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Tuesday 15 December 2020
Federal Judge Sentences Chicago Man to More Than Eight Years in Prison for Illegally Possessing Loaded Gun on City StreetRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than eight years in federal prison for illegally possessing a loaded semi-automatic handgun in the city’s North Lawndale neighborhood.
MARKELL THOMAS, 35, illegally possessed the firearm in the 1300 block of South Spaulding Avenue on the morning of Feb. 5, 2019. Chicago Police officers observed Thomas holding the gun and attempted to arrest him, but he fled in a vehicle. During the pursuit, Thomas tossed the gun out of the car. He later exited the vehicle and was arrested in the 2900 block of West Arthington Street, approximately one mile from where the chase began. Police recovered the handgun along a sidewalk in the 3100 block of West Fillmore Street.
As a four-time convicted felon, Thomas was not legally allowed to possess a firearm.
Thomas pleaded guilty in July to one count of illegal possession of a firearm. In a plea agreement, Thomas admitted that he also illegally possessed a rifle on Sept. 29, 2018, at a gun range in Lombard, Ill.
U.S. District Judge Robert W. Gettleman on Tuesday imposed a 100-month prison sentence.
The sentence was 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 David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance.
“Defendant’s actions on that cold February day put at risk not only his own well-being but also the safety and well-being of the officers who pursued him, as well as dozens of other citizens of the Northern District,” Assistant U.S. Attorney Aaron R. Bond argued in the government’s sentencing memorandum. “Such actions by defendant demonstrate a complete lack of respect for not only the law but also the community around him, especially the law-abiding citizens who must continually deal with the plague and despair that illegal firearms bring to their streets, schools, friends, family, and neighbors.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Grand Jury Indicts Two Buffalo Men on Cocaine Conspiracy ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Juan Padua, 33, and Michael Vasquez, 24, both of Buffalo, NY, with narcotics conspiracy and attempting to possess with intent to distribute 500 grams or more of cocaine. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the indictment and a previously filed complaint, the U.S. Postal Inspection Service (USPIS) intercepted a U.S. Postal Service Priority Express Mail parcel shipped from Puerto Rico and addressed to an apartment in which defendant Padua resided. The box was turned over the Buffalo Office of the Drug Enforcement Administration.
On July 22, 2020, investigators executed a federal search warrant on the box, which contained toys, coloring books, paper plates, napkins, and a Nickelodeon slime box. The slime box, which was wrapped in red wrapping paper with multi-colored stars and Spanish writing, contained a large, white, brick-like substance that was comprised of a loosely packed white powder. Field tests indicated the presence of both cocaine and fentanyl.
On July 23, 2020, a transmitting device was installed in the parcel and a controlled delivery was conducted. A short time later, investigators received a tone indicating that the parcel was opened. Investigators then executed a search warrant at the apartment in which Padua resided. The parcel was found in the rafters in the attic. Additional search efforts led to the recovery of the USPIS transmitting device, which was broken and recovered from the roof top of the rear porch at the premises. The defendants were taken into custody.
The defendants were arraigned before U.S. Magistrate Judge Michael J. Roemer. Defendant Padua was detained; defendant Vasquez was released on conditions.
The indictment is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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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Fall River Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – A Fall River woman was sentenced today in federal court for stealing Social Security disability benefits.
Gloria Camara, 58, was sentenced by U.S. District Court Judge Indira Talwani to time served and three years of supervised release, with the first five months to be served on home confinement. She also was ordered to pay restitution to the Social Security Administration (SSA) in the amount of $84,222. In August 2020, Camara pleaded guilty to one count of theft of public funds and one count of making a false statement.
Camara began receiving Social Security disability benefits in 1992. In November 2009, she began working as a caregiver, but she did not report her income to the SSA. Instead, during periodic eligibility reviews, including a review on April 20, 2017, Camara falsely told Social Security that her only income consisted of three months of unemployment compensation benefits in 2008, and sporadic wages from two companies between 2003 and 2011. Because she did not report her earnings as a caregiver, Camara stole approximately $84,222 in Social Security benefits from November 2009 through October 2019.
United States Attorney Andrew E. Lelling and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Espan͂ola man pleads guilty to embezzlement and theft from the Pueblo of San IldefonsoRead the Press Release
ALBUQUERQUE, N.M. – Thomas McIntosh, 33, of Española, New Mexico, pleaded guilty in federal court in Albuquerque on Dec. 10 to embezzlement and theft from Indian tribal organization.
According to his plea agreement, McIntosh admitted he worked at the Totavi Station on the San Ildefonso Pueblo San Ildefonso Pueblo where his responsibilities included administration of New Mexico State Lottery sales. Between Mar. 19 and April 4, McIntosh intentionally and unlawfully accessed lottery tickets in order to determine the winning tickets, purchased them, and attempted to claim the winnings for himself. McIntosh also admitted he intentionally altered business records and continued to embezzle winnings from cash registers and the New Mexico State Lottery.
McIntosh faces up to one year in prison. His plea agreement calls for restitution, a mandatory fine, and probation.
The Albuquerque office of the Bureau of Indian Affairs (BIA) investigated this case. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
Dorchester Woman Sentenced for Stealing Social Security and SNAP BenefitsRead the Press Release
BOSTON – A Dorchester woman was sentenced today for stealing over $80,000 in Social Security and Supplemental Nutrition Assistance Program (SNAP) benefits.
Phaedra M. Sheets, 46, was sentenced by U.S. District Court Judge Patti B. Saris to eight months of home confinement and three years of supervised release. Sheets also was ordered to pay restitution of $85,559 to the Social Security Administration (SSA) and to the Massachusetts Department of Transitional Assistance. In September 2020, Sheets pleaded guilty to two counts of theft of public funds.
Sheets’ mother was receiving Social Security benefits and SNAP benefits at the time of her death in November 2009. Her death was never reported to the SSA nor to the Massachusetts Department of Transitional Assistance, and the agencies continued to pay monthly benefits on her behalf. When SSA attempted to contact Sheets’ mother to perform a review of her benefits claim, Sheets posed as her mother and directed SSA to deposit her mother’s benefits into various bank accounts, from which Sheets withdrew the funds. Sheets also impersonated her deceased mother in interactions with the Department of Transitional Assistance and used her mother’s SNAP card to make purchases for nearly nine years after her death.
From December 2009 to September 2018, Sheets stole approximately $71,636 in Social Security benefits and approximately $13,923 in SNAP benefits.
United States Attorney Andrew E. Lelling; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Cumberland County Man Admits Conspiring to Distribute Opioids, Launder Millions of Dollars in Drug ProceedsRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man admitted today conspiring to illegally distribute over 1 million prescription pills and launder drug trafficking proceeds through the use of fictitious shell companies, U.S. Attorney Craig Carpenito announced.
Alton Chatmon, 50, of Bridgeton, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to distribute controlled substances, including Tramadol, a synthetic opioid, and butabital; and one count of conspiring to commit money laundering.
According to documents filed in this case and statements made in court:
Chatmon is a former licensed pharmacist who operated two pharmacies in southern New Jersey until 2015. In 2015, after a DEA inspection of his pharmacies showed violations of regulations for the handling of controlled substances, Chatmon voluntarily surrendered his DEA registration, which had allowed him to process and fill prescriptions for controlled substances. In 2016, the State of New Jersey suspended Chatmon’s pharmacist license for two years.
From January 2017 until August 2018, Chatmon obtained large quantities of Tramadol pills from suppliers outside the United States by having the pills shipped to numerous U.S. Post Office boxes that he directed a conspirator to open in the names of fictitious businesses. Chatmon received customer orders from other conspirators that had been placed on internet sites or over the phone. He and his conspirators repackaged the Tramadol, a Schedule IV controlled substance, and butabital, a Schedule III controlled substance, and mailed the pills to customers to fill their orders. Chatmon admitted filling the orders for the customers of the unlicensed online pharmacy, knowing that the customers did not have valid prescriptions, that he was not a licensed pharmacist at the time, and without regard for whether the customers had any legitimate medical need for these medications. In exchange for the pills provided, the customers provided Chatmon and other conspirators with U.S. Postal money orders, which were deposited into bank accounts that Chatmon and his conspirators controlled. The bank accounts were set up using shell companies designed to disguise the source and control of the funds. Chatmon and his conspirators also sent interstate and international wire transfers totaling hundreds of thousands of dollars to their drug suppliers in both India and in other states around the United States to pay for the pills supplied to them.
Chatmon admitted that the drug conspiracy involved the illegal distribution of over 600,000 Tramadol pills and over 1 million Fioricet pills (containing butabital). He also admitted that the money laundering conspiracy involved the laundering of over $1.5 million in drug trafficking proceeds.
Chatmon faces a maximum penalty of 30 years in prison and a fine of up to $750,000. Sentencing is scheduled for April 19, 2021.
U.S. Attorney Craig Carpenito credited inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon E. Wood; special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Michael Montanez; diversion investigators of the Drug Enforcement Administration, Newark Field Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, under the direction of Special Agent in Charge Mark S. McCormack; and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin of the Camden Division.
Convicted Felon Sentenced to Additional 15 Months in Prison for Escape from Halfway HouseRead the Press Release
NEWARK, N.J. –– A convicted felon was sentenced today to an additional 15 months in prison for escaping from a halfway house, U.S. Attorney Craig Carpenito announced.
Joseph Reid, 40, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of escape from federal custody. Judge Cecchi imposed the sentence today by videoconference.
According to the documents filed in this case and statements made in court:
On Jan. 26, 2010, Reid was sentenced to 151 months’ imprisonment following his conviction for possession with intent to distribute cocaine. On Sept. 17, 2019, Reid was transferred to the custody of the Toler House Residential Reentry Center, a halfway house located in Newark. On Dec. 31, 2019, after failing to return to the Toler House on an approved day pass, Reid was charged with escape.
The additional 15 months in prison for which Reid was sentenced today will run consecutively to the remainder of his original sentence for drug distribution.
U.S. Attorney Carpenito credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Connecticut Man Sentenced to Five Years Imprisonment for Distribution of Heroin, Fentanyl, and Crack Cocaine in the Manchester, Vermont AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Torrie Smith, 31, was sentenced to five years imprisonment by U.S. District Court Judge William K. Sessions III. Smith previously pled guilty to possession with intent to distribute, heroin, cocaine, and crack cocaine. Judge Sessions also sentenced Smith to a four-year term of federal supervised release, which will begin after Smith completes his five-year prison term. At the time of his arrest, in April 2019, Smith resided in both Manchester, Vermont and Hartford Connecticut.
According to court records, on three separate instances, law enforcement seized significant quantities of drugs from cars in which Smith was either driving or was a passenger:
(1) November 27, 2018 Traffic Stop (Sunderland, Vermont): Vermont State Police seized 39 grams of cocaine powder, 8 grams of cocaine base, 99 bags containing fentanyl (3 grams), 203 pills, including 22 Oxycodone pills.
(2) January 25, 2019 Traffic Stop (Manchester, Vermont): Manchester Police seized about 100 grams of cocaine base, 45 grams of cocaine powder, 396 bags containing fentanyl (9 grams), 8 grams heroin, and .2 grams methamphetamine.
(3) March 27, 2019 Traffic Stop (Chester, Vermont): Chester Police seized about 46 grams of cocaine base, 102 grams of cocaine powder, 202 Oxycodone pills, and $1,860.
The total seized from these seizures, including additional drugs seized at the time of Smith’s arrest, was approximately 160 grams of crack cocaine, 190 grams of powder cocaine, 495 bags of fentanyl (12 grams), eight grams of heroin, and miscellaneous pills, including 224 Oxycontin pills.
According to the government’s allegations, Smith made several trips to the Hartford, Connecticut area to pick up drugs and then returned to the Manchester, Vermont area where he sold these drugs. The government stated in its Sentencing Memorandum that the five-year sentence was justified “to protect the public from the defendant’s relentless drug dealing.”
This case was investigated by the Vermont Drug Task Force, the FBI, the Vermont State Police (Shaftsbury Barracks), the Manchester Police Department, and the Chester Police Department. The government is represented by Assistant U.S. Attorney Joe Perella. Smith is represented by Michael Desautels, Esq. of the Office of the Federal Public Defender in Burlington.
Co-Founder of Cryptocurrency Company Who Defrauded Ico Investors Sentenced to PrisonRead the Press Release
Ilan T. Graff, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ROBERT JOSEPH FARKAS, a/k/a “RJ,” was sentenced on December 15 to one year and one day in prison, in connection with his participation in a scheme to induce victims to invest more than $25 million dollars’ worth of digital funds in Centra Tech, Inc. (“Centra Tech”), a Miami-based company he co-founded and that purported to offer cryptocurrency-related financial products. FARKAS previously pled guilty to conspiring to commit securities fraud and wire fraud in connection with his and his co-conspirators’ use of material misrepresentations and omissions to solicit investors to purchase securities, in the form of digital tokens issued by Centra Tech, through an initial coin offering (“ICO”) beginning in approximately July 2017. U.S. District Judge Lorna G. Schofield imposed the sentence in Manhattan federal court.
Mr. Graff said: “Farkas and his co-conspirators created fictitious executives and fabricated business relationships with legitimate institutions to dupe investors into handing over millions of dollars for a fraudulent ICO. We will continue to aggressively pursue frauds like this one, whether they involve traditional securities or newer financial instruments and crypto-assets.”
According to statements in the Superseding Information, and other filings and statements at public court proceedings in the case:
In or about July 2017, FARKAS, along with co-defendants Sohrab Sharma and Raymond Trapani, founded a company called Centra Tech that claimed to offer cryptocurrency-related financial products, including a purported debit card, the “Centra Card,” that supposedly allowed users to make purchases using cryptocurrency at establishments accepting Visa or Mastercard payment cards. From approximately July 30, 2017, through October 5, 2017, FARKAS and his co-defendants solicited investors to purchase unregistered securities, in the form of digital tokens issued by Centra Tech (“Centra tokens” or “CTR tokens”), through a so-called “initial coin offering” or “ICO.” As part of this effort, FARKAS and his co-defendants represented, in oral and written offering materials that were disseminated via the internet: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University; (b) that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard; and (c) that Centra Tech had money transmitter and other licenses in 38 states, among other claims. Based in part on these claims, victims provided millions of dollars’ worth of digital funds in investments for the purchase of Centra Tech tokens. In or about October 2017, at the end of Centra Tech’s ICO, those digital funds raised from victims were worth more than $25 million. At certain times in 2018, as the defendants’ fraud scheme was ongoing, those funds were worth more than $60 million.
The claims that FARKAS and his co-conspirators made to help secure these investments, however, were false. In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team were fictional people who were fabricated to dupe investors, Centra Tech had no such partnerships with Bancorp, Visa, or Mastercard, and Centra Tech did not have such licenses in a number of those states.
In 2018, this Office and the Federal Bureau of Investigation (“FBI”) seized, pursuant to judicially authorized seizure warrants, 100,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech during its ICO based on fraudulent misrepresentations and omissions. The United States Marshals Service sold the seized Ether units for approximately $33.4 million earlier this year. Following entry of a final order of forfeiture, these funds and other forfeited fraud proceeds will be available for potential use in a remission program that the Department of Justice intends to create to compensate victims of the Centra Tech fraud.
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FARKAS, 34, of Bay Harbor Islands, Florida, was also sentenced to three years of supervised release. He was further ordered to forfeit $347,062.58 and a Rolex watch purchased with fraud proceeds.
Mr. Graff praised the investigative work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer, Negar Tekeei, and Daniel Loss are in charge of the prosecution.
Clarksburg man indicted on drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jo-El Rene Torres, of Clarksburg, West Virginia, is facing a drug charge, U.S. Attorney Bill Powell announced.
Torres, 36, was indicted on one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Torres is accused of having heroin and fentanyl in May 2020 in Upshur County.
Torres faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force, the West Virginia State Police, the Upshur County Sheriff’s Office, and the Buckhannon Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chatham County man sentenced to federal prison after admitting he produced child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to nearly 30 years in federal prison for producing child pornography.
David Tang, 34, of Port Wentworth, was sentenced to 350 months in federal prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Tang also was ordered to pay $2 million in restitution to the victims in the case, and after completion of his prison term must serve 20 years on supervised release and register as a sex offender. There is no parole in the federal system.
“The most vulnerable members of our community are safer today because David Tang and his co-defendants are locked away,” said U.S. Attorney Christine. “We’re grateful for those who reported these horrific crimes, and for the law enforcement agencies who brought these predators to justice.”
As described in court documents and testimony, Tang and a co-defendant, Melanie Smith, a/k/a “Melanie Small,” 31, of Rincon, Ga., produced sexually explicit videos of minor children that were later shared with others by Holly Clayton, 34, of Port Wentworth, Ga. Smith later pled guilty to Production of Child Pornography and is serving a 360-month sentence in federal prison, while Clayton pled guilty to Distribution of Child Pornography and is serving a 144-month federal prison sentence.
All three defendants also face related state charges.
“This sentencing not only removes a serial predator from our community, it also sends a message to others engaged in this filth that we are serious about finding, arresting and prosecuting them,” said Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
The case was investigated by Homeland Security Investigations, the Savannah Police Department and the Effingham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo and Special Assistant U.S. Attorney Katelyn Semales.
Catonsville Drug Dealer Sentenced to 10 Years in Federal Prison for Conspiring to Distribute Fentanyl and Heroin in BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Jermol McCoy, age 37, of Catonsville, Maryland, to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police (MSP); Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services (DPSCS); and Baltimore City State’s Attorney Marilyn Mosby.
According to his guilty plea, from at least 2018 through 2019, McCoy conspired with others to distribute heroin, fentanyl, and crack cocaine in and around Baltimore. During the investigation, law enforcement intercepted phone calls and text messages in which McCoy made plans to distribute drugs, spoke about the hierarchy of the drug trafficking organization, and discussed methods to avoid detection by law enforcement.
On November 21, 2019, law enforcement executed a search warrant at McCoy’s apartment in Catonsville, which he used to manufacture and distribute controlled substances. Law enforcement recovered 4.9 grams of fentanyl in a plastic bag behind the microwave, cutting agent, and drug paraphernalia, including a kilogram press, digital scales, three boxes of plastic baggies, and cellular phones. In addition, law enforcement recovered a loaded 9mm semi-automatic pistol concealed in a bag in the bedroom. McCoy is prohibited from possessing a firearm or ammunition as a result of a previous felony conviction.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA, the ATF, the Baltimore Police Department, MSP, DPSCS and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Michael C. Hanlon, who prosecuted the case.
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Canadian citizen indicted in Brownsville for sending powder-filled envelopes to local authoritiesRead the Press Release
BROWNSVILLE, Texas – A Brownsville federal grand jury has indicted a Canadian woman for prohibitions with respect to biological weapons and making threats via interstate commerce, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Combs of the FBI.
Pascale Cecile Veronique Ferrier aka Jane Ferrier, 53, is currently in custody in Washington, D.C., on separate, but similar charges. She is expected to make her initial appearance in Brownsville at a future date.
The grand jury returned the indictment yesterday charging Ferrier with eight counts each of prohibitions with respect to biological weapons and making threats via interstate commerce.
Between Sept. 14-21, Ferrier allegedly sent envelopes containing letters and a powdery substance to multiple local agencies. These included the El Valle Detention Facility, Hidalgo County Adult Detention Center, Brooks County Detention Center, Hidalgo County Sheriff’s Office, Brooks County Sheriff’s Office and Mission Police Department, according to the charges.
The substance sent is alleged to be Ricin.
If convicted, Ferrier faces up to life for the biological weapons charges, while threats via interstate commerce carries a potential five-year sentence. Both convictions also carry a maximum $250,000 possible fine.
The FBI conducted the investigation with the assistance of Immigration and Customs Enforcement’s – Office of Professional Responsibility; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; police departments in Raymondville, Pharr and Mission; El Valle Detention Facility;
Fire departments in Harlingen and Brooks County; Hidalgo County Sheriff’s Office; Brooks County Detention Center; and Texas Department of State Health Services. Assistant U.S. Attorneys David A. Coronado, David A. Lindenmuth and Alamdar Hamdani are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Canadian Fashion Executive Peter J. Nygard Charged with Sex Trafficking and Racketeering OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a nine-count indictment charging Canadian fashion executive PETER J. NYGARD, 79, with racketeering, sex trafficking, and related crimes arising out of a decades-long pattern of criminal conduct involving at least dozens of victims in the United States, the Bahamas, and Canada, among other locations.
NYGARD was taken into custody on December 14, 2020, in Winnipeg, Manitoba, Canada by Canadian authorities after the United States requested Canada issue a Provisional Arrest Warrant pursuant to the extradition treaty between the two countries.
The case has been assigned to United States District Judge Paul G. Gardephe.
If you believe you are a victim of the sexual abuse perpetrated by Peter Nygard, please contact the FBI at 1-800-CALL FBI, and reference this case.
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
From at least in or about 1995, up to and including in or about 2020, PETER J. NYGARD was the leader and founder of an international clothing design, manufacturing, and supply business headquartered in Winnipeg, Canada, with major offices and warehouses in the United States, including New York City and California. NYGARD operated a constellation of corporate entities organized in various countries (the “Nygard Group”). Over this 25-year period, NYGARD used the Nygard Group’s influence, as well as its employees, funds, and other resources, to recruit and maintain adult and minor-aged female victims for NYGARD’s sexual gratification and the sexual gratification of his friends and business associates. NYGARD and his co-conspirators, including Nygard Group employees, used force, fraud, and coercion to cause women and minors to have sex with NYGARD and others.
NYGARD frequently targeted women and minor-aged girls who came from disadvantaged economic backgrounds and/or who had a history of abuse. He controlled his victims through threats, false promises of modeling opportunities and other career advancement, financial support, and by other coercive means, including constant surveillance, restrictions of movement, and physical isolation. NYGARD forcibly sexually assaulted some of his victims. Other victims were forcibly assaulted by NYGARD’s associates or drugged to ensure their compliance with his sexual demands.
NYGARD maintained personal and quasi-professional relationships with certain of his victims, whom he referred to as “girlfriends” or “assistants.” NYGARD required these “girlfriends” to travel and to stay with him regularly; to engage in sexual activity at his direction (including with NYGARD, with each other, and with others); and to recruit new women and minor-aged girls for NYGARD to have sex with. NYGARD controlled these “girlfriends” through a variety of means, including force, fraud, and coercion. At times, NYGARD and his associates provided illegal drugs and alcohol to “girlfriends” before sexual activity and threatened or berated “girlfriends” if they did not agree to participate. NYGARD sometimes forcibly assaulted “girlfriends” who did not comply with NYGARD’s sexual demands – or caused others to do so. NYGARD dictated the daily activities of “girlfriends” and the details of their appearance. “Girlfriends” were also under constant surveillance by NYGARD and his associates and were not permitted to leave premises without NYGARD’s express permission.
NYGARD used various tools to recruit women and minors for sex, including:
- Events hosted at NYGARD’s properties in Marina del Rey, California and in the Bahamas, including so-called “Pamper Parties,” named for the free food, drink, and spa services that NYGARD made available. NYGARD frequently used a “girlfriend” or another employee to approach a chosen woman or girl to indicate his interest in sex. NYGARD engaged in sexual activity with the victim on the premises and paid her cash. Some unwilling participants, including minors, were drugged to force their compliance with his sexual demands. Other victims had no advance warning of NYGARD’s interest in sexual activity before being lured to a secluded area of the property where NYGARD used physical force and/or psychological pressure to coerce sex.
- Sex and “swingers” clubs, where NYGARD directed and pressured “girlfriends” through manipulation, intimidation, degradation, threats and, on occasion, force, to engage in sex with other men in order to facilitate NYGARD having sex with other women and for his own sexual gratification.
- Sexual “swaps” with male friends and business associates, who would bring NYGARD a “date” for sex in exchange for sexual access to one of NYGARD’s “girlfriends.” NYGARD did not inform “girlfriends” in advance that he would trade them for sex and often used manipulation, intimidation, degradation, and threats to ensure compliance.
NYGARD paid his victims for commercial sex using Nygard Group funds, including by putting “girlfriends” on the payroll of Nygard Group entities as “models,” “assistants,” or in other positions. NYGARD also used the façade of legitimacy his fashion business created – as well as the Nygard Group’s business operations, reputation, and resources – to facilitate and conceal his crimes in other ways. Among other things, NYGARD used the promise of modeling and other fashion industry jobs to lure victims, Nygard Group money to fund “Pamper Parties,” and Nygard Group employees to recruit potential victims to attend those parties, including screening attendees for their physical appearance to confirm that NYGARD would find them attractive, and maintaining a register of Pamper Party attendees’ personal information, documenting their names, contact information, weight, and physical measurements. NYGARD also used Nygard Group employees and funds to intimidate, threaten, and corruptly persuade individuals who alleged that he was engaged in sexual assault and sex trafficking, including by paying witnesses for false statements and affidavits, threatening witnesses with arrest, prosecution, and reputational harm, and attempting to cause reputational harm and discredit potential witnesses by disseminating false or embarrassing information.
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Ms. Strauss praised the outstanding investigative work of the FBI and the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacqueline C. Kelly, Allison Nichols, and Celia V. Cohen are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
California man sentenced to prison for trafficking meth to MontanaRead the Press Release
MISSOULA — A California man who admitted mailing methamphetamine and other drugs to Montana for distribution and wiring drug proceeds back to California was sentenced today to six years in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Oscar Noe Celio Luna, 32, of Bakersfield, CA, pleaded guilty on Sept. 30 to conspiracy to possess with intent to distribute controlled substances and to conspiracy to commit money laundering.
U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents filed in the case that law enforcement learned Luna was mailing drugs from California since at least 2017. Law enforcement made controlled buys of drugs, including more than 500 grams of meth, from Luna. One pound of meth is 453 grams. In April, Luna sent 466 grams of 100 percent pure meth and 47.7 grams of heroin to Montana. The investigation also determined that Luna wired drug proceeds, including about $35,360 from Butte to California, to further promote drug trafficking.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, the Helena Police Department, the Missouri River Drug Task Force and the Montana Division of Criminal Investigation.
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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Bullhead Man Sentenced for Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota, man convicted of three counts of Child Abuse was sentenced on December 14, 2020, by Judge Charles B. Kornmann, U.S. District Court.
Tyson Keepseagle, age 33, was sentenced to 30 months in federal prison on each count, to run concurrently, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $300.
Keepseagle was indicted by a federal grand jury on May 14, 2019. He was convicted on July 10, 2020, following a three-day jury trial in Aberdeen, South Dakota.
The convictions stem from incidents between June 1, 2018, and August 12, 2018, when three child victims were living with Keepseagle and he abused them, leaving them with bruises and swelling. This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorneys Kirsten Jasper and Kirk Albertson prosecuted the case.
Keepseagle was immediately turned over to the custody of the U.S. Marshals Service.
Brockton Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a tax preparation business in Brockton pleaded guilty today to preparing false tax returns for others as well as filing a false tax return for himself.
Jose Miguel Spinola, 51, pleaded guilty to two counts of preparing false tax returns and one count of filing a false tax return. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 23, 2021. In June 2020, Spinola was charged by indictment.
On numerous occasions between 2014 and 2017, Spinola prepared and filed income tax returns for clients that contained false, inflated and incorrect information on his clients’ IRS Form 1040, U.S. Individual Income Tax Returns and attached schedules. Spinola added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses and unreimbursed employee business expenses, including claimed meals and entertainment, business miles and work apparel. By inflating Schedule A deductions, Spinola decreased his clients’ taxable income and effectively increased the clients’ tax refunds. Spinola informed his clients of the total tax refund they would receive from the IRS without telling the clients about the false, inflated, or ineligible expenses Spinola deducted from his clients’ income tax returns.
Each count of aiding the preparation of false tax returns and filing false tax returns provides for a sentence of up to three years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Brainerd Man Pleads Guilty to Minneapolis Police Third Precinct ArsonRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DYLAN SHAKESPEARE ROBINSON, 23, to one count of conspiracy to commit arson at the Minneapolis Police Department’s Third Precinct. ROBINSON entered his guilty plea today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. A sentencing date will be scheduled at a later time.
According to the ROBINSON’s guilty plea and documents filed with the court, on the night of May 28, 2020, ROBINSON went to the Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. ROBINSON, along with other co-conspirators, breached the fence and entered the Third Precinct building. ROBINSON, assisted by an unidentified co-conspirator, lit a device held by the unidentified co-conspirator who threw it toward the Third Precinct building with the intent that it would start a fire or fuel an existing fire.
On November 19, 2020, co-conspirator Bryce Michael Williams plead guilty to one count of conspiracy to commit arson for his role in the arson at the Third Precinct building.
This case is the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
Defendant Information:
DYLAN SHAKESPEARE ROBINSON, 23
Brainerd, Minn.
Convicted:
- Conspiracy to commit arson, 1 count
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Baltimore Felon Pleads Guilty to Federal Charge for his Participation in a Fentanyl Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Thomas Corey Crosby, age 51, of Woodlawn, Maryland, pleaded guilty today to conspiracy to distribute controlled substances, specifically, 40 grams or more of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from at least May 2020 through August 2020, Crosby participated in a conspiracy to distribute illegal narcotics, including heroin and fentanyl.
Beginning in May 2020, investigators began wiretapping a cell phone known to be used by a co-conspirator, which revealed that the co-conspirator was operating an open-air drug market (commonly called a “drug shop”) that sold cocaine, heroin, and fentanyl, in Northwest Baltimore City in the area of Palmer and Spaulding Avenues and that the co-conspirator was communicating with Crosby regarding the drug business. Investigators also obtained authorization to intercept a phone used by Crosby. Investigation revealed that Crosby and the co-conspirator communicated approximately every 7 to 14 days concerning the sale of narcotics, including heroin and fentanyl. Crosby and the co-conspirator spoke in code during these calls, but it was clear that they were discussing the distribution of narcotics. After these conversations, Crosby and his co-conspirator would meet at a gas station, located at the intersection of Druid Park Avenue and Liberty Heights in Baltimore, where Crosby supplied the co-conspirator with drugs. Investigators conducted surveillance on several of these meetings and obtained video surveillance from the gas station.
On August 9, 2020, law enforcement executed a vehicle stop on the co-conspirator’s vehicle after Crosby had met the co-conspirator at the gas station, where Crosby was seen placing an item in the center console area of the vehicle. During a search of the vehicle, investigators recovered over 100 grams of fentanyl from a bag inside the center console of the vehicle. After this traffic stop, the co-conspirator immediately called Crosby and the pair then met at the same gas station. After this additional meeting, Crosby disposed of his cell phone, which investigators had obtained authorization to intercept and track. Crosby distributed the 100 grams of fentanyl to the co-conspirator.
On August 14, 2020, investigators executed a series of search warrants at locations related to the investigation, including a residence in the 2500 block of Park Heights Terrace in Baltimore, a location used by Crosby to manufacture and store drugs. Inside the residence, investigators recovered fentanyl, as well as drug paraphernalia and packaging material including: sifters, razor blades, plastic baggies, a digital scale, and cutting agents. Investigators also executed a search warrant at Crosby’s residence, where they recovered $134,499 in cash, which Crosby admitted constituted proceeds from his drug trafficking activities.
Crosby admitted that he distributed over 160 grams of fentanyl during his participation in the conspiracy,
As part of his plea agreement, Crosby will forfeit $134,499 in cash, which was seized on August 14, 2020. Additionally, Crosby acknowledges that he was previously convicted in federal court for possession with intent to distribute 100 grams or more of heroin.
Crosby and the government have agreed that, if the Court accepts the plea agreement, Crosby will be sentenced to 10 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 11, 2021 at 10:00 a.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who are prosecuting the case.
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Augusta Man Sentenced for Firearm ChargesRead the Press Release
BANGOR, Maine: An Augusta man was sentenced today in federal court for two counts of making false statements to a federally licensed firearms dealer, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Keegan Hale, 23, to time served and three years of supervised release. Hale entered custody when he pleaded guilty on March 10, 2020.
According to court records, Hale purchased firearms for another individual on two occasions in September and October 2018. On each occasion, he completed and signed a form certifying he was the actual purchaser of the firearm, when he was actually purchasing the guns for anther individual.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Augusta Police Department investigated the case.
This case was 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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Asheville Man Is Sentenced to Seven Years for the Armed Robbery of A Local RestaurantRead the Press Release
ASHEVILLE, N.C. – Curtis Andrew Wallace, Jr., 30, of Asheville, was sentenced to 84 months in prison today for the armed robbery of an area restaurant, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Wallace to serve three years under court supervision after he is released from prison.
Chief David Zack of the Asheville Police Department (APD) joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on December 30, 2019, APD officers responded to a call at the Domino’s Pizza restaurant located at 1438 Patton Avenue, in Asheville, in reference to an attempted armed robbery. APD officers who responded at the scene were able to see Wallace through the glass window of the store. Court records show that when Wallace saw the officers, he attempted to exit through the back door of the store, where he was met by other APD officers. Wallace retreated inside the business and attempted to escape again through the front door. Officers confronted Wallace at the entrance and took him into custody.
According to court documents, following Wallace’s arrest, APD officers entered the restaurant and located five store employees lying face down inside the store’s walk-in freezer. One of the employees told APD officers that Wallace ran in the store wielding a machete and ordered everyone to get on the floor in the back office or they would be harmed. Wallace demanded money from the safe and ordered the employees to lay face down inside the restaurant’s freezer. Over the course of the robbery, Wallace kicked several employees, one of them in the face, and threatened to “start chopping heads off” if they did not comply. Wallace proceeded to rob the store employees and to take money from the store’s cash register.
On September 25, 2020, Wallace pleaded guilty to interference with commerce by threat or violence, commonly referred to as Hobbs Act Robbery. Wallace has a prior federal conviction for the 2011 robbery of an Asheville-area bank.
Wallace is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanked the Asheville Police Department for their investigation of the case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Armed Bank Robber Sentenced to 8 Years’ ImprisonmentRead the Press Release
PITTSBURGH – A resident of Youngstown, Ohio, was sentenced to 8 years in prison on charges of Armed Bank Robbery and Using and Brandishing a Firearm During and in Relation to a Crime of Violence, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Demetrius Harris, 20.
According to the information provided at his change of plea, on November 1, 2019, Harris, Darion Fitzgerald, and Taevon Young drove from Ohio and robbed the First National Bank, an FDIC insured, located at 1030 Indiana Avenue, Farrell, PA 16121, of over $62,000. Harris and his co-defendant Fitzgerald entered the bank, armed with a rifle and a handgun, while Young acted as a lookout.
Upon entering the bank, Harris pulled out a handgun, and demanded money from multiple bank tellers. During the robbery, Fitzgerald and Harris switched firearms. Shortly thereafter, Fitzgerald and Harris exited the bank, Harris now carrying the rifle-style firearm and Fitzgerald carrying the handgun, and fled on foot. The robbers took approximately $62,000.
Harris was arrested after fleeing and discarding the rifle-style firearm. Harris was found with a backpack with a large sum of U.S. currency (approximately $55,000). A rifle-style firearm (Anderson Manufacturing, AM-15, Serial #: 16357936) was recovered in the woods next to the location where Harris was arrested. Harris confessed to committing the bank robbery.
Darion Fitzgerald. 19, and Taevon Young, 20, both of Cleveland, Ohio, are pending trial.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Farrell Police Department, Cleveland Metroparks Police Department, and Youngstown Police Department conducted the investigation leading to the prosecution of Harris.
Anchorage Man Sentenced to over Six and A Half Years in Federal Prison for Trafficking Heroin and Possession of A FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Blake Lincoln Smith, 34, of Anchorage, Alaska, has been sentenced on charges of possessing heroin with intent to distribute and being a felon in possession of a firearm.
According to Court documents, the charges stemmed from a July 23, 2019 search warrant execution of Smith’s vehicle, which resulted in the discovery and seizure of a loaded Springfield Armory XD-40 semiautomatic pistol and 179 grams of heroin. At the time, Smith was on state probation for drug possession and felony eluding convictions in Alaska. He also had a prior felony conviction for vehicle theft.
In imposing the 77-month sentence, District Court Judge Joshua M. Kindred emphasized Smith’s extensive criminal history and the seriousness of possessing a gun while possessing drugs as justification of the sentence.
The Federal Bureau of Investigation (FBI), Drug Enforcement Agency (DEA), Alaska State Troopers (AST), Anchorage Police Department (APD), Anchorage International Airport Police, Sand Point Police, and North Slope Borough Police, in support of Alaska’s High Intensity Drug Trafficking Area (HIDTA) Program, contributed to the investigation leading to the successful prosecution in this case. This case was prosecuted by Assistant U.S. Attorney Allison O’Leary.
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
Albuquerque man sentenced to 13 years in federal prison for armed robberyRead the Press Release
ALBUQUERQUE, N.M. – Jacob Merkel, 22, of Albuquerque was sentenced in federal court to 13 years in prison for one count of interference with interstate commerce by robbery and violence and one count of using, carrying, and discharging a firearm during and in relation to crime of violence, and possessing and discharging a firearm in furtherance of such crime.
Merkel previously pleaded guilty on Aug. 24. According to his plea agreement, Merkel admitted to traveling to Tobacco Town in Albuquerque with the intention of robbing it on Nov. 29, 2019. Merkel also admitted to wearing a black mask and a black hat and robbing the store at gunpoint. He fired a shot at the clerk while fleeing the building. Merkel and co-defendant, Vicente Perez fled, but were identified and followed by Albuquerque Police. While Perez attempted to evade the police, a tire on his car blew out, disabling it, and Perez and Merkel fled on foot. Perez surrendered after a brief pursuit; Merkel was arrested shortly afterward.
Co-defendant, Vicente Perez was sentenced on Oct. 29 to six years in federal prison for his part in the crime.
In addition to his prison sentence, Merkel will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Eva M. Fontanez prosecuted the case.
Alabama Man Sentenced to 111 Months in Federal Prison for Armed RobberyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Chief United States District Court Judge Kristi K. DuBose sentenced Lamarion Demetrius Alston on December 15, 2020, to serve a term of imprisonment of 111 months followed by 8 years of supervised release for Armed Robbery of a business (Hobbs Act robbery). The Court accepted the defendant’s guilty plea on September 14, 2020.
Court records established that on April 18, 2019, Alston, while brandishing a firearm, robbed the Family Dollar store in Demopolis, Alabama. A responding officer observed a vehicle fleeing and attempted to stop the vehicle, but the vehicle began driving evasively. The officer saw the defendant, a passenger in the vehicle, jump out and flee on foot. Officers pursued Alston and found him attempting to hide in a dumpster at a nearby apartment complex. Alston attempted to flee the dumpster and climb a fence. Officers physically struggled with Alston but were eventually able to gain control of him and take him into custody.
Officers were also able to stop the driver of the vehicle and they recovered a cash drawer containing cash taken during the robbery and a .32-caliber revolver which was consistent with the firearm the Alston can be seen brandishing on store video of the robbery.
The offense was investigated by the Demopolis, Alabama, Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney George F. May for the United States Attorney’s Office for the Southern District of Alabama.
15 named in $26 million international trade fraud schemeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a criminal indictment against eight individuals, while a related civil complaint has charged 14 individuals and one company relating to international trade fraud violations stemming from a decade-long scheme involving tires from China.
Law enforcement arrested Zheng “Miranda” Zhou, 53, of Missouri City, and Kun “Bruce” Liu, 40, of Sugar Land, yesterday. They made their initial appearances in Houston federal court today, at which time the criminal indictment was unsealed. Zhou will appear again tomorrow at 10 a.m. before U.S. Magistrate Judge Frances Stacy for a counsel determination hearing, and both are set for arraignment Friday at 10 a.m.
Also charged in the indictment are Qinghua “Shirley” Song, 44, of Jurupa Valley, California; and Chinese residents Yue “Joanna” Peng, 42, Li “Cathy” Chen, 38, Xin “Devin” Zhang, age unknown, Shaohui “Jasper” Jia, 40, and Deng “David” Yongqiang, 36. They are all considered fugitives and warrants remain outstanding for their arrests.
The Department of Justice’s Civil Division also filed a civil complaint Dec. 11 alleging trade fraud in the U.S. Court of International Trade. The complaint names the eight criminal defendants and six other individuals - Xiaozhen “Jenny” Zhang, 34, Di “Terry” Wang, 34, Liang “Leon” Yu, 49, Lin “Leo” Zhang, 37, Jinbing “David” Wang, 36, and Minglian “Bill” Li, 28 - as well as Houston area company Winland International Inc., dba Super Tire Inc. David Wang is a resident of New Jersey, while the remaining civil defendants reside in China.
“China and its industries want to rob, replicate and replace American made good and technology,” said U.S. Attorney Ryan K. Patrick. “Illegally importing and dumping these goods is one way to systemically weaken American competitors. Whether direct espionage by the Chinese government or trade fraud like in this case, we will continue to investigate and prosecute every case we can.”
“The Civil Division, through the Department of Justice’s Trade Fraud Task Force (TFTF), will continue to partner with U.S. law enforcement agencies and U.S. Attorneys’ Offices to aggressively investigate and pursue individuals and companies who attempt to evade U.S. customs laws and target the U.S. manufacturing base with unfair trade practices,” said Acting Assistant Attorney General Jeffery Bossert Clark. “We recognize the importance of ensuring that U.S. manufacturers are competing on a level playing field.”
The indictment and complaint allege the defendants conspired to avoid anti-dumping duties associated with off-the-road (OTR) and light vehicle and truck (LVT) tires from China. Working through and with Winland, individuals allegedly imported OTR and LVT tires from companies that were subject to anti-dumping duties associated with Chinese tire manufacturers who had engaged in unfair trade practices in the United States.
The complaint further alleges U.S.-based defendants conspired with defendants in China to obtain falsified invoices and entry records of Chinese tire companies that were subject to a lower duty rate than the actual manufacturers of these tires. Defendants submitted these falsified records to U.S. Customs officials when importing tires into the United States, so that Winland could avoid paying the higher duty rates, according to the allegations. The indictment and complaint also allege they used these falsified records to understate the value of these tires, further lowering the amount Winland owed in duties.
The value of these tires allegedly exceeded $20.9 million and resulted in the deprivation to the United States of more than $6.5 million in import duties.
“For more than a decade, Zhou and her co-conspirators are alleged to have sought to gain an unfair competitive advantage at the expense of U.S. companies and consumers through a series of schemes in violation of fair trade practices and U.S. import regulations,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Houston. “Working closely with our U.S. and foreign law enforcement partners, and in coordination with the National Intellectual Property Rights Coordination Center, we were able to uncover these alleged deceptive practices leading to the criminal indictment and imposition of almost $21 million in civil penalties.”
“Customs and Border Protection (CBP) takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Director of Detroit Field Operations Christopher Perry. “These civil penalties and criminal indictments should serve as a warning to those who attempt to defraud our government and do harm to our economy and American businesses.”
The Houston Trade/Revenue Interdiction and Enforcement Team conducted the collaborative investigation along with CBP’s Automotive and Aerospace Center of Excellence and Expertise with the assistance of U.S. Citizenship and Immigration Services.
Assistant U.S. Attorneys Suzanne Emilady and Craig Feazel of the Southern District of Texas are prosecuting the criminal case, while William Kanellis of TFTF is handling the civil matter. TFTF is an inter-agency law enforcement task force with the primary mission of identifying, interdicting and prosecuting international trade fraud.
An indictment or complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
15 Named in $26 Million International Trade Fraud SchemeRead the Press Release
A federal grand jury in Houston, Texas, has returned a criminal indictment against eight individuals, while a related civil complaint has charged 14 individuals and one company relating to international trade fraud violations stemming from a decade-long scheme involving tires from China.
Law enforcement arrested Zheng “Miranda” Zhou, 53, of Missouri City, and Kun “Bruce” Liu, 40, of Sugar Land, yesterday. They made their initial appearances in Houston federal court today, at which time the criminal indictment was unsealed.
Also charged in the indictment are Qinghua “Shirley” Song, 44, of Jurupa Valley, California; and Chinese residents Yue “Joanna” Peng, 42, Li “Cathy” Chen, 38, Xin “Devin” Zhang, age unknown, Shaohui “Jasper” Jia, 40, and Deng “David” Yongqiang, 36. They are all considered fugitives and warrants remain outstanding for their arrests.
The Department of Justice’s Civil Division also filed a civil complaint Dec. 11 alleging trade fraud in the U.S. Court of International Trade. The complaint names the eight criminal defendants and six other individuals - Xiaozhen “Jenny” Zhang, 34, Di “Terry” Wang, 34, Liang “Leon” Yu, 49, Lin “Leo” Zhang, 37, Jinbing “David” Wang, 36, and Minglian “Bill” Li, 28, as well as Houston area company Winland International Inc., dba Super Tire Inc. David Wang is a resident of New Jersey, while the remaining civil defendants reside in China.
“The Civil Division, through the Department of Justice’s Trade Fraud Task Force (TFTF), will continue to partner with U.S. law enforcement agencies and U.S. Attorneys’ Offices to aggressively investigate and pursue individuals and companies who attempt to evade U.S. customs laws and target the U.S. manufacturing base with unfair trade practices,” said Acting Assistant Attorney General Jeffery Bossert Clark. “We recognize the importance of ensuring that U.S. manufacturers are competing on a level playing field.”
“China and its industries want to rob, replicate and replace American made good and technology,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “Illegally importing and dumping these goods is one way to systemically weaken American competitors. Whether direct espionage by the Chinese government or trade fraud like in this case, we will continue to investigate and prosecute every case we can.”
The indictment and complaint allege the defendants conspired to avoid anti-dumping duties associated with off-the-road (OTR) and light vehicle and truck (LVT) tires from China. Working through and with Winland, individuals allegedly imported OTR and LVT tires from companies that were subject to anti-dumping duties associated with Chinese tire manufacturers who had engaged in unfair trade practices in the United States.
The complaint further alleges U.S.-based defendants conspired with defendants in China to obtain falsified invoices and entry records of Chinese tire companies that were subject to a lower duty rate than the actual manufacturers of these tires. Defendants submitted these falsified records to U.S. Customs officials when importing tires into the United States, so that Winland could avoid paying the higher duty rates, according to the allegations. The indictment and complaint also allege they used these falsified records to understate the value of these tires, further lowering the amount Winland owed in duties.
The value of these tires allegedly exceeded $20.9 million and resulted in the deprivation to the United States of more than $6.5 million in import duties.
“For more than a decade, Zhou and her co-conspirators are alleged to have sought to gain an unfair competitive advantage at the expense of U.S. companies and consumers through a series of schemes in violation of fair trade practices and U.S. import regulations,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Houston. “Working closely with our U.S. and foreign law enforcement partners, and in coordination with the National Intellectual Property Rights Coordination Center, we were able to uncover these alleged deceptive practices leading to the criminal indictment and imposition of almost $21 million in civil penalties.”
“Customs and Border Protection (CBP) takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said CBP’s Director of Detroit Field Operations Christopher Perry. “These civil penalties and criminal indictments should serve as a warning to those who attempt to defraud our government and do harm to our economy and American businesses.”
The Houston Trade/Revenue Interdiction and Enforcement Team conducted the collaborative investigation along with CBP’s Automotive and Aerospace Center of Excellence and Expertise with the assistance of U.S. Citizenship and Immigration Services.
William Kanellis of TFTF is handling the civil matter. TFTF is an inter-agency law enforcement task force with the primary mission of identifying, interdicting and prosecuting international trade fraud. Assistant U.S. Attorneys Suzanne Emilady and Craig Feazel of the Southern District of Texas are prosecuting the criminal case.
An indictment or complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Monday 14 December 2020
Wyoming Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Casper, Wyoming, man convicted of Attempted Enticement of a Minor Using the Internet following a federal jury trial was sentenced on November 20, 2020, by Judge Jeffrey L. Viken, U.S. District Court.
Japher Rajab, age 43, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Rajab also will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Rajab was one of eleven men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally targeting internet predators. The conviction stemmed from Rajab communicating with someone he believed to be a 15 year-old girl, but who was in fact an undercover agent. Following multiple chats and text messages Rajab proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, Department of Homeland Security, Federal Bureau of Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Rajab was immediately remanded to the custody of the U.S. Marshals Service.
Waterbury Man Pleads Guilty to Possessing Child Sex Abuse ImagesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, announced that JOHN T. PERUGINI, 78, of Waterbury, waived his right to be indicted and pleaded guilty today to one count of possession of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, HSI received information that Perugini had been paying for access to a commercial website that contained child sex abuse images and videos. On October 29, 2019, agents seized Perugini’s computer equipment, including multiple external storage devices, from his residence. Analysis of one of Perugini’s external storage devices revealed more than 500,000 images and videos of child sex abuse.
Perugini was arrested in a federal criminal complaint on November 8, 2019.
Possession of child pornography carries a maximum term of imprisonment of 20 years. Perugini is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant in Hartford on March 17, 2021.
Perugini is released on a $50,000 bond pending sentencing.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Brendan Keefe.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
United States Attorney Craig Carpenito Announces his Resignation, Effective January 5, 2021Read the Press Release
NEWARK, N.J. – The United States Attorney for the District of New Jersey, Craig Carpenito, announced his resignation today, effective at 11:59 p.m., Jan. 5, 2021. Mr. Carpenito made the following statement regarding his departure and tenure in office:
Serving as the United States Attorney has been the greatest professional honor of my lifetime. It’s a dream for any line AUSA to eventually lead the office that they love. Over the past three years, we have been through a lot – the longest shutdown in government history, a global pandemic, and two tragic acts of violent extremism that led to the loss of precious lives. Through it all, we protected the great traditions of this office, the Department of Justice and the state that we all love and serve. For that, I am forever grateful.
I would also like to thank Attorney General Jefferson B. Sessions for appointing me United States Attorney in January 2018 and the United States District Court for the District of New Jersey for voting me into my position in April 2018. Being chosen by this Court to be the United States Attorney has been particularly gratifying.”
Over the past three years, I have been blessed to work alongside a tremendous front office and an incredible group of Assistant U.S. Attorneys. The following are only a few highlights among all that we have accomplished.
Organizational Changes
We made significant organizational changes to the Criminal and Civil Divisions, beginning upon my arrival in 2018, when I re-established the Violent Crimes Unit and created the Cybercrimes and Opioids Units. Opioids was the first standalone opioids enforcement unit in the United States, and the second unit in our Criminal Division to include both criminal and civil AUSAs. As a member of the Attorney General’s Advisory Subcommittees on both Health Care and Cybercrimes, we were thought leaders in both areas and brought some of the most significant cases in the country over the past three years.
I created a third such unit at the end of 2019: The Government Fraud Unit. Keeping AUSAs conducting parallel investigations under one roof has improved communication between the two groups and increased the speed with which such cases can be brought.
Staffing
We increased the number of criminal cases we prosecuted, and civil cases we brought and defended, by aggressively hiring new AUSAs and SAUSAs. Throughout all of our offices – Newark, Camden, and Trenton – staffing is at record levels. When I took office on Jan. 5, 2018, we had only 130 AUSAs on board even though we had a total of 147 AUSA slots. Today, we have 155 AUSA slots, all of which have been filled, and 10 SAUSAs - a 27 percent increase in our headcount. We hired and filled our 17 vacant AUSA slots by improving the management of our budget, and we increased our headcount by applying to Washington for increased funding to hire eight additional AUSAs for specific slots (immigration, affirmative civil enforcement in health care, violent crime, and unemployment insurance benefit fraud). We also asked for, and received, Special Assistant U.S. Attorneys from other federal agencies, including the Securities & Exchange Commission, the Environmental Protection Agency, the Department of Labor, the United States Trustee, and the United States Postal Inspection Service, and from the State of New Jersey and many of our county prosecutors’ offices. We have hired a diverse group of 74 AUSAs from different bakcgrounds and experiences. Our office is as strong as it has ever been.
Increased Productivity
The federal government’s fiscal year runs from October 1 to September 30. In fiscal year 2017, the last full year before I rejoined the Office, the Office brought 870 criminal cases. In 2018, that number went up to 1,217, an increase of nearly 40 percent. In 2019, the number increased again by nearly 10 percent, to 1,333 criminal cases. And in fiscal year 2020, a full half of which occurred during the COVID-19 pandemic and all of the challenges that posed and continues to pose to law enforcement, the number increased yet again by over 15 percent, to a total of 1,535 criminal cases. As an Office, we have been working smarter and we have been working harder. These numbers reflect that.
Violent Crime
One of my earliest priorities was tackling the violent crime problem in New Jersey, particularly in its largest cities. We moved immediately to strengthen our relationships with our state and local partners and to dedicate additional resources to investigating and prosecuting violent crime. The results were gratifying. For example, between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victims city-wide. In 20l9, the number of shooting victims and shooting incidents declined another 39 percent when compared to the same time period in 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.
The overall trends statewide were similar. The number of shooting victims in New Jersey declined from 1,353 in 2017 to 1,050 in 2018 and 1,000 in 2019, a decrease of 26 percent over that period. Of those, the number of murder victims declined from 233 in 2017 to 187 in 2018 to 158 in 2019, an even greater decrease of 32 percent over that period. These significant gains would not have been possible without the robust federal/state/local partnership led by this Office.
During my tenure, we expanded our Violent Crime Initiatives from Newark to Jersey City, Paterson, Trenton, and Camden. We dedicated more AUSAs to each of the VCIs, and we developed long-term relationships with our law enforcement partners to ensure that the VCIs would be successful. The Attorney General recognized our VCI work with AG Awards in two consecutive years, first in 2019 to the Newark VCI for cooperative law enforcement, and next in 2020 to Deputy Chief of the Criminal Division Mary Toscano, our Newark VCI coordinator, for excellence in management.
The violent crime numbers were continuing to decrease in 2020 when the pandemic hit. Since that occurred in mid-March, violent crime numbers have risen in many of our major cities. Thankfully, our numbers in New Jersey have remained better than other major cities in the United States. It is my sincere hope that by maintaining our focus on investigating and prosecuting violent crime at the federal level, we can start pushing those numbers in the right direction again in 2021.
Task Forces
In 2020, the Attorney General appointed me to lead two nationwide task forces. On March 24, 2020, the Attorney General created the COVID-19 Hoarding and Price Gouging Task Force. Our office, under the leadership of Deputy Chief of the Criminal Division Nicholas Grippo, AUSA David Simunovich, and Chief of the Appeals Division Mark Coyne, led the charge to investigate and prosecute the illicit hoarding and price gouging of critical COVID-19 personal protective equipment. With the help of our partners in the Antitrust Division, and with resources from U.S. Attorney’s Offices around the country, we created a mechanism by which to quickly intake hundreds upon hundreds of price-gouging complaints, assign those investigations to AUSAs around the country, and quickly and efficiently bring, when appropriate, criminal charges.
On June 26, 2020, the Attorney General appointed me, along with the U.S. Attorney for the Northern District of Texas, to lead the Task Force on Violent Anti-Government Extremists. Our office, under the leadership of AUSA Dean Sovolos, stood up this task force. We appointed task force coordinators in specific regions of the country to launch and coordinate investigations, with the FBI and local U.S. Attorney’s Offices, into violent extremists such as the Boogaloo and other white supremacist groups.
Civil Rights Enforcement
We increased our prosecution of criminal and civil cases involving civil rights, dedicated more resources to this important work, and were recognized by EOUSA for our excellence in this field. On the civil side, we increased the size of our civil unit by 50 percent. And, we were awarded in 2019 with a Director’s Award, to Michael Campion, Chief of the Civil Rights Unit in the Civil Division, and AUSA Kelly Horan Florio, for Superior Performance by Civil AUSAs, based upon their record of excellence in civil rights work. On the criminal side, I appointed Joseph Gribko as our first Senior Civil Rights Counsel. Throughout our offices, we charged a number of important criminal civil rights against law enforcement officers across the state. And, in 2020, we were recognized for this work as well, with a Director’s Award, to Executive Assistant U.S. Attorney Rahul Agarwal, for the successful civil rights prosecutions of several Paterson police officers.
eLitigation
Another of my earliest priorities was the advancement of our eLitigation capabilities. I recognized during my time in private practice that the government had fallen far behind the pace of the private sector when it came to efficiently receiving, processing, and using electronic evidence. At my request, our Office became one of the first USAOs to participate in an EOUSA pilot program designed to revolutionize and modernize our eLitigation program. This program was such a success that members of our office and EOUSA won a Director’s Award for it in 2020, and led to Daniel Shapiro, Deputy Chief of the Criminal Division, being named as one of the co-chairs of the nationwide eLitigation initiative that followed and seeks to replicate our success.
Medicare Strike Force
When I rejoined the Office in 2018, the District of New Jersey was the only federal judicial district that appeared on the top 10 list of healthcare fraud hotspots maintained by the Fraud Section of the Department of Justice, but lacked a DOJ Medicare Strike Force. I acted quickly to change that, and in August 2018, then-head of the Criminal Division Brian Benczkowski and I announced the formation of a Medicare Strike Force in New Jersey. Since that time, the Strike Force has doubled in size, and now comprises four DOJ Trial Attorneys and a Chief. The Strike Force attorneys have worked cases both separately and in tandem with our Healthcare Fraud and Opioids AUSAs on healthcare fraud enforcement matters across the state.
With the DOJ Medicare Strike Force, there are now 170 federal prosecutors resident in the District of New Jersey.
* * *
Upon United States Attorney Carpenito’s departure, First Assistant U.S. Attorney, Rachael A. Honig, will serve as Acting U.S. Attorney under the Vacancies Reform Act until a replacement is named.
Ms. Honig first joined the United States Attorney’s Office as an Assistant U.S. Attorney in 2003. She has served in various supervisory roles in the office, including Deputy Chief of the Criminal Division and Counsel to U.S. Attorney Paul Fishman, before departing for a legal position in the private sector. Upon returning to the office as United States Attorney, Carpenito appointed Ms. Honig his First Assistant U.S. Attorney. She is only the second woman to serve as the First Assistant and the first since 1983. Now, Ms. Honig will be the second woman in the 232-year history of this office to be its chief federal law enforcement officer.
“Throughout my tenure, Rachael has been my partner and principal advisor on everything that I do,” Carpenito said. “I am extremely proud and honored that she will be the Acting U.S. Attorney when I leave. The office and its legacy could not be in better hands.”
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Two Georgia women charged with bribing former Supervisor in DeKalb County’s Tax Commissioner’s OfficeRead the Press Release
ATLANTA – Lesbia Lily Gonzalez Moreno and Ailin Michelle Maldonado have been charged with paying bribes to Gerald D. Harris, a former Supervisor in DeKalb County’s Tax Commissioner’s Office, in exchange for Harris unlawfully registering vehicles.
“Moreno and Maldonado allegedly paid multiple bribes to register illegally vehicles without the necessary documentation,” said U.S. Attorney Byung J. “BJay” Pak. “Whether you offer a bribe or take a bribe, corruption betrays the trust of our citizens in government and will subject you to federal prosecution.”
“When public officials take or pay bribes, they are tarnishing the reputations of every government official,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal, state and local partners will do everything in our power to arrest and punish those who violate the public’s trust in hopes of restoring it.”
“Bribing government officials in exchange for official acts undermines the government’s integrity and its ability to effectively serve its citizens. Today is the first step in holding Moreno and Maldonado accountable for their actions. The DeKalb County District Attorney's Office, along with its law enforcement partners, remains committed to prosecuting anyone who engages in such activity,” said District Attorney Sherry Boston, Stone Mountain Judicial Circuit.
“The Georgia Department of Revenue was proud to assist our federal partners in the course of this investigation. The Department’s Motor Vehicle Division is responsible for motor vehicle tag and title processing and registration statewide. Our duties include ensuring that there is integrity throughout this process and so we will continue to work diligently with both our federal and local partners to enforce the law and maintain the public trust.” David Curry, Georgia State Revenue Commissioner.
“We continue to support the efforts of law enforcement officials to root out illegal and unethical behaviors by persons in positions of public trust,” said DeKalb Tax Commissioner Irvin Johnson. “I applaud the work of our office staff and our partners in law enforcement who quickly isolated this illegal activity and brought those involved to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia, responsible for the billing and collection of property taxes, processing of Homestead Exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County, Georgia.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner North Office’s clerks who processed motor vehicle registrations and renewals for customers. As a supervisor, Harris generally interacted with customers only if a dispute existed between clerks and customers. Similarly, based on his supervisory role, the Motor Vehicle Division did not issue Harris a cash drawer or a credit card terminal, nor was Harris responsible for processing transactions or payments with customers.
From at least May 2019 to November 8, 2019, Moreno and Maldonado repeatedly paid Harris bribe payments to register unlawfully vehicles for owners without presenting a valid Georgia driver’s license or identification card. Under state law, a vehicle owner could not register a vehicle or receive a license plate unless they presented a valid Georgia driver’s license or identification card at the time of application. Nevertheless, in exchange for bribe payments, typically $200 per vehicle, Harris unlawfully registered and obtained license places for owners identified by Moreno and Maldonado. During this period, Moreno and Maldonado each gave Harris thousands of dollars in bribe payments.
On July 14, 2020 Harris pleaded guilty to federal program bribery and blackmail and was sentenced to two years in prison.
Lesbia Lily Gonzalez Moreno, 46, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Ailin Michelle Maldonado, 24, of Norcross, Georgia, made an initial appearance before a U.S. Magistrate Judge in Denver, Colorado. Moreno was indicted by a federal grand jury on nine counts of honest services wire fraud on December 1, 2020. That same day, Maldonado was indicted by a federal grand jury on seven counts of honest services wire fraud in a separate indictment.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.
Assistant U.S. Attorney Nicholas Hartigan is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three San Francisco Mission District Norteño Gang Members Charged with Racketeering Conspiracy Involving Murders and Attempted Murder and Weapons ViolationsRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco charged Fernando Madrigal, AKA “Nando,” Alvaro Reina Cordero, AKA “G-Boy,” and Oscar Guadron Diaz, AKA “Cutty,” in a superseding indictment with charges of a racketeering conspiracy involving three murders and a shooting; the use and the discharge of a firearm during violent offenses; and the possession of a machinegun, announced United States Attorney David L. Anderson, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
In the original indictment filed August 20, 2020, the defendant Madrigal, 22, of San Francisco, was identified as a member of a street gang known as the San Francisco Mission District (SFMD) Norteños and charged with the July 8, 2019, shooting murder in the Mission District of a 15 year old who was mistaken as a rival gang member.
In the superseding indictment unsealed December 11, 2020, the federal grand jury charged Madrigal and two others, Reina Cordero, 23, of Daly City and Guadron Diaz, 21, of Oakland, with charges of firearm violence and of engaging in a racketeering conspiracy that involved committing multiple violent acts to support the SFMD Norteño gang, of which they are alleged to be members. Norteño gang members work together to support their gang by acts such as “hunting” to find and kill members of rival gangs, armed robberies, shootings, and other violence, all of which enhances the gang’s reputation as being strong, powerful, and dominant. Norteño gang members also commit crimes to enhance the financial strength of their gang, such as drug trafficking, theft, and firearms trafficking.
The racketeering conspiracy charge against the three defendants Madrigal, Reina Cordero, and Guadron Diaz describes the violent acts the defendants engaged in as part of and in furtherance of the conspiracy to support their Norteño gang.
The superseding indictment charges that on or about January 23, 2018, Reina Cordero and Guadron Diaz, with others, murdered one victim and attempted to murder a second victim, who are identified in the superseding indictment as Victim-1 and Victim-2, respectively.
The superseding indictment alleges that the attack occurred at approximately 5:11 pm near Leese Street and Richland Avenue, an intersection near Mission Street in San Francisco, while vehicle traffic and pedestrians were nearby. Multiple gunshots were fired during the attack.
The superseding indictment alleges Reina Cordero and Guadron Diaz targeted and murdered Victim-1 because they believed he associated with a rival Sureño gang. Victim-2, who was with Victim-1, suffered a gunshot wound to the face but survived.
The superseding indictment also charges that on July 12, 2018, Madrigal, with others, murdered Victim-3. The superseding indictment alleges that on the date of July 12, 2018, Victim-3’s car was located unattended near Candlestick Park in San Francisco. Days later, Victim-3’s cell phone was recovered near the San Mateo Bridge. It had blood on it. Over a year later, on February 20, 2020, tree trimmers found human remains in a wooded area in Oakland. The body’s skull was missing but located later, on or about March 25, 2020. The remains were submitted for DNA comparisons and determined to be those of Victim-3. Information from Victim-3’s cell phone indicates that Madrigal had arranged to meet Victim-3 at Candlestick Park, claiming he wanted to buy marijuana from the victim.
The superseding indictment further charges the murder of July 8, 2019 – charged earlier in the original indictment – in which Madrigal, with others, shot and killed Victim-4. The superseding indictment details that this murder occurred just after midnight and within two blocks of the 24th Street and Mission Street BART station in San Francisco. Police identified the 15-year old murder victim by a student identification card in his pocket and determined that he lived in the area claimed by Army Street. The superseding indictment alleges Madrigal targeted Victim-4 because Madrigal believed Victim-4 was associated with the Army Street gang. Nine rifle casings were recovered from the scene. Immediately after the murder on July 8, Madrigal and others allegedly drove to the Bernal Dwellings Apartments, which is claimed by the Army Street gang as its territory, and fired another shot from the same gun used in the murder, and immediately thereafter led San Francisco Police Department officers on a high-speed chase down Highways 101 and 280 before getting away near John Daly Boulevard.
The superseding indictment also charges Reina Cordero and Guadran Diaz together in a separate count with the crime of the use of a firearm in the murder of Victim 1 and in another count charges them with the discharge of a firearm in the attempted murder of Victim-2. The superseding indictment also separately charges Madrigal with the use of a firearm in the murder of Victim-3 and in another count charges Madrigal with the use of a firearm in the murder of Victim-4.
The superseding indictment further charges Guadron Diaz with possession of a machinegun on January 25, 2018.
Reina Cordero was arrested and made his initial appearance on these charges in federal court on December 11, 2020. He remains in custody and is set for a detention hearing on December 18. Guadron Diaz went into FBI custody last night and made his initial appearance today in federal court before United States Magistrate Judge Laurel Beeler. He remains in custody, and his next appearance is scheduled on December 18 for a detention hearing. Madrigal remains in federal custody and is scheduled for his next appearance on December 17.
A superseding indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The following chart outlines the charges and maximum sentences:
Fernando Madrigal,
AKA “Nando”
18 U.S.C. § 1962(d) – Racketeering Conspiracy
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-3
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-4
Death or life imprisonment
Alvaro Reina Cordero, AKA “G-Boy”
18 U.S.C. § 1962(d) – Racketeering Conspiracy
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-1
18 U.S.C. §§ 924(c)(1)(A) and 2 – Discharge of a Firearm in Furtherance of the Attempted Murder of Victim-2
Death or life imprisonment
Oscar Guadron Diaz,
AKA “Cutty”
18 U.S.C. § 1962(d) – Racketeering Conspiracy
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-1
18 U.S.C. §§ 924(c)(1)(A) and 2 – Discharge of a Firearm in Furtherance of the Attempted Murder of Victim-2
8 U.S.C. §§ 922(o) – Possession of a Machinegun
Death or life imprisonment
The maximum sentences are reflected above; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The United States Attorney’s Office Organized Crime Gang Strike Force is prosecuting this case. The prosecution is the result of a multi-year investigation by the FBI, together with San Francisco Police Department’s Gang Task Force and Homicide Detail
The United States Reaches a Settlement with the United Auto Workers Union to Reform the Union and End Corruption and FraudRead the Press Release
DETROIT – United States Attorney Matthew Schneider announced that an agreement has been reached with the United Auto Workers Union (UAW) to resolve the office’s findings of fraud and corruption within the UAW.
Schneider was joined in the announcement by UAW International President Rory Gamble.
Today, the United States filed an anti-corruption and anti-fraud civil lawsuit against the UAW in federal district court seeking equitable relief to bring about reform and oversight of the union. Also today, the parties jointly filed a proposed Consent Order setting forth the terms of a settlement of the lawsuit. Under the terms of the proposed settlement, the Court would appoint an Independent Monitor who would have the authority to exercise disciplinary powers within the UAW, to investigate possible fraud or corruption within the union, and to seek discipline against UAW officers and members before a UAW Trial Committee, or before an Independent Adjudications Officer also appointed by the Court. The Monitor’s oversight of the union would last for six years, with a possible early termination if the Monitor were to find that his or her work is complete and the UAW no longer needs the Monitor’s services, or extension if the Monitor or the parties feel that a longer period is appropriate. Besides the Monitor, the UAW will conduct a binding and secret-ballot referendum of its membership, overseen by the Monitor and the Department of Labor, to determine whether to change the UAW’s election method from the current delegate system to a direct election model, where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board. Through the referendum, members would decide whether the UAW’s constitution would be changed to provide for a direct election system in the union, sometimes referred to as “one member, one vote,” starting in the 2022 election cycle. The parties have jointly proposed the referendum so that all of the men and women of the UAW—and not the government—can decide the method to elect the union’s leaders. The costs associated with the Monitor would be borne by the UAW. The Monitor’s duties would not include any involvement in the collective bargaining process or the day-to-day administration of those contracts, absent any indication of corruption or fraud. The UAW’s board would continue to oversee collective bargaining negotiations and enforcement going forward.
The proposed settlement fully and finally resolves the criminal and civil investigation of the UAW as an entity. The UAW also agrees to resolve a tax investigation by making a payment of $1.5 million to the Internal Revenue Service in connection with administrative fees that the union received from the three joint training centers that were operated with the three car manufacturers. In addition, the UAW has already paid back over $15 million to the training centers for improper chargebacks that the union received from two of the training centers. This money will be used by joint programs for the health and safety of auto workers.
The civil complaint filed today in the United States District Court for the Eastern District of Michigan was brought pursuant to the federal civil anti-corruption and anti-fraud statute (18 U.S.C. § 1345), which was designed by Congress to empower courts to intervene and provide injunctive and equitable relief to eliminate fraud in order to serve the public interest. The civil lawsuit was not filed pursuant to the federal anti-racketeering RICO law because the investigation by the United States did not uncover any involvement by organized crime or the mafia in the operations of the UAW. Instead, the civil complaint sets forth in detail a series of corrupt and fraudulent acts by former officers and board members of the UAW, as well as executives of Fiat Chrysler Automobiles. The criminal investigation by the United States revealed an extensive and long-lasting effort by two former UAW presidents and their underlings to embezzle over $1.5 million in UAW money for their personal benefit through a series of fraud schemes. The investigation also uncovered a scheme by one former UAW vice president and two other high-level UAW officers to demand and accept over $2 million in kickbacks from contractors to the joint UAW-GM training center involving multi-million dollar contracts for watches, backpacks, and jackets. The civil complaint alleges that high-level Fiat Chrysler executives paid bribes to, and engaged in embezzlement with, two former UAW vice presidents and other UAW officials amounting to over $3.5 million. In total, fifteen UAW officials and Fiat Chrysler executives have been convicted thus far during the criminal investigation.
United States Attorney Schneider said, “The men and women of the UAW deserve honest and faithful leaders dedicated to serving the best interests of the membership. Today’s settlement provides independent oversight to investigate and eliminate corruption within the union. It also brings real democratic change to the union by giving the membership the opportunity to decide for themselves whether to institute a direct election system. I am truly thankful to President Rory Gamble for his good faith willingness to press for real reform within the union.”
UAW President Rory Gamble said, “Today’s agreement builds upon the many reforms that the UAW has initiated and put in place ourselves over the past 13 months. This civil resolution brings to a close the government’s investigation and is testament to the hard work that has been done to make the necessary structural and cultural changes.
Under our current leadership, the UAW has proactively weeded out individuals who put their personal benefit over our members’ interests and who abused their positions of trust to defraud our Union and our membership. Those individuals have been charged internally and permanently expelled from the Union.
Over the past year, the UAW’s International Executive Board has also devoted an extraordinary amount of time, attention, and resources to significantly overhauling and strengthening both our financial and ethical controls – all to ensure that no one in our Union will have the ability to repeat these misdeeds of the past.
The entire leadership of the UAW embraces the involvement of a Monitor for a period of time who will provide an extra and independent set of eyes on our Union’s financial and disciplinary processes, and provide complete assurance to our members that the reforms we have initiated take permanent root. We are committed to making the Monitor’s job a boring one, by doing everything we can to make sure there are no financial or ethical misconduct issues to monitor.
As I said upon taking office, my overriding goal is to deliver a clean, reformed and ethical union to my successor. Today’s collaborative agreement with the government ensures that we are well on our way toward achieving that goal.“
“Today’s settlement affirms the U.S. Department of Labor Office of Inspector General’s commitment to protect union workers and the financial integrity of labor organizations. We will continue to work with our law enforcement partners to root out systemic corruption and fraud involving unions,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“For unions to be effective, members must trust their leadership to do what is best for the entire union and not just for themselves. The 15 convictions obtained during this years-long investigation make it clear UAW leadership has been unworthy of its members’ trust for some time,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “This agreement is a result of the hard work done by the FBI, IRS, Department of Labor, and the US Attorney’s Office to investigate and prosecute the leaders who were engaged in corruption at the UAW. We remain proud of that work and hope the steps announced today will create a union worthy of the hard working men and women of the UAW.”
“Today marks a new beginning for the UAW and its members,” said Sarah Kull, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Detroit Field Office. “The UAW’s willingness to accept oversight confirms its commitment to eliminate systemic corruption within the union and regain the trust of its members.”
“Rarely since widespread corruption among the labor movement led to multiple Congressional investigations, numerous indictments and convictions, and strict new federal laws, have there been so many indications of widespread embezzlement, kickbacks, extortion, and graft. I am pleased that the Office of Labor-Management Standards was able to help bring an end to this exploitation of hardworking union members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “The Office of Labor-Management Standards stands ready to assist the Monitor and the Adjudications Officer in carrying out their duties and to help usher the UAW forward into this new chapter.”
The fifteen individuals convicted of fraud and corruption crimes include former UAW Vice President Joseph Ashton (30 months in prison) former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 months). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former senior UAW official Jeffrey Pietrzyk, former UAW Region 5 Director and UAW Board member Vance Pearson, former UAW Midwest CAP President Edward “Nick” Robinson, and former UAW President Dennis Williams.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
Syracuse Postal Carrier Charged with Discarding MailRead the Press Release
SYRACUSE, NEW YORK – Tanner Brown, 24, of Sharon Springs, New York, has been charged by indictment with one felony count of detaining and delaying U.S. mail, announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office.
Brown was arraigned today in federal court in Syracuse, before United States Magistrate Judge Thérèse Wiley Dancks and was released pending a jury trial to be scheduled in the future. The indictment alleges that Brown, while working as an employee of the United States Postal Service, detained and delayed mail intended for delivery between January 1, 2019, through July 24, 2019, in Onondaga County, New York.
The charge filed against Brown carries a maximum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the United States Postal Service-Office of Inspector General, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Sussex County Man Charged with Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man will make his initial court appearance today on charges of fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, U.S. Attorney Craig Carpenito announced.
Azhar Sarwar Rana, 30, of Newton, New Jersey, is charged by complaint with one count of bank fraud and one count of money laundering. Rana was arrested Dec. 12, 2020, after he booked a same-day flight to Pakistan; he made his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III and was detained without bail.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s alleged misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with an approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The count of bank fraud carries a maximum potential penalty of 30 years year in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater; the count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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 charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Stoughton Man Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A Stoughton man with ties to the Orchard Gardens housing development in Roxbury pleaded guilty today in federal court in Boston to drug trafficking charges.
Dashawn Matthews, 31, pleaded guilty to distribution and possession with intent to distribute fentanyl and cocaine base (also known as crack cocaine). U.S. District Court Judge William G. Young scheduled sentencing for April 6, 2021.
During an investigation into drug trafficking and violence in the Orchard Gardens housing development, a cooperating witness and an undercover police officer made eight purchases of fentanyl, crack cocaine or both from Matthews. In total, between May and August 2019, Matthews distributed approximately 120 grams of fentanyl and 98 grams of crack cocaine. Most of the sales took place a short distance away from the Orchard Gardens housing development.
The charge of distribution and possession with intent to distribute fentanyl and cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Smuggler of Protected Sea Cucumbers Sentenced to Six Months in CustodyRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – December 14, 2020
SAN DIEGO – Tijuana resident John Jaimes Torres was sentenced in federal court today to six months in custody for smuggling protected sea cucumbers valued at more than $60,000 into the United States.
In November of 2019, Torres was discovered with 101 undeclared packages of sea cucumbers, totaling 145 kilograms, concealed in, under, and behind toolboxes in the bed of his truck. The sea cucumbers were of the species Isostichopus fuscus, which is protected under the Convention on International Trade in Endangered Species (CITES). In order to lawfully import these sea cucumbers, a CITES import/export permit and CITES certificate of origin was required, as well as an import/export license from the U.S. Fish and Wildlife Service, none of which Torres possessed.
As noted in court proceedings, in addition to the sea cucumbers, Torres possessed four cell phones. A search of these phones revealed evidence of prior smuggling events. For example, in July of 2019, Torres delivered more than 20 bags of sea cucumbers to a storage unit in the San Diego area. He sent a photo of the sea cucumbers in the storage unit to his client.
The search of the phones also indicated that Torres was an all-service smuggler, crossing food products, alcohol, medications and cigarettes in addition to the sea cucumbers, for profit. At the time he crossed the border, Torres was in possession of $1,600 in cash. In addition to the custodial sentence, Torres was also ordered to make restitution of $10,000 to the government of Mexico as compensation for the loss of its natural resources. Torres was ordered to self-surrender to begin serving his sentence on or before February 12, 2021.
“Scientists tell us that sea cucumbers play a critical role in keeping coral reef and other tropical ocean ecosystems healthy,” said U.S. Attorney Robert Brewer. “Unfortunately the black market for sea cucumbers is thriving, making these cases against smugglers even more important.” Brewer praised prosecutor Melanie Pierson and agents with U.S. Fish and Wildlife Service, Office of Law Enforcement and Homeland Security Investigations and Customs and Border Protection for their excellent work on this case.
“The unlawful commercialization of living marine faunae, such as CITES-protected sea cucumbers, not only harms the individual species, but it promotes the destruction of ocean ecosystems that other wildlife depend on for survival,” said special agent in charge Dan Crum. “Today's sentencing sends a message that our law enforcement agents and prosecutors will continue to investigate, prosecute and bring to justice any violators who illegally exploit wildlife for profit.”
“The illegal sea cucumber trade is a real problem, and illicit trafficking in protected species fuels crime and decimates protected wildlife populations,” said Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations. “This arrest and conviction demonstrates our commitment to work with our law enforcement partners to protect threatened and endangered species and bring justice to the criminals that seek to profit from their exploitation.”
DEFENDANT Case Number 19cr4848-W
John Jaimes Torres Age: 52 Tijuana, Mexico
SUMMARY OF CHARGES
Count 1
Conspiracy – Title 18, U.S.C., Sec. 371
Maximum penalty: Five years in prison and $250,000 fine
Counts 2-5
Smuggling/Importation Contrary to Law – Title 18, U.S.C., Sec.545
Maximum Penalty: Twenty years in prison and $250,000 fine
AGENCY
U.S. Fish and Wildlife Service, Office of Law Enforcement
Homeland Security Investigations
Customs and Border Protection
Six Charged in Frequent Flier FraudRead the Press Release
Six men have been charged with stealing millions of airline frequent flier miles, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Wojciech Borkowski (43, of Zgierz, Poland), Terran Oliver (51, of Allen, TX), Semaj Lee (55, of Oklahoma City, OK), Derrick Booker (49, of Spencer, OK), Yusuf Siddique (30, of Folsom, CA), and Stanley Benton (42, of Los Angeles, CA) on conspiracy to commit wire fraud in August 2019.
The lead defendant, Mr. Borkowski, was arrested in Poland in May 2020. Following a successful extradition request, he was handed over to FBI custody on Friday morning, and flown from Warsaw to Dallas over the weekend. He made his initial appearance before Magistrate Judge Renee Harris Toliver Monday morning.
According to the indictment, Mr. Borkowski allegedly hacked into consumers’ airline miles accounts, then used the compromised accounts to book flights for unsuspecting passengers who’d purchased travel through Mr. Oliver, Mr. Lee, Mr. Booker, Mr. Siddique, and Mr. Benton.
The U.S.-based passengers would send their requested itinerary and personal information, including names and dates of birth, to one of the five men, who would then send that information, along with a money order, to Mr. Borkowski. Mr. Borkowski would then book the passenger’s flight with fraudulently obtained miles and send the PRN number back to the men, who would transmit it to the passengers to generate a boarding pass.
The conspiracy involved the loss of millions of earned airline miles.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty.
If convicted, Mr. Borkowski and his coconspirators each face up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The extradition from Poland was secured through the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Sioux Falls Man and Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man and woman convicted of Conspiracy to Distribute a Controlled Substance were sentenced on November 16, 2020, and December 7, 2020, respectively, by U.S. District Judge Karen E. Schreier.
Darren Anthony Hendrix, age 29, was sentenced to 196 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rachel Anne Cooke, age 38, was sentenced to 60 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hendrix and Cooke were indicted by a federal grand jury on March 10, 2020. Hendrix pled guilty on August 26, 2020. Cooke pled guilty on September 15, 2020.
The conviction stemmed from incidents beginning at an unknown date and continuing until about January 9, 2020, when Hendrix, Cooke, and other co-conspirators intentionally conspired and obtained 500 grams or more of methamphetamine and distributed it to others in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force, the Department of Homeland Security, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Hendrix was immediately turned over to the custody of the U.S. Marshals Service.
Cooke has been allowed to self-report to the designated BOP facility by January 28, 2021.
Sioux Falls Man Sentenced for being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on December 7, 2020, by U.S. District Judge Karen E. Schreier.
Curtis Ronald Rabenberg, age 39, was sentenced to 33 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rabenberg was indicted by a federal grand jury on July 20, 2020. He pled guilty on September 14, 2020.
The conviction stemmed from an incident on or about November 19, 2019, when Rabenberg sold a stolen handgun to a pawn shop in Sioux Falls. Rabenburg had previously been convicted of a felony and was prohibited from possessing any firearms. He stole the firearm from a girlfriend and sold it for cash to pay a debt he owed for drugs.
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 the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Rabenberg was immediately turned over to the custody of the U.S. Marshals Service.
Seven Charged in Largest Meth Seizure in Warren County HistoryRead the Press Release
BOWLING GREEN, Ky. – Seven defendants have been charged in a conspiracy to deal a large quantity of methamphetamine in the Bowling Green area, announced United States Attorney Russell Coleman.
“Relationships matter especially in law enforcement, when collaboration is needed to defend our families from the volume of poison that traffickers are pouring into West Kentucky,” said U.S. Attorney Russell Coleman. “That is exactly why we opened a fully-staffed office of federal prosecutors in Bowling Green earlier this year, to work with some of the finest lawmen and women in our Commonwealth to better protect Southcentral Kentucky.”
“This case resulted in the largest crystal meth seizure in Warren County history. These cases are not possible without a team effort of our state, local and federal partners,” said Tommy Loving, the Executive Director of the Bowling Green/Warren County Dug Task Force. “Our local detectives partnering with the FBI shut down a major supplier of crystal meth and his drug trafficking organization. The US Attorney’s office worked with us from the early stages of this case to help bring it to fruition. The Bowling Green Police, Kentucky State Police, Warren County Sheriff’s Office, and WKU Police all participated in the joint investigation with the FBI.”
According to the indictment, beginning June 11, 2020, and continuing to on or about August 30, 2020, the seven defendants: Tyrecus J. Crowe, George Sanchez, Andre M. Graham, Michael D. Padilla, Raymond Derouse Jr., Jeremy Quezada, and Brandon Cherry, conspired to possess with intent to distribute methamphetamine. Derouse, Quezada, and Cherry all face additional counts for possession with intent to distribute a controlled substance: methamphetamine.
An accompanying affidavit in support of a federal criminal complaint gives more details surrounding the alleged conduct. According to the document, on July 24, 2020, the Texas Department of Public Safety (DPS) stopped a white Chevrolet Tahoe for speeding. A driver and two passengers occupied the Tahoe. The driver consented to have the DPS search the vehicle. That consent search uncovered approximately 40 pounds of suspected crystal methamphetamine hidden in a black bag. The search also revealed a rental agreement between the rental company and Tyrecus Crowe. The DPS detained the driver and.contacted the Drug Enforcement Administration (DEA). A special agent with the DEA met the driver and advised the driver of his rights. After receiving his Miranda warnings, the driver agreed to speak with the DEA special agent. The driver explained he was driving the rented car from California to Bowling Green, Kentucky to deliver the crystal methamphetamine to Tyrecus Crowe. The driver stated Crowe rented the vehicle and let the driver use it for this trip. The driver further stated this was his second trip to California to pick up crystal methamphetamine for Crowe. The first trip occurred approximately one week prior. At the end of that trip, the driver successfully delivered approximately 25 pounds of crystal methamphetamine to Crowe's residence in Bowling Green.
During a July 26, 2020 interview, the driver stated that during both trips, Crowe provided the driver with cash to deliver in California. Once in California, the driver met George Sanchez at a pre-determined location in Los Angeles, California. Sanchez met the driver, then the two traveled together in Sanchez's vehicle to a residence relatively close to the initial meeting location. Sanchez and the driver hand counted the money, then Sanchez weighed the money on a scale. The driver did not remember how much money he transported the first trip, but Crowe gave the driver $105,000 in cash during this second trip. The driver gave Sanchez the $105,000 and Sanchez then gave the driver the crystal methamphetamine and drove him back to the driver's vehicle.
If convicted at trial, the defendants face no less than 10 years and no more than life in federal custody. The United States has also filed notice to seek forfeiture from the defendants named to include:$57,000 in cash, a residence in Bowling Green, 2008 Ford Mustang, 2012 Nissan Altima, 2001 Impala, and a 2015 Maserati Ghibli.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
The case is being prosecuted by Assistant United States Attorney Mark Yurchisin of the U.S. Attorney’s Bowling Green Branch Office. The case is being investigated by the Warren County Drug Task Force, and the Federal Bureau of Investigation Louisville Field Office.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Sacaton Man Sentenced to 7 Years for Habitual Domestic Assault and Possessing Methamphetamine for DistributionRead the Press Release
PHOENIX, Ariz. – Last week, Steven Malcolm Johns, 34, of Sacaton, Arizona, was sentenced by U.S. District Judge Michael T. Liburdi to 5 years in prison for Habitual Domestic Assault and 7 years in prison for Possessing Methamphetamine with Intent to Distribute. The sentences will run concurrently, and be followed by four years of supervised release.
On June 27, 2019, Johns assaulted the mother of his child after previously being convicted of multiple domestic violence offenses. Johns was arrested on August 22, 2019, and found to be in possession of at least 30 grams of methamphetamine. Johns is an enrolled member of the Gila River Indian Community.
The Gila River Police Department conducted the investigation in this case. Raynette Logan, Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-00959-PHX-DTL
RELEASE NUMBER: 2020-109_JohnsFor 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.Rapid City Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on December 7, 2020, by U.S. District Court Judge Jeffrey L. Viken.
Melanie Vance, age 37, was sentenced to seven years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately July 2019 to late December 2019, methamphetamine was brought to South Dakota from Nevada by others. Vance then dispersed the methamphetamine to others for use or distribution.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Vance was immediately returned to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine and two counts of Possession of Methamphetamine with Intent to Distribute was sentenced on December 14, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Daniel Gray Eagle, age 39, was sentenced to 188 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 $300.
Gray Eagle was indicted by a federal grand jury on December 10, 2019. He was found guilty after a three-day federal jury trial on September 24, 2020.
The conspiracy conviction stemmed from a plot between January 1, 2017, and February 7, 2020, wherein Gray Eagle knowingly and intentionally conspired with others to distribute and possess with intent to distribute over 500 grams of methamphetamine in South Dakota. Gray Eagle routinely traveled to Rapid City to acquire large amounts of methamphetamine, which he distributed in Eagle Butte, South Dakota.
The first count of Possession of Methamphetamine with Intent to Distribute arose from a high-speed car chase with law enforcement in the southwest corner of the Cheyenne River Sioux Indian Reservation on January 22, 2018. During the chase, Gray Eagle instructed a passenger to throw a pill bottle containing 22 grams of methamphetamine out of the car. The methamphetamine was recovered, and Gray Eagle was taken into custody after crashing the car in a field. The second count arose from a foot pursuit and arrest of Gray Eagle on March 1, 2018, in Eagle Butte. After Gray Eagle was arrested on a tribal warrant, a search of his person revealed three baggies containing a small amount of methamphetamine in his pants pocket as well as a cell phone containing drug-related messages.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force; the Cheyenne River Sioux Tribe Law Enforcement Services; the Rapid City Police Department; the South Dakota Division of Criminal Investigation; the City of Faith Police Department; the Drug Enforcement Administration; the Bureau of Indian Affairs, Division of Drug Enforcement; and the South Dakota National Guard. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Gray Eagle was immediately remanded to the custody of the U.S. Marshals Service.
Randolph County man admits to transporting stolen propertyRead the Press Release
ELKINS, WEST VIRGINIA – Travis Charles White, of Kerens, West Virginia, has admitted to charges related to taking stolen items across state lines, U.S. Attorney Bill Powell announced.
White, 43, pled guilty to one count of “Interstate Transportation of Stolen Property.” White admitted to taking more than $16,000 of stolen U.S. Savings Bonds from West Virginia to Colorado. The crime occurred in February 2017 in Randolph County.
White faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Princeton Woman Sentenced to 20 Years in Federal Prison for Conspiracy to Distribute Child PornographyRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that Elizabeth Kaye Haway, 43, of Princeton, was sentenced to the maximum penalty of 20 years in federal prison for conspiracy to distribute child pornography. Upon completion of her prison sentence, the defendant will serve a 25 year term of supervised release. Haway also was ordered to pay $42,900 in restitution to the child victim.
“Twenty years in prison for an abhorrent crime that inflicted lifelong trauma on a young child,” said United States Attorney Mike Stuart. “We will do everything within our power to keep offenders like Haway away from West Virginia’s children. After Haway completes the state prison sentence she is currently serving, she then will spend the next two decades in federal prison.”
Haway previously admitted that she began talking with codefendant Randall Peggs, of Wheeling, on Facebook in November 2018. Over the course of several months, Haway and Peggs conspired to distribute child pornography of Victim 1, a 5-year-old female minor child. The majority of their communications occurred on Facebook Messenger and conversations focused on Haway’s desires to touch and sexually violate Victim 1 while recording it to send to Peggs. Peggs encouraged Haway to record and send him nude videos of Victim 1 and told her that he would watch anything she sent him. Ultimately, Haway recorded a video of child pornography depicting a nude Victim 1 and sent the video to Peggs twice via Facebook in February 2019.
Haway currently is serving a lengthy state prison sentence for first degree sexual assault, sexual abuse and incest involving the same minor female child. Peggs previously pled guilty on August 3, 2020 to a federal child pornography charge arising out of this incident. His sentencing is scheduled for January 11, 2021.
This case was investigated by the Mercer County Sheriff’s Department, the Federal Bureau of Investigation (FBI) and the FBI’s Violent Crimes Against Children Task Force. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Kristin F. Scott handled handling the prosecution.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:19-cr-00304.
Follow us on Twitter: SDWVNews and USAttyStuart
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Pittsburgh Woman Sentenced for Role in DS44 Gang’s Drug TraffickingRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced in federal court to time served and three years’ supervised release on her conviction of narcotics trafficking in connection with a large-scale investigation, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman imposed the sentence on Theresa Somerville, 50.
In connection with Somerville’s earlier guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. In addition to communications about drug trafficking between Christopher Highsmith, the leader of the organization, and many of his coconspirators, agents made numerous seizures of fentanyl, heroin, and other drugs from members of the organization, as well as maintained critical physical surveillance of Highsmith’s drug-trafficking activities.
Somerville was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. She was one of 38 individuals charged in the offense, including Highsmith, as well as her son, Ronald Williams, and her daughter, Ronika Somerville. Somerville admitted to personally packaging and distributing quantities of fentanyl and heroin mixtures at her son’s direction, as well as acknowledged that she separately distributed cocaine and crack cocaine. Somerville had served approximately one month in prison pending her entry of a guilty plea in this case.
Prior to imposing sentence, Judge Stickman stated that given the defendant’s lack of criminal history, her willingness to accept responsibility for her conduct, and her poor health, a sentence that did not include an additional term of imprisonment was appropriate.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for leading the multi-agency investigation of this case, which included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department for the investigation leading to the successful prosecution of Somerville.
Pine Ridge Woman Charged with Twenty FeloniesRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge South Dakota, woman has been indicted by a federal grand jury for seven counts of Assault Resulting in Serious Bodily Injury, seven counts of Assault with a Dangerous Weapon, four counts of Maiming, one count of Health Care Fraud, and one count of Obtaining Controlled Substances by Fraud.
Frenchone One Horn, a/k/a Frenchone Kills In Water, age 40, appeared before U.S. Magistrate Judge Daneta Wollmann on December 2, 2020, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 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 of the Assault Resulting in Serious Bodily Injury, Assault with a Dangerous Weapon and Maiming charges. The maximum penalty upon conviction for the Health Care Fraud charge is 5 years in prison, and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty upon conviction for the Obtaining Controlled Substances by Fraud charge is 4 years in prison, and/or a $250,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to One Horn assaulting five individuals with rocks in 2018 and 2019 at Pine Ridge for the purpose of committing health care fraud. These assaults resulted in serious bodily injury and required three of the victims to suffer finger amputations. One Horn also committed health care fraud by giving fraudulent information concerning the intentional assaults in order to obtain services and controlled substances, namely Hydrocodone.
The charges are merely accusations and One Horn is presumed innocent until and unless proven guilty.
The investigation is being conducted by the US Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, and Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
One Horn was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 9, 2021.
Pierre Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on December 14, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Tiffany Kay Frazier, n/k/a Tiffany Kay Castiglione, age 27, was sentenced to 60 months in federal prison, followed by four years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Castiglione was indicted by a federal grand jury on September 10, 2019. She pled guilty on September 28, 2020.
The conviction stemmed from a conspiracy beginning in at least January 2017, continuing to September 10, 2019, wherein Frazier was involved with several others to distribute between 50 and 200 grams of methamphetamine in and around the Gettysburg and Pierre and Ft. Pierre communities in South Dakota.
This case was investigated by the Pierre Police Department, the Mobridge Police Department, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Frazier will self-report to the custody of the U.S. Marshals Service on January 5, 2021.
Peter D. Leary Named Acting U.S. Attorney for the Middle DistrictRead the Press Release
MACON, Ga. – Peter D. Leary has been named as the Acting U.S. Attorney for the Middle District of Georgia. Acting U.S. Attorney Leary previously served as the First Assistant U.S. Attorney since 2018.
Acting U.S. Attorney Leary has served the citizens of the Middle District of Georgia as a prosecutor since 2012. Since joining the United States Attorney’s Office (USAO), he has worked as the office’s Anti-Terrorism Advisory Council (ATAC) coordinator, its Computer Hacking and Intellectual Property (CHIP) prosecutor and as the First Assistant U.S. Attorney. In 2019, he received the Anti-Defamation League’s SHIELD award with FBI and Department of Justice partners, and he shared the 2018 International Association of Chiefs of Police/Thomson Reuters Award for Excellence in Criminal Investigation with the FBI and GBI.
“It is a tremendous honor to serve the citizens of the Middle District of Georgia in this new role,” said Acting U.S. Attorney Leary. “I pledge to continue the great legacy of this office by working closely with our law enforcement partners to ensure that justice is served with integrity and a steadfast dedication to upholding the rule of law.”
As Acting U.S. Attorney, Mr. Leary is the top-ranking federal law enforcement official in the Middle District of Georgia, which covers 70 of Georgia’s 159 counties, includes Albany, Athens, Columbus, Macon and Valdosta, and has a population of approximately 2,045,000 people. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, fraud, firearms, illegal gangs and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Raised in Watkinsville, Georgia, Mr. Leary received his B.A. and J.D. from University of Virginia, where he was a Jefferson Scholar. After law school, Mr. Leary clerked for U.S. District Judge Hugh Lawson of the U.S. District Court for the Middle District of Georgia. Following his clerkship, Mr. Leary joined the Federal Programs Branch of the DOJ through its Honors Program, where he worked extensively with the Intelligence Community. In addition to his work at the United States Attorney’s Office, Mr. Leary serves as adjunct faculty at Mercer University, teaching Criminal Justice.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.