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22 February 2021
Inmate Sentenced to 20 Years’ Imprisonment for AssaultRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 19, 2021, Corey Treadwell, age 49, previously of Los Angeles, California, was sentenced to 240 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for assault with intent to commit murder.
According to Acting United States Attorney Bruce D. Brandler, in November 2015, while Treadwell was an inmate at the United States Penitentiary Lewisburg, Lewisburg, Pennsylvania, Treadwell repeatedly stabbed his cellmate causing serious injury to that individual. The victim was treated and recovered from his wounds.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
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Indictment Charges 8 Gang Members with Drug Trafficking, Multiple Attempted MurdersRead the Press Release
As part of an ongoing investigation into gang-related drug trafficking and related violence in Bridgeport, a federal grand jury in New Haven has returned a superseding indictment charging eight Bridgeport gang members with conspiring to engage in a pattern of racketeering activity, including drug trafficking and multiple attempted murders.
Today’s announcement was made by John H. Durham, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England.
The eight-count superseding indictment, which was returned on February 16 and unsealed today, charges
MARQUIS ISREAL, a.k.a. “Garf,” 24
ASANTE GAINES, a.k.a. “Santi,” 24
DESTINE CALDERON, 26
DIOMIE BLACKWELL, a.k.a. “Yamo,” 24
LAHEEM JONES, a.k.a. “Heemie,” 25
TYIESE WARREN, a.k.a. “Loose Screw,” 20
JACQUON BENEJAN, a.k.a. “Blick,” 19
UNDREA KIRKLAND, a.k.a. “Spooda,” 24Benejan was arrested on February 19. He appeared today before U.S. Magistrate Judge Sarah A.L. Merriam via videoconference and was ordered detained. The other defendants were previously charged with federal offenses and are detained pending trial.
As alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA, U.S. Marshals, and Bridgeport Police are actively investigating multiple Bridgeport-based groups whose members are involved in narcotics trafficking, murder and other acts of violence. Gaines, Calderon, Blackwell, Jones, Benejan and Kirkland are members of the “Greene Homes Boyz,” (“GHB/Hotz”), based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End. Isreal and Warren are members of the “Original North End” (“O.N.E.”), a Bridgeport gang whose members have been allies with GHB/Hotz members since approximately 2017. GHB/Hotz and O.N.E. have been aligned against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a is a geographic gang based on the West Side of Bridgeport
The indictment alleges that GHB/Hotz members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities.
Among the violent acts committed by the defendants, the indictment alleges that:
- On May 22, 2015, Kirkland shot and attempted to kill “KJ,” a member or associate of the 150 gang;
- On February 7, 2018, Benejan and Blackwell shot and attempted to kill “MJ,” a member or associate of the 150 gang;
- On February 27, 2018, Kirkland shot and attempted to kill “TH,” a member or associate of the East End gang;
- On October 4, 2018, Kirkland and Benejan shot and attempted to kill “MS,” a member or associate of the East End gang;
- January 27, 2020, Gaines, Calderon, Blackwell, Jones, Isreal and Warren shot and attempted to kill members and associates of the East End gang.
As to the January 27, 2020, shooting, at 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
The indictment charges Gaines, Calderon, Blackwell, Jones, Benejan and Kirkland with one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years.
In addition, Gaines, Calderon, Blackwell, Jones, Isreal and Warren are charged with one count of assault with a dangerous weapon, attempted murder/aiding and abetting in assault with a dangerous weapon, and attempted murder, all in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. The assault offense carries a maximum term of imprisonment of 20 years and the attempted offenses carry a maximum term of imprisonment of 10 years. The six defendants are also charged with conspiracy to commit murder/conspiracy to commit assault with a dangerous weapon. The conspiracy to commit murder offense carries a maximum term of imprisonment of 10 years and the conspiracy to commit assault offense carries a maximum term of imprisonment of three years.
The indictment also charges Isreal with one count of using and discharging a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive sentence of at least 10 years. He is also charged with one count of possession with intent to distribute heroin, cocaine base (“crack”) and fentanyl, and one count of possession with intent to distribute fentanyl. Each of the drug offenses carries a maximum term of imprisonment of 20 years.
Finally, the indictment charges Benejan with one count of possession with intent to distribute cocaine base, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years.
U.S. Attorney Durham noted that, in the past year, 22 members of the GHB/Hotz, O.N.E. and East End gangs have been charged with federal offenses as a result of this ongoing investigation.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn Courtney Kaoutzanis, Peter D. Markle and Karen L. Peck.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Ghanian Fraudster Sentenced to Nine Years in Federal Prison for a $1.4 Million Bank and Wire Fraud Conspiracy and a Conspiracy to Transport Stolen Vehicles to AfricaRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Issah Mohammed, a/k/a Yissa and Ali, age 33, a citizen of Ghana previously residing in Laurel, Maryland, to nine years in federal prison, followed by five years of supervised release, for conspiracy to commit bank and wire fraud in connection with a fraud scheme in which Mohammed and his co-conspirators impersonated individual victims to remove funds from the victims’ investment accounts and for conspiracy to transport stolen motor vehicles to Africa. Judge Russell also ordered Mohammed to pay $697,982.30 restitution. The sentence was imposed on February 19, 2021.
Mohammed was a fugitive after he cut off his ankle monitor on February 21, 2018, and absconded, assuming the identity of another person. On January 4, 2021, Mohammed was arrested in Sacramento, California driving a black Porsche SUV.
The sentence 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 - Baltimore; Acting Director Keith Fleming of the U.S. Customs and Border Protection Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to his plea agreement, from at least January 31, 2013, through May 12, 2014, Mohammed was part of a conspiracy that acquired stolen vehicles, some of which were stolen from other states and transported to Maryland, and then shipped the stolen vehicles to Africa for sale. Members of the conspiracy in the United States would hire others to steal vehicles – with the keys – so that the vehicles could be more easily sold. Mohammed and other members of the conspiracy: purchased the stolen vehicles from the thieves or an intermediary; arranged to store the vehicles at parking lots and other locations, known as “cooling spots”; loaded the vehicles into a shipping container; and transported the containers to a port, including the Port of Baltimore, for export to destinations including Lagos, Nigeria and Accra, Ghana.
In order to ship vehicles overseas, shipping companies are required to have valid titles for the vehicles. As part of the scheme, Mohammed and other members of conspiracy used fraudulent title information in an effort to conceal the fact that the cars they sought to ship had been stolen. Mohammed and other conspirators acquired false Vehicle Identification Numbers (VINs) and replaced the true VINs on the stolen vehicles, and they also registered businesses with the state of Maryland, and then used these businesses to create registration paperwork for the vehicles, including false bills of sale utilizing the false VINs. In that manner, the conspirators were able to acquire or forge title(s), registration(s), and proof(s) of insurance for the vehicles to fill out the necessary paperwork so they could ship the cars overseas. The loss for the cars, both recovered and not recovered, was over $200,000.
As detailed in his plea agreement and other court documents, from March through November 2014, Mohammed, co-defendant Mohammed Kwaning, and other conspirators participated in a bank and wire fraud scheme in which they acquired account information of individual victims, including from investment account management firms and impersonated the victims to steal money from their accounts.
Issah Mohammed recruited individuals, including Mark Dennis, Charles Mensah, and others, who registered corporate shell entities with the state of Maryland. The recruits set up bank accounts at multiple banking institutions in the names of these shell entities. Kwaning then either directed that the funds from the compromised accounts be wired into the bank accounts opened in the names of the shell entities or provided altered or fabricated checks from the compromised accounts to Issah Mohammed. Mohammed then provided the checks to Mark Dennis, Charles Mensah, and the other recruits to be deposited into the shell entities’ bank accounts. Mohammed and the recruits then withdrew or transferred the funds from the business accounts they maintained to receive the victims’ funds to other accounts the conspirators controlled before the bank discovered that the funds were from compromised accounts.
Some of the victim accounts were compromised by individuals who called investment firms pretending to be the actual account holders and were able to reset the password for the investment accounts. Individuals also hacked the e-mails of victims and, posing as the account holders, requested funds be wired from their retirement accounts to the bank accounts of the shell corporations controlled by the conspirators. The attempted loss during the nine months of the scheme was over $1.3 million, and the conspirators were able to withdraw over $229,000 of the stolen funds, which they then split amongst themselves.
Mohammed “Kofi” Kwaning, age 40, of Laurel, Maryland, Mark Dennis, age 33, also of Laurel, Maryland, and Charles Mensah, age 35, of the Bronx, New York, were all convicted at trial and sentenced to 121 months, 27 months and 30 months in federal prison, respectively, each followed by five years of supervised release.
Acting United States Attorney Jonathan F. Lenzner commended HSI Baltimore, U.S. Customs and Border Protection, and the Baltimore County and Prince George’s County Police Departments for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Judson T. Mihok and Paul E. Budlow, who prosecuted this case.
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Georgia Woman Sentenced to 22 Years in Federal Prison for Organizing Numerous Shipments of Methamphetamine and Heroin from Mexico to the Port of TampaRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Yolanda Herrera (43, Rex, GA) to 22 years in federal prison for conspiracy to distribute methamphetamine and heroin, and attempted possession with the intent to distribute methamphetamine and heroin.
Herrera had pleaded guilty on June 4, 2020.
According to court documents, between October 24, 2018, and March 18, 2019, Herrera organized and coordinated the shipment of numerous containers of methamphetamine and heroin aboard the cargo ship Leticia, which repeatedly traveled from Altamira, Mexico, to the Port of Tampa.
On or about March 11, 2019, U.S. Customs and Border Protection (CBP) agents at the Port of Tampa inspected a container onboard the Leticia that, according to the ship’s manifest, contained stone blocks, typically used for the building of stone fountains. Agents from Homeland Security Investigations (“HSI”) imaged the blocks and observed that several of them contained anomalies. After breaching the blocks, the agents uncovered 14 large packages that had been shrink-wrapped with black carbon paper, which contained more than 50 kilograms of methamphetamine and 3 kilograms of heroin.
On March 15, 2019, HSI agents observed the blocks being loaded into a yellow rental truck. They then followed the truck as it exited the Port of Tampa and continued to Atlanta, Georgia. On March 16, 2019, at approximately 10:00 a.m., agents arrested two Mexican nationals, Nestor Vazquez-Morales and Adan Martinez-Onofre, as they attempted to offload the truck outside a residential home.
Agents searched Vazquez-Morales’s residence in Georgia and seized approximately two kilograms of heroin, three firearms (including a rifle), $12,725 in U.S. currency, and one stone block that was identical to the blocks discovered in the Port of Tampa. Next to the stone block, agents found some clear plastic wrapping that contained a square white sticker with black letters displaying the message “Hecho en Mexico” (Made in Mexico). This same sticker was also found on the narcotics from March 11, 2019.
Cellphones obtained from the individuals showed that Herrera, who flew from Tampa to Atlanta after the shipment arrived in Tampa, was actively planning and coordinating the pickup of the narcotics from the port to their eventual destination.
Between October 2018 and March 2019, Herrera rented six other trucks. During that time, Herrera’s co-conspirators completed seven shipments on the Leticia, all of which departed from Mexico, arrived in Tampa, and were identified as stone fountains in the cargo manifest. GPS data obtained from the rental trucks show that the trucks were all rented in Tampa, and dropped off in Atlanta, with stops at the same Atlanta residence.
On September 18, 2019, Herrera was arrested in Atlanta. During an interview with law enforcement, she admitted that she had been hired and paid to coordinate, supervise, and organize the transportation of narcotics sent from Mexico to Tampa, and deliver them to Georgia. Federal agents searched Herrera’s home and found a stone block in her backyard. That stone block contained the same “Hecho en Mexico” sticker as the stone blocks shipped on the Leticia.
In July 2020, Nestor Vazquez-Morales and Adan Martinez-Onofre were sentenced to federal prison terms of 15 years and 8 months and 5 years and 10 months, respectively, for their roles in this case.
“Narcotics trafficking poses a deadly threat, bringing in dangerous and addictive drugs and related criminal activity to our communities,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “Our HSI special agents are deeply committed to working with our law enforcement partners to disrupt and dismantle drug trafficking efforts in our communities.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Georgia Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that Brandon Quane Hudson, 36, of Macon, Georgia, pled guilty to possession with intent to distribute cocaine base and methamphetamine and being a felon in possession of a firearm.
“Hudson had four previous felony convictions when he was caught with meth, crack, and a gun in Huntington,” said United States Attorney Mike Stuart. “I commend law enforcement for their work to hold this repeat offender accountable.”
Hudson admitted that on August 20, 2019, members of the Huntington Violent Crime Drug Task Force executed a search warrant at his residence in Huntington. Officers located approximately 17.41 grams of crack cocaine and 4 grams of methamphetamine. Hudson admitted that he intended to distribute the methamphetamine and crack cocaine for money. Officers also located a Ruger EC9s, 9mm pistol and 8 rounds of 9mm ammunition, which Hudson admitted were in his possession. Hudson also admitted that he knew he was a convicted felon and that he was prohibited from possessing a firearm. Hudson has three previous felony convictions in Georgia as well as a prior felony conviction in Cabell County Circuit Court.
Hudson faces up to 20 years in prison when sentenced on May 24, 2021.
The Huntington Police Department, the Huntington Violent Crime Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is handling the prosecution.
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Georgetown Man Sentenced to More than 28 Years in Prison for Child Sex CrimesRead the Press Release
URBANA, Ill. – Ian J. Dukes, 38, of Georgetown, Ill., was sentenced today to 342 months (28 ½ years) for his role in child sex crimes involving two minors. Chief U.S. District Judge Sara L. Darrow imposed the sentence which also includes 15 years of supervised release to follow his prison term.
On Aug. 14, 2020, Dukes pled guilty to all counts as charged: attempted enticement of a minor, under age 18, to engage in sexual activity in July 2019; attempted sexual exploitation of the same minor; enticement of a second minor; sex trafficking of children; and, receiving child pornography of a second minor.
A co-defendant, Julie P. Snyder, 43, of the 400 block of W. University Ave., Urbana, Ill., was also charged, with Dukes, for attempted enticement of a minor. On Nov. 12, 2020, Snyder pled guilty to the charge and is scheduled to be sentenced on April 28, 2021.
Both Dukes and Snyder have remained in the custody of the U.S. Marshals Service since their arrests on the charges: Dukes on Feb. 11, 2020, and Snyder on March 6, 2020.
Assistant U.S. Attorney Elly M. Peirson represents the government in the prosecution. The charges are the result of investigation by the Federal Bureau of Investigation, Springfield Division; the Illinois State Police, and the Urbana Police Department, in coordination with the Illinois Internet Crimes Against Children Task Force.
This case is prosecuted as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. 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.
Fraudster Sentenced to Five Years in Prison for $2 Million Ponzi SchemeRead the Press Release
A Honduran man who conned investors out of roughly $2 million has been sentenced to five years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jose Anibal Linares, 42, pleaded guilty to one count of mail fraud in October 2020. He was sentenced today to 60 months in federal prison by U.S. District Judge David C. Godbey, who also ordered him to pay more than $2.3 million in restitution. A Honduran citizen in the U.S. formerly on Temporary Protected Status, Mr. Linares may be subject to removal from the U.S. after serving his sentence.
According to plea papers, Mr. Linares admitted to running a Ponzi-type scheme, luring investors into handing over “principal” that he later deposited in bank accounts at Wells Fargo, Bank of America, and Legacy Texas, then paying them “interest” from other investors’ principal payments.
Mr. Linares, who operated JC Loans Finance and Inversiones JC Dallas, admitted he falsely told investors their funds were “insured by the FDIC” and promised monthly returns based on investments in commercial and residential real estate, including a water resort and shopping centers in Honduras. He then mailed investors letters thanking them for joining the JC “family.”
Instead of investing their money, however, Mr. Linares admits he spent substantial amounts of investor funds on personal expenditures, and even wired some of the money to family members in Honduras.
In the meantime, he made lulling payments to investors by withdrawing large sums from his Bank of America and Wells Fargo accounts, generally using funds that had been deposited immediately beforehand from other investors. On some occasions, he even took investors’ cash payments from one set of investors in his office, then turned the cash over to other investors waiting in his lobby for their monthly disbursements.
By summer 2017, Mr. Linares admits, he had ceased all monthly payments and did not return investors’ principal investments.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Katherine Miller is prosecuting the case.
Fort Thompson Man Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter.
Patrick Dion, age 54, was indicted on February 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 18, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to eight years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 14, 2021, in Fort Thompson, Dion unlawfully killed another human being by operating a vehicle in a grossly negligent manner.
The charge is merely an accusation and Dion is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Dion was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Thompson Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Warren Dion, age 22, was indicted on November 10, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 18, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 18, 2020, in Fort Thompson, Dion forcefully resisted a federal officer, who was engaged in the performance of his official duties, in a manner that involved physical contact. The indictment further alleges that the officer suffered bodily injury as a result of the incident.
The charge is merely an accusation and Dion is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Dion was remanded to the custody of the U.S. Marshals Service pending trial. A trial has been set for March 9, 2021.
Former Vice President of Construction Management Company Sentenced for Corporate Accounting Fraud SchemeRead the Press Release
RICHMOND, Va. – A former corporate executive of a construction management company was sentenced today to 27 months in prison for his role in a corporate accounting scheme that concealed millions of dollars in debt owed by the company.
“Over a five-year period, Patrick Lindsey served an integral role in a large-scale corporate accounting fraud scheme designed to conceal the fact that MGT Construction was more than $20 million in debt,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “That deceit not only maintained the defendant’s job and padded his annual compensation package, but it also proved devastating to the individuals who worked on MGT Construction projects and were left holding the bag after the fraud scheme was uncovered and the company subsequently collapsed. This Office is committed to working with our law enforcement partners to combat corporate malfeasance and hold accountable executives who manipulate others for personal gain.”
According to court documents, Patrick Lindsey, 43, of Midlothian, was the Vice President of Preconstruction Services at MGT Construction, a Richmond-based construction company offering preconstruction planning and construction management services. From 2011 through November 2016, MGT Construction engaged in a fraudulent accounting scheme that sought to conceal MGT’s true financial position through job-cost manipulations within the company’s accounting software system.
Lindsey had primary day-to-day management of the accounting scheme, which involved the regular movement of job-cost invoices from nearly finished projects to more recent construction projects. This cost-shifting falsely inflated profit margins and concealed losses, which generated a wholly inaccurate picture of MGT’s profitability. MGT and its parent company submitted the products of these fraudulent accounting manipulations as part of MGT’s application packages to banks and insurance companies for lines of credit and bonding coverage.
During the conspiracy, Lindsey moved or deleted thousands of job cost invoices, concealing the fact that, by the time the scheme was uncovered in November 2016, MGT Construction was over $20 million in debt. When the accounting fraud was exposed, MGT Construction owed millions of dollars in outstanding invoices that it could not pay to dozens of contractors, subcontractors, and vendors who had provided their services or products to MGT Construction. As a result, MGT filed for Chapter 7 bankruptcy in early 2018.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Thomas A. Garnett 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. 3:20-cr-22.
Former Owner of Aquarium Business Sentenced to Prison for Illicit Trafficking of Protected Reef CreaturesRead the Press Release
The Justice Department announced today that a Puerto Rico man was sentenced to a year and a day in federal prison for felony violations of the Lacey Act that involved the trafficking and false labeling of protected reef creatures as part of an effort to subvert Puerto Rican laws designed to protect coral reef organisms.
In 2013 through 2016, Aristides Sanchez, of Arecibo, was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade.
Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was a coral-like organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. Because Ricordea are attached to the reef substrate, Sanchez would utilize a hammer and chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about Jan. 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez or on his behalf with his knowledge, was at least $800,000.
In addition to the prison time, Sanchez was sentenced to a supervised release term of two years and 120 hours of community service. The court also banned Sanchez from collecting or procuring marine life, shipping marine life off-island and scuba diving and snorkeling in Puerto Rico.
To view pictures of the seized coral, click here: /media/911501/dl?inline.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
Former Bossier Parish Community College Comptroller Sentenced for Stealing More Than $280,000Read the Press Release
SHREVEPORT, La. - Carol Bates, the former comptroller for Bossier Parish Community College (BPCC), was sentenced today for conspiracy to commit wire fraud, announced Acting United States Attorney Alexander C. Van Hook. Chief U.S. District Judge S. Maurice Hicks, Jr. sentenced Bates, 50, of Shreveport, Louisiana, to 60 months (5 years) in prison, followed by 3 years of supervised release. Bates was also ordered to pay restitution in the amount of $286,987.08.
Bates and her co-defendants, Faith Alexander, Marquise Perry, and Audrey Williams, all of Shreveport, were indicted on September 25, 2019 and charged with conspiracy to commit wire fraud and wire fraud.
Bates pleaded guilty on July 20, 2020 and at the hearing admitted that from 2013 to 2016, she used her position as comptroller of BPCC to access an internal BPCC computer database and make entries falsely showing individuals were due refunds by the school. These individuals were not qualified to receive the funds, and, in most cases, they were not even attending BPCC during the semesters they received the money. As a part of the scheme, Bates and her sister, Audrey Williams, recruited Faith Alexander and Marquise Perry, along with seven other individuals to receive fraudulent refunds from BPCC. Once the individual received the funds, they were instructed to deliver between one-half and two-thirds of the money to Carol Bates or her sister, Audrey Williams.
In total, Bates caused 45 fraudulent refunds totaling $286,987.08 to be issued to nine individuals. Alexander received eight refunds totaling $45,482.65 from 2014 through 2016. Perry received seven refunds totaling $49,524.65 from 2015 through 2016. The remaining 30 refunds were issued to seven other individuals who, after receiving the money, transferred two-thirds or half of it to Bates.
Acting United States Attorney Alexander C. Van Hook stated: “Those who work in places of trust in business such as the comptroller position held by this defendant, are held to a higher standard of accountability. This defendant failed in that regard and instead selfishly stole hundreds of thousands of dollars for her own personal gain. Our office will be vigilant in continuing to investigate this, and any other type of fraud, in the Western District of Louisiana.”
“Abuse of high trust is among the worst things a public employee can do,” stated Louisiana Inspector General Stephen Street. “Ms. Bates engaged in a deliberate and complex scheme to steal hundreds of thousands of taxpayer dollars from an institution of higher learning, with no regard for the significant harm it would cause. The substantial prison sentence imposed by the court today is entirely proper, and will hopefully send the message to anyone else who might consider stealing from the public – we have zero tolerance for it and will do everything we can to send you to jail.”
“I want to thank Acting U.S. Attorney Alexander Van Hook and his staff for an excellent job on the case, as well as our partners at the U.S. Department of Education Inspector General.”
Marquise Perry, 36, pleaded guilty on December 9, 2019 and was sentenced on December 11, 2020 to 5 years of supervised probation. Perry was also ordered to pay $49,524.65 in restitution.
The sentencing hearing for Faith Alexander is scheduled for March 22, 2021 at 10:00. The sentencing hearing for Audrey Williams has not yet been set.
The U.S. Department of Education, Office of Inspector General, and the Louisiana Office of State Inspector General, conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
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Former Bearcreek Township Trustee Entered A Plea of GuiltyRead the Press Release
FORT WAYNE – On January 21, 2021, the U.S. Attorney’s Office charged Katina Miller, the former Trustee of the Bearcreek Township Trustee’s Office located in Bryant, Indiana, with two counts of wire fraud, announced Acting U.S. Attorney Gary T. Bell.
On February 2, 2021, Miller pled guilty to one count of wire fraud and admitted devising a scheme to divert money for her benefit. On February 19, 2021 United States District Court Judge Holly A. Brady accepted the guilty plea. According to documents filed in the case, from January 2015 through on December 31, 2018, Miller embezzled $86,755.39 by using township bank accounts to pay personal expenses through debit cards, ATM withdrawals or checks made payable to herself.
Any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of an investigation by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Stacey Speith.
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Federal Indictment Charges Charlotte Man for Defrauding COVID-19 Government Benefits ProgramsRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Rashawn Prioleau, 35, of Charlotte, on multiple financial institution fraud and aggravated identity theft charges, for stealing more than $60,000 from government-funded COVID-19 benefit programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. Attorney Murray in making today’s announcement.
According to allegations in the criminal bill of indictment, Prioleau engaged in a scheme to defraud the U.S. Department of Labor (DOL), the U.S. Small Business Administration (SBA) and other North and South Carolina state agencies by filing fraudulent claims for COVID-19 related unemployment insurance (UI) benefits using stolen information of identity theft victims. The indictment further alleges that Prioleau also fraudulently applied for two Economic Injury Disaster Loans (EIDL) based on false information.
As alleged in the indictment, from at least April 2020 to September 2020, Prioleau obtained the personal identifying information (PII) of at least seven identity theft victims, including names, Social Security Numbers, dates of birth, and addresses, and used it to file for fraudulent UI benefits in North and South Carolina. Prioleau allegedly directed the payments of the UI benefits be made to debit cards or bank accounts under his control. As alleged in the indictment, in July 2020, Prioleau also applied with the SBA for two EIDLs, using fraudulent business information. Over the course of the scheme, Prioleau allegedly obtained approximately $60,397 in government-funded COVID-19 benefits.
Prioleau is charged with nine counts of bank fraud, which carry a maximum prison term of 30 years and a $1,000,000 fine per count; two counts of making a false statement to the SBA, which carry a maximum term of 30 years in prison and a $1,000,000 fine per count; and two counts of aggravated identity theft, which carry a minimum prison term of two years per count, consecutive to any other prison term imposed, and a $250,000 fine. Prioleau had his initial court appearance today before U.S. Magistrate Judge David C. Keesler.
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 the U.S. Postal Inspection Service for their investigation which led to the charges.
Assistant U.S. Attorney Graham Billings, of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
The Coronavirus Aid, Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020, designed to provide emergency financial assistance, including expanded UI benefits, to millions of Americans suffering the economic effects of the COVID-19 pandemic. The Economic Injury Disaster Loan (EIDL) sponsored by the United States Small Business Administration (SBA) was expanded under the CARES Act, and it is designed to provide support for small businesses to remedy economic harm caused by the COVID-19 outbreak.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Drug Trafficker Is Sentenced to More Than Seven Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Jose Flores Romero, 29, of Mexico, to 87 months in prison followed by three years of supervised release on drug trafficking charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and today’s sentencing hearing, on February 21, 2020, law enforcement in Kansas seized 25 kilograms of cocaine from two individuals operating as drug couriers, who were traveling from California to Charlotte. According to court records, the couriers informed law enforcement that they had made multiple drug deliveries from California to Charlotte. Over the course of the investigation, law enforcement identified Romero as one of the intended recipients of the seized cocaine in Charlotte, and determined that Romero was involved in numerous previous drug deliveries, including a drug delivery worth over $800,000. On July 23, 2020, Romero pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and attempt to possess with intent to distribute five kilograms or more of cocaine.
Romero is currently in federal custody. Upon designation of a federal facility he will be transferred to the custody of the federal Bureau of Prisons. The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.
In making today’s announcement U.S. Attorney Murray thanked the U.S. Drug Enforcement Administration and the Kansas Highway Patrol for their investigation of this case. Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Detroit Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today that Quandale Turk, also known as “Q”, 43, of Detroit, Michigan, was sentenced to 16 months in prison for his conviction on federal drug charges. Turk previously pled guilty to an indictment charging him with two counts of aiding and abetting the distribution of heroin.
“Throughout my tenure as U.S. Attorney, my team has worked in close partnership with law enforcement to get poison peddlers off the streets of Huntington,” said United States Attorney Mike Stuart. “Without question, we have made a difference.”
Turk admitted that on February 16, 2017 and May 1, 2017, he directed Dahran Montgomery to distribute heroin to a confidential informant in Huntington.
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:18-cr-00213.
Follow us on Twitter: SDWVNews and USAttyStuart
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Council Bluffs Pair Sentenced to Prison for Methamphetamine OffensesRead the Press Release
COUNCIL BLUFFS, IA – On February 19, 2021, Casey Gantt, age 33, of Council Bluffs, was sentenced to 151 months in prison and five years of supervised release announced Acting United States Attorney Richard D. Westphal. On December 15, 2020, Gantt’s co-defendant Angela Garges, age 42, also of Council Bluffs, was sentenced to 120 months in prison and five years of supervised release. Both sentences imposed by United States District Court Chief Judge John A. Jarvey.
This investigation was initiated by the Iowa Department of Correctional Services Fourth Judicial District when Gantt failed to meet with his parole officer. Iowa parole officers went to Gantt’s home located at the 300 Block of Huntington Avenue in Council Bluffs and upon arrival encountered numerous people,including Garges, inside his home. Officers located over 500 grams of methamphetamine, drug paraphernalia, and $4,600 in United States currency in Gantt’s home.
On January 24, 2020, Council Bluffs Police responded to Best Western Inn in Council Bluffs to serve a warrant for a room rented by Garges. Officers searched the hotel room for the wanted person and located 111 grams of methamphetamine and drug paraphernalia.
This investigation was conducted by the Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, and the Iowa Fourth Judicial District Probation and Parole Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
College Student Convicted for Role in International Fraud ConspiracyRead the Press Release
KANSAS CITY, KAN. – Oyindamola Akinrinola, 23, of Lawrence, Kansas, has pleaded guilty in federal court for her role in Nigerian fraud schemes that targeted victims across the United States.
“Akinrinola and her co-conspirator in Nigeria victimized individuals, several elderly, through a variety of online scams,” said U.S. Attorney Stephen McAllister. “She now faces time in federal prison for her crimes. We will continue to work with our law enforcement partners to prioritize the investigation and prosecution of fraud schemes like these, no matter where they originate. I also take this conviction as an opportunity to reiterate to all Kansans the vulnerability of our senior citizens to scams and con artists, who prey upon them. We must all be vigilant to protect our parents, grandparents, elderly relatives, friends and neighbors from such frauds and fraudsters.”
“Scams such as lottery, online dating, and impersonating Internal Revenue Service (IRS) employees continue to be a major threat to taxpayers, especially senior citizens,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Scammers will use a variety of techniques to cheat taxpayers. TIGTA will do everything within its power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. We appreciate the assistance of the U.S. Department of Justice in this effort.”
According to U.S. Attorney McAllister, the charges, and other information presented in court: Akinrinola, a Nigerian national who was granted legal permanent residency in the United States in 2018, was part of a scheme to defraud U.S.-based victims out of money and property. Akinrinola’s co-conspirator in Nigeria orchestrated several scams, such as tricking victims into believing they were eligible for fictitious awards or establishing purported (but false) romantic relationships with victims and exploiting their affections.The co-conspirator in Nigeria directed victims to send money to Akinrinola. While in Kansas as a college student, she received funds from the scam victims—in amounts ranging from hundreds of dollars to as much $20,000—via wire transfers, money orders, financial applications, Wal-Mart money grams, Western Union, the United States Postal Service, and various other means. Akinrinola kept a portion for herself as her reward and sent the bulk of the funds to her co-conspirator in Nigeria. To do so, she generally used the Sendwave, WorldRemit, or Boss Revolution mobile applications.
The following are just a few examples of the scams Akinrinola and her co-conspirator perpetrated:
- Victims 1 and 2 received Facebook messages from an individual who purported to be with FedEx. They were told they won a $130,000 grant and that FedEx would deliver the cash after Victim 2 paid a “case file fee.” Victim 2 then deposited $2,500 cash into a Bank of America account for the fee. Victim 2 was then told she needed to pay another $1,000 for a “winning certificate.” Because Victims 1 and 2 did not have $1,000, they allowed the purported Facebook account holder to purchase three iPhones through their Verizon account. Victims 1 and 2 were instructed to mail the iPhones to Akinrinola (in Kansas). Victim 2 then received an image from the Facebook account claiming to be from the IRS and requesting $15,000 before release of the grant funds.
- Victim 3 was the victim of an online dating scam and lost approximately $8,000, of which he sent $900 to Akinrinola via a kiosk at a Walgreens store.
- Victim 4 also was the victim of an online dating scam. Victim 4 lost approximately $3,815, and he sent $710 to Akinrinola. Victim 4 believed the money was for musical instruments for children in Nigeria.
- Victim 5 was the victim of a Facebook scam. A man on Facebook, known to Victim 5 as “Steven,” told Victim 5 that he was in the military and needed money, and Victim 5 sent $1,000 to Akinrinola in this scam.
Sentencing is scheduled for June 15, 2021 at 9:00 am, before U.S. District Judge Holly L. Teeter.
This case is being investigated by the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
The Justice Department’s extensive efforts to combat elder fraud seek to halt the billions of dollars our beloved but sometimes vulnerable senior citizens lose to fraud schemes. DOJ prosecutes the criminal fraudsters to the full extent of the law when it can catch them. But such prosecutions arise only after the fraud has occurred, and it is far better that we protect our senior citizens from these harms in the first place. Prevention is better than punishment. Prevention works when we all educate ourselves and share information about the various types of elder fraud schemes that are being perpetrated. We must inform our relatives, friends, neighbors, and other seniors, who then can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311 or 833–FRAUD–11). This hotline, managed by the Justice Department’s Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed daily from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available. For more information, please visit https://stopelderfraud.ovc.ojp.gov.
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Clinton Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa — On February 22, 2021, United States District Court Chief Judge John A. Jarvey sentenced Kyle Charles Julian, age 26, of Clinton, to 46 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Julian was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
The charge in this case was based on a May 1, 2020, traffic stop conducted by the Clinton Police Department where Julian was found to be in possession of a firearm after having been convicted of a felony offense.
This matter was investigated by the Clinton Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Charlotte Woman Who Allegedly Exploited the Coronavirus Pandemic to Obtain A Fraudulent Loan Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Jasmine Johnnae Clifton, 24, of Charlotte, appeared in court today on federal charges, for fraudulently obtaining a COVID-19 loan for almost $150,000 from the U.S. Small Business Administration (SBA).
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.
On Wednesday, February 17, 2021, a federal grand jury sitting in Charlotte indicted Clifton on charges of wire fraud in relation to a disaster benefit, and fraud in connection with major disaster or emergency benefits. According to allegations in the criminal bill of indictment, Clifton engaged in a scheme to defraud the SBA by obtaining an Economic Injury Disaster Loan (EIDL) based on false information.
The CARES Act is a federal law enacted March 29, 2020, and it is designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established several new temporary programs and provided for the expansion of others, including the EIDL program, which is an SBA program that provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.
The indictment alleges that Clifton created Jazzy Jas LLC, an online retail clothing sales business, in April 2019. On July 24, 2020, Clifton submitted a fraudulent loan application to the SBA for Jazzy Jas, despite the fact the company had been dissolved by Clifton several months prior. As a result of the fraudulent application, which included false information about revenues and a fraudulent tax document, Clifton obtained $149,900 in disaster relief funds that were intended to be provided to an existing business harmed by the COVID-19 pandemic. On or about August 14, 2020, the EIDL funds were deposited directly into Clifton’s bank account. Clifton allegedly used the government funds to make purchases at numerous retail stores, including at Nordstrom, Ikea, Neiman Marcus, Rooms To Go, Louis Vuitton, Best Buy and other retail shopping outlets. Clifton also made purchases at multiple diamond stores.
Clifton was released on bond following today’s court appearance. The charge of wire fraud in relation to disaster benefit carries a maximum prison term of 30 years and a $1,000,000 fine. The maximum penalty for fraud in connection with major disaster or emergency benefits is 30 years in prison and a $250,000 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 and USPIS for their investigation which led to the charges.
Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Champaign Man Sentenced to Prison for Counterfeit Check SchemeRead the Press Release
URBANA, Ill. – Chief U.S. District Judge Sara L. Darrow today sentenced a Champaign, Ill., man, Tommie Slayton, 36, of the 2400 block of Clayton Boulevard, to serve 24 months in prison for engaging in a counterfeit check scheme that resulted in an estimated loss of more than $100,000. Slayton was remanded to the custody of the U.S. Marshals and will begin serving his sentence immediately. In addition, Slayton was ordered to serve three years of supervised release upon completion of his prison term.
On Oct. 20, 2020, U.S. District Judge James E. Shadid sentenced Slayton’s co-defendant Stephanie Lemons, 43, of the 1200 block of South Vine Street, Urbana, Ill. to serve 18 months in prison for her role in engaging in the counterfeit check scheme. Lemons was ordered to report to the federal Bureau of Prisons on March 2, 2021, to begin serving her sentence. Following her sentence, Lemons was ordered to serve two years of supervised release.
Slayton pleaded guilty to the charges immediately prior to today’s sentencing. In addition to the conspiracy charge, Slayton was charged with seven counts of bank fraud. On Feb. 6, 2020, Lemons entered pleas of guilty to the conspiracy and 19 counts of fraud as charged in the indictment.
Lemons and Slayton conspired together and with others to engage in a scheme to pass more than 120 counterfeit checks from July through December 2018. As a result of the scheme, counterfeit checks were presented at Walmart Stores in Champaign and Bloomington, Ill., and forged checks at Heartland Bank of Champaign, Ill.
The charges are the result of investigation by the FDIC Office of Inspector General and the Champaign and Urbana Police Departments, in cooperation with the Champaign County State’s Attorney’s Office. The government was represented by Assistant U.S. Attorney Elly M. Peirson in the prosecution.
Canton man sentenced for attempted overseas transport of child pornographyRead the Press Release
ATLANTA - Nathaniel Barber has been sentenced to prison for trying to leave the country with a cell phone and a tablet containing more than 100 files of child pornography. Barber belonged to an online group that shared videos and photographs of child pornography.
“Every video and image of child pornography is a crime scene depicting the sexual abuse of a child,” said Acting U.S. Attorney Kurt R. Erskine. “This case reaffirms our office’s determination to leverage our federal, state, and local law enforcement partnerships to prosecute individuals who revictimize exploited children by downloading and viewing these horrific images.”
“Stopping predators from spreading this filth, that victimizes innocent children every time it is shared, is one of the most important actions we do,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Luckily, he was not able to complete his trip and others engaged in this depravity should be on the lookout because we won’t stop searching for them.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: in January 2020, special agents with Homeland Security Investigations received a tip that Nathaniel Barber might be traveling outside the country to commit sex crimes against minors. The agents learned that he had purchased a plane ticket to the Philippines and was departing from Hartsfield-Jackson Atlanta International Airport on January 28, 2020. Agents approached Barber at the boarding gate and questioned him about his trip.
Barber denied that he was traveling to the Philippines to engage in sex with anyone under the age of 18 years. But he admitted that he possessed child pornography on a tablet and cell phone. A forensic search of the items revealed that Barber had joined an online group where members posted and shared child pornography. Barber had downloaded seven videos and 133 images of child pornography, with many of the materials depicting girls under 10 years old being sexually abused.
Nathaniel Barber, 40, of Canton, Georgia, was sentenced to five years in prison to be followed by ten years of supervised release and ordered to pay a special assessment in the amount of $5,100. Barber was convicted of attempted international transport of child pornography on November 17, 2020, after he pleaded guilty.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Brunswick woman to repay Social Security after continuing to receive deceased grandmother's checksRead the Press Release
BRUNSWICK, GA: A Brunswick woman who continued to receive her grandmother’s Social Security payments for 18 years after the relative’s death has been sentenced in U.S. District Court.
Stephanie Taylor, 60, of Brunswick, Ga., was sentenced to five months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to one count of Theft of Government Property, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Taylor must repay $146,342 to account for proceeds illegally obtained from October 1998 to October 2016, and was ordered to serve three years of supervised release after completion of her prison term.
The excess payments were discovered during a routine review by the Office of Inspector General for the Social Security Administration, and charged and prosecuted for the United States by Assistant U.S Attorney Steven H. Lee.
Brooklyn Man Charged with Armed Robbery of Soho Luxury Retail StoreRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced today that ERIC SPENCER has been arrested for his participation in an armed robbery of a luxury retail store in New York, New York, on February 2, 2021. SPENCER was apprehended on Saturday, February 20, in Ft. Lauderdale, Florida, and will be presented in federal court in Ft. Lauderdale, Florida, later today.
U.S. Attorney Audrey Strauss said: “As alleged, Eric Spencer put the public and store personnel in grave danger when he committed a brazen daylight armed robbery of a SoHo boutique earlier this month. Spencer allegedly threatened a store security guard by displaying the handle of his gun as he barked orders to his co-conspirators to ‘grab everything.’ Now the FBI and NYPD have grabbed Spencer, who is in federal custody and awaiting his day in court.”
NYPD Commissioner Dermot Shea said: “Spencer’s arrest highlights the importance of good investigative work and the continuing efforts of the FBI-NYPD Joint Major Theft Task Force. I commend our partners in the United States Attorney’s Office in the Southern District of New York for their commitment to bringing justice for the victims in this despicable crime.”
FBI Assistant Director William F. Sweeney Jr. said: “We allege Mr. Spencer was part of a robbery crew, and in this instance he carried a firearm, during a violent takeover of a retail store. Mr. Spencer’s alleged actions violated federal law, and he is now in our custody. For others who plan to behave in the same manner, listen up – the FBI is committed to using every tool at our disposal to hold violent criminals accountable for their decisions, and our partnership with the NYPD is airtight. When you break federal law, expect to spend some time in one of our courtrooms. As always, thank you to the NYPD detectives for their outstanding work in this investigation, their constant efforts are essential to keeping our citizens safe.”
According to the allegations in the Complaint[1]:
On the afternoon of February 2, 2021, SPENCER robbed a luxury retail store located in the SoHo neighborhood in Manhattan. SPENCER and three other co-conspirators entered the store and began grabbing handbags and other items off the walls. When a security guard confronted SPENCER, he said, “What are you going to do? Shoot me?” SPENCER then reached into his waistband, where the security guard could see the handle of a firearm. SPENCER yelled, “Nobody touch me! Get everything! Grab everything!” SPENCER and his co-conspirators made off with handbags and other merchandise valued at $189,500.
The next day, SPENCER bragged on social media about having so many items from the store that he could “OPEN A SMALL BOUTIQUE.”
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SPENCER, 29, of Brooklyn, New York, is charged with one count of robbery, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Joint Major Theft Task Force and the NYPD’s Manhattan North Grand Larceny Squad, and thanked the FBI’s Miami Field Office for its assistance. She added that the investigation is ongoing.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Matthew R. Shahabian is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Asheville Resident Is Sentenced to 7 Years for Distribution of Child PornographyRead the Press Release
ASHEVILLE, N.C. – On February 19, 2021, U.S. District Judge Max O. Cogburn Jr. sentenced Michael Lawrence Feith, 34, of Asheville, to 84 months in prison for distribution of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Feith was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Chief David Zack of the Asheville Police Department joins U.S. Attorney Murray in making today’s announcement.
According to filed documents and statements made in court, on April 6, 2019, and May 13, 2019, law enforcement became aware that an individual, later identified as Feith, was using a peer-to-peer network to share with other users files containing images and videos depicting the sexual abuse of children. According to court records, on July 30, 2019, law enforcement executed a search warrant at Feith’s residence in Asheville. During the execution of the search warrant, law enforcement seized a custom built desktop computer. A forensic examination of the device revealed that it contained multiple images and videos depicting children being sexually abused. In total, law enforcement located 18 images and 150 videos of child pornography on Feith’s device. Court records also show that the peer-to-peer software was also located on the device. A forensic examination indicated that 128 different child pornography files had been shared 5,886 times with others via the peer-to-peer network.
On July 27, 2020, Feith pleaded guilty to distribution and attempted distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray commended the APD for their investigation of the case and thanked the North Carolina State Bureau of Investigation and the Boone Police Department for their invaluable assistance. The U.S. Attorney’s Office in Asheville handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Arch Family Dentistry Office Managers ChargedRead the Press Release
HAMMOND- Justyn Arch, age 34, and Trystan Arch, age 31 both of Valparaiso, Indiana were charged with healthcare fraud by way of a single count Grand Jury Indictment which was unsealed today, announced Acting U.S. Attorney Gary T. Bell.
According to documents in this case, Arch Complete Family Dentistry, with offices located in Chesterton, Crown Point, and briefly in Knox, Indiana, was an authorized Indiana Medicaid provider of dental procedures. In October 2017, Justyn Arch, Vice President of Arch Complete Family Dentistry, also managed the Crown Point office. Trystan Arch managed the Chesterton office.
The Indictment alleges that Justyn and Trystan Arch executed a scheme to defraud Indiana Medicaid by causing false and fictitious entries in patient files. The false entries showed that Arch dentists performed dental surgery when in fact no surgery had been performed. The claims totaled more than $350,000 in false and fictitious claims to Indiana Medicaid.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of an investigation by the Federal Bureau of Investigation, Indiana Attorney General’s Office Medicaid Fraud Control Unit, Internal Revenue Service-Criminal Investigation Division and U.S. Department of Health and Human Services with the assistance of the Porter County Prosecutor’s Office. This case is being prosecuted by Assistant United States Attorney Philip C. Benson.
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20 February 2021
WWII Nazi Concentration Camp Guard Removed to GermanyRead the Press Release
Today a Tennessee resident with German citizenship was removed to Germany for participating in Nazi-sponsored acts of persecution while serving as an armed guard at a Nazi concentration camp in 1945.
In February 2020, Friedrich Karl Berger, 95, was ordered removed from the U.S. based on his participation in Nazi-sponsored persecution while serving in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
“Berger’s removal demonstrates the Department of Justice’s and its law enforcement partners’ commitment to ensuring that the United States is not a safe haven for those who have participated in Nazi crimes against humanity and other human rights abuses,” said Acting Attorney General Monty Wilkinson. “The Department marshaled evidence that our Human Rights and Special Prosecutions Section found in archives here and in Europe, including records of the historic trial at Nuremberg of the most notorious former leaders of the defeated Nazi regime. In this year in which we mark the 75th anniversary of the Nuremberg convictions, this case shows that the passage even of many decades will not deter the Department from pursuing justice on behalf of the victims of Nazi crimes.”
“We are committed to ensuring the United States will not serve as a safe haven for human rights violators and war criminals,” said Acting ICE Director Tae Johnson. “We will never cease to pursue those who persecute others. This case exemplifies the steadfast dedication of both ICE and the Department of Justice to pursue justice and to hunt relentlessly for those who participated in one of history’s greatest atrocities, no matter how long it takes.”
Friedrich Karl Berger (1959)In November 2020, the Board of Immigration Appeals upheld a Memphis, Tennessee, Immigration Judge’s Feb. 28, 2020, decision that Berger was removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
After a two-day trial in February 2020, the presiding judge issued an opinion finding that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, on their way to worksites and on their way back to the SS-run subcamp in the evening.
At the end of March 1945, as allied British and Canadian forces advanced, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted other defendants of war crimes in 1947.
The trial and appeal of the removal case were handled by Eli Rosenbaum, Director of Human Rights Enforcement and Policy in the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), HRSP Senior Trial Attorney Susan Masling, and attorneys from ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter. Daniel I. Smulow, Senior Counsel for National Security in the Justice Department Civil Division’s Office of Immigration Litigation has participated in the litigation of Berger’s appeal.
The investigation was initiated by the HRSP and was conducted in partnership with the Nashville HSI office.
Acting Attorney General Monty Wilkinson expressed gratitude for assistance provided by the FBI, our German colleagues, and by the U.S. Holocaust Memorial Museum.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations committed in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
This removal was supported by ICE’s Enforcement and Removal Operations and Office of the Principal Legal Advisor as well as the Human Rights Violators and War Crimes Center (HRVWCC). The HRVWCC is comprised of HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Division, FBI’s International Human Rights Unit, and HRSP. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders.
To learn more about HRSP, visit https://www.justice.gov/criminal-hrsp.
Statement of United States Attorney James P. Kennedy, Jr. on the Passing of the Honorable Hugh B. Scott, United States Magistrate JudgeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Judge Scott devoted his life to the pursuit of justice and recognized that our system of justice depends vitally on the humanity of those working in it. As a prosecutor and as a jurist, he exuded those human traits which both instill confidence in and breathe life into our system of justice—impartiality, fairness, decency, efficiency, and above all, heart. Blending wisdom and wit, he had an uncanny ability to connect, in a heartfelt way, with all who appeared before him. Though he was a trailblazer, serving as the first black Assistant United States Attorney here in this Office and the first black federal judge ever in this District, his greatness was truly defined not by the color of his skin but by the contents of both his remarkable character and his overflowing heart. I and my entire Office extend our deepest condolences to his wife Trudy, his sons, and the rest of his family.
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19 February 2021
Youngstown man with prior drug trafficking convictions charged with possession with intent to distribute 2.8 kilos of fentanylRead the Press Release
A Youngstown man with prior convictions for drug trafficking, possession of heroin and assault on a peace officer was charged in a seven-count indictment handed down by a federal grand jury in Cleveland today. Raphael Ortiz, age 40, was charged with possession with intent to distribute fentanyl, distribution of fentanyl, using and maintaining a drug premise, possessing firearms in furtherance of a drug trafficking crime and as a felon in possession of firearms.
According to the affidavit in support of the criminal complaint, on January 6, 2021, law enforcement officers with the FBI, Mahoning Valley Violent Crimes Task Force (MVVCTF) and Mahoning Valley Law Enforcement Task Force (MVLETF) executed a search warrant at the defendants’ Youngstown-area residence. During the execution of the warrant, law enforcement investigators discovered a semi-automatic pistol and approximately $26,000 in cash.
That same day, law enforcement officers executed a second and third search warrant at
two additional residences known to be used for the distribution and storage of narcotics by the defendant. During the execution of these search warrants, the affidavit states that investigators discovered approximately 2.8 kilograms of fentanyl, a Sig Sauger semi-automatic pistol, Remington pump-action shotgun, Springfield Armory semi-automatic pistol, Smith & Wesson semiautomatic rifle, and a Springfield Armory semiautomatic rifle.
The defendant is prohibited from possessing firearms due to a 2008 conviction for drug trafficking and 2004 convictions for possession of heroin and assault on a peace officer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI and Mahoning Valley Law Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Vidor Woman Sentenced to Federal Prison for Opioid Overdose DeathsRead the Press Release
BEAUMONT, Texas – A 51-year-old Vidor, Texas, woman has been sentenced to federal prison for maintaining a drug-involved premises in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Michelle Lea Harrington pleaded guilty on Sep. 10, 2020. Today, she was sentenced to 60 months in federal prison by U.S. District Judge Marcia A. Crone.
“Individuals who contribute to the unlawful trafficking of prescription opiates will be punished,” said Acting U.S. Attorney Nicholas J. Ganjei. “This conviction of a landlord who permitted the distribution of opioid pills in her residence is a clear message that our community will not tolerate those perpetuating the opioid crisis in southeast Texas.”
According to information presented in court, Harrington rented out a residence in Vidor, Texas to three individuals, including Catherine Ardis. Harrington lived there as well and knew that Ardis distributed hydromorphone pills, also known as Dilaudid, from the residence. At least three persons died as a result of opiates purchased at the home. Medical examination determined that the victims died from poly-drug toxicity resulting from the use of hydromorphone pills.
Catherine Ardis was previously sentenced to 15 years.
This case was investigated by the U.S. Drug Enforcement Administration, Vidor Police Department, Jefferson County Sheriff’s Office, Beaumont Police Department, Port Arthur Police Department, and was prosecuted by Assistant U.S. Attorney Michael A. Anderson.
United States Penitentiary Inmate Sentenced to 18 Months’ Imprisonment for AssaultRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justin Petty, age 44, of Charleston, South Carolina, was sentenced on February 18, 2021, to 18 months’ imprisonment by United States District Court Judge Robert D. Mariani, for assaulting another inmate in retaliation for that individual’s past cooperation with law enforcement as a witness or informant.
According to Acting United States Attorney Bruce D. Brandler, on or about February 28, 2019, while incarcerated at the United States Penitentiary, Canaan (USP Canaan), located in Waymart, Pennsylvania, Petty, along with a co-defendant, conspired to assault and did assault the victim, also an inmate at USP Canaan, by repeatedly striking the victim several times about the head and body with closed fists. The motivation for this assault was Petty’s belief that the victim had been a government witness or informant.
The 18-month sentence that Petty received was ordered to run consecutively to the federal sentence that Petty was serving at the time of the assault.
The matter was investigated by the Federal Bureau of Prisons (FBP) and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Jeffery St John prosecuted the case.
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U.S. Attorney's Office Releases First Annual Missing and Murdered Indigenous Persons Program ReportRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon released its first annual Missing and Murdered Indigenous Persons (MMIP) program report today, announced U.S. Attorney Billy J. Williams. The report is the first of its kind produced by a U.S. Attorney’s Office since the Justice Department launched a new national strategy to address missing and murdered Native Americans in November 2019.
“For generations, American Indians and Alaskan Natives have suffered from disproportionately high levels of violence. Tragically, this is not a crisis of the past; it’s a crisis of the present,” said U.S. Attorney Williams. “In this report, we look back and forward, summarizing what is known about missing and murdered Indigenous people in Oregon and outlining our plans and goals for the year ahead. While we won’t solve this problem overnight, our office is working closely with Oregon law enforcement partners, other U.S. Attorney’s Offices, and the U.S. Department of Justice to end endemic violence in Indian Country.”
The District of Oregon report provides tribal communities, law enforcement and the public with an overview of current MMIP cases connected to Oregon and the U.S. Attorney Office MMIP strategy for 2021. As outlined in the report, an initial analysis of available MMIP data conducted by the U.S. Attorney’s Office indicates there are eleven missing and eight murdered Indigenous persons connected to Oregon.
In 2021, the U.S. Attorney’s Office will conduct formal tribal consultations with Oregon’s nine tribal governments to discuss MMIP issues, develop MMIP community response plans, create a District of Oregon MMIP Working Group, further develop data surrounding Oregon MMIP cases, and increase collaboration among all involved entities who interact with MMIP cases.
MMIP is an important and sensitive issue to tribal communities. Addressing MMIP in Indian Country is particularly challenging due to jurisdictional issues, lack of coordination and inadequate resources. However, for the first time in U.S. history, a national federal strategy—formalized by legislation, executive order, and departmental directive—is in place to address MMIP issues.
If you or someone you know have information about missing or murdered Indigenous people in Oregon, please contact the FBI Portland Field Office by calling (503) 224-4181 or by visiting tips.fbi.gov. If you have questions about the U.S. Attorney’s Office MMIP program, please contact MMIP program coordinator Cedar Wilkie Gillette by emailing [email protected] or by calling (503) 727-1000.
Tohono O'odham Man Sentenced to 24 Months in Prison for Assault with KnifeRead the Press Release
TUCSON, Ariz. – On Tuesday, James Seota-Felix, 41, of Sells, Arizona, was sentenced by U.S. District Judge Jennifer G. Zipps to 24 months in prison, followed by three years of supervised release. Seota-Felix previously pleaded guilty on September 28, 2020 to one count of Assault with a Dangerous Weapon.
On June 27, 2019, Seota-Felix got into an altercation with a rival gang member and stabbed the victim in the face. Seota-Felix is an enrolled member of the Tohono O’odham Nation.
The Federal Bureau of Investigation and the Tohono O’odham Police Department conducted the investigation in this case. Assistant U.S. Attorneys Micah Schmit and Jesse Figueroa, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-2301-TUC-JGZ
RELEASE NUMBER: 2021-009_Seota-Felix# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/.
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three New York Residents Indicted on Conspiracy, Mail Fraud, and Wire Fraud ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 25, 2021, Caron Pitter, age 44, Rohan Lyttle, age 45, and Rohan Lyttle, Jr., age 23, all residents of Queens, New York, were indicted on charges of conspiracy to commit mail fraud and wire fraud, with additional mail fraud charges against Pitter and Lyttle and a wire fraud charge against Lyttle. The indictment follows the filing of a criminal complaint against the three defendants on January 28, 2020, when Pitter and Lyttle were also arrested. Rohan Lyttle, Jr. remains at large.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that until December 2020, Pitter, Lyttle, and Lyttle, Jr., working with other coconspirators, defrauded victims using a common scheme known as a “sweepstakes scheme.” According to the indictment, a sweepstakes scheme typically starts with a fraudulent telemarketer telling a prospective victim that he or she has been selected as the winner of a large sweepstakes prize. The telemarketer informs the victim that he or she must first pay an “advance fee” to defray various expenses, such as taxes, before receiving the prize. Often these supposed advance fees continue until a victim has depleted his or her life savings, and no prize is ever furnished. Frequently, the advance-fee payments go to intermediaries or “money mules” before getting “flipped” to another member of the conspiracy, often located overseas.
Each of the known victims in this case either mailed cash or money orders or wired payments to someone in the United States, including the three defendants. One of the victims, known as “V1” in the indictment, is a 75-year-old man from Mechanicsburg, PA, in the Middle District of Pennsylvania. In May 2020, V1 was contacted by telephone by an individual who identified himself using the pseudonym “Andrew Goldberg” and was supposedly a representative of Publishers Clearing House (PCH). Goldberg told V1 that V1 was the recipient of a $2.5 million PCH cash prize. Goldberg told V1 that he had to prepay taxes to receive the cash prize. From May 2020 through November 2020, V1 continued to send additional payments for taxes, insurance, and transportation fees.
V1 ultimately sent more than $728,000 in cash to satisfy the advance-fee conditions. These mailings went to both Pitter and “Rocars Auto,” an automobile repair shop located in the borough of Queens, New York and affiliated with both Caron Pitter and Rohan Lyttle. Additionally, V1 was directed to purchase auto parts for a Land Rover from a car dealership in Cumberland County, PA and have them shipped to “Ro-Cars Auto,” resulting in over $15,000 in charges to two of V1’s credit card accounts. V1 never received any cash prize.
Similarly, four other victims identified in the indictment either mailed cash to addresses associated with “Rocars Auto” or made bank transfers to accounts and addresses associated with Caron Pitter, Rohan Lyttle, and Rohan Lyttle, Jr. At least one of these victims was likewise victimized by individuals posing as representatives of PCH.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty under federal law for conspiracy to commit mail fraud and wire fraud is 20 years’ imprisonment. The maximum penalty under federal law for mail fraud and for wire fraud is likewise 20 years’ imprisonment. These charges may also carry a fine and a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Additional Defendants Indicted on Federal Charges Related to Illegally Trafficking Cocaine and HeroinRead the Press Release
PITTSBURGH, PA – A federal grand jury, in Pittsburgh, has issued two separate, but related, Superseding Indictments, charging a total of 24 residents of Western Pennsylvania with narcotics trafficking, United States Attorney Scott W. Brady announced today.
The first Superseding Indictment, unsealed today, contains two conspiracy counts and names the following 11 individuals as defendants, adding James C. Lori and James D. Lori to the nine defendants charged in the original December Indictment:
• Anthony Peluso, 39, of Hampton Township, PA
• Marissa Botta, 28, of Hampton Township, PA
• James C. Lori, 31, of Pittsburgh, PA
• James D. Lori, 58, of Pittsburgh, PA
• David Pietropaolo, 23, of Glenshaw, PA
• Thomas Snelsire, 46, of Baldwin, PA
• Wayne Webber, 42, of Duquesne, PA
• Ronald Simak, 38, of Verona, PA
• Anthony Scatena, 23, of Pittsburgh, PA
• James Stewart, 41, of Pittsburgh, PA
• Dorin Duncan, 42, of Glenshaw, PA
According to this Superseding Indictment, the above-named defendants conspired to distribute and possess with the intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance between January to November 2020. The Superseding Indictment further alleges that Peluso, Botta and Snelsire also conspired to distribute and possess with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, also between January and November 2020.
The second Superseding Indictment, also unsealed today, contains two conspiracy counts and names the following 13 individuals as defendants, adding Malik Johnson to the 12 defendants charged in the original December Indictment:
• Jeffrey Kushik, 29, of Pittsburgh, PA
• Gary Hairston, 41, of Pittsburgh, PA
• Darian Wofford, 27, of Pittsburgh, PA
• Malik Johnson, 30 of Pittsburgh, PA
• Stephanie Zilka, 28, of Pittsburgh, PA
• Misty Walker, 39, of Pittsburgh, PA
• Richard White, 18, of Pittsburgh, PA
• Randy Camacho, 34, of Pittsburgh, PA
• Damian Cherepko, 26, of McKeesport, PA
• Brandon Hulboy, 29, of Pittsburgh, PA
• James Crivella, 27, of Glenshaw, PA
• Seaira Collins, 32, of Pittsburgh, PA
• Jessica Taranto, 37, of Pittsburgh, PA
According to this Superseding Indictment, Kushik, Hairston, Wofford, Johnson, Zilka, Walker, Camacho, Collins, and Taranto conspired to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance between August and November 2020. The Superseding Indictment further charges Kushik, Hairston, Wofford, Johnson, Zilka, Walker, White, Cherepko, Hulboy and Crivella with conspiring to distribute and possess with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, also between August and November 2020.
As to the conspiracy counts involving 100 grams or more of heroin and 500 grams or more of cocaine, the law provides for a minimum sentence of 5 years’ and a maximum sentence of 40 years’ imprisonment, a fine of not more than $5,000,000, or both. As to the conspiracy count involving 1 kilogram or more of heroin, the law provides for a minimum sentence of 10 years’ and a maximum sentence of life imprisonment, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of each defendant.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorney Rebecca L. Silinski is prosecuting these cases on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Supai Man Sentenced to 28 Months for AssaultRead the Press Release
PHOENIX, Ariz. – Last week, Elias Eddie Quade Chavez, 19, of Supai, Arizona, was sentenced by U.S. District Judge John J. Tuchi to 28 months in prison, followed by three years of supervised release. Chavez previously pleaded guilty to assault with a dangerous weapon.
In October 2019, Chavez stabbed the victim and caused the victim serious bodily injury. The assault occurred on the Havasupai Indian Reservation, where both Chavez and the victim are tribal members.
The Federal Bureau of Investigation and the Bureau of Indian Affairs – Office of Justice Services conducted the investigation in this case. Assistant U.S. Attorneys Benjamin Goldberg and Alexander Samuels, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08089-PCT-JJT
RELEASE NUMBER: 2021-010_Chavez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/.
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Spencerport Man Arrested After Attempting to Have Sex with A 13-Year-Old GirlRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dale E. Trimmer, 46, of Spencerport, NY, was arrested and charged by criminal complaint with the attempted production and receipt of child pornography, and attempted transfer of obscene material to a minor. The charges carry a minimum penalty of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, beginning in December 2020, the defendant attempted to communicate with minors online using a chat application. During one such chat, Trimmer engaged in a sexually explicit conversation with a person who he believed was a 13-year-old girl, but who was actually an undercover law enforcement officer. The defendant told the girl that he wanted to have sex with her and attempted to solicit sexually explicit photographs. Trimmer also sent the girl a sexually explicit video of himself, as well as photographs of gifts, including stockings, that he bought for her. As the conversations continued, Trimmer discussed meeting the girl for sex, and formulated several plans as to how they could carry on a sexual relationship.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and is being held pending a detention hearing.
The criminal complaint is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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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Six Individuals Affiliated with the Oath Keepers Indicted by a Federal Grand Jury for Conspiracy to Obstruct Congress on January 6, 2021Read the Press Release
WASHINGTON – This week, six additional individuals associated with an organization known as the Oath Keepers, some of whose members were among those who forcibly entered the U.S. Capitol on Jan. 6, 2021 were arrested and charged in federal court in the District of Columbia for conspiring to obstruct the U.S. Congress’s certification of the result of the 2020 U.S. Presidential Election, among other charges.
Graydon Young, 54, of Englewood, Florida, was arrested on Monday in Tampa, Florida; Kelly Meggs, 52, and Connie Meggs, 59, both of Dunnellon, Florida, were arrested on Wednesday in Ocala, Florida; Laura Steele, 52, of Thomasville, North Carolina, was arrested on Wednesday in Greensboro, North Carolina; and Sandra Ruth Parker, 62, and Bennie Alvin Parker, 70, both of Morrow, Ohio, were arrested yesterday.
These six individuals were added as co-defendants to a superseding indictment filed today in United States v. Thomas Caldwell, Donovan Crowl, and Jessica Watkins, 21-cr-28-APM. The superseding indictment alleges that Kelly and Connie Meggs, Young, Steele, and Sandra Parker donned paramilitary gear and joined with Watkins and Crowl in a military-style “stack” formation that marched up the center steps on the east side of the U.S. Capitol, breached the door at the top, and then stormed the building. The indictment charges all nine defendants with one count of conspiring to commit an offense against the United States, in violation of Title 18, U.S. Code Section 371, that is, to corruptly obstruct, influence, or impede an official proceeding, in violation of Title 18, U.S. Code Section 1512(c)(2); one count of depredation against federal government property, in violation of Title 18, U.S. Code Section 1361; and unlawful entry, disorderly conduct, or violent conduct in restricted buildings or grounds, in violation of Title 18, U.S. Code Section 1752(a). The indictment also charges Bennie Parker and Caldwell with obstructing the investigation in violation of Title 18, U.S. Code Section 1512(c)(1).
According to the superseding indictment, Kelly Meggs is the self-described leader of the Florida chapter of the Oath Keepers, of which Connie Meggs, Young, and Steele also are alleged to be members. In late December, the indictment alleges, Kelly Meggs wrote in a Facebook message, “Trump said It’s gonna be wild!!!!!!! It’s gonna be wild!!!!!!! He wants us to make it WILD that’s what he’s saying. He called us all to the Capitol and wants us to make it wild!!! Sir Yes Sir!!! Gentlemen we are heading to DC pack your s***!!” He went on to state, “[W]e will have at least 50-100 OK there.” According to the indictment, around the same time, Young allegedly arranged, for himself and others, training by a Florida company that provides firearms and combat training.
The indictment alleges that Sandra and Bennie Parker traveled with Watkins and Crowl from Ohio to Washington, D.C. In the lead-up to the attack on the U.S. Capitol, Bennie Parker allegedly communicated extensively with Watkins about potentially joining her militia and combining forces for the events of January 6.
The superseding indictment alleges that, in making plans for the events of January 6, Kelly Meggs made statements, similar to those made by Watkins and Caldwell, that his group would not need to be armed for the attack on the U.S. Capitol, because there would be a “heavy QRF 10 Min out[.]” The abbreviation “QRF” is alleged to refer to “quick reaction force,” a term used by law enforcement and the military to refer to an armed unit capable of rapidly responding to developing situations, typically to assist allied units in need of such assistance.
The superseding indictment adds charges that, in the aftermath of the attack on the U.S. Capitol, Caldwell and Young tampered with documents or proceedings by unsending and deleting Facebook content.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the Justice Department's National Security Division with assistance from the U.S. Attorney’s Offices for the Middle District of Florida, the Middle District of North Carolina, and the Southern District of Ohio. The superseding indictment is the result of an ongoing investigation by the FBI’s Washington Field Office, Jacksonville Field Office, Tampa Field Office, Charlotte Field Office, and Cincinnati Field Office.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at www.tips.fbi.gov.
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Silver City man sentenced to 24 years in prison for production of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Ruben Castillo, 50, of Silver City, New Mexico, was sentenced on Feb. 16 in federal court to 24 years in prison for production of visual depictions of minors engaging in sexual conduct. Castillo pleaded guilty on March 24, 2020.
According to his plea agreement and other court records, Castillo used Instagram to find and contact minor girls. Castillo admitted that on July 21, 2019, he met a victim who he knew was 15 years old and pursuaded her to engage in sexual conduct with him. Castillo further admitted to using his cellphone to photograph the act.
Upon his release from prison, Castillo will be subject to supervised release for five years.
Homeland Security Investigations investigated this case with assistance from the Silver City Police Department. Assistant U.S. Attorneys Marisa A. Ong and Ry Ellison prosecuted the case.
Serial Con Artist Charged with Embezzlement SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Kathy A. Michalko, Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), and New York Police Department (“NYPD”) Commissioner Dermot Shea, announced the arrest today of TRACII SHOW-HUTSONA on wire fraud and identity theft charges. Specifically, SHOW-HUTSONA is charged with embezzling more than one million dollars as part of a confidence scheme. SHOW-HUTSONA used her position as a personal assistant to funnel money from her victim’s financial accounts, including the victim’s children’s college savings accounts, into her own spending account in order to fund a lavish lifestyle. SHOW HUTSONA was arrested on February 17, 2021, and was presented in federal court in the District of Arizona before United States Magistrate Judge Michelle H. Burns.
U.S. Attorney Audrey Strauss stated: “Traccii Show-Hutsona, a personal assistant and founding partner of Elite Lux Life, branded her concierge service as the ‘VIP Concierge Company (SPECIALIZING IN THE GOOD LIFE) Jets-Yachts-Vacation Rentals-Exotic Vehicles.’ As alleged, Show-Hutsona afforded herself the same swanky accommodations she promised her clientele – only she did so with their money. Thanks to our partners at the NYPD and U.S. Secret Service, Tracii Show-Hutsona’s alleged high-flying confidence scheme has now been grounded, and she faces embezzlement charges in federal court.”
USSS Special Agent-in-Charge Kathy A. Michalko stated: “The U.S. Secret Service remains focused on bringing those who commit financial crimes to justice. The accused was employed by the victim and allegedly used her position to embezzle over one million dollars for her own personal gain. Due to the tireless investigative efforts of the Secret Service and the New York City Police Department, the accused will answer the charges against her in the Southern District of New York.”
NYPD Commissioner Dermot Shea stated: “As alleged in this federal complaint, Tracii Show-Hutsona turned her clients into victims, betraying their trust to carry out her own embezzlement scheme. I applaud the work done in this case by our NYPD investigators and our partners in the United States Secret Service and the United States Attorney’s Office in the Southern District of New York to make sure this individual would be brought to justice.”
According to the allegations in the Complaint unsealed today[1]:
TRACII SHOW HUTSONA, a/k/a “Tracii Show,” a/k/a “Tracii Show Vician,” was the “founding partner” of Elite Lux Life, a full-service concierge firm that “accommodates the most discerning traveler” and is the “go-to service for wanting to enjoy the very best life has to offer.” In its social media posts, Elite Lux Life markets itself as a “VIP Concierge Company (SPECIALIZING IN THE GOOD LIFE) Jets-Yachts-Vacation Rentals-Exotic Vehicles.”
From in or around 2015 until late 2019, SHOW HUTSONA engaged in a long-running confidence scheme to embezzle money. SHOW HUTSONA used the confidence she gained from her position as a personal assistant to gain access to financial accounts. In connection with one victim of the scheme (“Victim-1”), SHOW HUTSONA stole and spent over $1 million of Victim-1’s money in order to finance her own luxury lifestyle. When Victim-1 confronted her about the scheme, SHOW HUTSONA promised to make amends. In fact and in reality, SHOW HUTSONA continued to spend Victim-1’s money without permission or authorization, including transferring money from the college savings accounts of Victim-1’s children.
SHOW HUTSONA was previously convicted in federal court in 2008 for committing fraud and aggravated identity theft in connection with the submission of fraudulent invoices for a staffing agency in Japan, in another fraud scheme. See United States v. Show Vician, 08 Cr. 0058 (C.D. Cal. Oct. 16, 2008).
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SHOW HUTSONA, 52, of Phoenix, Arizona, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised USSS and the NYPD for their outstanding work on this case and noted that the investigation is ongoing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Timothy V. Capozzi and Michael C. McGinnis are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Scam Alert: Fraudsters May Seek to Exploit Texas Weather DisasterRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas is on alert for fraudsters seeking to profit off of the extreme weather in Texas, warned Acting U.S. Attorney Prerak Shah.
Burst pipes, flooding, and other property damage stemming from this week’s storm may prompt unscrupulous actors to reach out to consumers with bogus insurance or home warranty information or nonexistent government grants, the U.S. Attorney’s Office said.
“Time and time again, we’ve seen scammers exploit natural disasters for personal gain,” said Acting U.S. Attorney Shah. “The last thing beleaguered Texans need right now is to fall prey to fraud. If something sounds too good to be true, it probably is. We urge consumers to exercise caution, especially when it comes to unsolicited calls, texts, or emails.”
Millions of people fall victims to scams every year. If you think you may have been preyed upon, please contact local law enforcement or submit a report to the Justice Department’s National Center for Disaster Fraud at 866-720-5721 or www.justice.gov/disastercomplaintform.
For more information on common phone and phishing scam tactics, visit the Federal Trade Commission’s website.
Scam Alert: Feds Warn Residents About Fraudsters Seeking to Profit from DisasterRead the Press Release
BEAUMONT, Texas – The United States Attorney’s Office for the Eastern District of Texas reminds the public that fraudsters soon follow disaster.
As Texas suffers from historic freezing and resulting property damage from ice and burst pipes, it is likely that individuals will seek to fraudulently profit from the attendant stress.
“Fraudsters often appear from nowhere to take advantage of natural disasters, which is what occurred in the early days of the pandemic. Now, we are concerned that weary homeowners will fall prey to unsolicited calls regarding insurance claims, home warranties, or bogus government grants” says Acting U.S. Attorney Nicholas J. Ganjei. “If you did not solicit the call, hang up.”
Millions of people fall victim to scams every year. If you think you have become a victim, contact your local law enforcement authority. You can also submit a report to https://ReportFraud.ftc.gov.
For more tips on how to identify a scam, visit www.consumer.ftc.gov/features/scam-alerts.
Santa Fe man sentenced to six years in prison for possession of stolen firearmsRead the Press Release
ALBUQUERQUE – Derek Nicholas Padilla, 30, of Santa Fe, New Mexico, was sentenced on Feb. 17 in federal court to five years and 11 months in prison for possession of stolen firearms.
Padilla pleaded guilty on Oct. 14, 2020. In his plea agreement, Padilla admitted to stealing the firearms a utility truck from a storage complex belonging to the Bureau of Indian Affairs located on Nambe Pueblo. The property belonged to the United States government.
The Bureau of Indian Affairs investigated this case with assistance from the Santa Fe County Sheriff’s Department. Assistant U.S. Attorney Allison Jaros prosecuted the case.
Russian National Charged with Attempting to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment on February 18, 2021 against Murat Kurashev, 34, of Sacramento, charging him with attempting to provide material support to a designated foreign terrorist organization, United States Attorney McGregor Scott announced.
According to court documents, Kurashev attempted to provide financial support to Hayat Tahrir al-Sham (HTS), a designated foreign terrorist organization.
This case was the product of an investigation by the Federal Bureau of Investigation and its other law enforcement partners. Assistant United States Attorney Heiko P. Coppola and Dmitriy Slavin, a Trial Attorney in the Department of Justice’s Counterterrorism Section, are prosecuting the case.
Kurashev was arrested by FBI agents and is currently in custody awaiting his first appearance.
If convicted, Kurashev faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rogers man charged with illegal possession of 27 firearms, explosive device and bald eagleRead the Press Release
A federal grand jury sitting in Cleveland handed up a six-count superseding indictment charging Theodore Lutton, age 60, and Christine Lutton, 63, both of Rogers, Ohio, with various violations after law enforcement investigators search their property in October of 2020. Investigators found Theodore Lutton illegally in possession of 27 firearms, an explosive device and a deceased bald eagle, a violation of the Bald and Golden Eagle Protection Act.
The indictment charges Theodore Lutton with felon in possession firearms, possession with intent to distribute cocaine, possession with intent to distribute methamphetamine and cocaine, possession of a destructive device and unlawful possession of a bald eagle. Christine Lutton is charged with one count of unlawful possession of a red-tailed hawk.
According to the affidavit in support of the criminal complaint, on October 30, 2020, FBI agents executed a search warrant on the person of Theodore Lutton and his residence in Rogers, Ohio. Inside the home, investigators state that they located approximately 20 firearms, blasting caps for initiating an explosive device, a hand grenade, three ballistic Kevlar vests, a dead bald eagle and an improvised explosive device with screws taped to the exterior. Theodore Lutton is prohibited from possessing a firearm due to a prior felony conviction for possession with the intent to distribute marijuana.
Theodore Lutton was not present at the residence at the time of the search and investigators spoke to his wife, Christine Lutton. It is alleged in the indictment that Christine Lutton was unlawfully in possession of a deceased, frozen red-tailed hawk without a permit, a violation of the Migratory Bird Treaty Act.
Law enforcement located Theodore Lutton and arrested him at another residence in Sharon, Pennsylvania. Investigators searched the second residence and found an additional two rifles and a handgun. In total, law enforcement seized 27 firearms alleged to have been unlawfully in the possession of Theodore Lutton.
As a result of these offenses, Lutton must forfeit any and all firearms and ammunition involved in or used in the commission of these offenses.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI and Columbiana County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis and Assistant U.S. Attorney Brad Beeson.
Retired Federal Law Enforcement Officer and Former Mayor of Brooksville Charged with Child Exploitation OffensesRead the Press Release
Tampa, Florida – Kevin Hohn (65, Brooksville) has been arrested and charged by federal criminal complaint with possession and distribution of images depicting the sexual abuse of children. If convicted, he faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison, and a potential life term of supervised release.
According to the criminal complaint, in September and December 2020, investigators identified a certain internet protocol address as having distributed images and a video depicting child pornography. Further investigation traced the IP address used to distribute the files to Hohn’s residence in Brooksville. Investigators determined that Hohn is a retired Special Agent with the Internal Revenue Service - Criminal Investigation, and former mayor of the City of Brooksville.
On February 19, 2021, investigators executed a search warrant at Hohn’s residence. Upon entry into the home, they found Hohn sitting in his office at a computer that was connected to an external hard drive. An examination of the external hard drive revealed more than 100 images depicting minors engaging in sexually explicit conduct. Within these images, investigators discovered images of apparent child pornography that had been covertly recorded inside of Hohn’s home.
A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.
This case was investigated by Homeland Security Investigations, with assistance from the Hernando County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Erin C. Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Renton man sentenced to home confinement and community service for role in facilitating fraud schemeRead the Press Release
Seattle - A 63-year-old Renton, Washington, man was sentenced today in U.S. District Court in Seattle to three years of probation, including six months of home detention with electronic monitoring, and 40 hours of community service for lying to federal agents about a fraud scheme carried out by a former Drainage District Commissioner and his wife, announced U.S. Attorney Brian T. Moran. In September 2020, DARRELL N. WINSTON pleaded guilty to making a false statement. At the sentencing hearing, U.S. District Judge Richard A. Jones told him he had not shown respect for the law, saying “on these occasions to break the chain of multiple lies, you chose not to do so.”
According to records filed in the case, WINSTON repeatedly misled FBI agents about his agreement with and work for former Drainage District Commissioner Allan Thomas and his wife. WINSTON operated a business called City Biz and originally told agents he had submitted a bid and been hired by Thomas to clean some of the drainage ditches in the district. In fact, WINSTON and his company did little or no work but were paid more than $50,000 by King County based on fake invoices. WINSTON paid most of the money back to Allan Thomas and his wife, and the two used the money for their own benefit. WINSTON lied to investigators on multiple occasions.
WINSTON has agreed to pay $12,958 in restitution to victims of the crime. The amount is the total he received as part of the fraud scheme.
Last summer, the grand jury returned a superseding indictment against Allan B. Thomas and Joann E. Thomas charging them with 15 federal crimes, including conspiracy, mail fraud, wire fraud, money laundering, and aggravated identity theft in connection with their six-year scheme to divert more than $400,000 in local tax dollars to their own use.
Allan B. Thomas served as Commissioner for Drainage District 5 in King County for more than 30 years. As a Commissioner, Thomas was involved in estimating the costs of drainage maintenance for the district so that the county auditor could set and assess the appropriate taxes. The Commissioners then authorized payment to service providers who were supposed to do maintenance work on the drainage system.
As early as 2012, Joann E. Thomas set up a joint bank account with Allan Thomas’ son from a previous marriage. The account was a business account for a company called A C Services. Over the next six years, Allan Thomas had $413,323 of local tax dollars paid to A C Services claiming it was for drainage ditch maintenance. However, financial records indicate that over the six years, shortly after the tax dollars were deposited into the A C Services account, the money was quickly transferred to other accounts belonging to the Thomases, or was used to pay their expenses for such things as hay, mortgage payments, or property taxes. More than $70,000 was withdrawn as cash.
In 2018, after the couple became aware of an investigation into their conduct, they began funneling the tax dollars through WINSTON’s company, City Biz.
In all, the indictment alleges the Thomases defrauded taxpayers of $468,165.
The charges contained in the Thomas indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS - Criminal Investigation are leading the investigation with assistance from the Enumclaw Police Department. The Enumclaw City Attorney initiated the review of the district finances. The Washington State Auditor’s Office also conducted an audit of the district in 2019. The King County Prosecuting Attorney’s Office, in consultation with the U.S. Attorney’s Office, determined the case was appropriate for federal prosecution.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Andrew Friedman.
Purported 501(c)(4) admits to being used to conceal corrupt payments related to passage of legislationRead the Press Release
CINCINNATI – An organization charged as part of a public corruption racketeering conspiracy pleaded guilty in U.S. District Court today.
Generation Now pleaded guilty to one count of participating in a more than $60 million racketeering conspiracy.
Jeffrey Longstreth, 44, a longtime campaign and political strategist to Ohio House Representative Larry Householder, signed the plea document on behalf of the entity. Longstreth pleaded guilty in October 2020 to an identical individual charge.
According to court documents, Generation Now was at the center of Householder and others receiving millions of dollars in exchange for specific official action. Householder and his enterprise received approximately $61 million through Generation Now from an energy company and its affiliates to pass and uphold a billion-dollar nuclear plant bailout.
Generation Now was created as a purported social welfare organization. According to the plea agreement, the actual purpose of Generation Now was for it to be used as a mechanism to receive undisclosed donations as a benefit to Householder. As part of the conspiracy, Generation Now engaged in financial transactions to conceal the source of payments made by Company A.
As part of the plea, Generation Now agrees to forfeit its assets, including nearly $1.5 million seized from organization bank accounts. The parties involved in the case have recommended a term of probation for the nonprofit of up to five years.
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 plea entered into today before U.S. District Judge Timothy S. Black. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
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Pittsburgh-area Man Indicted for Sending Threatening Communications to Members of CongressRead the Press Release
PITTSBURGH, Pa. - A resident of suburban Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of sending threatening communications in interstate commerce, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Harry E. Miller, 62, of Ross Township, Pennsylvania, as the sole defendant.
"Threatening to injure members of Congress is a crime, not protected-speech," said U.S. Attorney Brady. "As the events of the past year show, there are individuals intent on harming our public servants and law enforcement. We will vigorously and proactively investigate, disrupt and prosecute those individuals when they violate federal law."
"The threats alleged in this indictment were aimed at sitting lawmakers and crossed a line," said FBI Pittsburgh Special Agent in Charge Michael Christman. "The First Amendment does not give people the right to threaten anyone. Rest assured the FBI takes all threats seriously and will stop at nothing to let those who threaten violence know what the inside of a jail cell looks like."
"The mission of the United States Capitol Police is to protect the Congress, the U.S. Capitol, and all who work and visit here. We take all threats against Members of Congress very seriously and investigate them fully. I want to thank our highly-skilled investigators for their excellent work as well as our FBI partners and Mr. Brady and his staff for their prosecution of this case," said Yogananda D. Pittman, Acting Chief of the United States Capitol Police.
According to the Indictment, Miller is alleged to have transmitted, in interstate commerce, threats to injure other individuals. The indictment contains the following three charges:
• On or about August 19, 2019, Miller made a telephone call from the Commonwealth of Pennsylvania to U.S. Representative Katherine Clark’s Malden, Massachusetts district office and stated that he was willing to abolish government by spilling blood by taking out four to five democrats, including U.S. Representative Katherine Clark, that he would start shooting black people to keep them in line if he had to, and that the congressional staffer was an [expletive] who will also die in Miller’s forthcoming civil war;
• On or about January 7, 2020, Miller made a telephone call from the Commonwealth of Pennsylvania to U.S. Senator Richard Burr’s Washington, D.C. office and stated that he was going to put a bullet in Senator Burr’s head; and
• On or about January 7, 2020, Miller made a telephone call from the Commonwealth of Pennsylvania to U.S. Senator Richard Burr’s Washington, D.C. office, which was transferred to an individual, known to the grand jury, in the State of Tennessee, and stated that, if he traveled to D.C., he would be willing to shoot four or five senators in the head and that this statement was not a threat but a promise.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The FBI and United States Capitol Police conducted the investigation leading to the Indictment in this case.
Miller made an initial appearance in U.S. District Court today before Chief Magistrate Judge Cynthia Reed Eddy, who released Miller on a $25,000 unsecured bond.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted for Possession of A Firearm as A Convicted FelonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Razeek Carwheel, age 39, of Philadelphia, Pennsylvania, was indicted by a federal grand jury on February 17, 2021, with possession of a firearm as a felon.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that on November 22, 2020, in Cumberland County, Pennsylvania, Carwheel was in possession of a Smith and Wesson, .45 caliber handgun, and 20 rounds of .45 caliber ammunition as a previously convicted felon.
The matter was investigated by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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