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19 February 2021
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.
Fargo Man Sentenced for Attempting to Derail a BNSF TrainRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Peter D. Welte sentenced Skylar Dayne Goodman, age 19 of Fargo, ND, to four days’ incarceration followed by three years of supervised released for attempting to derail a Burlington Northern Santa Fe (BNSF) train in violation of 18 U.S.C. § 1992(a)(1) and corruptly attempting to obstruct an official proceeding in violation of 18 U.S.C. § 1512(c)(2). Judge Welte also ordered Goodman to pay $3,124 in restitution to BNSF Railway.
On May 7, 2020, a BNSF train was traveling from Brenkenridge, Minnesota to Black Thunder Mine in Wyoming when it approached a crossing one mile west of Casselton at which point it encountered a rough track. The crew on the train immediately reported the rough track and that same evening a train inspector discovered a re-railer. A re-railer is a tool used by railroading contractors to place a train back on the track after a derailment and they’re capable of causing a train to derail. A Re-railer is typically painted bright yellow in the event it is inadvertently left on the track. The re-railer discovered on the railroad track on the evening of May 7, 2020, was spray-painted black.
An investigation by the BNSF and FBI revealed that Skylar Goodman placed the rerailer on the track on the evening of May 7, 2020. Following his arrest for attempting to derail the train, an acquaintance of the defendant’s contacted law enforcement with an incredulous story that exonerated the defendant. Further investigation by BNSF and the
FBI revealed that this individual was threatened by defendant to fabricate a story that falsely exonerated defendant’s involvement in the attempted train derailment.
"This defendant planned and attempted a serious attack on critical infrastructure and human life, and then he obstructed the federal investigation," said United States Attorney Drew Wrigley, who added that "while we respect the judge in this matter, we take strong exception to a sentence that allows the defendant to walk free, avoiding the applicable guideline sentence of 2 to 2-1/2 years in federal prison."
This case was investigated by the Federal Bureau of Investigation, BNSF Police Department and Cass County Sheriff’s Department, and was prosecuted by Assistant United States Attorney Jennifer Puhl.
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Fairbanks Man Indicted for Murder for Hire PlotRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Roger Keeling, 54, of Fairbanks has been indicted by a federal grand jury in a superseding indictment for murder for hire. A federal grand jury indicted Keeling last month for Stalking.
According to court documents, Keeling allegedly strangled his girlfriend in October 2020. Keeling pleaded to a misdemeanor assault charge in state court, and upon release, over the course of several weeks and while on ankle monitoring, violated court orders not to contact her numerous times. Keeling continued to harass and contact the victim by emailing her, following her and leaving notes for her, slashing her vehicle tires, and placing her in fear for her life. Keeling was arrested for stalking her. In January 2021, Keeling allegedly devised and solicited a murder for hire plot targeting her.
If convicted Keeling could face a sentence of up to 10 years for his attempt to arrange a murder for hire in addition to the sentence that may be imposed on the charges previously filed. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Alaska State Troopers (AST) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Dan Doty.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dubuque Felon Who Provided Gun to New Year’s Day Shooter Sentenced to Federal PrisonRead the Press Release
A man who handed a loaded handgun to another felon, who then shot a third person, was sentenced today to eight years in federal prison.
Katwan Montez Brown, age 27, from Dubuque, Iowa, received the prison term after an August 25, 2020 guilty plea to being a felon in possession of a firearm. Evidence at sentencing showed that Brown handed a loaded pistol to Derrick Timmons after Timmons had been in an argument in the street during the early morning hours of New Year’s Day 2020. Video evidence showed that, shortly after Brown gave Timmons the pistol, Timmons shot multiple times from the doorway of a home, striking one individual. After the shooting, Brown left the house and ran to an alleyway behind it, returning moments later. Dubuque police officers later found a pistol in the alleyway, as well as a cell phone and identification belonging to Brown. Brown’s fingerprints were found on the magazine inside the pistol, and shell casings outside the residence from where Timmons shot matched the pistol that had Brown’s fingerprints. At sentencing, the judge found that Brown’s conduct in handing Timmons the loaded firearm before the shooting set in motion all of the events, and commented that “this is not the Wild West.” Brown had previously been convicted of felony forgery and felony possession with intent to distribute marijuana in 2013 and felony possession of contraband in a correctional facility in 2018. He was also convicted of domestic abuse assault with strangulation and domestic abuse assault causing bodily injury in 2015, and domestic abuse assault causing bodily injury, second offense, in 2017.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 96 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
This case was made possible in part by evidence from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01013-2-CJW-MAR.
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Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national who previously resided in Middleton was sentenced today in federal court in Boston for illegal reentry.
Joaquin Diaz, 39, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 36 months in prison and three years of supervised release. Diaz will also be subject to deportation upon completion of his sentence. In October 2019, Diaz pleaded guilty to one count of unlawful reentry of deported alien.
On May 21, 2014, Diaz was encountered in Middleton. Diaz was previously deported in in 2007. At some point after each deportation, he illegally reentered the United States. Diaz was charged in this case in November 2018.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Dietary Supplement Executive Sentenced in Scheme to Fraudulently Sell Popular Dietary SupplementsRead the Press Release
A federal court in Texas sentenced a former dietary supplement company executive to prison for his role in fraudulently selling popular workout supplements, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah and Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division.
On Feb. 19, 2021, U.S. District Judge Sam A. Lindsay sentenced former S.K. Laboratories Vice President Sitesh Patel, 37, of Irvine, California, to 41 months’ imprisonment and one year of supervised release. The court previously ordered Patel’s former company, S.K. Laboratories, to forfeit $6 million in connection with the case.
According to documents filed in the case, Patel played a key role in developing and manufacturing the popular workout and weight loss supplements known as Jack3d and OxyElite Pro, which were distributed by Dallas-based USPlabs.
In pleading guilty in 2019 to conspiracy to introduce misbranded food into interstate commerce, Patel and several of his co-defendants admitted that they imported substances with false and misleading labeling to avoid law enforcement and regulatory agency attention.
Patel also pleaded guilty to introduction of misbranded food into interstate commerce. The misbranding charges relate in part to OxyElite Pro, which was recalled in 2013 in the wake of an investigation by the U.S. Food and Drug Administration (FDA) into whether the supplement caused liver injuries in consumers.
An indictment returned by a Dallas federal grand jury in 2015 against Patel and four other individuals associated with USPlabs alleged that the defendants sold some of their products without determining whether they would be safe to use.
“Dietary supplement manufacturers must not be allowed to mislead the public about untested ingredients mixed into their products,” said Acting U.S. Attorney Prerak Shah. “We are proud to hold this defendant accountable for lying to the public about ingredients that had the potential to cause them harm.”
“Consumers should not have to question whether the dietary supplements they find on store shelves will cause them physical harm,” said Acting Assistant Attorney General Brian Boynton. “This case demonstrates the department’s commitment to working with our agency partners to prosecute individuals and companies that defraud the public and place consumers at risk.”
“FDA regulation of the manufacturing and distribution of dietary supplements helps ensure the safety of American consumers. Illegal schemes to subvert FDA’s oversight and trick the public into buying a product that does not meet FDA standards create a serious threat to public health,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “We will continue to work with our law enforcement partners to investigate and bring to justice those who put profits ahead of the health of U.S. consumers.”
“The defendant knowingly profited by deceiving American consumers, causing harm to them by concealing the true ingredients of a product intended to improve the very health it damaged,” said Acting Special Agent in Charge Mark Pearson of the IRS-Criminal Investigation, Dallas Field Office. “Working to prosecute those people and institutions who endanger consumers is something the IRS-CI is dedicated to continuing to pursue with our partners in law enforcement.”
The court previously sentenced Jacobo Geissler, 44, of University Park, Texas, the CEO of USPlabs, to 60 months’ imprisonment, and Jonathan Doyle, 41, of Dallas, the president of USPlabs, to 24 months’ imprisonment for their roles in the fraud. The court also sentenced defendants Cyril Willson, 40, of Ralston, Nebraska, a former consultant for USPlabs, and Matthew Hebert, 42, of Dallas, a co-owner of the company, to 18 months’ and 15 months’ imprisonment, respectively. In addition, USPlabs was ordered to pay $4.7 million in criminal forfeiture.
The case was investigated by Special Agent Chad Medaris of the FDA’s Office of Criminal Investigations and Special Agent Larissa Wilson of the IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys Patrick Runkle, David Sullivan, and Raquel Toledo with the Consumer Protection Branch of the Department of Justice’s Civil Division, and Assistant U.S. Attorneys Errin Martin and John DelaGarza of the U.S. Attorney’s Office for the Northern District of Texas.
Dietary Supplement Executive Sentenced in Scheme to Fraudulently Sell Popular Dietary SupplementsRead the Press Release
A federal court in Texas sentenced a former dietary supplement company executive to prison for his role in fraudulently selling popular workout supplements, the Justice Department announced today.
On Feb. 19, 2021, U.S. District Judge Sam A. Lindsay sentenced former S.K. Laboratories Vice President Sitesh Patel, 37, of Irvine, California, to 41 months’ imprisonment and one year of supervised release. The court previously ordered Patel’s former company, S.K. Laboratories, to forfeit $6 million in connection with the case.
According to documents filed in the case, Patel played a key role in developing and manufacturing the popular workout and weight loss supplements known as Jack3d and OxyElite Pro, which were distributed by Dallas-based USPlabs. In pleading guilty in 2019 to conspiracy to introduce misbranded food into interstate commerce, Patel and several of his co-defendants admitted that they imported substances with false and misleading labeling to avoid law enforcement and regulatory agency attention. Patel also pleaded guilty to introduction of misbranded food into interstate commerce. The misbranding charges relate in part to OxyElite Pro, which was recalled in 2013 in the wake of an investigation by the U.S. Food and Drug Administration (FDA) into whether the supplement caused liver injuries in consumers. An indictment returned by a Dallas federal grand jury in 2015 against Patel and four other individuals associated with USPlabs alleged that the defendants sold some of their products without determining whether they would be safe to use.
“Consumers should not have to question whether the dietary supplements they find on store shelves will cause them physical harm,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “This case demonstrates the department’s commitment to working with our agency partners to prosecute individuals and companies that defraud the public and place consumers at risk.”
“Dietary supplement manufacturers must not be allowed to mislead the public about untested ingredients mixed into their products,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “We are proud to hold this defendant accountable for lying to the public about ingredients that had the potential to cause them harm.”
“FDA regulation of the manufacturing and distribution of dietary supplements helps ensure the safety of American consumers. Illegal schemes to subvert FDA’s oversight and trick the public into buying a product that does not meet FDA standards create a serious threat to public health,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “We will continue to work with our law enforcement partners to investigate and bring to justice those who put profits ahead of the health of U.S. consumers.”
“The defendant knowingly profited by deceiving American consumers, causing harm to them by concealing the true ingredients of a product intended to improve the very health it damaged,” said Acting Special Agent in Charge Mark Pearson of the IRS-Criminal Investigation, Dallas Field Office. “Working to prosecute those people and institutions who endanger consumers is something the IRS-CI is dedicated to continuing to pursue with our partners in law enforcement.”
The court previously sentenced Jacobo Geissler, 44, of University Park, Texas, the CEO of USPlabs, to 60 months’ imprisonment, and Jonathan Doyle, 41, of Dallas, the president of USPlabs, to 24 months’ imprisonment for their roles in the fraud. The court also sentenced defendants Cyril Willson, 40, of Ralston, Nebraska, a former consultant for USPlabs, and Matthew Hebert, 42, of Dallas, a co-owner of the company, to 18 months’ and 15 months’ imprisonment, respectively. In addition, USPlabs was ordered to pay $4.7 million in criminal forfeiture.
The case was investigated by Special Agent Chad Medaris of the FDA’s Office of Criminal Investigations and Special Agent Larissa Wilson of the IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys David Sullivan, Patrick Runkle, and Raquel Toledo with the Consumer Protection Branch of the Department of Justice’s Civil Division, and Assistant U.S. Attorneys Errin Martin and John DelaGarza of the U.S. Attorney’s Office for the Northern District of Texas.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Des Moines Man Sentenced to Four Years Probation, Six Months Home Confinement for Illegal Storage of Hazardous WasteRead the Press Release
Des Moines, IA—On February 19, 2021, Russell Allen McKeehan, Sr., age 60, of Des Moines, appeared before United States District Court Judge Rebecca Goodgame Ebinger and was sentenced to four years of probation for storage of hazardous waste without a permit. The sentence includes a six-month term of home confinement. McKeehan pleaded guilty to this offense on October 14, 2020.
McKeehan, doing business as Chrome Reflections, operated a chrome and metal plating and polishing business. He ceased chrome and metal processes at the East 14th Street facility around March 2013. After, he continued to store over 3,800 kilograms of hazardous wastes, including corrosive chemicals and reactive cyanide at the location. Cleanup of the site began in September 2016 and concluded in November 2017 and cost $79,926. The Court ordered McKeehan pay restitution in the amount of $49,926 toward the cleanup costs.
“Hazardous wastes pose serious public health and environmental dangers, so it’s imperative they be handled and disposed of safely and legally,” said Special Agent in Charge Lance Ehrig of the EPA’s criminal enforcement program in Iowa. “Today’s sentencing sends a clear signal that EPA and its law enforcement partners are committed to holding individuals accountable who violate the environmental laws that protect the health of our communities.”
“Our office will continue to aggressively enforce these important environmental laws to protect the citizens of the Southern District of Iowa,” said Acting United States Attorney Richard D. Westphal. “This case demonstrates the committed partnership between the EPA and the United States Attorney’s Office to protect the environment and ensure individuals and companies follow the law.”
This matter was investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID). The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Cresco, Iowa, Man Pleads Guilty to CyberstalkingRead the Press Release
A man who used Facebook and the mail to stalk another person pled guilty today in federal court in Cedar Rapids.
Michael Shawn McGuire, age 57, from Cresco, Iowa, was convicted of four counts of cyberstalking.
At the plea hearing, McGuire admitted that he used Facebook and the mail to engage in conduct to harass and intimidate another person and cause substantial emotional distress to that person. Evidence from a previous hearing in this case established that between August 25, 2018, and May 25, 2019, numerous yard signs were posted where the victim resided in Minnesota. The signs were sexually explicit and contained the victim’s name, telephone number, address, and email address. During this same time period, various friends, family members, and associates of the victim received sexually explicit mailings with semi-nude photos of the victim. In addition, various Facebook profiles sent similar semi-nude photos to some of the victim’s contacts through Facebook and various fake dating profiles associated with the victim were created.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. McGuire remains in custody of the United States Marshal pending sentencing. McGuire faces a possible maximum sentence of 20 years’ imprisonment, a possible $250,000 fine per count, and up to 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Ashley Corkery and Kyndra Lundquist. This case was investigated by the Minnesota Kandiyohi County Sheriff’s Office, the Willmar, Minnesota Police Department, the Litchfield Minnesota Police Department, the Minnesota Renville County Sheriff’s Office, the Minnesota Pipestone County Sheriff’s Office, the Cresco, Iowa Police Department, the Minnesota Bureau of Criminal Apprehension, and the Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2075.
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Chicago Man Charged with Sex Trafficking of a MinorRead the Press Release
CHICAGO — A federal grand jury has indicted a Chicago man for allegedly transporting a minor from Wisconsin to Illinois to engage in commercial sex acts.
The two-count federal indictment charges WILLIAM MCBETH, also known as “Tony,” 35, with sex trafficking of a minor and transporting that victim from Wisconsin to Illinois for purposes of prostitution. The sex trafficking count is punishable by a minimum prison sentence of ten years and a maximum term of life, while the transportation charge is punishable by up to ten years. McBeth is currently in law enforcement custody. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Michelle Petersen.
According to the indictment and a criminal complaint previously filed in the case, the minor victim was 15 years old in December 2015 when McBeth enticed her to engage in commercial sex acts in the Chicago area. McBeth transported her to various locations in Chicago and the surrounding suburbs to engage in commercial sex acts, and on at least one occasion brought her from Wisconsin back to Illinois for that purpose, according to the charges.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Cedar Rapids Man Headed to Prison for Possessing Drugs and GunsRead the Press Release
A man who possessed multiple firearms and drugs was sentenced today to more than eight years in federal prison.
Daniel James Abbott, age 48, from Cedar Rapids, Iowa, received the prison term after a September 2, 2020 guilty plea to possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Documents filed earlier in the case show that in September 2019, Abbott was arrested with a backpack containing methamphetamine and marijuana-based edibles. Officers recovered a firearm a short distance away and Abbott was wearing a gun holster. Law enforcement officers searched two businesses run by Abbott. Officers located methamphetamine, marijuana, drug paraphernalia, another firearm, and $50,000 in cash at one business. In October 2019, officers searched Abbott’s residence and recovered methamphetamine, drug paraphernalia, and approximately 4,732 rounds of ammunition in various caliber
Abbott was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Abbott was sentenced to 105 months’ imprisonment and fined $20,000. He was ordered to pay $4,736 in attorney fees. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Abbott is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Hiawatha Police Department, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Linn County Sheriff’s Office, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-00032.
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Buffalo Man Charged with COVID Relief FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – A Buffalo, 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, Jr. 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 Small Business Administration’s Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
Christian Johnson, 23, of Buffalo, was charged by criminal complaint 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.
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Bronx Tax Preparer Pleads Guilty to $3 Million Tax FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that ROBERTO PEREZ RAMIREZ, the owner of a tax preparation business named RAP Tax Service in the Bronx, New York, pled guilty to 10 counts of aiding and assisting the preparation of false and fraudulent income tax returns for the tax years 2013 to 2016. As part of the plea agreement, RAMIREZ agreed to make restitution to the IRS in the amount of $2,974,547. RAMIREZ pled guilty this morning before U.S. District Judge Andrew L. Carter Jr.
Manhattan U.S. Attorney Audrey Strauss said: “As he admitted in court today, Roberto Ramirez submitted false and fraudulent tax returns on behalf of numerous taxpayers, often falsely claiming dependents, nonexistent charitable deductions, or bogus business expenses on behalf of clients who paid Ramirez to do so. Now he awaits sentencing for his admitted crimes.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The defendant’s admissions today, at the kickoff of the filing season, are a timely reminder of the vital need for the taxpayer to do their due diligence in choosing a preparer. A preparer who is claiming to offer an unusually large return or one who is charging exorbitant fees should automatically raise red flags with the taxpayer.”
According to the allegations contained in the Information to which RAMIREZ pled guilty, RAMIREZ’s plea agreement, and statements made in court:
Through his Bronx tax preparation business, RAP Tax Service, RARMIREZ prepared and filed nearly 3,000 individual income tax returns on behalf of taxpayers for the tax years 2013 to 2016.
On many of the returns that he prepared for the tax years 2013 to 2016, RAMIREZ falsely claimed dependents who were not in fact dependents of the named taxpayers. The false dependents included real persons located in Puerto Rico, among other places. By including false dependents, RAMIREZ fraudulently inflated the refunds that could be obtained on the named taxpayers’ returns. RAMIREZ sometimes charged clients a $1,000 fee to add a false dependent.
In addition to reporting false dependents, RARMIREZ also reported false Schedule A deductions, such as gifts to charity or unreimbursed employee business expenses, and false Schedule C business expenses. By including false Schedule A deductions and false Schedule C expenses, RAMIREZ fraudulently inflated the refunds that could be obtained on the named taxpayers’ returns.
For the tax years 2013 through 2016, RAMIREZ’s scheme caused an estimated tax loss to the IRS of approximately $3 million.
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RAMIREZ, 59, of Hackensack, New Jersey, pled guilty to 10 counts of aiding and assisting the preparation of false and fraudulent income tax returns for the tax years 2013 to 2016. Each count carries a maximum sentence of three years in prison. As part of the plea agreement, RAMIREZ has agreed to pay restitution to the IRS in the amount of $2,974,547. RAMIREZ is scheduled to be sentenced by Judge Carter on June 25, 2021, at 10:00 a.m.
The maximum potential 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 the outstanding investigative work of IRS-CI in this case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Alexander Li is in charge of the prosecution.
Boca Raton Resident Who Threatened to Kill FBI Agents Charged in West Palm Beach Federal CourtRead the Press Release
Miami, Fl. – South Florida federal prosecutors have charged a 59-year-old woman from Boca Raton with making a communication in interstate commerce that threatened to kill agents from the Federal Bureau of Investigation (FBI).
According to the allegations in the criminal complaint affidavit, the FBI received an online tip to the National Threat Operation Center (NTOC) on January 16, 2021, that Suzanne Kaye posted information on her Facebook page that she was present at the United States Capitol in Washington, D.C., on January 6, 2021. On January 28, 2021, agents contacted Kaye by phone and informed her of the FBI’s interest in interviewing her about her travel to Washington, D.C. on January 6, 2021. Kaye asked the agents if they had proof that she traveled to Washington D.C., says the affidavit. Agents stated that the FBI would like to interview her about her travel. Kaye denied having traveled to Washington D.C., but claimed she was aware of individuals who did travel there. She agreed to speak with the FBI and provided her current address in Boca Raton, Florida.
The complaint affidavit also alleges that on January 31, 2021, at approximately 10:38 p.m., Kaye posted a video on her Facebook page titled “ANGRY Patriot Hippie” which was captioned, “F--- the FBI!!” In the video, Kaye announced that she received a telephone call from the FBI asking about her travel to Washington D.C. Kaye then told her audience in the video that she will not talk to the FBI without counsel, and that she will exercise “my second amendment right to shoot your f------ ass if you come here,” implying that she will use violence against FBI Agents if they come to her residence. On that same day, Kaye posted the same video to her Instagram and TikTok social media platforms as well, alleges the affidavit.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, made the announcement.
Kaye had her initial appearance this week before a federal magistrate judge in West Palm Beach, where law enforcement officers arrested her. A bond hearing has been scheduled for February 24, 2021.
FBI West Palm Beach is handling the investigation. Assistant U.S. Attorney Mark Dispoto of the Southern District of Florida is prosecuting the case.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-mj-08055.
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Birmingham Man Pleads Guilty for Fraud on Fallen Huntsville Police Officer’s Memorial FundRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty today to fraud on customers of the U.S. Postal Service, and fraud on the memorial fund set up to provide aid to the family of a fallen Huntsville Police officer, announced U.S. Attorney Prim F. Escalona, U.S. Postal Inspector In Charge, Houston Division, Adrian Gonzalez, and FBI Special Agent in Charge Johnnie Sharp, Jr.
DEVONTE LEMOND HAMMONDS, 27, pleaded guilty to one count of access device fraud and one count of wire fraud. In December 2019, Hammonds devised a scheme to fraudulently obtain money from the Billy Clardy Memorial Fund. Billy Clardy was a Huntsville Police officer killed in the line of duty in 2019. After Officer Clardy’s death, a memorial fund was established to collect contributions and provide aid to his family.
According to the plea agreement, Hammonds used the identity of another person to open a bank account and transfer funds from the Billy Clardy Memorial Fund bank account to the fictitious account for his own use. Hammonds also devised a scheme to defraud customers of the U.S. Postal Service. Hammonds used the U.S. Postal Service website to reroute mail from numerous U.S. Postal Service customers to addresses in Birmingham that he could access, used the rerouted mail to obtain personal identifying information of those customers, and used that information to pay bills, make purchases, and open new accounts.
The maximum penalty for access device fraud is ten years in prison and a $250,000 fine. The maximum penalty for wire fraud affecting a financial institution is thirty years in prison and a $250,000 fine.
The FBI and USPIS investigated the case, which Assistant U.S. Attorneys J.B. Ward and Michael Pillsbury are prosecuting.
18 February 2021
Zuni Pueblo man sentenced to ten years in prison for injuring two children in drunk driving crashRead the Press Release
ALBUQUERQUE – Stanton Sanchez, 33, of Zuni Pueblo, New Mexico, and an enrolled member of the Zuni Pueblo, was sentenced on Feb. 17 in federal court to 10 years in prison for assault of two minors resulting in serious bodily injury in Indian Country.
Sanchez pleaded guilty on Jan. 8, 2020. In his plea agreement, Sanchez admitted to driving recklessly while intoxicated and hitting two children who were walking in a residential area on the Zuni Pueblo in McKinley County on July 22, 2018. Sanchez’s blood alcohol content was more than twice the legal limit. As a result of the crash, both children suffered serious injuries. At the time of the incident, the victims were 10 and 11 years old.
The Zuni Tribal Police Department investigated this case. Assistant U.S. Attorney Allison Jaros prosecuted the case.
Woman Pleads Guilty After Robbing Man at GunpointRead the Press Release
A Tulsa woman pleaded guilty today in federal court for her role in robbing a man at gunpoint at a local hotel, announced U.S. Attorney Trent Shores.
Rebecca Raye Jackson, 33, pleaded guilty to conspiracy to use or carry a firearm during and in relation to a crime of violence and to robbery in Indian Country.
“The victim in this case found himself staring into the barrel of a shotgun after Rebecca Jackson and her coconspirator lured him to a hotel with intent to steal his money and belongings,” said U.S. Attorney Trent Shores. “This office will hold accountable individuals who place lives in jeopardy and ensure justice for victims of crime.”
In her plea agreement, Jackson admitted that on Sept. 26, 2020, she conspired with another individual to lure the victim into a room at a Super 8 Hotel in Tulsa with the promise of sex. When the victim walked into the room, the two women locked the door, and Jackson pointed a shotgun at the victim and robbed him. She took the victim’s money, keys, wallet and cell phone.
Chief U.S. District Judge John E. Dowdell set sentencing for May 24, 2021.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Ryan Heatherman is prosecuting the case.
Wolf Point man admits sexually abusing minorRead the Press Release
GREAT FALLS — A Wolf Point man today admitted charges that he sexually abused a minor on the Fort Peck Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Christopher George Follette, 33, pleaded guilty to sexual abuse of a minor as charged in an indictment. Follette faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for May 27 and ordered Follette detained.
The prosecution said in court documents that in 2019 and 2020, Follette sexually abused a minor, identified as Jane Doe, who was between the ages of 12 and 16, on the Fort Peck Indian Reservation.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI, Fort Peck Law Enforcement Services and Wolf Point Police Department.
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Wilmington Man Sentenced to 99 Months for Gun OffenseRead the Press Release
NEW BERN, N.C. – Antonio Blake Spencer, 32, of Wilmington, North Carolina was sentenced today to 99 months in prison for possession of a firearm by a convicted felon. Spencer was charged with one count of felon in possession of a firearm on April 30, 2019 and pled guilty on October 17, 2020.
According to court documents and other information, on April 21, 2019, while on probation for multiple prior state offenses, including a felony drug conviction, Spencer was involved in an altercation with a pregnant female in the Houston Moore housing complex in Wilmington. During the altercation – which was captured on Wilmington Housing Authority surveillance video – Spencer brutally assaulted the female. The female ultimately was able to flee the scene. Moments later, Spencer was approached by a male subject and the two fought for several minutes. During the struggle, a gun Spencer had in his waistband, dropped to the ground and was ultimately used to shoot Spencer multiple times. Spencer was treated and released from the hospital two days later. Just nine days after the shooting incident, on April 30, 2019, law enforcement located Spencer in an effort to serve him with arrest warrants for assault on a female and assault on an unborn child arising from the April 21, 2019 incident. At the time of arrest, Spencer again had a firearm on his person, along with a quantity of PCP in his vehicle. During a post-arrest interview, Spencer admitted to possessing the firearms from both the April 21 and April 30 incidents.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The North Carolina 6th Judicial District Attorney’s Office, Wilmington Police Department, New Hanover County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) investigated the case, and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-00092-FL.