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Thursday 17 December 2020
Serial Bank Robber Pleads Guilty to Federal Bank Robbery Charge—Admits Committing Five Bank Robberies and Two Attempted Bank Robberies in Less Than a MonthRead the Press Release
Baltimore, Maryland – Edward Omar Johnson, age 37, of Baltimore, Maryland, pleaded guilty today to committing five bank robberies and two attempted bank robberies in Baltimore and York, Pennsylvania, between February 27, 2019 and March 19, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Commissioner Michael Muldrow of the York City (Pennsylvania) Police Department.
According to his plea agreement, between from February 27, 2019 and March 19, 2019, Johnson robbed five banks and attempted to rob two others. During each robbery, Johnson presented the victim teller with a demand note stating that he had a firearm. Four of the robberies and the two attempted robberies took place in Baltimore. One robbery was committed in York, Pennsylvania.
Specifically, on February 27 and March 12, Johnson robbed a bank in the 400 block of West Baltimore Street in Baltimore. On March 4 and March 5, Johnson unsuccessfully attempted to rob banks in the 300 block of West Baltimore Street and the 2100 block of Eastern Avenue, both in Baltimore. On March 5, Johnson robbed a bank located in the 2000 block of East Monument Street in Baltimore. On March 12, Johnson robbed a second bank located in the 1100 block of North Charles Street in Baltimore. Finally, on March 19, Johnson robbed a bank in the unit block of West Market Street in York, Pennsylvania, throwing the demand note at the teller, then reaching into the victim teller’s cash drawer, stealing $30 in cash. In that robbery, Johnson also inadvertently took a GPS tracker hidden in bait money, which he threw in a nearby dumpster.
On March 14, 2020, the FBI Violent Crimes Task Force issued a media release of the robbery surveillance images captured during the robberies in Maryland. The Baltimore Police Department subsequently received an anonymous tip that the robber was Johnson. Law enforcement obtained prior photos of Johnson which matched the physical appearance of the suspect in the bank robberies. On March 22, 2019, the York City Police Department located and arrested Johnson in York, Pennsylvania. A search of Johnson recovered a bank robbery demand note, the language of which was consistent with the language in the notes used in previous robberies. Johnson waived his rights and during an interview with law enforcement admitted committing the robberies and identified himself in surveillance photos from the robberies. Later investigation revealed the existence of Johnson’s latent fingerprints on the demand notes he left behind after the attempted bank robbery and successful bank robbery on March 5, 2019, and the two March 12, 2019 bank robberies.
Johnson and the government have agreed that, if the Court accepts the plea agreement, Johnson will be sentenced to 141 months in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 1, 2021 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the York City Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the federal case.
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Scottsdale Man Charged with Covid-19 FraudRead the Press Release
PHOENIX, Ariz. – Yesterday, the United States Attorney's Office unsealed a complaint against Dale L. Hipes, 39, of Scottsdale, Arizona, charging him with wire fraud and money laundering in connection with an alleged scheme to defraud by falsely claiming to be a distributor of 3M face masks.
“Eight months ago we launched a Task Force to discover and stop fraud related to Covid-19 in our state,” said United States Attorney Michael Bailey. “Today’s announcement is a product of that effort. We remain committed to the task at hand, and will remain committed even after the pandemic ends.”
According to the complaint, Hipes, as CEO of BRI Supply, Inc., represented that he could procure 3M masks for the State of Texas during the COVID-19 pandemic. He falsely claimed to be a 3M authorized distributor and promised delivery in three days. The victim wired $16.65 million to Hipes to purchase nine million masks, but Hipes never produced any. Instead, Hipes returned $12 million to the victim then ceased all communications and expended the remaining funds for personal use. Law enforcement also seized four bank accounts, and a 2020 Kawasaki utility vehicle. These bank accounts and utility vehicle are alleged to contain, or have been purchased with, proceeds traceable to the charged crimes.
“It’s truly reprehensible that someone would misrepresent themselves and promise to provide Personal Protective Equipment (PPE) during a pandemic then take millions of the fraudulently obtained money and use it for their own personal gain,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “It is also not lost on us that this act is deliberately contrary to the actions of the philanthropist who fronted the money to the State of Texas in the first place. We want to thank 3M for their assistance and cooperation with this investigation as well as the United States Attorney’s Office, District of Arizona.”
United States Attorney Michael Bailey and Arizona Attorney General Mark Brnovich launched the COVID-19 Fraud Task Force in April 2020, leveraging the resources and expertise of more than twenty different federal and state agencies to combat fraud schemes arising out of the COVID-19 pandemic. The Federal Bureau of Investigation conducted the investigation in this case. The prosecution is being handled by Assistant U.S. Attorney Andrew C. Stone.
A conviction for wire fraud carries a maximum penalty of twenty years of imprisonment, a $250,000 fine, or both. A conviction for transactional money laundering carries a maximum penalty of ten years of imprisonment, a $250,000 fine, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Hipes ComplaintCASE NUMBERS: 20-9393MJ
RELEASE NUMBER: 2020-112_Hipes# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Sanford Woman Sentenced for Conspiring to Distribute Fentanyl and CocaineRead the Press Release
PORTLAND, Maine: A Sanford woman was sentenced today in federal court for conspiring to distribute fentanyl and cocaine, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced Jennifer Golden, 47, to 41 months in prison and four years of supervised release. Golden pleaded guilty on February 5, 2020.
According to court records, Golden conspired with others to distribute fentanyl and cocaine in southern Maine between October 2018 and September 2019. During the course of the conspiracy, one of Golden’s co-conspirators was arrested in Massachusetts while making a run to purchase drugs for her. Police officers seized over 40 grams of cocaine and 100 grams of fentanyl incident to that arrest. On September 26, 2019, members of the FBI’s Safe Streets Gang Task Force and other officers executed search and arrest warrants at Golden’s residence in Sanford. During the search, agents seized cocaine base, cocaine powder, fentanyl, psilocybin mushrooms, cutting agents and a digital scale with drug residue.
The FBI and the Sanford Police Department investigated the case.
Sacramento Man Sentenced to over 17 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Nicholas Vuksinich, 35, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 years and seven months in prison for producing child pornography, U.S. Attorney McGregor W. Scott announced.
In sentencing Vuksinich, Judge Nunley said, “There are no victims in the criminal justice system more vulnerable than children.” Judge Nunley also ordered Vuksinich to pay at least $33,000 in restitution with additional amounts to be determined at a hearing scheduled for Feb. 11, 2021.
“This defendant’s conduct was long-lasting, extensive, and directed at real children whom he manipulated on the internet,” U.S. Attorney Scott said. “His actions will have severe effects on his victims that may last for the rest of their lives. Today’s sentence reflects the seriousness of the offense and our office’s commitment to protect children from further crimes of this nature.”
According to court documents, between July 6, 2016, and November 2016, Vuksinich communicated with a victim who lived in the Midwest region using video, audio, and Skype chat. When the communication began, Vuksinich knew that the victim was 14 years old. Through a series of online interactions on different days, Vuksinich directed her to engage in numerous demeaning, lewd, lascivious, and sexual activities, and he saved the images to his computer.
On May 30, 2018, law enforcement executed a search warrant at Vuksinich’s residence in Sacramento. A search of his computer revealed approximately 500 images of the victim. His computer also contained more than 900 additional child pornography videos and photos, including downloads on the day of the search. Skype chats on Vuksinich’s computer also indicated he directed numerous other minor children to perform sex acts.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Christopher S. Hales and Rosanne L. Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Statement of United States Attorney Matthew Schneider on the Passing of Wayne County Sheriff Benny NapoleonRead the Press Release
“I always enjoyed spending time with Benny. We worked together closely on law enforcement matters to protect the families and neighborhoods of Wayne County. Through those challenging times, Benny’s smile always brightened our days.”
Rutland Man Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 17, 2020, David Hughes, 39, of Rutland, Vermont, was sentenced in United States District Court in Rutland, Vermont, to serve 96 months in prison after his guilty plea to one count of possession of child pornography. Chief U.S. District Judge Geoffrey W. Crawford also ordered Hughes to serve a five (5) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, in November 2018, an individual cleaning out his mother’s basement in Rutland, Vermont, came upon a box belonging to Hughes. Hughes had stored the box in the basement with the mother’s permission. The individual opened Hughes’ box and discovered VHS videotapes which depicted small children known to the individual engaging in sexually explicit activity. The individual also recognized Hughes’ voice on the tapes. After discovery of the tapes and taking a statement from Hughes in which he admitted to making the videos on the tapes, law enforcement obtained a warrant to search Hughes’ residence. During the search of Hughes’ residence, law enforcement seized a Dell computer that belonged to Hughes. On it, law enforcement discovered images depicting child pornography.
In resolving Hughes’ case, the U.S. Attorney’s Office worked closely with Rutland County State’s Attorney Rose Kennedy because Hughes also faced state charges related to the sexual activity depicted on the VHS tapes. In Hughes’ federal plea agreement, he was required to plead guilty to the state charges prior to imposition of sentence in the federal case. If Hughes failed to enter guilty pleas in the state case, the federal plea agreement would have been voided. On October 9, 2020, Hughes pleaded guilty in state court to sexual assault charges and received a sentence of 7-15 years, all suspended with seven (7) years to serve. Hughes’ 96-month federal sentence will run concurrently to the state sentence.
U.S. Attorney Nolan commended the efforts of the Rutland City Police Department and Homeland Security Investigations in the investigation of Hughes. She also cited this case as an example of the strong partnership between the U.S. Attorney’s Office and State’s Attorney Kennedy’s office and thanked SA Kennedy for her collaboration.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Hughes. Assistant Federal Public Defender Elizabeth Quinn represented Hughes.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Rosebud Man Indicted on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm and Ammunition by a Prohibited Person.
Phillip Gene Beck, Jr., age 24, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, three years of supervised release, $100 to the Federal Crime Victims Fund, and forfeiture of any firearms or ammunition involved in the offense. Restitution may also be ordered.
The Indictment alleges that on or about October 21, 2017, Beck, then being an unlawful user of methamphetamine, and knowing he was an unlawful user of methamphetamine, knowingly did possess a pistol and ammunition in St. Francis, South Dakota.
The charge is merely an accusation and Beck is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent 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: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Beck was released on bond pending trial. A trial date has not been set.
Rochester Man Sentenced to Three Years in Prison for Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – Senior U.S. District Judge Richard Mills sentenced Chase Brown, 21, of the 1000 block of Heathrow Lane, Rochester, Ill., to serve 37 months in federal prison for operating a sham medical equipment reseller business that defrauded businesses and individuals from various states. A hearing has been scheduled on Jan. 19, 2021, to determine the final restitution amount.
The court determined that Brown’s sentence be enhanced based on a finding that he engaged in ‘sophisticated means’ to carry out the scheme. Brown was held accountable for an intended loss of more than $750,000; however, the parties have agreed that for determining restitution, the actual loss and restitution amount is more than $300,000 but less than $750,000.
Brown pleaded guilty on July 24, 2020, to charges that he established a business known as Midwest Surgical, LLC, in May 2019, purportedly to purchase and resell medical equipment. Government evidence established that the business did not operate legitimately and was used to perpetuate the scheme.
At the sentencing hearing, on Dec. 16, 2020, Judge Mills cited the extent of the fraud that was perpetrated on multiple victims in multiple states, and noted that Brown committed the elaborate fraud while he was on probation for deceptive practice in Sangamon County. The government cited examples of Brown’s brazen fraud including stealing a friend’s credit card information and using credit card information from another victim to pay for a Jeep, a Springfield bar bill, payment to a Springfield car firm, and to purchase a second vehicle for a friend. Evidence was also presented that Brown defrauded a teenager of $14,000 he had saved from working jobs to purchase his first car.
Brown was arrested in Florida in March 2020, and has remained detained in the custody of the U.S. Marshals Service based upon the court’s prior finding that Brown presented a continued economic danger to the community.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General and the Springfield Police Department conducted the investigation. Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.
Rapid City Man Indicted for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Benjamen T. Flute, a/k/a Benjamin T. Flute, age 41, was indicted on December 8, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 16, 2020 and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Flute was convicted of 2nd-Degree Rape in December 2007. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 11, 2020, and November 25, 2020, Flute failed to properly register as a sex offender as required by law.
The charge is merely an accusation and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Flute was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Project Safe Neighborhood Federal Grant Monies Awarded to Fund Community ProjectsRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress is pleased to announce that Project Safe Neighborhoods (PSN) federal grant dollars have been awarded to state and local government agencies for violent-crime reduction programs, which include community engagement, prevention and reentry efforts. PSN grants monies may be used for criminal justice-related initiatives, technical assistance, training, personnel, equipment, supplies, contracted support, information systems, research and evaluation.
“These funds will offer opportunities for community members and organizations to partner with state and local law enforcement and government agencies to help reduce gun-related violence,” said Childress. “We are grateful for the City of Lawrence, Lawrence Police Department, City of Indianapolis, Indianapolis Metropolitan Police Department, the Indianapolis Marion County Forensic Services Agency, and the Indiana Law Enforcement Academy, for their thoughtful and innovative efforts to help drive down the violence.”
LAUNDRY and MORE
The City of Lawrence and the Lawrence Police Department were awarded $27,000 for an initiative called Laundry and More. Along with their community partners, Servants of Christ Luther Church, they are serving the area around 42nd Street and Post Rd where the community has high crime but is also highly underserved. While the funding is directed at covering the cost of laundry services, it has also served as a mechanism to help law enforcement build relationships and start meaningful dialogue with citizens who typically are afraid to approach or even speak with an officer. Over 162 families have been served so far, with over 1,000 loads of laundry completed at no cost. People are also being connected with other resources in the area, such as jobs, food pantries, and civil servants.
“This initiative goes beyond getting laundry done for residents and their families,” said Lawrence Police Deputy Chief Curtis Bigsbee. “This project offers the opportunity for true community interaction with participants in a non-traditional environment for representatives from the City of Lawrence, the police department, and all of our community partners.” Deputy Chief Bigsbee concluded.
RightFit
The Indianapolis Metropolitan Police Department (IMPD) was awarded $48,673 to help increase their level of participation with this public safety initiative. The RightFit programming allows officers to meet regularly with inner city youth participants and focus on building relationships. These relationships will allow children to see that police officers are people they can trust, and they can go to them if they are in trouble or knows someone who may need help.
The after-school program encourages academic growth, fun physical activity, and a nutritious meal, which is all provided in an environment of courtesy and respect. The goal is to stabilize communities, enhance academic participation and achievement, improve the health of students, identify education and career options, and create an atmosphere of cooperation across the community.
“Combating crime in Indianapolis is a team effort—it takes partners at the federal, state, and local level to increase public safety and reduce gun violence,” said Indianapolis Mayor Joe Hogsett. “Through enhanced coordination, we can effectively invest in and transform neighborhoods across our city. The programs funded by Project Safe Neighborhoods are strong examples of how collaboration can lead to better outcomes for residents.”
“Community partnerships are key to impacting violence in our neighborhoods, and the IMPD is grateful for this opportunity to build relationships with our city’s youth that break down barriers of mistrust and lead to a safer Indianapolis,” said IMPD Chief Randal Taylor. “Thank you to Acting U.S. Attorney Childress for this impactful funding, and to RightFit for their partnership.”
The following agencies were also awarded federal PSN grant money:
- City of Indianapolis - $30,500 for Crime Prevention Through Environmental Design training program.
- Indiana Law Enforcement Academy - $8,473 for their Community Outreach Initiative.
- Indianapolis-Marion County Forensic Services - $93,378 for their Gun Crime Reduction Initiative.
- Indianapolis Metropolitan Police Department - $188,394 for a PSN data enhancement program.
Assistant U.S. Attorney Pamela Domash in coordination with Marshall Depew of IMPD lead the PSN Task Force effort in the Southern District of Indiana.
Prince George’s County Bank Robber Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Donnell Duane Berry, age 44, of Forestville, Maryland, to 151 months in federal prison, followed by three years of supervised release, for a 2019 bank robbery. Berry committed this crime while on supervised release for a previous federal conviction.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to his guilty plea, on September 4, 2019, Berry and two other individuals committed the robbery of a bank in Lanham, Maryland. Berry, who had previously committed a robbery at this same location, wrote the demand note and provided it to his co-defendant, who entered the bank and provided the demand note to the teller, while Berry and the third individual waited in the getaway car. In fear for her life, the victim teller gave the co-defendant over $4,000 in cash along with a GPS tracker. The co-defendant took the cash and fled the bank, getting into the waiting getaway car.
As detailed in the plea agreement, a short time later police located the getaway car, which was disabled in an intersection approximately five miles from the bank. Berry and the other robbers attempted to run away from police but were all subsequently apprehended. Officers recovered the following items from a bin underneath the deck of a house near the intersection: the hat worn by the co-defendant during the robbery; the co-defendant’s wallet; and $3,050 in cash, which still had the bank’s GPS tracker in it. Near the wood line several yards east of the intersection officers also recovered a black and gray backpack containing Berry’s identification and credit cards.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Dwight Draughon, who prosecuted the case.
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Plea: Kansas Man Wore Venom Mask While Robbing a BankRead the Press Release
KANSAS City, KAN. – A Kansas man pleaded guilty today to armed bank robbery, U.S. Attorney Stephen McAllister said.
Kenya Breakfield, 22, Olathe, Kan., pleaded guilty to one count of armed bank robbery and one count of discharging a firearm during the robbery. In his plea, Breakfield admitted that on Oct. 21, 2018, he and a co-defendant robbed Wells Fargo Bank at 2000 W. 103rd Street in Leawood, Kan.
Both men were wearing masks of the comic book character Venom and carrying handguns. During the robbery, one of the robbers said, “Happy holidays!” and fired a round from his handgun into the ceiling.
In March 2019, police arrested Breakfield after identifying the getaway car.
Co-defendant Michael Shiferaw, 22, Olathe, Kan., is awaiting trial.
Sentencing is set for March 18, 2021. Breakfield could face a penalty of up to 25 years in federal prison and a fine up to $250,000 on the robbery charge, and not less than 10 years and a fine up to $250,000 on the other count. McAllister commended the FBI, Leawood Police Department, the Olathe Police Department, the Kansas City Police Department, the Johnson County Sheriff’s Office and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Pierre Man Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Daniel James Boe, age 35, was indicted on December 8, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum five years, up to 40 years in prison and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that Boe was involved in a conspiracy beginning in 2017, wherein Boe did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine in central South Dakota.
The charge is merely an accusation and Boe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Pierre Police Department, the South Dakota Highway Patrol, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Boe was released on bond pending trial. A trial date has not been set.
Oneida Woman Indicted for Theft of Government PropertyRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on December 15, 2020, a federal grand jury returned a one-count indictment against Dianne McLester-Heim (Age: 46) of Oneida for allegedly stealing money while employed by the Oneida Community Health Center.
The indictment charges McLester-Heim with Theft of Government Property in violation of 18 U.S.C. § 641. If convicted, the defendant faces up to ten years in prison, up to a $250,000 fine, and up to three years on supervised release. The charge also carries a $100 special assessment.
According to the indictment, between August 2019 and January 2020, McLester-Heim allegedly submitted a total of $12,509.59 in fraudulent medical reimbursement claims while employed as a Purchased/Referred Care supervisor at the Oneida Community Health Center. Officials with the Oneida Nation noticed the alleged fraud and conducted an investigation, which led to an investigation by the U.S. Department of Health and Human Services (DHHS).
As a component of DHHS, Indian Health Services collaborates with the Oneida Nation and other Native American tribes to provide health care for Native Americans throughout the United States. Fraud investigations by both tribal and federal authorities ensures the United States government can continue to meet its unique responsibility to provide health care services for Native Americans.
The case was investigated by the Oneida Police Department and U.S. Department of Health and Human Services. The case will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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414-297-1700
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Ohio Man Sentenced to 10 Years in PrisonRead the Press Release
FORT WAYNE—Dan I. Wilson, 47, of Akron, Ohio, was sentenced before United States District Court Judge Holly Brady upon his plea of guilty to conspiring to possess with intent to distribute 1 kilogram or more of heroin and 5 kilograms or more of cocaine, announced United States Attorney Kirsch.
Mr. Wilson received a sentence of 120 months of imprisonment, followed by 5 years of supervised release.
According to documents filed in this case, from on or about January 2013 and continuing to March 2015, Mr. Wilson conspired with others to acquire cocaine and heroin from a drug organization operating primarily in the Northern District of Indiana for further distribution in Ohio.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which includes the FBI, the Indiana State Police, the Allen County Sheriff’s Department, and the Fort Wayne Police Department. The Akron, Ohio, Police Department also assisted with this investigation. This case was prosecuted by Assistant United States Attorney Anthony Geller.
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Oahu man sentenced to 71 months in prison for firearm, drug and theft offensesRead the Press Release
HONOLULU, Hawaii – Glenn Robert Alika Muth, 28, of Honolulu, was sentenced yesterday in federal court by United States District Judge Derrick K. Watson to 71 months of imprisonment and three years of supervised release for possession of a stolen firearm, possession of methamphetamine with intent to distribute, and theft of government property. Judge Watson ordered the sentence to run consecutively with any sentence imposed in Muth’s pending state theft cases. Additionally, Judge Watson ordered Muth to pay a total of $126,813.87 in restitution to the victims of his offenses.
U.S. Attorney for the District of Hawaii Kenji M. Price said that, according to court documents and information presented in court, on November 10, 2019, Muth—while on state probation—burglarized a residence in Waialua, Hawaii, stealing a gun safe containing 28 firearms and other items. The residence had a surveillance system that captured the burglary. Upon review, the owner identified the masked male in the surveillance footage as Muth and provided it to the Honolulu Police Department (HPD). The following day, HPD arrested Muth outside of an illegal game room for two outstanding probation revocation bench warrants. A federal search warrant executed on Muth’s backpack revealed two firearms and ammunition—one stolen from the burglary—and methamphetamine that Muth intended to use and distribute to others. Additionally, the Federal Bureau of Investigation (FBI) and the Army Criminal Investigation Command identified Muth as responsible for stealing a number of utility vehicles, equipment, and tools from the Logistical Readiness Center near Schofield Barracks in Hawaii.
At sentencing, Judge Watson stated that the “significant danger to the community” from the burglary is “the most troubling part of this case.” The extent of the harm is one that “we cannot calculate” today, Judge Watson remarked, because it is unknown where these firearms—capable of wreaking “havoc and mayhem”—will appear down the road. Judge Watson gave a sentence at the high-end of the guidelines - nearly six years - to run consecutively with any sentence imposed by the state because of Muth’s responsibility for “the significant number of weapons in our streets.”
The case was investigated by the FBI, the HPD, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Army Criminal Investigation Command. It was prosecuted by Assistant U.S. Attorneys Sara D. Ayabe, Michael Nammar, and Micah W.J. Smith.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case 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 ATF 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.
Northborough Man Pleads Guilty to Aiding Romance and Lottery Schemes Targeting ElderlyRead the Press Release
BOSTON – A Northborough man pleaded guilty today in federal court in Worcester to his role in more than $600,000 in fraud schemes targeting elderly victims, and agreeing to launder the proceeds of such schemes and other criminal activity.
Austin Nedved, 29, pleaded guilty to aiding and abetting wire fraud and money laundering conspiracy. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 7, 2020. Nedved is in custody serving a sentence for a separate fraud conviction in the Eastern District of Kentucky.
Nedved admitted that he ran a business in which he bought and sold digital currencies, including Bitcoin, for cash. Nedved advertised his services under the screen name “USMC1991” over LocalBitcoins.com and Paxful.com, two online businesses that matched Bitcoin buyers and sellers and facilitated their transactions.
From at least 2017 through 2019, Nedved aided and abetted romance and lottery schemes targeting vulnerable victims. In romance schemes, victims are targeted to send money abroad to people they believe to be romantic interests, while in lottery schemes victims are convinced that they can obtain lottery winnings or sizeable government grants by forwarding cash for administrative fees or expenses to the fraudsters. Despite knowing or being willfully blind to the fact that his customers were fraud victims, Nedved sold Bitcoin to them so that they could send money overseas to the fraudsters.
In late 2017, an individual posing as “Jonathan G.” led a 78-year old victim to believe over social media that he was a Weston, Mass. businessman who owned an oil company. Without ever meeting “Jonathan G.” in person, the victim fell in love and agreed to marry him. “Jonathan G.” then falsely told the victim that his oil company had experienced an accident abroad in which people had died, and that he needed money to settle obligations arising from the accident with a foreign government. “Jonathan G.” claimed that until he did so, he would not be able to return to the United States to marry the victim. “Jonathan G.” told the victim to pay him via Bitcoin. The victim, who had never before purchased digital currency, agreed to send him money and contacted Nedved by phone and text message in Massachusetts to arrange a cash-for-Bitcoin transaction.
On June 25, 2018, in a parking lot in Kittery, Maine, the victim gave Nedved a cashier’s check to purchase approximately $100,000 in bitcoin. Nedved then released approximately $100,000 in Bitcoin, less his commission, to a Bitcoin wallet controlled by “Jonathan G.” When Nedved accepted $100,000 from the victim, Nedved knew or was willfully blind to the fact that the victim was a romance scam victim. On June 29, 2018, in Leominster, Nedved and a co-conspirator took another $40,000 from the victim.
In total, Nedved and co-conspirators, in exchange for payment, converted to Bitcoin more than $630,000 in cash that they received from others, knowing that the cash constituted proceeds of romance and lottery scams and other unlawful activities. They then either returned the proceeds in Bitcoin to the source of the cash or forwarded the Bitcoin proceeds to unidentified third parties.
The charges of aiding and abetting wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the funds involved in the financial transactions that were the object of conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
North Carolina Restaurant Owner and Son Charged with COVID-Relief FraudRead the Press Release
Two individuals were charged in an indictment that was unsealed today for their alleged participation in a scheme to obtain, through multiple fraudulent loan applications, more than $1.7 million in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina made the announcement.
Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, also known as Tareq Freitekh, 33, whose last known residence was in Glendale, California, were each charged in an indictment filed in the Western District of North Carolina with one count of conspiracy to commit wire fraud and one count of bank fraud. In addition, Izzat Freitekh was charged with one count of false statements.
The indictment alleges that the defendants submitted and caused to be submitted fraudulent PPP loan applications on behalf of three sets of companies:
- Applications that included false and fraudulent IRS tax documentation submitted on behalf La Shish Kabob Restaurant located in Charlotte, and, separately, La Shish Catering.
- An application which included fraudulent IRS tax documents submitted on behalf of Green Apple Catering LLC (Green Apple), representing that Green Apple paid $4.8 million to employees in 2019 despite evidence that the company did not exist until March 2020.
- An application that included false company payroll information and fraudulent IRS tax documents submitted on behalf of Aroma Packaging Systems.
The indictment further alleges that Izzat Freitekh made materially false statements to law enforcement agents that a company called “Kyber Capital” was responsible for submitting the PPP loan applications at issue.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $1.3 million of the disbursed PPP funds in the matter.
The CARES Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service, IRS – Criminal Investigation, and Treasury Inspector General for Tax Administration. Trial Attorney Joshua N. DeBold of the Criminal Division’s Fraud Section and Deputy Criminal Chief Jenny Grus Sugar of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Applications that included false and fraudulent IRS tax documentation submitted on behalf La Shish Kabob Restaurant located in Charlotte, and, separately, La Shish Catering.
North Carolina Restaurant Owner and Son Charged with COVID-Relief FraudRead the Press Release
CHARLOTTE, N.C. – Two individuals were charged in an indictment that was unsealed today for their alleged participation in a scheme to obtain, through multiple fraudulent loan applications, more than $1.7 million in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina made the announcement.
Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, also known as Tareq Freitekh, 33, whose last known residence was in Glendale, California, were each charged in an indictment filed in the Western District of North Carolina with one count of conspiracy to commit wire fraud and one count of bank fraud. In addition, Izzat Freitekh was charged with one count of false statements.
The indictment alleges that the defendants submitted and caused to be submitted fraudulent PPP loan applications on behalf of three sets of companies:
- Applications that included false and fraudulent IRS tax documentation submitted on behalf La Shish Kabob Restaurant located in Charlotte, and, separately, La Shish Catering.
- An application which included fraudlent IRS tax documents submitted on behalf of Green Apple Catering LLC (Green Apple), representing that Green Apple paid $4.8 million to employees in 2019 despite evidence that the company did not exist until March 2020.
- An application that included false company payroll information and fraudulent IRS tax documents submitted on behalf of Aroma Packaging Systems.
The indictment further alleges that Izzat Freitekh made materially false statements to law enforcement agents that a company called “Kyber Capital” was responsible for submitting the PPP loan applications at issue.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $1.3 million of the disbursed PPP funds in the matter.
The CARES Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service, IRS – Criminal Investigation, and Treasury Inspector General for Tax Administration. Trial Attorney Joshua N. DeBold of the Criminal Division’s Fraud Section and Deputy Criminal Chief Jenny Grus Sugar of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
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.
New Orleans Woman Pleads Guilty to Theft of More Than $69,000 in Social Security FundsRead the Press Release
NEW ORLEANS - United States Attorney Peter G. Strasser announced that VALERIE YOREL MANSON (“MANSON”), age 51, of New Orleans, Louisiana, pled guilty to one count of Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the Bill of Information, beginning in 2010 and continuing through 2016, MANSON collected Social Security Administration benefits of approximately $700 per month paid to an account held in the name of a deceased relative. Accordingly, MANSON fraudulently received approximately $69,000.00 in Social Security Administration benefits in which she was not entitled.
MANSON faces a maximum penalty of ten (10) 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.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Kathryn McHugh.
New Jersey Man Pleads Guilty to Violating the Foreign Corrupt Practices ActRead the Press Release
A New Jersey man who controlled two U.S.-based companies pleaded guilty today for paying a total of $100,000 in bribes to a Korean government official in order to obtain and retain contracts with the Defense Acquisition Program Administration (DAPA), a state-owned and state-controlled agency within the Republic of Korea’s Ministry of National Defense.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office made the announcement.
Deck Won Kang (Kang), 50, of Englewood Cliffs, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
Kang controlled two U.S.-based companies that provided goods and services, including naval equipment and technology, to DAPA. According to admissions made in connection with his guilty plea, from in or around January 2009 through in or around February 2013, Kang engaged in a bribery scheme in order for his companies to obtain and retain business with DAPA.
Kang admitted that he promised to provide a high-ranking official in the Korean Navy and a procurement official for DAPA with something of value when the official left public office. In exchange, the Korean official provided Kang with non-public information relating to the contracts in furtherance of Kang’s companies obtaining the contracts. Kang admitted that in order to fulfill his corrupt promise to the Korean official, between in or around April 2012 and in or around February 2013, at the official’s direction following the official’s retirement from DAPA, Kang caused a series of bribe payments totaling $100,000 to be wired from a bank account controlled by Kang in the United States to a bank account in Australia for the benefit of the Korean official.
The FBI’s Newark Field office conducted the investigation. Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Kogan of the District of New Jersey prosecuted the case. The Justice Department’s Office of International Affairs assisted with the case.
New Jersey Man Admits Violating Foreign Corrupt Practices ActRead the Press Release
NEWARK, N.J. – A New Jersey man today admitted that he paid a foreign official $100,000 in bribes to secure an improper business advantage and to obtain and retain business contracts, U.S. Attorney Craig Carpenito, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office announced.
Deck Won Kang, 50, of Englewood Cliffs, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with violating the anti-bribery provision of the Foreign Corrupt Practices Act.According to documents filed in the case and statements made in court:
From January 2009 to February 2013, Kang was a citizen of the United States, a resident of New Jersey, and an officer, director, employee, and agent of two closely held New Jersey companies. The companies obtained and retained contracts with the Defense Acquisition Program Administration (DAPA), which was a state-owned and state-controlled agency within the Republic of Korea’s Ministry of National Defense. Kang promised a high-ranking official in the Korean Navy and a procurement official for DAPA that he would provide him with something of value once he left public office. Kang made this promise to: (1) to secure an improper business advantage, specifically obtaining non-public information about the contracts; (2) aid the companies in obtaining and retaining the contracts; and (3) to induce the foreign official to use his influence with the Korean Navy and DAPA to affect and influence a decision of DAPA concerning the companies obtaining and retaining the contracts. Kang caused $100,000 to be sent to the foreign official between April 2012 and February 2013.
The charge of violating the Foreign Corrupt Practices Act is punishable by a maximum potential penalty of five years in prison and a fine of the greater of $250,000, twice the gross profits to Kang or twice the gross loss suffered by the victim. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Andrew Kogan of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice. U.S. Attorney Carpenito also thanked the Department of Justice Office of International Affairs for its assistance with the case.
Defense counsel: Robert Mintz Esq. and Geoffrey Rosamond Esq., Newark
N.Y. Resident Sentenced for Traveling to R.I. to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – A 24-year-old New York man who admitted that he befriended then engaged in sexually explicit communications online with a 15-year-old Rhode Island boy, and who then relocated to Rhode Island and repeatedly engaged in illicit sexual activity with the minor, was sentenced today to five years in federal prison.
Caleb Brown and the young teenager were discovered by Warwick Police in a baseball field dugout in August 2019, after a concerned citizen reported to police that a male was observed living in the dugout with what appeared to be a minor child.
After placing Brown in a police cruiser, the 15-year-old told police he met Brown online approximately six months prior and that he had been dating Brown since that time. The youngster told police he had been spending nights outside with Brown, while telling his parent’s he was staying at a friend’s house.
Prior to traveling to Rhode Island from the Bronx, Brown and the victim engaged in sexually explicit online communications and exchanged sexually explicit images. Officers viewed a steady stream of intimate and sexually explicit text messages between Brown and the boy. The text messages also revealed discussions of where the two should meet and sleep, and Brown advising the youngster with ways to conceal the true nature of their relationship.
Investigators also discovered 12 videos taken by Brown of him engaged in sexual contact with the victim.
Appearing today before U.S. District Court Judge Mary S. McElroy, Brown was sentenced to 5 years in federal prison to be followed by 8 years supervised release, announced United States Attorney Aaron L. Weisman and Warwick Police Chief Colonel Rick Rathbun.
Brown pleaded guilty on October 5, 2020, to travelling with intent to engage in illicit sexual conduct.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
United States Attorney Aaron L. Weisman and Warwick Police Chief Colonel Rick Rathbun thank the FBI and the Rhode Island State Police Internet Crimes Against Children Task Force for their assistance in the investigation of this matter.
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Munster Woman Charged with Wire Fraud Relating to Chapter 13 BankruptcyRead the Press Release
HAMMOND-Mary Cossey, age 54, of Munster, Indiana, was indicted for three counts of wire fraud relating to her petition for Chapter 13 bankruptcy relief, announced U.S. Attorney Kirsch.
According to the indictment, Cossey defrauded the bankruptcy trustee and her creditors by providing false information in her bankruptcy petition, and concealed prohibited post-petition and preferential payments to a personal friend and creditor, identified in the Indictment as Individual A. The purpose of Cossey’s scheme was to avail herself of the benefits of bankruptcy—including preventing foreclosure on her home, reducing the majority of her debt on a rental property in Gary, Indiana, and eliminating her unsecured debt for pennies on the dollar—without making any of the financial sacrifices required by Chapter 13 debtors.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case was investigated by the Federal Bureau of Investigations and the Internal Revenue Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10. This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Miami-Dade Public Service Aide who Accepted Bribes Pleads Guilty in Federal CourtRead the Press Release
Miami, Fl.-- Today, Marquies McGirt, 32, a former Miami-Dade Police Department (“MDPD”) public service aide (“PSA”) pled guilty to conspiring to commit mail fraud, by accepting bribes from a co-conspirator who operated a for-profit credit repair business.
According to court documents, a PSA is an unarmed civilian employee with no arrest powers, whose duties essentially involve providing support to sworn police officers. A PSA performs duties that can include investigations of non-violent crimes, minor crime scene processing, and other routine non-emergency law enforcement activities – such as directing traffic and responding to accidents without serious injury. As part of a PSA’s official duties, a PSA may respond to a reported incident of the offense under Florida state law of “criminal use of personal identification,” which is commonly known as identity theft.
The credit repair business operated by McGirt’s co-conspirator assisted individuals in improving their credit scores, including individuals residing in Miami-Dade County. The essence of the conspiracy involved McGirt agreeing to assist his co-conspirator’s business by creating police reports known as Offense-Incident Reports (“OIRs”) that alleged certain customers of the co-conspirator’s credit repair business had been victims of identity theft. In return for creating the OIRs, McGirt would receive bribes from the co-conspirator in the form of cash and lifetime free credit monitoring, as well as discounted credit repair services for McGirt’s family members and friends.
In furtherance of the conspiracy, McGirt’s co-conspirator would provide McGirt with the customers’ names and other identifying information, so that McGirt in turn could create OIRs that claimed those customers had been victims of the Florida state law offense of criminal use of personal identification. McGirt would create OIRs, consistent with this plan. In the OIRs, McGirt would falsely represent that the alleged “victims” personally had reported to him facts consistent with having been victims of identity theft, when in fact McGirt had never met with the alleged victims.
The co-conspirator would send letters, via the United States Postal Service, to Experian, TransUnion, and Equifax, which were credit reporting agencies that collected and maintained data relevant to the credit worthiness of individual consumers. In order to induce the credit reporting agencies to remove negative items from the credit histories of the co-conspirator’s customers, the letters would claim that the co-conspirator customers had been victims of identity theft. To support the claims in these letters, the co-conspirator could include a copy of the relevant OIR provided by McGirt.
Records obtained through the investigation of this case reflect that the defendant created approximately twenty-four (24) OIRs in the manner described above, which the co-conspirator in turn sent to one or more of the credit reporting agencies.
McGirt’s sentencing hearing is scheduled for February 23, 2021, at 11:00 a.m. before U.S. District Judge Ursula Ungaro.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Alfredo Ramirez III, Director, Miami-Dade Police Department, made the announcement.
FBI Miami investigated this case, with assistance from the MDPD Professional Compliance Bureau. Assistant U.S. Attorney Michael S. Davis is prosecuting the case.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20202.
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Meth "Mules" Plead Guilty in 23-kilo Bust on I-75Read the Press Release
MACON, Ga. – Two women arrested in possession of more than 23 kilos of methamphetamine during a traffic stop on I-75 have pleaded guilty to possession with intent to distribute methamphetamine and are both facing a maximum twenty years in prison for their crimes, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Tiffany S. Crawford, aka “Pie,” 42, of Canton, Georgia, pleaded guilty to one count of possession with intent to distribute methamphetamine on December 16, before U.S. District Judge Tilman E. “Tripp” Self, III. Co-defendant, Ariana C. Matthews, 23, from Troy, Michigan, pleaded guilty to one count of possession with intent to distribute methamphetamine on December 15, also before Judge Self. Both defendants face a maximum twenty years imprisonment, to be followed by three years of supervised release, and a maximum fine of $1,000,000. Sentencing is scheduled for March 2, 2021.
According to the stipulation of facts entered in court, on December 9, 2019, a Butts County Sheriff’s Office Deputy patrolling I-75 pulled over a white Chevrolet Camaro driven by Crawford for multiple traffic violations. Smelling the odor of marijuana, the deputy asked if there were drugs in the car. Matthews admitted she had drugs and pulled a small amount of marijuana out of her pants. The deputy conducted a probable cause search of the vehicle, and inside a large suitcase in the backseat found multiple vacuum sealed bags containing large quantities of methamphetamine. More bags of methamphetamine were found inside a suitcase in the trunk. In all, 23 packages of methamphetamine were found, totaling 23,077 grams of 98% pure d-methamphetamine hydrochloride, also known as “ice.” Matthews told the agents that she had acquired the drugs in Los Angeles, California and had flown to Orlando, Florida with the drugs and had done so at least two other times. Crawford or another individual would then pick her up from the airport and drop her off at Atlantic Station in Atlanta, Georgia, where Matthews would get paid for her part in moving the drugs.
“Those caught trafficking large amounts of methamphetamine through Middle Georgia will face severe consequences – federal prosecution and federal prison without parole,” said Acting U.S. Attorney Leary. “I want to thank the Butts County Sheriff’s Office and the DEA for investigating this case.”
“Methamphetamine poses a clear and present danger to the health and safety of communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the unified effort between all law enforcement agencies involved in this case, these two defendants will no longer be able to distribute this toxic drug that destroys lives and communities.”
“I want to commend the United States Attorney’s Office and the Drug Enforcement Administration for assisting and the prosecution of this case. With methamphetamine being the biggest threat to our community, I want to commend my Deputy for intercepting this poison before it destroyed lives and families across the state of Georgia. My office will continue to identify and arrest anyone that decides to possess, distribute, or traffic methamphetamines, into or through Butts County,” said Butts County Sheriff Gary Long.
The investigation was conducted by the U.S. Drug Enforcement Administration (DEA) and the Butts County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Manager of JD’s Circle in Bar Sentenced in Federal Drug Distribution ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that Brett Feder, 36, was sentenced in federal court in Omaha, Nebraska on December 16, 2020 for conspiracy to distribute methamphetamine, cocaine, marijuana and THC (“tetrahydrocannabinol”); money laundering; and being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Feder to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Feder will serve a 5-year term of supervised release.
A series of controlled buys of cocaine, in addition to the wiretaps, walled-off traffic stops, and premises searches corroborated Feder’s involvement with others in the distribution of methamphetamine, cocaine, marijuana, and tetrahydrocannabinol (‘THC’) cartridges used in vaping devices. Feder managed and operated JD’s Circle In, a bar located in south Omaha, which was a front for illegal drug trafficking and illegal sports betting operations. Additionally, close to $50,000 in drug proceeds and 7 firearms were ordered forfeited to the United States.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
“For several years, Mr. Feder was involved in drug and money laundering violations while managing and operating a bar located in Omaha, Nebraska that he used as a front,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “However, today’s sentencing shows that with both law enforcement and financial investigation expertise like in Operation Steak Your Bets, individuals that illegally conduct drug trafficking operations and bookmaking operations face lengthy prison sentences.”
The case was primarily investigated by the Drug Enforcement Administration, Omaha Field Division, the Federal Bureau of Investigation, the Internal Revenue Service, and the Omaha Police Department.
Man Convicted of Carnal Knowledge of Child Sentenced for Illegal ReentryRead the Press Release
RICHMOND, Va. – A Montross man was sentenced today to two years in prison for illegally reentering the U.S. following removal due to an aggravated felony conviction of carnal knowledge of a child.
According to court documents, Jose Francisco Zepeda-Reyes, 31, lawfully entered the U.S. as the child of a lawful permanent resident. In 2011, at 20 years of age, Zepeda-Reyes was convicted in Essex County of carnal knowledge of a child between 13 and 15 years of age. He was sentenced to five years in prison, with four years and three months suspended, and deported after completing his active sentence. On an unknown date thereafter, Zepeda-Reyes illegally reentered the country and began residing in Montross.
In 2019, U.S. Immigration and Customs Enforcement (ICE) received information that Zepeda-Reyes had illegally returned to the U.S., which led to his arrest. After being prosecuted by authorities in Westmoreland County for failing to register as a sex offender, he was turned over to federal authorities for prosecution relating to the instant illegal reentry offense.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Shawn Byers, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorney Brian Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-142.
Madras Methamphetamine Trafficker Sentenced to 25 Years in Federal PrisonRead the Press Release
EUGENE, Ore.—Ronald Wayne Thrasher, 50, a prolific drug dealer from Madras, Oregon with a decades-long criminal history, was sentenced today to 25 years in federal prison followed by five years’ supervised release, announced U.S. Attorney Billy J. Williams.
On August 8, 2019, Thrasher, whose previous convictions include drug manufacturing and distribution, burglary, and illegal firearm possession, was found guilty of conspiring to distribute controlled substances and possessing with intent to distribute methamphetamine by a federal jury in Eugene.
“Ronald Thrasher is a dangerous criminal whose drug dealing threatened communities throughout Central Oregon. Despite several previous convictions and significant prison sentences, Thrasher repeatedly returned to drug trafficking to provide income for himself, supply his own drug addiction, and bolster his status among rivals,” said U.S. Attorney Williams. “The significant sentence imposed today cuts off a major source of methamphetamine supply in Central Oregon, aiding our collective effort to reverse the state’s addiction crisis.”
“DEA is committed to working with our state, local and federal partners at curbing the violence in our communities,” said DEA Special Agent in Charge Frank Tarentino. He further added, “This sentence is an important step in our joint mission to disrupt, dismantle, and destroy violent drug trafficking organizations who threaten the very communities we aim to protect.”
“Mr. Thrasher’s sentence is fitting for the illegal actions he has taken,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “ATF will always work to bring to justice those who cause harm in their communities.”
Thrasher was convicted alongside his supplier, Russell Marvin Jones, 54, of Gresham, Oregon. Both men conspired with one another and others to traffic methamphetamine from Southern California to Central Oregon and the Portland, Oregon Metropolitan Area for distribution. For his role in the scheme, Jones was sentenced to 200 months in prison and five years’ supervised release. Nine other co-defendants have pleaded guilty to conspiring with Thrasher.
According to court documents and testimony produced at trial, in the spring of 2016, Thrasher became acquainted with multiple co-defendants who were engaged in trafficking methamphetamine from Santee and San Diego, California, and Portland for resale in Central Oregon. Thrasher used these connections to establish a source of supply for his own methamphetamine use and distribution.
In early 2017, after his primary supplier was arrested in Redmond, Oregon, an associate introduced Thrasher to Jones, a methamphetamine manufacturer and dealer in the Portland area. On or about February 17, 2017, Thrasher traveled to Portland with his associates to meet Jones and Jones sold Thrasher several pounds of methamphetamine. On March 20, 2017, after several more deals, Jones sold Thrasher a stolen firearm.
By April 2017, Thrasher was distributing methamphetamine via multiple associates throughout Central Oregon. On April 9, 2017, he was introduced to new California-based methamphetamine suppliers. Two weeks later, Thrasher and an associate drove to Santee to meet with his new suppliers. During this meeting, Thrasher purchased approximately 13 pounds of methamphetamine.
In May 2017, a Central Oregon Drug Enforcement (CODE) team investigation identified Thrasher as a high-volume methamphetamine supplier and distributor. On May 29, 2017, CODE detectives assisted by a U.S. Drug Enforcement Administration (DEA) agent arrested Thrasher and seized approximately 16 pounds of methamphetamine, $16,000 in cash, drug sale records and the stolen firearm from his residence in Madras.
This case was investigated by CODE, DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Oregon State Police. It was prosecuted Frank R. Papagni Jr. and Judi Harper, Assistant U.S. Attorneys for the District of Oregon, with the assistance of the Jefferson, Crook and Deschutes County District Attorney’s Offices.
Macon’s “Get Dat Money” Meth Cartel Leader Pleads Guilty to ConspiracyRead the Press Release
MACON, Ga. – The leader of Macon’s “Get Dat Money” methamphetamine drug distribution organization pleaded guilty to a federal conspiracy charge, following a lengthy investigation into the network’s activities, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Kelvin D. Carswell, aka “K-9,” “Nine,” “Kinineso Harlem Carswell,” “9ne Oharlem,” “Kninepunkin KinGcarswell,” 40, of Macon, pleaded guilty on Tuesday, December 15, to one count conspiracy to possess with the intent to distribute methamphetamine before U.S. District Judge Tilman E. “Tripp” Self, III. Carswell faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000. Co-conspirator Quateshia Carswell, 27, of Macon, pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 1, 2020. She faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000. The additional co-conspirators are as follows:
Davan Randolph, 49, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on December 15, 2020, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Terrico Wade, 40, of Macon, pleaded guilty to distribution of methamphetamine on December 15, 2020, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Jahmi Booker, 38, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000;
Kelly Jones, 38, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years in prison, to be followed by one year of supervised release, and a maximum fine of $250,000;
Kewaunis King, 31, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000; and,
Trent Burton, 50, of Macon, pleaded guilty to use of communication facility on December 16, 2020, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000.
Charges are still pending against Tabitha Whitehead, 36, of Macon, and Jacobi Jones, Sr., 35, of Macon. Both have hearings scheduled on December 21, 2020. Charges are also pending against co-defendants Trayvion Burney, 26, of Macon, Chad Cummings, 37, of Macon, and Henry Flowers, 32, of Macon.
All co-conspirators who have entered guilty pleas to date will be sentenced by The Honorable Judge Self on May 4, 2021 in U.S. District Court, Macon. There is no parole in the federal system.
According to the stipulation of fact entered into court, in 2017, the Macon office of the FBI and the Bibb County Sheriff’s Office initiated their investigation of the Carswell drug trafficking organization known as “Get Dat Money” or “GDM,” that began as early as 2002. On May 30, 2012, Carswell was incarcerated by the Georgia Department of Corrections, serving a sentence for attempted carjacking with a maximum release date of October 12, 2026. In June 2017, the FBI received information that Carswell was selling drugs while incarcerated at the Washington State Prison in Sandersville, Georgia. A search of his prison cell recovered a cellular phone with multiple SD cards and a quantity of drugs. Investigators discovered Carswell was texting his co-conspirators explicit instructions via his contraband cell phone to facilitate the distribution of methamphetamine, heroin and crack cocaine from prison. The drugs, once obtained, were sold from a residence Carswell and his co-conspirators referred to as “The Mansion” located at 373 Fulton Street in Macon. Carswell’s co-conspirators would sell drugs out of “The Mansion” at his direction. Drugs were also sold by distributors working at the behest of Carswell, at multiple motels located in Macon. Throughout the course of the conspiracy, Quateshia Carswell obtained more than 10,000 grams of methamphetamine for distribution at Kelvin Carswell’s direction.
“Thanks to the persistence of the Bibb County Sheriff’s Office and the FBI, GDM is broken, ridding Macon of a dangerous criminal drug trafficking organization whose leader was directing large amounts of methamphetamine from inside a prison,” said Acting U.S. Attorney Leary. “Carswell and his co-conspirators will soon face severe consequences for their crimes—federal prison without parole.”
“The aberrant behavior conducted by Carswell from inside a prison, where he is supposed to be rehabilitating from past crimes, is shocking,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to the assistance from the Bibb County Sheriff Office and the U.S. Attorney’s Office, Carswell and his co-conspirators will have more time in prison to think about the devastation they caused to the Macon community.”
“These guilty pleas represent the culmination of the efforts of the Bibb County Sheriff’s Office and our federal partners to go after these drug dealing gangs no matter where they may be, whether it is on the street or in the state prisons. Our community can rest easy knowing this group of dangerous criminals is out of business for a long time to come,” said Bibb County Sheriff David J. Davis.
The investigation was conducted by the FBI and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Man with Loaded Firearm in Baby Diaper Bag Is Charged with Federal Offenses Related to Jewelry Store RobberyRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a complaint has been filed charging Shemelle Isaac with accessory after the fact, possession of stolen property, and unlawful possession of firearms and ammunition.
According to court documents, on Friday, December 11, 2020, Tashawn Warner was arrested for his role in the robbery of the Gems & Gold Corner jewelry store in St. Thomas, which occurred on September 19, 2020. Immediately prior to his arrest, Warner was observed loading bags into the trunk of a 2020 Gray Toyota Corolla registered to him. After Warner closed the trunk and entered the Corolla, a Black Infinity G37x drove towards Warner at a high rate of speed and stopped next to Warner’s vehicle. Warner exited the Corolla, removed the bags from the trunk of the Corolla, and placed them into the trunk of the Infinity G37x. Warner then briefly opened and closed one of the passenger side doors of the Infinity G37x, which then drove off. As Warner got back into the Corolla, he was arrested.
At the same time that Warner was being placed into custody, Shemelle Isaac was observed walking from the direction where the Infinity G37x had driven off, holding a child. Isaac entered a residence briefly then approached the arresting agents (without the child) and identified himself as “Shawn,” a friend of Warner’s.
Following Warner’s arrest, the Infinity G37x was located parked around the corner from Isaac’s residence in front of another residence. While agents were photographing the Infinity G37x, the hood was checked and found to still be warm, as if the vehicle had recently been driven. VIPD officers called for a tow truck. The officers observed bags located inside the passenger area of the vehicle.
While agents were awaiting the tow truck, Shemelle Isaac approached on foot and stated the vehicle was his, but it was registered to his girlfriend. Shemelle Isaac confirmed he was aware of the article in paper which was Warner’s arrest warrant for his involvement in the jewelry store robbery and was coming up to speak to Warner about it. Shemelle Isaac insisted he needed his daughter’s diaper bag out of the car, because it contained her milk. However, when agents offered to give him the bag only after they searched it for contraband, he refused.
Agents obtained a search warrant for both the Corolla and the Infinity G37x. They search the (diaper) bag, which contained a fully loaded Glock 17 in a holster. Inside the trunk of the vehicle, agents located a duffel bag containing an unloaded Glock 26, three loaded AK-47 style rifles, four Glock magazines, three AK-47 magazines including a drum magazine, rifle ammunition and a sandwich bag containing 5 gold necklaces and a bracelet. Agents confirmed with the owner of the Gems & Gold Corner jewelry store that the recovered jewelry was part of the jewelry stolen during the robbery perpetrated on September 19, 2020. Based on a combined weight of the found pieces of jewelry shown to the owner, the owner estimated the price of the found pieces as approximately $26,000.00.
This case is being investigated by the Federal Bureau of Investigation and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Juan Albino.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Luray Woman Pleads Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Harrisonburg, Va. - A Luray woman, who police stopped for driving with a suspended license and found to be in possession of methamphetamine and other drugs, pleaded guilty yesterday in U.S. District Court to a pair of federal drug charges, Acting United States Attorney Daniel P. Bubar announced.
Amanda Marie Catoe, 32, pleaded guilty yesterday to one count of conspiring to distribute 500 grams or more of methamphetamine and one count of possessing with the intent to distribute 50 grams or more of methamphetamine. Catoe faces a mandatory minimum sentence of 10 years in prison and a maximum statutory sentence of life in prison. She will be sentenced on April 21, 2021.
“Methamphetamine continues to plague communities in the Western District,” Acting U.S. Attorney Bubar stated today. “Prosecuting those that distribute meth and therefore perpetuate the destruction caused by it continues to be a top priority of this office and I appreciate the hard work of our federal and state partners that went into this case.”
According to court documents, on January 8, 2019, officers stopped Catoe’s vehicle for driving with a suspended license. A narcotics canine arrived on scene and alerted to the vehicle. Upon searching the vehicle, officers found several bags of methamphetamine, marijuana, and cash.
A search warrant was executed at Catoe’s residence in Luray. Officers found methamphetamine hidden under the stairs, hallucinogenic mushrooms, morphine, psilocyn, documents detailing prior drug transactions, and at least ten firearms, including four shotguns and four rifles.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearm, and Explosives, Luray Police Department, and Page County Sheriff’s Department. Assistant United States Attorney Jeb Terrien is prosecuting the case for the United States.
Leader of Drug Trafficking Organization Sentenced to 295 MonthsRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Cristian Gutierrez-Alvarez, 26, Michoacan, Mexico was sentenced to 295 months in federal prison today following his guilty plea to conspiracy to distribute controlled substances and possession of a firearm during and in furtherance of a drug trafficking offense, by U.S. District Judge James P. Hanlon.
“Drug dealing fuels the majority of violence and social devastation that is occurring in Indianapolis,” said Childress. “Those who choose to ignore our drug laws can expect to face the full force of federal prosecution by the U.S. Attorney’s Office. The impactful investigative work done by our federal, state and local partners is to be commended.”
In late February 2018, federal agents initiated an investigation into a drug trafficking organization led by Cristian Gutierrez-Alvarez. This organization distributed controlled substances in the Indianapolis and Medford, Oregon areas. This poly drug organization was distributing multi-pound quantities of heroin, methamphetamine, cocaine and marijuana from sources of supply in Mexico, California and Oregon.
On January 18, 2019, 15 federal search warrants from this investigation were executed. As a result, 25 federal arrests and multiple state arrests throughout Indiana and Oregon were made as well as the seizure of approximately nine pounds of methamphetamine, over a kilogram of heroin, fifteen ounces of cocaine, approximately forty pounds of marijuana, twenty firearms, approximately $20,000, and 15 vehicles.
This case was the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, Indianapolis Metropolitan Drug Task Force, and US Immigration and Customs Enforcement.
“The 295 month sentencing of Mr. Gutierrez-Alvarez was just and necessary for the fine citizens of Indianapolis and our surrounding communities,” said DEA Assistant Special Agent in Charge, Michael Gannon. “Individuals like Gutierrez-Alvarez must be held accountable for their actions, especially when they are dealing debilitating drugs, such as heroin, methamphetamine and cocaine. The DEA is committed to working with our federal, state, and local partners to investigate and arrest drug traffickers such as Gutierrez-Alvarez and keep our communities safe.”
According to Assistant U.S. Attorney Bradley A. Blackington, who prosecuted the case for the government, Gutierrez-Alvarez will be deported to Mexico following the completion of his prison sentence.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to increase prosecution of transnational drug trafficking organizations affecting the District while reducing the supply of heroin and methamphetamine to the District.
Las Cruces man charged for making online threatsRead the Press Release
ALBUQUERQUE, N.M. – Dustin John Charles, 37, of Las Cruces, New Mexico, was charged in federal court today after an arrest for cyberstalking.
According to a criminal complaint, on April 29, Charles allegedly posted a photo of a Las Cruces police officer on Facebook and stated that he was having dreams of killing the officer. Charles allegedly sent a Facebook friend request to the officer. The officer noticed a Facebook post by Charles claiming to have captured a burglary suspect on camera. The post included a link to the photo of the officer that Charles allegedly had posted.
On Sept. 5, Charles allegedly sent an email to the New Mexico office of the American Civil Liberties Union (ACLU) that included a reference to killing the Las Cruces officer. The following day, Charles allegedly sent the ACLU a similarly threatening email.
On Nov. 30, in response to a Las Cruces Sun-News Facebook post regarding Las Cruces’ new Chief of Police, Charles allegedly replied indicating that he would be more likely to shoot a Las Cruces police officer than allow himself to be pulled over.
By federal law, the use of any interactive computer service to engage in conduct intended to harass or intimidate another person is a felony. If convicted, Charles faces up to five years in prison. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The FBI investigated this case in conjunction with the Las Cruces Police Department. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Kansas Man Pleads Guilty in Government Contract Fraud SchemeRead the Press Release
KANSAS CITY, KAN. – A Kansas man pleaded guilty today to lying to a federal investigator who was looking into allegations of major program fraud, U.S. Attorney Stephen McAllister said.
Troy L. Bechtel, 51, Overland Park, Kan., pleaded guilty to one count of making a false statement to a federal investigator. In his plea, Bechtel admitted he lied during an investigation into allegations that United Medical Design Builders fraudulently received contracts from the Department of Defense through the Service-Disabled Veteran-Owned Small Business program. Bechtel was a project manager for the company.
Sentencing is set for March 18, 2021. Bechtel could face a penalty of up to five years in federal prison and a fine up to $250,000.
McAllister commended the Small Business Administration - Officer of Inspector General, General Services Administration - Office of Inspector General, Defense Criminal Investigative Service, the Army CID Major Procurement Fraud Unit and Assistant U.S. Attorney Tris Hunt for their work on the case.
KC Man Pleads Guilty to Meth Conspiracy, Faces 10 Years in PrisonRead the Press Release
JEFFERSON CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine in Camden County, Missouri.
Stephen Joseph Sanchez, 35, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of conspiracy to distribute methamphetamine. Co-defendant Jo Marie Pollina, 37, of Kansas City, Mo. pleaded guilty to the same charge on June 30, 2020.
According to today’s plea agreement, Sanchez was arrested at a Camdenton hotel on Oct. 31, 2017. A police officer responded to a report of a man tampering with a motor vehicle in the hotel’s parking lot, and found Sanchez on the ground beside a sport utility vehicle when he arrived. Sanchez had a bag of marijuana and $8,225 in his pocket.
The officer entered the hotel and contacted Pollina, who told the officer she and Sanchez had traveled in a Dodge Dakota truck. As Pollina attempted to check out of the hotel, the officer seized the duffel bag and backpack that belonged to Sanchez. Pollina physically resisted giving the bags to the officer before he was able to wrest the bags from her. The officer was then contacted by the room attendant, who had found a glass smoking pipe in the hotel room. Pollina was placed under arrest.
The officer seized a bag of marijuana and a Taurus 9mm pistol from the truck. After obtaining a search warrant for Sanchez’s bags, the officer found a cellphone package that contained 158.4 grams of methamphetamine.
Under the terms of today’s plea agreement, the government and Sanchez jointly recommend a sentence of 10 years in federal prison without parole. Sanchez must also forfeit to the government $8,225 seized by law enforcement. Under federal statutes, Pollina is subject to a mandatory minimum sentence of five years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Camdenton, Mo., Police Department and the Drug Enforcement Administration.
Judge sentences armed carjacker three months after sentencing co-defendantRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Terrance Brew to 104 months in prison today. The 24-year-old St. Louis, Missouri resident pleaded guilty to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence. Judge Perry sentenced Daquan Sanders, Brew’s 20-year-old co-defendant, to 104 months in September.
On April 1, 2019, Brew and Sanders approached two people in a St. Louis County park. The victims were playing basketball within the park. Brew and Sanders, each armed with a firearm, approached the victims and demanded their belongings. One victim gave his cell phone and the other stated he had only his car keys.
While Sanders held the two victims at gunpoint, Brew reached into the victim’s pocket and removed his car keys. Brew and Sanders then fled the scene in the victim’s car.
Later that evening, St. Louis County Police located the carjacked vehicle. Brew was driving the vehicle and Sanders was in the front passenger seat. Police tried to perform a traffic stop, but Brew failed to pull over which resulted in a 15-mile police chase through St. Louis City.
The vehicle chase ended when Brew crashed into concrete barriers blocking a residential street to vehicular travel. Brew and Sanders then fled on foot and both were taken into custody.
The Federal Bureau of Investigation and the St. Louis County Police Department investigated this case. Assistant United States Attorney Jason Dunkel handled this case.
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Judge sentences St. Louis man for drug trafficking at Clinton-Peabody Housing ComplexRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Demetrius Tyrese Johnson to 180 months in prison today. The 26-year-old St. Louis, Missouri resident pleaded guilty to one count of conspiracy to distribute fentanyl and one count of felon in possession of a firearm.
Johnson was involved in a conspiracy to distribute more than 400 grams of fentanyl centered on the Clinton-Peabody housing complex on the near south side of the City of St. Louis.
Between September 2014 and July 2018, Johnson acted as a distributor for drug customers seeking fentanyl in the St. Louis Metropolitan area. Johnson and other associates used various apartments within the Clinton-Peabody housing complex for purposes of storing and distributing fentanyl, among other things.
On July 18, 2018, investigators conducted a search warrant at Johnson’s residence. Inside Johnson’s bedroom, officers located a Glock 27, .40 caliber firearm with an extended magazine, an Anderson Arms AR-15 rifle and ammunition. Johnson knew he was a convicted felon prior to July 18, 2018.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service and the St. Charles County Sheriff’s Department.
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Inmate at USP Lee Pleads Guilty to Unlawfully Possessing WeaponRead the Press Release
ABINGDON, Virginia - An inmate at the USP Lee in Jonesville, Virginia, pleaded guilty yesterday in U.S. District Court to unlawfully possessing a weapon inside the prison, Acting United States Attorney Daniel P. Bubar announced today.
Leonardo Acevedo-Vazquez, 28, pleaded guilty yesterday to one count of possessing contraband in a prison, that contraband being a weapon. Acevedo-Vazquez, who faces up to an additional five years in prison for his most recent offense, will be sentenced on March 15, 2021.
According to court documents, on January 19, 2020, a staff member at USP Lee observed Acevedo-Vazquez in his cell holding a metal object in his right hand. The metal object was a prison made weapon, approximately 6.5 inches long, sharpened to a point at one end with a handle made of white sheet material on the other end.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Steven J. Luckie prosecuted the case for the United States.
Hot Springs Man Sentenced to over 8 Years in Federal Prison for Child Pornography OffenseRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that Alejandro Aurioles, age 32, of Hot Springs, Arkansas, was sentenced today to 97 months in federal prison without the possibility of parole followed by 10 years of supervised release on one count of accessing the Internet with the intent to view child pornography. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on October 26, 2018, detectives with the Hot Springs Police Department received a Cybertip report of child pornographic images being downloaded to a Hot Springs telephone number. Detectives traced the phone number back to a cell phone associated with Aurioles. On or about December 21, 2018, Aurioles was arrested on a state charge and admitted to Hot Springs detectives that he had downloaded images of child pornography using his cell phone and sold those images to others on two occasions. During a search of his two cellular phones, thousands of child pornography images and videos of child sexual abuse were forensically recovered.
Aurioles was indicted in March of 2019 and entered a guilty plea to a related case in September of 2019.
This case was investigated by the Hot Springs Police Department and the FBI. Assistant United States Attorneys Kim Harris and Ben Wulff prosecuted the case for the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Home Depot to Pay $20,750,000 Penalty for Nationwide Failure to Follow Rules for Conducting Renovations Involving Lead PaintRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the Department of Justice today announced a proposed nationwide settlement with Home Depot U.S.A. Inc. resolving alleged violations of the EPA’s Lead Renovation, Repair and Painting (RRP) Rule at home renovations performed by Home Depot’s contractors across the country. The States of Utah, Massachusetts, and Rhode Island, which have EPA-authorized RRP programs, are joining the United States in this action.
The settlement, in a consent decree lodged with the District Court for the Northern District of Georgia, requires Home Depot to implement a comprehensive, corporate-wide program to ensure that the firms and contractors it hires to perform work are certified and trained to use lead-safe work practices to avoid spreading lead dust and paint chips during home renovation activities. Home Depot will also pay a $20.75 million penalty, the highest civil penalty obtained to date for a settlement under the Toxic Substances Control Act. Of the $20.75 million penalty, $750,000 will be paid to Utah, $732,000 to Massachusetts, and $50,000 to Rhode Island.
“These were serious violations. The stiff penalty Home Depot will pay reflects the importance of using certified firms and contractors in older home renovations,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Contractors hired for most work in homes built prior to 1978, when lead based paint was in widespread use, must be certified. These contractors have the training to recognize and prevent the hazards that can be created when lead paint is disturbed.”
“Today’s settlement will significantly reduce children’s exposure to lead paint hazards,” said Susan Bodine, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Home Depot will implement system-wide changes to ensure that contractors who perform work in homes constructed before 1978 are EPA-certified and follow lead-safe practices. EPA expects all renovation companies to ensure their contractors follow these critical laws that protect public health.”
EPA discovered the alleged violations when investigating five customer complaints about Home Depot renovations (in Illinois, Maine, Michigan, Minnesota and Wisconsin), which showed Home Depot subcontracted work to firms that in some cases did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or maintain records of compliance with the law.
EPA then conducted a comprehensive review of Home Depot’s records of renovations performed throughout the United States and identified hundreds of instances in which Home Depot sent uncertified firms to perform renovations that required certified and trained firms. In addition, EPA identified instances in which Home Depot failed to establish, retain, or provide compliance documentation showing that specific contractors had been certified by EPA, had been properly trained, and had used lead-safe work practices in projects performed in homes.
For the most serious violations addressed by the settlement, Home Depot offered its customers inspections using certified professionals and, if dust lead hazards were found, it performed specialized cleaning and verification.
Under the settlement, Home Depot will implement a company-wide program to ensure that the contractors it hires to perform work for its customers comply with the RRP Rule during renovations of homes built before 1978. To do this, Home Depot is implementing an electronic compliance system to verify that the contractors it hires are properly certified. Home Depot will also require its contractors to use a detailed checklist to document compliance and provide the completed checklist to the customer. The checklist will lead the contactors through the steps required for RRP Rule compliance. Home Depot will also conduct thousands of on-site inspections of work performed by its contractors to ensure they comply with lead-safe work practices. Home Depot must also investigate and respond to customer complaints. In instances where the contractor did not comply with Lead Safe Work practices Home Depot will perform an inspection for dust lead hazards and, if they are found, provide a specialized cleaning. EPA will monitor Home Depot’s responses to customer complaints.
In addition to the requirements related to its renovations, Home Depot will provide important information about following lead-safe work practices to its professional and do-it-yourself customers in its stores, on its website, on YouTube, and in workshops. The RRP Rule does not apply to do-it-yourself projects in your own home. However, the EPA recommends using the rule’s lead-safe work practices in your own home projects, so this important information will help families learn how to safely perform home improvement projects to protect themselves, and their children.
Residential lead-based paint use was banned in 1978 but still remains in many older homes and apartments across the country. Lead dust hazards can occur when lead paint deteriorates or is disrupted during home renovation and remodeling activities. Lead exposure can cause a range of health problems, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. A blood lead test is the only way to determine if a child has a high lead level. Parents who think their child has been in contact with lead dust should contact their child's health care provider.
The consent decree is subject to a 30-day public comment period and final court approval. To view a copy of the consent decree and for information on how to submit a comment, visit www.justice.gov/enrd/Consent_Decrees.html.
Further information about the settlement is available on EPA’s website at: https://www.epa.gov/enforcement/home-depot-settlement-information-sheet. To make a complaint about lead safe work practice violations, see EPA’s website link at:
https://www.epa.gov/lead/report-lead-based-paint-complaints-tips-and-violations.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Greenwood Man Charged Federally for Alleged $14 Million Fraud SchemeRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Daniel R. Fruits, 46, of Greenwood, Indiana, was charged by a federal grand jury for his alleged role in three separate fraud schemes, including a nearly $14 million fraud on an investor, an attempted mortgage fraud, and a vehicle title-washing scheme.
“This financial investor gave his hard-earned money to someone whom he thought he could trust,” said Childress. “Instead, the victim’s money ended up in the hands of a self-absorbed thief who only cared about his interests. Living a life of fraud is inexcusable and always comes to an end.”
The Indictment alleges that Fruits defrauded a Kentucky investor, who was also Fruits employer, out of nearly $14 million. In 2015, the investor founded a trucking company, Secure Transit, and hired Fruits to run it. Over the next four-and-a-half years, the investor would invest approximately $14 million in the business.
Throughout that time, Fruits repeatedly lied about the company’s financial health, who its customers were, and what the money invested was being used for. On multiple occasions, Fruits allegedly sent the investor fictitious customer sales contracts and falsified financial statements that reported inflated company profits. At the same time, Fruits allegedly asked the investor for additional investments, sometimes in the millions of dollars, purportedly for the purchase of trucks or other business expenses.
Fruits spent a significant portion of the money on his own personal purchases and payments. He allegedly spent approximately $880,000 to purchase a horse farm and his personal residence, $560,000 on an RV and trailer, over $111,000 on a Corvette, approximately $90,000 on three Rolex watches, approximately $55,000 on a horse, $33,000 on a horse trailer, $23,000 on payments for two Ferraris, and $30,000 on payments for two escorts.
In addition to the fraud on the investor, Fruits attempted to perpetrate a mortgage fraud scheme on Fifth Third Bank. Specifically, in late 2018, Fruits made false statements to Fifth Third Bank to secure a $432,000 mortgage. He twice submitted falsified paperwork purporting to show that loans from another bank had been paid off, when they had not been.
Finally, Fruits perpetrated a title-washing scheme to remove a bank’s lien from the title of a truck he purchased. He financed the truck with a loan from Ally Financial for over $69,000. Several months later, he sent the Indiana Bureau of Motor Vehicles a falsified letter purportedly from Ally Financial stating that the loan had been paid off and the lien should be released.
The loan had not been paid off and Ally Financial never wrote that letter. As a result, the BMV issued Fruits a free-and-clear title for the truck, which Fruits then sold for $48,000, without repaying the loan to Ally Financial.
This case was the result of an investigation by the Federal Bureau of Investigations, and Internal Revenue Service Criminal Investigation.
“This indictment sends a strong message that the FBI will aggressively investigate those who commit such extensive financial fraud and steal from their employer to pad their own pockets to fund a lavish lifestyle,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will always pursue those who take advantage of others through illegal and criminal behavior.”
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit and greed, has taken what belongs to others,” said Acting Special Agent in Charge Tamera Cantu, of IRS Criminal Investigation, Chicago Field Office. “With our agent’s financial investigation expertise, we followed the money and helped to unravel the fraud and deceit conducted by Mr. Fruits. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partner and the U.S. Attorney’s office in the Southern District of Indiana.”
An indictment is a set of allegations and is not itself evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, long-running fraud schemes.
Greenville Man Indicted for Hurling an Object into a Window of the Federal Bankruptcy Court During ProtestsRead the Press Release
RALEIGH, N.C. – Alexander Pridgen, a Greenville man, was charged by Indictment for willfully damaging government property in Greenville during a demonstration over the death of George Floyd in Minneapolis, Minnesota, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
According to the Indictment, on May 31, 2020, Alexander Pridgen joined a group of people who were peacefully protesting in Greenville, North Carolina. The group of peaceful protesters walked past the federal bankruptcy court, located at 150 Reade Circle, in Greenville, North Carolina. Without provocation, Pridgen picked up a brick or brick-like object and hurled it through a ground floor window of the bankruptcy court. Pridgen’s act of vandalism was captured on video by a peaceful protester, who was live streaming the event on Facebook.
Law enforcement officers were able to identify Pridgen because of his involvement in another act of vandalism committed at the Greenville Police Station later in the evening of May 31, 2020, which was captured on video surveillance.
The damage to the ground floor window at the Greenville bankruptcy court cost in excess of $1,000.
The single count charged in the indictment carries a statutory maximum potential penalty of 10 years in prison, and a maximum fine of $250,000.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina credited the United States Marshals Service and the Greenville Police Department with the investigation leading to Pridgen’s indictment. The government is represented by Assistant U.S. Attorney Evan Rikhye of the of the U.S. Attorney's Office’s Criminal Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
A copy of this press release is located on our website.
Grand Jury Indicts Kenmore Man on Multiple Charges of Production, Receipt and Possession of Child Pornography, and Sexual Enticement of A MinorRead 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 a federal grand jury has returned a 13-count indictment charging David Rubel, 38, of Kenmore, NY, with production, receipt, and possession of child pornography, sexual enticement of a minor, and transfer of obscene material to a minor. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment and a previously filed complaint, a parent filed a report with the Town of Tonawanda Police Department, alleging that the defendant had been texting his daughter, who recently turned 16 years-old (Victim), and that some of the texts he observed were sexual in nature. The parent observed inappropriate images on his daughter’s cell phone within a text thread between the Victim and Rubel.
With the consent of the Victim’s father, a Town of Tonawanda Detective searched the cell phone and observed the text messages, some of which included sexual images. Investigators also searched the defendant’s cell phone and recovered sexual images, including two videos, that were also found on the Victim’s cell phone, within the string of text messages between Ruble and the Victim.
The defendant will be arraigned on the indictment on December 23, 2020, at 10:00 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the result of an investigation by the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Gang Member Sentenced to over 12 Years for Drug and Gun CrimesRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 12 1/2 years in prison for distributing crack cocaine and possessing a firearm in furtherance of his distribution of heroin.
According to court documents, Baron Thomas, 35, a member of the Rollin’ 20s gang, was engaged in the distribution of cocaine, cocaine base, heroin and marijuana in Hampton and elsewhere on the Virginia Peninsula. While Thomas was dealing these narcotics, he was frequently in possession of firearms. Thomas and his co-defendant, Julian Rashko, would also distribute heroin and other narcotics from Thomas’ residence in Hampton.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Brim Reaper. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to the federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principle mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Eric M. Hurt 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. 4:19-cr-80.
Government Contractor Admits Scheme to Inflate Costs on Federal Projects and Pays $11 Million to Resolve Criminal and Civil ProbesRead the Press Release
UPDATE
The SEBA Civil Settlement Agreement has been attached to this Press Release.
BURLINGTON – Schneider Electric Buildings Americas, Inc. (Schneider Electric), a nationwide provider of electricity solutions for buildings and data centers with its principal place of business in Carrollton, Texas, will pay $11 million to resolve criminal and civil investigations relating to kickbacks and overcharges on eight federally-funded energy savings performance contracts (ESPCs), the Department of Justice announced today. Under the contracts, Schneider Electric was to install a variety of energy saving upgrades such as solar panels, LED lighting, and insulation in federal buildings.
As part of the criminal resolution with the United States Attorney’s Office for the District of Vermont (USAOVT), Schneider Electric admitted that it fraudulently charged the Government nearly $1.7 million in design costs incurred on three ESPCs funded by the Department of the Navy (DON), General Services Administration (GSA), and Department of Agriculture (USDA) by disguising those costs and spreading them across un-related pricing components. Schneider Electric employees described this process as “burying” or “hiding” the costs. Schneider Electric specifically spread costs across various line items in these federal projects so that the agencies would pay the amounts without knowing they were design costs that Schneider Electric was prohibited from charging the Government. Schneider Electric admitted that its conduct constituted wire fraud in violation of 18 U.S.C. § 1343. Schneider Electric executed a non-prosecution agreement related to this conduct and agreed to pay nearly $1.7 million in criminal forfeiture.
Schneider Electric further admitted that former convicted Senior Project Manager Bhaskar Patel solicited and received over $2.5 million in kickbacks from various subcontractors who worked on ESPCs issued by the DON, Coast Guard, GSA, USDA, and Department of Veterans Affairs (VA). Schneider Electric admitted that this conduct violated the Anti-Kickback Act, 41 U.S.C. § 8707.
Schneider Electric is required by its agreement with the USAOVT to cooperate fully in any and all matters relating to relevant conduct for a period of three years, to report to the USAOVT any evidence or allegation of a violation of U.S. fraud, anti-corruption, procurement integrity, or anti-kickback laws, to implement and comply with an updated corporate compliance program, and to report annually to the USAOVT on remediation and implementation of its required compliance enhancements.
In the separate civil settlement announced today, Schneider Electric agreed to pay $9.3 million to resolve False Claims Act and Anti-Kickback Act liability for Patel’s kickback scheme and for including inflated estimates and improper costs in proposals, and overcharging federal agencies under the eight ESPCs.
“These cases are complex and challenging, and I commend the dogged work of our Assistant U.S. Attorneys and their law enforcement agency partners to ensure that Schneider Electric’s conduct was brought to light and that it was held to account,” said United States Attorney Christina E. Nolan. “I am proud that our small office not only successfully convicted Bhaskar Patel, but went further and unraveled Schneider Electric’s broader criminal scheme of fraudulently inflating costs to boost its profits and steal from taxpayers. In reaching this resolution, we considered that Schneider Electric terminated two employees involved in the schemes and overhauled its compliance program. We also considered the shortcomings of Schneider Electric’s cooperation and its failure to timely accept responsibility.”
“ESPC projects can only be successful where contractors are forthright and honest with federal agencies,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will not tolerate attempts by contractors to mislead the government and line their own pockets at the expense of the very energy savings the government seeks to achieve.”
Michael Wiest, Special Agent in Charge of the Northeast Field Office of the Naval Criminal Investigative Service concurred, stating: “Fraud is not a victimless crime. It steals money from American taxpayers, damages the integrity of the Department of the Navy procurement process, degrades the readiness of the warfighter by compromising the quality of goods and services used to protect the nation, and squanders more money in the funding of criminal investigations which could have been avoided simply by individuals doing the right thing. NCIS will continue to work with our partner agencies to aggressively pursue those who perpetrate financial crimes.”
Similarly, USDA Office of Inspector General (OIG) Special Agent in Charge Bethanne M. Dinkins emphasized: “Participation in Government contracts should not involve contractors and their employees seeking financial gain to the detriment of the U.S. Government. Thanks to the hard work and tireless efforts of the investigative team, the interests and integrity of the United States and the procurement process throughout Government have been protected. The USDA Office of Inspector General appreciates the commitment of the Department of Justice and the cooperative efforts of our law enforcement partners. Our resources are well utilized when we work together to investigate those who unlawfully solicit and accept bribes and kickbacks and overcharge the U.S. Government. This resolution demonstrates that we are committed to holding contractors accountable when they choose to abuse the integrity of vital government programs designed to significantly reduce energy and operating costs and make progress toward meeting federal sustainability goals.”
Joseph Dattoria, GSA-OIG Special Agent in Charge, likewise highlighted the significance of this investigation, stating: “The GSA Office of Inspector General is committed to protecting the integrity of the GSA’s procurement process and programs. This resolution is a testament to that commitment, and should serve as a warning to other contractors who may consider engaging in similar conduct. We appreciate the collaborative efforts of the DOJ and our other law enforcement partners."
Finally, VA OIG Special Agent in Charge Christopher Algieri, Northeast Field Office, affirmed: “VA OIG is committed to protecting the integrity of energy savings performance contracts awarded by VA and other federal agencies. We appreciate the tireless efforts of the United States Attorney’s Office, the Civil Division, and our other law enforcement partners in rooting out this and other procurement fraud.”
The criminal investigation and resolution was handled by Assistant United States Attorneys Owen C.J. Foster and Michael P. Drescher of the United States Attorney’s Office for the District of Vermont. The civil investigation was jointly handled by the District of Vermont and Trial Attorneys Kelley Hauser and Alexandra Wilson of the Civil Division’s Commercial Litigation Branch (Fraud Section). The investigation was supported by the Offices of Inspector General for the VA, USDA and GSA, and the Navy Criminal Investigative Services. Schneider Electric was represented by Mark Goodman and David Sarratt of Debevoise & Plimpton LLP, and Michael Connolly, Michael Koenig, and Victoria Lane of Hinkley, Allen & Snyder LLP.
Except for the conduct admitted in connection with the criminal resolution, the civil claims resolved by the settlement are allegations only, and there has been no determination of liability as to such civil claims.
Non Prosecution Agreement (Schneider).pdfCorporate Compliance Program (Schneider).pdf
Statement of Facts (Schneider).pdf
SEBA Civil Settlement Agreement.pdfFour Defendants Facing Federal Charges After Fire Bombings of Police Vehicles:Read the Press Release
LITTLE ROCK— A federal investigation resulted in charges against four people for their alleged involvement in fire bombings of police vehicles in Little Rock and North Little Rock in August 2020. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Bureau of Alcohol, Tobacco, Firearms, and Explosives New Orleans Field Division Special Agent in Charge Kurt Thielhorn announced today’s arrests of Brittany Dawn Jeffrey, 31; Emily Nowlin, 27; Renea Goddard, 22; and Aline Espinosa-Villegas, 24; all of Little Rock.
According to the Criminal Complaint filed on December 14, 2020, numerous incidents of vandalism occurred after protests were held at local police stations earlier this year. On August 25, 2020, a large group of protestors held a demonstration at the Little Rock Police Department 12th Street Substation. The following morning, officers arriving for duty noticed that several police vehicles in their parking lot had punctured tires. Officers also saw two green glass bottles with fluid inside that smelled like gasoline. The bottles were examined and found to be consistent with improvised incendiary devices, commonly referred to as Molotov cocktails.
The Complaint explains that a Molotov cocktail is typically made by using a container filled with an ignitable liquid and placing a wick in the opening of the container. If the Molotov cocktail functions as designed, the container will break, spreading ignitable liquid, which will be lit by the flaming wick.
According to the Complaint, surveillance footage reflected that two individuals were moving near the parking lot after the protests, and a flaming object can be observed being launched into the parking lot area. Cooperating witnesses stated that the Molotov cocktails were assembled at Brittany Dawn Jeffrey’s residence.
The Complaint states that on August 28, 2020, an Arkansas State Police vehicle was vandalized and burned while stored in a fenced parking lot at Arkansas State Police Headquarters in Little Rock. One vehicle had been set on fire, one had been vandalized with spray paint, and several others had punctured tires. Investigators discovered a detonated Molotov cocktail made from a bottle of brandy.
Surveillance video from that incident shows three people entering the vehicle storage area wearing dark clothing and backpacks. The video shows them bending down in a motion consistent with slashing vehicle tires as well as throwing a lighted object into a police vehicle. The Complaint states that witnesses informed law enforcement that Renea Goddard, Emily Nowlin, and Aline Espinosa-Villegas were responsible for the incident. Federal search warrants were executed to obtain the locations of their cell phones, and cell site data confirmed that their cell phones were in the location of Arkansas State Police Headquarters on August 28, 2020.
“Today’s arrests send a message that violence targeted toward law enforcement will not be tolerated,” stated U.S. Attorney Hiland. “Breaking into a police compound and fire bombing a police vehicle with a homemade explosive device is clearly not a peaceful protest. Those who would target law enforcement with violent acts will not do so in the Eastern District of Arkansas without the full resources of the federal government being deployed to assist our state and local partners in bringing those responsible to justice. They will be prosecuted to the fullest extent of the law.”
“We worked methodically on each of the scenes, collecting evidence, interviewing witnesses, and following leads to help us solve these cases,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “We were able to narrow in on particular individuals who we identified responsible for the law enforcement vehicle fires in the Little Rock area. We appreciate the assistance the public was able to provide in order to bring these individuals to justice.”
The charges in today’s unsealed Complaint include malicious destruction of property belonging to an entity receiving federal funding, conspiracy to commit those acts, and possession of a destructive device.
The defendants arrested today will appear before U.S. Magistrate Judge Joe J. Volpe at 4:00 p.m. this afternoon for their initial appearance. The investigation was conducted by ATF, Arkansas State Police, North Little Rock Police Department, and Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Stacy Williams.
A complaint contains only allegations. Defendants are presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
ComplaintFour Charged with Covid-19 FraudRead the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office made public a complaint against Celestine Coletta Strong, 44, of Phoenix, Arizona; Jawuan Polk, 35, of Portland, Oregon; Patrick Earl Lewis, 45, residence unknown; and Ty’zhaun Marqui Lewis, 23, of Phoenix, Arizona with charges including conspiracy, wire fraud, and money laundering in connection with fraudulent Paycheck Protection Program (PPP) loan applications.
“PPP loans have been essential to the survival of small businesses during the pandemic,” said United States Attorney Michael Bailey. “It is reprehensible that some people would choose to take advantage of the program to fraudulently fill their own pockets rather than leaving that money for those who truly need it.”
According to the complaint, Strong, Polk, P. Lewis and T. Lewis devised a scheme to fraudulently obtain loans from the CARES Act Paycheck Protection Program (PPP), a program designed to help small businesses meet their payroll obligations during the COVID-19 pandemic. According to the complaint, the four conspired to submit loan applications with falsified employee and wage information, fake bank statements, and other false information in an attempt to obtain 15 different loans totaling more than $3.5 million in loan proceeds. They fraudulently obtained approximately $450,000 in proceeds before the scheme was interrupted. Some of the proceeds were used to purchase a luxury Mercedes E400, which was also seized.
“Homeland Security Investigations (HSI) along with our government and private sector partners are committed to protecting the American public against those who willingly attempt to defraud the government for financial gain,” said Scott Brown, special agent in charge for the HSI Phoenix Office. “We will continue to use our broad legal authorities and longstanding partnerships to disrupt, investigate and bring to justice those who seek to exploit and benefit from the COVID-19 pandemic.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during these unprecedented times,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”
United States Attorney Michael Bailey and Arizona Attorney General Mark Brnovich launched the COVID-19 Fraud Task Force in April 2020, leveraging the resources and expertise of more than twenty different federal and state agencies to combat fraud schemes arising out of the COVID-19 pandemic. The investigation referenced above was conducted by Homeland Security Investigations with assistance from the Treasury Inspector General for Tax Administration and the Small Business Administration Office of the Inspector General. The prosecution is being handled by Assistant U.S. Attorney Kevin M. Rapp.
A conviction for wire fraud carries a maximum penalty of twenty years of imprisonment, a $250,000 fine, or both. A conviction for money laundering carries a maximum penalty of ten years of imprisonment, a $250,000 fine, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
ComplaintCASE NUMBERS: 2:20-mj-05300-DMF
RELEASE NUMBER: 2020-112_PPP Loan Fraud# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former United States Postal Service employee pleads guilty to stealing cash and gift cards from the mailRead the Press Release
ATLANTA – Former Postal employee Markeyta McAllister pleaded guilty to Obstruction of United States Mail for stealing cash and gift cards from more than 15 letters.
“While most U.S. Postal Service employees serve Americans with integrity and honesty – McAllister did not,” said U.S. Attorney Byung J. “BJay” Pak. “By opening peoples’ mail to steal money and gift cards, McAllister betrayed both the citizens she supposedly served and the reputation of her fellow employees.”
“The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination,” U.S. Postal Service Office of Inspector General Special Agent in Charge Imari R. Niles said. “Unfortunately, McAllister decided to betray the public’s trust and steal from postal customers. This plea demonstrates that USPS OIG special agents take these cases seriously, and that postal employees who steal mail are throwing away their careers and could end up in jail.”
According to U.S. Attorney Pak, the charges and other information presented in court: From July 7, 2014 to December 3, 2019, McAllister served as a mail-processing clerk assigned to sort mail deliverable to Duluth, Georgia at a postal facility in the Atlanta-metropolitan area. As a United States Postal Service employee, McAllister pledged to “preserve and protect the security of all mail in [her] custody from unauthorized opening, inspection, tampering, delay, reading of the contents or covers, or other unauthorized acts.” Furthermore, McAllister attested that she “fully underst[ood] that it is a crime, punishable by fine or imprisonment, or both, to knowingly or willfully obstruct or delay the mail, or to steal or attempt to steal mail of any kind.”
Despite swearing to preserve and protect the integrity of the United States postal system, McAllister effected a scheme to open mailed letters and to steal prepaid/gift cards and cash from within those letters. For example, from September to October 2019:
- McAllister stole a $200 prepaid Visa card from a letter addressed to a resident of Duluth, Georgia and on October 3, 2019, McAllister used the gift card;
- McAllister stole a $150 prepaid Visa card from a letter addressed to a resident of Duluth Georgia and McAllister used the gift card; and
- McAllister stole a $25 prepaid Visa card from a letter addressed to a resident of Duluth, Georgia and video surveillance footage depicts McAllister using the card at a Kroger Store in Jefferson, Georgia.
In total, as a U.S. Postal Service employee, McAllister stole cash and prepaid/gift cards from at least 15 letters in 2019.
On December 3, 2019, McAllister gave federal law enforcement officers a recorded statement where she admitted to stealing prepaid/gift cards from the mail.
From McAllister's vehicle, federal agents recovered: (a) two gift card sleeves, (b) three prepaid cards, (c) several store receipts for purchases made with prepaid/gift cards, and (d) two opened envelopes not addressed to McAllister.
On November 23, 2020, McAllister, 30, of Jefferson, Georgia, was charged via criminal information with Obstruction of U.S. Mail. McAllister pleaded guilty to that charge on December 17, 2020.
U.S. Postal Service – Office of Inspector General is investigating the case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- McAllister stole a $200 prepaid Visa card from a letter addressed to a resident of Duluth, Georgia and on October 3, 2019, McAllister used the gift card;
Former Nomura RMBS Trader Who Defrauded Customers is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL GRAMINS, 38, of North Carolina, was sentenced today by U.S. District Judge Robert N. Chatigny to two years of probation, the first six months of which Gramins must spend in home confinement, for defrauding mortgage-backed securities customers of Nomura Securities International, where he was employed. Judge Chatigny also ordered Gramins to perform 300 hours of community service.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to the evidence presented during his trial, Gramins was an Executive Director on the Residential Mortgage Backed Securities (“RMBS”) Desk at Nomura Securities International (“Nomura”) in New York where he principally oversaw Nomura’s trading of bonds composed of sub-prime and option ARM loans. Between 2009 and 2013, Gramins and others defrauded customers of Nomura by fraudulently inflating the purchase price at which Nomura could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Nomura could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices, causing Nomura to profit illegally. Gramins trained subordinates to lie to customers, provided them with the language to use in deceiving customers, and encouraged them to engage in the practice.
The victims of this scheme included hedge funds, insurance companies, and asset managers from Connecticut and elsewhere.
On June 15, 2017, a jury found Gramins guilty of one count of conspiracy to commit securities and wire fraud, and not guilty of one count of securities fraud and five counts of wire fraud. The jury could not reach a verdict as to one count of securities fraud and one count of wire fraud.
In a settlement announced by the U.S. Securities and Exchange Commission in July 2019, Nomura agreed to pay approximately $25 million in restitution to customers for its failure to adequately supervise traders in mortgage-backed securities, and an additional $1.5 million in penalties.
This matter has been investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Housing Finance Agency’s Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys David Novick and Heather Cherry.