered to be released pending trial. Marian Unguru, Daniel Velcu, and Vali Unguru previously had initial appearances in U.S. District Court in Greenbelt. Marian Unguru and Daniel Velcu were ordered to be detained pending trial and Vali Unguru was released pending trial. The remaining defendants are each expected to have an initial appearance in U.S. District Court in Greenbelt, but no dates have been scheduled.
A superseding indictment is not a finding of guilt. An individual charged by superseding indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
# # #
Sioux City Man to Federal Prison for MethRead the Press Release
A man who conspired to distribute methamphetamine was sentenced February 23, 2021, to 11 years in federal prison.
Nicholas Thompson, 30, from Sioux City, Iowa, received the prison term after a September 24, 2020, guilty plea to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Thompson was previously convicted of conspiracy to manufacture methamphetamine in the United States District Court for the Northern District of Iowa on November 9, 2010.
Evidence at the plea and sentencing hearings showed that between January 2019 and January 2020, Thompson and others conspired to distribute at least 5000 grams of methamphetamine mixture. On two occasions in July and December of 2019, Thompson was stopped by law enforcement and found in possession of about ½ ounce of methamphetamine. Later in December 2019, Thompson was apprehended pursuant to an arrest warrant and found in possession of more than two ounces of methamphetamine. Then in January 2020, law enforcement conducted a traffic stop of a vehicle occupied by Thompson. The driver attempted to flee in the vehicle and ran over stop-sticks deployed by law enforcement. Thompson exited the vehicle, fell down and was caught with a bag of nearly ten ounces of methamphetamine near him. Law enforcement also seized a loaded .38 caliber handgun, with the serial number filed off, approximately 60 feet from where the vehicle ultimately stopped. The bag appeared to have been thrown from the vehicle. Thompson admitted he had been involved in the distribution of sizable quantities of methamphetamine since he had been released from federal prison and intended to distribute some or all of the methamphetamine to other persons.
Thompson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Thompson was sentenced to 132 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system. Thompson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4036. Follow us on Twitter @USAO_NDIA.