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23 February 2021
Cincinnati Man Sentenced to 36 Months for Possession of a Firearm by Convicted FelonRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Alex Collins, 37, was sentenced on Tuesday to 36 months in federal prison, by U.S. District Judge David Bunning, for possession of a firearm by a convicted felon.
According to his plea agreement, on March 1, 2020, law enforcement attempted to conduct a traffic stop on Collins, who only stopped momentarily before driving off and hitting a car and utility pole. Collins admitted that during that stop, he was in possession of a loaded handgun. Collins further admitted that he was a convicted felon and was prohibited from possessing a firearm.
Collins has a previous felony conviction from Ohio in 2014 for felonious assault. Collins pleaded guilty to the current charge in September 2020.
Under federal law, Collins must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, after his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, and Rob Nader, Chief of the Covington Police Department, jointly announced the sentence.
The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Amanda Harris.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier, coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
Cincinnati Man Sentenced to 30 Months for Possession of a Firearm by Convicted FelonRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Keith A. Shaffer, 34, was sentenced on Tuesday to 30 months in federal prison, by U.S. District Judge David Bunning, for possession of a firearm by a convicted felon.
According to his plea agreement, on March 11, 2020, law enforcement conducted a traffic stop on Shaffer’s vehicle, finding him in possession of a 9mm loaded gun. Shaffer admitted that he was a convicted felon and was prohibited from possessing a firearm.
Shaffer was previously convicted of second-degree burglary, in July 2006. Shaffer pled guilty to the current charge in September 2020.
Under federal law, Shaffer must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, after his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Bill Birkenhauer, Chief of the Highland Heights Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and the Highland Heights Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier, coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
Cincinnati Man Sentenced to 188 Months for Distribution of Fentanyl and HeroinRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Thomas Coleman, 48, was sentenced to 188 months in federal prison on Tuesday, by U.S. District Judge David Bunning, after previously admitting to distributing fentanyl and heroin.
In his guilty plea agreement, Coleman admitted to selling fentanyl and heroin, cocaine, and methamphetamine, on several occasions in December 2019, at locations in Covington. Coleman has nine prior convictions for drug trafficking. He was also released from his parole, for a prior prison term, less than eight months before committing the new crimes.
Coleman pled guilty in October 2020.
Under federal law, Coleman must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for eight years, after his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office; and Rob Nader, Chief of the Covington Police Department, jointly announced the sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Covington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
Chester County Pharmacy Agrees to Resolve Civil Allegations of Improper Dispensing of Controlled Substances for $225,000Read the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that the United States filed a civil lawsuit against Source One Pharmacy Services, LLC, a West Chester, PA-based closed-door pharmacy, alleging that the pharmacy improperly dispensed and distributed controlled substances and failed properly to inventory and document its controlled substances. At the same time the civil suit was filed, the United States also filed a proposed consent judgment that, subject to the court’s approval, would resolve the lawsuit. The consent judgment would require Source One to pay $225,000 in civil penalties under the Controlled Substances Act and would impose several accountability and monitoring conditions on the pharmacy.
The civil lawsuit alleges that Source One Pharmacy, which operates as a closed-door pharmacy (meaning that it is not open for business to the general public), had received warnings from the Drug Enforcement Administration (DEA) in prior investigations, but nevertheless went on to dispense controlled substances illegally, including opioids. The complaint further alleges that Source One distributed some controlled substances to locations where the recipients were not authorized to receive them, and that a DEA audit revealed pills were missing from Source One’s records for seven different controlled substances.
Source One agreed to resolve its civil liability under terms outlined in the proposed consent judgment, if accepted by the court. Among other items, Source One would pay $225,000 in civil penalties under the Controlled Substances Act and would be subject to several heightened accountability and monitoring measures for three years, including the requirement that Source One report its dispensing to the DEA.
“Pharmacies that handle dangerous controlled substances like opioids must be held to the highest standards in order to ensure that the drugs are properly monitored and do not end up in the wrong hands,” said Acting U.S. Attorney Williams. “This civil suit and consent judgment send a strong message to the community that, if a pharmacy violates these important standards, laws, and regulations, it will face serious consequences.”
“Source One Pharmacy is alleged to have improperly dispensed opioids and failing to maintain an accurate inventory of their controlled substances,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Civil penalties such as these are an effective means to insure the proper safeguarding of controlled substances and compliance with the Controlled Substances Act.”
The case was investigated by the Philadelphia Field Division of the Drug Enforcement Administration. The civil investigation, litigation, and resolution are being handled by Assistant United States Attorneys Scott W. Reid and Anthony D. Scicchitano.
The complaint contains allegations only and does not contain any admissions. The proposed consent judgment would resolve any alleged civil liability.
Cattaraugus Woman Pleads Guilty to Distribution of Child PornographyRead 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 Melanie Thompson, 46, of Cattaraugus, NY, pleaded guilty to distribution of child pornography before U.S. District Judge John L. Sinatra, Jr. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeffrey T. Fiut, who is handling the case, stated that between January 9, 2017, and March 6, 2020, the defendant took sexually explicit photographs of Victim 1, a minor, in furtherance of her plan to impersonate Victim 1. Thereafter, defendant, while impersonating Victim 1, engaged in conversations of a sexual nature with two minor male victims (Victims 2 and 3) and one adult. During those conversations, defendant: solicited a sexually explicit picture from Victim 2; sent, via social media, the sexually explicit photograph she had taken of Victim 1 to Victim 3, receiving two sexually explicit images in return from Victim 3; and while impersonating Victim 1 and engaging in sexual conversations with an adult male over social media, sent such male the sexually explicit photographs she had taken of Victim 1.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Cattaraugus County Sheriff’s Office, under the direction of Timothy S. Whitcomb.
Sentencing is scheduled for June 17, 2021, at 2:00 p.m. before Judge Sinatra.
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CEO of Medifirst Solutions, Inc. Arrested for Securities FraudRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Bruce Schoengood, the chief executive officer of Medifirst Solutions, Inc. (MFST"), a publicly-traded company, with securities fraud in connection with a scheme that yielded hundreds of thousands of dollars in profits for Schoengood and others, while defrauding MFST investors. Schoengood was arrested earlier today and made his initial appearance this afternoon via videoconference before United States Magistrate Judge Robert M. Levy. The defendant was released on a $500,000 bond.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charge.
“CEOs of publicly-traded companies cannot enrich themselves at the expense of investors by illegally manipulating the stock of their companies,” stated Acting United States Attorney DuCharme. “This Office is committed to upholding the integrity of financial markets and to prosecuting, to the fullest extent of the law, company executives who abuse investors' trust.” Mr. DuCharme expressed his grateful appreciation to the U.S. Securities and Exchange Commission for its assistance with the case.
“As alleged, Schoengood stood to illegally profit from the exploitation of his victims, whom he defrauded through manipulative practices carried out in relation to the purchase and sale of stock for Medifirst Solutions, Inc. These illegal business practices, while all too common, tend to catch the eye of federal investigators. The FBI is committed to bringing to justice all those who attempt to defeat the integrity of the financial markets in this way,” stated FBI Assistant Director-in-Charge Sweeney.
According to the complaint, between May 2016 and January 2019, Schoengood, together with others, engaged in a scheme to defraud MFST investors by manipulating the volume of MFST stock and concealing the sale of that stock by others. Specifically, Schoengood entered into sham consulting agreements with a co-conspirator (Co-Conspirator 1) so that Co-Conspirator 1 would appear to be working for MFST. Schoengood then transferred MFST stock to Co-Conspirator 1 and made false statements in public filings and related filings to enable the shares to be deposited and sold by Co-Conspirator 1, so that Co-Conspirator 1 and an investment relations firm could participate in the undisclosed promotion of MFST stock. Schoengood also issued stock to co-conspirators so that they could sell their shares into the artificially created volume by Co-Conspirator 1 and the investment relations firm, then “kickback” portions of the proceeds to Schoengood.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted of securities fraud, Schoengood faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
BRUCE SCHOENGOOD
Age: 62
Manalapan, New JerseyE.D.N.Y. Docket No. 20-MJ-206
Butler County Man Sentenced to Federal Prison for Gun ConvictionRead the Press Release
A man who illegally possessed a firearm was sentenced on February 22, 2021, to 3 years in federal prison.
Michael Limkemann, 35, from Clarksville, Iowa, pled guilty on September 24, 2020, to illegal possession of a firearm as a felon and user of controlled substances. Limkemann was previously convicted of Conspiracy to Distribute Methamphetamine and Unauthorized Possession of an Offensive Weapon, in the Iowa District Court for Butler County, and Possession of a Controlled Substance – 2nd Offense, in the Iowa District Court for Black Hawk County, on or about January 12, 2016. These convictions prohibited Limkemann from possessing any firearms or ammunition.
At the plea and sentencing hearings, evidence showed that Limkemann had given a .22 rifle to another drug user. Limkemann further admitted to possessing the .22 rifle while he was a user of methamphetamine and marijuana.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Limkemann was sentenced to 36 months’ imprisonment. He must also serve a term of 3 years of supervised release following imprisonment. There is no parole in the federal system. Limkemann remains in custody of the United States Marshal until he can be transferred to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Clarksville Police Department, Butler County Sheriff’s Department and the Bureau of Alcohol, Tobacco and Firearms Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3010. Follow us on Twitter @USAO_NDIA.
Buffalo Man Arrested, Charged with Receiving Images of Child PornographyRead 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 Jeffrey A. Joyes, 49, of Buffalo, NY, was arrested and charged by criminal complaint with receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, the defendant used his Kik account to engage in a sexual conversation with a 17-year old minor girl (Victim). During that conversation, Joyes received nude images that constitute child sexual abuse material. The FBI's Child Exploitation Task Force began to investigate on January 22, 2021, after receiving information from an FBI special agent in Augusta, Georgia. The agent had recently interviewed the Victim’s mother, who stated that her daughter met an adult male online and exchanged sexually explicit pictures and videos with him.
A forensic review of the Victim’s phone determined that the defendant communicated with the Victim on the Kik application between January 13-16, 2021. Investigators also recovered multiple photos of the Victim, some of which constitute child pornography. There were also several phone calls made between the defendant and the Victim.
Joyes will make an initial appearance this afternoon at 4:30 p.m. before U.S. Magistrate Judge Michael J. Roemer.
The complaint is the result of an investigation by the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia. Additional assistance was provided by the Augusta, Georgia, Office of the FBI.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Billings woman admits trafficking meth, heroin and fentanylRead the Press Release
BILLINGS—A Billings woman today admitted a drug trafficking crime after law enforcement seized methamphetamine, heroin and fentanyl during an investigation, Acting U.S. Attorney Leif Johnson said.
Lisa Ann Emmett, 34, pleaded guilty to possession with intent to distribute controlled substances. Emmett faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Dana L. Christensen. Emmett was released pending further proceedings.
In court documents filed in the case, the prosecution said that agents with the Drug Enforcement Administration developed information that Emmett and co-defendant, Anthony Walker, had been receiving distributable amounts of meth and heroin in the U.S. mail. DEA agents conducted several controlled buys from Emmett and Walter. Walter has pleaded guilty to charges and is pending sentencing.
On Aug. 30, 2019, a U.S. Postal Inspector intercepted a suspicious package destined to Walker’s business address. The package was searched pursuant to a warrant and investigators found about 465.1 grams of meth, which is approximately one pound, and 61.1 grams of heroin, which was similar to “China white” heroin.
The package was delivered to Walter’s business, and Walter took possession of the package. Agents executed a search warrant on the business. Both Walter and Emmett were present and directed agents to their drug stash. Agents located heroin, meth and marijuana in a black container. The meth was determined to be 99 percent pure. The China white heroin was determined to contain 51.6 grams of fentanyl.
Assistant U.S. Attorney Julie Patten is prosecuting the case, which was investigated by the DEA.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Beltsville Pimp Pleads Guilty to Conspiracy to Commit Sex TraffickingRead the Press Release
Baltimore, Maryland – Kamal Dorchy, age 46, of Beltsville, Maryland, pleaded guilty today to the federal charge of conspiracy to commit sex trafficking.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Lisa D. Myers of the Howard County Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Interim Chief Hector Velez of the Prince George’s County Police Department; and Howard County State’s Attorney Rich Gibson.
According to Dorchy’s plea agreement, from September 2016 to July 2017, Dorchy conspired with others to commit sex trafficking. Dorchy posted prostitution advertisements on Internet websites. Dorchy also recruited sex workers for his prostitution business through advertisements on Internet websites for massage work or prostitution.
As detailed in his plea agreement, on July 27, 2017 a Howard County Police Department detective met with an adult sex worker (Victim 1) at a hotel in Laurel, Maryland. Victim 1 advised the detective about Dorchy’s conduct. The victim also told the detective she went by a name in prostitution ads that Dorchy had given her.
Further, Dorchy agrees that he met a 17-year-old minor at a strip club in July of 2017 and recruited the minor victim to work for him. Dorchy claims that he was not aware of her true age at the time, and believed she was 18 years of age due to her employment at the strip club. The minor victim informed law enforcement that she told Dorchy her true age before she was trafficked. Dorchy arranged prostitution dates for the minor victim by posting ads on Internet websites, including for dates in Maryland. When Dorchy could not be there for the minor victim’s prostitution dates, he employed his cousin to act as “security.” The minor victim was 17 years old during the entire time that she was trafficked.
A third sex trafficking victim, an adult female, advised law enforcement that she met Dorchy in 2016 during a job interview for a massage business at a hotel in Baltimore, Maryland, where she was told that she would be walking clients to appointments. The victim advised that later, she did prostitution dates at Dorchy’s direction at the massage business.
As part of his plea agreement, Dorchy will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Dorchy and the government have agreed that, if the Court accepts the plea agreement, Dorchy will be sentenced to between six years and 10 years in federal prison. U.S. District Judge George L. Russell has scheduled sentencing for May 27, 2021, at 10:00 a.m.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner praised HSI, the Howard County, Baltimore County, and Prince George’s County Police Departments, the Baltimore Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorneys Ayn B. Ducao, Adam K. Ake, and Jeffrey J. Izant, who are prosecuting the case.
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Barraza Pleads Guilty to Trafficking in Heroin and Carrying a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
ST. GEORGE, UTAH – Richard Dimitri Barraza, 24, of St. George, Utah, has agreed to serve 150 months in federal prison after pleading guilty to possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime.
According to the plea agreement, Barraza admitted to possessing approximately 160 grams of a mixture or substance containing heroin, along with a 9mm pistol that he used to further his heroin trafficking enterprise. Because Barraza was on supervised release for a 2017 federal conviction for being a felon in possession of a firearm, this plea also resolves the outstanding supervised release violation pending against him.
“Southwest Utah needs federal law enforcement because of cases like this one,” said United States Attorney John W. Huber. “We are committed to focusing on dangerous offenders who drag down our quality of life through reckless decisions.”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Agents from the Washington County Drug Task Force, Officers from the St. George Police Department, and Special Agents from the DEA conducted the investigation. The U.S. Attorney’s Office coordinated the prosecution with the Washington County Attorney’s Office.
Bank President’s Arson and Fraud Scheme Goes up in SmokeRead the Press Release
SHERMAN, Texas – A former bank president has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei today.
Anita Gail Moody, 57, of Cooper, Texas pleaded guilty on June 5, 2020, to conspiracy to commit bank fraud and arson and was sentenced to 96 months in federal prison today by U.S. District Judge Amos L. Mazzant, III. Moody has additionally agreed to pay restitution in the amount of $11,136,241.82.
According to information presented in court, on May 11, 2019, while Moody was President of Enloe State Bank in Cooper, Texas, the bank suffered a fire that investigators later determined to be arson. The fire was contained to the bank’s boardroom, however the entire bank suffered smoke damage. Investigation revealed that several files had been purposefully stacked on the boardroom table, all of which were burned in the fire. Notably, the bank was scheduled for a review by the Texas Department of Banking the very next day. Further investigation revealed Moody had created false nominee loans in the names of several people, including actual bank customers. Moody eventually admitted to setting the fire in the boardroom to conceal her criminal activity concerning the false loans. She also admitted to using the fraudulently obtained money to fund her boyfriend’s business, other businesses of friends, and her own lifestyle. The fraudulent activity, which began in 2012, resulted in a loss to the bank of approximately 11 million dollars.
“Criminal conduct that affects the financial health of a small, local lender can send a negative ripple effect throughout the entire community,” said Acting United States Attorney Nicholas J. Ganjei. “The Eastern District of Texas will vigorously prosecute cases, such as the one here, that undermine public confidence in our local banks. We are also deeply appreciative of the excellent investigative work of the FDIC Office of the Inspector General, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in bringing this matter to a close.”
Jeannie Swaim, who served as vice president of Enloe State Bank, and who was also involved in fraudulent conduct, was previously sentenced to 24 months’ imprisonment, and agreed to pay restitution in the amount of $410,675.18.
This case was investigated by the FDIC-OIG and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorneys Maureen Smith and Wes Wynne.
Baltimore Fentanyl Dealer Sentenced to More Than Seven Years in Federal Prison for Distributing More Than 400 Grams of Fentanyl—Enough to Kill 20,000 PeopleRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Joseph Speed, age 28, of Baltimore, Maryland, to seven years in federal prison, followed by four years of supervised release, after Speed pleaded guilty to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. Speed admitted that between 400 grams and 1.2 kilograms of fentanyl were reasonably foreseeable to him and in furtherance of the conspiracy to distribute fentanyl. As little as 2 milligrams of fentanyl can be a lethal dose.
This case is part of an initiative implemented by the U.S. Attorney’s Office for the District of Maryland to combat the growing fentanyl overdose crisis in Maryland. Under this initiative, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The use of federal resources and statutes, which carry significant terms of imprisonment, will allow the U.S. Attorney’s Office to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The guilty plea and sentencing were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Baltimore City Sheriff John W. Anderson; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
Acting United States Attorney Jonathan F. Lenzner stated, “Joseph Speed was an armed narcotics dealer operating in Baltimore. He sold fentanyl to people in our community and he carried firearms to further his drug business. Speed will now serve more than seven years in federal prison, where there is no parole—ever. Armed drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution.”
According to his guilty plea, Speed was part of a drug organization that sold fentanyl in the Baltimore area. On May 20, 2019, law enforcement executed a search warrant at Speed’s apartment in Baltimore and recovered approximately 458 grams of fentanyl, a 9mm handgun, $666 in cash, and drug paraphernalia, including cutting agents and gel capsules. Speed admitted that he used these items to facilitate his drug trafficking, including preparing drugs for resale to customers of the drug organization.
On July 23, 2019, law enforcement performed a traffic stop on Speed’s vehicle in Baltimore County. A subsequent search of Speed and his vehicle recovered another 9mm handgun, numerous fentanyl gel caps, and $5,345 in cash.
Finally, on May 15, 2020, law enforcement executed a search warrant at Speed’s apartment in Pikesville, Maryland, and recovered a third firearm, a 9mm semi-automatic handgun, as well as a small amount of suspected fentanyl.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Baltimore City Sheriff’s Office, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorney Jason D. Medinger, who prosecuted the case.
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Attempted Armed Robbery Suspects Indicted on Federal Firearms ChargesRead the Press Release
In Austin today, a federal grand jury returned an indictment charging two Austin residents for their alleged roles in an attempted armed robbery of a convenience store last year, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The federal grand jury indictment charges 36-year-old Deon Ross and 18-year-old Lavante Carter with one count of interference with commerce by threat or violence. The indictment also charges Ross with one count of discharging a firearm during a crime of violence and Carter with one count of brandishing a firearm during a crime of violence. The indictment alleges that on October 7, 2020, the defendants attempted to rob a convenience store located on North Interstate 35 in Austin. The indictment further alleges that during the incident, Ross shot a convenience store employee while Carter brandished a firearm at a second convenience store employee.
Carter and Ross were arrested on October 12, 2020, and December 6, 2020, respectively. Both have since remained in custody. Upon conviction, Ross and Carter face up to 20 years in federal prison for interference with commerce by threat or violence. Ross faces between 10 years and life in federal prison upon conviction of discharging a firearm during a crime of violence. Carter faces between seven years and life in federal prison upon conviction of brandishing a firearm during a crime of violence.
This case is part of Operation Undaunted, representing federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities.
The FBI and the Austin Police Department investigated this case with assistance from the Killeen Police Department. Assistant U.S. Attorneys Gabriel Cohen and Keith Henneke are prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Arkansas Couple Sentenced to A Combined Four Years in Federal Prison for Aggravated Identity Theft and Mail FraudRead the Press Release
El Dorado, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Patrick Wayne Watson, age 24, now of Conway, Arkansas, and Kennan Dane O’Bier, age 24, now of Nash, Texas, were sentenced in Federal Court for their roles in a Mail Fraud and Identity Theft scheme in Magnolia, Arkansas. O’Bier was sentenced to 30 months in federal prison followed by three years of supervised release and Watson was sentenced to 18 months in federal prison followed by three years of supervised release, both on one count of Mail Fraud and Aggravated Identity Theft. They were each ordered to pay $200 in special assessments and to pay restitution in the amount of $42,113.12. The Honorable Susan O. Hickey, Chief United States District Judge, presided over the sentencing hearing in the United States District Court in El Dorado, Arkansas.
According to court records, between August of 2018 through January 31st of 2019, Watson, who was employed at a local bank, used his position at the bank to review personally identifiable information and banking information of customers. While doing so, Watson took photographs of the personally identifying information of over one hundred bank customers on his cellular phone. Watson and O’Bier together then used at least six (6) of those customer’s information to open PayPal, Amazon, and Wayfair accounts in the names of the unsuspecting bank customers.
Over the six months of the scheme, Watson and O’Bier then used those accounts to order thousands of dollars in products from Amazon and Wayfair and had them delivered to multiple addresses, to include their home in Magnolia, Arkansas. On April 23, 2019, a federal search warrant was obtained by the FBI and executed on their Magnolia home. Many of the shipped items were found as well as additional evidence of the Mail Fraud and Identity Theft scheme. Subsequent to this search warrant, a search of Watson’s cell phone resulted in law enforcement discovering the photographs of additional bank customers’ information which were not, to date, used in the scheme.
Watson and O’Bier were indicted on the scheme in August of 2019. Watson entered a plea to Mail Fraud and Aggravated Identity Theft charges on June 22, 2020. O’Bier entered his plea to Mail Fraud and Aggravated Identity Theft on July 20, 2020.
This case was investigated by the Federal Bureau of Investigation (FBI), the Hot Spring County Sheriff’s Office, the Hempstead County Sheriff’s Office and the Miller County Sheriff’s Office. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Anchorage Man Indicted for Escape, Accomplice Charged by ComplaintRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that, on February 18, 2021, Tristan Jamal Grant, aka “Goo” 35, of Anchorage, was indicted by a federal grand jury for Escape by Prisoner in Custody and Failure to Appear. Julissa Carter, aka “Red”, 32, of Anchorage was charged by criminal complaint February 19, 2021 for Assisting an Escape by Prisoner in Custody and Aiding and Abetting Grant’s Failure to Appear.
According to Court documents, Grant was apprehended by Anchorage Police Department following a shooting on December 12, 2018. Grant remained in custody and was indicted by a federal grand jury on January 15, 2019 for Felon in Possession of a Firearm and ordered held by federal detainer at the Anchorage Correctional Center (ACC). Later, a grand jury indicted Grant in a 10-count federal indictment for multiple federal offenses, including Conspiracy to Engage in Sex trafficking of Minors, Sex Trafficking of a Minor, Sexual Exploitation of a Child – Production of Child Pornography, and Felon in Possession of a Firearm. His trial on those charges was set to begin on February 22, 2021 and will be rescheduled.
On Feb 12, 2021, Grant was released by court order to meet with his attorney at his attorney’s office prior to trial. The Release Order allowed Grant to leave the Anchorage Correctional Center (ACC) on February 16 at 10:00 am and required him to return by 5:00 pm. A court-approved defense investigator picked Grant up at ACC and drove him to his attorney’s office. Upon the conclusion of the meeting, the defense investigator prepared to drive Grant back to ACC. As Grant approached the vehicle, he threw his paperwork into the vehicle and then fled from the area. The defense investigator notified law enforcement of Grant’s escape. Grant failed to return to custody at ACC by the specified time in the Release Order.
Upon learning of Grant’s escape, the Anchorage Police Department (APD) responded and the FBI Safe Streets Task Force reviewed jail calls made by Grant. The review of jail calls revealed that immediately after learning he was to be released, Grant called Carter to learn details of the location and layout of the attorney’s office. In later calls, Grant and Carter exchanged cryptic information and discussed a meeting on February 16.
The FBI’s Safe Streets Task Force, Human Trafficking Task Force, Child Exploitation Task Force, and Anchorage Police Department worked together to locate, isolate, and apprehend Grant and Carter. Their investigation revealed Carter had rented a room at a local hotel on the morning of February 17. Law enforcement obtained a search warrant for the room and entered it a short time later. Carter and Grant were both inside and were taken into custody without incident.
If convicted, Grant could face a sentence of up to 5 years for the Escape and 10 years for the Failure to Appear. Any sentence for the Failure to Appear to be consecutive to whatever sentence that may be imposed on the charges previously filed in the 10-count indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
If convicted, Carter could face a sentence of up to 5 years for Assisting an Escape and 10 years for Aiding and Abetting Grant's Failure to Appear. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the indictment and complaint in this case. This case is being prosecuted by Assistant U.S. Kyle Reardon.
This original case against Grant case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Grant’s case is also part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
22 February 2021
Wilmington Man Sentenced to over Eight Years in Prison for Traveling to PA for Sexual Encounter with a MinorRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Thomas Traumann, 53, of Wilmington, DE, was sentenced to eight years and three months in prison, ten years of supervised release, and a $25,000 find by United States District Court Judge Gene E.K. Pratter for traveling across state lines to have sex with a person whom he believed to be a minor child.
In October 2020, the defendant pleaded guilty to one count of interstate travel with intent to engage in illicit sexual conduct. The charges stem from Traumann’s attempt in late-2018 to entice a minor into having a sexual relationship with him.
On November 3, 2018, Traumann began an online chat on a social media website with a person whom he thought was a 14-year-old girl. In reality, the defendant was exchanging online messages with a Special Agent from the Pennsylvania Office of Attorney General working in an undercover capacity. In his communications, Traumann repeatedly acknowledged that the “girl” was 14-years-old and made his intentions quite clear that he wanted to have a sexual encounter with her days later. He also knew what he was proposing was against the law, stating in part, “…I am a little concerned … I will go to jail because of your age…” When Traumann traveled by vehicle to meet up with this purported girl near ‘her’ house in Pennsylvania on November 5, 2018, he was taken into custody by law enforcement.
“This defendant traveled here from out-of-state and was prepared to sexually assault a young, vulnerable child,” said First Assistant U.S. Attorney Williams. “I shudder to think what would have happened had Traumann connected online with an actual child rather than an undercover agent. We are grateful to our federal, state and local partners who work relentlessly to identify and stop all those who would prey upon minor children.”
“Homeland Security Investigations special agents are committed to the fight to defend our children from online perpetrators,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Traumann’s attempts to exploit an innocent child is unconscionable. Today’s sentencing, is yet another example of how Homeland Security Investigations and our partners with the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Pennsylvania Office of Attorney General will relentlessly pursue child predators who commit these atrocious crimes.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The case was investigated by Homeland Security Investigations and the Pennsylvania Office of Attorney General, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Wife of “El Chapo” Arrested on International Drug Trafficking ChargesRead the Press Release
The wife of Joaquin “El Chapo” Guzman Loera, leader of a Mexican drug trafficking organization known as the Sinaloa Cartel, was arrested today in Virginia on charges related to her alleged involvement in international drug trafficking.
Emma Coronel Aispuro, 31, a dual U.S.-Mexican citizen, of Culiacan, Sinaloa, Mexico, was arrested today at Dulles International Airport. She is scheduled to make her initial appearance in federal court tomorrow in the U.S. District Court for the District of Columbia via video conference.
According to court documents, Aispuro is charged with participating in a conspiracy to distribute cocaine, methamphetamine, heroin and marijuana for importation into the U.S. Additionally, Coronel Aispuro is alleged to have conspired with others to assist Guzman in his July 11, 2015 escape from Altiplano prison, located in Almoloya de Juarez, Mexico. After Guzman was re-arrested in Mexico in January 2016, Coronel Aispuro is alleged to have engaged in planning yet another prison escape with others prior to Guzman’s extradition to the U.S. in January 2017.
Guzman Loera was convicted by a jury in the Eastern District of New York in 2019 for his role as a leader of the Sinaloa Cartel.
Cornel Aispuro is charged in a one count criminal complaint with a conspiracy to distribute one kilogram or more of heroin, five kilograms or more of cocaine, 1,000 kilograms or more of marijuana, and 500 grams or more of methamphetamines for unlawful importation into the U.S.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
The FBI’s Washington Field Office is investigating the case.
Acting Deputy Chief Anthony Nardozzi and Trial Attorney Kate Wagner of the Justice Department’s Narcotic and Dangerous Drug Section are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Warren County man sentenced to more than four years in prison for superimposing child’s face onto adult pornographyRead the Press Release
DAYTON – A Lebanon, Ohio, man was sentenced in federal court in Dayton to 53 months in prison for creating obscene material from the images of a minor’s face and adult pornography.
Kenneth Michael Laseur, 36, pleaded guilty in August 2020 to possessing obscene visual representations of the sexual abuse of children.
According to court documents, in March 2018, Laseur was under the supervision of a probation officer in Hamilton County as the result of a 2017 conviction for telecommunications harassment. Laseur was arrested for violating the terms of his probation and his cell phone and computer were seized and searched.
On those devices, Laseur possessed images of an actual minor female, who was known to Laseur and less than 12 years of age, that were modified to make it appear that the minor female was engaged in sexually explicit conduct. For example, Laseur superimposed the child’s face onto images of adults engaging in various types of sexual intercourse.
The defendant admitted to his probation officer and to the FBI that he created the images using photo-shopping tools he found on the Internet. As part of his plea, Laseur admitted that the visual depictions lacked any serious literary, artistic, political or scientific value and were obscene.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed Feb. 18, 2021 by U.S. District Court Judge Walter H. Rice. Deputy Criminal Chief Dominick S. Gerace is representing the United States in this case.
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Virginia Beach Tax Preparer Sentenced for Filing Fraudulent ReturnsRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to two years in prison for aiding and assisting the filing of fraudulent and false tax returns.
According to court documents, from 2013 to 2016, Ryan Dalletezze, 42, prepared tax returns through a Virginia Beach company, D&D Tax Services LLC. Dalletezze was a “ghost preparer,” in that he received money as a paid preparer but failed to report or identify himself on his customers’ returns. Dalletezze routinely claimed exemptions on his customers’ returns that were false, such as education and business expenses, energy credits, and business losses.
Dalletezze’s customers had no knowledge of the fraud. Dalletezze personally received the resulting refunds and kept substantial portions for himself. The filing of these false and fraudulent returns resulted in a tax loss of over $291,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-12.
U.S. Settles Dispute with East. St. Louis School District 189 over Its Americorps ProgramRead the Press Release
East St. Louis, Ill. – East St. Louis School District 189 (ESL189) has paid the United States
$38,510 to resolve a civil False Claims Act investigation into the operation of its AmeriCorps program, U.S. Attorney Steven D. Weinhoeft announced today.AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps volunteers
(called members) commit to service for a period of three months to a year in exchange for a living allowance, education awards, and other benefits.To receive an AmeriCorps education award, each volunteer has to complete a specified number of service hours, among other requirements. Grant recipients like ESL189 are responsible for verifying and certifying those hours to the Corporation for National and Community Service, now known as
AmeriCorps, which administers the federal grant program.From 2016 to 2018, ESL189 received over $1 million in federal funding and education awards for its
AmeriCorps program. During that time, the United States claims that ESL189 falsely certified to
AmeriCorps that some of its members had performed the service hours necessary to qualify for an education award, when in fact they had not.Specifically, the United States contends that certain individuals on staff at ESL189’s
AmeriCorps program directed members to falsely inflate their timesheets with “bonus hours” to help them qualify for education awards they otherwise wouldn’t have earned. For example, on one occasion, ESL189 staff instructed members to report 20 service hours on their timesheets just for completing a 15-minute webinar. On another day, members were told that submitting an updated résumé would count for 25 service hours. Members also received bonus hours for attending events, for showing up on time, and in at least one instance for wearing orange.“Encouraging AmeriCorps members to falsify their timesheets robbed the students of East St. Louis of academic help they were entitled to receive,” said AmeriCorps Inspector General Deborah
Jeffrey. “We and our partners at the U.S. Attorney’s Office for the Southern District of
Illinois will vigorously pursue any such frauds.”“Instructing young volunteers to lie on their timesheets was a terrible decision,” U.S.
Attorney Steven D. Weinhoeft said. “This settlement shines a light on that misconduct and should serve as an example to other federal grantees in Southern Illinois. In these cases, it isn’t about the money. It’s about ensuring the integrity of the program and, most importantly, making sure the community actually receives these service hours.”
The claims resolved by the settlement are allegations only; no charges were filed in court, and there has been no determination of liability. ESL189 cooperated in the investigation, which began with an anonymous tip in April 2018. The individuals responsible for the fraud are no longer employed by the school district.The investigation was conducted by the AmeriCorps Office of Inspector General. Assistant
U.S. Attorney Nathan D. Stump handled the matter for the United States.U.S. Attorney Wrigley Announces a Fargo Man Sentenced for Civil Disorder during the May 30, 2020, Fargo RiotsRead the Press Release
Fargo - United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Peter D. Welte sentenced Abdimanan Bana Habib, age 21 of Fargo, ND, to four months incarceration followed by three years of supervised released for the charge of Civil Disorder, 18 USC 231(a)(3). Judge Welte also ordered Habib to pay $2,500 in restitution.
On May 30, 2020, Habib participated in riots that erupted in Fargo following George Floyd’s death in Minneapolis. What started as peaceful protests in Fargo turned violent when rioters, including Habib, broke into several Fargo businesses and buildings, including JL Beers, Vinyl Taco, and the Exchange Building. In several instances, Habib is seen on video throwing what appeared to be rocks or debris toward police officers. Habib was also seen on video trying to ignite what appeared to be a bottle containing alcohol (aka: Molotov Cocktail), but was unsuccessful in doing so.
"The defendant crossed a line when he resorted to violence and destruction," said United States Attorney Drew Wrigley, "and his choice left him wrapped in a federal indictment for his conduct that further elevated a riot that caused property damage and was a threat to human life."
This case was investigated by the Federal Bureau of Investigation and the Fargo Police Department, and is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Alex Stock assigned to the case.
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U.S. Attorney Parsons announces his resignationRead the Press Release
U.S. Attorney Ron Parsons and former Attorney General William BarrSIOUX FALLS, SD – United States Attorney Ron Parsons announced today that he will step down as chief federal law enforcement officer for the District of South Dakota effective February 26, 2021. His resignation was expected and is part of the regular transition of appointed officials from office when a new Administration comes in.
Regarding his departure, Parsons said:
“Serving in this position and working alongside state, local, tribal, and federal law enforcement officials has been the highest privilege of my life. Throughout my term, I’ve had the opportunity to observe the bravery, sacrifice, and dedication of officers at every level of government throughout our state working to protect the public, keep the peace, solve crimes, safeguard victims, and hold criminals accountable for the misery they cause. Law enforcement is a vital, noble, and truly rewarding profession, and I encourage young people of all backgrounds to consider it as a career.
It has been an extraordinary honor to serve in the Department of Justice under Attorney General Barr and Attorney General Sessions and I thank them for their leadership and their confidence in me to lead this office. I would also like to thank Senator Thune and Senator Rounds for recommending me for this position and placing their trust in my abilities to serve the people of South Dakota as their chief federal law enforcement officer.
I’m also very grateful for the friendships and relationships I have developed with members and leaders of the nine federally recognized Indian tribes in South Dakota. I particularly will miss visiting tribal communities and appearing before Tribal Councils to work collaboratively on solutions for improving public safety for everyone.
Above all, I am deeply appreciative of the men and women of the U.S. Attorney’s Office working in each of our three branches in Rapid City, Pierre, and Sioux Falls. Their friendship, professionalism, and good will have made my job as enjoyable as it was rewarding. Every day, their continued hard work and dedication to the pursuit of justice makes South Dakota, and our nation, a better place to live. Any credit for accomplishments during my tenure as United States Attorney belongs solely to them and our law enforcement partners. I will miss them, and they have my enduring thanks.”
Parsons was formally nominated by President Trump in September 2017 and began serving as United States Attorney on January 5, 2018 following his unanimous confirmation by the Senate. Following his departure, he intends to return to private practice in Sioux Falls.
First Assistant U.S. Attorney and Criminal Chief Dennis R. Holmes will serve as Acting U.S. Attorney for the District of South Dakota after Parsons officially leaves his post on February 26.
U.S. Attorney Matt Martin to Resign Effective Feb. 28Read the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin today announced that he has resigned his position as head of the United States Attorney’s Office in the Middle District of North Carolina, effective February 28, 2021.
“The last three years have witnessed incredible accomplishments by the team at the U.S. Attorney’s Office,” said U.S. Attorney Martin. “We have reduced violent crime through Project Safe Neighborhoods and focused prosecutions, protected taxpayers through pursuing COVID-19 relief fraud, healthcare fraud, and grant fraud, and strengthened our local law enforcement relationships to better serve our citizens and protect their rights. Now that the new president has asked for my resignation, I will return to private law practice. I thank the Assistant U.S. Attorneys and our staff, as well as every federal, state, and local law enforcement agency serving central North Carolina. We have worked well together. Though I am leaving this role, I look forward to serving our state and nation alongside you in the future.”
A few highlights of the U.S. Attorney’s Office during Martin’s tenure include:
- Joining the effort in combatting gang violence in Durham, including the prosecution of the persons alleged responsible for the murder of Z’yon Person (20CR463) and Hong Zheng (19CR529) and persons involved in the two recent shoot-outs in front of the Durham County courthouse.
- Prosecuting a large drug conspiracy at Appalachian State University, Duke University, and the University of North Carolina at Chapel Hill.
- Maturing a cyber prosecution program that played a leading role in the unprecedented international take-down of the malware known as “Emotet,” which had infected millions of servers and caused billions of dollars in damage internationally, including in the Middle District.
- Protecting the taxpayers and federal grant integrity through grant fraud matters, including a $112 million recovery from Duke University and a $4.5 million recovery from the University of North Carolina at Chapel Hill.
- Expanding Project Safe Neighborhoods, the federal Department of Justice’s premier anti-gun-violence program, to include sites in Alamance, Lee, Orange, Randolph, and Rowan counties, as well as renewed emphasis in existing sites in Cabarrus, Davidson, Greensboro, High Point, Winston-Salem, and Rockingham.
- Hosting the District’s first Re-entry Symposium and numerous re-entry simulations, all designed to share best practices, aid assimilation, and reduce recidivism among inmates returning to society after serving their sentences.
- Integrating the National Integrated Ballistics Information Network (NIBIN) and Crime Gun Intelligence Centers, in partnership with ATF and police departments in Durham, Greensboro, and Winston-Salem to help solve gun crime incidents and get violent criminals off the street.
- Emphasizing prosecution of those who exploit children, resulting in prosecution of 74 defendants from 2018-20 for serious crimes against children.
- Establishing a program under the Fair Housing Act to pursue landlords who sexually harass and prey upon their tenants, who are typically women coming out of difficult situations and trying to make a better life for their children.
- Facilitating unprecedented coordination between federal authorities and industry groups to combat cybercrime and elder fraud and abuse.
First Assistant U.S. Attorney Sandra Hairston will serve as acting U.S. Attorney until Martin’s successor is nominated by the President and confirmed by the Senate.
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U.S. Attorney Don Cochran Announces DepartureRead the Press Release
NASHVILLE, Tenn. – February 22, 2021 – U.S. Attorney Don Cochran announced today that he is leaving his post at the end of the month, as requested by the White House and the Department of Justice. Cochran submitted his resignation to the White House last week, effective February 28, 2021.
Cochran was sworn in on September 21, 2017, returning to the Justice Department after serving from 1998-2002 as an Assistant U.S. Attorney in Birmingham, Alabama, where he successfully prosecuted the final defendant charged with the 1963 bombing of the Sixteenth Baptist Church.
Cochran leaves a legacy of partnerships with local, state and federal law enforcement agencies which have come together to address a wide variety of critical issues, including violent crime. Under his leadership, the Project Safe Nashville initiative was formed in cooperation with the Metropolitan Nashville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davidson County District Attorney’s Office and others, and quickly doubled the number of federal firearms prosecutions. This initiative was soon expanded to include the entire Middle District of Tennessee and has resulted in hundreds of dangerous, repeat offenders being removed from local communities and sentenced to federal prison.
U.S. Attorney Cochran has also been successful in adding to the number of federal prosecutors in the Middle District, which has greatly expanded the bandwidth of federal prosecutions, including white collar crime, public corruption and organized criminal activity.
“Serving the citizens of the Middle District as their U.S. Attorney for the last three and a half years has been the highest honor of my professional life. I am confident that the team of exceptional lawyers and support staff that we have built and our law enforcement and community partnerships will continue to protect and defend the citizens of the district and live up to the high standards of the Department of Justice,” said Cochran.
Upon Cochran’s departure, First Assistant Mary Jane Stewart will become the Acting United States Attorney.
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Two inmates admit to assaultsRead the Press Release
WHEELING, WEST VIRGINIA – Two inmates at U.S. Penitentiary Hazelton in Bruceton Mills, West Virginia, have admitted to separate assaults on other inmates, U.S. Attorney Bill Powell announced.
David W. Williams, 39, pled guilty today to one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” Williams admitted to using a deadly weapon to assault another inmate in March 2020. Williams was sentenced to 24 months of incarceration to run consecutively to any sentence he is currently serving.
Edward Smith, 38, pled guilty today to one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” Smith admitted to using a deadly weapon to assault another inmate in October 2019. Smith was sentenced to 24 months of incarceration to run consecutively to any sentence he is currently serving.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the cases on behalf of the government. The Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Two Men Plead Guilty in Multimillion-Dollar International Robocalls SchemeRead the Press Release
RICHMOND, Va. – Two Indian nationals pleaded guilty today to conspiracy charges relating to their involvement in an overseas-based robocalls scheme that defrauded thousands of victims out of millions of dollars.
“Pradipsinh Parmar crisscrossed the United States to collect nearly $6 million that was stolen from more than 4,000 victims in an international robocalls scam,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “By falsely impersonating representatives of the FBI, DEA, Social Security Administration, and other government agencies, members of this conspiracy preyed on thousands of unsuspecting victims, many of whom were elderly. This Office is committed to working with our law enforcement partners to combat international financial fraud and elder abuse schemes.”
According to court documents, Pradipsinh Parmar, 41, collected money on behalf of the robocall conspiracy that victims had sent either by a parcel delivery carrier or through a wire service. Upon receiving the victims’ money, Parmar deposited these funds into bank accounts as directed by the conspiracy’s leader, Shehzadkhan Pathan, 39, who previously pleaded guilty on January 15.
Pathan operated a call center in Ahmedabad, India, from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims to send bulk cash through physical shipments and electronic money transfers.
Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officials from the FBI and DEA, and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money via wire transfer as initial installments for falsely promised loans. A significant number of victims who were tricked or coerced into sending bulk cash were elderly.
As part of his guilty plea, Parmar admitted that over a two-year period from March 2017 to April 2019, he traveled to 30 states and collected at least 4,358 wire transfers sent by victims via Western Union, MoneyGram, and Walmart2Walmart, with losses totaling at least $4,312,585. Additionally, Parmar, working for Pathan and another individual, received and attempted to receive at least 91 packages of bulk cash sent by victims from several states, including Virginia, via FedEx, UPS, or USPS, totaling at least $1,593,591. Parmar also received at least 549 counterfeit identification documents sent to him by Pathan for his use in retrieving these packages and wires sent by victims.
In addition to Parmar’s guilty plea today, Sumer Patel, 37, also pleaded guilty for his role in working for Pathan. As reflected in court documents accompanying his guilty plea, from October 2018 to March 2019, Patel retrieved over 250 individual wire transfers from 230 individual victims on behalf of Pathan. These wires totaled $219,520.98. Patel received these wires in the states of Virginia, Connecticut, and Rhode Island, and he deposited the funds as instructed by Pathan. While living in Chesterfield County, Virginia, Patel also received eight packages of cash sent by victims via FedEx. Four of the eight FedEx packages are known to have contained a total of $56,200 in cash.
Parmar and Patel are scheduled to be sentenced on June 18, 2021. Each defendant faces a maximum sentence of 20 years in prison for the conspiracy count, and Parmar faces an additional mandatory minimum sentence of two years on the aggravated identity theft count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Brian Hood and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Tulsa Man Sentenced for Voluntary ManslaughterRead the Press Release
A Tulsa man was sentenced today for voluntary manslaughter in Indian Country after he shot and killed a woman in Philpott Park on July 10, 2020, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced James Michael Landry, 29, to 87 months in federal prison to be followed by three years of supervised release.
"One of the very first cases we opened after the McGirt decision has come to a just conclusion in my last week as U.S. Attorney. Michael Landry is headed to federal prison for killing Crystal Bradley at Tulsa’s Philpott Park. This prosecution is the result of cooperation among state, federal, and tribal entities in pursuit of a common goal- justice," said U.S. Attorney Trent Shores. "I also understand that there is no amount of prison time that can replace the loss of life. My heart goes out to the family of Crystal Bradley as they continue to grieve her tragic loss."
In his November plea agreement, Landry admitted that on July 10, 2020 without malice, but upon a sudden quarrel or heat of passion, he unlawfully shot and killed Crystal Bradley. The victim was an enrolled member of the Cherokee Nation.
The FBI, Muscogee (Creek) Nation Lighthorse Police Department and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Somerset County Man Admits Traveling Outside of United States to Engage in Criminal Sexual ConductRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man today admitted traveling to the Philippines to engage in sex with a minor, Acting U.S. Attorney Rachael A. Honig announced.
James A. Diggs, 45, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information that charged him with traveling outside of the United States to engage in criminal sexual activity.
According to documents filed in this case and statements made in court:
In October 2018, Diggs traveled to the Philippines to meet and engage in sexual activity with Minor Victim-1 in exchange for money and gifts, knowing the victim was a minor.
Foreign travel to engage in criminal sexual activity carries a maximum potential penalty of 30 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea. She also thanked agents of the U.S. Customs and Border Protection, John F. Kennedy International Airport, for their assistance.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
Red Oak Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA – On Friday, February 19, 2021, Mark Fredrick Sandell, age 63, of Red Oak, was sentenced to 180 months in prison and five years of supervised release announced Acting United States Attorney Richard D. Westphal. At the time Sandell committed the present offense, he was on supervised release for a previous conviction of Receipt of Child Pornography. At sentencing, Sandell’s term of supervised release on the prior conviction was revoked and he was ordered to serve 30 months in prison consecutive to the 180-month sentence – for a total sentence of 210 months. Both sentences were imposed by United States District Court Chief Judge John A. Jarvey.
This investigation began when the Nebraska State Patrol conducted peer-to-peer Internet network investigations and discovered that an Internet Protocol address associated with Sandell received child pornography files. On February 27, 2020, a search warrant was obtained and executed at Sandell’s home located in the 1800 Block of Eastern Avenue in Red Oak. Sandell was at his home and admitted to police he was in possession of child pornography. Officers seized numerous electronic devices and a forensic examination identified a total of 483 videos and 125 images of child pornography.
This matter was investigated by the United States Department of Homeland Security - HSI, Nebraska State Patrol, and the Bellevue, Neb. Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Postal Worker Pleads Guilty to Failing to Deliver over 1,300 Pieces of MailRead 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 Sean Barrett, 30, of Sanborn, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to delay or destruction of mail. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that the defendant was employed as a U.S. Postal Service mail carrier assigned to the Lewiston Post Office and responsible for mail deliveries in Lewiston and Youngstown, NY. On October 13, 2020, Barrett was to deliver 1,314 mail pieces, including 502 first class mailings, two certified mailings, and 794 standard mailings, for delivery in the Youngstown area. Instead of delivering those mail pieces, the defendant placed them in a wooded area off Pletcher Road in Youngstown. They were recovered later that day by law enforcement officers. Six days later, on October 19, 2020, fourteen bundles of banded Western New York Value newspapers, dated between August 29 and October 10, 2020, were discovered by USPS agents discarded in a wooded area just west of where the mail pieces were discovered. Barrett was interviewed by USPS agents on October 20, 2020 and admitted to dumping the mail and newspapers instead of delivering them.
The plea is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and the Lewiston Police Department, under the direction of Chief Frank Previte.
Sentencing is scheduled for April 19, 2021, at 2:00 p.m. before Judge McCarthy.
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Pittsburgh Man Pleads to Illegal Possession of a Glock Firearm and a Loaded MagazineRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a to a violation of federal firearms laws brought in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
David Benson, 31, pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon, before United States District Judge William S. Stickman, IV. Mr. Benson is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
In connection with the guilty plea, the court was advised that on June 20, 2019, agents of the Greater Pittsburgh Safe Streets Task Force executed a search warrant at the residence that Benson shared with his girlfriend and codefendant, Raelynn Stevenson, as well as a warrant for Stevenson’s arrest. Agents seized a Glock firearm and a loaded magazine under the defendants’ bed. Benson, who has two prior felony convictions, admitted that he brought the gun into the apartment and placed it under the mattress, as well as acknowledged that he was not lawfully permitted to possess a firearm.
Judge Stickman scheduled sentencing July 8, 2020, at 10:30 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Benson was permitted to remain on bond pending the sentencing hearing.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting 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, moneylaunderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pittsburgh Felon Sentenced to Prison for Cocaine Trafficking Offenses, Money Laundering, and Unlawful Possession of 32 Firearms, Including an AK-47 Semi-Automatic Rifle and a Fully Automatic M16 MachinegunRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court following his earlier guilty plea to one count of conspiracy to distribute and possess with intent to distribute cocaine, one count of distribution of and possession with intent to distribute cocaine, two counts of money laundering, and one count of possession of firearms and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
On February 18, 2021, United States District Judge David S. Cercone sentenced Anthony Bentley, a/k/a Poundcake, 45, to four years of imprisonment followed by four years of supervised release. Bentley has been detained since his arrest on August 28, 2018.
In connection with his guilty plea on December 2, 2019, Bentley admitted that between at least May 2015 and continuing until January 2016, he engaged in a drug trafficking conspiracy involving 500 grams or more of powder cocaine, and that on October 20, 2015, he distributed approximately 489 grams of cocaine to a cooperating informant. Bentley further admitted that he laundered the proceeds of his cocaine trafficking through certain financial transactions related to his purchase of real estate in the Pittsburgh area, including a $156,649.01 cashier’s check used to purchase a commercial property on Laketon Road on May 23, 2014, and a $20,000 payment toward the purchase of a residence on Curtis Street on July 8, 2015. Bentley, a previously convicted felon, also admitted to unlawfully possessing weapons and ammunition recovered during the searches of properties he owned or controlled. Recovered firearms included an AK-47 semi-automatic rifle and an M16 fully automatic machinegun.
Pursuant to a written plea agreement, Bentley also accepted responsibility for engaging in money laundering in connection with three additional real estate transactions dating back to 2013, as well as his possession of the machinegun. As part of his sentence, Bentley agreed to forfeit, among other things, various items of jewelry and approximately $218,000 in cash seized during a search of his home. He also agreed to an additional forfeiture money judgment in the amount of $75,000.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The task force comprises members drawn from federal law enforcement agencies, including the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, in partnership with state and local law enforcement agencies, including the Allegheny County Police Department, Pittsburgh Bureau of Police, and the Pennsylvania State Police. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Sentenced to 12+ Years for Gunpoint Robbery of East Mount Airy Corner StoreRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Donnie Smith, 41, of Philadelphia, PA was sentenced to 12 years and three months in prison, and five years of supervised release, by United States District Court Judge Jan E. DuBois for Hobbs Act robbery, carrying and using a firearm during the commission of a violent crime, and illegally possessing a weapon as a convicted felon. The charges stem from an armed robbery of a corner grocery store in the East Mount Airy section of Philadelphia in March 2019.
In February 2020, the defendant and two co-defendants, Abid Stevens and Maurice Quinn, were convicted on all charges after trial. During the incident, Quinn entered RD Grocery and complained to a store employee that the store’s ATM had given him fake money. Quinn then attempted to grab both money from the register and a firearm kept by the owner behind the counter. Unable to grab the money or firearm, Quinn left and returned with Smith and Stevens, both of whom were armed with black semi-automatic handguns. Smith brandished his firearm in the store employee’s face and took the firearm from behind the counter. Quinn then again attempted to take cash from the register but failed. He demanded that the store employee open the register for him; the employee withdrew $100 in cash and the defendants left.
“The defendants were so determined to rob this store, that the first would-be robber brazenly returned with armed reinforcements after failing to accomplish his goal on his own,” said Acting U.S. Attorney Williams. “His complete disregard for others and for the law is shocking. Hopefully others will learn from Smith’s example -- if you rob a store in Philadelphia with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to working with our law enforcement partners to bring criminals like Smith to justice.”
“The imposition of this sentence by the court sends an important message that there are significant consequences for committing acts of violence within our community. The dedicated law enforcement personnel responsible for investigating and prosecuting this defendant should be commended for bringing closure to those personally affected by the crime, as well as protecting the entire community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The robust partnership between ATF and the Philadelphia Police Department led to a quick arrest, undoubtedly preventing additional violence and harm to the community. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert Eckert and Special Assistant United States Attorney Ashley N. Martin.
Peoria Sex Offender Sentenced to 15 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. –U.S. District Judge James Shadid has sentenced a Peoria man, Nicky McDonald, who is a registered sex-offender, to 15 years in prison for downloading and possessing images and videos of children being sexually exploited. In addition, at sentencing, on Feb. 11, 2021, Judge Shadid ordered that McDonald, 61, remain on supervised release for a period of life following the completion of his prison term.
On Oct. 26, 2020, McDonald entered guilty pleas to downloading and possessing child pornography in August 2019. At the time of the offense, McDonald was homeless and living at the Peoria Rescue Mission at 601 SW Adams St., across the street from the Peoria Police Department. McDonald admitted that he used the free Peoria Police Department Wi-Fi to view and download child pornography on his cellphone.
At the time of the crimes, McDonald was required to register as a sex offender under Illinois law after pleading guilty in 1993, to aggravated criminal sexual abuse of a minor in Edgar County, Ill. McDonald was also convicted of attempted aggravated criminal sexual abuse of a minor in Edgar County, Ill., in 1997.
McDonald has remained in law enforcement custody since he was arrested and charged in October 2019, in Peoria County. He was indicted on the federal charges in January 2020, and was ordered to remain detained in the custody of the U.S. Marshals Service.
The U.S. Secret Service; the Peoria County Sheriff’s Office; and, the Peoria Police Department conducted the investigation. Assistant U.S. Attorney Paul Morris represented the federal government in the case prosecution in coordination with the Peoria County State’s Attorney’s Office.
Patrick announces resignationRead the Press Release
HOUSTON – U.S. Attorney Ryan K. Patrick has announced he will resign as chief law enforcement officer for the Southern District of Texas (SDTX) effective midnight Feb. 28.
“It has been the honor of a lifetime to serve our nation and our state as United States Attorney,” said Patrick. “The Southern District is staffed with amazing career men and women who wake up every day ready to represent the United States, and I consider it a high honor that I was able to do the same alongside them for the past three years.”
Patrick was the 23rd presidentially-appointed U.S. Attorney for the Southern District of Texas (SDTX). He was responsible for prosecuting and defending the interests of the United States in one of the largest districts in the country - covering 44,000 square miles and representing nearly nine million people. He oversaw over 450 employees, including approximately 210 Assistant U.S. Attorneys who cover the seven offices across the district.
In just over three years as U.S. Attorney, prosecutors in his office charged nearly 25,000 defendants in almost 22,000 cases consistently ranking as the top or second highest district nationally in overall criminal prosecutions. In fact, felony prosecutions increased 39% in fiscal year 2019 from the previous 12% increase, setting a new case record. Overall, criminal matters referred to the office increased 121% in his first year. The office maintained a 95-96% conviction rate while Patrick served as U.S. Attorney.
Patrick began serving as U.S. Attorney Jan. 8, 2018. In his first year alone, his office found itself at the forefront of a nationwide immigration debate, in the middle of investigating one of the deadliest school shootings and dealing with the complexities associated with an almost unprecedented budget sequestration.
Soon after his arrival to the office in 2018, Patrick emerged as a prominent leader of the ever-increasing immigration debate. He frequently discussed and addressed challenging border issues and protecting people from the harms associated with illegal immigration and human smuggling.
In May 2018, the district also saw the tragedy of the deadly school shooting in Santa Fe. Patrick witnessed the aftermath firsthand. He communicated with parents and others and worked with federal, state and local law enforcement, pledging office resources wherever needed.
Also in 2018, Patrick significantly starting increasing staffing in what is now the busiest criminal docket in the country. The office hired more than 80 attorneys and 80 support staff during his tenure to meet increasing caseloads in South Texas and Houston – due in part to the rising number of illegal entrants and reentrants in Laredo, McAllen and Brownsville, spiking violent street crime in Houston and Corpus Christi and the need for a cadre of civil prosecutors for border fence construction projects along the Rio Grande.
During his administration, the district saw the arrest, conviction and sentencing of a unique case against a local couple who committed international kidnapping of their grandson. Similarly, Patrick fought for the rights of victims, as evidenced by the unprecedented check presented to a woman subjected to labor trafficking. “This woman now has a better chance at a fresh start,” he said.
Particular emphasis in Houston was placed on prosecuting violent crime, with significant prosecutions for bank and armored robberies as well as firearms offenses. In 2019, the SDTX increased violent crime prosecutions by 57%. That year, a judge granted to government’s request for an upward variance and sent a Houston man to prison for 540 months for the killing of a postal worker and another imposed life sentences for an armored car murder crew. The office also pursued similar crimes in other divisions, such as a Laredoan who was ordered to serve 300 months for carjacking and other violent crimes.
The district also saw the first increase in drug prosecutions in five years thanks to a renewed emphasis on local impact drug cases including deadly synthetic drugs and the growing opioid epidemic. In Brownsville, for example, a local man is now serving life in prison for his conviction of meth distribution. Corpus Christi also saw the conviction and sentencing of eight people involved in the deadly distribution of synthetic cannabinoids.
Fraud has also been a consistent problem SDTX prosecutors have battled. One notable case diligently pursued under his administration involved a woman who swindled professional athletes out of millions. She later received the maximum sentence under federal law.
Patrick also placed a significant emphasis on matters of public corruption, believing that those in positions of public trust must be held to the highest levels of integrity. Under Patrick’s leadership, former Houston police officers now face federal civil rights charges. A former Texas judge himself, Patrick was also particularly incensed with a state judge ultimately sent to prison for bribery and obstructing justice, noting “He didn’t just tip the scales of justice, he knocked it over with a wad of cash and didn’t look back.”
Patrick also noted “The protection of life is the most sacred job law enforcement has.” Two notable matters of national security that began under his administration remain pending – one against a Sugar Land man who is pending trial and the other who was convicted of attempting to provide material support to a foreign terrorist organization.
Not to be forgotten is the large caseload of civil litigation in some of the most difficult and important cases the government faces, including resolution of the border fence issues, defending serious medical malpractice claims and recovering millions in criminal debt and civil fraud. Of note, a Laredo doctor Laredo eye doctor paid over $3M to resolve fraud claims. The division’s civil rights group also helped resolve numerous claims such as an employment discrimination matter on behalf of U.S. Army National Guard reservist.
Additionally, the SDTX continued to consistently rank as one of highest in terms of federal health care fraud prosecutions throughout the nation. Continuing its partnership with the Health Care Fraud Strike Force, the district successfully convicted durable medical equipment owners, doctors, billers and many more to include a Texas rheumatologist for a $325 million health care fraud scheme. Patrick noted “Patients were put through unneeded anxiety and pain so the doctor could make millions. He won’t need it where he’s headed.”
Under his leadership, prosecutors also continued the fight in bringing criminals to justice and protecting the most vulnerable members of our society through the efforts of Project Safe Childhood. In addition to speaking at annual Children’s Assessment Center’s kickoff events, he was also proud to open the new Human Trafficking Rescue Alliance offices. The SDTX convicted, on average, one defendant each week charged with these types of crimes during his tenure. Notable matters included men who are now serving life in federal prison for stealing the childhood of their young victims - one who exploited a barely teenage girl he met via social media and another who trafficked a 10-year-old girl for three years.
During his tenure, Patrick also lead other efforts, such as hosting roundtables on sexual harassment in housing and in the workplace and helped SDTX become part of the Transnational Elder Fraud Task Force.
Patrick is also a strong advocate of our law enforcement partners, placing an emphasis on outreach to them and making sure every chief, sheriff and constable had his phone number. He strongly conveyed that federal law enforcement was willing to assist any agency with any problem, to include cases he cited as “white collar storm looting” in relation to Hurricane Harvey.
Patrick began his career as an Assistant District Attorney in Harris County. During that time, he prosecuted all types of criminal cases, including spending three years as an on-call prosecutor and investigator with the Vehicle Crimes Section focusing on drunk driving fatalities. He finished his time at the office as a member of the Major Offenders Division.
In 2012, then Texas Governor Rick Perry appointed Patrick Presiding Judge of the 177th state district court. He was elected to a full four-year-term later in 2012.
Immediately prior to serving as U.S. Attorney, Patrick was in private practice.
Patrick graduated from Baylor University in 2001 and South Texas College of Law in 2006. He is married with four children.
Oyster Company and 12 Others Indicted for Illegally Harvesting Raw OystersRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned an indictment charging a Cameron Parish company and 12 individuals with illegal harvesting and selling raw oysters in violation of the Lacey Act.
Those charged in the indictment are as follows:
- Bay Fresh Oyster Company, Inc. (“BFO”), with its principal place of business in San Leon, Texas, and which also maintained and operated a location in Cameron, Louisiana;
- Adley Leo Dyson, 71, of Cameron, Louisiana;
- Clarence Dyson, III, 46, of Cameron, Louisiana;
- Kirk Patrick Daigle, 47, of Cameron, Louisiana;
- Brandon Kent Duhon, 24, of Lake Charles, Louisiana;
- Kent Anthony Duhon, 58, of Cameron, Louisiana;
- Robert Alton Watson, 41, of Cameron, Louisiana;
- Kerwin Tyler Perry, 25, of Cameron, Louisiana;
- Jenson Kyle Griffith, 28, of Cameron, Louisiana;
- Kasey Lyn Mock, 28, of Cameron, Louisiana;
- Terry Wayne Dickens, 41, of Cameron, Louisiana;
- Phillip Cecil Dyson, 59, of Cameron, Louisiana; and
- Phillip Cecil Dyson, II, 38, of Cameron, Louisiana.
The indictment alleges that from approximately March 1, 2019 through May 5, 2019, BFO and the 12 named co-defendants listed above (“Defendants”), conspired to harvest raw oysters from Calcasieu Lake in violation of Louisiana law and knowingly made and submitted and caused to be submitted, false records for those harvested oysters that were intended to be transported in interstate commerce.
According to the indictment, the Defendants knowingly engaged in conduct that involved the sale and purchase of oysters knowing that they had been taken in violation of the laws and regulations of Louisiana. The indictment further alleges that oysters were not reported as required; oysters were harvested in amounts in excess of those authorized by state law to be harvested; oysters were harvested during illegal harvesting hours; oysters were not refrigerated within the required time by state law; oysters were harvested by those who failed to possess a valid Calcasieu Lake Harvest Permit or whose permit had been revoked; oysters were falsely reported as being harvested by those with valid permits; and oysters were harvested from areas closed to oyster harvesting.
The illegally harvested oysters were then sold by the harvester and purchased by BFO at its Cameron, Louisiana, location where records were falsified to reflect that the oysters had been harvested in compliance with Louisiana law. BFO subsequently transported those oysters across state lines to their facility in San Leon, Texas. Sacks of oysters were not tagged prior to removal from the vessels as required by Louisiana law but were later tagged by BFO employees and agents as being harvested by harvesters other than the actual harvesters. Oysters had been harvested by harvesters with revoked permits, were harvested in excess of the sack limit set by Louisiana law, and/or were harvested outside the harvesting hours set by Louisiana law. The indictment alleges that the harvesting and dealing in raw oysters in violation of state law violated the federal Lacey Act, which among other things, makes it unlawful to transport, sell, receive, acquire, or purchase in interstate commerce any fish or wildlife that is taken, possessed, transported or sold in violation of any law or regulation of any state.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
An initial appearance for the Defendants has been set for March 10, 2021.
The U.S. Department of Wildlife & Fisheries and Louisiana Department of Wildlife & Fisheries are conducting the investigation and Assistant U.S. Attorney David J. Ayo is prosecuting the case.
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Orlando Man Sentenced to More Than Four Years for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Edison Denizard (41, Orlando) to four years and nine months in federal prison for participating in a conspiracy to commit wire fraud. As part of Denizard’s sentence, the court also ordered him to forfeit the real property located at 7617 Toscana Boulevard in Orlando, which is traceable to proceeds of the offense. In addition, the court entered a $1,677,794.57 money judgment against Denizard, which represents the proceeds that Denizard received as part of the offense.
Denizard had pleaded guilty on October 19, 2020.
According to court documents, between March 2016 and June 2017, Denizard raised millions of dollars from dozens of victims who believed that they were investing in specific music concerts through legitimate businesses owned by Denizard and a co-conspirator, Andres Fernandez. Fernandez and Denizard lured investors by guaranteeing them large monetary returns and promising that all of the funds that they provided would be invested in events by top artists, including Drake, Garth Brooks, Pitbull, The Weeknd, and Maná. In fact, neither Denizard nor Fernandez was involved in most of the events.
Denizard used most of the funds that he had received from investors to pay fraudulent “investment returns” to earlier investors and for his own personal use, including to purchase a new lakefront residence, to make payments on his new luxury vehicle, and to stay in luxury hotels. The total amount of victims’ losses attributable to Denizard are $7,479,453.
Fernandez, who was the instigator of the scheme, previously pleaded guilty to 12 counts of wire fraud and was sentenced last year to 10 years in federal prison.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt. The forfeiture was handled by Assistant United States Attorney Nicole Andrejko.
Omaha Woman Sentenced to 72 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Michelle Jensen, 36, of Omaha, Nebraska, was sentenced on February 19, 2021 by United States District Judge Robert F. Rossiter, Jr. for Conspiracy to Distribute 5 grams or more of pure methamphetamine. Jensen received a sentence of 72 months with a four-year term of supervised release to follow. There is no parole in the federal system.
Beginning in March of 2019, investigators with the Omaha Police Department began investigating Isaiah Nevins and Michelle Jensen for distributing methamphetamine in the Omaha-metro, area. Using a confidential witness, investigators made a series of controlled buys from Nevins and Jensen. Jensen was involved in controlled buys that occurred on March 20, 2019 and March 29, 2019 for 12.3 grams and 24 grams of pure methamphetamine, respectively.
Nevins was also arrested for his role in the conspiracy, which included the same two controlled buys that Jensen was involved in, as well as additional controlled buys that occurred on April 4, June 4, and June 25, 2019. Nevins is scheduled to enter a plea of guilty on March 5, 2021, before United States District Judge Robert F. Rossiter, Jr.
This case was investigated by the Omaha Police Department.
Omaha Woman Sentenced for Methamphetamine and Identity TheftRead the Press Release
United States Attorney Joe Kelly announced that Sheila Likness, 44, of Omaha, Nebraska, was sentenced today in Omaha by Senior United States District Judge Joseph F. Bataillon to 72 months’ imprisonment for Possession with Intent to Distribute 5 Grams or More of Methamphetamine (Actual), Sale of a Card Purporting to be a Social Security Card, and Aggravated Identity Theft. There is no parole in the federal system. After her release, Likness will serve a 5-year term of supervised release.
From October 11, 2019 to December 17, 2019, Likness and Thomas Povondra engaged in a scheme to provide a police officer working in an undercover capacity with personal identification documents with a name and personal identifying information that had been obtained off the dark web. On October 11, 2019, Povondra drove Likness to meet with the undercover officer at a Starbucks location in Omaha. During that October 11, 2019 meeting, Likness informed the undercover officer that she could and would sell him identification documents such as a fake driver’s license, social security card, birth certificate, passport and secondary forms of identification such as a YMCA card for $4,000. Likness stated that she obtains the identification information off the dark web. She also claimed that these documents would be able to pass scrutiny from law enforcement if the undercover officer came into contact with law enforcement.
Likness met with the undercover officer on October 31, November 5, and November 11, 2019. During these meetings, Likness sold the undercover officer 13.37 grams, 22.52 grams, and 25.08 grams of methamphetamine (actual). During these meetings, Likness discussed the progress on the identification documents that she had promised. At the November 5, 2019 meeting, Likness received $1,750 as a down payment for the documents. On November 21, 2019, Likness sent the undercover officer a picture of a passport in the name of Victim 1 with Victim 1’s date of birth.
On December 3, 2019, Povondra met with the undercover officer in the area of 153rd and Q Streets in Omaha. Povondra gave the undercover officer a blue plastic folder, which had documents purporting to be a Social Security Card, a birth certificate, a high school diploma, and high school transcripts in the name of Victim 1 with Victim 1’s personal identifying information such as date of birth and Social Security Number. Povondra discussed the progress of the passport with the undercover officer and the status of its production. Povondra also received an additional $100 from the undercover officer for the delivery of the documents.
On December 17, 2019, a search warrant was executed at the residence shared by Likness and Povondra in Omaha. Numerous computers, a credit card scanner, blank ID and credit cards, laminate material, blank checks, and papers with the identifying information of other individuals were located. Following the December 17 search warrant, Povondra provided a laptop belonging to Likness to a third-party that had not been found by law enforcement during the search warrant. Povondra told the third-party to place the contents of the laptop on the external hard drive and then destroy the laptop.
Povondra was sentenced to 42 months’ imprisonment on November 9, 2020.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, the Social Security Administration-Office of the Inspector General, and the United States Department of State-Diplomatic Security Service.
Omaha Man Sentenced to 20 Years for Conspiring to Distribute Methamphetamine and Possessing a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Felipe Hernandez Molina, age 26, of Omaha, Nebraska, was sentenced today in federal court in Omaha, after having pleaded guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Connection with a Drug Trafficking Crime. Senior United States District Court Judge Joseph F. Bataillon sentenced Felipe Hernandez Molina to 20 years’ imprisonment. Molina’s sentence included a consecutive 5-year term of imprisonment for possessing a firearm while distributing drugs. After completing his term of imprisonment, Molina will be required to serve a 10-year term of supervised release as there is no parole in the federal system. Molina also forfeited all the U.S. currency seized during his arrest.
On September 20, 2019, officers with the Omaha Police Department made a traffic stop near 17th and Castelar in Omaha, after observing a car driven by Molina commit two traffic infractions. Upon making contact officers noticed several indicators that Molina was involved in criminal activity and he was ordered out of the car for a pat down search. While exiting the car, Molina placed a bundle of U.S. currency inside the driver’s door. A separate bundle of currency was found on his person. Officers called for a drug detecting canine that alerted to the odor of narcotics coming from within the car. A search revealed drug paraphernalia, a total of $7,836 in cash, approximately 144 grams of methamphetamine, and a black Ruger SR22 handgun all near the center console. During a post-arrest interview at the scene, Molina admitted to selling methamphetamine and purchasing multiple pounds.
This case was investigated by the Omaha Police Department and Bureau of Alcohol Tobacco, Firearms, and Explosives task force as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced for Distribution of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Andrew L. Foster, 36, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution and receipt of Child Pornography. Senior United States District Judge Joseph F. Bataillon sentenced Foster to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Foster will serve 8 years of supervised release.
In July 2019, members of the FBI Child Exploitation and Human Trafficking Task Force began investigating a Cyber Tipline Report from Dropbox stating that a user had uploaded multiple images and videos of child pornography. On August 1, 2019, officers executed at search warrant at Foster’s residence in Omaha and seized several electronic devices. During execution of the warrant, officers contacted Foster who admitted to collecting child pornography in multiple online storage platforms and admitted to sending child pornography to other online users in order to gain their trust. Four of the devices seized from Foster’s residence were determined to contain at least 1,989 images and 673 videos depicting child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation.
Office Manager Is Charged with Embezzling More Than $1 Million from His Former EmployerRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte returned a federal criminal indictment last week, charging Richard Allen Clark, 55, of Lenoir, North Carolina, with federal offenses arising from his embezzlement of more than $1 million from his former employer, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The federal charges include mail fraud, money laundering and filing false tax returns. Clark had his initial appearance in court today before U.S. Magistrate Judge David C. Keesler.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division 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 criminal bill of indictment, beginning January 1, 2013 through May 31, 2019, Clark was employed as an office manager for two family owned businesses in Lenoir. As an office manager, Clark was responsible for, among other things, handling the companies’ bookkeeping and financial records, making payments to vendors and the IRS, and reconciling the companies’ bank accounts. As the indictment alleges, Clark used his position and his access to the companies’ financial records and bank accounts to embezzle more than $1 million from his employers.
According to allegations in the indictment, Clark embezzled money from his employers in a number of ways. In some instances, the indictment alleges, Clark created company checks payable to himself and falsified the entries in financial records. Clark also allegedly diverted to himself company payments to IRS that were supposed to cover payroll taxes. In addition, indictment also alleges that Clark stole money from a company bank account the owner had directed Clark to close. Instead of closing the account, Clark allegedly used it to steal from his employer, by instructing customers to make payments to that account and then diverting the funds for his personal use.
According to allegations in the indictment, Clark used the stolen funds to pay for his personal lifestyle, including to make payments for his home mortgage, to make auto loan payments for an F-150 truck and other vehicles, to install a home theater system, and to pay for travelling and shopping expenses, among other things.
During the relevant period, Clark allegedly failed to claim the additional income he stole on his IRS tax returns. The indictment alleges that in addition to his earned wages, Clark moved over $1 million from his employers into various personal bank accounts he controlled. However, Clark falsely declared only his legitimate W-2 income on his 2014 through 2018 U.S. Joint Income Tax Returns, resulting in approximately $195,000 in lost taxes to the United States.
Clark is charged with five counts of mail fraud affecting a financial institution, which carry a maximum prison term of 30 years in prison and a $ 1 million fine per count; five counts of making and subscribing a false return, which carry a maximum term of three years in prison and a $100,000 fine per count; and one count of money laundering, which carries a maximum penalty of 20 years in prison and a $500,000 fine.
The charges in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked IRS-CI, the USPIS, and the Caldwell County Sheriff’s office for their investigation which led to the charges.
Assistant U.S. Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Morris County Man Sentenced to 18 Months in Prison for Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man who owned and operated construction businesses in Morris County was sentenced today to 18 months in prison for filing false tax returns that failed to report all his personal income, acting U.S. Attorney Rachael A. Honig announced.
Roger Magill, 51, of Wharton, the owner and operator of Reliable Construction, aka Reliable Paving, and Hackensack Pavers, aka Hackensack Paving, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to one count of an information charging him with tax evasion. Judge Wigenton imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Between 2014 and 2016, obtained hundreds of thousands of dollars in personal income from his construction businesses, which he attempted to hide from the IRS by using a fictitious identity to cash business checks at several check cashing businesses. Magill attempted to hide his personal income by depositing money into bank accounts that he did not report to the IRS. He evaded paying $261,758 in personal income taxes.
In addition to the prison term, Judge Wigenton sentenced Magill to two years of supervised release.
Acting U.S. Attorney Honig credited agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jamel Semper, Chief of the Organized Crime and Gangs Unit in Newark.
Monongalia County woman sentenced for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teresa Miller, of Morgantown, West Virginia, was sentenced today to 41 months for a firearms violation, U.S. Attorney Bill Powell announced.
After a bench trial in October 2020, Miller, age 47, was found guilty of one count of “Unlawful Possession of a Firearm.” Miller, having previously been convicted of a drug crime, is prohibited from having a firearm. Miller had a .380 caliber pistol and a .45 caliber pistol in July 2018 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgantown Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Lowell Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Lowell man was sentenced today for conspiracy to distribute fentanyl.
Steven Perez, 30, was sentenced by U.S. District Court Judge William G. Young to 70 months in prison and four years of supervised release. In September 2020, Perez pleaded guilty to conspiracy to distribute and possession with intent to distribute 40 grams or more of fentanyl. Perez was arrested and charged with co-defendant Anthony Holloway, of Methuen, in December 2019.
Over the course of several months, law enforcement investigated Perez and Holloway’s fentanyl distribution operation. Perez and, allegedly, Holloway used an elderly housing complex run by the Methuen Housing Authority to conduct drug sales. Upon an execution of a search warrant at Perez’s residence, agents seized 61 grams of fentanyl.
Holloway previously pleaded not guilty and is pending trial.
United States Attorney Andrew Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office; and Acting Methuen Police Chief Kristopher McCarthy made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local, state and federal prosecutors launch Georgia Cyber Fraud Task ForceRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia has joined forces with Metro-Atlanta District Attorneys, the Office of the Attorney General, the FBI Atlanta Field Office, U.S. Secret Service, state, and local law enforcement to combat the criminal movement of cyber fraud proceeds through banks in the Atlanta area by employing Business Email Compromise (BEC) fraud schemes.
“We are grateful for the participation and commitment of our metro District Attorneys to come together in a coordinated effort to address this criminal enterprise,” said Acting U.S. Attorney Kurt Erskine. “The money mules that facilitate the transfer of fraud proceeds make these cyber fraud crimes lucrative. Interrupting that flow of money is an important part of disrupting the criminal enterprise. Working together creates a strong network of prosecutors and law enforcement, across counties, who are addressing the problem through criminal prosecution and community outreach. It is this kind of intelligence and resource sharing that make our law enforcement efforts more effective and our businesses and citizens safer.”
“Those perpetrating BEC scams can target anyone who relies on email for both personal and professional communications,” said Georgia Attorney General Chris Carr. “In fact, in recent years, the FBI reported BEC crimes account for 40 percent of all cybercrime losses. Our Prosecution Division is joining federal, state and local partners to educate Georgia citizens and businesses about the telltale signs and stop the criminals facilitating this crime.”
“As District Attorney I’m committed to protecting the citizens of Clayton County from any and all crimes. The advancements in technology have created new ways to victimize the citizens of the State of Georgia. I look forward to working with the Georgia Cyber Fraud Task Force and the other agency partners,” said Clayton County District Attorney Tasha Mosley.
“Our Office is pleased to join the Georgia Cyber Fraud Task Force in the fight against cyber fraud. Our small businesses and senior citizens have been victimized by cyber fraud crimes at home and abroad. By focusing on individuals who move those stolen funds here in Georgia together we can make a real difference in this fight. Prevention is most important. Anyone who uses email and/or cellular communication is susceptible to cyber fraud. Be suspicious. Verify all such requests with a phone call. Understand that once the money is sent, it's gone,” said Cobb County District Attorney Flynn D. Broady Jr.
“Cyber fraud knows no bounds. By working with our local, state, and federal partners, we can curtail the fraud that harms businesses and individuals- often elder persons-who are unwittingly caught up in these fraudulent schemes. The DeKalb County District Attorney’s Office welcomes the opportunity to join forces with law enforcement agencies across the state and across the country,” said DeKalb County District Attorney Sherry Boston.
"I promised the citizens of Fulton County that I would modernize the efforts of our office to protect our community from criminal enterprises. This opportunity to join with the Acting U.S. Attorney and fellow metro Atlanta District Attorneys to fight BEC fraud schemes is an important part of that process,” said Fulton County District Attorney Fani T. Willis.
“Financial cyber fraud is a crime that our office takes seriously. It is not a victim-less crime and must be prosecuted at every turn! Our District is thankful for the Cyber Fraud Task Force and the opportunity to continue working to curb this type of crime,” said Patsy Austin-Gatson, District Attorney, Gwinnett Judicial Circuit.
“The FBI makes it a top priority to investigate these cyber-crimes that have affected thousands of victims, many of them elderly citizens, small businesses, and people whose entire livelihoods have been wiped out by scammers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But it takes more than one law enforcement agency. Together with our federal, state, and local partners we are taking on this problem by educating our community and investigating and prosecuting criminals to make it less lucrative to commit these crimes.”
“We are proud to join with our law enforcement partners to collaboratively bring to justice those who prey on our communities,” said Special Agent in Charge Steven Baisel, U.S. Secret Service Atlanta Field Office. “The damage these schemes cause to people is often devastating. Any effort we can make to turn the tide of these crimes is worthwhile.”
“With advancements in technology, now more than ever, Georgians and Georgia businesses are highly susceptible to online fraud. By partnering with the members of this task force, the GBI plans to use the expertise we have in cyber investigations to help combat these fraudulent schemes,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“I’m confident that the work of the Georgia Cyber Fraud Task Force will change the behavior of criminals and unmask those who hide behind computers and technology to commit such heinous crimes. The collaborative efforts among law enforcement partners will put the pressure on scam artists and make them think twice before committing any type of fraud schemes in the metro Atlanta area,” said Chief Rodney Bryant, Atlanta Police Department.
“Cyber fraud is a daily threat that continues to grow at an alarming rate with Business Email Compromise (BEC) schemes costing individuals and corporations millions of dollars each year. We are excited to be a part of this Cyber Fraud Task Force with dedicated investigators and prosecutors from the local, State, and Federal levels. Gathering the best fraud investigators and prosecutors in one Task Force is the innovative formula needed to combat these sophisticated criminal networks that operate without jurisdictional boundaries,” said Chief Kenneth DeSimone, Sandy Springs Police Department.
“Cyber criminals are not constrained by geographical boundaries when they conduct their fraudulent schemes against our communities. The Smyrna Police Department continually and actively fosters relationships with our local, state, and federal law enforcement partners to actively seek out and apprehend these criminals no matter where they are,” said Chief Robert Harvey, Smyrna Police Department.
Business Email Compromises exploit the fact that so many of us rely on email to conduct business—both personal and professional. In a BEC scam, criminals send an email message that appears to come from a known source making a legitimate request, as in the examples below:
- A vendor a company regularly uses sends an invoice with an updated bank account number.
- A company CEO asks their assistant to purchase dozens of gift cards to send out as employee rewards, and then asks for the serial numbers so they can email them out right away.
A homebuyer receives a message from their title company with instructions on how to wire the down payment.
In scams like these, the unsuspecting victim sends thousands—or even hundreds of thousands—of dollars to the criminal.
Over the last five years, BEC crimes have evolved into the predominant cyber threat businesses face.
In 2020, the FBI IC3 – the primary law enforcement arm to combat BEC crimes – reported 1,303 incidents with $462,967,963.72 in losses and $380,211,432.04 reported frozen by financial partners (yielding a 79 percent success rate of funds frozen).
From global reporting, comprised of multiple law enforcement and financial partners, between 2016 and 2019, businesses have lost at least $26 billion as a result of BEC scams. Based on the most recent FBI IC3 report, losses from BEC attacks grew another 6 percent in 2020—accounting for 45 percent of all cybercrime losses over the course of the year.
Surprisingly, a quarter of all BEC attackers had a home base in the United States. Nearly half of U.S.-based BEC actors were located in five states with clusters of actors around a handful of metro areas, including the metro-Atlanta area.
By making a coordinated and concerted effort to focus on suspects moving fraud proceeds in the metro-Atlanta area, the Cyber Fraud Task Force hopes to disrupt the financial structure that makes BEC fraud schemes so lucrative for criminals. Additionally, the task force aims to partner with community leaders and organizers to educate the public about avoiding these scams.
The Cyber Fraud Task Force is comprised of members from the U.S. Attorney’s Office for the Northern District of Georgia, the Office of the Georgia Attorney General, FBI Atlanta, the Georgia Bureau of Investigation, the U.S. Secret Service Atlanta Field Office, the Atlanta Police Department, the Sandy Springs Police Department, the Smyrna Police Department, the DeKalb County District Attorney’s Office, the Gwinnett County District Attorney’s Office, the Fulton County District Attorney’s Office, the Clayton County District Attorney’s Office, and the Cobb County District Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- A vendor a company regularly uses sends an invoice with an updated bank account number.
Leader of cocaine trafficking organization sentenced to two decades in federal prisonRead the Press Release
BRUNSWICK, GA: An Atlanta man born and raised in Savannah who led a drug trafficking organization that transported and distributed cocaine and other drugs into the coastal Georgia area has been sentenced to 20 years in federal prison.
Omar Griffin, 41, of Atlanta, was sentenced to 240 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Conspiracy to Possess with Intent to Distribute Five Kilograms or More of Cocaine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Griffin also must serve 10 years of supervised release.
There is no parole in the federal system.
“Omar Griffin was a major importer of cocaine and other drugs into the Savannah area, a wholesaler who delivered illegal drugs for widespread distribution in the coastal area,” said Acting U.S. Attorney Estes. “We commend the tireless investigation and relentless pursuit by the DEA, U.S. Marshals Service and other agencies in Operation Snowplow, who identified, pursued, and captured Griffin and his co-conspirators, shutting down their organization.”
Twelve other defendants in the investigation have been sentenced to prison terms of up to 240 months after all pleading guilty to related charges. Two other defendants are fugitives.
Operation Snowplow was the largest single seizure of cocaine to date by the Chatham-Savannah Counter Narcotics Team (CNT). According to court documents and testimony, Griffin, who has several prior Chatham County convictions for drug trafficking, managed an organization that trafficked more than 35 kilograms of cocaine and other drugs from Texas and California destined for the Savannah area, from as early as February 2014 until his capture in March 2020. Some of the drugs were packaged in children’s toys and DVD players, concealed in cargo vans and truck trailers for shipment to Savannah, and distributed to mid-level dealers operating from several Savannah-area residences.
On March 5, 2018, law enforcement officers intercepted a shipment of 25 kilograms of cocaine that had been driven from Texas to a hotel in Richmond Hill, Ga., concealed inside a cargo trailer. Officers also seized more than $387,000 in cash that had been exchanged for the cocaine. Griffin evaded capture by stealing, and then crashing, a police car.
Following his escape, Griffin fled to Texas where he continued to traffic significant quantities of narcotics. In January 2020, he attempted to transport approximately four kilograms of cocaine in a commercial flight from Texas to Georgia. On March 31, 2020, law enforcement arrested Griffin in Houston and seized nearly seven kilograms of cocaine and more than a kilogram of ecstasy (MDMA) in connection with arrest.
In total in this investigation, investigators seized approximately 35 kilograms of cocaine, more than 30 pounds of marijuana, nearly 2 kilograms of MDMA, approximately $900,000 in cash, nearly two dozen firearms – including semi-automatic rifles – and other narcotics.
“Drug traffickers who distribute illegal and dangerous drugs are a menace to society,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The cocaine distributor in this case has been removed from the streets and will now serve well-deserved time in prison. The success of this investigation hinged upon the collaborative efforts between all law enforcement agencies involved. The citizens of the Savannah area can rest better at night knowing that this criminal is headed to federal prison.”
Two defendants indicted in the conspiracy are still being sought: Kia Hickman, 49, of Savannah, and Jamaal Singleton, 42, of Savannah. Individuals with information on their whereabouts can anonymously contact the Chatham-Savannah Counter Narcotics Team (CNT) at 912-652-3900, or Savannah Crime Stoppers at 912-234-2020.
The case was investigated as 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, and conducted by the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Chatham-Savannah Counter Narcotics Team, Savannah Police Department, Chatham County Police Department, and the Chatham County Sheriff’s Office K9 Unit and the Chatham County Aviation Unit, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Jacksonville Felon Sentenced to More Than Eight Years in Prison for Firearms PossessionRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Tyrone Lee Jones (33, Jacksonville) to eight years and four months in federal prison for possessing a firearm as a convicted felon. Jones had pleaded guilty on March 4, 2020.
According to court documents, in July 2019, a confidential source (“CS”) working for the Bureau of Alcohol, Tobacco, Firearms and Explosives met with Jones at a residence where Jones showed the CS a cooler bag containing at least five firearms with an additional firearm tucked underneath the bag. The CS left the residence and returned later the same day to purchase one of the firearms from Jones. An associate of Jones handed the CS a .357 caliber revolver and an ounce of cocaine. That evening, the CS met with Jones at a hotel in Jacksonville to discuss payment for the revolver. During this meeting, Jones displayed a Glock-style pistol on a table next to him.
In September 2019, Jones was arrested at the same Jacksonville hotel by the Jacksonville Sheriff’s Office. At the time, Jones was the only occupant of a hotel room where a lockbox containing three firearms, one of which was a stolen Glock pistol; drugs; and more than $10,000 in cash was recovered. The key to the lockbox was attached to Jones’s shorts.
Prior to these events, Jones had been convicted of three felonies, including sale or delivery of cocaine, and was therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Jacksonville Armed Drug Dealer Sentenced to Ten Years in PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Levi Ta’shae Goodman (33, Jacksonville) to 10 years in federal prison for selling drugs and possessing a firearm in furtherance of his drug trafficking. Goodman had pleaded guilty on September 22, 2020.
According to court documents, Goodman sold drugs and guns to undercover detectives with the Jacksonville Sheriff’s Office (“JSO”) on multiple occasions during 2019. In May 2019, Goodman sold methamphetamine. On July 10, 2019, Goodman sold heroin and crack cocaine and stated that he had shot someone two weeks earlier. Two days later, Goodman sold a 9mm pistol and heroin and, the following day, he sold crack cocaine and fentanyl. On July 19, 2019, Goodman sold a loaded .38 caliber revolver, fentanyl, and crack cocaine to JSO detectives. On July 23, 2019, Goodman, who was armed with a Glock pistol, sold methamphetamine to the detectives. Later that month, he sold detectives crack cocaine and while armed with a Glock pistol, Goodman sold methamphetamine and fentanyl, and remarked that he was a known “gun-toter, gun slinger.” On August 1, 2019, Goodman sold a 9mm pistol and an AK-47 style rifle, as well as a mixture of heroin and fentanyl to JSO detectives. The next day, he was arrested while in possession of his Glock pistol.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.