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9 February 2021
MS-13 member sentenced to 40 years in prisonRead the Press Release
COLUMBUS, Ohio – A local man was sentenced in federal court in Columbus today to serve 480 months in prison for participating in a racketeering conspiracy on behalf of the transnational criminal organization MS-13.
Pedro Alfonso Osorio-Flores, 41, of Columbus, took part in the mid-2015 murder of Carlos Serrano-Ramos, the November 2015 murder of 17-year-old high school student Wilson Villeda, and the December 2016 murder of Salvador Martinez-Diaz.
“Osorio-Flores was one of the most active, loyal, and violent MS-13 members in Columbus, and he was engaged in nearly every aspect of the gang’s criminal activity in this district,” said U.S. Attorney David M. DeVillers. “For this defendant, 40 years could very well be a life sentence. His appalling conduct deserves nothing less.”
Court documents detail a letter the defendant wrote and sent to one of his co-defendants in February 2020 as one example of Osorio-Flores’ loyalty to MS-13. In the letter, the defendant freely admits to being a member of MS-13 since age 13; threatens to bury a former lover alive if he ever finds her; makes threats against ‘snitches’, the police, and the government; and reaffirms his belief that MS-13 does, and will continue to ‘control the entire world.’ In the same letter, the defendant composed two different songs as an homage to MS-13 and a slight to the victims of his offenses, whom he brags about ‘butchering’ and ‘dragging [] to the hole.’
The defendant, also known as “Smokey,” is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
According to court documents, in summer 2015, Osorio-Flores and other conspirators beat and stabbed Serrano-Ramos to death before placing his body in a shallow grave in the woods in Innis Park.
In the murder of Wilson Villeda, Osorio-Flores and others attacked and killed the victim with a machete and buried his body in a shallow grave near Serrano-Ramos’s remains in Innis Park.
In December 2016, Osorio-Flores surveilled murder victim Martinez-Diaz at the Resolute Athletic Complex before following him home. He provided location updates to fellow MS-13 members so that they could shoot and kill the victim upon his arrival home.
Osorio-Flores pleaded guilty in September 2020 to one count of conspiracy to commit racketeering.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Lake Station Man Sentenced to 36 Years in PrisonRead the Press Release
HAMMOND-Lajuan Fitzpatrick, 29, of Lake Station, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon to 36 years in prison following his conviction at trial in November 2019 of conspiracy to possess with intent to distribute marijuana and discharging a firearm causing death during this drug trafficking crime, announced Acting U.S. Attorney Gary T. Bell.
The evidence at trial showed that on December 2, 2013, in Gary, Indiana, Fitzpatrick and his co-conspirators attempted to rob individuals they believed were marijuana dealers. The co-conspirators intended to resell the marijuana. Fitzpatrick fired his gun as gunfire broke out during the course of the attempted robbery. Ronaldo Correa, Jr., 22, who was coming to the aid of his victim neighbors, was shot to death.
“This investigation is an excellent example of the importance of partnership among law enforcement in holding dangerous criminals accountable,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “ATF is committed to working alongside our partners to keep our communities safe.”
“Dealing drugs and violence go hand-in-hand and this sentence means this individual will no longer be able to bring more harm to our Hoosier communities,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Working in collaboration with our partners we will continue to work to identify the worst of the worst and ensure they are held accountable for their actions.”
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, East Chicago Police Department, Federal Bureau of Investigation, Gary Police Department, Hammond Police Department, Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The case was prosecuted by Assistant U.S. Attorneys David J. Nozick and Caitlin M. Padula.
Knox County Man Sentenced to 22 Years for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Corbin, Ky., man, John Helton, was sentenced to 264 months or 22 years in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after previously being convicted of armed methamphetamine trafficking and possession of a firearm by a convicted felon.
The evidence at trial established that, on June 9, 2019, deputies with the Knox and Laurel County Sheriff’s Offices searched the residence that Helton shared with his wife, Anita, seizing over 300 grams of crystal methamphetamine and four firearms, including three that were loaded. Helton then directed his wife to go to his mother’s residence, to get money to bond him out of jail. When law enforcement searched that residence, they found over $8,000 secreted in a closet. A search of a child’s playhouse on the property also revealed over 800 grams of additional crystal methamphetamine, and another firearm. The Kentucky State Police had made a controlled purchase of methamphetamine that was arranged with Helton, but delivered by his wife.
Anita Helton pled guilty to conspiring with Helton to distribute methamphetamine and possessing firearms in furtherance of that offense. Anita Helton was sentenced to 38 months, followed by five years of supervised release.
Under federal law, Helton must serve 85 percent of his sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; Lt. Phillip Burnett, Acting Commissioner, Kentucky State Police; Sheriff Mike Smith, Knox County Sheriff’s Department; and Sheriff John Root, Laurel County Sheriff’s Department, jointly announced the sentencing.
The investigation was conducted by the DEA, KSP, the Knox County Sheriff’s Office, and the Laurel County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the United States Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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Killeen Man Indicted for Discharging a Firearm on Fort HoodRead the Press Release
In Waco today, a federal grand jury returned an indictment against 28-year-old former U.S. Army soldier Ricardo Manuele Davila-DeJesus for discharging a firearm while on Fort Hood over the weekend, stated U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The indictment charges Davila-DeJesus with aggravated assault with a dangerous weapon. According to court documents, on February 6, 2021, the defendant became intoxicated and got into an argument with several individuals inside the barracks. The argument continued outside when the defendant pulled out a .45 caliber pistol and discharged his firearm in the direction of a soldier who, fearing for his life, had retreated back into the barracks. Other individuals who were at the scene managed to subdue and disarm the defendant.
Upon conviction, Davila-DeJesus faces up to 10 years in federal prison. He remains in federal custody pending a detention hearing scheduled for 1:30 p.m. on February 11, 2021, before U.S. Magistrate Judge Jeffrey C. Manske in Waco.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case is part of Operation Undaunted representing federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities. The FBI together with Ft. Hood Military Police Investigations investigated this case. Special Assistant U.S. Attorney Major Aaron J. Salter is prosecuting this case.
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Jury Convicts Jacksonville Man of Narcotics and Firearms OffensesRead the Press Release
NEW BERN, N.C. – Yesterday a federal jury convicted a Jacksonville man on charges of Conspiracy to Distribute and Possess With the Intent to Distribute One (1) Kilogram or More of a Mixture or Substance Containing a Detectable Amount of Heroin, a Quantity of Marijuana, and Five (5) Kilograms or More of Cocaine; Distribution of a Quantity of Heroin, and Aiding and Abetting; Possess With the Intent to Distribute One Hundred (100) Grams or more of a Mixture or Substance Containing a Detectable Amount of Heroin, a Quantity of Marijuana and a Quantity of Cocaine; Possession of Firearms in Furtherance of a Drug Trafficking Crime; and Possession of Firearms by a Convicted Felon.
According to court records and evidence presented at trial, Austin Kyle Lee, also known as Justin, 30, of Jacksonville sold heroin to dealers in Jacksonville on multiple occasions, beginning in 2016. Through further investigation, it was determined that Lee, who was on parole for a felony drug conviction out of New York, was maintaining a house next door to his probation-official residence.
Officers searched Lee’s stash house on Ridge View Drive and found over $210,000.00 in cash, 354.4 grams of cocaine, 159.72 grams of heroin, and 118.95 grams of marijuana. Additionally, a loaded Glock 19 9mm pistol, Kel-Tec 9mm pistol, and Jiminez Arms .22 pistol with obliterated serial number were located in the house. Over the course of approximately two years, Lee distributed around 5 kilograms of heroin, 20 kilograms of cocaine, and 1.75 pounds of marijuana.
Lee faces a maximum penalty of life imprisonment when sentenced in July 2021.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Onslow County Sheriff’s Office, Jacksonville Police Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Duplin County Sheriff’s Office, and Federal Bureau of Investigation investigated the case and Assistant U.S. Attorneys Lucy Brown and Robert Dodson are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-00153-FL-1.
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Indian Cancer Drug Manufacturer Agrees to Plead Guilty and Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) has agreed to plead guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection and pay $50 million in fines and forfeiture, the Department of Justice announced today.
In a criminal information filed in federal court in the District of Nevada and unsealed today, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution, FKOL agreed to plead guilty to the misdemeanor offense, pay a criminal fine of $30 million, and forfeit an additional $20 million. FKOL also agreed to implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By hiding and deleting manufacturing records, FKOL sought to obstruct the FDA’s regulatory authority and prevent the FDA from doing its job of ensuring the purity and potency of drugs intended for U.S. consumers,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “FKOL’s conduct put vulnerable patients at risk. The Department of Justice will continue to work with FDA to prosecute drug manufacturers who obstruct these inspections.”
“Pharmaceutical companies that obstruct FDA inspections jeopardize patient safety,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Maintaining the integrity of records and data is a critical part of drug manufacturing, and our office will continue prosecuting those that obstruct FDA inspections by destroying records or other means.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines. Any attempt to obstruct or interfere with these inspections threatens the public health,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “We will continue to aggressively investigate and present any such obstruction for prosecution.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. The government alleges that prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the premises and deleted spreadsheets that contained evidence of the plant’s violative practices.
This case is being prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Department of Justice’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada. The FDA’s Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter.
Indian Cancer Drug Manufacturer Agrees to Plead Guilty and Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
LAS VEGAS, Nev. – Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) has agreed to plead guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection and pay $50 million in fines and forfeiture, the Department of Justice announced today.
In a criminal information filed in federal court in the District of Nevada and unsealed today, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution, FKOL agreed to plead guilty to the misdemeanor offense, pay a criminal fine of $30 million, and forfeit an additional $20 million. FKOL also agreed to implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By hiding and deleting manufacturing records, FKOL sought to obstruct the FDA’s regulatory authority and prevent the FDA from doing its job of ensuring the purity and potency of drugs intended for U.S. consumers,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “FKOL’s conduct put vulnerable patients at risk. The Department of Justice will continue to work with FDA to prosecute drug manufacturers who obstruct these inspections.”
“Pharmaceutical companies that obstruct FDA inspections jeopardize patient safety,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Maintaining the integrity of records and data is a critical part of drug manufacturing, and our office will continue prosecuting those that obstruct FDA inspections by destroying records or other means.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines. Any attempt to obstruct or interfere with these inspections threatens the public health,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “We will continue to aggressively investigate and present any such obstruction for prosecution.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. The government alleges that prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the premises and deleted spreadsheets that contained evidence of the plant’s violative practices.
This case is being prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Department of Justice’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada. The FDA’s Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter.
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Houston man indicted in Laredo for smuggling 119 illegal aliensRead the Press Release
LAREDO, Texas – A 32-year-old man has been charged with conspiracy to transport illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Originally charged by criminal complaint, a Laredo grand jury returned an indictment today against Brodrick Keith Rhodes. He will appear before U.S. a magistrate judge in the near future.
The charges allege that on Jan. 12, authorities stopped Rhodes after he approached the Freer Border Patrol checkpoint driving a semi-truck and refrigerated trailer. He had claimed he was hauling lettuce and produced a bill of lading, according to the complaint.
However, law enforcement allegedly noticed discrepancies and that Rhodes appeared nervous. Further, the refrigerated trailer was set to 30 degrees but the internal temperature was at 68, according to the charges.
After a K-9 alerted to possible presence of contraband in the cargo area of the trailer and a subsequent inspection, authorities ultimately discovered 119 illegal aliens, according to the complaint.
Rhodes allegedly claimed he worked for a business in La Porte, but the bill of lading indicated he was transporting lettuce from a Laredo produce company to a location in Sugar Land. The business indicated Rhodes had never been employed with them nor do they transport outside the Houston area, according to the charges. Further, the complaint alleges the other two companies confirmed they had no record of the shipment.
According to the charges, some of the transported aliens said they had been taken to and told to get in the truck. It left soon after and did not stop until it reached the checkpoint, according to the allegations.
If convicted, Rhodes faces up to 10 years in prison and a maximum possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Honduran National Sentenced to More Than Twenty Months’ Imprisonment for Illegal ReentryRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Angel Roberto Lopez (35, Honduras) to 21 months in federal prison for illegal reentry into the United States after deportation. Roberto Lopez had pleaded guilty on November 16, 2020.
According to court documents, Roberto Lopez had previously been deported from the United States to Honduras on five occasions. On September 4, 2015, Roberto Lopez was convicted of felony battery with great bodily harm after deportation, a felony offense. Following his conviction, Roberto Lopez illegally reentered the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Terry B. Livanos.
Homestead Heroin Dealer Pleads Guilty to Federal Cocaine Conspiracy ChargeRead the Press Release
PITTSBURGH – Dorianne Harris pled guilty to conspiring to distribute at least 500 grams of cocaine between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Harris, age 27, formerly of Homestead, PA, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on June 8, 2021, at 10:00 a.m. Harris was on federal supervised release for a prior heroin-trafficking conviction when he committed the cocaine-trafficking crime to which he pled guilty.
The law provides for a sentence of at least 5 years and up to 40 years in prison and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Hartford Man Pleads Guilty to Gun Possession and Drug Distribution ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GLADSTONE BENJAMIN, JR., 29, of Hartford, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley to drug distribution and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in April 2019, Hartford Police made two controlled purchases of marijuana from Benjamin at his Collins Street residence. On April 23, 2019, investigators conducted a court-authorized search of Gladstone’s residence and found a loaded Taurus 9mm handgun with an extended clip; two loaded Taurus .45 caliber handguns; a loaded semiautomatic handgun that did not contain a make, model or serial number stamp; a Remington Arms 12 gauge shotgun with an unreadable serial number; more than 1,000 rounds of loose and boxed ammunition, and distribution quantities of heroin and marijuana.
Benjamin’s criminal history includes state felony convictions for firearm and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Benjamin pleaded guilty to one count of possession with intent to distribute heroin and marijuana, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. Judge Dooley scheduled sentencing for May 3, 2021.
Benjamin is released on a $75,000 bond pending sentencing.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Gang Member Sentenced to 46 Months in Federal Prison for Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that Anthony Esposito, also known as “Mafia,” 52, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea to 46 months of imprisonment, followed by five years of supervised release, for narcotics trafficking and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf. Intercepted communications also revealed Reyes was acquiring and trafficking firearms.
The investigation revealed that Reyes supplied Esposito, also a member of Los Solidos, with fentanyl that Esposito sold to his own customers in the New Haven area.
Esposito was arrested on June 17, 2019.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes, Esposito and 13 associates with various narcotics trafficking and firearm possession offenses.
Esposito has been detained since his arrest. On August 6, 2020, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl.
Esposito’s criminal history spans 30 years and includes convictions for firearm, drug and violent crime offenses, including a 1998 federal conviction for possession of a firearm by a convicted felon, and a 2003 state conviction for first degree sexual assault.
Reyes has pleaded guilty and awaits sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former St. Thomas Student Sentenced to Prison for Hoax Bomb ThreatsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RAY GHANSHAM PERSAUD, 22, to one year and one day in prison for calling in a bomb threat to the University of St. Thomas on September 17, 2019. PERSAUD, who pleaded guilty on September 22, 2020, was sentenced earlier today by Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed with the court, on three separate occasions – April 17, 2019; August 20, 2019; and September 17, 2019 – PERSAUD, who was at the time an undergraduate student at the University of St. Thomas, called in to the University’s main switchboard and falsely stated that there was a bomb on the St. Paul campus. The bomb threats caused substantial fear and disruption to the University, including the evacuation of campus buildings and a childcare center, re-routing of traffic on nearby streets, and a full response by the University’s Public Safety personnel. PERSAUD admitted that on the dates he called in the bomb threats he had failed to complete his homework and was unprepared for class.
This case was the result of an investigation conducted by the FBI and the St. Paul Police Department.
This case was being prosecuted by Assistant U.S. Attorney John Docherty.
Defendant Information:
RAY GHANSHAM PERSAUD, 22
Blaine, Minn.
Convicted:
- Using an instrumentality of interstate commerce to maliciously make a threat to damage and destroy any building, by means of explosives, 1 count
Sentenced:
- One year and one day in prison
- Two years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Ku Medical Center Employee Pleads Guilty to Embezzling More Than $500,000Read the Press Release
KANSAS CITY, KAN. – Michael Tae Kim Ahlers, 49, of Lenexa, Kansas, has pleaded guilty to federal charges of bank fraud and filing a false tax return related to a scheme to embezzle money from the University of Kansas Medical Center (KUMC).
“Michael Ahlers abused his position as the Administrative Officer for an academic and research medical center, stealing more than $500,000 to enrich himself,” said First Assistant U.S. Attorney Duston Slinkard. “His guilty plea should send a message that, no matter your position, you cannot profit illegally or violate the trust of the company who hires you.”
“During this investigation, state and federal partners worked extremely well together to make certain these criminal acts did not go unpunished,” said KBI Director Kirk Thompson.
“For six years, Mr. Ahlers embezzled more than half a million dollars for his personal benefit, while taking steps to circumvent the University’s Finance and Administration Department,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “This type of financial fraud is a felony offense that carries severe consequences and we are committed to protect the integrity of the tax system and innocent victims that suffer a monetary loss.”
“Today’s plea is a reminder that the United States Secret Service is committed to aggressively investigating and pursuing financial crimes,” said Brandon C. Bridgeforth, Special Agent in Charge, U.S. Secret Service Kansas City Field Office. “This defendant abused his position for his own personal benefit by taking advantage of his position of trust and the University of Kansas Medical Center. This investigation is a testament to the strong partnership between the U.S. Secret Service, Internal Revenue Service, Kansas Bureau of Investigation and the U.S. Attorney’s Office.”
According to First Assistant U.S. Attorney Slinkard, the charges, and other information presented in court: Ahlers was the Administrative Officer for the Occupational Therapy (OT) Education Department at the KUMC in Kansas City. As the Administrative Officer, Ahlers was responsible for all administrative tasks and financial transactions for the OT Education Department, including budget management, purchasing, billing of external entities, and grant management. From at least 2009 and continuing to 2015, Ahlers used that position to steal more than $500,000 to pay for his personal expenses.
To conceal the fraud, instead of forwarding certain KUMC funds to the Institutional Finance and Administration Department, Ahlers deposited the funds into a KUMC Credit Union account. Using the KUMC Credit Union account allowed Ahlers to avoid oversight that would have happened in the normal course, by which funds are deposited into a state-controlled bank account, revenue recorded in the university financial system, and funds allocated to department accounts that are reconciled on a monthly basis. Ahlers also created invoices outside of the normal system, which prevented others within KUMC from learning about the KUMC Credit Union account and Ahlers’ use of it for his personal gain.
Ahlers failed to include embezzled funds on his federal tax returns, resulting in a tax loss for the years 2009 through 2015 of $104,246.
Sentencing is scheduled for May 13, 2021 at 1:30, before U.S. District Judge Daniel D. Crabtree.
This case is being investigated by the Kansas Bureau of Investigation, IRS Criminal Investigation, and the United States Secret Service.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
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Former Attorney Sentenced to 1 ½ Years for Stealing Retainer Fees from Clients Seeking Child Adoption ServicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Steven G. Dubin, 66, of Holland, PA, was sentenced to 18 months in prison, three years of supervised release, and ordered to pay $74,800 restitution by United States District Court Judge Gene E.K. Pratter for fraud stemming from a scheme to steal his clients’ retainer fees and use them for other expenses.
In June 2018, the defendant pleaded guilty to wire fraud. Dubin was an attorney licensed to practice in Pennsylvania who offered services to prospective adoptive parents. From December 2010 to February 2013, Dubin stole clients’ retainer fees which he falsely represented would be held in an escrow account, to be spent on those clients’ future expenses in the adoption process. In addition, Dubin began operating his own “Ponzi scheme,” using retainer fees from new clients to pay himself for legal fees or expenses related to other clients. Even after he was disbarred in 2012, Dubin continued to accept new retainer fees from clients. In some cases, he still represented himself to be an attorney licensed to practice law.
“The process of adopting a child can be long, complicated, and emotionally draining, and prospective parents often rely on professionals like adoption attorneys to navigate the bureaucratic hurdles,” said Acting U.S. Attorneys Williams. “Here, Steven Dubin took advantage of this position of trust to steal money from unsuspecting clients who thought he was going to help them adopt a child, even after being disbarred. His behavior is a despicable violation of professional ethics.”
“Steven Dubin had no compunction about lying to his clients, doing so deliberately and repeatedly,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “These people were depending on him to shepherd them through the adoption process and hopefully bring a child into their lives. Instead, he spent their money as his own and hid his eventual disbarment, abandoning all pretense of professional ethics and personal morality. Finally, he’s being held accountable for those years of clear-cut fraud.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Engineer Pleads Guilty to More Than $10 Million of COVID-Relief FraudRead the Press Release
A Texas engineer pleaded guilty today for filing fraudulent bank loan applications seeking more than $10 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas, Inspector General Laura S. Wertheimer of the Federal Housing Finance Agency (FHFA) – Office of Inspector General (OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) – OIG, Inspector General Hannibal “Mike” Ware of the SBA-OIG and Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Shashank Rai, 30, of Beaumont, pleaded guilty to one count of making false statements to a bank. He was charged on May 13, 2020, with violations of wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
As part of his guilty plea, Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. Rai made two fraudulent claims to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). In the application submitted to the first lender, Rai sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.
According to court documents, the Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020.
According to court documents, materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million, which is the amount of money that Rai allegedly sought from the second lender.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA-OIG, FDIC-OIG, SBA-OIG, and USPIS. Assistant Chief L. Rush Atkinson and Trial Attorney Lou Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld for the Eastern District of Texas are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Elizabeth City Man Sentenced for Firearm Offense After Running from PoliceRead the Press Release
GREENVILLE, N.C. – Khyree Banks of Elizabeth City was sentenced today to 40 months in prison for possessing a firearm and ammunition as a convicted felon. Banks’ 5 prior state felony convictions and 20 prior misdemeanor convictions include multiple instances of breaking and entering, larceny, and felony possession of cocaine.
According to court documents and statements made in court, on December 27, 2018, officers of the Elizabeth City Police Department were on patrol just before 2 p.m., when they initiated a traffic stop on a dark 2002 Mercedes Benz for illegal window tint at the intersection of S Road St. and Shepard St.
As the car came to a slow roll, the rear passenger, Khyree Banks, jumped out of the car with a silver pistol in his hand and turned toward the officers. Banks lost his balance after stepping out of the car but caught himself by placing his firearm hand on the ground. He then turned and ran behind a building, and both officers chased him with their firearms drawn.
Banks looped around the building to the road, where he eventually followed commands to slow down and was detained. During the foot chase, the Mercedes had driven away. In the place where Banks had stumbled out of the car, officers found a firearm magazine with 10 .22 caliber bullets.
Officers asked Banks where the gun had gone, and he admitted that he had dropped it behind the building. In a grassy area by Banks’ flight path, officers found a Ruger .22 caliber semi-automatic handgun. It contained a second magazine loaded with 10 rounds.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Elizabeth City Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:19-cr-00011-BO.
El Salvadoran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Six TimesRead the Press Release
A man who illegally returned to the United States after being deported six times was sentenced today to one year in federal prison.
Rafael Gutierrez-Mancia, age 31, a citizen of El Salvador illegally present in the United States and residing in Storm Lake, Iowa, received the prison term after a guilty plea on October 15, 2020, to one count of illegal reentry into the United States after having been deported following a conviction for an aggravated felony.
At the guilty plea, Gutierrez-Mancia admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Gutierrez-Mancia was first deported in September 2009 following a conviction in the Iowa District Court for Buena Vista County for identity theft, an aggravated felony, where Gutierrez-Mancia worked using someone else’s name. In July 2011, Gutierrez-Mancia was convicted in Texas of illegally reentering the United States, a felony, and was deported a second time in January 2012. He was deported a third time in April 2013. In August 2013, Gutierrez-Mancia was convicted in Texas of illegally entering the United States, a misdemeanor, and deported a fourth time in October 2013. He was deported a fifth time in July 2014. In November 2014, Gutierrez-Mancia was convicted in Texas of illegally entering the United States, a misdemeanor, and deported a sixth time in January 2015. In July 2020, Gutierrez-Mancia came to the attention of immigration agents following his arrest under an alias on traffic charges in Franklin County, Iowa.
Gutierrez-Mancia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gutierrez-Mancia was sentenced to 12 months’ and one day imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gutierrez-Mancia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-57.
Dark Web Trafficker Pleads Guilty to Distributing OpioidsRead the Press Release
ALEXANDRIA, Va. – A Florida man pleaded guilty today to unlawfully distributing thousands of prescription opioid pills in exchange for over half a million dollars through the “dark web.”
According to court documents, between 2012 and 2020, Daren James Reid, 35, of Fort Lauderdale, used the dark web to distribute oxycodone. Under the monikers “Oxyflight” and “Imperial Royalty,” Reid sold over 12,000 oxycodone pills, the sales of which yielded a profit of over $500,000. Reid used dark web sites such as Silk Road, Wall Street, and Apollon to advertise and sell oxycodone pills of various strengths and prices. Reid utilized the U.S. Postal Service to illegally mail the pills to his customers across the U.S. in exchange for Bitcoin payments. Reid also possessed over one kilogram of oxycodone, morphine, and other pills in a storage facility in Florida.
“Reid preyed upon the vulnerabilities of others by illegally distributing over half a million dollars of highly addictive opioids through dark web markets,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA, along with its law enforcement partners, will continue to investigate and hold accountable individuals who pose a significant danger to our communities by placing profits over lives.”
Reid pleaded guilty to unlawful distribution and possession with the intent to distribute oxycodone. He is scheduled to be sentenced on June 1 and faces a maximum penalty of 20 years in prison for each of the counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Antonio J. Gomez, Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea.
Special Assistant U.S. Attorney Karolina Klyuchnikova is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-6.
Cruise ship passenger sentenced for attempting to strangle intimate partner while at seaRead the Press Release
GALVESTON, Texas – A 45-year-0ld resident of Watford City, North Dakota, has been ordered to prison for his conviction of assault within the special maritime and territorial jurisdiction of the United States, announced U.S. Attorney Ryan K. Patrick.
Hector Fernando Blanco pleaded guilty Jan. 17, 2020.
Today, U.S. District Judge Jeffrey Brown ordered Blanco to serve a total of 36 months in federal prison to be immediately followed by two years of supervised release.
At the time of his plea, Blanco admitted he attempted to strangle and suffocate a woman while aboard a cruise ship off the coast of Galveston. He acknowledged he had been dating and intimate with the victim.
“No excuse can justify Hector Blanco’s violent actions that turned a dream vacation into a dreadful nightmare for his victim,” said Special Agent in Charge Perrye K. Turner of the FBI. “I am extremely proud of FBI special agents in the Texas City Resident Agency and our victim specialists who provided compassionate support to the brave survivor who reported this crime.”
On Nov. 18, 2018, Blanco intentionally assaulted the victim in his cabin aboard a Royal Caribbean cruise ship. He placed his hand and then a bath towel over her mouth, then twisted a towel around her neck and dragged her on the floor of the cabin. Blanco tripped and she was able to run out of the cabin and report the incident to security personnel aboard the ship.
The assault occurred aboard the Liberty of the Seas, which at the time was a foreign vessel registered in the Bahamas. At the time of the assault, the cruise ship was located approximately 45 miles from Galveston in the Gulf of Mexico.
Blanco was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Convicted Felon Sentenced to 33 Months in Federal PrisonRead the Press Release
In Midland today, a federal judge sentenced 33-year-old Odessa resident Christopher Caswell to 33 months in federal prison for being a convicted felon who pointed a rifle at and threatened a driver, announced U.S. Attorney Ashley C. Hoff.
In addition to the prison term, U.S. District Judge David Counts ordered that Caswell be placed on supervised release for a period of three years after completing his prison term.
According to court documents, on August 29, 2020, Odessa Police officers responded to the 2700 block of Eisenhower Road in reference to a subject with a gun. The victim reported to police that while stopped at an intersection, he saw the defendant and another individual arguing in front of a residence. The defendant then approached the victim’s vehicle while pointing a rifle at the victim and telling him to mind his own business. The victim drove off and contacted police. Subsequently, officers confronted Caswell while he was walking southbound on Eisenhower Road holding a black rifle. Caswell dropped the Hi-Point 9 mm rifle and evaded officers on foot.
On September 17, 2020, members of the U.S. Marshals Service Lone Star Fugitive Task Force located Caswell and arrested him in Dallas. He has since remained in federal custody.
On November 4, 2020, Caswell pleaded guilty to the felon-in-possession charge. His criminal history reveals two prior state felony convictions in Odessa for evading arrest/detention.
The Odessa Police Department investigated this case. Assistant U.S. Attorney Monica Daniels prosecuted this case.
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 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.
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Connecticut Man Charged with Transportation and Interstate Travel with the Intent to Engage in Criminal Sexual ActivityRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Capozza, age 39, of Newington, Connecticut, was indicted on February 3, 2021, by a federal grand jury for transportation with the intent to engage in criminal sexual activity, and interstate travel with the intent to engage in a sexual act with a minor.
According to Acting United States Attorney, Bruce D. Brandler, the indictment alleges that between July and October of 2020, Capozza travelled to Pennsylvania in order to engage in a sexual act with a minor, and also transported the minor back to Connecticut and also Massachusetts in order to engage in criminal sexual activity.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI), the Omaha, Nebraska Police Department, and the United States Attorney’s Offices for the Districts of Connecticut and Nebraska. Assistant United States Attorney James Buchanan is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc and click on the tab "resources."
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Clinton Man Sentenced to Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER LUONG, 31, of Clinton, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for illegal possession of a firearm.
According to court documents and statements made in court, on February 14, 2020, law enforcement conducted a court-authorized search of Luong’s residence and found a stolen Smith and Wesson 9mm pistol, a loaded Glock .40 caliber pistol, and a large capacity magazine.
In 2012, Luong was convicted in state court of first degree unlawful restraint. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On September 17, 2020, Luong pleaded guilty to possession of a firearm by a convicted felon.
Luong, who is released on bond, is required to report to prison on March 16.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Clinton Police Department. The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Charlotte County Cyberstalkers Sentenced to PrisonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Bretton Howard Osborne (29, Punta Gorda) to 3 years and 8 months in federal prison for stalking and conspiracy to commit stalking. He was also ordered to complete 300 hours of community service.
Osborne’s co-defendant, Ian Douglas McGuire (30, Port Charlotte), was previously sentenced to 5 years in federal prison for the same offenses. Osborne and McGuire have also been ordered to pay victim restitution.
Osborne and McGuire had previously pleaded guilty.
According to court documents, between March 8, 2019, and June 27, 2019, McGuire and Osborne conspired together to stalk and harass victim “A.G.W.” Together they committed multiple acts of stalking using the U.S. Mail and the internet with the intent to injure, harass, and intimidate the victim, causing the victim to fear serious bodily injury. They also caused substantial emotional distress to the victim. Among other things, McGuire and Osborne posted videos of the victim on McGuire’s YouTube channel and pinned to those videos personal information of the victim. They also mailed items, including fecal matter and a dead kitten to the victim and ordered services, food, and materials to be delivered to her home that she did not authorize.
This case was investigated by the Charlotte County Sheriff’s Office, the Punta Gorda Police Department, the North Port Police Department, the Federal Bureau of Investigation, and the United States Postal Inspection Service. It was prosecuted by Chief Assistant United States Attorney Jesus M. Casas.
Carlisle Woman Indicted for Social Security FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Virginia Hayden, age 69, of Carlisle, Pennsylvania, was indicted on February 3, 2021, by a federal grand jury on 14 counts of wire fraud related to the theft of social security funds.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that Hayden failed to notify the Social Security Administration that her husband was missing and continued to receive his social security funds between 2011 and 2017. The total amount of the funds she improperly collected was $113,471. Hayden was charged with the murder of her husband in the York County Court of Common Pleas in April of 2019. Those charges are still awaiting trial.
The matter was investigated by the Social Security Administration’s Office of Inspector General. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to 240 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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California Attorney Arrested for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of DEREK JONES on charges of wire fraud and aggravated identity theft. As alleged in an Indictment unsealed today in Manhattan federal court, JONES, while licensed as an attorney in California, defrauded investors in businesses JONES controlled out of at least approximately $4.5 million. The case has been assigned to U.S. District Judge Loretta A. Preska. JONES, who was arrested this morning in California, will be presented later today before a magistrate judge in the Central District of California. Arraignment will be tomorrow before Judge Preska by teleconference.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Derek Jones not only failed to live up to the canons of the legal profession, he affirmatively lied to investors and defrauded them out of millions of dollars. As alleged, Jones lied about a real estate development opportunity on land he neither owned nor was developing, and he lied to investors to create the false impression that he had real businesses with real employees. Jones allegedly spent investors’ money on himself and his family, and to pay some investors in Ponzi-like fashion. Now, thanks to the FBI, Jones is in custody and facing federal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Jones solicited investments from various clients based on false representations of BlueRidge’s and Realize’s assets. In reality, while at least one of the companies held an account balance in the negative, Jones allegedly was using money received from the fraud to fund personal expenses to include private school tuition for at least one of his children. Investment fraud schemes are unfortunately all too common. Our efforts to bring the perpetrators to justice are as well.”
As alleged in the Indictment:[1]
From at least 2012 through at least 2019, JONES solicited and obtained investments for various companies and investment funds he controlled, including the purported real estate development and investment firm BlueRidge Realty (“BlueRidge”) and the purported venture capital firm Realize Holdings (“Realize”).
JONES routinely made materially false oral and written statements to induce victims to invest, including statements that lied about BlueRidge’s and Realize’s assets. For example, JONES falsely claimed that BlueRidge was developing a “resort village” on land it controlled in Washington State, when in fact neither BlueRidge nor JONES owned or controlled the property, let alone had begun developing a resort there. Additionally, JONES sent a potential Realize investor an altered bank statement showing a balance in a Realize bank account of more than $7 million – at a time when that bank account actually had a negative balance of approximately $268.71.
JONES defrauded investors out of at least approximately $4.5 million. He misappropriated investments and used the funds to, among other things, transfer money to himself or relatives, pay tuition for a private school attended by one or more of his children, and make Ponzi-like payments to other investors. To prolong and conceal the fraud scheme, JONES regularly told lies designed to avoid meetings with or inquiries from victims. For example, in explaining his failure to respond promptly to questions or his reason for postponing an upcoming meeting, JONES falsely told different investors, on different occasions, that one of his relatives was in poor health. JONES also used the names of other individuals – without those individuals’ authorization or knowledge – to communicate via email with investors and thus foster the illusion that JONES’s businesses were viable operations with real employees.
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JONES, 46, of San Marino, California, is charged with one count of wire fraud, which carries a maximum potential prison sentence of 20 years, and two counts of aggravated identity theft, each of which carries a mandatory consecutive prison sentence of two years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Abramowicz is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Buchanan Woman Pleads Guilty to Credit Card FraudRead the Press Release
ROANOKE, Va.- Patricia Mosely, a Buchanan, Virginia woman, pleaded guilty yesterday in U.S. District Court in Roanoke to multiple credit card charges, Acting United States Attorney Daniel P. Bubar announced.
Moseley, 61, waived her right to be indicted and pleaded guilty yesterday to three counts of access device fraud. At sentencing, Moseley faces a maximum statutory penalty of up to 10 years and/or a fine of up to $250,000.
According to court documents, in three separate instances, using credit card accounts opened by three individuals, CS, RC, and PJ, Mosely obtained merchandise from Best Buy on Valley View Boulevard in Roanoke, Virginia.
Specifically, on June 30, 2016, Mosley obtained $1,368 in merchandise from Best Buy on Valley View Boulevard in Roanoke, Virginia using the credit card account of PJ without their knowledge or consent.
On July 6, 2016, Mosely obtained $2,737 in merchandise using the credit card account of CS, without their permission or knowledge.
Mosely admitted to using the credit card accounts of CS, RC, and PJ to obtain $4,105 in merchandise from the same retailer, again without the permission or knowledge of the card holders.
The investigation of the case was conducted by the United States Secret Service, and the Virginia State Police. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Boston Gang Member Pleads Guilty to Cocaine Trafficking and Firearm PossessionRead the Press Release
BOSTON – A Boston gang member pleaded guilty today in federal court in Boston to a cocaine conspiracy and firearm possession.
Winston McGhee, 36, of Dorchester, pleaded guilty to conspiracy to distribute cocaine and cocaine base and being a felon in possession of a firearm. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 10, 2021. Under the terms of the plea agreement, the parties agreed to a sentence of 115 months in prison.
In June 2020, McGhee was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The second part of the investigation, which included McGhee, targeted large-scale drug suppliers and their associates, which included Boston street gang members. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
At the conclusion of the investigation, law enforcement executed search warrants at a “stash house” and McGhee’s residence, where McGhee was arrested, and recovered approximately $25,000 in cash and a firearm.
On Feb 2, 2021, co-defendant Eric Davis pleaded guilty to conspiracy to distribute and possess with intent to distribute 500 grams of more of cocaine and cocaine base and being a felon in possession of a firearm.
On the charge of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base, McGhee faces a sentence of up to 30 years in prison, at least six years and up to life of supervised release and a fine of up to $2 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Dennis White made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Beckley Woman Pleads Guilty to Drug ChargeRead the Press Release
HUNTINGTON, W.Va. –United States Attorney Mike Stuart announced that Breyanna Wilkerson, of Beckley, pled guilty to possession with intent to distribute heroin. Wilkerson faces up to 20 years in prison when sentenced on May 10, 2021.
“Wilkerson was caught in Huntington with 91 grams of heroin and fentanyl,” said United States Attorney Mike Stuart. “There is no doubt that by seizing these dangerous controlled substances, the excellent work of law enforcement prevented a number of overdoses.”
Wilkerson admitted that on May 2, 2019, officers searched her hotel room at the Days Inn on Route 60 in Huntington. Wilkerson told the officers everything in the room belonged to her. Officers found 91 grams of heroin and fentanyl in the nightstand.
The Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00205.
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Bank Robbery Lands Guthrie Man in Federal Prison for More Than 14 YearsRead the Press Release
OKLAHOMA CITY – Last week, BRANDON SCOTT NEWBERRY, 39, of Guthrie, was sentenced to serve 169 months in federal prison for bank robbery, announced U.S. Attorney Timothy J. Downing.
On June 3, 2020, a federal grand jury returned a one-count Indictment charging Newberry with the robbery of City National Bank and Trust, located in Oklahoma City.
According to court documents and public record, Newberry entered the bank on May 12, 2020. He then handed the teller a demand note, which included a warning that Newberry was armed. In response, the teller provided cash to Newberry. Later that day, Newberry was arrested after he surrendered to local law enforcement. Law enforcement recovered at the time of his arrest most of the stolen money.
On August 19, 2020, Newberry pleaded guilty to the Indictment.
On February 4, 2021, U.S. District Judge Scott L. Palk sentenced Newberry to serve 169 months in federal prison, followed by three years of supervised release. Judge Palk also ordered Newberry to pay $770 in restitution, representing the amount of stolen money not recovered by law enforcement. At the sentencing hearing, Judge Palk noted Newberry’s continued propensity to engage in criminal activity despite his prior felony convictions, including convictions of murder and robbery.
This case resulted from an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division, with assistance from the Midwest City Police Department and the Oklahoma City Police Department. Assistant U.S. Attorney Stan West prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Amherst Man Indicted for Threatening Members of Congress and State RepresentativeRead the Press Release
CONCORD –Ryder Winegar, 33, of Amherst was indicted by a federal grand jury on Monday and charged with six counts of threatening members of Congress and one count of threatening a New Hampshire State Representative, United States Attorney Scott W. Murray announced today.
Winegar was arrested on January 11, 2021 and is being detained pending trial.
The original complaint filed in court alleges that on December 16 and 17, 2020, Winegar left voicemails at the offices of six members of the United States Congress in the District of Columbia. In some of the messages, Winegar identified himself by name or identified his telephone number. The voicemails threatened to hang the members of Congress if they did not “get behind Donald Trump.” For example, in one message, Winegar allegedly said, “I got some advice for you. Here’s the advice, Donald Trump is your president. If you don’t get behind him, we’re going to hang you until you die.” According to the indictment, on December 14, 2020, Winegar also contacted a New Hampshire State Representative by email threatening to “pull him from his bed and hang him.”
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Capitol Police with assistance from the United States Marshals Service, U.S. Customs and Border Protection, the Federal Bureau of Investigation, the Amherst Police Department, and the New Hampshire Attorney General’s Office.
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Alleged shooter set to appear in federal courtRead the Press Release
VICTORIA, Texas – A 19-year old Bloomington man has been charged with assault on a federal officer and discharging a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Vazquez is expected to make his initial appearance before U.S. Magistrate Judge Jason B. Libby at 10 a.m. today in Corpus Christi.
The criminal complaint, filed Feb. 4, alleges law enforcement had attempted to arrest Vazquez at his residence on the afternoon of Feb. 3. They announced their presence and called out to him, according to the allegations.
The complaint alleges Vazquez then exited the location and immediately started firing a weapon at authorities before retreating inside the home. He appeared again with a pistol in his hand, according to the charges.
Law enforcement allegedly then returned fire, injuring Vazquez.
During the exchange, fragments of Vasquez’s gunfire allegedly hit the body of one of the authorities as well as the vehicle they were using for cover.
The complaint alleges Vazquez had fired a Smith and Wesson M&P40, .40 caliber semi-automatic pistol during the altercation.
If convicted, Vazquez faces up to 20 years in Federal Prison.
The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Rangers and U.S. Marshals Service are conducting the investigation with assistance from the Victoria County Sheriff’s Office and Victoria County District Attorney’s Office. Assistant U.S. Attorney Patti Hubert Booth is prosecuting this case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
After Nearly 23 Years with the Department of Justice, United States Attorney Deegan Announces RetirementRead the Press Release
United States Attorney Peter E. Deegan, Jr. of the Northern District of Iowa has announced his resignation effective midnight on Wednesday, February 17, 2021. Upon his departure from the Department of Justice, Mr. Deegan plans to join a private law firm based in the Midwest.
Mr. Deegan’s career as a federal prosecutor began in 1998 when he joined the Northern District of Iowa’s Sioux City branch office as a Special Assistant United States Attorney employed through the Iowa Attorney General’s Office. Mr. Deegan prosecuted methamphetamine manufacturers and traffickers as part of the Midwest High Intensity Drug Trafficking Area’s methamphetamine initiative. Starting in 1999, as an Assistant United States Attorney, he prosecuted a full variety of federal criminal cases from narcotics and violent crime to complex fraud, child sexual exploitation, and business crimes. Over the course of his career, Mr. Deegan served as a federal prosecutor in the Northern District of Iowa and the Eastern District of Michigan in Detroit. From early 2015 until his confirmation as United States Attorney in September 2017, Mr. Deegan served as the Chief of the Criminal Division in the Northern District of Iowa.
“I am truly grateful for the opportunity to serve as the United States Attorney for the Northern District of Iowa. Representing our nation has been the privilege of my lifetime and it has been an honor to have been entrusted with that responsibility,” Deegan said. “Of course, all of the many accomplishments of this office during my tenure are directly attributable to the extraordinary work of the attorneys and staff of the Northern District of Iowa. Their dedication and commitment to justice cannot be overstated. Nor would our accomplishments have been possible without the federal, state, and local law enforcement partners who dedicate their lives and risk their personal safety every day to make our communities safer. I will be forever humbled to have been part of the tremendous team we have in the Northern District of Iowa. I wish the Biden and Harris Administration the very best as it leads our nation forward.”
Below is a brief synopsis of some of the achievements of the U.S. Attorney’s Office during Mr. Deegan’s tenure as United States Attorney. Please refer to the district’s website at https://www.justice.gov/usao-ndia for a complete collection of press releases.
Violent Crime
During Mr. Deegan’s tenure, the office added two new prosecutors dedicated to violent crime. In order to prevent future acts of violence, the office prioritized prosecuting dangerous offenders who illegally possessed firearms or ammunition. In 2020, nearly half of the offenders charged in the district were involved in the illegal use or possession of guns.
Opioids and Methamphetamine Trafficking
The office also prioritized prosecuting those trafficking in opioids and methamphetamine. Between 2005 and 2017, the number of opioid related deaths in Iowa more than tripled, peaking in 2017 with 206 opioid deaths in the state. In response to the growing opioid problem, the office grew its partnership with the Cedar Rapids Police Department to continue the Eastern Iowa Heroin Initiative, funded by the federal Midwest High Intensity Drug Trafficking Area program. The initiative has a three-pronged approach: enforcement, prevention, and treatment. As a part of the initiative’s enforcement efforts, the U.S. Attorney’s Office prosecuted more than 100 defendants for felony-level opioid charges. Those prosecutions included charges for trafficking in heroin, fentanyl, and related drugs. A number of the prosecutions were for drug distributions that resulted in deaths. This initiative also provided communities across Iowa with drug awareness programs, first-responder trainings, and it highlighted the need for detoxification, treatment and other services. Among those services is increased access to naloxone, also known as Narcan, used to treat opioid overdoses.
Among the many opioid-related cases prosecuted during Mr. Deegan’s tenure was United States v. Samantha Jo Rogers. Rogers, who was a licensed occupational therapist, used her job to access medical records of thousands of people. She then used that information to enter and burglarize over a dozen homes in an attempt to steal opioids from elderly patients. As a result of the prosecution, Rogers was sentenced to federal prison and ordered to surrender her occupational therapy license.
At the same time, recognizing that methamphetamine remained a plague on communities in the district, the office also focused on prosecuting major-source methamphetamine traffickers. Those prosecutions included United States v. Monee Yodprasit, a drug trafficker in Sioux City, Iowa, who was sentenced to over 32 years in federal prison for receiving and distributing large quantities of methamphetamine while armed. During the investigation of Yodprasit, law enforcement seized over 20 pounds of methamphetamine, 20 grams of heroin, two pounds of cocaine, and two loaded firearms.
False Claims Act
During United States Attorney Deegan’s term, the office dedicated additional resources to civil enforcement of the False Claims Act. The office bolstered its affirmative investigatory practice to unmatched levels while becoming a favored environment for Qui Tam lawsuits. The office resolved numerous Qui Tam lawsuits of national significance, including a multidistrict resolution of $37.5 million with a large durable medical equipment manufacturer. The office also resolved several highly significant affirmative investigations under the False Claims Act, including settlements or judgments exceeding $1 million with an Iowa surgeon and a regional skilled nursing facility chain.
Elder Justice
The office also focused on protecting the most vulnerable victims in the district, including elderly individuals who are often targeted by fraud. Fraud targeting the elderly is uniquely unconscionable and harmful because of its potential to deprive elderly people of their dignity and quickly drain their life savings. The office used every available tool to address the problem and prosecuted dozens of defendants for their roles in defrauding the elderly. Such prosecutions included United States v. Howard Derby and Patti Derby. In that case, the Derbys stole hundreds of thousands of dollars from Howard Derby’s elderly mother by using powers of attorney to transfer money from her bank account purportedly to use for her benefit. Instead, the Derbys spent the money on themselves. After they had drained her account of money, the victim was no longer able to afford her assisted living facility. After moving out of the assisted living facility, the victim lost a significant amount of weight, broke her wrist, and was hospitalized. Both Howard and Patti Derby were sentenced to years in federal prison.
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8 February 2021
Wisconsin Man Sentenced to 25 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
A man who sexually exploited a child was sentenced today to 25 years in federal prison.
Caleb Durr, age 20, from Hazel Green, Wisconsin, received the sentence after an August 19, 2020 guilty plea to one count of sexual exploitation of a child. Evidence presented at the plea hearing and the detention hearing established that, in 2019, Durr used an iPhone to produce sexually explicit images of an eight-year-old girl in Dubuque. Evidence presented at the sentencing hearing established that defendant sexually exploited a second child and possessed child pornography.
Durr was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Durr was sentenced to 300 months’ imprisonment. A special assessment of $100 was imposed and Durr must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Waterloo Police Department, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-1010.
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U.S. Attorney’s Office in EDVA Recovers $242 Million in 2020 for Victims and in Criminal and Civil MattersRead the Press Release
ALEXANDRIA, Va. – Acting U.S. Attorney Raj Parekh announced today that the United States Attorney’s Office for the Eastern District of Virginia (EDVA) collected approximately $242,000,000 in criminal, civil, and asset forfeiture actions in Fiscal Year 2020 on behalf of private and government victims.
“It is an honor to serve with my colleagues in the Eastern District of Virginia, all of whom have supported each other with tremendous resolve as we face the many challenges of the ongoing pandemic together,” said Acting U.S. Attorney Raj Parekh. “Our criminal and civil recovery teams worked tirelessly during a very difficult year to make crime victims whole, use asset forfeiture to reclaim the illicit proceeds of crimes, and protect the public fisc. We will continue our firm commitment to preserving the principles of equality, equity, and justice for all as we uphold victims’ rights and protect our communities throughout 2021 and beyond.”
During FY2020, EDVA recovered approximately $242 million in criminal matters on behalf of crime victims and in civil matters where federal money was at stake. Of these recoveries, $22.3 million involved restitution for victims within EDVA’s criminal cases, and $41.1 million was collected through civil actions and settlements where the federal government was a victim, such as defense procurement fraud, healthcare fraud, and qui tam (whistleblower) cases, as well as the collection of agency debts and other related civil enforcement matters. The remaining $167.9 million was recouped civilly in joint matters with EDVA and the Justice Department’s Civil Division or various Department litigating components, working with other U.S. Attorneys’ Offices and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.
Working with DOJ partner agencies and divisions, EDVA also collected a total of approximately $10.6 million through asset forfeiture in FY2020. Of that amount, EDVA deposited over $8.3 million into the Justice Department’s Assets Forfeiture Fund in FY2020, while the other approximately $2.3 million was restored or remitted to victims. EDVA also used asset forfeiture statutes and processes to restrain an additional $13.6 million, which was ultimately returned directly to victims in lieu of forfeiture.
In addition to a team of legal support staff and contractors, EDVA’s asset recovery efforts are led by Deputy Chief of the Asset Recovery Unit for Financial Litigation Laura M. Grimes, Deputy Chief of the Asset Recovery Unit for Asset Forfeiture Kevin P. Hudson, Chief of the Asset Recovery Unit Jessica D. Aber, and Assistant U.S. Attorneys Janet Jin Ah Lee, Ron Fiorillo, and Annie Zanobini.
Civil recoveries are the result of litigation and debt collection efforts by attorneys, analysts, and contractors supporting the Affirmative Civil Enforcement (ACE) and Civil Rights Enforcement Units. Those efforts are led by ACE Unit Supervisor Gerard Mene and Assistant U.S. Attorneys Ilene Albala, Krista Anderson, Deirdre G. Brou, Robert Coulter, Steve Gordon, Garry Hartlieb, William Hochul, Robert P. McIntosh, Lauren F. Oberheim, Kristin S. Starr, and Clare P. Wuerker.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the federal government and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim; criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which then distributes the funds collected to federal and state victim compensation and assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected civil penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights, drug diversion, or environmental laws. In addition, civil debts were collected on behalf of various federal agencies, including the U.S. Department of Housing and Urban Development, Veterans Affairs, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The Justice Department, as a whole, collected more than $15.9 billion in civil and criminal actions in 2020. This amount is more than five times the approximately $3.2 billion appropriated budget for all 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It also includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.
U.S. Army major sentenced to three decades in federal prison for production of child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army major assigned to the U.S. Army Cyber Command at Fort Gordon, Ga., has been sentenced to 30 years in federal prison for producing child pornography.
Jason Michael Musgrove, 41, of Grovetown, was sentenced to 360 months in prison by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Musgrove also was ordered to pay restitution of $9,000 to the victims and to register as a sex offender.
There is no parole in the federal system.
“While the timing is entirely coincidental, it nonetheless bears noting that Musgrove’s sentence comes just days after two FBI agents in Florida were killed while attempting to search the home of a child pornographer,” said U.S. Attorney Christine. “The disturbing and despicable nature of such predators only increases their danger to the community, and Musgrove’s long sentence immediately makes the community safer.”
At the time of his December 2019 arrest, Musgrove was an Integrated Threat Operations Officer with Top Secret/Sensitive Compartmentalized Information clearance, assigned to the Army Cyber Joint Headquarters at Fort Gordon. Musgrove currently is facing administrative separation from the U.S. Army.
According to court testimony and documents, Musgrove admitted that he produced and attempted to share child pornography on the internet. His crimes were uncovered by the FBI.
“It is beyond comprehension that someone in a position sworn to protect American citizens would take advantage and traumatize vulnerable children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to protecting our children by identifying and apprehending predators who commit such abhorrent crimes.”
The investigation was conducted by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Tyler County Meth Dealer Guilty of Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Woodville, Texas, man has pleaded guilty to federal firearms and drug trafficking violations in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei today.
Christopher Dashawn Montoya, 26, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime today before U.S. District Judge Michael Truncale.
“The United States Attorney’s Office for the Eastern District of Texas remains committed to eliminating methamphetamine trafficking in our communities,” said Acting United States Attorney Nicholas Ganjei. “Our resolve is even greater in cases, such as here, where a drug dealer possesses firearms to aid his drug trafficking efforts.”
According to information presented in court, on December 1, 2019, Montoya was arrested at a Polk County residence on multiple outstanding warrants. A search of the residence resulted in the seizure of approximately one kilogram of methamphetamine, marijuana, a large amount of cash, a digital scale, and a firearm. A search of Montoya’s vehicle parked at the residence revealed a backpack containing another two firearms, and more illegal narcotics.
A federal grand jury returned an indictment charging Montoya with firearms and drug trafficking violations on July 1, 2020. As a result of his guilty pleas, under federal statutes, Montoya faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the Polk County Sheriff’s Office; the Woodville Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Drug Enforcement Administration (DEA) and prosecuted by Special Assistant United States Attorney Tommy L. Coleman.
Seven individuals indicted on federal firearms charges under agencies' collaborative effortRead the Press Release
SAVANNAH, GA: Seven defendants face federal felony firearms charges after indictment by a U.S. District Court grand jury in the Southern District of Georgia.
All of those charged are prohibited from possessing firearms because of prior felony convictions or illegal drug use. The cases are being investigated under the Department of Justice initiative targeting illegal firearms, and in coordination with the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF) and local law enforcement agencies.
“Getting illegally possessed firearms out of the hands of convicted felons is a high priority of our law enforcement partners,” said U.S. Attorney Bobby L. Christine. “This collaborative effort to enforce existing law makes our streets safer.”
In the past three years, more than 650 defendants were federally charged in the Southern District of Georgia for illegal firearms offenses – most often for carrying a firearm after having been convicted of a previous felony. The charge carries a penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system. Nationwide, more than 14,200 defendants were charged with federal firearms violations in the past year – 180 of them in the Southern District.
Those named in federal indictments from the February 2021 term of the U.S. District Court grand jury include:
- William Thomas Nealous III, 30, of Martinez, charged with Possession of a Firearm by a Convicted Felon and Possession of Methamphetamine.
- Julian Theophilus Moffett, 39, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
- Robert Kenneth Williams, 32, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
- Timothy Mario Mitchell, 23, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
- Deonte Brown, 26, of Port Wentworth, Ga., charged with Possession of a Stolen Firearm, and two counts of Possession of a Firearm by a Convicted Felon.
- Burney Cobb, 40, of Port Wentworth, Ga, charged with Possession of a Stolen Firearm; and two counts of Possession of a Firearm by a Convicted Felon.
- Clifford Pevey, 39, of Gainesville, Ga., charged with Possession of a Stolen Firearm, and Possession of a Firearm by a Convicted Felon.
The charge of Possession of a Firearm by a Convicted Felon carries a possible penalty upon conviction of up to 10 years in prison. There is no parole in the federal system.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
In addition to these cases, at least three defendants recently have appeared in court on firearms charges, including:
- Dominque Johnson, 32, of Augusta, sentenced to 60 months in prison, fined $1,500 and ordered to serve three years of supervised release upon completion of his prison term after pleading guilty to Possession of a Firearm by a Convicted Felon;
- Ivan Hughes, 35, of Augusta, sentenced to 27 months in prison and ordered to serve three years of supervised release upon completion of his prison term after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Patrick Allen Scott, 28, of Hephzibah, Ga., who pled guilty to Possession of a Firearm by a Convicted Felon and awaits sentencing; and,
- Matthew Kyle Brazell, 34, of Grovetown, Ga., who pled guilty to Possession of a Firearm by a Prohibited Person, related to a prior conviction for domestic violence. Brazell awaits sentencing.
These cases also are investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for prosecuting crimes.
In addition to the ATF, agencies investigating the cases include the Savannah Police Department; the Richmond County Sheriff’s Office; the Rincon Police Department; and the Port Wentworth Police Department.
The cases are being investigated for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Project Guardian Coordinator Henry W. Syms; Jennifer Stanley; Alejandro V. Pascual IV; John Harper; and Noah Abrams.
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Seminole County Man Charged with COVID Relief FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Don V. Cisternino (45, Chuluota) with two counts of wire fraud, three counts of aggravated identity theft, and three counts of illegal monetary transactions. If convicted, Cisternino faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 10 years’ imprisonment for each illegal monetary transaction count, and a mandatory consecutive term of two years for the aggravated identity theft counts.
According to the
indictment , in or about May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through a Paycheck Protection Program (“PPP”) loan.The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 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 potentially forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time-period and uses at least a certain percentage of the loan towards qualifying business expenses.
Cisternino’s PPP loan application falsely claimed that Cisternino’s New York business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million. In truth, MagnifiCo, had few, if any, employees other than Cisternino and his girlfriend, and MagnifiCo did not report any wages to the IRS for 2019. In support of his PPP loan application, Cisternino submitted false W-2s for MagnifiCo’s purported employees, many of which listed the names and Social Security numbers of actual persons who were not MagnifiCo employees and who had not authorized Cisternino to use their identities.
Once Cisternino obtained the emergency loan of $7.2 million, he did not use these funds for qualifying expenses. Instead, he spent the funds for unauthorized purposes and for his own personal enrichment, including the purchase of Lincoln Navigator, Maserati, and Mercedes-Benz vehicles, and an approximately 12,579 sq. ft. residence in Seminole County.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.
San Diego Man Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
Assistant U. S. Attorney Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – February 8, 2021
SAN DIEGO, CA – Jonathan Madison of San Diego pleaded guilty in federal court this morning to sex trafficking of children, admitting that he knowingly recruited, advertised, and solicited teenage girls and women to engage in commercial sex acts. Madison also admitted that he videotaped himself having sexual intercourse with an underage girl and later transmitted the video to her by cell phone.
In his plea, Madison acknowledged that he transported girls and women and provided them to customers for commercial sex acts, which took place in California and Colorado from November 2017 through April 2020.
Madison, aka “Jay Jay,” “Boobutt,” and “JT,” was arrested in April 2020 on sex trafficking charges and ordered detained without bond by the Court. A federal grand jury returned the first post-pandemic indictment in May 2020 against Madison charging him with sex trafficking of a minor. Today, Madison entered his guilty plea before U.S. Magistrate Judge Allison H. Goddard.
According to his plea agreement, between November 2017 and September 2018, while in the Southern District of California, Madison admitted he transported, provided, maintained and obtained a minor female (while she was 15 and 16 years old) for the purpose of her to engage in commercial sex acts in San Diego County. At this time, Madison knew the girl was under the age of 18.
Madison also admitted that in order to further his pimping activities, he caused online ads to be posted offering the girl for commercial sex. During this time, Madison transported her to meet with sex trafficking customers.
“This is a crime that affects young victims for the rest of their lives,” said U.S. Attorney Robert Brewer. “Our office will continue its collaborative work with our law enforcement partners to combat the abuse and exploitation of women and girls who are victims of sex trafficking.” Brewer praised prosecutor Joseph Orabona and members of the San Diego Human Trafficking Task Force for their excellent work on this case.
“There’s no place for human trafficking in California or anywhere,” said California Attorney General Xavier Becerra. “When our children are put at risk, we stand united to fight back. I applaud the efforts of the San Diego Human Trafficking Task Force and the U.S. Attorney’s Office for securing this conviction. At the California Department of Justice, we’ll continue to leverage our resources to stand up for the most vulnerable among us.”
“Today’s conviction is one more step in the journey to justice for the victims in this case,” said FBI Special Agent in Charge Suzanne Turner. “As law enforcement, we work tirelessly to stop criminals from preying on children and vulnerable victims in sex trafficking cases. The dedication and selfless devotion of FBI Agents protecting those most vulnerable in our communities has been and always will be unwavering and undeniable.”
A sentencing hearing is scheduled for May 3, 2021 at 9:00 a.m. before U.S. District Judge Cynthia A. Bashant. Madison has been in custody since his arrest in April 2020.
DEFENDANT Case Numbers: 20CR1228-BAS
Jonathan Madison Age: 29 San Diego, CA
SUMMARY OF CHARGES
Sex Trafficking of a Minor, in violation of Title 18, United States Code, Section 1591
Maximum Penalties: Ten-year mandatory minimum and a maximum of life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; mandatory restitution to the victims.
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force, which consists of:
- Federal Bureau of Investigation
- California Department of Justice
- California Department of Corrections & Rehabilitation – Parole
- California Highway Patrol
- ICE/Homeland Security Investigations
- National City Police Department
- San Diego City Attorney’s Office
- San Diego County District Attorney’s Office
- San Diego County Probation Department
- San Diego County Sheriff’s Department
- San Diego Police Department
- The United States Attorney’s Office, Southern District of California
Pittsburgh Drug Felon Sentenced for Conspiring to Send Suboxone into an Alabama Federal PrisonRead the Press Release
JOHNSTOWN, PA - A resident of Pittsburgh, PA, has been sentenced in federal court to 12 months and one day on her conviction for conspiring to distribute suboxone, which is a Schedule III controlled substance, to federal prisoners in Aliceville, Alabama, while she was under federal supervision for a prior drug offense, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Tai Ward, 31.
According to information presented to the Court at the time Ward entered her plea of guilty, Ward, along with at least two other coconspirators, concealed suboxone in packages that were being sent through the United States Postal Service to female in inmates at the Federal Correctional Institution in Aliceville, Alabama in early 2020.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Postal Inspection Service and the Bureau of Prisons Special Investigations Service for the investigation leading to the successful prosecution of Ward.
Pilot Projects Launched to Address Missing and Murdered Indigenous PersonsRead the Press Release
Anchorage, Alaska – United States Attorney Bryan Schroder announced Alaska’s Missing and Murdered Indigenous Persons Pilot Project (Pilot Project) today. The Pilot Project, in accordance with the Justice Department’s Missing and Murdered Indigenous Persons (MMIP) Initiative, and in furtherance of and Savanna’s Act, implements tailored Tribal Community Response Plans (TCRP) in select pilot sites.
A TCRP is a guide for how a tribal community will respond to a report of new missing or murdered person case. The TCRP is individualized and tailored to the needs, resources, and culture of the community. The Pilot Project sites include the tribal communities of Curyung Native Council (Dillingham), Native Village of Unalakleet, and Koyukuk Native Village. These three tribal communities volunteered to participate as Pilot Project sites and have completed their first weeklong project meetings with tribal stakeholders, multidisciplinary providers and law enforcement, taking the first steps toward TCRPs that will be shared with tribal communities across the state.
The Alaska MMIP working group began meeting in early September 2020. The TCRP guidelines address the response to new missing and murdered person cases by outlining how tribal governments, law enforcement, and other partners can best work together to respond to such cases. The plans address four core components of response to a missing person case: law enforcement coordination, victim services, community outreach and public and media communications. The Alaska MMIP working group has been working on the TCRP guidelines that meet the unique challenges of Alaska communities. The TCRP guidelines cover:
- Tribal communities without law enforcement presence;
- Tribal communities with limited law enforcement (village public safety officers (VPSOs), village public officers (VPOs), tribal police officers (TPOs); and
- Tribal hub communities with municipal and/or state law enforcement.
“The Alaska MMIP working group is a multi-disciplinary team led by the United States Attorney’s Office MMIP Coordinator, Ingrid Cumberlidge, and comprised of law enforcement representatives from Alaska State Troopers and VPSOs, FBI, Anchorage Police Department, U.S. Marshals, Fairbanks Police Department, BIA Cold Case Office, Kotzebue Police Department, Nome Police Department, Central Council of Tlingit and Haida Indian Tribes of Alaska VPSO supervisors, and Tanana Chief’s Conference VPSO supervisors; legal and judicial representatives from the Alaska Department of Law, U.S. Coast Guard, Kluti-Kaah Tribal Court (former Utquagvik Tribal Court); Tanana Chief’s Conference; tribal representatives from Ahtna Region, Orutsararmiut Native Council, Sun’aq Tribe of Kodiak; victim service providers; and advocates from Victims for Justice, and the Alaska Native Women’s Resource Center.”
“Given that there are 229 Federally recognized tribes in Alaska, we have adopted a pilot program approach to establish initial Tribal Community Response Plans that can be shared with other tribal communities throughout the State,” explained U.S. Attorney Schroder. “This is truly a multi-disciplinary approach, involving the collaboration and coordination of tribal leadership, federal, state, local and tribal law enforcement, and social and victim services providers to address the complexities of MMIP response in Alaska.”
“The Alaska State Troopers are proud to continue our robust efforts in the more rural areas of Alaska and look forward to continued advancement of cultural understanding between tribal entities and our Troopers,” stated Col. Bryan Barlow, Director of the Alaska State Troopers. “We hold steadfast to our efforts to keep and ensure strong partnerships with all of our tribal, local, state and federal law enforcement partners as well as look at what preventative efforts, survivor services, and educational programs can be implemented in communities across Alaska so that we can reduce the violence that negatively impacts all Alaskans, which includes a disproportionately high rate of indigenous people subjected to violence.”
"The opportunity to participate in this Pilot Project has provided an opportunity for the Koyukuk Native Village to address the issues and concerns they have faced in the past when tribal members went missing or were murdered.” said Shirly Sam, Tribal Victim Specialist for Koyukuk Native Village, “The development of the Koyukuk Native Village Community Response Plan for Missing Person Cases provides a guide to follow if faced with that possibility. This guide adheres to tribal traditions and cultures."
“In Alaska, law enforcement agencies often need to think outside the box, but inside the rules, to protect the people we serve,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “The FBI is looking forward to participating in this Pilot Project, as we continue to support the Alaska State Troopers, as well as our local and tribal partners, to find sustainable solutions that will improve public safety for all Alaskans.”
“The U.S. Marshals Service looks forward to continuing and growing their partnership as part of the Missing and Murdered Indigenous Persons Working Group,” said U.S. Marshal Robert Huen, “This opportunity to collaborate with federal, state and local agencies, as well as tribal members and entities creates partnerships to improve interagency communication and cooperation. The U.S. Marshals Service recognizes the importance of this initiative and are dedicated to allocating resources in response to this problem plaguing our Alaskan communities.”
“The Alaska Department of Law is committed to addressing the epidemic of Missing and Murdered Indigenous People. These Pilot Projects are the first step, and we look forward to collaborating with local, state, and federal partners in the future.” Deputy Attorney General John Skidmore
“We are deeply engaged with our federal and state law enforcement partners as well as our community partners to help address the MMIP issue,” said Chief Justin Doll with the Anchorage Police Department. “For example, our new Cold Case Unit is currently collaborating and supporting this important project.”
“I am so happy to be part of this working group with Ingrid (Cumberlidge- U.S. Attorney’s Office District of Alaska - MMIP Coordinator) and other tribes,” said Lucille Lincoln of AHTNA, “I am thankful that we are finally getting the different agencies working together with us and learning about our people and problems to help our Native people and present them somewhere to turn in these situations.”
“Participating in this Pilot Project not only demonstrates to our families that we care deeply about the traumas they’re experiencing, but also asserts our sovereignty in addressing this issue for our people by developing an action plan relevant to Curyung’s culture and community.” said Curyung Tribal Council Tribal Administrator, Courtenay Carty.
“The Native Village of Unalakleet joined the Alaska MMIP Tribal Community Response Plan Project. I serve as the Tribal President and during my past experience as a law enforcement officer, we lost and never found a couple of our tribal members,” said Unalakleet Tribal President Katchatag, “My hope is that this project will continue to raise awareness, gather resources, and develop protocols for Unalakleet and all Alaska Tribes to respond to cases of missing and murdered indigenous people.”
The U.S. Attorney’s Office, District of Alaska would like to thank the Pilot Project tribal communities, law enforcement partners, community stakeholders, and victim service providers for their willingness and dedication to the undertaking of this monumental effort of addressing MMIP responses in Alaska.
Owner of Savannah-area clinic charged for role in providing access to notorious 'pill mill' doctorRead the Press Release
SAVANNAH, GA: A Garden City, Ga., clinic owner and CEO has been indicted for operating a clinic that provided a base from which a notorious “pill mill” doctor dispensed massive amounts of controlled substances.
In a five-count indictment returned by a U.S. District Court grand jury, Jamesetta Whipple-Duncan, 58, of Savannah, is charged with Maintaining a Drug-Involved Premises; Solicitation and Receipt of Kickbacks; False Statements in a Loan and Credit Application; Falsification of Records; and False Statements, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry a possible sentence upon conviction of up to 30 years in prison, along with substantial financial penalties and up to four years of supervised release.
There is no parole in the federal system.
“The fight against the opioid addiction crisis must attack the full illegal supply pipeline, from street-corner dealers, to white-coated prescribers, to enabling businesses providing storefront space,” said U.S. Attorney Christine. “With our law enforcement partners, we will bring unrelenting pressure to every avenue that fuels the illegal drug trade.”
As described in court documents and testimony, Whipple-Duncan, as owner of the now-closed Georgia Laboratory Diagnostics LLC, in Garden City, Ga., was an employer of Dr. Frank Bynes Jr., 69, of Savannah, who was sentenced in February 2020 to 240 months in prison and ordered to pay $615,145 in restitution to Medicare, Medicaid and Tricare after being found guilty by a federal jury on 13 counts of Unlawful Dispensation of Controlled Substances and three counts of Health Care Fraud.
As noted in the indictment, from approximately January 2017 to September 2017, Whipple-Duncan “profited significantly from this clinic, both in the form of cash from many addicted patients and kickbacks paid to Whipple-Duncan from a laboratory that processed the clinic’s urine tests. Whipple-Duncan used the proceeds of the pill mill for her own use and enjoyment; yet, when Whipple-Duncan filed for bankruptcy protections shortly after the pill mill was shut down, Whipple-Duncan concealed the fact (that) she received the pill mill income and kickbacks she received, while making a series of false statements to the United States and others.”
With Bynes prescribing thousands of controlled substances, including the “Holy Trinity” drug cocktail favored by opioid addicts, Whipple-Duncan and Georgia Diagnostics Laboratory accepted only cash for office visits and refused to accept insurance, requiring Bynes’ patients to pay hundreds of dollars per visit – yet facilitated payments from the patients’ health care benefit programs for prescriptions and lab tests. Whipple-Duncan “obtained hundreds of thousands of dollars” as part of the clinic’s proceeds, according to the indictment.
The indictment also alleges that Whipple-Duncan solicited and received kickbacks by falsely claiming to be an employee of an Oklahoma laboratory that paid Whipple-Duncan to submit referrals for urine tests that the laboratory then billed to Medicare and Georgia Medicaid for nearly $500,000.
Regarding the financial crimes counts, the indictment alleges that on Sept. 27, 2017, Whipple-Duncan applied for and later received a $75,000 loan from a Savannah-based credit union, claiming income of “$10,000 monthly” from Georgia Diagnostic Laboratory despite knowing that the clinic already had been shut down following the execution of a federal search warrant. Whipple-Duncan later filed for federal bankruptcy protection, claiming that during that same period her income was $13,262 – despite her prior claims of making “$10,000 monthly” from Georgia Diagnostic Laboratory.
“In this case, the dispensing of addictive prescription pain medication (often-times opiate-based) under the guise of a doctor’s care, was not about the good of the community or an individual’s specific health needs; it was about the alleged greed of a clinic owner and CEO,” said Robert J. Murphy, Special Agent in Charge of the DEA’s Atlanta Field Division. “This clinic owner was indicted for soliciting kickbacks and related financial crimes. DEA and its law enforcement partners will continue to investigate allegations of misconduct by clinic owners. If the allegations are found to be true, these unlawful acts fuel our country’s raging opioid epidemic.”
“The OIG will continue to pursue cases against those who fraudulently profit from the nation’s opioid epidemic,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Together with our law enforcement partners, we will ensure that society’s most vulnerable are protected from such nefarious schemes.”
“After allegedly profiting from the illegal dispensation of large amounts of controlled substances, Whipple-Duncan is accused of obtaining loans based on lies,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our law enforcement partners to bring the full extent of the law to bear on such alleged illegal actions.”
“Jamesetta Whipple-Duncan is essentially charged with hiding behind what appeared to be a legitimate medical business in order to profit off of the illegal distribution of poisonous drugs by Dr. Bynes. The indictment also alleges Whipple-Duncan participated in various forms of fraudulent activity involving the clinic she owned,” said Michael G. Sarhatt, Director of the Chatham-Savannah Counter Narcotics Team. “The type of behavior Whipple-Duncan has been accused of violates the trust of our citizens and CNT is committed to investigating those who take advantage of our community in this fashion. I am thankful for the cooperation of our law enforcement partners in investigating all aspects of this case, as well as the efforts of the U.S. Attorney’s Office in prosecuting the case.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the DEA, HHS-OIG, the FBI, the Georgia Medicaid Control Fraud Unit, and CNT, and prosecuted for the United States by Assistant U.S. Attorney Jonathan Porter.
Orange County Man Sentenced to 10 Years in Federal Prison for Brokering Illegal Sales of ‘Ghost Guns,’ Other FirearmsRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 120 months in federal prison for selling narcotics and illegally brokering the sale of firearms – including several “ghost guns.”
Pedro Javier Villalobos, 24, of Santa Ana, was sentenced by United States District Judge David O. Carter. Villalobos pleaded guilty in October 2020 to one count of distributing methamphetamine and one count of engaging in the business of dealing in firearms without a license.
In the summer of 2019, Villalobos, who was not a federally licensed firearms dealer, brokered the sale of firearms to a customer, who was in fact an undercover agent. From August 21, 2019 to September 18, 2019, Villalobos brokered the sale of 15 firearms, including three AR-type rifles and several Glock-type .40-caliber pistols bearing no serial numbers. Villalobos also facilitated the sale of two Mossberg 12-gauge shotguns to the buyer.
Villalobos also sold a total of 367.8 grams of methamphetamine to a buyer on three occasions in August and September of 2019.
Villalobos was the lead defendant in an 11-count federal grand jury indictment unsealed in October 2019 that charged seven defendants with federal firearms offenses.
Prosecutors have secured five guilty pleas in this case so far. Frank Nerida, 50, of Garden Grove, was sentenced on January 25 to two years in federal prison. Jury trials are scheduled for February 23 and July 27, respectively, for the remaining two defendants – Jose Angel Vera, 28, of Santa Ana, and Kevan Ryan Perez, 33, also of Santa Ana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Costa Mesa Police Department investigated this matter.
Assistant United States Attorney Anne C. Gannon of the Santa Ana Branch Office prosecuted this case.
North Carolina Return Preparer Sentenced to 50 Months in Prison for Multi-Year Tax Fraud SchemeRead the Press Release
A Rocky Mount, North Carolina, tax return preparer was sentenced to 50 months in prison today for conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina.
According to court documents and statements made in court, between 2009 and 2017, Adrienne Williams owned and operated Ultimate Tax Service, a return preparation business, which had an office in Rocky Mount, North Carolina. During that time period, Williams and at least two of her employees at Ultimate Tax Service prepared false tax returns for clients. The returns claimed fraudulent refunds by including, among other falsities, bogus federal income tax withholdings. In all, Williams and her co-conspirators sought to defraud the IRS of more than $3.5 million.
In addition to the term of imprisonment, U.S. District Court Judge Terrence W. Boyle ordered Williams to serve three years of supervised release and pay $4,830,723 in restitution to the IRS.
Acting Deputy Assistant Attorney Goldberg and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Michael L. Jones of the Tax Division and Assistant U.S. Attorney Susan B. Menzer, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Meth Dealer Who Went “Off the Rails” Sentenced to over a Decade in Federal PrisonRead the Press Release
A man who distributed methamphetamine and was in possession of multiple firearms was sentenced today to more than ten years in federal prison.
Brandon Kirstein, age 33, from Cedar County, Iowa, received the prison term after a June 22, 2020 guilty plea to possession of methamphetamine with intent to distribute.
At the guilty plea, Kirstein admitted he possessed at least 5 grams of pure ice methamphetamine with the intent to distribute some or all of it. Kirstein possessed multiple guns including a pistol, a handgun, and two shotguns. At the sentencing hearing, Kirstein also admitted to obstructing justice for attempting to hire an individual to murder a witness in the case against him. During the sentencing hearing, the judge described Kirstein as going “off the rails.”
Kirstein was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kirstein was sentenced to 135 months’ imprisonment and fined $100. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Kirstein is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Muscatine County Drug Task Force, Cedar County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-0017-CJW.
Follow us on Twitter @USAO_NDIA.
Maple Grove Investment Advisor Charged with Defrauding Clients Out of More Than $2.2 MillionRead the Press Release
United States Attorney Erica H. MacDonald today announced a felony information charging ISAIAH LESLIE GOODMAN, 33, of Maple Grove, Minn., with one count of mail fraud. GOODMAN will make his initial appearance before a Magistrate Judge in U.S. District Court at a later date.
According to the allegations in the information, GOODMAN was a registered investment advisor and broker who owned Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C. GOODMAN also owned and operated MoneyVerbs, a business that claimed to provide customers with financial guidance through an internet-based app. Through Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C., GOODMAN represented that he would provide his clients with financial planning and investment advice, including purporting to place his clients’ savings and retirement funds into financial accounts that GOODMAN claimed were safe, secure, and profitable.
According to the allegations in the information, from at least 2017 through November 2020, GOODMAN defrauded at least 23 of his investor clients out of approximately $2,250,123. As part of his scheme to defraud, GOODMAN lied to prospective and existing clients about his use of their money, the security and profitability of the financial accounts he claimed to administer on their behalf, and the status and performance of their funds. During in-person sales pitches or through email messages and phone calls, GOODMAN provided clients with materially false and fraudulent information, including investment proposals and bogus online account information. GOODMAN also misrepresented to clients that their funds would be returned to them upon request, when, in fact, GOODMAN either kept all of the money or provided investors with refunded payments that were late, incomplete, or both, or that were refunds actually funded by other clients’ money.
According to the allegations in the information, instead of placing his clients’ money into safe and secure investment accounts, GOODMAN deposited client funds into bank accounts he controlled. GOODMAN misappropriated his clients’ funds for his own use and benefit by, among other things, purchasing and remodeling his home in Maple Grove, using funds for the purchase and construction of a $1.69 million home in Plymouth, buying a 2019 Ford Expedition and a 2020 Ford Explorer, funneling approximately $700,000 toward his other business, MoneyVerbs, and paying for personal expenditures, including a hot tub, a cruise, fitness club memberships, jewelry, and credit card payments.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
ISAIAH LESLIE GOODMAN, 33
Maple Grove, Minn.
Charges:
- Mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Man from Torreon sentenced to 12 years in federal prison for involuntary manslaughter and assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Allen Lewis, 26, of Torreon, New Mexico, was sentenced in federal court in Albuquerque on Feb. 4 to 12 years and five months in prison for involuntary manslaughter, assault resulting in serious bodily injury of a minor, and assault resulting in serious bodily injury in Indian Country.
According to his plea agreement, Lewis admitted to driving his vehicle on April 17, 2018, while under the influence of alcohol and causing a vehicle crash. After purchasing alcohol from a gas station in Cuba, New Mexico, Lewis alcohol level was at .147, which is over the legal limit. While driving on Route 9 on the Navajo Nation, Lewis fell asleep behind the wheel, drove on the wrong side of the road and crashed into a family of five. The crash caused the deaths of three victims and serious bodily injuries to two other victims who were hospitalized following the incident. Four of the victims were enrolled members of the Navajo Nation.
Upon his release from prison, Lewis will be subject to three years of supervised release.
The FBI investigated this case with assistance from the New Mexico State Police and the Navajo Nation Police Department. Assistant U.S. Attorney Nicholas Marshall prosecuted the case.
Man Sentenced to 70 Months in Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that Luis Eduardo Martinez-Torres, 23, of Mexico, was sentenced to 70 months in prison for aiding and abetting possession with intent to distribute heroin and methamphetamine.
“Deadly - meth and black tar heroin,” said United States Attorney Mike Stuart. “Great work by law enforcement to intercept these drugs and remove poison peddlers from the streets of Huntington.”
Officers executed a search warrant on June 5, 2019 in Huntington. Martinez-Torres and other individuals were in the home at the time of the search warrant. Officers found methamphetamine and heroin in the home. Martinez-Torres previously pled guilty and admitted that he aided and abetted other individuals in possessing with the intent to distribute 340 grams of methamphetamine and 453 grams of black tar heroin in Huntington.
The Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West, and the Wayne County Sheriff’s Department conducted the joint investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00281.
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Man Charged with Unlawful Possession of Firearm Outside A Business at Henderson Executive AirportRead the Press Release
LAS VEGAS, Nev. – A man who held a handgun and a machete outside a business at the Henderson Executive Airport was charged Friday with unlawful possession of a firearm, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
Etori Hughes, 45, of Las Vegas, was charged with one count of unlawful possession of a firearm. U.S. Magistrate Judge Daniel J. Albregts scheduled a preliminary hearing for February 19, 2021.
As alleged in the criminal complaint, on January 30, 2021, Henderson Police Department dispatch received a 911 call about a man — later identified as Hughes — in the parking lot of a business at Henderson Executive Airport, wearing a bulletproof vest and holding a handgun in one hand and a machete in the other. Police officers arrived at the business and placed Hughes in custody. During a search of Hughes’ vehicle, officers found a Glock 9mm handgun, 352 9mm rounds loaded into magazines, ninja swords, a smoke grenade, a knife, and other items. Hughes has a court order issued by the Orleans Parish in Louisiana that prohibits him from possessing a firearm.
Photograph of items recovered from Hughes’ vehicle
If convicted, Hughes faces a statutory maximum penalty of 10 years in prison, supervised release, and a fine of $250,000.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the FBI with assistance from the Henderson Police Department and Las Vegas Metropolitan Police Department.
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