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19 February 2021
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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Owner of Video Gaming Machine Company Sentenced for Evading over $3 Million in TaxesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that Mary Lavine, 65, Madison, Wisconsin, pleaded guilty to conspiring to defraud the Internal Revenue Service and to filing a false 2018 corporate income tax return for her business Bullseye, Inc.
After accepting Lavine’s guilty plea, Chief U.S. District Judge James D. Peterson sentenced Lavine to 1 year and 1 day in prison, imposed a $75,000 fine, and ordered her to pay restitution of $834,769.65 to the IRS, and $1,927,852.56 to the Wisconsin Department of Revenue. He also ordered Lavine to serve a two-year term of supervised release following her prison term.
Lavine ran Bullseye with another person who is now deceased. Bullseye operated as a coin-operated music and amusement game vending business located in Madison. Lavine admitted that Bullseye also contracted with bar owners to place video gaming machines (“VGMs”) at their bars. Bullseye split the profits generated by the VGMs with the bar owners. Different bar owners had different VGM profit sharing agreements with Bullseye. Lavine admitted that she worked with certain bar owners to skim the cash receipts generated from the VGMs and not report 100% of the cash receipts to the IRS or Wisconsin Department of Revenue. This underreporting caused Bullseye to evade its own corporate income taxes, as well as the Wisconsin sales taxes and income taxes for Bullseye and its bar owners.
The government presented evidence that during the four-year time span from 2015 to 2018, Bullseye evaded $3,028,930 in federal and state taxes.
At today’s hearing, Lavine apologized for her criminal conduct and told Judge Peterson that she went along the tax evasion scheme of Bullseye’s other owner for so long because he promised to make her the majority owner of the business, but then he reneged on that promise.
Judge Peterson told Lavine that her quest to be the majority owner of Bullseye was her “drug that caused her to compromise her basic values and commit tax evasion to achieve her end goal.” The judge noted that Lavine sacrificed a lot in that pursuit, and could have left Bullseye, but did not, and now she had to take responsibility for that choice.
Judge Peterson also noted that the size of the tax evasion scheme, the large tax loss, and the long period of criminal activity, all justified a term of incarceration. According to the judge, if nothing else, “this sentence will send the message to the business community that no special rules apply to cash businesses. It’s easy to cheat and skim cash, but it is still taxable.” Judge Peterson added, “business owners need to be aware that this type of conduct will not be tolerated and will lead to incarceration.”
To date, five individuals have pleaded guilty as part of this criminal tax investigation and Lavine is the fourth to be sentenced. Dudley Hellenbrand and Cherie Hellenbrand were each sentenced to 6 months in prison, and Tom Laugen was sentenced to 1 year and 1 day in prison. Colin Albany is scheduled to be sentenced on May 6. Moreover, Judge Peterson has ordered these individuals to pay a total of $3,807,566 in restitution to the IRS and Wisconsin Department of Revenue.
The case against Lavine is the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorneys Daniel Graber and Chadwick Elgersma.
Operator of Highrise Advantage, LLC Indicted for over $57 Million in Investment FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Avinash Singh (38, Orlando) with 10 counts of wire fraud and 6 counts of money laundering. Singh faces a maximum penalty of 20 years in federal prison for each wire fraud count, and up to 10 years’ imprisonment for each money laundering count.
According to court documents, Singh operated a local company by the name of Highrise Advantage, LLC. From February 2013 to September 2020, Singh received more than $57 million, from over 1,100 victims, that was to be invested in retail foreign currency contracts (“forex”) through Highrise. To induce his victims to invest, Singh claimed that he had a proven track record of success as a forex trader, that he was going to use the funds for investments in forex, and that he would “guarantee” that his victims would not lose any funds for any trading losses. Those representations were not true. Rather than invest his victims’ funds in forex trading as he had promised, Singh used funds from one investor to pay amounts owed to other investors. Singh did not invest the funds that he had promised but instead misappropriated at least $45 million in the form of payments to other investors and millions of dollars in personal expenses. Singh invested less than 5% of the funds that he had received in actual forex trading.
To cover up his scheme, Singh issued monthly statements that falsely represented that he had invested the funds in forex as he had promised and that he was making large profits. In fact, Singh’s investments, when he made them, often lost significant amounts of money, which Singh attempted to cover up by creating false monthly statements.
In connection with this criminal prosecution, the Asset Recovery Division of the U.S. Attorney’s Office has filed a civil complaint seeking the forfeiture of a residence purchased with move than $920,000 in wire fraud proceeds. Per Department of Justice policy, the United States will seek permission to use the funds forfeited in that action to remit back to the victims at a later date. The amount of restitution due to the victims will be determined at a later date.
The U.S. Attorney’s Office and the investigative agencies recognize the U.S. Commodities Futures Trading Commission (CFTC) for its assistance. The CFTC has filed a civil complaint in federal court against Singh, Highrise, and others (Commodity Futures Trading Commission v. Highrise Advantage, LLC, Case No. 6:20-cv-1657-Orl-41GJK).
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Deposit Insurance Corporation – Office of Inspector General, the Internal Revenue Service Criminal Investigation, the St. Cloud IRS Federal Financial Crimes Task Force, and the State of Florida Office of Financial Regulation, with assistance from the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney Roger B. Handberg, and asset recovery will be handled by Assistant United States Attorney Nicole M. Andrejko.
Ohio County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Nicholas Wolf, of Wheeling, West Virginia, has admitted to child pornography possession, U.S. Attorney Bill Powell announced.
Wolf, 34, pled guilty this week to one count of “Possession of Child Pornography.” Wolf admitted to having devices containing images and videos of child pornography in January 2021 in Ohio County.
Wolf’s Wheeling Island home was searched in January. According to the complaint, the search found a thumb drive containing over a thousand images of what appeared to be juveniles. It does not appear as though any of the child pornographic material found in Wolf’s possession was locally produced and/or depicted children that he personally knew.
Wolf faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Department of Homeland Security and Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New Orleans Woman Pleads Guilty to Theft of More Than $280,000 in Federal Student AidRead the Press Release
NEW ORLEANS - The U.S. Attorney’s Office for the Eastern District of Louisiana, announced that ASHLY HOWARD (“HOWARD”), age 33, of New Orleans, Louisiana, pled guilty on February 18, 2021 in federal court before U.S. District Judge Eldon E. Fallon to Theft of Government Funds, in violation of Title 18, United States Code, Section 641 and Identity Theft, in violation of Title 18, United States Code, Section 1028(a)(7).
According to court documents, beginning in 2018 and through 2019, HOWARD fraudulently submitted Free Applications for Federal Student Aid (FAFSA) and/or Master Promissory Notes (MPN) in individuals’ names in an effort to obtain federal financial aid. HOWARD facilitated the submission of thirty (30) applications for admission to Nunez Community College in Chalmette, Louisiana in these individuals’ names. HOWARD facilitated the creation of debit cards in these individuals’ names so that the student loan proceeds could be disbursed. HOWARD accepted the grants and student loans and used the federal financial aid funds under the names of these individuals; some with, and some without, their knowledge or consent. Accordingly, HOWARD fraudulently received approximately $280,000 in Department of Education funds she was not entitled to receive.
The Court set sentencing in this matter for May 27, 2021. HOWARD faces a maximum penalty of fifteen (15) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment per count.
U.S. Attorney Strasser praised the work of the U.S. Department of Education, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Kathryn McHugh.
New Orleans Man Sentenced to Six Years in Prison for Charges Related to Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JEFFERY JOSEPH, age 26, a resident of New Orleans, was sentenced on February 18, 2021 to 74 months in prison by U.S. District Judge Barry W. Ashe. He was the fourth defendant to be sentenced in this seven-defendant conspiracy case.
According to court documents, an investigation by the U.S. Secret Service revealed that JOSEPH and the other six defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own bank accounts. Court documents also detail how JOSEPH took flights with several other co-conspirators to perform fraudulent credit card transactions in various cities in the United States, including St. Louis, Missouri; Richmond, Virginia; Nashville, Tennessee; Portland, Oregon; Milwaukee, Wisconsin; and Cincinnati, Ohio. JOSEPH was also arrested in Minnetonka, Minnesota, and Franklin, Tennessee, while committing credit card fraud.
Federal agents located social media posts by JOSEPH that further established the fraud. For example, a July 2018 Instagram post showed JOSEPH sitting on the hood of a Mercedes with the caption, “I’m living proof that crime do pay.” Another post by JOSEPH in September 2018 showed him in Atlanta with the caption “only ducking indictments,” just six days after two of JOSEPH’S co-conspirators had been arrested. In his plea documents, JOSEPH admitted that he caused between $250,000.00 and $550,000.00 in losses through his own conduct and that of his co-conspirators.
Judge Ashe sentenced JOSEPH pursuant to JOSEPH’S prior guilty plea to three counts of the Third Superseding Indictment in this case. As to conspiracy to commit access device fraud, JOSEPH was sentenced to 50 months in prison and 3 years of supervised release. As to possession of device making equipment, JOSEPH was sentenced to 50 months in prison and 3 years of supervised release. These prison terms were ordered to run concurrently. As to the count of aggravated identity theft, Judge Ashe sentenced JOSEPH to a mandatory consecutive term of two years in prison along with a concurrent term of 1 year of supervised release.
“Today’s sentencing sends a clear message that individuals like Mr. Joseph who engage in fraudulent schemes of theft and deception that impact innocent victims and businesses within our community will be held accountable,” said Leslie Pichon, U.S. Secret Service New Orleans Special Agent in Charge.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the U.S. Secret Service’s Louisiana Cyber Fraud Task Force. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
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New Jersey Man Sentenced for Transporting Women to Virginia for ProstitutionRead the Press Release
NORFOLK, Va. – A Stratford, New Jersey man was sentenced today to two years in prison for transporting two women across state lines for the purpose of engaging in prostitution.
According to court documents, in April 2020, Rockwell Woodrow Pohlig, 30, transported two women to the Eastern District of Virginia, after having convinced one of the women that she was in a relationship with him and that they would open a business together. Pohlig also told the other woman that she was indebted to Pohlig because he had recently paid the funeral expenses for her family member. Once the women were in Virginia, Pohlig told them that they needed to earn money by engaging in commercial sex, and he directed one of them to advertise online their services for prostitution. Pohlig then paid for a third woman to fly to Virginia to engage in prostitution.
At the time of this conduct, Pohlig was being supervised in New Jersey for an unrelated offense.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Paul Nudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Megan Montoya prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-63.
Nebraska Man Found Guilty by Federal Jury of Multiple Sioux Falls Bank RobberiesRead the Press Release
United States Attorney Ron Parsons announced that Ferris Valentine, age 54, of Omaha, Nebraska was found guilty of two counts of Bank Robbery as a result of a federal jury trial in Sioux Falls, South Dakota. The verdict was returned on February 18, 2021.
The charges carry a maximum penalty of 25 years on each count in federal prison and/or a $250,000 fine, five years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Valentine was indicted by a federal grand jury on March 3, 2020.
“I can imagine few things more terrifying than being a bank teller just trying to earn an honest living at work who suddenly finds herself staring down the barrel of a loaded gun,” said U.S. Attorney Parsons. “You have to be a special kind of horrible to commit a violent crime like this once, let alone to give a repeat performance the following year. The FBI, the Sioux Falls Police, and the DCI deserve our admiration and respect for their incredible detective work in solving these despicable crimes.”
On or about November 15, 2016, Valentine, aided by a partner, robbed the First National Bank branch bank located on West 26th Street in Sioux Falls, South Dakota. The day before the robbery, Valentine rented a car in Omaha, Nebraska, and drove to Sioux Falls, South Dakota, with his accomplice. When they robbed the bank, each wore a mask covering their faces. Valentine was armed with a handgun and demanded the bank employees give him the money in the teller drawers and the vault. Both robbers left the bank before the police arrived.
On November 24, 2017, Valentine robbed the same bank again, but without a partner. He wore the same mask and once again, used a firearm to order the bank employees to comply. He grabbed money from the vault and escaped.
After the second robbery, a DNA match connected Valentine’s partner to the first bank robbery, which subsequently led to the charges against Valentine.
The total monies taken from the bank robberies amounted to around $278,000. First National Bank’s deposits were insured by the Federal Deposit Insurance Corporation.
This case was investigated by the Sioux Falls Police Department, South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeremy R. Jehangiri and Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered, and a sentencing date was set for May 10, 2021. Valentine was remanded to the custody of the U.S. Marshals Service.
Nashua Man Sentenced to 300 Months for Manufacturing Child PornographyRead the Press Release
CONCORD - Chad Francisco, 32, of Nashua, was sentenced to 300 months in federal prison for manufacturing child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, a child endangerment inquiry by the Nashua Police Department resulted in a criminal investigation by Homeland Security Investigations (“HSI”). During the investigation, HSI obtained a federal search warrant for Francisco’s cellular phone, which revealed visual depictions of sexually explicit conduct involving two children under the age of 10 years old. Francisco was found to have created the visual depictions using his cellular phone, and he admitted to transmitting the photos to others through text messages.
Francisco previously pleaded guilty on November 3, 2020.
“Protecting the children of New Hampshire is one of the highest priorities of our law enforcement community,” said U.S. Attorney Murray. “This defendant’s sexual exploitation of young children was reprehensible conduct that merited this very substantial prison sentence. We will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who prey on young children to create child pornography.”
This matter was investigated by Homeland Security Investigations with assistance from the Nashua Police Department. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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NDTX Round-Up: February 12-18Read the Press Release
SENTENCING – ALEXANDER CAMPBELL
On February 18, Alexander Campbell, 30, was sentenced to 188 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. In September, a co-conspirator contacted Campbell to setup a purchase of methamphetamine for a buyer. Campbell arrived a hotel in Fort Worth and provided an undercover officer with a large, clear zip-lock bag containing methamphetamine in exchange for $2,550. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Levi Thomas prosecuted the case.
GUILTY PLEA – JERRY WAYNE GILLENTINE
On February 18, Jerry Wayne Gillentine, Jr., 35, pleaded guilty to possession of child pornography. An undercover detective downloaded images of child pornography from a peer-to-peer program that identified Gillentine’s IP address. Based on the download, a search warrant was executed for Gillentine’s residence in Granbury, Texas. Gillentine stated that he was the main user of a laptop that was seized by law enforcement. A forensic examination of Gillentine’s laptop located an image depicting child pornography. Gillentine faces up to 10 years in federal prison for his crimes. This case was investigated by the FBI. Assistant U.S. Attorney Brandie Wade is prosecuting the case.
SENTENCING – JUAN JOSE ROMAN-JUAREZ
On February 12, Juan Jose Roman-Juarez, 27, was sentenced to 4 years in federal prison for illegal entry after removal from the United States. On February 16, 2019, Roman-Juarez was in the Northern District of Texas after previously removed in 2018. Roman-Juarez admits that he is not a United States citizen and was not given consent to be in the United States. This case was investigated by the Department of Homeland Security Immigration Customs Enforcement. Assistant U.S. Attorney Dimitri Rocha prosecuted the case.
SENTENCING – FERNANDO ANTONIO GONZALEZ RODRIGUEZ
On February 10, Fernando Antonio Gonzalez Rodriguez, 36, was sentenced to 1 year in federal prison for transporting illegal aliens. In August 2019, a Hunt County sheriff’s deputy stopped a vehicle with a California license plate for suspended registration. Rodriguez was the driver and there were seven passengers. During the traffic stop, Rodriguez admitted that he had picked the passengers up at a hotel in Houston and was transporting them to Chicago, as part of a larger alien smuggling organization that operates in Texas and California. Rodriguez states that this was his third trip transporting illegal aliens and that he was paid $400 for the trip. This case was investigated by HSI. Assistant U.S. Attorney Melanie Smith is prosecuting the case.
Myrtle Beach Convicted Felon Sentenced to Nearly Three Years in Federal Prison after Possessing Sawed-off ShotgunRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Kevin Richard Dextraze, 32, of Myrtle Beach, was sentenced to nearly three years in federal prison after pleading guilty to possessing a firearm as a convicted felon.
Evidence presented to the court showed that on February 22, 2019, the Myrtle Beach Police Department received a complaint about a man with a shotgun. Officers located the man, Dextraze; and a search incident to arrest revealed a 20 gauge sawed-off shotgun. Dextraze is prohibited from possessing a firearm based on his prior conviction for second degree burglary.
United States District Judge Donald C. Coggins, Jr. sentenced Dextraze to 34 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department. Assistant United States Attorney Lauren Hummel prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mullins Man Sentenced to Ten Years in Federal Prison for Distributing CocaineRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Gregory Lavon McCollum, 46, of Mullins, was sentenced to ten years in federal prison after pleading guilty to possessing with intent to distribute cocaine and distributing cocaine.
Evidence presented to the court showed that on February 20, 2019, agents from the Marion County Combined Drug Unit used a confidential informant to make a controlled drug purchase from McCollum. After being provided with police funds to make the purchase, the informant traveled to a location in Mullins and purchased a powder substance from McCollum. A forensic scientist later confirmed that the substance was cocaine.
United States District Judge Donald C. Coggins, Jr. sentenced McCollum to 120 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Marion County Combined Drug Unit. Assistant United States Attorney Lauren Hummel prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Milla Gangsta Bloods Gang Member Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Nathaniel Myers a/k/a Stretch, 26, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Joel L. Violanti, who are handling the case, stated that the defendant has been in custody at the Niagara County Jail pending the resolution of two separate federal indictments. While at the Niagara County Jail, Myers met Individual 1, who was later released from custody at the jail. Beginning in January 2020, investigators learned that the defendant had been in communication with Individual 1, in an effort to obtain large amounts of narcotics for distribution in the Buffalo area. In jail calls, Myers agreed to pay Individual 1 $39,000 for a kilogram of heroin, as well as $3,000 to Individual 2 who would be driving the kilogram of heroin from North Carolina to Buffalo. On January 13, 2020, Individual 2 delivered the kilogram of heroin to Individual 3 for further distribution. After being told by Individual 3 that the narcotics received “mixed reviews,” Myers arranged for another kilogram of heroin to be sent from the Chula Vista, CA, area to a residence on Leonard Street in Buffalo.
In May 2020, Individual 1 discussed with Myers how business had slowed down during the COVID-19 pandemic. Subsequently, Individual 1 sent a quarter kilogram of cocaine to Individual 3 for distribution. On May 16, 2020, the DEA seized another package of suspected cocaine. On May 17 and 18, 2020, Myers discussed the seizure of the package with Individuals 1 and 3 in jail calls. In a follow-up call on May 30, 2020, the defendant and Individual 1 discussed providing another co-conspirator with narcotics. That same day, the DEA seized a package containing 3,000 pills of suspected fentanyl/Percocet. In a jail call on June 1, 2020, the defendant and Individual 1 discussed the lost package.
On June 4, 2020, a package was delivered to Individual 3, who then left his residence carrying a white plastic bag and drove away in his vehicle. Law enforcement officers attempted to conduct a vehicle stop, but Individual 3 sped away and engaged in a high-speed chase, eluding officers for approximately a mile on Route 33. As Individual 3 entered Route 33, he threw a plastic bag from his window. Individual 3 was arrested on state charges. After being released from custody, Individual 3 drove to the area of Route 33 where he discarded the plastic bag, however, the plastic bag was replaced by investigators with a “sham” package of narcotics. On July 14, 2020, Individual 3 was taken into custody on a federal arrest warrant. A search warrant was executed at his residence on East Lovejoy Street in Buffalo and on his car. Investigators recovered suspected cocaine, a scale, mixing bowl, bottles of cutting agents, gloves, plastic bags for packaging, and a hydraulic press.
Myers previously pleaded guilty to federal charges of conspiring to possess with intent to distribute, and distributing, controlled substances and 280 grams or more of crack cocaine, which carry a maximum penalty of life in prison.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for May 20, 2021, before Judge Geraci.
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Mexican National Extradited to Face Sex Trafficking and Related ChargesRead the Press Release
Hugo Hernandez-Velazquez, also known as “Norberto Hernandez Velasquez” and “La Gallina,” will be arraigned via videoconference this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn on a 12-count indictment. Along with his siblings Arcelia Hernandez-Velazquez, also known as “La Gordis,” and Ernesto Hernandez-Velazquez, also known as “Chapas,” Hugo Hernandez-Velazquez is charged with racketeering and racketeering conspiracy involving predicate acts of sex trafficking by force, fraud and coercion, interstate prostitution, alien smuggling, money laundering and related offenses. Hugo Hernandez-Velazquez was arrested on a provisional arrest warrant in August 2020 and extradited on Wednesday, February 17, 2021, from Mexico to the United States. His co-defendants were previously arrested in New York in November 2019 and are currently awaiting trial.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.
“For nearly two decades, the defendants lured young women into a brutal life of forced prostitution through false promises of a better life,” stated Acting United States Attorney DuCharme. “This Office will leave no stone unturned in its efforts to end the illegal exploitation of young women and in holding the defendants to account for their crimes and the lasting harm they have inflicted on their victims.”
Mr. DuCharme thanked the Department of Justice’s Office of International Affairs for their assistance, the New York City Police Department for its longstanding partnership in the Office’s coordinated anti-trafficking program, and the State Department. Mr. DuCharme also thanked the many victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking. In particular, Mr. DuCharme thanked the organizations and individuals who provided services and advocacy to the victims in this case.
“Words can’t describe the type of person who preys on and victimizes women by forcing them into prostitution while using violence to maintain control over them. Hugo Hernandez-Velazquez and his organization did just that, treating women as mere commodities meant to be bought and sold rather than as human beings deserving of respect,” stated HSI Special Agent-in-Charge Fitzhugh. “As human trafficking operates in darkness, HSI works tirelessly to rescue victims out of the shadows as we investigate and hold accountable those who exploit and victimize others for their own financial advantage.”
As set forth in the indictment, since at least 2001, the Hernandez-Velazquez Trafficking Organization, a family organization based in Mexico, has used force, fraud and coercion to cause young women in Mexico to engage in prostitution in the United States. Members of the organization lured victims into romantic relationships through false promises of love and support. Victims were taken to the homes of members of the organization in Tenancingo, Mexico, where they were often not allowed to leave the home and not allowed to contact their families. The victims were pressured to travel to the United States with promises of a better life with their trafficker. After the young women were smuggled into the United States, members of the organization transported them to various states, including Alabama, Connecticut, Florida, Georgia, Louisiana, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee and Virginia, to engage in prostitution. In addition, the organization maintained a base of operations in Queens, New York. Members of the organization used violence, including physical beatings and forced abortions, and threatened violence to the victims’ families to force the victims to continue prostituting. The prostitution proceeds were sent to members of the organization in Mexico through wire transfers and cash shipments.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, the defendants face life imprisonment.
The government’s case is being prosecuted by the Office’s Civil Rights Section. Assistant United States Attorneys Margaret Lee and Erin Reid are in charge of the prosecution.
The Defendants:
ARCELIA HERNANDEZ-VELAZQUEZ
Age: 47
Queens, New YorkERNESTO HERNANDEZ-VELAZQUEZ
Age: 40
Queens, New YorkHUGO HERNANDEZ-VELAZQUEZ
Age: 45
MexicoE.D.N.Y. Docket No. 19-CR-306(S-1)(WFK)
Man from Albuquerque sentenced to four years in federal prison for firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Robert Alderete, 32, of Albuquerque, was sentenced in federal court in Albuquerque on Feb. 18 to three years and eight months in prison for being a felon in possession of a firearm and ammunition.
According to public court documents, Alderete was driving recklessly in Albuquerque on Dec. 4, 2019, when a deputy stopped him. During the search of Alderete’s vehicle, the deputy discovered a semi-automatic rifle with a high-capacity magazine and anxiety pills.
Upon completion of his prison sentence, Alderete will be subject to three years of supervised release.
The FBI Violent Crimes Task Force and the Bernalillo County Sheriff’s Office investigated the case. Assistant U.S. Attorney Jaymie L. Roybal prosecuted the case.
Man Charged with COVID-Relief FraudRead the Press Release
A New York man was charged in a criminal complaint unsealed today for his alleged participation in a scheme to defraud multiple financial institutions by filing bank loan applications that fraudulently sought forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney James P. Kennedy for the Western District of New York, Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Special Agent in Charge William Kalb of the U.S. Treasury Inspector General for Tax Administration’s Office of Inspector General’s (TIGTA-OIG’s) North East Field Office, Special Agent in Charge Stephen Belongia of the FBI’s Buffalo Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA's Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
Christian Johnson, 23, of Buffalo, was charged by criminal complaint filed in the Western District of New York with wire fraud, bank fraud, and false statements to a financial institution.
The complaint alleges that Johnson submitted multiple fraudulent PPP loan applications on behalf of a company called Million Man LLC (Million Man) to at least three financial institutions. The complaint alleges that these applications contained numerous false and misleading statements about Million Man’s business and operations, including the number of employees and average monthly payroll. The complaint further alleges that in support of the fraudulent loan applications, Johnson submitted falsified federal tax documents payroll records.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal complaint is merely an allegation. A defendant is presumed innocent until proven guilty.
This case was investigated by the FDIC-OIG, TIGTA-OIG, FBI, and SBA-OIG. Trial Attorneys Joshua N. DeBold and Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David J. Rudroff of the U.S. Attorney’s Office of the Western District of New York are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the nine months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Long Island Car Wash Owner Pleads Guilty to Tax EvasionRead the Press Release
A Coram, New York, car wash owner pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Seth D. DuCharme for the Eastern District of New York.
According to court documents and statements made in court, Nicholas Pascullo, 56, operated a car wash and detailing business called H2O Car Wash & Exotic Detailing LLC (H2O), based in Lindenhurst, New York. From 2012 to 2017, Pascullo attempted to evade income and employment taxes owed by him and H2O for calendar years 2012 through 2016. As part of the scheme, Pascullo filed false partnership and individual income tax returns with the IRS that underreported the gross receipts earned by H2O and the flow-through income received by Pascullo and his partners.
Pascullo also concealed assets and sources of income by manipulating H2O’s books and records, including its point-of-sale system, by failing to file certain reports with the IRS, and by making unreported cash payments to H2O’s employees and to himself. In 2012 and 2013, Pascullo willfully filed false quarterly employment tax returns (Forms 941) that underreported H2O’s payroll tax liabilities for these years, including the extent of its cash payroll. In total, Pascullo caused a combined tax loss to the IRS of approximately $315,000.
Sentencing will be held before U.S. District Judge Denis R. Hurley. At sentencing, Pascullo faces a statutory maximum sentence of five years. Pascullo also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney DuCharme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Jorge Almonte and Trial Attorney Eric Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Labelle Man Sentenced to Five Years for Possessing Child Sexual Abuse Images and VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced William Nobles (61, LaBelle) to five years in federal prison for possession of images and videos depicting the sexual abuse of children. Nobles was also sentenced to a 20-year term of supervised release and was ordered to register as a sex offender.
Nobles was found guilty following a bench trial on January 16, 2020.
According to court documents, FBI agents began an undercover investigation to identify individuals who were using a particular website on the dark web to access and download images and videos depicting the sexual abuse of children. From February 20, 2015 to March 3, 2015, Nobles accessed visual images of children engaging in sexually explicit conduct. FBI agents executed a federal search warrant at Nobles’s residence. During an interview with law enforcement, Nobles admitted to accessing and viewing child pornography on the website. A subsequent forensic examination of Nobles’s computer, CDs, and thumb drive revealed images and videos depicting children being sexually abused that Nobles had accessed and downloaded using the dark web.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, which includes the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Justice Department Files Lawsuit Against Tampa-Area Physician, Pharmacy, and Clinic Owners for Controlled Substances Act ViolationsRead the Press Release
The United States filed a civil complaint seeking to permanently enjoin the owners of a Tampa-area clinic and pharmacy from unlawfully dispensing opioids and other controlled substances, the Department of Justice announced today.
In a complaint filed in U.S. District Court for the Middle District of Florida, the government alleges that Dr. Tobias Bacaner, Theodore Ferguson II, and Timothy Ferguson used Paragon Community Healthcare Inc., to unlawfully issue controlled substance prescriptions, and Cobalt Pharmacy Inc., to unlawfully fill controlled substance prescriptions, all in violation of the Controlled Substances Act. The complaint alleges that the defendants ignored obvious signs of abuse or diversion when issuing and filling opioid prescriptions. The complaint also alleges that drug toxicity played a role in the deaths of several individuals who received controlled substances from the defendants.
“The opioid addiction epidemic continues to devastate communities,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice and its law enforcement partners will hold accountable those who illegally distribute and dispense opioids.”
“The illicit proliferation and abuse of opioids, by any means, remains a growing threat to communities across the country,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When these means include the breach of trust and illegal conduct of medical professionals, for profit, it is even more disturbing. The U.S. Attorney’s Office will continue to work with its partners to investigate and prosecute those who violate their oath and put the public at risk.”
“DEA will not tolerate individuals who seek to profit from addiction and prey on vulnerable populations,” said Acting Administrator D. Christopher Evans of the Drug Enforcement Administration (DEA). “We will use every tool at our disposal to stop and bring to justice those who willfully endanger others and exacerbate the opioid epidemic.”
The complaint alleges that Bacaner, a medical doctor licensed in Florida, wrote prescriptions for potent and dangerous opioids outside the usual course of professional practice. The complaint alleges that Bacaner and his business partners, Theodore and Timothy Ferguson, profited from unlawful prescribing at the Fergusons’ cash-only pain clinic, Paragon Community Healthcare, and that patients from Paragon often took those same prescriptions to the defendants’ jointly owned pharmacy, Cobalt Pharmacy. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
A civil complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being handled by Assistant U.S. Attorney Lindsay S. Griffin and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA’s Tactical Diversion Squad in the Tampa District Office.
Justice Department Files Lawsuit Against Tampa-Area Physician, Pharmacy, and Clinic Owners for Controlled Substances Act ViolationsRead the Press Release
Tampa, FL – The United States filed a civil complaint seeking to permanently enjoin the owners of a Tampa-area clinic and pharmacy from unlawfully dispensing opioids and other controlled substances, the Department of Justice announced today.
In a complaint filed in U.S. District Court for the Middle District of Florida, the government alleges that Dr. Tobias Bacaner, Theodore Ferguson II, and Timothy Ferguson used Paragon Community Healthcare Inc., to unlawfully issue controlled substance prescriptions, and Cobalt Pharmacy Inc., to unlawfully fill controlled substance prescriptions, all in violation of the Controlled Substances Act. The complaint alleges that the defendants ignored obvious signs of abuse or diversion when issuing and filling opioid prescriptions. The complaint also alleges that drug toxicity played a role in the deaths of several individuals who received controlled substances from the defendants.
“The opioid addiction epidemic continues to devastate communities,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice and its law enforcement partners will hold accountable those who illegally distribute and dispense opioids.”
“The illicit proliferation and abuse of opioids, by any means, remains a growing threat to communities across the country,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When these means include the breach of trust and illegal conduct of medical professionals, for profit, it is even more disturbing. The U.S. Attorney’s Office will continue to work with its partners to investigate and prosecute those who violate their oath and put the public at risk.”
“DEA will not tolerate individuals who seek to profit from addiction and prey on vulnerable populations,” said Acting Administrator D. Christopher Evans of the Drug Enforcement Administration (DEA). “We will use every tool at our disposal to stop and bring to justice those who willfully endanger others and exacerbate the opioid epidemic.”
The complaint alleges that Bacaner, a medical doctor licensed in Florida, wrote prescriptions for potent and dangerous opioids outside the usual course of professional practice. The complaint alleges that Bacaner and his business partners, Theodore and Timothy Ferguson, profited from unlawful prescribing at the Fergusons’ cash-only pain clinic, Paragon Community Healthcare, and that patients from Paragon often took those same prescriptions to the defendants’ jointly owned pharmacy, Cobalt Pharmacy. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The case is being handled by Assistant U.S. Attorney Lindsay S. Griffin, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA’s Tactical Diversion Squad in the Tampa District Office.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 17 was:
Travis Rusty Wallace, 18, of Lodge Grass, on charges of arson. If convicted of the most serious crime, Wallace faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Wallace was detained pending further proceedings. The FBI investigated the case. PACER case reference. 20-137.
Appearing on Feb. 19 and pleading not guilty was:
Quinn Henry Jessen, 38, of Miles City, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Jessen faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the conspiracy and fraud counts and a minimum mandatory consecutive two years in prison, a $250,000 fine and one year of supervised release on the identity theft count. Jessen was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 20-128.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Indicted for Armed Robbery of Gas Station in BayamónRead the Press Release
SAN JUAN, Puerto Rico – On February 10, 2021, a federal grand jury returned a two-count indictment charging Rey Omar Pagán-Hernández with the armed robbery of gas station, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the indictment, on July 5, 2020, Rey Omar Pagán-Hernández robbed at gunpoint a Toral gas station located at 101 Magnolia Avenue in Bayamón. He stole approximately $800 and merchandise.
Assistant U.S. Attorney Juan Carlos Reyes-Ramos of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. If convicted, the defendant faces a sentence in excess of seven years in prison.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Houston Women Sentenced for Trading Illegal Drugs for Automatic WeaponsRead the Press Release
BEAUMONT, Texas – Two Houston women have been sentenced for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Cristal Lagunas, 26, and Iris Venture, 22, were indicted by a federal grand jury and charged with conspiracy to possess with intent to distribute cocaine and methamphetamine on March 18, 2020. They pleaded guilty in September 2020. Today, both defendants were sentenced to 135 months in federal prison by U.S. District Judge Marcia A. Crone.
“This case exemplifies how multiple federal law enforcement agencies can work together to take down those involved in the illegal drug trade,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to bring all resources to the fight against unlawful narcotics and firearms trafficking.”
According to information presented in court, on March 10, 2020, Lagunas and Ventura met an undercover federal agent at a credit union in Beaumont, Texas, to exchange a kilogram of methamphetamine and $600 cash for three fully automatic AK-47 rifles.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Hospice Administrator Sentenced for Role in Hospice Fraud SchemeRead the Press Release
The administrator of a Southern California hospice was sentenced Thursday to 30 months in prison for his role in a multimillion dollar hospice fraud scheme.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office, and Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
Antonio Olivera, 80, of Norwalk, was also ordered to pay $2,193,914 in restitution. Olivera pleaded guilty to one count of conspiracy to commit health care fraud in November 2020. Three co-conspirators have pleaded guilty and are awaiting sentencing.
As part of his guilty plea, Olivera admitted that from 2011 to 2018, while acting as administrator for Mhiramarc Management LLC (Mhiramarc), a hospice located in Downey, California, Olivera and others paid illegal kickbacks to patient recruiters for the referral of hospice beneficiaries to Mhiramarc. Further, when clinical staff at Mhiramarc determined beneficiary referrals did not qualify to receive hospice services, Olivera overruled those determinations and nonetheless caused the beneficiaries to be put on hospice service.
Olivera and co-conspirators caused Mhiramarc to submit approximately $28 million in claims to Medicare, which resulted in the company being paid over $17 million. Olivera was personally responsible for $4,769,982 in false and fraudulent claims to Medicare, resulting in Medicare paying Mhiramarc $2,984,914 for medically unnecessary hospice services for beneficiaries, many of whom had been recruited through illegal kickbacks.
This case was investigated by the FBI’s Los Angeles Field Office and HHS-OIG’s Los Angeles Regional Office. Trial Attorneys Justin Givens and Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Grand Jury - February 2021Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 17 unsealed Indictments charging 19 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Clifford R. Badberg, age 64, is charged with bank theft for stealing an ATM from Giltner State Bank on or about February 15, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Edward J. Barta, age 45, of Papillion, Nebraska, is charged with drug user in possession of a firearm on or about December 20, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Manuel Castro Gabriel, age 26, is charged with illegal reentry after deportation on or about December 21, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Blake D. Colson, age 29, of Omaha, is charged with theft of firearms on or about November 8, 2020 and continuing to on or about January 5, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit firearms seized on or about January 5, 2021.
* Gilbert Cruz Hernandez, age 45, of Hemet, California, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about August 8, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment.
* Robert D. Dankemeyer, age 60, of Deshler, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (actual) between on or about June 22, 2020 and June 27, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, a five-year term of supervised release, $100 special assessment. Count II charges the defendant with felon in possession of a firearm between on or about June 22, 2020 and June 27, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kaden Henry, age 22, is charged in a two-count Indictment. Count I charge the defendant with conspiracy and possession with intent to distribute 50 grams or more of methamphetamine on or about November 2016 and continuing to on or about November 12, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment. Count II charges the defendant with concealment money laundering on or about November 2016 and continuing to on or about November 12, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $500,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Delbert Lewis, age 27, is charged with a felon in possession of a firearm on or about December 21, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Carlos Lomeli-Jimenez, age 37, is charged with illegal reentry after deportation on or about February 3, 2021, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Craig S. Marsh, age 32, of Kearney, Nicole T. Beattie, a/k/a Nicole T. Barr, age 28, of Kearney, and Jeremy S. Gerdes, age 37, of Kearney, are charged in a two-count Indictment. Count I charges the defendants with possession with intent to distribute 50 grams or more of methamphetamine (actual) and 50 grams or more of methamphetamine (mixture) on or about October 29, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Marsh with distribution of 5 grams or more of methamphetamine (actual) on or about October 26, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment.
* Victor Gerado Mendez-Gil, age 32, is charged with possession with intent to distribute 500 grams or more of methamphetamine on or about February 16, 2021. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Luis D. Pelayo Alcantar, age 26, is charged with illegal reentry after deportation on or about October 5, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Monty Roesler, age 61, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges Roesler with abusive sexual contact of a ward on or about October 7, 2020. The maximum possible penalty if convicted is two years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count II charges the defendant with abusive sexual contact of a ward on or about September 21, 2020 and continuing to on or about October 6, 2020. The maximum possible penalty if convicted is two years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment.
* William J. Stafford, age 43, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about November 7, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment. Count II charges the defendant with felon in possession of a firearm on or about June 26, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Lloyd Torske, age 35, of Carter Lake, Iowa, is charged in a two-count Indictment. Count I charges the defendant with felon in possession of ammunition on or about December 29, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with felon in possession of a firearm on or about January 18, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jerrell S. Tyndall, age 25, of Macy, Nebraska, is charged in a two-count Indictment. Count I charges Tyndall with being a felon in possession of a firearm on or about January 14, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with tampering with documents or proceedings on or about February 12, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Lonnie Woodhull, age 20, is charged with interstate transportation of a stolen vehicle on or about December 18, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Georgia Man Charged for Conspiracy to Distribute Nearly 75 Pounds of MethamphetamineRead the Press Release
LAS VEGAS, Nev. – A Georgia man who was traveling cross-country with nearly 75 pounds of methamphetamine in a commercial vehicle made his initial appearance in federal court on Thursday, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration (DEA), and Colonel Anne Carpenter for the Nevada Department of Public Safety (DPS) - Highway Patrol Division (NHP).
Jaquavius Trishun Powell, 26, of Monroe, Georgia, was charged with one count of conspiracy to distribute a controlled substance and one count of possession with intent to distribute a controlled substance. Powell made his initial appearance before U.S. Magistrate Judge Elayna J. Youchah who scheduled a preliminary hearing for March 4, 2021.
According to allegations in the complaint, on February 15, 2021, the Nevada Highway Patrol conducted a traffic stop on a commercial pickup truck that was towing an unregistered enclosed trailer. Powell was driving the truck, which was going north on I-15 near Flamingo Road. Powell stated that he and a passenger were traveling without a load from San Diego, California to Monroe, Georgia. During an inspection of the trailer, approximately 74 pounds of methamphetamine were recovered. Powell also had a firearm in a bag in the trailer, and the passenger concealed a firearm under the rear passenger seat.
If convicted, Powell faces a mandatory minimum of 10 years in prison, and a maximum statutory penalty of life in prison.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the DEA and DPS-NHP.
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Former Vermillion Township Clerk Charged with $650,000 Wire Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced a felony information charging MARYANN HELEN STOFFEL, 70, of Hastings, Minn., with one count of wire fraud. STOFFEL will make her initial appearance before a Judge in U.S. District Court at a later date.
According to the allegations in the information, from December 2012 through October 2020, STOFFEL used her position as the Clerk of the Township of Vermillion, an elected position, to misappropriate more than $650,000 of Township funds. Although, in her role as Clerk, STOFFEL had signature authority over the Township’s bank account, Township checks required at least two signatures. As part of the fraud scheme, STOFFEL, at times, forged the signatures of the Township’s Treasurer and the Chairman of the Township Board on Township checks. At other times, STOFFEL solicited signatures from the Township’s Treasurer and the Chairman of the Township Board on blank Township checks by falsely representing that she would use the checks to pay the Township’s bills. Instead of using the funds to pay the Township’s bills, STOFFEL transferred the funds to her personal bank account for her own use and benefit. STOFFEL concealed her fraud from the Township and from the State of Minnesota by excluding the unauthorized payments to herself on the Township’s annual report.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MARYANN HELEN STOFFEL, 70
Hastings, Minn.
Charges:
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former U.S. Air Force Member Sentenced for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Virginia man who was dishonorably discharged from the U.S. Air Force was sentenced today to seven years in prison for receiving images of child sexual abuse and failing to maintain his sex offender registration as required.
“Bryson Miller not only accessed and retained thousands of videos and images of child sexual abuse from the dark web, but he also failed to update his sex offender registration while employed in a position in which he interacted with children,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Protecting society’s most vulnerable and innocent members—including children—is a top priority for EDVA and the Department of Justice.”
According to court documents, Bryson McNeal Miller, 40, of Alexandria, received a substantial amount of child pornography over the course of several years by accessing sites on the “dark web.” Miller retained thousands of these videos and images of child sexual abuse on various electronic devices in his possession. Additionally, Miller failed to maintain an accurate record of his employment with the Virginia sex offender registry, in that Miller failed to inform authorities that he was employed at a northern Virginia martial arts studio where some of his students were children. Miller was required to register as a sex offender due to a 2006 conviction for possession of child pornography while Miller was serving in the U.S. Air Force.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Seth Schlessinger prosecuted the case.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state, and federal partners, investigated 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. 1:20-cr-200.
Final Defendant—A Drug Supplier in D.C. and Prince George’s County Drug Conspiracy—Pleads Guilty to Federal ChargesRead the Press Release
Baltimore, Maryland – Thomas Parker III, a/k/a “June,” age 52, of Washington, D.C., pleaded guilty yesterday to federal charges related to his participation in a conspiracy to distribute fentanyl, heroin, and powder and crack cocaine. Eight co-defendants previously pleaded guilty to their roles in the drug conspiracy.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Interim Chief Hector Velez of the Prince George’s County Police Department; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Charles County Sheriff Troy Berry.
According to his guilty plea, from September 2017 to July 2018, Parker and his co-conspirators distributed heroin, fentanyl, and powder and crack cocaine to drug users and distributors in the Maryland and D.C. area. Specifically, Parker supplied heroin and cocaine to co-defendants Arsenio Cleckley (a major narcotics trafficker in Maryland and Washington, D.C), and Diamante Hailey.
As detailed in his plea agreement, on March 9, 2018, Parker and Cleckley spoke over the phone, and Parker told Cleckley that he was serving time in a halfway house, but that a co-conspirator could supply drugs to Cleckley until Parker was released. Shortly thereafter, the co-conspirator sold heroin to Cleckley. Cleckley later complained to Parker that the heroin he got from the co-conspirator was diluted too much. On March 12, 2018, Parker arranged to supply Cleckley with 28 grams of heroin and 31 grams of cocaine. The next day, Cleckley told Parker he wanted to purchase “28 plus 10,” which meant he wanted 28 grams of heroin for himself and 10 grams of heroin for one of his associates. During the conversation, Cleckley again complained about the quality of the heroin he had previously obtained from the co-conspirator. Later on March 13, 2018, Cleckley called Hailey and told him that he had obtained 10 grams of heroin on Hailey’s behalf from Parker.
Parker admitted that on March 15, 2018, he distributed 28 grams of heroin to Cleckley in exchange for $1,800. Cleckley then contacted Hailey to let him know that Cleckley was going to direct heroin users to Hailey’s location so that the users could purchase heroin from Hailey. Later the same day, Cleckley told Hailey that Cleckley intended to purchase an additional 28 to 30 grams of heroin from Parker that Cleckley could split with Hailey.
Between March 20 and May 25, 2018, Parker and Cleckley continued to negotiate drug transactions, including a conversation where Cleckley asked Parker to lower the price he was charging for a gram of heroin, and conversations in which Parker advised Cleckley that Hailey and Cleckly owed him money. During one such call on May 25, 2018, Cleckley told Parker that he recently “fell in a hole” when one of Cleckley’s distributors, James Belt, was arrested with 32.5 grams of crack cocaine on May 18, 2018, in Accokeek, Maryland.
Parker and the government have agreed that, if the Court accepts the plea, Parker will be sentenced to between 78 and 120 months in federal prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for July 15, 2021 at 12 p.m.
Co-defendants Arsenio Cleckley, a/k/a Bund, age 31 of Accokeek, Maryland; Diamante Lacelle Hailey, a/k/a Tay, age 27 of Clinton, Maryland; James Belt, a/k/a JB, age 32, of Lanham, Maryland; Alphonso Leroy Anthony Black, a/k/a Kobe, age 24 of Temple Hills, Maryland; Terri Bordeaux, a/k/a CeCe and Auntie, age 49, of Washington, D.C.; Christina Marshall, a/k/a Chrissy, age 31, of Accokeek; Devin Simmons, age 42, of Marbury, Maryland; and William Stewart, a/k/a Lil’ Will, age 23, also of Marbury, all previously pleaded guilty. Simmons, Belt, and Hailey were sentenced to five years in federal prison, 54 months in federal prison, and time served—approximately 22 months, respectively, each followed by three years of supervised release. The remaining defendants are awaiting sentencing.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Prince George County Police Department, the DEA, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney’s Erin B. Pulice and Jennifer L. Wine, who is prosecuting the case.
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Federal Officials Close Investigation into February 2017 Arrest of Michael FesserRead the Press Release
PORTLAND, Ore.—The U.S. Attorney Office for the District of Oregon announced today that the federal criminal investigation into the arrest of Portland resident Michael Fesser on February 25, 2017 has been closed after finding insufficient evidence to support federal criminal prosecution.
In February 2020, the U.S. Attorney’s Office, the Justice Department’s Civil Rights Division, and the FBI opened a criminal investigation into the circumstances surrounding Mr. Fesser’s arrest following media reports that the West Linn Police Department had settled a civil lawsuit with Mr. Fesser. This federal investigation sought to determine whether the evidence of events leading to Mr. Fesser’s arrest was sufficient to prove beyond a reasonable doubt that any officers’ actions violated federal criminal civil rights or public corruption statutes.
The FBI conducted an independent investigation of the facts surrounding Mr. Fesser's arrest. It interviewed 18 people, including Mr. Fesser, current and former police officers, current and former City of West Linn City employees, and community members. The FBI received approximately 28,000 pages of material in response to 24 subpoenas, including investigative records, training and disciplinary records, phone records, and financial records.
After examining the circumstances surrounding Mr. Fesser’s arrest and the evidence gathered, the FBI and career Justice Department prosecutors from the U.S. Attorney’s Office and the Civil Rights Division concluded that they could not prove beyond a reasonable doubt that officers involved in Mr. Fesser’s arrest willfully violated Mr. Fesser’s civil rights or federal public corruption statutes. In this case, under the applicable federal criminal civil rights laws, the government would have to prove beyond a reasonable doubt that Mr. Fesser’s constitutional rights were violated and, if a violation occurred, the actions taken by law enforcement officers were willful.
Willfulness requires proof that an officer acted with the specific intent to do something the law forbids. It is not enough to show that an officer made a mistake, acted negligently, acted by accident or mistake, or even exercised bad judgment. Here, the government cannot prove that the manner in which Mr. Fesser was arrested violated a federally protected right, or that the actions taken by law enforcement officials were willful as defined above.
To the extent that the criminal investigation into Mr. Fesser’s arrest raised issues concerning the broader policies and practices of the West Linn Police Department, the U.S. Attorney’s Office has taken steps to connect West Linn and its police department to national community oriented policing technical assistance.
The Justice Department remains committed to investigating wrongful arrest allegations and will continue to devote the resources required to ensure that all allegations of civil rights violations are thoroughly examined. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so and pursues alternatives when there is not.
Federal Information Technology Contractor Agrees to Pay More Than $6 Million to Settle Federal False Claims Act Allegations of OverbillingRead the Press Release
Baltimore, Maryland – Virginia-based Information Innovators, Inc. (Triple-I) has agreed to pay the United States $6.05 million to resolve allegations that a predecessor company, Creative Computing Solutions, Inc. (CCSi), violated the False Claims Act by knowingly overbilling the U.S. Department of Homeland Security (DHS) for work performed by CCSi employees who lacked required job qualifications.
The settlement was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division; and Inspector General Joseph V. Cuffari of the Department of Homeland Security Office of Inspector General.
“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” said Acting U.S. Attorney Jonathan F. Lenzner. “The U.S. Attorney’s Office and our partners are committed to protecting taxpayer dollars and ensuring integrity and compliance with federal agency standards.”
“Contractors that knowingly overcharge the government will be held accountable,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department will ensure that that those who do business with the government, and seek taxpayer funds, do so fairly and in accordance with their contractual commitments.”
“DHS OIG remains committed to protecting government programs, and American taxpayers who contribute to them, from fraudsters,” said Inspector General Joseph V. Cuffari. “Our agency, working closely with our law enforcement partners, will continue to root out these unlawful contracting fraud schemes.”
Triple-I, which provides information technology (IT) services and solutions to federal agencies, acquired Maryland-based CCSi in 2015. CCSi formerly provided IT services to DHS pursuant to an Enterprise Acquisition Gateway for Leading Edge Solutions Contract (EAGLE Contract). The settlement resolves allegations that, from October 2007 to April 2014, CCSi knowingly submitted claims for payment to DHS for work performed by CCSi employees who lacked required job qualifications. CCSi allegedly violated the terms of the EAGLE Contract by using under-qualified personnel who were billed to DHS at higher rates reserved for more qualified employees.
The claim resolved by this settlement is an allegation. The settlement is not an admission of liability by CCSi, nor a concession by the United States that its claims are not well founded.
The settlement was a result of an investigation by the U.S. Attorney’s Office for the District of Maryland, the Department of Justice Civil Division’s Commercial Litigation Branch - Fraud Section, and the DHS Office of Inspector General, Major Frauds and Corruption Unit. Acting United States Attorney Jonathan F. Lenzner and Acting Assistant Attorney General Brian Boynton commended the DHS Office of the Inspector General for their work in the investigation and thanked Assistant U.S. Attorney Tarra DeShields and Trial Attorney Jake M. Shields of the U.S. Department of Justice’s Civil Division, Fraud Section, who handled this case.
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Federal Contractor Agrees to Pay More Than $6 Million to Settle Overbilling AllegationsRead the Press Release
Virginia-based Information Innovators Inc. (Triple-I) has agreed to pay the United States $6.05 million to resolve allegations that a predecessor company, Creative Computing Solutions Inc. (CCSi), violated the False Claims Act by knowingly overbilling the U.S. Department of Homeland Security (DHS) for work performed by CCSi employees who lacked required job qualifications.
Triple-I, which provides IT services and solutions to federal agencies, acquired Maryland-based CCSi in 2015. CCSi formerly provided IT services to DHS pursuant to an Enterprise Acquisition Gateway for Leading Edge Solutions Contract (EAGLE Contract). The settlement resolves allegations that, from October 2007 to April 2014, CCSi knowingly submitted claims for payment to DHS for work performed by CCSi employees who lacked required job qualifications. CCSi allegedly violated the terms of the EAGLE Contract by using under-qualified personnel who were billed to DHS at higher rates reserved for more qualified employees.
“Contractors that knowingly overcharge the government will be held accountable,” said Acting Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will ensure that that those who do business with the government, and seek taxpayer funds, do so fairly and in accordance with their contractual commitments.”
“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “The U.S. Attorney’s Office and our partners are committed to protecting taxpayer dollars and ensuring integrity and compliance with federal agency standards.”
“DHS OIG remains committed to protecting government programs, and American taxpayers who contribute to them, from fraudsters,” said Inspector General Joseph V. Cuffari. “Our agency, working closely with our law enforcement partners, will continue to root out these unlawful contracting fraud schemes.”
The settlement was a result of a joint investigation by the Civil Division’s Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the District of Maryland, and the Department of Homeland Security Office of the Inspector General’s Major Frauds and Corruption Unit. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal Charges Against Stanford University Researcher ExpandedRead the Press Release
A federal grand jury issued a superseding indictment charging Chen Song with visa fraud, obstruction of justice, destruction of documents, and false statements in connection with a scheme to conceal and lie about her status as a member of the People’s Republic of China’s military forces while in the United States, the Justice Department announced yesterday.
“We allege that while Chen Song worked as a researcher at Stanford University, she was secretly a member of China’s military, the People’s Liberation Army,” said U.S. Attorney David L. Anderson for the Northern District of California. “When Song feared discovery, she destroyed documents in a failed attempt to conceal her true identity. This prosecution will help to protect elite institutions like Stanford from illicit foreign influences.”
"Members of the Chinese People's Liberation Army cannot lie on their visa applications and come to the United States to study without expecting the FBI and our partners to catch them." said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. "Time and again, the Chinese government prioritizes stealing U.S. research and taking advantage of our universities over obeying international norms."
“The FBI’s investigation revealed Song Chen took active steps to destroy evidence of her official affiliation with the Chinese military, including her current PLA credentials depicting her in military dress uniform,” said Special Agent in Charge Craig D. Fair of the FBI's San Francisco Field Office. “The FBI is committed to protecting academic institutions in the Bay Area from PRC military officers who knowingly and willfully lie about their military affiliations to access American research and development. We will exhaust all investigative techniques and measures to ensure the safety, security, and hard work of American universities.”
The superseding indictment expands on the allegations set out in an affidavit supporting a criminal complaint filed on July 17, 2020, and an indictment filed on Jan. 7, 2021. According to the superseding indictment, Song, 39, a Chinese national, entered the United States on Dec. 23, 2018, using a J-1 non-immigrant visa to conduct research at Stanford University. Song obtained the J-1 visa, a document “for individuals approved to participate in work-and study-based exchange visitor programs” with an application she submitted in November 2018.
In that application, Song described herself as a neurologist who was coming to the United States to conduct research at Stanford University related to brain disease. As part of the application, Song stated that she had served in the Chinese military only from Sept. 1, 2000, through June 30, 2011. She further stated that her employer was “Xi Diaoyutai Hospital” located at “No. 30 Fucheng Road, Beijing, 100142,” and that her highest rank was “STUDENT.” The superseding indictment alleges that these were lies, and that Song was a member of the People’s Liberation Army (PLA), the Chinese military, when she entered and while she was in the United States, and that the hospital she listed on her visa as her employer was a cover for her true employer, the PLA Air Force General Hospital in Beijing.
The superseding indictment also adds allegations and charges of obstructive conduct by Song. Specifically, the superseding indictment alleges that Song found out about a case against another PLA member, who was charged on June 7, 2020, in the Northern District of California with visa fraud. The superseding indictment alleges that she then attempted to delete a digital folder of documents on an external hard drive that she possessed containing records relating to her military service and visa fraud, including:
- A digital version of a letter from Song, written in Chinese and addressed to the People’s Republic of China consulate in New York, in which Song explained that her stated employer, “Beijing Xi Diaoyutai Hospital” was a false front, and that because relevant approval documents were classified, she had attempted to mail them;
- An image of Song’s PLA credentials, with a photograph of her in military dress uniform, covering the time period from July 2016 to July 2020; and
- A digital version of a resume for Song, written in Chinese, again with a photograph of her in military dress uniform and listing her employer as the Air Force General Hospital.
Further, according to the superseding indictment, Song lied to FBI agents when interviewed, denying any affiliation with the PLA after 2011, and information associating Song with the PLA or Air Force General Hospital began to disappear from the Internet after the FBI’s investigation of Song was known to her. Finally, the superseding indictment alleges that, after Song had been charged by criminal complaint in this case, she selectively deleted relevant emails from that account, including certain emails relevant to her military service, employment, and affiliations.
Song is charged with visa fraud, in violation of 18 U.S.C. § 1546(a); obstruction of official proceedings, in violation of 18 U.S.C. § 1512(c)(2); two counts of alteration, destruction, mutilation, or concealment of records, in violation of 18 U.S.C. § 1512(c)(1); and making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2).
An indictment merely alleges that a crime has been committed and Song, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, she faces a maximum statutory penalty of up to 10 years in prison and a fine of $250,000 for the visa fraud count; up to 20 years in prison and a fine of $250,000 for each of the obstruction and alteration charges; and up to five years in prison and a fine of $250,000 for the false statements charge. In addition, the court may order additional terms of supervised release. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Song’s next appearance is scheduled for April 7, 2021, at 12:00 p.m. PST, before the Honorable William Alsup, U.S. District Judge, for pretrial conference, with a trial scheduled to begin on April 12, 2021.
The FBI San Francisco Field Office led the investigation. The U.S. Attorney’s Office Special Prosecutions Section is prosecuting the case.