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12 February 2021
Ponte Vedra Beach Radiology Technician Arrested and Charged with Distributing Child Sex Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today that George Thomas Griffiths, Jr. (41, Ponte Vedra Beach) has been arrested and charged by federal criminal complaint with distributing child pornography. Griffiths faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison, and a potential life term of supervised release. Griffiths was arrested on February 10, 2021, and is detained pending a hearing on February 12, 2021 at 11:00 a.m., in Jacksonville.
According to the
criminal complaint , an FBI task force officer in Wisconsin began an undercover investigation using a particular social media application (“app”) to identify individuals attempting to sexually exploit children using the internet. From February 3, 2020 through February 20, 2020, an individual user named “ban_me_again” uploaded several videos featuring children being sexually abused to a chat room on the app. Meanwhile, the St. Johns County Sheriff’s Office (SJSO) received information from the National Center for Missing and Exploited Children (NCMEC) that the same app had reported that the user (“ban_me_again”) had uploaded videos containing possible child-exploitative material during this same time period. Further investigation traced the internet protocol addresses used to distribute these videos to Griffiths’s residence in Ponte Vedra Beach, and to his place of employment in Jacksonville, where Griffiths worked as a radiology technician.On November 19, 2020, SJSO detectives, together with agents from Homeland Security Investigations, executed a search warrant at Griffiths’s residence and seized an Apple iPhone belonging to Griffiths. During an interview with law enforcement, Griffiths stated that he used this particular app to talk to people and that it was “possible” that he had exchanged pictures and videos on the app. An examination of Griffiths’s iPhone revealed that it contained at least 2,000 images, and at least 10 videos, depicting child sexual abuse. Many of these images and videos depicted infants, toddlers, and prepubescent children engaged in sexually explicit conduct.
A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.
This case was investigated by the St. Johns County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Man Charged with Sex Trafficking an Adult WomanRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of sex trafficking, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on February 11, 2021, named Anthony Juskowich, 22, as the sole defendant.
According to the Indictment, from in and around January 2020 to May 2020, Juskowich knowingly engaged in sex trafficking, using force, threats of force, fraud or coercion, on an adult female, known to the Grand Jury, to cause her to engage in commercial sex acts.
"Human trafficking is a crime that impacts every community in western Pennsylvania," said U.S. Attorney Brady. "My office will use every available resource to bring human traffickers to justice and to assist trafficking survivors."
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine not to exceed $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, with the assistance of the Pittsburgh Bureau of Police Narcotics Division, and the Moon Township Police Department conducted the investigation leading to the Indictment in this case.
This prosecution is part of Operation T.E.N. (Trafficking Ends Now). Operation T.E.N. serves as an umbrella coalition for law enforcement, community and non-profit partners in the 25 counties in the Western District of Pennsylvania. This coordinated effort aims to end human trafficking through education and improved cooperation, thereby enhancing the office’s ability to empower victims of human trafficking to become thriving survivors.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parmelee Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on February 8, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Jeni May Pearl Arcoren, age 33, was sentenced to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Arcoren was indicted by a federal grand jury on February 11, 2020. She pled guilty on November 24, 2020.
From 2015 through 2020, Arcoren conspired with others to distribute more than 500 grams of methamphetamine in South Dakota. She went on several trips to Colorado with co-conspirators and purchased methamphetamine, which was trafficked to South Dakota and distributed on the Rosebud Sioux Indian Reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Arcoren immediately remanded to the custody of the U.S. Marshals Service.
Owners of Foreign Currency Exchange Investment Company Indicted for $129 Million Wire Fraud and ConspiracyRead the Press Release
DENVER -- United States Attorney Jason R. Dunn announced that a federal grand jury has indicted Michael Shawn Stewart, 57, of Scottsdale, Arizona, and Bryant Edwin Sewall, 54, previously of Little Elm, Texas, charging them with fourteen counts of wire fraud and one count of conspiracy to commit wire fraud. Defendant Stewart made his initial appearance today in front of United States Magistrate Judge Kristen L. Mix. He remains out on bond. Defendant Sewall remains at large.
According to the indictment, from late 2015 through September 2019, Stewart, Sewall, and a third business partner owned and operated Mediatrix Capital for the purpose of soliciting investor funds for algorithm-based trading in foreign currency exchange (“FOREX”) markets. During the same time, Stewart, Sewall and the third business partner had majority ownership of, and operated, Blue Isle Markets for the purported purpose of acting as an intermediate broker between Mediatrix’s investors and its brokerage firm where the FOREX trading took place. From early 2016 through September 2019, Stewart and Sewall allegedly caused the third business partner to provide false and misleading information to investors and potential investors. From early 2016 through late 2018, Stewart and Sewall falsely represented that Mediatrix had a history of successful FOREX trading dating back to December 2013 with no months in which Mediatrix incurred net losses when, in fact, Mediatrix never traded prior to 2015 and its trading history included many months in which net losses were incurred. Mediatrix’s marketing materials falsely represented that Mediatrix’s FOREX trading program offered “100% Transparency” and “World Class Returns.” From March 2016 through September 2019, investors sent more than $129 million dollars to bank accounts held by Blue Isle and Mediatrix for the purpose of investing in algorithm-based FOREX trading. During that time, trade losses in excess of $32 million occurred, and Stewart, Sewall, and the third business partner spent more than $40 million on personal and business expenses.
Each count of wire fraud carries a maximum penalty of twenty years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment. The conspiracy count carries a maximum penalty of five years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
The Federal Bureau of Investigation conducted the investigation with assistance from the United States Marshals Service. Assistant United States Attorney Pegeen D. Rhyne is handling the prosecution. Assistant United States Attorneys Tonya S. Andrews and William Gillespie are handling the forfeiture.
The United States Attorney’s Office and the FBI would like to thank the United States Securities and Exchange Commission, which filed civil charges against Stewart, Sewall, and other defendants, for providing information in connection with this investigation.
Case number: 21-cr-00034-WJM
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Owner of Fake Georgia Charitable Organizations Charged with Tax FraudRead the Press Release
BOSTON – The owner of several bogus charitable organizations in Georgia was charged and has agreed to plead guilty to filing false tax returns.
Taressa Hightower, 60, of Grayson, Ga., was charged with two counts of filing false tax returns. A plea hearing has not yet been scheduled by the court.
According to court documents, Hightower ran two non-profit organizations that purported to serve underprivileged kids in the Atlanta, Ga. area. From approximately 2010 to 2015, Hightower received more than $650,000 in ostensible donations from a bank in Boston – where Palestine Ace, the wife of Hightower’s family member Jonathan Ace, worked. In reality, the monies Hightower was receiving as purported donations were the proceeds of a separate embezzlement scheme carried out by Palestine and Jonathan Ace. As a condition of receiving these “donations,” Hightower agreed to return approximately 25% to Palestine and Jonathan Ace as a secret kickback.
Rather than use the funds for charitable purposes, Hightower spent the majority on personal expenses unrelated to any charity work. For tax years 2013 and 2014, Hightower filed false personal and organizational tax returns in connection with the purported donations. Each year, Hightower reported significant amounts of non-existent and/or inflated business expenses, which ultimately lowered her personal tax liability.
In 2018, Palestine and Jonathan Ace were convicted of embezzlement and were sentenced to one years and two years in prison, respectively.
The charging statute provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge are based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nome Man Sentenced to 42 Months in Federal Prison for Federal Firearms OffenseRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Stephen Brooker Sherman, 36, of Nome has been sentenced U.S. District Court Judge Ralph R. Beistline for being a felon in possession of firearms and ammunition.
According to court documents, on January 5, 2020, a concerned citizen called Nome Police Department (NPD) and reported his neighbors were having a domestic dispute and multiple gunshots had been fired. A second citizen called NPD and reported shots fired in the same area. Police responded, and discovered Sherman intoxicated, sitting naked on a bed with a loaded Ruger SR22 .22 caliber handgun next to him and a Ruger P345 .22 caliber handgun on the floor. Police also located a Savage Model 62 .22 caliber rifle, 23 rounds of .308 ammunition, 83 rounds of .357 and .38 ammunition, 30 rounds of .22 ammunition and 371 rounds of .40 caliber ammunition in the residence. Sherman has prior felony convictions for criminally negligent homicide and assault and was on probation at the time of the offense. Based on his prior convictions, he was prohibited from possessing firearms.
Sherman was sentenced to 42 months in prison, followed by 3 years of supervised release. In imposing the sentence, Judge Beistline emphasized Sherman’s criminal history, the seriousness of the offense and the need to protect the public. A petition to revoke probation remains pending in state court.
The Nome Police Department (NPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. The case was prosecuted by Assistant U.S. Attorney Daniel Doty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 visit https://www.justice.gov/ag/about-project-guardian
New York City Man Charged with Threatening to Kill Current and Former Elected OfficialsRead the Press Release
Audrey Strauss, U.S. Attorney for the Southern District of New York, and New York Police Department Commissioner Dermot Shea, announced that RICKEY JOHNSON, a/k/a “Nigel Dawn Defarren,” was arrested last night based on a criminal Complaint filed in Manhattan federal court charging JOHNSON with making threatening interstate communications and threatening United States officials. JOHNSON allegedly posted public videos on Instagram in which he threatened to kill a United States Senator, a member of the United States House of Representatives, other current and former elected officials, and several cable news broadcasters. JOHNSON will be presented before United States Magistrate Gabriel W. Gorenstein in Manhattan federal court today.
Manhattan U.S. Attorney Audrey Strauss said: “Rickey Johnson allegedly threatened to kill several cable news broadcasters and current and former U.S. Senators and members of the House in rage-fueled posts on Instagram and in chilling private messages. Among the many great freedoms Americans enjoy is the right to engage in political discourse, and disagreements are natural and healthy; but when invective metastasizes into threats of harm or even death, law enforcement will act swiftly to bring the person responsible to justice.”
NYPD Commissioner Dermot Shea said: “Rickey Johnson, as alleged in this federal complaint, took aim at the foundations of our shared democracy and way of life, threatening not only elected United States officials but several working journalists. From the earliest stages of this investigation, the NYPD Intelligence Bureau and our partners in the United States Attorney’s Office in the Southern District of New York worked closely to make sure this individual would be brought to justice.”
As alleged in the Complaint unsealed in Manhattan federal court[1]:
On January 30, 2021, JOHNSON sent a private message to a cable news broadcaster that threatened, “you will all be held accountable . . . you will be killed.” JOHNSON’s message threatened by name two additional broadcasters. On February 3, 2021, JOHNSON posted public messages in which he stated that he intended to “kill” two of the same broadcasters.
On February 4, 2021, JOHNSON posted public messages threatening, among others, a United States Senator, a member of the United States House of Representatives, a former Speaker of the United States House of Representatives, and a governor. For example, JOHNSON declared that the Senator was “dead” and would be “executed,” that JOHNSON was “going to kill” the Representative, and that the governor “will be executed” and “will be killed.” In a public post directed principally at the former Speaker, JOHNSON stated: “I am going to kill you. I’m gonna kill all of you.”
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RICKEY JOHNSON, 47, of New York, New York, is charged with making threatening interstate communications, which carries a maximum sentence of five years’ imprisonment, and threatening United States officials, which carries a maximum sentence of ten years’ imprisonment. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the NYPD, the NYPD’s Intelligence Bureau, Leads Investigation Unit, and the NYPD’s 23rd Precinct Field Intelligence Team.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Andrew J. DeFilippis and Patrick R. Moroney are in charge of the prosecution.
The charge contained in the Complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
NDTX Round-Up: February 5 – 11Read the Press Release
GUILTY PLEA – EFREN BAUTISTA VARGAS
On February 9, Efren Bautista Vargas, 40, plead guilty to conspiracy to possess with the intent to distribute a controlled substance. In February 2020, DEA Agents began investigating a drug distribution and money laundering organization operating in Dallas and in Mexico. Agents learned that Vargas and other coconspirators were going to conduct a multiple kilogram transaction of methamphetamine. Based on the investigation, agents executed a search of Vargas’ apartment and seized a handgun, $23,640 in U.S. currency, and 209 pounds of methamphetamine. Vargas faces up to life in federal prison for his crimes. This case was investigated by the North Texas OCDETF Strike Force. Assistant U.S. Attorney Myria Boehm is prosecuting the case.
SENTENCING – GARY LYN BLACK aka “Godsmack”
On February 9, Gary Lyn Black, 62, was sentenced to 20 years in federal prison for possession with the intent to distribute a controlled substance. Black utilized his residence as a drug-involved premises for the purpose of distributing methamphetamine. Johnson County STOP Task Force executed a search warrant at the residence and seized 1.29 kilograms of methamphetamine, marijuana, pills, and a drug ledger. Black was also in possession of a shotgun and $9,735 which were proceeds from his drug trafficking. This case was investigated by the Johnson County STOP Task Force. Assistant U.S. Attorney Rebekah Ricketts prosecuted the case.
SENTENCING – AMIE DAWN SANMIGUEL
On February 9, Amie Dawn Sanmiguel, 47, was sentenced to 70 months in federal prison for possession with intent to distribute a controlled substance. On April 30, 2019, Sanmiguel distributed 55 grams methamphetamine to another individual. On another occasion, she distributed approximately 51 grams of methamphetamine to another individual. This case was investigated by the Texas Department of Public Safety and the Dallas Police Department. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
GUILTY PLEA – MARKEITH NINIKO CONWAY
On February 2, Markeith Niniko Conway, 30, plead guilty to possession of a controlled substance with intent to distribute. In July 2019, law enforcement executed a search warrant at a residence where Conway lived. Conaway was eating and fled to the back of the residence. During the search, law enforcement located approximately 44 small baggies of cocaine and two firearms. Conway faces up to 20 years in federal prison for his crimes. This case was investigated by the Texas Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney George Leal is prosecuting the case.
Mission Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 8, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Wayne Kills Enemy, III, age 29, was sentenced to 28 months in federal prison, followed by three years of supervised release, forfeiture of the firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kills Enemy was indicted by a federal grand jury on February 11, 2020. He pled guilty on November 23, 2020.
The conviction stemmed from an incident that occurred on November 4, 2019, in Mission. On that date, Rosebud Sioux Tribe Law Enforcement Services responded to a weapons call at Kills Enemy’s residence. Investigation revealed that Kills Enemy was in possession of an illegal short-barrel shotgun, and that he was addicted to, and an unlawful user of, methamphetamine.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Kills Enemy was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Voluntary Manslaughter was sentenced on February 8, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Nathan Blue Bird, Sr., age 38, was sentenced to 98 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution may also apply.
Blue Bird was indicted by a federal grand jury on June 11, 2020. He pled guilty on November 23, 2020.
The conviction stemmed from an incident that occurred in the early morning hours of May 30, 2020, in the South Antelope Community near Mission. On that date, Blue Bird got into a confrontation with the victim, an adult male, in the street near his residence. Blue Bird assaulted the victim with a metal baseball bat, repeatedly striking him in the head and face and inflicting fatal injuries.
The case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury and Aiding and Abetting.
Vance Taken Alive, age 29, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 9, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on June 14, 2019, in Corson County, Taken Alive and another man, assaulted an individual by repeatedly kicking him with shod feet, with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and Taken Alive is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Taken Alive was released on bond pending trial. A trial date has not been set.
Man from Albuquerque sentenced to four years in federal prison for firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Daniel Mitchem, 47, of Albuquerque, was sentenced in federal court in Albuquerque on Feb. 11 to four years and seven months in prison for being a felon in possession of a firearm and ammunition.
According to his plea agreement, on Feb. 8, 2020, in Albuquerque Mitchem approached an undercover law enforcement officer, who he believed to be a regular citizen, and displayed his firearm, which was secured in his waistband, while claiming to be a member of the Sheriff’s Department. After the undercover officer identified himself as law enforcement, Mitchem ran to his vehicle and fled the scene. Law enforcement arrested Mitchem shortly after as he attempted to dispose of the firearm.
Upon completion of his prison sentence, Mitchem will be subject to three-years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case
Justice Department Settles HIV Discrimination Claim with Surgical PracticeRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan and the United States Department of Health and Human Services have reached a settlement with Great Lakes Surgical Associates, a surgical practice with multiple locations in Michigan. The settlement agreement resolves allegations that the practice violated the Americans with Disabilities Act (“ADA”) as well as other federal civil rights laws when it refused to treat a patient because the patient was HIV-positive.
The ADA prohibits places of public accommodation, such as medical offices, from discriminating against individuals with disabilities. Denying an individual the opportunity to participate in or benefit from the services of a medical office is one form of discrimination prohibited by Title III of the ADA.
“Individuals living with HIV have a right to access medical treatment, and should not be discriminated against because of their medical condition. The Americans with Disabilities Act ensures such access by requiring doctors to make decisions based on an individual’s medical needs, not on stereotypes or assumptions. We appreciate Great Lakes Surgical Associates willingness to work with our office to resolve these allegations.” said Acting U.S. Attorney Saima S. Mohsin.
Under the settlement agreement, Great Lakes Surgical Associates has agreed to pay money damages to the patient and to revise its policies and train its staff to ensure compliance with the ADA.
For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, visit http://www.ada.gov/usao-agreements.htm, and for information concerning the DOJ’s ADA enforcement of discrimination on the basis of HIV/AIDS, visit https://www.ada.gov/hiv/ada_hiv_enforcement.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be submitted to the U.S. Attorney’s Office by email at [email protected], or by calling 313-226-9151.
Inmate Sentenced for Having Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. - United States Attorney Mike Stuart announced that Troy Covington, 20, an inmate at the Federal Correctional Institution (FCI) Beckley, was sentenced to 12 months in prison, to run consecutively to the sentence he currently is serving, for possessing a weapon at the facility. He also was sentenced to three years of supervised release following his imprisonment.
“For possessing a makeshift weapon in the prison, Covington added another year to his prison stay,” said United States Attorney Mike Stuart. “I commend the staff of the Federal Bureau of Prisons for their vigilant efforts to maintain a secure environment within correctional facilities.”
Covington admitted that on February 8, 2020, he possessed a handcrafted weapon, commonly referred to as a “shank,” while he was an inmate at the FCI Beckley. The “shank” was a four inch piece of plexiglass sharpened to a point on one end, with a handle made of tape on the other end. A staff member with the FCI Beckley found the shank concealed in a pair of shorts Covington was wearing. Covington admitted that the shank was designed and intended to be used as a weapon.
The case was investigated by the Federal Bureau of Prisons. United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00178.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 9 was:
Joshua Dean Fish, 27, of Helena, on charges of sexual exploitation of a child and receipt of child pornography. If convicted of the most serious crime, Fish faces 15 years to 40 years in prison, a $250,000 fine and five years to life of supervised release. Fish was detained pending further proceedings. The Homeland Security Investigations, FBI, Lewis and Clark County Sheriff’s Office, Internet Crimes Against Children Task Force and Gilbert (Arizona) Police Department investigated the case. PACER case reference. 21-1.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indianapolis man pleads guilty to hate crime and unlawful possession of a firearmRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Shepherd Hoehn, 51, of Indianapolis, Indiana, pleaded guilty in federal court to making threats to intimidate and interfere with his neighbor, who is black, because of the neighbor’s race and because the neighbor was exercising his right to fair housing, in violation of 42 U.S.C. § 3631. Hoehn also pleaded guilty to unlawfully possessing firearms, in violation of 18 U.S.C. § 922(g).
According to documents filed in connection with the plea, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to threaten, intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located.
“Hoehn’s hateful and threatening conduct, motivated by racial intolerance, is an egregious crime that will not be tolerated by the Justice Department,” said Principal Deputy Assistant Attorney General Pam Karlan of the Civil Rights Division. “Every person has a right to occupy, enjoy and feel safe in their homes, regardless of race, color or national origin. We will continue to protect the civil rights of all individuals and vigorously prosecute hate crime cases.”
“Threats and intimidation, condemnable at all times, are here made all the more reprehensible by Hoehn’s racial motivations,” said Acting United States Attorney John Childress. “The citizens of the Southern District of Indiana rightfully expect to be protected from such illegal conduct and expect that those who engage in it to be punished. The men and women of my office will meet those expectations.”
“It’s unimaginable that harassment and intimidation such as this based on race, sexual identity or religious beliefs, still exists in this day and age. Such incidents are intended to create fear and will not be tolerated by the FBI,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”
Hoehn’s sentencing date has not been set at this time. Hoehn faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the charged offenses.
This case was investigated by the FBI, with assistance from the Lawrence Police Department. Assistant United States Attorney Brad Shepard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division are prosecuting the case.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting the Civil Rights Reporting Portal located at civilrights.justice.gov. The form is fully accessible to people with disabilities and available in both English and Spanish. Individuals can still call the U.S. Attorney’s Office Civil Rights Coordinator, Jeffrey D. Preston, at 317-226-6333, or the Department of Justice Civil Rights Division in Washington D.C. at 855-856-1247 (toll free) or 202-514-3827.
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
Indiana Man Pleads Guilty to Hate Crime for Making Racially-Charged Motivated Threats Toward Black Neighbor and to Unlawful Possession of FirearmsRead the Press Release
The Justice Department announced today that Shepherd Hoehn, 51, pleaded guilty in federal court to making threats to intimidate and interfere with his neighbor, who is Black, because of the neighbor’s race and because the neighbor was exercising his right to fair housing, in violation of 42 U.S.C. § 3631. Hoehn also pleaded guilty to unlawfully possessing firearms, in violation of 18 U.S.C. § 922(g).
According to documents filed in connection with the plea, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to threaten, intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located.
“Hoehn’s hateful and threatening conduct, motivated by racial intolerance, is an egregious crime that will not be tolerated by the Justice Department,” said Principal Deputy Assistant Attorney General Pam Karlan of the Civil Rights Division. “Every person has a right to occupy, enjoy and feel safe in their homes, regardless of race, color or national origin. We will continue to protect the civil rights of all individuals and vigorously prosecute hate crime cases.”
“Threats and intimidation, condemnable at all times, are here made all the more reprehensible by Hoehn’s racial motivations,” said Acting U.S. Attorney John Childress. “The citizens of the Southern District of Indiana rightfully expect to be protected from such illegal conduct and expect that those who engage in it to be punished. The men and women of my office will meet those expectations.”
“It’s unimaginable that harassment and intimidation such as this based on race, sexual identity or religious beliefs still exists in this day and age. Such incidents are intended to create fear and will not be tolerated by the FBI,” said Special Agent in Charge Paul Keenan of the FBI Indianapolis Division. “The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”
Hoehn’s sentencing date has not been set at this time. Hoehn faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the charged offenses.
This case was investigated by the FBI, with assistance from the Lawrence Police Department. Assistant U.S. Attorney Brad Shepard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Justice Department’s Civil Rights Division are prosecuting the case.
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High Springs Man Sentenced to 15 Years in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
GAINESVILLE, FLORIDA – Torrey Tythoneus White of High Springs, Florida, has been sentenced to 15 years in federal prison after pleading guilty to numerous drug trafficking and firearm charges. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence, which was handed down on Monday.
“Drug trafficking is a blight on all our communities, and this case reflects how our communities can fight back through effective cooperation among local, state, and federal authorities,” U.S. Attorney Keefe said. “It sends a message to drug traffickers everywhere that we will find you, we will prosecute you, and we will punish you.”
White, a member of the Black Gangster Disciples street gang, was the leader of a drug-trafficking organization responsible for distributing crack cocaine in High Springs, Florida. On several occasions, White traded crack cocaine for firearms, and on one occasion traded crack cocaine for a set of body armor. Between January and March 2019, the FBI used a confidential source to make a series of controlled purchases of crack cocaine from White before executing a search warrant at his residence. The search led to the discovery of over $600 in cash, crack cocaine, and multiple firearms.
“A critical part of the FBI mission is to rid our communities of violent gangs and drug offenders who terrorize our neighborhoods,” said FBI Jacksonville Special Agent in Charge Rachel L. Rojas. “This case represents the epitome of law enforcement agencies working together to target violent gangs and dismantle drug-trafficking organizations and restore safety and security in our communities. Criminals should know that our work won’t stop here. The FBI remains fully committed to working side-by-side with our federal, state and local partners on the Safe Streets Task Force to collectively pursue violent gangs and their leadership wherever they may operate.”
White pled guilty to conspiracy to distribute 28 grams or more of crack cocaine, distribution of crack cocaine, possession with intent to distribute crack cocaine, maintaining a drug-involved premises, possession of a firearm in furtherance of a drug-trafficking offense, and two counts of possession of a firearm by a convicted felon, arising from separate incidents. White was sentenced to a total of 15 years in prison, followed by 8 years of supervised release.
The U.S. Attorney’s Office for the Northern District of Florida also prosecuted two lower-level drug traffickers working for White. Frank Rushing was sentenced on September 1, 2020, to 30 months in prison followed by 3 years of supervised release, and Carl White was sentenced on February 8, 2021, to 18 months in prison followed by 3 years of supervised release, with the first six months of release spent in a halfway house.
These sentences resulted from an investigation conducted by the FBI's Gainesville Resident Office Violent Gang Safe Streets Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Alachua County Sheriff's Office, the High Springs Police Department, and the Gainesville/Alachua County Drug Task Force.
An Organized Crime Drug Enforcement Task Force (OCDETF) operation led to the investigation and prosecution of these three defendants. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking. OCDETF is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional-level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to take down criminal organizations and seize assets.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. T. White SOF - U.S. v. T. WhiteHead of Daytona Beach Drug Conspiracy Pleads GuiltyRead the Press Release
Orlando, Florida – Matthew Zachariah Humphrey (26, Daytona Beach) has pleaded guilty to conspiracy to distribute controlled substances and possessing a firearm in furtherance of that offense. He faces a minimum penalty of 5 years, and up to 40 years, in federal prison for the drug conspiracy and an additional 5 years’ imprisonment for possessing the firearm in furtherance of the conspiracy offense. Humphrey’s sentencing hearing is scheduled for April 27, 2021.
According to court documents, Humphrey, his co-defendant Janee Reve Najee Kelly, and others worked together to distribute heroin, fentanyl, and cocaine in the Daytona Beach area. On June 17, 2020, Humphrey and Kelly were detained at the same time in an area of Daytona Beach. At the time of their arrests, Humphrey possessed cocaine, fentanyl, and a stolen, loaded firearm and Kelly possessed fentanyl and a firearm as well. The two conspirators collectively possessed more than 88 grams of fentanyl.
On December 8, 2020, Kelly pleaded guilty to conspiracy to distribute controlled substances, as well as possessing a firearm in furtherance of her offense. Her sentencing is scheduled for March 15, 2021. Humphrey will be sentenced on April 27, 2021.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, the Daytona Beach Police Department, and the Volusia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Grayson County Man Indicted for Producing Child PornographyRead the Press Release
SHERMAN, Texas – A Sherman, Texas man has been indicted on charges involving the sexual exploitation of children in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Brian Christopher Welch, 43, was arrested on Feb. 3, 2021, pursuant to a federal criminal complaint charging him with production and distribution of child pornography. Welch was indicted by a federal grand jury this week and formally charged with child pornography violations.
“This case shows that there is no one type of individual who preys on children. Child sexual predators come from all backgrounds, genders, races, and ethnicities – and they are often active members of their community,” said Acting U.S. Attorney Nicholas J. Ganjei. “Parents are urged to use caution in allowing any outsider, including friends and people in positions of trust, to have unsupervised access to their children. The Eastern District is proud of its robust partnership with federal and state law enforcement agencies, and is committed to utilizing all available resources, both nationally and internationally, to locate those individuals who use internet-based technologies to exploit children.”
According to court documents, between December 2016 and August 2020, Welch is alleged to have used digital devices to record a minor engaged in sexually explicit conduct. Additionally, Welch is charged with distributing child pornography to another person, and with transportation of child pornography, on Jan. 29, 2021.
If convicted, Welch faces a minimum of 15 years and up to 30 years in federal prison.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations and the Grayson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Former Mississippi Band of Choctaw Indian Official and Wife Plead Guilty to Money Laundering ConspiracyRead the Press Release
Jackson, Miss. – Kevin Edwards, 48, of Walnut Grove, a former member of the Tribal Council for the Mississippi Band of Choctaw Indians, and his wife, Sheena A. Edwards, 45, pled guilty yesterday to a Superseding Indictment charging them with money laundering conspiracy, announced Acting United States Attorney Darren LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
A superseding indictment returned by a federal grand jury on September 10, 2019, charges the former lawmaker and his wife with defrauding the Tribal government, as well as misleading a federally insured bank with intent to obtain loans.
Between March 2015 and June 2017, the husband and wife are alleged to have forged hotel bills and receipts, and to have submitted those documents to the Tribal government in claims for reimbursement for official business travel by Kevin Edwards. Edwards is a former Member of the Tribal Council who left office in June 2017. After receiving the unlawful payments from the tribal government, the two defendants cashed and transferred the payments to multiple bank accounts and paid off personal loans in the name of Sheena Edwards.
“As long as public corruption continues to be an issue in our state, I can promise you that the U.S. Attorney’s Office will be here to root it out, prosecute it, and ensure that justice is done. I want to personally thank the agencies involved for working with us to catch those who violate our corruption laws,” said Acting U.S. Attorney LaMarca.
Kevin Edwards and Sheena Edwards each entered a plea of guilty to one count of conspiracy to launder money, which carries a maximum penalty of twenty years imprisonment. Each defendant can also face a fine of up to $250,000 and up to three years of supervised release. Sentencing hearings for both Kevin Edwards and Sheena Edwards are set to take place before United States District Judge Henry T. Wingate on May 11, 2021, at the Thad Cochran U.S. Courthouse, in Jackson, Mississippi.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The Leake County Sheriff’s Office assisted with arrests. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Former Chief Operating Officer of Global Premier Soccer Charged in Visa Fraud SchemeRead the Press Release
BOSTON – The former Chief Operating Officer of Global Premier Soccer (GPS), a now defunct youth soccer organization formerly based in Waltham, Mass., was charged today in connection with a wide-ranging visa fraud conspiracy.
Justin Capell, 39, of Southborough, Mass., was charged and has agreed to plead guilty to conspiracy to commit visa fraud. A plea hearing has not yet been scheduled by the court.
According to court documents, from at least 2016 to October 2019, Capell conspired with other GPS executives and employees, and with GPS’s outside counsel, to defraud several federal agencies by submitting fraudulent visa petitions in order to secure work visas for hundreds of GPS employees.
Specifically, it is alleged that Capell and his co-conspirators arranged to file fraudulent visa petitions on behalf of at least seven professional soccer teams in order to secure visas for GPS’s foreign coaching staff. The petitions falsely stated that the beneficiaries would be working as scouts or assistant coaches for the professional teams when in reality they were employed only as youth soccer coaches by GPS. As part of the conspiracy, Capell and others submitted phony employment contracts between professional teams and the purported beneficiaries. It is also alleged that Capell and co-conspirators created fraudulent coaching licenses for the beneficiaries, which were included as part of the visa application packages. A second facet of the conspiracy involved the filing of fraudulent visa petitions for foreign workers who were scheduled to work for GPS affiliates in one part of the country, but who were sent to work in different parts of the United States.
In some instances, it is alleged that conspirators directed visa beneficiaries to mislead U.S. immigration officials – providing them with detailed instructions on how to answer questions during their visa interviews.
In May 2020, Gavin MacPhee, a former GPS employee, pleaded guilty to destroying records in connection with this investigation.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge are based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security Service, Boston Field Office made the announcement today. Valuable assistance was also provided by U.S. Citizenship and Immigration Services, Fraud Detection and National Security Unit in Vermont. HSI’s Document & Benefit Fraud Task Force, a specialized investigative group comprised of various local, state and federal agencies, conducted this investigation. Assistant U.S. Attorney Mackenzie A Queenin and Jordi de Llano, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Foreign currency trader sentenced for investment fraud schemeRead the Press Release
ATLANTA – Kevin Perry, who ran an investment fraud scam that began when he was a teenager and resulted in more than $430,000 in losses to investors, has been sentenced to three years and five months in federal prison.
“Perry’s fraud caused unsuspecting investors to lose their hard-earned money,” said Acting U.S. Attorney Kurt R. Erskine. “During this pandemic, many have lost jobs and businesses while criminals continued to prey on unsuspecting citizens. Perry’s brazen actions, which included his continued scamming after a complaint was filed ordering him to cease, landed him in prison.”
“Perry carelessly continued his fraudulent investments even after a civil complaint was filed against him, thinking he was untouchable”, said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hopefully, this sentence sends a message that the FBI will find criminals who greedily prey on investors, no matter how clever they believe their scheme to be.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Kevin Perry led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “FOREX”) market. Perry induced investors to send money by signing agreements that claimed the investors’ initial investments were secure from loss.
In actuality, Lucrative Pips was never registered as a commodity pool operator with the Commodity Futures Trading Commission (CFTC.) Also, Perry had never generated the historical returns represented to investors. Instead, he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.
Even after the CFTC filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors, which included falsely promising an undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month.
Kevin Perry, 23, of Cartersville, Georgia was sentenced to three years and five months in prison and three years of supervised release, and he was ordered to pay $438,799 in restitution and a special assessment of $100.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Nathan P. Kitchens, Chief of the Public Integrity and Special Matters Section, prosecuted the case. The Commodities and Futures Trading Commission provided invaluable assistance throughout the course of the investigation.
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.
Fifteen-year prison sentence imposed for drug dealerRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Thomas Lee Goliday, 49, of Indianapolis, Indiana, was sentenced to 15 years in federal prison by U.S. District Judge James P. Hanlon for Conspiracy to Distribute Heroin, Possession with Intent to Distribute Fentanyl, Possession with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Cocaine Base.
“The investigators from IMPD did a tremendous job investigating this case,” said Childress. “Another drug dealer is off the streets of Indianapolis, a firearm is out of the hands of a convicted felon, dangerous and illegal substances are removed from the community, and Goliday is being held accountable for his illegal behavior.”
In August of 2018, officers from the Indianapolis Metropolitan Police Department learned that an individual who was known as "Red" was distributing large quantities of heroin, cocaine, and cocaine base throughout the Indianapolis area. Through investigation, “Red” was identified as Thomas Goliday who resided in Indianapolis. Officers also learned that Goliday was on supervised release from a 2009 drug arrest in Tennessee for possession with the intent to distribute and conspiracy to distribute cocaine.
Officers obtained a search warrant for Goliday’s residence in late September 2018. That warrant was executed on the evening of September 27, 2018. During the execution of the warrant, Goliday returned to his residence as the search was occurring.
In the residence’s attached garage, officers found a loaded Glock 22, .40 caliber semi-automatic handgun, over 49 grams of fentanyl, over 42 grams of a fentanyl and cocaine mixture, over 10 grams of cocaine base, over 10 grams of methamphetamine, 6 Alprazolam 1mg schedule IV pills, and 8 Oxycodone pills.
Further investigation revealed that Goliday had been receiving and dealing two ounces of heroin a week for a year and that the loaded firearm found during the search was owned by Goliday.
This case was investigated by the Indianapolis Metropolitan Police Department and the Drug Enforcement Administration.
“Collaboration between federal, state, and local law enforcement with our community is key to reducing violence in Indianapolis, and we value our continued partnership with Acting U.S. Attorney Childress and the DEA that led to the removal of a violent individual, dangerous substances, and a firearm from our neighborhoods. The IMPD remains dedicated to building upon these partnerships to make Indianapolis a safer place for all to live, work, play, and visit,” said IMPD Assistant Chief Chris Bailey. “I appreciate the dedication of the IMPD detectives and DEA agents who worked on this investigation and the Assistant U.S. Attorney who worked to prosecute Mr. Goliday.”
DEA Assistant Special Agent in Charge Michael Gannon said, “The sentencing of Mr. Goliday was justice for the fine citizens of Indianapolis. Mr. Goliday, a convicted felon was responsible for distributing several addictive and destructive drugs, such as fentanyl, heroin, methamphetamine, and cocaine. The DEA Indianapolis District Office remains committed to keeping our communities safe by investigating and arresting drug traffickers like Mr. Goliday and taking their illegal firearms off the streets, The DEA appreciates the exceptional work by the Indianapolis Metropolitan Police Department and the United States Attorney’s Office, Southern District of Indiana.”
According to Assistant United States Attorney Michelle P. Brady, who prosecuted this case for the government, Goliday must also serve 10 years of supervised release following his imprisonment.
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 enduring commitment to investigating and prosecuting those who engage in the distribution of methamphetamine, heroin, opioids, and synthetic opioids. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Federal Gun and Drug Charges Filed Against Suburban Chicago ManRead the Press Release
CHICAGO — A suburban Chicago man has been arrested for allegedly illegally possessing a loaded handgun and dealing crack cocaine.
LARRY DENNIS, 36, of Markham, is charged with one count of possession of a controlled substance with intent to distribute, and one count of illegal possession of a firearm as a previously convicted felon, according to a criminal complaint unsealed Thursday in U.S. District Court in Chicago. The complaint alleges that Dennis on three occasions last month sold suspected crack cocaine to an individual who, unbeknownst to Dennis, was cooperating with law enforcement. Dennis also illegally possessed the loaded handgun in his residence on Jan. 20, 2021, the complaint states. Dennis had previously been convicted of multiple state felonies, including robbery and firearm offenses, and was not lawfully allowed to possess a gun.
Dennis was arrested Thursday on the federal charges. He appeared today before U.S. Magistrate Judge Jeffrey T. Gilbert and was ordered to remain detained in federal custody.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen DeTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Daniel Delaney, Chief of the Midlothian Police Department. Valuable assistance in the investigation was provided by the Markham Police Department, Dolton Police Department, and Orland Park Police Department. The government is represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The drug charge is punishable by a maximum sentence of 20 years in federal prison, while the firearm count carries a maximum sentence of ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Erie Felon Charged with Illegal Gun PossessionRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Elias Dominique Raggs, 27, as the sole defendant.
According to the Indictment presented to the court, on or January 12, 2021, Raggs possessed a firearm while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Man Charged with Marijuana Trafficking and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of Firearms by a Prohibited Person.
Luke Eagleman, III, age 40, was indicted on December 8, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 9, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $1,000,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2007, and September 1, 2020, Eagleman knowingly and intentionally conspired with others to distribute marijuana in South Dakota. Further, on September 1, 2020, in Eagle Butte, Eagleman possessed 905 grams of marijuana with the intent to distribute it, as well as a rifle and a handgun. Eagleman has a prior felony conviction and is prohibited from possessing firearms.
The charges are merely accusations and Eagleman is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 Cheyenne River Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron Cook is prosecuting the case.
Eagleman was released on bond pending trial. A trial date has not been set.
Durable medical equipment company owner sentenced to federal prison for bribery conspiracyRead the Press Release
SAVANNAH, GA: A Florida man who operated a durable medical equipment company has been sentenced to federal prison for participating in a commercial bribery conspiracy that involved a health care program.
Patrick Wolfe, 48, of Belleair Beach, Fla., the operator of Wilmington Island Medical Inc., which does business as WI Medical Inc., was sentenced to 24 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to one count of Conspiracy, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Wolfe also is ordered to pay $549,476.17 in restitution, and after completion of his prison term must serve three years of supervised release.
There is no parole in the federal system.
“After ripping off taxpayer-provided health care benefits to fuel his own greed, Patrick Wolfe had the audacity to flaunt his ill-gotten gains by fueling up and driving around in a Maserati,” said Acting U.S. Attorney Estes. “A stint behind bars will put the brakes on this conspiracy.”
In pleading guilty to Conspiracy, Wolfe admitted paying kickbacks in return for “leads,” which were in actuality signed orders from physicians and nurse practitioners, and then billing those orders to a Medicare Advantage plan using WI Medical.
The financial total for orders facilitated through this scheme is alleged to be in the millions of dollars. Medicare beneficiaries were located in the Southern District of Georgia and elsewhere.
“This sentence will hold Wolfe accountable for the damage he caused to Medicare and every taxpayer in this country,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Government-subsidized programs like Medicare help protect the healthcare needs of deserving Americans, and the FBI is determined to stop people like Wolfe from illegally profiting off of them.”
“This sentence is a warning to those who enrich themselves through fraud scams at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of Inspector General. “Working closely with our law enforcement partners, we will continue to crack down on such schemes, which waste taxpayer funds designed to care for vulnerable patients.”
“Our nation’s healthcare system cannot tolerate kickbacks to physicians and pharmacies while criminals line their pockets with taxpayer-funded healthcare dollars, particularly in light of our nation’s current struggles with the COVID-19 pandemic,” said Savannah Resident Agent in Charge Glen M. Kessler, U.S. Secret Service. “Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies.”
The Southern District of Georgia has now charged 31 individuals and companies as part of the nationwide crackdown on fraudulent genetic testing, and prescribing of orthotic braces and pain creams, identifying more than $1.5 billion in losses to Medicare and Medicaid for defendants charged int the Southern District alone.
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, particularly during the COVID-19 pandemic, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, including COVID-19 fraud, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. Acting U.S. Attorney Estes acclaimed the hard work of the investigatory team, led by FBI - Savannah, the Department of Health and Human Services Office of Inspector General, and the United States Secret Service.
Assistant U.S. Attorney Jonathan A. Porter prosecuted the case on behalf of the United States.
Drumright Man Pleads Guilty to Stealing More Than $400,000 from an Illinois Oil and Gas CompanyRead the Press Release
A Drumright man today admitted in federal court that he stole $401, 146 worth of funds and oil and gas products from his former employer, announced U.S. Attorney Trent Shores.
David Owen West, 59, pleaded guilty to two counts of mail fraud and one count of money laundering before U.S. District Judge Claire V. Eagan. The sentencing hearing was set for May 13, 2021.
“David West was a trusted employee for close to 30 years at Petco Petroleum. He violated that trust by engaging in schemes to defraud his employer as West helped himself to more than $400,000 of the company’s money,” said U.S. Attorney Trent Shores. “This prosecution exemplifies this office’s resolve to hold responsible individuals who profit from criminal deceit and embezzlement. Thanks to the work of white-collar prosecutor Charles McLoughlin, IRS-Criminal Investigation and the FBI, West is now a convicted felon.”
West carried out two schemes against Petco Petroleum, an Illinois oil and gas company where he was employed for nearly 30 years. In one scheme, West produced and submitted to Petco Petroleum fraudulent invoices for services that were never rendered, totaling $129,038, which his employer paid in full and West pocketed. In a second scheme, West hired trucks to haul oil stolen from his employer’s oil leases to a reclaimer who then paid him $266,802 for the oil. Then West charged Petco Petroleum for the transport costs of their own stolen oil.
As field supervisor and oilfield pumper working in Oklahoma for Petco Petroleum (Petco), West checked wells to ensure they were properly functioning and to gauge oil production as well as selected vendors from which the company would purchase products or services needed to operate the wells. In order to be paid by Petco, vendors submitted invoices and documentation for goods or services provided to the company for West’s review and approval. West then mailed the approved invoices to Petco each month to be included in the company’s monthly accounts payable run.
In early 2015, West acquired a property in Drumright, Oklahoma, and on Oct. 27, 2015, legally registered Flash Electric Services, LLC, using the address in Drumright, with the Oklahoma Secretary of State. Flash was used as part of West’s scheme to defraud his employer. From September 2015 to December 2016, West included 116 fraudulent invoices from Flash, totaling $129,038.00, in the monthly documents mailed to Petco for alleged electrical services that were never performed on the company’s Oklahoma oil wells. Based on these invoices, Petco mailed 15 separate checks via the U.S. Mail to Flash in Drumright to pay for the alleged services. All payments from Petco to Flash were subsequently deposited into bank accounts which West controlled.
In addition to the Flash false invoice scheme, West arranged for approximately 50 loads of Petco’s oil to be transported by Lightning Tank Truck and Independent Trucking to U.S. Oil Reclaimers, Inc. West sold and had delivered approximately $266,802 worth of stolen oil to the reclaimer. West directed the company to issue payment to either himself or Flash Services and personally picked up the checks. He then forwarded to his employer invoices for payment from both trucking companies for the cost of the transportation of the stolen Petco oil, totaling $5,306. After West approved the trucking invoices to be paid, Petco issued and mailed checks to both trucking companies.
IRS-Criminal Investigation led the investigation with assistance from the FBI. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.
Doctor Pleads Guilty to Not Paying Employment TaxesRead the Press Release
A doctor, formerly of Great Falls, Virginia, pleaded guilty today to willful failure to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
According to court documents, from 2011 through 2018, Arshad Pervez Cheema owned and operated Walk-In Medical Center PC, a medical practice located in Falls Church and Herndon, Virginia. Cheema was responsible for collecting and paying to the IRS payroll taxes, which consisted of Social Security, Medicare, and income taxes that had been withheld from his employees’ wages, as well as an employer portion. Over a four-year period from 2012 to 2016, Cheema willfully did not pay over $500,000 in payroll taxes. Instead, he used some of the withheld funds for other business ventures, including to open and run a restaurant in Washington, D.C. In addition, Cheema did not pay corporate taxes for Walk-In Medical Center PC, nor did he pay employment taxes for another doctor’s office, Falls Church Family Care PC, which he operated. In total, Cheema did not pay over $2 million in employment and corporate taxes.
U.S. District Judge Anthony J. Trenga scheduled sentencing for June 23, 2021. At sentencing, Cheema faces a maximum sentence of five years’ imprisonment. Cheema also faces a period of supervised release, restitution, and a fine.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Parekh commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Casey S. Smith and Assistant U.S. Attorney Russell L. Carlberg, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Doctor Pleads Guilty to Not Paying Employment TaxesRead the Press Release
ALEXANDRIA, Va. – A doctor, formerly of Great Falls, Virginia, pleaded guilty today to willful failure to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting United States Attorney Raj Parekh for the Eastern District of Virginia.
According to court documents, from 2011 through 2018, Arshad Pervez Cheema owned and operated Walk-In Medical Center, PC, a medical practice located in Falls Church and Herndon, Virginia. Cheema was responsible for collecting and paying to the IRS payroll taxes, which consisted of Social Security, Medicare, and income taxes that had been withheld from his employees’ wages, as well as an employer portion. Over a four-year period from 2012 to 2016, Cheema willfully did not pay over $500,000 in payroll taxes. Instead, he used some of the withheld funds for other business ventures, including to open and run a restaurant in Washington, D.C. In addition, Cheema did not pay corporate taxes for Walk-In Medical Center, PC, nor did he pay employment taxes for another doctor’s office, Falls Church Family Care PC, which he operated. In total, Cheema did not pay over $2 million in employment and corporate taxes.
U.S. District Judge Anthony J. Trenga scheduled sentencing for June 23, 2021. At sentencing, Cheema faces a maximum sentence of five years’ imprisonment. Cheema also faces a period of supervised release, restitution, and a fine.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Parekh commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Casey S. Smith and Assistant U.S. Attorney Russell L. Carlberg, who are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-13.
Dark web drug dealer sentenced to four years in prison for shipping heroin and meth across the countryRead the Press Release
Seattle – A 52-year-old Everett, Washington, man was sentenced today in U.S. District Court in Seattle to four years in prison and four years of supervised release, announced U.S. Attorney Brian T. Moran. TODD A. PETERMAN-DISHION pleaded guilty in December 2019 to conspiracy to distribute controlled substances. At the sentencing hearing, U.S. District Judge Robert S. Lasnik noted the overdose deaths across the country, saying the defendant “didn’t know what happened when he shipped drugs via mail… he didn’t know if the customer was 16 or 14.”
“This defendant was busily sending packages of powerful and deadly drugs out into our communities as often as twice a day,” said U.S. Attorney Moran. “He posted on the dark web that his drugs were powerful and potentially deadly, but even with that knowledge he had no hesitation sending them to addicts he knew only by their screen name and address.”
According to records filed in the case, the investigation revealed that in 2018, and until June 2019, PETERMAN-DISHION was shipping heroin and methamphetamine to customers across the country. PETERMAN-DISHION posted on the dark web about the drugs he had for sale: black tar heroin and crystal methamphetamine. He posted about the drugs’ purity and noted they were “not for beginners.” He made more than 1,650 drug sales.
When law enforcement executed a Court-authorized search warrant at the long‑stay hotel where PETERMAN-DISHION and his wife were living, they found heroin that was intended for sale to his dark web customers.
The case was investigated by the U.S. Postal Inspection Service and the FBI.
The case was prosecuted by Assistant United States Attorney Thomas Woods.
Coon Rapids Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced on Thursday, February 11, 2021, to more than 8 years in federal prison.
Brandon Embrey, 38, from Coon Rapids, Iowa, received the prison term after a September 20, 2020, guilty plea to receiving child pornography
At the plea hearing, Embrey admitted that from September 2018 through April 2019, he received and possessed over 600 images of child pornography. Embrey utilized the Internet, Google Drive and Google Photos to receive and possess visual depictions of minors engaged in sexually explicit conduct, including depictions involving prepubescent minors or minors whom had not attained 12 years of age. Over 600 images of child pornography were found in Embrey’s online accounts. Embrey also admitted to being a user of methamphetamine.
Embrey was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Embrey was sentenced to 97 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Embrey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Iowa ICAC Task Force, the Iowa Division of Criminal Investigation, and the Coon Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3001. Follow us on Twitter @USAO_NDIA.
Follow us on Twitter @USAO_NDIA.
Convicted Murderer Sentenced to 18 More Months for Conspiring to Launder Drug Trafficking Proceeds while in PrisonRead the Press Release
PITTSBURGH – Richard Bracey was sentenced to 18 months in prison for conspiring to launder drug-trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Bracey, age 44, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that the prison sentence be served consecutively to the federal prison sentence Bracey was serving for first-degree murder at the time of the crime. Judge Ranjan also directed that Bracey serve one year of supervised release following his prison sentence.
Bracey was incarcerated at USP-Lee in Virginia when he conspired to launder the proceeds of the distribution of Schedule I synthetic cannabinoid controlled substances. Such substances have caused severe illness and deaths throughout the United States in recent years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Convicted Felon Who Possessed Multiple Firearms Sentenced to Seven Years in PrisonRead the Press Release
A man who possessed handguns and an assault rifle was sentenced today to seven years in federal prison.
Choroin Devontea Smith, age 24, from Waterloo, Iowa, received the prison term after an August 27, 2020 guilty plea to being a felon in possession of firearms and ammunition.
In a plea agreement, Smith admitted that, on January 26, 2020, police officers were conducting routine patrol in Waterloo, Iowa. At approximately 1:30 a.m., officers observed Smith and another man seated in a parked car in downtown Waterloo. After surveilling the car, an officer approached it to talk to Smith. During the conversation, the officer observed a gun holster in the front of the car in the space between the passenger and driver’s seat. An additional officer arrived and as he approached the vehicle from the driver’s side, he observed a semi-automatic Romarm/Cugir 7.62x39 rifle in the backseat of the vehicle. Officers eventually also seized a loaded Smith and Wesson 9mm pistol and a loaded Taurus .45 caliber pistol from the passenger’s seat
Smith was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Smith was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Waterloo Police Department and the Bureau of Alcohol Tobacco and Firearms. For more information about Project Guardian, please see /media/1122011/dl?inline.
Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2020.
Follow us on Twitter @USAO_NDIA.
Colorado Couple Sentenced to Federal Prison for Operating Prostitution RingRead the Press Release
DENVER -- United States Attorney Jason R. Dunn announced federal prison sentences for a couple that operated an interstate prostitution ring out of the Denver Tech Center. Defendant Teresita Rodriguez, 40, of Fort Collins, Colorado, was sentenced to 15 months in federal prison. Co-defendant Jeramy Caron, 44, also of Fort Collins, was sentenced to 30 months in federal prison. Defendants Rodriguez and Caron were sentenced as a result of their guilty pleas to one count of conspiracy to facilitate prostitution, two counts of facilitating prostitution, and three counts of transporting an individual to engage in prostitution. Defendant Caron also pleaded guilty to two counts of money laundering. Both defendants’ sentences will be followed by five-year terms of supervised release. Caron was ordered to pay an assessment to a victims’ fund of $15,000. Both defendants are also forfeiting more than $390,000 in funds, two vehicles, 20 watches, and are subject to a money judgment in the amount of $700,000, because the defendants stipulated that their conspiracy earned at least $700,000.
According to facts contained in plea agreements, Rodriguez and Caron operated a prostitution ring in the Denver Tech Center from at least June 25, 2018, to March 10, 2020, at which time the enterprise was dismantled by the Federal Bureau of Investigation and task force officers. The enterprise recruited adult women from states such as Arizona, California, Florida, Illinois, Louisiana, and Utah to travel to Denver in order to provide high-end escort services that included commercial sex acts. Rodriguez and Caron paid to advertise the escort services online with provocative photographs of the women. Rodriguez and Caron then purchased airline tickets for women to visit for week-long stays, rented hotel rooms, and picked up cash proceeds following the sexual encounters. The advertising and travel costs were subtracted from the women’s profits, and Rodriguez and Caron kept half of the proceeds.
When messaging with buyers, Rodriguez and Caron typically pretended to be the prostitute because they did not want customers to understand that they were dealing with an agency and wanted customers to believe instead that the prostitutes were independent. In reality, Rodriguez and Caron kept an appointment book and arranged for the women to perform an average of approximately eight commercial sex acts per day.
“This prostitution ring operated for years, victimizing dozens of women,” said U.S. Attorney Jason Dunn. “With some good investigative and legal work, we were able to stop it. Protecting vulnerable people and holding predators accountable are core parts of our mission and we are pleased that these two are headed to prison for their crimes.”
“The FBI and our law enforcement partners have a great responsibility to protect our vulnerable community members from the abhorrent behaviors of human traffickers such as Teresita Rodriguez and Jeremy Caron," said Denver FBI Special Agent in Charge Michael Schneider. “We are grateful for our collaborative partnerships with the Arapahoe County Sheriff’s Office, the IRS-Criminal Investigation Division, and the U.S. Attorney’s Office in this case as we continue our work to fight human trafficking.”
“The sentencing of Jeramy Caron and Teresita Rodriguez for their roles in this criminal enterprise will make our community a safer place,” said Andy Tsui, Special Agent in Charge of IRS-Criminal Investigation’s Denver Field Office. “The special agents of IRS-Criminal Investigation will continue to work with our law enforcement partners to disrupt these criminal organizations and deprive them of their ill-gotten gains. We will be relentless in our mission to dismantle these organizations and bring the criminals to justice.”
Chief United States District Judge Philip Brimmer announced the sentence for Caron on January 14, 2021, and for Rodriguez on February 5, 2021.
The investigation in this case was conducted by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force and IRS-CI, with assistance from the Arapahoe County Sheriff’s Office. Assistant United States Attorneys Emily Treaster and Patricia Davies handled the prosecution. Assistant United States Attorney Elizabeth Young handled the forfeiture.
Case number: 20-cr-000084
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Cleveland man sentenced to 30 years for selling heroin fentanyl mixture that caused fatal overdoseRead the Press Release
Acting United States Attorney Bridget M. Brennan announced today that Kadeem Davis, 31, of Cleveland, was sentenced to 30 years imprisonment by U.S. District Court Judge Sara Lioi. Davis was found guilty after a trial by jury of one count of distribution of fentanyl and heroin, with a sentencing enhancement alleging the sale resulted in death, two counts of use of a communication facility in furtherance of drug trafficking and one count of possession of fentanyl and heroin with intent to distribute.
“Thousands of lives have been lost and an untold amount of pain and suffering has been endured by friends and families in this District and throughout the country as a result of the opioid epidemic,” said Acting U.S. Attorney Bridget M. Brennan. “Drug dealers who exploit the vulnerabilities that addiction creates should be prepared to serve lengthy prison sentences.”
According to an affidavit in this case, on August 21, 2018, Lakewood police were called to respond to a residence for a report of a male who had overdosed. Police and paramedics found the victim at the scene, unconscious and shallowly breathing. Paramedics administered Narcan, and the victim was transported to the hospital, where he later died.
Police began an investigation into this incident and recovered suspected heroin and a cell phone in the victim’s room. The suspected heroin later tested positive as a mixture of heroin and fentanyl. Police examined the victim’s cell phone and located a text message conversation indicative of the victim reaching out to a contact labeled as “Dopeman.” The context of the conversation indicated that ‘Dopeman” had met with the victim and sold him the heroin and fentanyl mixture.
On August 22, police sent a message to “Dopeman” posing as the victim in order to attempt to obtain more narcotics. Police, acting as the victim, requested the same “heroin” as the day before and arranged a meeting at a local Burger King. After confirming that Davis was, in fact, “Dopeman”, he was arrested by police.
Davis was found to be in possession of the cell phone that “Dopeman” was using and a plastic bag containing a purple powder similar to the substance found in the victim’s room. The substance later tested positive for a mixture of heroin and fentanyl. A search warrant was subsequently obtained for Davis’s cell phone records, and he was found to be in close proximity to the victim on the same day and around the same time of the overdose.
This case was investigated by the Lakewood Police Department. It was prosecuted by Assistant U.S. Attorneys Kevin P. Pierce and Segev Phillips.
Chandler Man Sentenced to over 6 Years for Sexual Abuse of a MinorRead the Press Release
PHOENIX, Ariz. – On Tuesday, Joshua James Terry, 27, of Chandler, Arizona, was sentenced by U.S. District Judge Dominic W. Lanza to 78 months in prison, followed by lifetime supervised release. Terry will also be required to register as a sex offender.
Between October 1 and November 30, 2018, Terry, who was a monitor on the victim’s school bus and a physical education teacher’s aide at the victim’s school, sexually abused the minor victim. Terry previously pleaded guilty to Sexual Abuse of a Minor on September 25, 2020. Terry is an enrolled member of the Gila River Indian Community.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-01417-PHX-DWL
RELEASE NUMBER: 2021-006_Terry###
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.Belgrade man admits trafficking cocaineRead the Press Release
MISSOULA — A Belgrade man today admitted trafficking cocaine after the U.S. Postal Inspection Service intercepted a package containing six and one-half pounds of cocaine that was mailed to his former address, Acting U.S. Attorney Leif Johnson said.
Luis Alberto Rocha, 38, pleaded guilty to conspiracy to distribute cocaine. Rocha faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for June 10. Rocha was detained.
The prosecution said in court documents that in September 2019, the Missouri River Drug Task Force in Bozeman received information from a confidential source that Rocha was involved in distributing drugs.
In April 2020, the U.S. Postal Inspection Service noticed packages scheduled for delivery to Rocha’s residence in Belgrade and his former residence in Bozeman, which he rented to several employees of his construction company. The inspector learned that five packages had been sent to Rocha’s residence from California since July 2019, six packages had been sent from Texas, and three packages had been sent from Arizona.
On July 16, 2020, the inspector searched a package addressed to Rocha pursuant to a federal warrant. The package, heat-sealed in plastic wrapping, contained U. S. currency and had “27K” written on the wrapping. The agents returned the money to the parcel and delivered it in the normal course. Two days later, another package was sent to Rocha’s residence from an address in Nebraska. That package, also searched pursuant to a warrant, contained $62,000 in U.S. currency. Rocha personally picked up the package from the Belgrade post office.
On August 17, 2020, another package was sent to Rocha’s former address in Bozeman. Pursuant to a warrant, the package was searched and found to contain 2,981 grams of cocaine, which is about six and one-half pounds. The delivery of the package was delayed due to the ongoing investigation, and agents learned someone checked on the status of the package more than 300 times from an IP address that is registered to Rocha.
Assistant U.S. Attorney Tim Racicot is prosecuting the case, which was investigated by the FBI, Missouri River Drug Task Force and U.S. Postal Inspection Service.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Auto Dealership Finance Manager Sentenced for Wire and Bank FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 32 months in jail, ordered to pay over $1.6 million in restitution and a $1,000 fine on his conviction of bank and wire fraud conspiracy, United States Attorney Scott W. Brady announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Chad Bednarksi, 49.
According to information presented to the court, Chad Bednarski, as the finance manager of Lakeside Chevrolet, engaged in the following illegal activity between January 2015 and January 2019 that caused a financial loss of more than $1.5 million:
- Bednarski falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates, and;
- Bednarski deliberately did not inform S&T Bank when Lakeside Chevrolet sold a vehicle that the dealership had purchased utilizing S&T Bank’s floor plan financing in order to delay and attempt to avoid the dealerships’ required payment to S&T Bank for the sold vehicles which had been purchased using S&T Bank’s floor plan financing.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Bednarski.
Assistant Commissioner of NYC Probation Department Indicted for Child Pornography OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Costello, 53, of Bethlehem, PA, was arrested and charged by Indictment with three counts of receipt of child pornography, one count of access with intent to view child pornography, and one count of possession of child pornography. The defendant made his initial appearance in federal court this afternoon and will remain in custody until a detention hearing on February 17, 2021.
As alleged in the Indictment, Costello received sexually explicit images of children over the Internet and possessed thousands of sexually explicit images and videos of children on several electronic devices that he kept and stored at his residence. During the time he is charged to have committed these crimes, Costello was employed as Assistant Commissioner of the New York City Department of Probation.
“The defendant allegedly possessed and viewed visual depictions of the sexual exploitation of children,” said Acting U.S. Attorney Williams. “He is charged with doing this while employed as an Assistant Commissioner with the City of New York, a position of public trust paid by taxpayer dollars. Our Office will continue to work with our law enforcement partners in all jurisdictions to investigate and prosecute child sexual exploitation offenses.”
“The defendant, an Assistant Commissioner of New York City’s probation department, violated his position of trust by allegedly possessing images of children being sexually exploited,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Safeguarding children from being victimized by predators is a top priority for Homeland Security Investigations. The indictment of the defendant should serve as notice that HSI and our law enforcement partners will use every resource at our disposal to investigate and arrest depraved individuals who commit sexual offenses against children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
If convicted, the defendant faces a maximum possible sentence of 90 years’ incarceration with a five year mandatory minimum sentence of imprisonment, five years up to a lifetime of supervised release, and up to a $1,250,000 fine.
The case was investigated by the Department of Homeland Security Investigations and Bethlehem Township Police Department, and is being prosecuted by Assistant United States Attorneys Francis A. Weber and Kelly Harrell, and Department of Justice Trial Attorney Jessica Urban of the Child Exploitation and Obscenity Section (CEOS).
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
11 February 2021
Woman First in the Nation Charged with Misappropriating Monies Designed for COVID Medical Provider ReliefRead the Press Release
A Michigan woman was indicted on allegations that she intentionally misappropriated government funds that were designed to aid medical providers in the treatment of patients suffering from COVID-19 and used them for her own personal expenses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Saima Mohsin of the Eastern District of Michigan, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Chicago Region and Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office made the announcement.
Amina Abbas, of Taylor, was charged by indictment Wednesday in the Eastern District of Michigan with embezzlement of government property.
This indictment includes the first criminal charges for the intentional misuse of funds intended to provide relief to health care providers and maintain the access to medical care during the pandemic, money set aside to help Americans get needed medical care in a global health and economic crisis.
The indictment alleges that Abbas previously owned 1 on 1 Home Health (1 on 1), which she had closed in early 2020 after Medicare issued an overpayment demand for $1,619,967.08 because 1 on 1 had submitted claims for patients who did not qualify for home health services. According to the indictment, 1 on 1, which was never operational during the pandemic, received approximately $37,656.95 designated for the medical treatment and care of COVID-19 patients. Abbas then allegedly misappropriated the funds by issuing checks to her family members for personal use.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. 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 Provider Relief Fund, moneys that were provided to medical provers that must be used for the medical providers’ coronavirus response.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by HHS-OIG and the FBI. Trial Attorney Emily Gurskis of the Criminal Division’s Fraud Section is 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 Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Wilmington Gang Leader Receives 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Tymir “Dolla” Wigfall, 27, of New Hanover County, was sentenced yesterday to 120 months imprisonment for: (1) Conspiracy to Possess with Intent to Distribute and Distribution of a quantity of Heroin and Fentanyl; (2) Distribution of Fentanyl and Carfentanil (two counts); (3) Distribution of a quantity of Heroin and Fentanyl; (4) Distribution of a quantity of Fentanyl; (5) Distribution of a Quantity of Fentanyl (aiding and abetting); (6) Employing, Hiring Using, Persuading Enticing or Coercing a Person Under Age 18 to Distribute Fentanyl; and (7) Distribution of quantity of Fentanyl and Heroin (aiding and abetting).
The evidence presented in court revealed that, between November 2019 and May 19, 2020, the Wilmington Police Department made seven controlled purchases of fentanyl, carfentanil (an analogue of fentanyl) and heroin from Wigfall.
According to law enforcement, Wigfall was a leader of a violent street gang and used his status to encourage others to take part in criminal conduct. For example, on March 10, 2020, the Wilmington Police Department arranged a controlled purchase of heroin from Wigfall. Wigfall provided a juvenile with the heroin and directed the juvenile to make the sale. Thereafter, on March 18, 2020, Wigfall again used the same juvenile to complete the sale of a mixture of fentanyl and carfentanil. On March 19, 2020, Wigfall employed a different juvenile to complete a sale of fentanyl and heroin. On that occasion, the juvenile appeared to have a firearm in his waistband during the exchange.
Wigfall’s prior felony convictions include: Possession of a Firearm with an Altered Serial Number (2010); Possession of Heroin (2010); Sale of Heroin and Possession with Intent to Deliver Heroin Within 1000 Feet of a School (2014); and, Interfering with an Electronic Monitoring Devise (2017). While in the North Carolina Department of Correction for these offenses, Wigfall was cited for numerous infractions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation and the Wilmington Police Department investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00005-M.
Westmoreland County Woman Pleads Guilty to Pandemic Unemployment Benefits FraudRead the Press Release
PITTSBURGH, PA- A resident of Arnold, Pennsylvania, pleaded guilty today to a charge of fraud, United States Attorney Scott W. Brady announced today.
Tracy Ann Stankiewicz, age 49, pleaded guilty to one count before Senior U.S. District Judge David S. Cercone.
In connection with the guilty plea, the Court was advised that from June 6, 2020 and continuing thereafter until July 12, 2020, Stankiewicz committed fraud in connection with emergency benefits.
On March 13, 2020, the President of the United States declared the ongoing COVID-19 pandemic to be an emergency under Section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Act. Subsequently, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) Program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. The CARES Act also provided an emergency increase in unemployment compensation benefits of $600.00 per week.
According to information provided to the Court, on June 6, 2020, an application for PUA was electronically filed in the name of an inmate at State Correctional Institution-Greene. In the application, the filer (who was later determined to be Tracy Stankiewicz) represented that she was the inmate, and that the inmate was unemployed as a direct result of the pandemic, and that the inmate could accept a job if one were offered. Ms. Stankiewicz admitted to law enforcement authorities that she received approximately $11,000.00 as a result of her crime.
Judge Cercone scheduled sentencing for June 10, 2021 at 11:30 a.m. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The United States Secret Service and the Office of Inspector General – U.S. Department of Labor conducted the investigation leading to the Indictment in this case.
West Seneca Man Arrested on Child Pornography Charges and Attempting to Destroy EvidenceRead 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 Shawn Johnson, 33, of West Seneca, NY, was arrested and charged by complaint with possession of child pornography and destruction of evidence. The charges carry a maximum penalty of 40 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the complaint, in September 2019, investigators discovered an IP address, traced to the defendant, requesting suspected child pornography files on a peer to peer sharing network. On December 2, 2019, the FBI obtained a search warrant for Johnson’s Angle Road residence. As investigators entered the residence, they heard loud noises coming from the second floor. They encountered the defendant standing in his bedroom with a laptop computer in his hands, smashing it against the wall trying to damage it. The laptop, which sustained serious damage, was sent to the FBI's Digital Forensics Analysis Unit Laboratory for repair. Approximately 80% of the data, which included numerous images and videos of child pornography, was recovered.
The defendant will make an initial appearance at 12:00 p.m. today before U.S. Magistrate Judge Michael J. Roemer.
The complaint is the result of an investigation by the by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
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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United States Attorney Robert J. Higdon, Jr. Offers His ResignationRead the Press Release
RALEIGH, N.C. – In response to President Biden’s request that all Presidentially appointed United States Attorneys step down, United States Attorney Robert J. Higdon, Jr., submitted his letter of resignation to the President today with an effective date of midnight on February 28, 2021. He expressed his honor to serve as United States Attorney and his gratitude to former President Trump and Senators Burr and Tillis for their support and for giving him an opportunity to serve the people of this District. A copy of Mr. Higdon's letter is attached.
United States Attorney Matthew D. Krueger Announces ResignationRead the Press Release
United States Attorney Matthew D. Krueger announced that he will resign from his position as the chief law enforcement officer for the Eastern District of Wisconsin on February 20, 2021. After his departure, Krueger plans to join a private law firm. Richard G. Frohling, who has served as the First Assistant U.S. Attorney during Krueger’s tenure, will become the Acting U.S. Attorney.
"Serving as United States Attorney has been the greatest privilege of my professional life,” said U.S. Attorney Krueger. “In the past three years, we faced unprecedented challenges, including the longest government shutdown in history, a global pandemic, and turbulent civil unrest. The dedicated professionals in the U.S. Attorney’s Office, together with our selfless federal, tribal, state, and law enforcement partners, met each challenge with grit, integrity, and an unwavering commitment to justice. I could not be more grateful or proud to have worked alongside such talented and committed public servants.”
The Eastern District of Wisconsin comprises 28 counties with a population of approximately 3.3 million people. The United States Attorney’s Office (“the Office”), with locations in Milwaukee and Green Bay, has over 80 employees, including attorneys and support staff. The Office and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
“U.S. Attorney Krueger has been a true partner in our joint law enforcement mission of keeping the citizens of Wisconsin safe,” said FBI Special Agent in Charge Robert Hughes. “We wish him the best of luck in all of his future endeavors.”
“United States Attorney Krueger has always represented the citizens of the Eastern District of Wisconsin with poise and professionalism,” complimented ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “His dedication to ensuring the safety of the communities he served was always his first priority, and I wish him continued success in his future endeavors.”
“Matt Krueger has honorably served as United States Attorney for the Eastern District of Wisconsin, tirelessly working to protect communities from the effects of drug trafficking and drug-related violence,” said Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration, Chicago Division. “His office effectively prosecuted violent drug trafficking crimes, while ensuring equity in all matters and fairness to all people. Matt’s steadfast leadership and partnership will be missed.”
“On behalf of the United States Marshals Service, I would like to express our sincere gratitude to U.S. Attorney Matthew Krueger,” said United States Marshal Anna Ruzinski. “Matt placed himself at the forefront of the fight against violent crime in the City of Milwaukee and throughout the Eastern District of Wisconsin.”
“As soon as Matt Krueger took office, he began tremendous efforts to build and nurture the relationships our Wisconsin law enforcement community now enjoys with the U.S. Attorney’s Office,” said Brian O’Keefe, Administrator, Wisconsin Department of Justice, Division of Criminal Investigation. “I can honestly say I have never seen a stronger partnership between law enforcement in our state and the U.S. Attorney’s Offices than we have seen in the last three years, in both the Eastern and Western Districts.”
Under Krueger’s leadership, the U.S. Attorney’s Office brought numerous impactful prosecutions, recovered over $85 million dollars in criminal and civil cases, and defended the federal government’s interests vigorously in litigation. The Office hired dozens of new staff, increased diversity within the Office, and added prosecutors in Green Bay to better serve the district’s northern counties. In multiple areas, the Office had significant achievements:
National Security & Cyber Crime. Under U.S. Attorney Krueger’s leadership, the Office pursued DOJ’s top priority of national security. The Office obtained the first international terrorism convictions in the district’s history (U.S. v. Jason Ludke et al.; U.S. v. Waheba Dais). The Office confronted the growing threat of cyber crime, successfully prosecuting individuals such as Marcus Hutchins, who created banking malware that affected victims worldwide. The Office also secured the conviction of Resit Tavin, a Turkish businessman, for smuggling Wisconsin-made marine products to Iran for use in the Iranian navy. Building on DOJ’s China Initiative, Krueger worked with the FBI to initiate outreach to businesses at risk of economic espionage.
Public Corruption. The Office brought important cases to protect government integrity under U.S. Attorney Krueger’s tenure. These included convictions of a corporation and six individuals—including an accountant whose trial Krueger handled personally-- for a wide-ranging scheme to illegally obtain over $260 million in federal contracts that were set aside for minority-owned and disabled veteran-owned small businesses (U.S. v. Ganos). The Office also successfully prosecuted Nicole Doxator, a Milwaukee County employee, for diverting public funds; Willie Wade, a former Milwaukee alderman, for a fraud scheme in which he purported to sell access to a current alderman; and John LaFave, the Milwaukee County Register of Deeds for a scheme to subvert the County’s procurement rules.
Healthcare Fraud. Given the $1.2 trillion in annual federal healthcare spending, U.S. Attorney Krueger prioritized healthcare fraud enforcement. He created a dedicated team of prosecutors to pursue healthcare fraud using civil and criminal enforcement tools. The Office also improved its use of data analytics to identify indicia of fraud. As a result, the Office increased its healthcare fraud cases, including a settlement with Aurora Health Care, Inc. for improper payments to physicians, a settlement with Walgreens Co. for improper prescription drug claims, and multiple cases of illegal kickback schemes (U.S. v. Center for Pain Management, S.C.; U.S. v. Advanced Pain Management; U.S. v. David Guerrero).
Financial Fraud. The Office also successfully prosecuted a range of fraud that victimized the private sector, including a $9 million “green energy” investment scheme (U.S. v. Ronald Van Den Heuvel), and a $30 million scheme involving financing of luxury vehicles (U.S. v. Albert Golant). The Office placed particular emphasis crimes that targeted vulnerable victims such the elderly (U.S. v. Edward Matthes; U.S. v. Chris Kubiak; U.S. v. James Nickels).
Violent Crime & Gangs. The Office continued its commitment to reduce violent crime throughout the district, in urban, rural, and tribal areas. Upon becoming U.S. Attorney, Krueger established a Violent Crime Team with prosecutors focused on armed robberies, firearms offenses, and violent gangs. Through initiatives like Project Safe Neighborhoods, Project Guardian, and Operation Legend, substantial enforcement and prevention resources came to Milwaukee and other cities suffering from spikes in violent crime. These included resources for crime victims, focused deterrence programs, and prisoner reentry programs to prevent further violent crime.
Combatting the Drug Epidemic. U.S. Attorney Krueger led multifaceted efforts to confront the ongoing drug crisis. Krueger established an Opioid Task Force that sent warning letters to outlier opioid prescribers and brought enforcement actions in the most egregious cases (U.S. v. Steven Kotsonis; Mehran Heydarpour civil settlement; U.S. v. Lisa Hofschulz). With partners, the Office launched a public awareness campaign and hosted two statewide Opioid and Meth Summits that brought together over 600 treatment, prevention, and enforcement professionals. In multiple cases, the Office brought charges to take down largescale drug-trafficking organizations with ties to Puerto Rico and Mexico, as well as traffickers on the dark web.
Civil Rights. Under U.S. Attorney Krueger’s leadership, the Office continued DOJ’s proud legacy of protecting civil rights. With the rise of extremist ideologies, the Office charged Chadwick Grubbs for threatening the Jewish Community Center and Yousef Barasneh for vandalizing a synagogue. The Office continued its long-standing practices of reviewing law enforcement officers’ use of force. The Office actively enforced the Americans with Disabilities Act, obtaining agreements from businesses to provide accommodations and restitution to victims. The Office conducted outreach to raise awareness about racial and national origin discrimination in housing; hate crimes; sexual harassment in housing; voting rights; and illegal burdens on religious freedom.
Human Trafficking & Child Exploitation. U.S. Attorney Krueger reinforced the Office’s commitment to combatting human trafficking and child exploitation. The Office ranked among the nation’s busiest in charging sex trafficking, forced labor, and child pornography offenses. The Office also helped lead an interagency human trafficking task force, contributed to trainings throughout the district, and co-sponsored a statewide conference to build capacity among law enforcement and service providers.
Defending the United States in Civil Litigation. The Office also continued to vigorously defend federal agencies and officials in a wide range of civil litigation. U.S. Attorney Krueger increased the Civil Division’s personnel, enhancing the Office’s ability to advance the government’s interests and protect taxpayers’ funds.
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After being recommended by Senator Ron Johnson and Senator Tammy Baldwin, U.S. Attorney Krueger was nominated by President Trump, confirmed by the Senate unanimously, and sworn into office on February 22, 2018.
Before taking office, U.S. Attorney Krueger served nearly five years as an Assistant U.S. Attorney prosecuting both civil and criminal violations involving healthcare fraud, procurement fraud, tax fraud, bank fraud, securities fraud, and violent crime. He previously practiced complex trial and appellate litigation with an international law firm in Washington, DC.
U.S. Attorney Krueger began his legal career as a law clerk for the Honorable Paul V. Niemeyer on the U.S. Court of Appeals for the Fourth Circuit. He then served as a Bristow Fellow in the U.S. Department of Justice, Office of the Solicitor General. Krueger received his B.S. from the University of Wisconsin-Madison with honors and received his J.D. summa cum laude from the University of Minnesota Law School where he served as Editor-in-Chief of the Minnesota Law Review.
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Mr. Frohling first joined the Office as an Assistant U.S. Attorney in July 2000. He has served as First Assistant U.S. Attorney since November 2015. He has been a supervisor in the Office for over 16 years, previously serving as Criminal Chief and Deputy Criminal Chief. Mr. Frohling began his legal career as a law clerk to the Honorable Terence Evans of the U.S. Court of Appeals for the Seventh Circuit, and then practiced civil litigation in a private law firm.
“The Office will be in steady hands. Rick Frohling is a consummate professional and has been a trusted advisor throughout my tenure,” said U.S. Attorney Krueger.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
Union County Man Admits $1.6 Million Tax Evasion SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who owned and operated contracting businesses in Essex County, New Jersey, today admitted filing false tax returns that failed to report all his personal and corporate income, Acting U.S. Attorney Rachael A. Honig announced.
Olger Fallas, 49, of Union, the owner and operator of Olger Fallas Painting (OFP) and Olger Fallas Properties (OFPROP) pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with two counts of tax evasion.
According to documents filed in this case and statements made in court:
Fallas admitted that between 2013 and 2017 he owned OFP and OFPROP. He admitted that he attempted to hide personal and corporate income from the IRS by using a check cashing business to cash customer payments, which he did not report to the IRS. Fallas also admitted that he deposited hundreds of thousands of dollars in customer payments into bank accounts that were not associated with his companies. Fallas admitted that he evaded paying approximately $1.7 million in personal and corporate income taxes during the scheme.
The counts of tax evasion each carry a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 22, 2021.
Acting U.S. Attorney Honig credited agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jamel Semper, Chief of the Organized Crime and Gangs Unit in Newark.
U.S. Attorney’s Office Honors 14 Individuals for Outstanding Contributions to Public Safety in 2020Read the Press Release
Harrisburg –Acting U.S. Attorney Bruce D. Brandler recently honored 14 members of law enforcement for their outstanding contributions to public safety in 2020. These awards are made each year to a select group of individuals who perform in an exceptional manner and who make significant contributions to our Office’s efforts to promote public safety.
The following individuals received the United States Attorney’s Award For Distinguished Service for their exceptional work in significant criminal prosecutions:
- ATF Special Agent Jamie Markovchick
- Weatherly Police Department Sgt. Michael Bogart
These two awards recognized the recipients work in U.S. v. Robert Torner, et. al., a significant drug and firearm case where the defendants received lengthy periods of incarceration after a 13-day trial that involved over 20 witnesses and approximately 200 exhibits.
- FBI Special Agent Alan Jones
- FBI Task Force Officer George Carado
- FBI Task Force Officer Chris Keppel
These three awards recognize the recipients work in two cases. U.S. v. Rhashean Strange, et. al., and U.S. v. Anibal Rodriguez, et. al. The Strange case was a multi-defendant heroin trafficking conspiracy that involved distributing multi-kilogram quantities of heroin. The Rodriguez case was a multi-defendant methamphetamine trafficking conspiracy, whose members were particularly violent. All the defendants received lengthy terms of imprisonment.
- Deputy U.S. Marshal (Anonymous)
- Deputy U.S. Marshal Robert Lenahan
- FBI Special Agent Alan Jones
- U.S. Secret Service Special Agent Michael Armstrong
These four awards recognized the recipients for their work in U.S. v. Shawn Christy, a case dealing with an armed and dangerous fugitive who was ultimately sentenced to 20 years in prison.
- FBI Special Agent Joseph F. Noone
This award recognized Special Agent Noone’s exceptional work spearheading public corruption investigations in Northeastern Pennsylvania for more than a decade. Agent Noone has achieved spectacular results in helping to obtain over thirty public corruption convictions during his tenure.
- Luzerne County Detective Charles J. Balogh
- Luzerne County Detective Lieutenant Daniel G. Yursha
These two awards recognized the recipients for their exemplary work in U.S. v. Mark Icker, a sexual assault case involving a police officer who assaulted females in custody. The defendant received a 15-year term of imprisonment.
Two individuals received the United States Attorney’s Award For Outstanding Contributions to Cooperative Law Enforcement:
- Bureau of Prisons Supervisory Attorney Jonathan Kerr
This award recognized Mr. Kerr’s exemplary work in the production of documentary evidence for prisoner litigation during the COVID-19 Pandemic. Attorney Kerr’s immediate response to requests for medical, disciplinary, and other records on an expedited basis was of invaluable assistance to the U.S. Attorney’s Office in responding to the hundreds of inmate requests for release.
- Pike County District Attorney Raymond J. Tonkin
This award recognized District Attorney Tonkin’s exceptional work in cooperative law enforcement activities over many years. District Attorney Tonkin vigorously works to maintain a strong working relationship with federal, state, county and local law enforcement to investigate and prosecute criminals who pose a danger to the citizens of Pike County, Pennsylvania.
“As we see in the newspapers every day, and most recently in the tragic events that occurred in Florida, law enforcement officers put their lives at risk every time they put on their uniforms,” said Acting U.S. Attorney Brandler. “All too often their tremendous sacrifices go unnoticed and unrecognized. I am therefore very pleased to recognize a few of these heroes who contributed so much to promoting public safety in 2020. On behalf of the entire U.S. Attorney’s Office, I congratulate them and thank them for their service.”
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U.S. Attorney Wrigley Announces the Arrest of a Williston Man for Possession of Child PornographyRead the Press Release
BISMARCK - United States Attorney Drew Wrigley announced that a federal grand jury has indicted Damien Breding, age 45 of Williston, ND, for Receipt and Possession of Images Depicting the Sexual Exploitation of a Minor.
The Indictment was unsealed today, alleging that between August 2019 and April 2020, Breding was discovered communicating with a person who was, and had been, traveling to locations in Africa to engage in sexual acts and contacts with a minor. As the investigation continued, it was discovered that Breding was in possession of images depicting the sexual exploitation of a minor and had been communicating with a minor with whom he had received images depicting the minor engaging in sexual conduct.
Breding has entered not guilty plea to matters alleged in the Indictment and a trial has been scheduled for April 19, 2021. Breding has a prior conviction and as a result of the conviction, Breding could receive a 10 year minimum to 40 year maximum federal prison sentence.
"Sexual predators exploit technology to victimize children, and often share the photographic evidence of their heinous crimes," said United States Attorney Drew Wrigley, "these allegations will be pursued vigorously so that justice can be secured for these victims."
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Williston Police Department, North Dakota Bureau of Criminal Investigation, and the Department of Homeland Security Investigation and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Gary Delorme assigned to the case.
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