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5 February 2021
Head of Merchant Bank Sentenced to 24 Months in Prison in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CRAIG ZABALA, the chairman, chief executive officer, and president of Concorde Group Holdings Inc. (“Holdings”), was sentenced today to 24 months in prison for participating in a scheme to defraud investors in Holdings, a purported merchant banking firm. Among other illicit activity, ZABALA fraudulently induced at least 17 investors to invest approximately $4.38 million based on false and misleading statements, by failing to use investors’ funds as promised, and by converting investors’ money to his own use. ZABALA pled guilty to conspiracy to commit securities fraud and wire fraud on October 22, 2020, before U.S. District Judge J. Paul Oetken, who also imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Craig Zabala defrauded investors out of more than $4 million through a purported financial services firm he controlled. He lied to investors about how much money had been raised, who had invested, how close the firm was to an IPO, and how he would use investors’ money. Zabala appropriated most of the money for his own use or to pay off investors in a Ponzi-like fashion. Now he has been sentenced to prison for his crimes.”
According to the allegations in the Complaint, the Information, and other proceedings in this case:
CRAIG ZABALA was the chairman, CEO, and president of various affiliated and intertwined purported financial services companies: Holdings, Concorde Group, Inc. (“Group”), Blackhawk Capital Group BDC, Inc. (“Blackhawk”), DBL Holdings, LLC, d/b/a “Drexel Burnham Lambert” (“DBL”), Concorde Investment Managers, LLC (“CIM”), and Concorde Europe, Ltd. (“Concorde Europe”). In or about August 2019, FINRA barred ZABALA from the broker-dealer industry, including because of his failure to cooperate with a FINRA investigation.
Holdings was a Delaware corporation formed in or about 2015, with an office in Jersey City, New Jersey, and a mailing address in New York, New York. Holdings purported to provide financial services, including merchant banking, investment banking, asset management, and securities brokerage services, to entrepreneurs, investors, and businesses in the middle market, meaning small to mid-sized companies with revenue and market capitalizations of less than $1 billion, in North America, Europe, and Asia. Holdings’ purported affiliates included Group, DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Holdings.
Group was a Delaware corporation formed in or about 1995, based in New York, New York, that purported to provide the same types of financial services as Holdings. Group’s purported affiliates included DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Group. Between in or about 2001 and in or about 2014, Group purportedly raised approximately $18 million from investors.
From at least in or about 2015 through in or about 2020, ZABALA and others perpetrated a scheme to defraud at least approximately 17 investors out of approximately $4.38 million in Holdings notes, warrants, and equity. Almost all of these investors invested in a private offering by Holdings of $25 million in senior secured notes with attached warrants paying 13 percent interest (the “Holdings Offering”).
ZABALA falsely represented that the proceeds from the offerings would be used to grow Holdings’ purported merchant banking business by investing in and buying other financial services companies. In truth and in fact, and as ZABALA well knew, Holdings did not make any investments in or buy other companies; it was a shell company.
ZABALA falsely represented that Holdings was successfully raising money from investors, claiming that Holdings had raised nearly all of the $25 million targeted in the Holdings Offering and that the family office of a wealthy German family had invested millions of dollars in Holdings. In truth and in fact, and as ZABALA well knew, Holdings only raised a few million dollars (the majority from one investor), and the family office never invested in, and never committed to invest in, Holdings.
ZABALA falsely represented to Holdings Investors that Holdings would soon have an initial public offering (“IPO”), which would result in large profits to Holdings investors. In truth and in fact, and as ZABALA well knew, Holdings was not close to an IPO.
ZABALA converted at least approximately 70 percent of the approximately $4.38 million in Holdings investor funds in the form of cash withdrawals and other transfers to himself, payments to his girlfriend, payments of his personal credit card bills, and repayment of Group investors in a Ponzi-like fashion.
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ZABALA, 69, of New York, New York, was also sentenced to three years of supervised release, ordered to forfeit $4,380,000, and to pay restitution of $4,380,000.
Ms. Strauss praised the outstanding work of the United States Postal Inspection Service’s New York Division, and also thanked the Securities and Exchange Commission and Financial Industry Regulatory Authority for their assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Joshua A. Naftalis is in charge of the prosecution.
Harrison County woman admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kaylie Marie Jones, of Wallace, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Jones, 26, pleaded guilty today to one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine.” Jones admitted to working with others to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere.
Jones faces not less than five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Island Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Elias Mendoza, 25, of Grand Island, was sentenced on February 5, 2021, in federal court in Lincoln, Nebraska for three counts of distribution of methamphetamine and one count of felon in possession of a firearm. Chief United States District Judge John M. Gerrard sentenced Mendoza to 140 months in federal prison for each of the three counts of distribution of methamphetamine, and 120 months for being a felon in possession of a firearm, with each count to be served concurrently with one another. Following the prison term, Mendoza will serve five years on supervised release. There is no parole in the federal system.
In August of 2019, Mendoza sold a confidential informant methamphetamine on three occasions. The total quantity of all sales amounted to approximately 140 grams of methamphetamine. The methamphetamine was tested by the Nebraska State Patrol lab at 99% purity. Additionally, on August 20, 2019, Mendoza sold the same confidential informant a handgun. Mendoza was a felon at the time as a result of prior Burglary and Terroristic Threats convictions. As a convicted felon Mendoza is prevented from possessing a firearm.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations and the FBI.
Gang Member Receives Nine Years in Federal Prison for Drug OffensesRead the Press Release
RALEIGH, N.C. – Shyreek Thatch, 21, of Lexington, North Carolina, was sentenced today to 108 months imprisonment for conspiracy to possess with intent to distribute and distribution of a 100 grams or more of heroin and a quantity of methamphetamine and cocaine, distribution of a quantity of heroin (aiding and abetting), and possess with intent to distribute and distribution of a 100 grams or more of heroin and a quantity of methamphetamine and cocaine (aiding and abetting).
The evidence presented in court and other information revealed that on November 14, 2019, the New Hanover County Sheriff’s Office conducted a controlled purchase of a half an ounce of heroin from Thatch. Following this controlled purchase, another purchase of heroin was orchestrated by law enforcement. Detectives conducted surveillance on Thatch and another person as they left an apartment on Park Avenue in Wilmington and drove to the meeting location. Thatch and the other person fled after law enforcement identified themselves. Thatch attempted to discard a quantity of heroin before he was arrested. His co-defendant hid a loaded .40 caliber handgun prior to his arrest. A search warrant was obtained for the Park Avenue address where detectives recovered half a kilogram of a heroin/fentanyl mixture, 55 grams of pure methamphetamine, 40 grams of ecstasy, a quantity of cocaine, another loaded .40 caliber handgun, a loaded 9mm handgun and money received from the earlier controlled purchase by law enforcement. Two other persons were arrested in the apartment. Thatch told law enforcement that he had come to Wilmington solely to make money. During the course of the investigation, law enforcement discovered that the narcotics were being imported from the High Point area for distribution in Wilmington using armed associates or gang members. According to law enforcement, Thatch was a member of a violent gang.
The investigation was part of OCDETF Operation. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of heroin, fentanyl and methamphetamine throughout the United States.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge James C. Dever III. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Hanover County Sheriff’s Office investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00005-M.
Four Seattle-area men indicted for seeking to sexually assault children during FBI online sting operationRead the Press Release
Seattle – A federal grand jury has indicted four Seattle-area men who were arrested and charged following an FBI sting operation focused on adults seeking to sexually assault children, announced U.S. Attorney Brian T. Moran. The investigation revealed that some of the defendants had molested other children or collected images of child sexual abuse before they were identified by law enforcement.
“Law enforcement reports increasing concern about online sexual exploitation of children during the pandemic,” said U.S. Attorney Moran. “Tragically, we saw this week that in service to the safety and innocence of children, two FBI agents lost their lives in Florida, and three others were wounded. I commend our local agents for their work on this matter, and indeed, all of law enforcement who risk much in pursuit of those who prey on our most vulnerable.”
According to records filed in the case, in September and October 2020, defendants allegedly communicated with undercover agents and officers via internet platforms with the intent to sexually abuse children, some as young as 6 years old. When the defendants were arrested, their electronic devices were seized, as well as items which were to be used in the planned sexual assaults.
The defendants indicted in this operation include:
- ERIC HOGAN, 33, Seattle – Attempted enticement of a minor – allegedly communicated with undercover agent about sexually assaulting the agent’s fictitious 6- and 12-year-old daughters.
- JUSTICE GALLOWAY, 26, Everett, Washington – Attempted enticement of a minor – allegedly communicated with undercover agent about sexually assaulting the agent’s fictitious 6- and 11-year-old daughters.
- CHRISTOPHER SINFIELD, 28, Woodinville, Washington – Attempted enticement of a minor and possession of child pornography – allegedly communicated with undercover agent posing as a 13-year-old girl and possessed images of child sex abuse on an electronic device at the time of his arrest.
- MARCUS WILLIAM LOWE, 33, Kirkland, Washington – Attempted enticement of a minor, possession of child pornography, and assault on a federal officer – allegedly communicated with undercover agent about sex assault of fictitious 10-year-old daughter. LOWE attempted to flee from agents at the arrest location, pinning and injuring an agent between his car and another vehicle. Further investigation revealed possession of images of child sexual abuse and molestation of a child under the age of 12.
“During this time of social distancing, we are relying on the Internet more than ever,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “Although electronic resources are so pervasive in our daily lives, we must remain ever vigilant and remember how powerful and far-reaching they can be, both for good and for harm. This case demonstrates the ongoing commitment of the FBI to protect our most vulnerable citizens: our children.”
Attempted enticement of a minor is punishable by a mandatory minimum 10 years in prison and up to life in prison. Possession of child pornography is punishable by up to 20 years in prison. Assault on a federal officer is punishable by up to 20 years in prison.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases are being investigated by the FBI. The operation was conducted in cooperation with the Seattle Police Department, and the Kirkland Police Department. The cases are being prosecuted by Special Assistant United States Attorney Laura Harmon and Assistant United States Attorney Matthew Hampton. Ms. Harmon is a King County Deputy Prosecutor specially designated to pursue child sexual exploitation cases in federal court.
Former correctional officer admits to sexual abuse of an inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA –Scott Douglas Born, a former correctional officer at Federal Correctional Institution Hazelton’s Female Facility has admitted to the sexual abuse of an inmate, U.S. Attorney Bill Powell announced.
Born, 33, of Bruceton Mills, West Virginia, pled guilty today to one count of “Sexual Abuse of a Ward.” Born admitted to accepting oral sex from an inmate at the secure female facility from September 2018 to January 2019.
Born faces up to 15 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Department of Justice Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Foreign national sent to prison for distributing multiple kilograms of methRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old legal permanent resident of McAllen has been sentenced following his conviction in Corpus Christi federal court of conspiring to possess and distributing over 21 kilos of meth, announced U.S. Attorney Ryan K. Patrick.
Adrian Lechuga Rievoles pleaded guilty Dec. 30, 2019.
Today, Senior U.S. District Judge Janis Graham Jack ordered him to serve a total of 168 months in federal prison to be followed by five years of supervised release. At the hearing, the court found he was not truthful about his role in the conspiracy.
On Feb. 9, 2019, authorities discovered disconnected speaker boxes in the trunk of a Ford Focus at the U.S. Border Patrol checkpoint near Falfurrias which appeared to be usually heavy. They ultimately found multiple bundles of meth weighing over 21.53 kilograms with a value of more than $1 million.
The investigation led to Rievoles. Law enforcement confirmed his involvement as an organizer in a vast meth distribution network which covered all major Texas cities and included multiple states along the Gulf Coast.
Authorities apprehended Rievoles July 29, 2019, as he attempted to enter the United States from Mexico. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
Felon Sentenced to 91 Months in Federal Prison for Carjacking During 2020 ProtestsRead the Press Release
LOUISVILLE, Ky. – Damion Lemont Hayes, 21, of Louisville, Kentucky, was sentenced by United States District Judge David J. Hale on Thursday, February 4, 2021, to 91 months’ imprisonment followed by a 3 year term of Supervised Release for his role in a carjacking that occurred during protest activity in Louisville last year, announced Acting United States Attorney Michael A. Bennett.
“The commitment and partnership between federal law enforcement and LMPD in the fight against violent crime, which includes the extremely dangerous act of carjacking, is very strong,” said Acting U.S. Attorney Michael A. Bennett. “Like this defendant, those who carjack and threaten the safety of others will be identified, apprehended, and prosecuted.”
“Over the summer, a number of individuals attempted to exploit the unrest in Louisville by committing violent crimes for their own personal gain,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office. “Mr. Hayes was one such person. Mr. Hayes’ arrest, conviction, and ultimately his 91-month sentence shows that FBI Louisville and its partners are committed to fostering safe communities by removing violent offenders from our neighborhoods. We simply will not, and cannot, tolerate carjackings in our city.”
“Recently, ATF joined the U.S. Attorney, our federal law enforcement partners and LMPD to address the recent and disturbing uptick in carjackings,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “This is a violent crime that threatens the safety of our community. ATF will continue to leverage all our resources to combat crimes with guns and seek justice for innocent victims.”
On October 26, 2020, Hayes pleaded guilty in United States District Court to the single count of the Indictment charging him with carjacking in violation of Title 18, U.S.C., Sections 2119 and 2. Specifically, Hayes admitted to taking a 2017 Subaru Forester on June 3, 2020, in Jefferson County, Kentucky, by force, violence, and intimidation, with the intent to cause death and serious bodily harm for the identified victim.
In addition to the term of imprisonment, Hayes was ordered to pay victim restitution in the amount of $ 20,117.81. There is no parole in the federal system.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Louisville Metro Police Department investigated the case.
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Federal Indictment Charges Department of Veterans Affairs Procurement Supervisor with Pocketing KickbacksRead the Press Release
CHICAGO — A procurement supervisor at the Jesse Brown Veterans Affairs Medical Center in Chicago pocketed kickbacks from the president of a medical supply company to steer the company at least $1.7 million in product orders, many of which were never fulfilled, according to an indictment returned in federal court in Chicago.
The indictment accuses THOMAS E. DUNCAN, a supervisor in the medical center’s Central Supply department, of receiving approximately $36,250 in kickbacks paid by checks, as well as an additional amount in cash, from DANIEL DINGLE, the president of a medical supply company based in south suburban Dolton. The checks were made payable to Helping Hands Properties LLC – a third-party entity managed by Duncan – and contained false and misleading memo entries in order to conceal and disguise the existence and purpose of the kickbacks, the indictment states. In exchange for the kickbacks, Duncan used his official position at the VA to fraudulently initiate and approve purchases of products from Dingle’s company, knowing that many of the products would not be delivered to the VA, the indictment states.
The alleged fraud scheme began in 2012 and continued until 2019. In late 2018 and early 2019, while the Veterans Affairs Inspector General’s Office was investigating the matter, Duncan told Dingle to falsely tell investigators that the payments Duncan received from Dingle’s company were for work performed by Helping Hands Properties, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Duncan, 37, of Chicago, with five counts of wire fraud, one count of witness tampering, and one count of falsifying records. Dingle, 50, of Riverdale, is charged with four counts of wire fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gregg Hirstein, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General. The government is represented by Assistant U.S. Attorney Heidi Manschreck.
“These charges demonstrate the VA OIG’s commitment to protecting American taxpayers,” said Special Agent-in-Charge Hirstein. “Individuals and companies involved in corrupting the VA’s business practices will be held accountable.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Returns Indictment Against Denver Man for Aiming Laser Pointer at Denver Police Department HelicopterRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Logan Scott Debyle of Denver has been indicted for aiming a laser pointer at a Denver Police Department (DPD) helicopter on November 4, 2020. Debyle was originally charged by a criminal complaint on November 6, 2020. According to the affidavit in support of the original complaint, Debyle allegedly used a green laser pointer to illuminate the cockpit of a DPD helicopter called “Air 1” as the helicopter observed civil unrest during the evening of November 4, 2020. The flight crew of Air 1 viewed two men associated with the laser. The men were then detained by DPD police officers.
“We are proceeding with this and other matters to ensure that laws are enforced both here in Denver, as well as at the United States Capitol,” said United States Attorney Jason Dunn. “Peaceful protests will be protected, but lawless rule breaking will not be tolerated.”
Debyle is charged with violating 18 U.S.C. § 39A. If convicted, he faces a sentence of not more than five years imprisonment and a fine of not more than $250,000. The charge pending against the defendant is an allegation, and the defendant is presumed innocent unless and until proven guilty in a court of law.
This matter is being investigated by the FBI’s Denver Field Office and the Denver Police Department. Assistant United States Attorney David Tonini is handling the prosecution on behalf of the United States.
Case numbers: 20-mj-180 & 21-cr-032
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Fayette County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Eddie McKinney, 33, of Mt. Hope, pled guilty to distribution and attempted distribution of prepubescent child pornography.
“Child pornographers like McKinney pose grave danger to our most vulnerable,” said United States Attorney Mike Stuart. “The work of the FBI and their federal, state and local law enforcement partners is critical to removing these offenders from our communities and keeping West Virginia’s children safe.”
McKinney admitted that on December 3, 2015, he distributed child pornography using peer-to-peer file sharing software. He admitted that he knowingly possessed and distributed to others images depicting a minor engaged in sexually explicit conduct. Law enforcement recovered over 600 images of child pornography from his home, including images involving sadistic and masochist conduct.
McKinney faces a minimum of five years in prison and up to 20 years in prison when sentenced on May 6, 2021.
The Federal Bureau of Investigation (FBI) and the Kanawha County Sheriff’s Office conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Julie M. White 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. 2:20-cr-00142.
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Essex County Man Indicted for Operating Heroin Mill in His ApartmentRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted an Essex County, New Jersey, man for narcotics offenses for operating a large-scale heroin mill out of his apartment, Acting U.S. Attorney Rachael A. Honig announced.
Alexis Garcia Cabrera, 51, of Newark, is charged with possessing over 400 grams of fentanyl with intent to distribute. Garcia Cabrera was previously charged by complaint in May 2019. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On May 9, 2019, law enforcement officers executed a search warrant at Garcia Cabrera’s residence and found multiple freezer-type bags containing suspected heroin as well as a large quantity of loose narcotics that were in the processing stage. Law enforcement officers also found equipment used to process and “cut” heroin, including grinders, sifters, and chemical cutting agents, and large quantities of materials designed to package heroin for street-level distribution, including 1,000 glassine envelopes. Agents located multiple “bricks,” or packages of 50 individual doses, of suspected heroin, which are intended for street-level distribution. Subsequent lab tests revealed that the suspected heroin also contained fentanyl.
The possession of over 400 grams of fentanyl with intent to distribute count carries a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office OCDETF/Narcotics Unit.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Dominican Republic Man Sentenced to 132 Months for Transporting FentanylRead the Press Release
United States Attorney Joe Kelly announced that Nelson Nicholas Nunez-Acosta, 55, of La Vega, Dominican Republic, was sentenced on February 4, 2021 by Chief United States District Judge John M. Gerrard for Possession with Intent to Distribute 400 grams or more of fentanyl. Nunez-Acosta received a sentence of 132 months with a five-year term of supervised release to follow. There is no parole in the federal system.
On April 26, 2018, a Nebraska State Patrol trooper conducted a traffic stop on an NNN Transport semi-truck hauling a refrigerated trailer for a traffic violation. The driver, Felipe Minaya, was an employee of NNN Transport, and the passenger, Nelson Nicholas Nunez-Acosta, was the company owner. During the course of the traffic stop, the trooper became suspicious of criminal activity. While inspecting the refrigerator unit inside the trailer, the trooper determined that there was a hidden compartment concealed behind the unit. After accessing the hidden compartment, the trooper discovered 42 bricks containing 118 pounds of fentanyl.
Further investigation by the Nebraska State Patrol determined that Minaya became aware that he was hauling narcotics when Nunez-Acosta flew from New Jersey to California to meet him. During this time, the semi-trailer was loaded with the fentanyl. In addition to the criminal sentence, Nunez-Acosta also forfeited the semi-truck.
Minaya was sentenced on November 9, 2020, to 70 months’ imprisonment with a three-year term of supervised release to follow.
This case was investigated by the Nebraska State Patrol.
Dominical National Sentenced, Facing Deportation for Trafficking Fentanyl, Crack Cocaine, CocaineRead the Press Release
PROVIDENCE – A Dominican national previously convicted in Massachusetts on drug trafficking charges and for illegally entering the United States was sentenced on Thursday in U.S. District Court in Providence to eight years in federal prison for trafficking fentanyl, crack cocaine, and cocaine.
In May 2018, Rhode Island State Police developed information that Cristian Alberto Germosen Reynoso, 42, of Providence, who had been arrested and convicted multiple times in Massachusetts on drug charges, was allegedly dealing heroin in Rhode Island. Law enforcement surveillance of Reynoso’s residence revealed activity consistent with drug trafficking.
Around that same time, a state arrest warrant was issued for Germosen after it was determined that he provided law enforcement a driver’s license in the name of another individual during a motor vehicle stop for a traffic violation. It was also determined that Germosen was wanted by the U.S. Marshal Service in Boston for violating the terms of his supervised release in relation to a sentence imposed for conspiracy to distribute five or more kilograms of cocaine.
On June 27, 2019 Rhode Island State Police executed a federal court-authorized search of Germosen’s Providence residence and seized nearly 660 grams of fentanyl, 602 grams of a heroin/fentanyl mixture, 78.42 grams of cocaine, 1.38 grams of cocaine salts, a kilo press, $6,216.00 in cash, and various items used in the sale, packaging, and distribution of narcotics.
According to information presented to the court, following his arrest, Germosen admitted to law enforcement that he obtained and had been using a stolen identity he obtained several years earlier.
Germosen pleaded guilty in U.S. District Court in Providence on September 21, 2020, to possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 28 grams or more of cocaine base, and possession with intent to distribute cocaine.
On Thursday, U.S. District Court Judge Mary S. McElroy sentenced Germosen to 96 months in federal prison to be followed by four years of supervised release, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
Germosen faces deportation proceedings upon completion of his term of incarceration in federal prison.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Doctor Sentenced for Social Security FraudRead the Press Release
SAN JUAN, P.R. – Doctor Americo Oms-Rivera, 67, was sentenced to five years of probation by United States District Judge Francisco A. Besosa for conspiracy to commit wire fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Oms-Rivera plead guilty to conspiracy to commit wire fraud on October 23, 2020.
As part of the sentence imposed, Oms-Rivera will pay $321,000 in restitution in favor of the Social Security Administration (SSA) and a $7,500 fine to be paid in 60 days. Oms-Rivera will also forfeit a property in Harbour Lights Estate in Palmas Del Mar, Humacao, PR, will surrender his DEA license and will be excluded from participating in SSA case assessments, Medicare, Medicaid and all other federal health care benefit programs.
This case was jointly investigated by the Social Security Administration Office of the Inspector General, New York Field Division, the Drug Enforcement Administration and the Puerto Rico Police Bureau, with assistance from the Federal Bureau of Investigation and the Office of the Inspector General – Health and Human Services.
On August of 2016, a Federal Grand Jury in the District of Puerto Rico returned a 16-count indictment charging Dr. Americo Oms-Rivera, his secretary Mayte González Muñoz, and Francisco Cabrera Alvarado, a former Social Security Administration (SSA) employee, for fraud in the application process for SSA disability insurance benefits in Puerto Rico. González-Muñoz and Cabrera Alvarado plead guilty on March of 2017. As part of this scheme, Oms-Rivera admitted having backdated medical records of patients applying for disability insurance benefits by creating fictitious medical appointments that never took place. This was done to create the appearance of a longer history of medical treatment and for the purpose of deceiving the SSA into approving disability insurance benefits.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits. Fraud schemes, such as the one perpetrated in this case, compromises the SSA’s limited funding and its ability to reach those in need of benefits.
“This defendant abused the trust placed in him as a professional for personal gain. We thank our law enforcement partners for their outstanding efforts and steadfast commitment to this case,” said U.S. Attorney Muldrow.
“This sentence reflects years of work by our investigators, and the U.S. Attorney’s Office, to stop this scheme to defraud taxpayers, and hold accountable those responsible,” said Inspector General Ennis. “We will continue to uphold the integrity of SSA’s disability programs by aggressively pursuing facilitators in the claims process who abuse the trust placed in them.”
Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez from the Social Security Administration was in charge of the prosecution of the case. This case was investigated by the Social Security Administration Office of the Inspector General, New York Field Division, under the supervision of Special Agent-in-Charge John Grasso, jointly with the Drug Enforcement Administration and the Puerto Rico Police Bureau. The Federal Bureau of Investigation and the Office of Inspector General Health and Human Services also assisted during the investigation.
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Dangerous Kentucky Felon Sentenced to Nearly 16 Years in Federal Prison for Violent Elizabethtown CarjackingRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge David J. Hale this week sentenced Joshua J. Logsdon, 36, of Sonora, Kentucky to 190 months’ imprisonment, followed by five years of supervised release, for an armed carjacking that occurred on February 26, 2019, in Elizabethtown, Kentucky, announced Acting United States Attorney Michael A. Bennett.
“This case serves as a reminder to all of the dangers law enforcement officers confront on a daily basis and as an example of the extraordinary work they do to bring violent criminals to justice,” said Michael A. Bennett, Acting United States Attorney. “The citizens of the Western District of Kentucky are fortunate to have the men and women of the Elizabethtown Police Department, Kentucky State Police, and the ATF on duty to serve and protect us.”
“During this armed carjacking - the defendant, Joshua Logsdon, pointed a loaded firearm at the owner of a vehicle, and fired the weapon as the victim attempted to escape. Further, responding police officers were placed in substantial danger when the defendant drove the stolen car directly at them. The federal sentence of nearly 16 years in prison without the possibility of parole is appropriate for this violent crime,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF is thankful to our law enforcement partners who risk their lives to protect our communities.”
“This investigation is a perfect example of the partnership between Federal and local officials in law enforcement and prosecutors. As we continue to work together against violent crime in our communities, it’s great to see examples of how our federal partners are willing to be vested in our efforts”, stated Elizabethtown Police Chief Jeremy Thompson.
Logsdon previously pleaded guilty to carjacking, use and discharge of a firearm during a crime of violence, and being a felon in possession of a firearm, on October 22, 2020, in United States District Court.
The case began when Elizabethtown police were assisting detectives with the Greater Hardin County Narcotics Task Force during a drug investigation. When Elizabethtown Police officers attempted to stop a car, Logsdon fled on foot to a nearby residence. Logsdon, who was armed with a Taurus .380 pistol, stole a 2013 Nissan Altima, in Hardin County, Kentucky, by force from the owner of the vehicle. During the carjacking, Logsdon fired a shot as the owner escaped.
As police officers arrived on the scene, Logsdon drove the stolen car directly at the officers, causing the officers to fire their service weapons at the vehicle. Logsdon continued driving through Elizabethtown at a high rate of speed, with police officers in pursuit. Kentucky State Police joined the pursuit on Interstate 65, until the vehicle crashed in a Sonora, Kentucky field.
Logsdon had been convicted of multiple felony offenses including drug possession, burglary, manufacturing a Controlled Substance (methamphetamine) and felon in possession of a firearm before committing the armed carjacking.
This case was prosecuted by Assistant United States Tom Dyke and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Elizabethtown Police Department and Kentucky State Police. Logsdon is also being prosecuted by the Hardin County Commonwealth’s Attorney for felony charges related to the offense.
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
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Cuyahoga Falls man sentenced to six and a half years for receipt and distribution of child pornographyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that Matthew Passalaqua, age 52, of Cuyahoga Falls, Ohio, was sentenced by U.S. District Court Judge Christopher A. Boyko to 80 months imprisonment after he pleaded guilty to receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct.
“Any person using the ‘anonymity’ of the internet to prey upon our children is a danger to the entire community,” said Acting United States Attorney Bridget M. Brennan. “Every instance in which we identify and bring a child predator to justice should serve as a message to any other potential offender - our work continues and we will ensure that those who commit crimes against children are held accountable.”
"Possessing and distributing the sexually explicit photos of minors is incomprehensible,” said FBI Special Agent in Charge Eric B. Smith. “Unfortunately, the peddlers and producers of these horrific images persist. Those who participate in this illegal trade should know the FBI and our law enforcement partners will never cease in our efforts to identify online child predators and ensure they are brought to justice for their unfathomable crimes against children."
According to court records, in September of 2019, Passalaqua began an online conversation with an undercover FBI agent on a mobile communication application. Passalaqua, using an online alias, expressed interest in talking about sexually explicit pictures of children and the undercover agent’s purported ten-year-old son and eight-year-old daughter.
Throughout the course of several days, Passalaqua sent the undercover agent multiple videos and images depicting real minors engaged in sexually explicit conduct and a picture of himself. FBI agents identified Passalaqua through a series of subpoenas that produced the IP address and home address associated with his online username. On November 15, 2019, FBI agents contacted Passalaqua at his place of business and executed a search warrant for his person. Passalaqua agreed to an interview with the agents and confirmed that he had communicated with the undercover officer and sent the picture of himself.
Passalaqua pleaded guilty to one count of receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct in October of 2020.
This matter was investigated by the Cleveland Division of the FBI and was prosecuted by Assistant United States Attorney Carol M. Skutnik.
Cumberland County Man Sentenced to Eight Years in Prison for Distributing Child PornographyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 96 months in prison for distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Bruce Jackson, 32, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging him with one count of distributing child pornography. Judge Hillman imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Jackson used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. Between November 2017 and June 2018, law enforcement downloaded 61 videos of child sexual abuse from Jackson’s computer. After executing a search warrant at Jackson’s home in August 2018, agents located more than 300 videos of child sexual abuse on one of Jackson’s thumb drives. Jackson admitted that he used the peer-to-peer file-sharing program to make images and videos of child sexual abuse available for others to download from his computer.
In addition to the prison term, Judge Hillman sentenced Jackson to five years of supervised release and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations – Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office’s Criminal Division in Trenton and Assistant U.S. Attorney Kristen Harberg of the U.S. Attorney’s Office’s Criminal Division in Camden.
Connecticut Woman Charged with Defrauding Former Employers in New JerseyRead the Press Release
NEWARK, N.J. – A Connecticut woman was arrested today and charged with engaging in a scheme to divert more than approximately $540,000 in payments owed to her former employers by using an unauthorized PayPal account to misappropriate the funds for personal use, Acting U.S. Attorney Rachael A. Honig announced today.
Melissa Corso, 50, of Groton, Connecticut, is charged by complaint with two counts of wire fraud. She made her initial appearance today in the U.S. District Court for the District of Connecticut, prior to her transfer to the District of New Jersey.
According to the complaint:
From February 2013 through July 2019, Corso misappropriated approximately $540,000 in customer payments owed to her former employers by directing their customers to submit their payments to a PayPal account linked to Corso’s work email address, which Corso had access to and control over. Corso sent one-time payment links to certain customers via her work email account with instructions to submit payment to her PayPal account, which was not authorized to receive these payments.
In total, Corso caused the victim companies’ customers to pay over approximately $3.1 million of funds due to the companies into her PayPal account through approximately 1,150 transactions. Using her work email address, Corso made multiple withdrawals from the PayPal account and diverted the funds to other PayPal accounts linked to personal email accounts of Corso and two other individuals, as well as to various commercial retailers, including eBay; Bloomingdale’s; Best Buy; Dick’s Sporting Goods; GrubHub; Forever 21; Louis Vuitton; MAC Cosmetics; and Target. A number of purchases from these commercial retailers were shipped to the home or work addresses of Corso and the two individuals.
To hide the fact that significant portions of customer payments were being fraudulently diverted for personal use, Corso doctored the victim companies’ internal records, including customer statements prepared by Corso that falsely showed that customer payments were applied correctly (i.e., in their entirety), when portions of those payments had actually been misapplied by Corso. She was able to perpetuate the fraud in this manner for years based on her role and responsibilities for coordinating the collection of customer payments and applying payments to customer invoices.
Each charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Compounding Pharmacy and Owner Plead Guilty to Health Care Fraud and Kickback Scheme that Led to $14 Million in PaymentsRead the Press Release
LOS ANGELES – A West Los Angeles pharmacy and its owner pleaded guilty today to federal criminal charges stemming from a scheme in which millions of dollars in reimbursements for compounded drugs were generated through the payment of illegal kickbacks for patient referrals and by fraudulently paying patients’ copayments.
Navid Vahedi, 41, of Brentwood, pleaded guilty to one count of conspiracy to commit health care fraud and payment of illegal remunerations. Vahedi today also entered a guilty plea to the felony offense on behalf of his business, Fusion Rx Compounding Pharmacy.
Fusion Rx was a provider of compounded drugs, which are tailor-made products doctors may prescribe when the FDA-approved alternative does not meet the health needs of a patient. In their plea agreements, Vahedi and Fusion Rx admitted routing millions of dollars in kickback payments through the businesses of two marketers to steer prescriptions for compounded drugs to Fusion Rx. As part of the scheme, Vahedi and the two marketers provided physicians with preprinted prescription script pads that offered “check-the-box” options on the form to maximize the amount of insurance reimbursement for the compounded drugs. From May 2014 to at least February 2016, Fusion Rx received approximately $14 million in reimbursements on its claims for compounded drug prescriptions.
As part of its contracts with various insurance networks, Fusion Rx was obligated to collect copayments from patients. Because the copayments might discourage patients from requesting expensive and potentially unnecessary compounded drug prescriptions, Fusion Rx did not collect copayments with any regularity and, in other instances, it provided gift cards to patients to offset the amount of the copayments, according to court documents. After an audit raised concerns that Fusion Rx’s failure to collect copayments would be discovered, Vahedi directed Fusion Rx funds to be used to purchase American Express gift cards, which were then used to make copayments for certain prescriptions without the patients’ knowledge. Fusion Rx then submitted claims on these prescriptions to various insurance providers, falsely representing that patients had paid the required copayments.
Vahedi and Fusion Rx pleaded guilty before United States District Judge Christina A. Snyder, who scheduled a sentencing hearing on June 28, at which time Vahedi will face a statutory maximum sentence of five years in federal prison. Both defendants have agreed to pay restitution related to the copayment reimbursement part of the scheme, which is estimated to be $4,405,926. In addition to his obligation under the plea agreement to pay restitution, Vahedi also agreed to forfeit $1,338,511.
Under the terms of the plea agreements, Fusion Rx has also agreed to pay a fine sufficient to divest itself of all its remaining assets, Vahedi has agreed to have his pharmacist license revoked, and both Vahedi and Fusion Rx will be excluded from federal health care programs such as Medicare and Medicaid going forward.
The two marketers involved in the scheme – Joshua Pearson, 41, of St. George, Utah, and Joseph Kieffer, 40, of West Los Angeles – previously pleaded guilty in this case and are scheduled to be sentenced by Judge Snyder, respectively, on May 24 and June 28.
This matter was investigated by the Defense Criminal Investigative Service, the FBI, the Amtrak Office of Inspector General, the Office of Personnel Management’s Office of Inspector General, and the Office of Inspector General for the United States Department of Health and Human Services.
This case is being prosecuted by Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Jonathan S. Galatzan of the Asset Forfeiture Section.
Chicopee Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Chicopee man pleaded guilty yesterday in federal court in Springfield to drug distribution charges.
Brett Garcia, 33, pleaded guilty to possessing with intent to distribute 100 grams or more of heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 21, 2021. Garcia was indicted in May 2020.
Garcia possessed with intent to distribute 100 grams or more of heroin on Feb. 28, 2020 in Hampden County. The indictment was the result of an investigation into heroin trafficking in Chicopee.
The charging statute provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of $2 million. Sentences are imposed by a federal district court judge based on 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, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Chicopee Police Chief William R. Jebb made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
California Private Equity Executive Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A former senior executive at TPG Capital, a global private equity firm, has agreed to plead guilty in connection with his involvement in the college admissions case.
William E. McGlashan, Jr., 57, has agreed to plead guilty to one count of wire fraud and honest services wire fraud. A plea hearing has not yet been scheduled.
McGlashan, the former managing partner of TPG Growth and co-founder of The Rise Fund, will plead guilty to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer $50,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct McGlashan’s son’s exam answers to obtain a fraudulently inflated score.
Singer, Dvorskiy, and Riddell have pleaded guilty for their respective roles in the scheme.
Under the terms of McGlashan’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of three months in prison, two years of supervised release with 250 hours of community service and a fine of $250,000.
McGlashan will be the 30th parent to plead guilty in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of wire fraud and honest services wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brighton Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A local attorney was sentenced today in federal court in Boston for child pornography charges.
Hanford Chiu, 30, was sentenced by U.S. District Court Judge Denise J. Casper to 110 months in prison and five years of supervised release. In February 2020, Chiu was convicted by a federal jury of one count each of receipt and possession of child pornography. Chiu was arrested and charged in August 2018.
Following a search of Chiu’s residence in Brighton on Aug. 22, 2018, forensic analysis of Chiu’s custom-built desktop computer revealed over 23,000 images and videos of child pornography. Chiu had accessed child pornography files as recently as the morning law enforcement agents executed the federal search warrant at his home.
United States Attorney Andrew E. Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorneys Anne Paruti and Adam Deitch of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Brevard County Man Sentenced to over 15 Years for Trafficking FentanylRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Jesse Bernard Robinson, Jr. (34, Brevard County) to 15 years and 8 months in federal prison for conspiracy to possess with the intent to distribute fentanyl. Robinson had pleaded guilty on November 9, 2020.
According to court documents, during a three-month period in 2020, Robinson sold approximately 115 grams of fentanyl to a law enforcement confidential source. In addition, at the time of his arrest, Robinson had the following drugs in his possession: 7 grams of fentanyl, 14 grams of a mixture of heroin and fentanyl, 15 grams of cocaine, and 23 grams of crack cocaine. Each of these narcotics were packaged for distribution.
This case was investigated by the Drug Enforcement Administration and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Braddock Man Indicted on Firearms ChargeRead the Press Release
PITTSBURGH - A resident of Braddock, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Andrea Gray, 26, as the sole defendant.
According to the Indictment, on July 21, 2020, Gray possessed a firearm after having been convicted of a felony. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Boston Man Arrested on Methamphetamine Distribution ChargesRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with methamphetamine distribution.
Daniel Lennon, 31, was charged by criminal complaint with one count of distribution of five grams or more of methamphetamine and one count of distribution of 50 grams or more of methamphetamine. Lennon was detained following an initial appearance in federal court in Boston today.
According to charging documents, investigators conducted two undercover purchases of approximately 28 grams and 112 grams of methamphetamine, respectively, on Jan. 13 and 19, 2021.
The charge of distribution of five grams or more of methamphetamine carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of distribution of 50 grams or more of methamphetamine carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance with the investigation. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belchertown Man Sentenced for Federal Firearm OffensesRead the Press Release
BOSTON – A former federal firearm licensee was sentenced today in federal court in Springfield for firearms charges.
Max T. Gaj, 30, of Belchertown, was sentenced by U.S. District Court Judge Mark D. Mastroianni to 18 months in prison and three years of supervised release. In September 2020, Gaj pleaded guilty to receipt and possession of unregistered firearms, receipt and possession of National Firearm Act (NFA) firearms not identified by serial number, making a firearm in violation of the NFA, selling firearms in violation of state and local laws, and making false entries in, failing to make appropriate entries in, and failing to properly maintain records as required.
Gaj, who was a federal firearms licensee and part owner of Dark Horse Gunsmithing in South Hadley, received and possessed three firearms: a machinegun, a machinegun bearing no serial number and a shotgun. The firearms were not registered to him in the National Firearms Registration and Transfer Record, as required by the NFA. Gaj also made a machinegun in violation of the NFA.
In addition, Gaj sold two firearms, a Glock Model 17 pistol and a Glock Model 43 pistol in violation of state law. Gaj also made false entries, failed to make appropriate entries and failed to properly maintain records as required of a federal firearms licensee.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney Catherine G. Curley of Lelling’s Springfield Branch Office prosecuted the case.
Arizona Man Pleads Guilty to Smuggling Marijuana in Luggage on Flight from San Francisco to St. CroixRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Armando Antonio Mena, age 29 of Arizona, pleaded guilty on February 5, 2021 in federal court to possession of marijuana with intent to distribute.
According to court documents, Armando Antonio Mena traveled to St. Croix, U.S. Virgin Islands on May 27, 2020, on a flight that originated in San Francisco, California. On that flight, he transported checked luggage containing twenty-two individually wrapped vacuum sealed bags that contained approximately ten kilograms of marijuana, the amount and packaging being consistent with drug distribution.
Mena faces up to five years’ incarceration and a fine of up to $250,000.00. A sentencing date has been set for June 9, 2021.
The case was investigated by Homeland Security Investigations and U.S. Customs and Border Patrol. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
4 February 2021
“Serial Fraudster” Sentenced to Two Years in Prison for Mail Fraud ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Wavy Curtis Shain, 38, of La Grange, Kentucky was sentenced to 24 months in federal prison for conspiring to commit mail fraud. Shain pleaded guilty to the charge in September 2020. U.S. District Judge Janet T. Neff also ordered Shain to pay $23,373.92 in restitution and imposed a $40,000.00 fine.
In 2017, Shain was on supervised release for a prior federal mortgage fraud conviction when he conspired with an individual in the Western District of Michigan (“Person A”) to fraudulently obtain loans for an Okemos-based health care provider, Advanced Medical Services, P.L.L.C. (d/b/a Advanced Sleep Diagnostics of Michigan). Shain received fraudulent loan documents, completed and signed in the name of another individual (“Person B”), from Person A. Shain falsely authenticated those forged signatures by placing fake notary stamps and fake notary signatures on certain loan documents, including documents representing that Person B would personally guarantee the loans. Shain then mailed the fraudulent loan documents to out-of-state lenders. Person B was not aware that his identity was being used to procure these business loans.
In May 2018, during the investigation of Person A, Shain lied to the FBI and claimed he had no role in the loan applications. At the time, however, Shain was using Person B’s identity in another loan fraud scheme. At sentencing, Judge Neff described Shain as a “serial fraudster” and described crimes involving identity theft as “horrendous offenses against an individual.”
“The Court imposed a well-deserved sentence that reflects the seriousness and pattern of Shain’s financial crimes,” said U.S. Attorney Birge. “I commend law enforcement—including our federal partners in Kentucky—for their extraordinary efforts in investigating this case.”
The investigation was conducted by the U.S. Attorney’s Office for the Western District of Michigan, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and Blue Cross Blue Shield of Michigan. Agents from the IRS Criminal Investigation Division and the Federal Deposit Insurance Corporation, Office of Inspector General in Louisville, Kentucky provided substantial and valuable assistance in this case. Assistant U.S. Attorney Adam B. Townshend represented the United States.
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Yassein Said Found Guilty of Concealing‘10 Most Wanted’ Suspect Yaser Said from ArrestRead the Press Release
A federal jury has found the brother of capital murder suspect Yaser Said guilty of helping the “10 Most Wanted” suspect evade capture for more than 12 years, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After four hours of deliberation, the jury on Thursday found Yassein Abdulfatah Said, Yaser Said’s 59-year-old brother, guilty on all counts: one count of conspiracy to conceal a person from arrest, one count of concealing a person from arrest, and one count of conspiracy to obstruct an official proceeding.
His coconspirator, his 32-year-old nephew Islam Said, pleaded guilty to the same charges prior to trial.
“Yassein Said provided cover for his brother, an accused murder, for years, diverting significant law enforcement resources and delaying justice for his nieces. The Northern District of Texas is proud to bring Mr. Said to justice. We hope the verdict brings a measure of comfort for those who loved Sarah and Amina,” said Acting U.S. Attorney Prerak Shah.
“Yassein Said protected his brother and accused murderer, Yaser Said, by providing aid and comfort to him while he was a fugitive. By taking the law into his own hands, Yassein Said delayed justice for the victims, Amina and Sarah, and their family,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno.
According to evidence presented at trial, Yassein Said sheltered his brother from arrest in an attempt to subvert the administration of justice.
Yaser Said had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, he shot the girls to death inside his taxicab and abandoned their bodies inside the vehicle. He was captured by the FBI’s Violent Crimes Task Force in August 2020, and is currently in state custody.
Conspiring with his nephew, Yaser’s son Islam, Yassein Said helped harbor Yaser inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017.
He later harbored his brother inside a home in Justin, Texas. On Aug. 25, 2020 FBI agents observed Mr. Said and his nephew deliver grocery bags to the residence, then followed the men to a shopping center 20 miles away, were they dumped trash retrieved from the home.
Both Yassein and Islam now face up to 30 years in federal prison. Sentencing has been set for June 4.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany H. Eggers and Errin Martin are prosecuting the case with counsel from appellate Assistant U.S. Attorney Jonathan Bradshaw. U.S. District Judge Reed C. O’Connor presided over the trial in Fort Worth.
Woman Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
BOSTON – A woman who conspired with a member of the Fitchburg Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.
Sophia Velasquez, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for May 26, 2021.
Velasquez admitted to conspiring with Dairon Rivera, a/k/a “King Mafia,” to sell 17 grams of fentanyl to a cooperating witness in an audio/video recorded sale that took place in December 2017.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Velasquez is the 32nd defendant to plead guilty in the case. Rivera pleaded guilty in December 2020 and is scheduled to be sentenced on April 1, 2021.
The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division 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.
Woman Pleads Guilty to Accessing and Releasing Sensitive, Non-public InformationRead the Press Release
An Iowa woman pleaded guilty today for unlawfully using a former Department of Justice contractor’s government computer to access government records and to obtain sensitive, non-public law enforcement information, announced Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.
According to admissions made in connection with her guilty plea, Rachel Manna, 33, of West Des Moines, was acquainted with Danielle Taff, who was employed as a contractor paralegal by the U.S. Attorney’s Office for the Southern District of Iowa. Taff was assigned to the office’s Civil Division, where she worked exclusively on matters related to civil forfeiture and was neither required nor authorized to access files and information related to the district’s investigation and prosecution of criminal cases.
Manna admitted that in the spring of 2018, she asked Taff to obtain non-public information about certain defendants in a criminal investigation and prosecution being handled by the U.S. Attorney’s Office. As a result, on or about May 16, 2018, Taff used her U.S. Department of Justice computer to access criminal files stored on the district’s shared electronic data storage drive, including reports of law enforcement interviews with at least two individuals who cooperated with the district in a drug-trafficking investigation. Taff then used her cell phone to take approximately 30 photographs of the sensitive, non-public documents related to the drug-trafficking investigation.
After photographing the documents, Taff shared them with Manna, who subsequently shared the photographs with several individuals on Facebook. As a result, in October 2018, other individuals posted those photographs to a Facebook group dedicated to outing “snitches,” or law enforcement cooperators, in the Des Moines region. Among other sensitive information, the photographs taken by Taff and subsequently posted on Facebook identified at least two cooperators in the drug-trafficking investigation by name and other personal identifiers.
Taff pleaded guilty in November 2020 for her role in the scheme and is scheduled to be sentenced March 9. Sentencing for Manna is scheduled for June 4.
The Department of Justice Office of the Inspector General, Chicago Field Division, is investigating the case. Trial Attorneys Erica O’Brien Waymack and Matthew Palmer-Ball of the Criminal Division’s Public Integrity Section are prosecuting the case.
Waterbury Man Sentenced to 4 Years in Federal Prison for Role in Fentanyl and Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JEFFREY TAVAREZ, 22, of Waterbury, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by four years of supervised release, for his role in a heroin and fentanyl trafficking ring.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.
On May 18, 2019, Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge. On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin. Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
During the investigation, Tavarez was intercepted on calls coordinating the purchase of narcotics from both the Sosa-Ortiz organization and from other individuals who sometimes supplied the Sosa-Ortiz organization with narcotics. Tavarez then sold the drugs to his own customers.
Tavarez and several co-defendants were arrested on October 29, 2019. On that date, investigators executed five search warrants and seized approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash. Tavarez possessed nearly 40 grams of fentanyl packaged for distribution at the time of his arrest.
On October 20, 2020, Tavarez pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin and fentanyl.
Tavarez, who is released on a $100,000 bond, is required to report to prison on March 17, 2021.
Sixteen individuals were charged as a result of this investigation. Sosa-Ortiz pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren Clark and Jocelyn Courtney Kaoutzanis 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.
Warsaw Couple Arrested on Methamphetamine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Michael Scott Bullers, 62, and Pearl Susan Mibbs, 54, both of Warsaw, NY, were arrested and charged by criminal complaint with conspiring and attempting to possess with intent to distribute 50 grams or more of methamphetamine. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Sean Eldridge, who is handling the case, stated that according to the complaint, on January 30, 2021, U.S. Postal Inspectors were alerted to a suspect parcel sent from Azusa, CA and addressed to defendant Bullers on Gouinlock Street in Warsaw. On February 2, 2021, a search warrant was executed on the package which contained approximately 85 grams of suspected crystal methamphetamine.
On February 1, 2021, defendant Mibbs filed an online customer complaint with the Postal Service for the delayed delivery of the subject parcel. The following day, an undercover investigator sent an email to Mibbs stating that the subject parcel was located in Rochester, NY, and would be available for pickup at the Warsaw Post Office. On February 3, at approximately 4:19 p.m., the defendants arrived at a gas station across the street from the Warsaw Post Office. While defendant Bullers went into the minimart, defendant Mibbs walked across the street to the post office. A few minutes later, Mibbs picked up the subject parcel, which was replaced with sham material, at the customer service counter and walked out of the Post Office. As Mibbs was taken into custody by investigators, Bullers, who was waiting across the street, attempted to drive away. He too was apprehended and taken into custody. Later that night, a search warrant was executed at the defendants’ residence in Warsaw. Investigators recovered several glass pipes, several tins containing small pieces of suspected crystal methamphetamine, and a digital scale. Investigators also found handwritten notes, including what appeared to be cryptocurrency passphrases.
The defendants made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and are being held pending detention hearings on February 8, 2021.
The complaint is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin; the New York State Police, under the direction of Major James Hall; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Warsaw Police Department, under the direction of Chief Peter Hoffmeister. Additional assistance was provided by the New York National Guard Counter Drug Task Force.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Waco Convicted Felon Sentenced to Maximum 10 Years in Federal PrisonRead the Press Release
A federal judge in Waco yesterday sentenced 32-year-old Brayshon Negale Cummings to the statutory maximum of 10 years in federal prison for being a convicted felon in possession of a firearm, announced U.S. Attorney Gregg N. Sofer.
On May 4, 2020, members of the U.S. Marshals Service Lone Star Fugitive Task Force, Waco Police officers and McLennan County Sheriff’s deputies arrested Cummings in Waco on a Falls County arrest warrant for an aggravated assault stemming from a shooting incident the day before. At the time of his arrest, Cummings was in possession of a Century Arms AK-47 pistol.
In addition to the prison term, U.S. District Judge Alan Albright ordered Cummings to pay a $500 fine and to serve three years of supervised release following his prison term. Cummings pleaded guilty to the felon-in-possession charge on September 15, 2020. His criminal history reveals prior felony convictions for aggravated assault, unlawfully carrying a firearm, assault-bodily injury and evading arrest/detention.
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. “Taking violent actors off the streets is a priority,” stated U.S. Attorney Sofer. “We simply cannot, and will not, stand idly by and watch as violent criminals take over the streets of our communities and harm innocent victims.”
The U.S. Marshals Service Lone Star Fugitive Task Force, Waco Police Department and McLennan County Sheriff’s Office investigated this case. Assistant U.S. Attorney Mark Frazier prosecuted this case on behalf of the government.
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United States Attorney’s Office for the Middle District of Pennsylvania Issues Its 2020 Annual ReportRead the Press Release
HARRISBURG – Acting U.S. Attorney Bruce D. Brandler today issued the 2020 Annual Report for the U.S. Attorney’s Office for the Middle District of Pennsylvania.
“I have reviewed the events of 2020 and am proud to report that our office, along with our law enforcement partners, had significant accomplishments last year despite the challenges presented by the Coronavirus Pandemic,” stated Acting U.S. Attorney Brandler. “In 2020, we successfully prosecuted numerous individuals engaged in serious criminal activity, thereby improving the quality of life for the people of our District. We also successfully represented the interests of the federal government in civil litigation, including obtaining significant monetary recoveries on behalf of the taxpayer. Last, but not least, we participated in numerous community outreach programs designed to educate the public and reduce recidivism, violent crimes, and opioid dependence.”
This report shows a highly effective and efficient operation. The accomplishments summarized in it are due to the hard work of numerous dedicated professionals, including former United States Attorney David J. Freed, who led the District with honor and distinction between 2017 and 2020.
“I am proud to work alongside each member of the U.S. Attorney’s Office and with our federal, state, and local law enforcement partners to pursue justice and make our communities safer,” said Acting U.S. Attorney Brandler. “I hope you find this Report informative and enlightening.”
United States Attorney Announces Joint Efforts to Prevent and Combat Human Trafficking in the Middle District of FloridaRead the Press Release
Tampa, FL - United States Attorney Maria Chapa Lopez announces efforts, in partnership with federal, state, and local agencies, to prevent and combat human trafficking in the Middle District of Florida during National Slavery and Human Trafficking month and in preparation for Super Bowl LV in Tampa. The United States Attorney’s Human Trafficking Task Force stands at the forefront of law enforcement’s combined efforts to inform and protect communities across the district every day, and it is especially vigilant in preparation for large interstate events.
“Here in the Middle District of Florida, we are committed to protecting our most vulnerable citizens from becoming human trafficking victims,” said United States Attorney Chapa Lopez. “Human trafficking is a multi-billion dollar industry. It is our responsibility to aggressively prosecute those who endeavor to exploit it for their financial gain and to educate our community to be on the lookout for the signs of human trafficking.”
During the 31 days of National Slavery and Human Trafficking month (January), the Human Trafficking Task Force, headed by AUSA Lisa Thelwell and with the support of the USAO-MDFL community outreach coordinators, assisted in the coordination and safe delivery of various virtual events to enable broader participation in joint human trafficking efforts, while preventing the spread of COVID-19. These presentations included:
- The Threat of Human Trafficking presentation to more than 500 Brevard County law enforcement partners during the Space Coast Human Trafficking Task Force Symposium
- A collaborative workshop with the Department of Juvenile Justice, the St. Petersburg College, and the City of St. Petersburg involving more than 200 community members from Hillsborough, Lee, Pasco, Polk, and Pinellas counties concerning human trafficking and its effects on communities
- A partnership with the Tampa Bay Human Trafficking Task Force training law enforcement officers from 35 different agencies and prosecutors from 8 different prosecutorial offices regarding the detection, victim assistance, and prosecution of human trafficking crimes
- Trained the Freedom 7 Human Trafficking Task Force consisting of more than 200 members from Volusia, Flagler, Putnam, St. Johns, Hernando, Hillsborough, Lee, Manatee, Pasco, and Pinellas counties on how to deter and pursue human traffickers
- Trained the Gateway to Freedom Human Trafficking Task Force, including 168 law enforcement officers, public safety officials, educators, and social service providers in Columbia, Suwannee, and Hamilton counties on a multidisciplinary approach to eliminate human trafficking
- Panel discussion facilitated by the Federal Bureau of Investigation, including over 400 law enforcement and community members, concerning the priority of human trafficking detection and prosecution
- Distributed emergency supply kits and resources to at-risk trafficking individuals
These efforts follow the USAO-MDFL Human Trafficking Task Force’s preparations throughout the last year to maintain vigilance and further reduce the opportunities for human trafficking in preparation for Super Bowl LV, including a focused training in August 2020, hosted by the International Association of Human Trafficking Investigators, regarding combating human trafficking during large-scale events. The United States Attorney also has assigned a team that stands ready to respond to human trafficking threats during the national event.
In addition to providing education, prevention, and technical and training assistance, the USAO-MDFL also vigorously prosecutes human trafficking crimes. Some of the most recent cases include:
United States v. Christopher John Streeter – In January 2021, Streeter was sentenced to life in federal prison for sex trafficking minors. Streeter participated in a scheme that sexually exploited children in the Philippines in order to produce child sex-abuse videos of children as young as 12 and 13 years old, who were particularly vulnerable due to poverty and illness. This case was investigated by Homeland Security Investigations (Tampa and Manila), with assistance from the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
United States v. David Alan Quarles – In January 2021, Quarles was indicted and charged with conspiracy, sex trafficking by force, fraud, or coercion; importation of an alien for the purpose of prostitution; transportation of an individual in interstate commerce for the purpose of prostitution, and using a facility of interstate commerce in aid of prostitution. If convicted on all counts, Quarles faces a maximum penalty of life in federal prison. This case was investigated by Homeland Security Investigations and the U.S. Coast Guard Investigative Service. It is being prosecuted by Assistant United States Attorney Colin McDonell.
United States v. Gregory Thomas Garcia – In October 2020, Garcia was charged with sex trafficking a minor. If convicted, Garcia faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
United States v. Luis Berrios-Trinidad – In July 2020, Berrios-Trinidad was sentenced to 11 years and 3 months in federal prison for sex trafficking minors. Berrios-Trinidad arranged to bring female children to a hotel for a “sex party” with adult men. Berrios-Trinidad was arrested and the victims he had brought, ages 14 and 17, were rescued. This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
United States v. Edward Alan Hardin – In July 2020, Hardin was charged with two counts of sex trafficking minors and four counts of using a cellular phone to entice children to engage in unlawful sex acts. Hardin faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. This case was investigated by Homeland Security Investigations, the Clay County Sheriff’s Office, and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
U.S. Attorney Sofer Announces Operation Undaunted in San AntonioRead the Press Release
Operation Undaunted, a program designed to apprehend dangerous criminals, interrupt violence, protect innocent life and restore peace to local neighborhoods, is underway in San Antonio, announced U.S. Attorney Gregg N. Sofer.
“We simply cannot, and will not, stand idly by and watch as violent criminals take over the streets of our communities and harm innocent victims,” said U.S. Attorney Sofer. “Despite the challenges of the coronavirus and the unfair vilification of the entire law enforcement community, we remain undaunted in our commitment to protect the residents of central and west Texas.”
Operation Undaunted is a four-prong approach that draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to combat violence. The first component is to increase the use and exploitation of the National Integrated Ballistic Information Network (NIBIN) to focus on the most violent offenders in local communities—shooters. Aggressively comparing ballistics evidence gathered from crime scenes as well as from recovered firearms to uncover ties between offenders and violent crimes is of utmost importance. The second component is to focus on removing from our communities incorrigible, repeat offenders who fail to rehabilitate, continue committing violent acts, including domestic violence, and pose an ongoing danger to law-abiding citizens and victims. The third component calls for assertive federal prosecution of the most violent and serious robbery cases including those in which a firearm was used, that was committed by gang members, cartels or crews, or that involved thefts from gun stores and other federal firearms licensees spanning multiple jurisdictions. The fourth component is to engage in collaborative investigation and prosecution with military authorities to address violent crimes that occur on military bases while adhering to Posse Comitatus.
Operation Undaunted represents federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities. “Taking violent actors off the street is a priority,” said U.S. Attorney Sofer. Recently local and federal law enforcement joined forces to arrest and charge three repeat violent offenders:
- A federal grand jury on Wednesday returned an indictment charging 31-year-old San Antonio resident Asia Victor Tsatenawa with one count of possession with intent to distribute “crack” cocaine; one count of possession with intent to distribute cocaine; two counts of being a convicted felon in possession of a firearm; and one count of possessing a firearm in furtherance of a drug trafficking crime. Court records allege that on December 3, 2020, Tsatenawa possessed an AK-47 style pistol. When Tsatenawa was arrested on December 8, 2020, by the San Antonio Police Department he was also in possession of cocaine, crack cocaine and two 9 mm pistols. Upon conviction of the charges, Tsatenawa faces between five years and life in federal prison. Tsatenawa, a documented gang member, was previously convicted of aggravated assault with a deadly weapon and possession of cocaine in Bexar County and being a federal felon in possession of a firearm in the Western District of Texas.
- A federal grand jury indicted 45-year-old San Antonio resident Charles Allen Scott last month for being a convicted felon in possession of ammunition. According to the indictment, Scott was in possession of a single round of .357-caliber ammunition on October 6, 2020. Court documents allege that a spent shell casing recovered at a scene where Scott fired a gun is linked via NIBIN to three other separate shootings in the San Antonio area. Upon conviction, Scott faces up to 10 years in federal prison. He remains in federal custody. Scott was previously convicted four times of aggravated assault with a deadly weapon in Bexar County.
- Dylan James Rivas is charged by a federal grand jury indictment with being a Felon in Possession of a Firearm. According to court records, Rivas was in possession of a Glock 9 mm pistol on April 17, 2020. That same 9 mm pistol is linked via NIBIN to two shootings in San Antonio. Rivas, a documented gang member, was previously convicted of aggravated robbery and assault family violence in Bexar County. Rivas remains in federal custody pending his trial currently scheduled for next month.
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U.S. Attorney Mike Stuart: Office Collects a Total of More Than $32 Million for Taxpayers in FYs 2019 & 2020Read the Press Release
Office Collections over Budget
Exceed $18.4 Million over Two Year Period
Collections Exceed Budget Over Period by more than 135%
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that his office collected $9,244,423.94 in FY 2020 and $22,761,541.52 in FY 2019, an amount more than $18.4 million over his office’s entire annual appropriated budgets for the same period. Of this amount, $29,082,086.10 was collected in civil actions and $2,923,879.33 was collected in criminal actions. The operating budget for the United States Attorney’s Office for the Southern District of West Virginia during the time period was approximately $13.6 million. Total collections exceeded the office’s budget by more than 135%.
“I am very proud of the incredible efforts of my team. During the last two fiscal years, our efforts brought in more than $18.4 million over the cost of all operations. In private sector terms, that’s called ‘remarkably profitable.’ A return for taxpayers in excess of 135% over two years is a return for which even the best companies would be proud, but we don’t do this to make a profit. We don’t do this to make money. We do this to deliver justice to victims, the taxpayers and our citizens,” said United States Attorney Mike Stuart. “The $18.4 million and 135% return represents a remarkable victory for victims and taxpayers. The $32 million collected by my office over the last two fiscal years demonstrates the significant return on investment that our work delivers. The substantial amount only includes the actual amounts collected and not the full amount of monies due as a result of our great work. Restitution often takes many years to realize. The taxpayers are the beneficiaries of great teamwork by my entire team and our federal, state and local law enforcement partners. We all share a commitment to ensuring that taxpayer dollars are used prudently and properly and that wrongdoers are held accountable for financial losses resulting from their crimes.”
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 U.S. 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. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim 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 fines imposed on individuals and/or corporations for violations of federal healthcare, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services on behalf of Medicare and Medicaid, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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.
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U.S. Attorney Announces Appointment of Civil Division Deputy Chief David S. Jones to Serve as Bankruptcy Judge in ManhattanRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, today announced that David S. Jones, the Deputy Chief of the Office’s Civil Division, has been appointed to serve as a United States Bankruptcy Judge in Manhattan. Mr. Jones will officially assume his duties on February 19, 2021.
Mr. Jones has served in the Office’s Civil Division for nearly 25 years. Mr. Jones previously served as Chief of the Tax and Bankruptcy Unit from 2002 to 2007, and as Chief Civil Division Appellate Attorney from 2007 until he assumed his current role in 2009. Mr. Jones is a past recipient of the Henry L. Stimson Medal for outstanding contributions to the Office.
Prior to joining the Office in 1996, Mr. Jones was in private practice for four years and was a law clerk to U.S. District Judge Morris E. Lasker. He is a graduate of Harvard Law School and Brown University.
U.S. Attorney Audrey Strauss said: “I am pleased and proud that David Jones has been selected to serve as a Bankruptcy Judge in this District. David has been a valued mentor and friend to so many colleagues in our Office. I am confident that David will be an exemplary Bankruptcy Judge.”
Two Felons Sentenced to Federal Prison for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that two felons were sentenced to federal prison for gun crimes.
John Brady Studenic, 33, of Parkersburg, a member of the Pagans Motorcycle Club, was sentenced to 42 months in prison for being a felon in possession of a firearm. Upon release, he will be under supervised release for an additional three years. The United States requested, and the Court imposed, a sentence above the range recommended by the United States Sentencing Guidelines for this case due to Studenic’s history of violence. Studenic previously admitted that he was riding a motorcycle on 7th Street in Parkersburg when an officer with the Parkersburg Police Department attempted to perform a traffic stop on him for running a red light at the intersection of 7th Street and Park Avenue. Once the officer activated his overhead lights and siren, Studenic fled eastbound on 7th Street toward Core Road. In the process, he was travelling approximately 90 miles per hour in a 35 mile per hour zone. Studenic passed multiple vehicles using either a turning lane or the oncoming lane, and ran an additional red light at the intersection of 7th Street and Fairview Avenue during the pursuit. Eventually, he wrecked the motorcycle on Core Road and was taken into custody following a brief physical struggle which he initiated by charging the arresting officer. Upon being apprehended, his person was searched and a loaded Taurus 9mm semi-automatic pistol was located in his waistband. Additional ammunition as well as approximately 20 grams of methamphetamine and a small amount of marijuana were also found in Studenic’s possession. Studenic was not legally permitted to possess a firearm due to a previous conviction for the felony offense of malicious assault on September 22, 2010, in Wood County Circuit Court. That prior conviction is the result of Studenic shooting another individual. The Parkersburg Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
Ronald Sayles, 43, of Charleston, was sentenced to 21 months in prison for being a felon in possession of a firearm. He also was sentenced to a concurrent term of eight months in prison for violating terms of his supervised release related to an underlying federal conviction for being a felon in possession of a firearm. Sayles admitted that on September 18, 2020, he was a passenger in a vehicle that crashed on Washington Street, East, in Charleston. When responding officers conducted a pat down of Sayles, they located a Ruger LC9, 9mm pistol in his jacket pocket. Sayles admitted to police officers that he knew he was prohibited from possessing the gun because of two prior felony convictions. In 2016, Sayles was convicted of being a felon in possession of a firearm in the U.S. District Court for the Southern District of West Virginia and, in 2002, he was convicted in Kanawha County Circuit Court of possession with intent to deliver a controlled substance. Sayles was still serving a term of federal supervised release in connection with the 2016 conviction. The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar Kordestani 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 Nos. 2:20-cr-00165 and 2:20-cr-00181.
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Two Federal Defendants Indicted on Charges Related to Attempted Escape from Sangamon County JailRead the Press Release
SPRINGFIELD, Ill. – Two federal defendants who were housed at the Sangamon County Jail, in Springfield, Ill., while in the custody of the U.S. Marshals Service, have been indicted with two others for conspiracy to escape from prison and conspiracy to possess contraband in prison in December 2020. The indictment, returned on Feb. 3, 2021, charges Randy Bull, 38, of Alton, Ill., and James Russwinkel, 36, of Springfield, Ill., both defendants in separate federal drug cases, along with Joshua Beechler, 40, and Allison Poorman, 26, both of Springfield, Ill.
On Aug. 12, 2020, U.S. Magistrate Judge Tom Schanzle-Haskins ordered that Bull remain detained related to his federal case in which he is charged with distribution of 50 grams or more of methamphetamine. Russwinkel was ordered detained on Oct. 23, 2020, on federal charges of possession of a firearm by a felon, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute five grams or more of methamphetamine.
The indictment alleges that from Nov. 16 to Dec. 7, 2020, the four conspired to smuggle contraband items to Bull and Russwinkel in the jail so they could use the items to escape. According to the indictment, Poorman, a friend of Russwinkel, and others, purchased items including a hack saw, saw blades, nylon rope, a pry bar and smoke bombs, and Beechler, an associate of Russwinkel and Poorman, traveled to the jail and delivered the items. Bull and Russwinkel then allegedly used a makeshift rope to pull the items up to their cell through a hole they had cut in a jail cell window.
Each defendant, if convicted, for conspiracy to commit escape of prisoners in custody and conspiracy to possess contraband in prison, faces up to five years in prison. Bull and Russwinkel are also charged with two counts each of possession of contraband in prison, which carries a penalty of up to five to 10 years depending on the type of prohibited object. Beechler and Poorman are also charged with two counts each of providing contraband in prison which carries a penalty of up to five to 10 years in prison depending on the type of prohibited object.
Bull and Russwinkel remain in custody at the Sangamon County jail on federal charges. Beechler and Poorman are currently in custody on related state court charges.
The Sangamon County Sheriff’s Office and the U.S. Marshals Service investigated the charges. Assistant U.S. Attorney Tanner K. Jacobs is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Two Drug Traffickers Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Alexander C. Van Hook announced that two men were sentenced today in the Western District of Louisiana on drug trafficking charges. The sentencing hearings took place in Shreveport and Lafayette, Louisiana.
El Paso Man Admits to Transporting Cocaine
SHREVEPORT, La. – Martin Escalera, 28, of El Paso, Texas, was sentenced by United States District Judge Donald E. Walter to 240 months (20 years) in prison followed by 5 years of supervised release for possession with intent to distribute cocaine.
On February 17, 2020, Louisiana State Police stopped the vehicle Escalera was driving for a traffic violation. While the state trooper was checking his information, Escalera presented the trooper with the rental agreement for the vehicle. After reviewing the agreement, the trooper found that Escalera was not listed on the rental as a driver. Escalera gave law enforcement officers consent to search the vehicle and during the search, they found multiple kilogram sized packages of cocaine. Esclera admitted that the packages contained cocaine and that he was transporting them. He plead guilty to the charge on September 24, 2020.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
New Iberia Man to Serve 10 Years in Prison
LAFAYETTE, La. – Alfonzo JohnLouis, 42, of New Iberia, Louisiana, was sentenced by United States District Judge Jay C. Zainey to 120 months (10 years) in prison followed by 5 years of supervised release for conspiracy to distribute and possess with intent to distribute methamphetamine.
On November 3, 2017, while preparing to deliver mail, a postal employee had three packages that were addressed to one particular address in Lafayette, Louisiana, and were shipped from Los Angeles, California. As the postal carrier picked up the box to make the delivery, their thumb slipped into a hole on the side of the box and felt a plastic bag inside which led them to believe there may be some form of illegal drugs in the box. Law enforcement was contacted and a K-9 with the Lafayette Metro Narcotics Unit alerted on each of the three packages. A search warrant was obtained and law enforcement officers found a combined 18 pounds of methamphetamine in the three boxes. JohnLouis has three prior felony drug convictions from 2001 and 2007. He admitted that the packages were meant for him and pleaded guilty to the charge in the federal indictment on September 8, 2020.
The FBI and Lafayette Metro Narcotics Unit conducted the investigation. Assistant U.S. Attorney J. Luke Walker prosecuted the case.
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Three Individuals Indicted for Stealing an ATM with over $20,000Read the Press Release
SAN JUAN, Puerto Rico – On February 3, 2021, a federal grand jury returned a one-count indictment charging Oscar Valderrama-Albaladejo, Juan Tyler López Gerraughty, and Alex Manuel López Felicie with bank larceny in connection with stealing an ATM containing over $20,000, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation of the case.
On January 9, 2021, at approximately 3:40 AM, defendants broke into a Walgreens pharmacy and took an automated teller machine. Defendants placed the ATM on the back of a pickup truck before driving away. Officers of the Puerto Rico Police Bureau saw the suspicious-looking pickup truck and followed it. At one point, the truck reduced speed and fired at the police officer’s car. Police officers returned fire and eventually arrested the suspects.
Assistant U.S. Attorney Juan Carlos Reyes-Ramos of the Violent Crimes and National Security Section is in charge of the prosecution of the case. If convicted, the defendants face up to 10 years in prison.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Thirteen Indicted for Cocaine Trafficking in San Antonio AreaRead the Press Release
Thirteen individuals are charged with trafficking cocaine in the San Antonio area, announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division.
A federal grand jury indictment returned in San Antonio charges the following defendants with one count of conspiracy to possess with intent to distribute cocaine: Mark Anthony Ojeda, 33, of San Antonio; Juan Antonio Estrada aka "Tony," 37, of Ro Grande City
Lus Claudio Estrada aka “Luz,” 42, of La Joya; Jesus Rodriguez aka “Don Chuy,” 62, of Rio Grande City; Frank Anthony Hernandez aka “Pancho,” 36, of San Antonio; Jose Artemio Acevedo Jr. aka “Chapparo,” 49, of Rio Grande City; Joel Villarreal aka “Gordo,” 49, of San Antonio; Rosalinda Flores, 54, of San Antonio; Jonathan Linares Lumbreras aka “Coahuila,” 30, of San Antonio; Javier Armando Casas, 40, of Pharr; Jesus Manuel DeLuna aka “Chuy,” 48, of San Antonio; Erik Jason Pena, 41, of San Antonio; and
Omar Cuellar, 47, of San Antonio.The indictment also charges Ojeda with two counts of possession with intent to distribute cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. Further, the indictment charges Pena with an additional one count of possession with intent to distribute cocaine.
The indictment alleges that the defendants conspired since January 2020 to distribute cocaine. During this investigation, authorities have seized approximately 25 kilograms of cocaine, 35 firearms, two silencers, a grenade, body armor and approximately $265,000 in U.S. Currency along with other assets attributable to this organization.
“Drug dealing and violence go hand in hand. That fact is evident from the number of firearms recovered in this investigation - not to mention the silencers, grenade and body armor. Thanks to the excellent work of the DEA and our other law enforcement partners, our community is safer today,” stated U.S. Attorney Sofer.
“This indictment and arrests are the result of a joint investigation with our local, state and federal partners to neutralize a dangerous criminal organization in Texas,” said DEA Special Agent in Charge Whipple. “Our ongoing effort to reduce violence and drug trafficking in our communities sends a clear message that members of these violent criminal enterprises will be held accountable for their crimes.”
On Tuesday, federal, state and local authorities arrested all of the defendants with the exception of Lumbreras, Ojeda and Flores. Agents arrested Lumbreras on Monday night. Ojeda was already in custody, and Flores has yet to be arrested.
Upon conviction of the drug conspiracy charge, Ojeda, Juan Estrada, Lus Estrada, Rodriguez, Hernandez, Acevedo, Villarreal and Flores face between 10 years and life in federal prison; Lumbreras, Casas, DeLuna and Pena face between five and 40 years in federal prison; and Cuellar faces up to 20 years in federal prison. Ojeda faces between 10 years and life in federal prison and Pena faces between five and 40 years in federal prison on the drug possession charge. Ojeda faces a mandatory five years in federal prison on the gun charge upon conviction.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
The DEA, FBI, Homeland Security Investigations (HSI), Texas Department of Public Safety, San Antonio Police Department, New Braunfels Police Department, University of Texas San Antonio Police Department, Gonzales Police Department, Comal County Sheriff’s Office and the Guadalupe County Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Bruja’s Blunder. The U.S. Marshals Service and the Bexar County Sheriff’s Office assisted with arrests. Assistant U.S. Attorney Brian Nowinski is prosecuting this case on behalf of the government.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
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Theft of 27 firearms in business burglary sends Great Falls man to prison for more than six yearsRead the Press Release
GREAT FALLS–A Great Falls man who admitted breaking into an outfitting business and stealing 27 firearms was sentenced today to six years and three months in prison and to three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Carlyle Ray Wells, 25, pleaded guilty on Oct. 8, 2020 to theft of a firearm from a federal firearms licensee.
Chief U.S. District Judge Brian M. Morris presided. Wells was detained.
In court documents filed in the case, the prosecution said that on Nov. 30, 2019, Great Falls Police officers responded to a burglary alarm at North 40 Outfitters. Officers saw that a gun display case had been smashed and guns appeared to be missing.
Security footage at the business showed a small pickup truck had parked outside, just prior to the alarm. One individual exited the truck, forcefully entered the store, broke the gun case, took firearms and fled.
Officers identified the vehicle as a stolen Ford Ranger and located it near Wells' residence. Security footage showed an individual, whose clothing and physical description aligned with the North 40 burglar, walk toward Wells' residence carrying a large bag. During a search of Wells' residence, law enforcement recovered 16 firearms, 15 of which were stolen from North 40. Home surveillance video obtained through a search warrant showed that Wells entered the residence shortly after the burglary carrying a large bag with a rifle and price tag sticking out.
An audit showed that 27 firearms were stolen in the North 40 burglary. Eleven of the stolen firearms, including and AR-15 style assault rifle, remain at large.
Assistant U.S. Attorney Ethan Plaut prosecuted case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Great Falls Police Department and the Russell Country Drug Task Force.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Tax Preparer Sentenced to Five Years in Prison for Conspiracy to Defraud IRS and Preparing False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Maryland man working as a tax preparer in New Jersey was sentenced today to 60 months in prison for his role in a conspiracy to defraud the IRS by preparing false income tax returns for clients in order to boost business at tax preparation companies that he and others ran, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Kenny Batts, 52, of Elkridge, Maryland, was convicted following a one-week trial before U.S. District Judge Michael A. Shipp in Trenton federal court on one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false federal income tax returns. Judge Shipp imposed the sentence today by videoconference.
According to documents in this case and the evidence at trial:
From at least 2009 to April 2015, Batts was co-owner, along with conspirator Damien Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, New Jersey, where Batts and others prepared tax returns. In order to boost their business, Batts, Askew, and codefendants Tony Russell, Angelo K. Thompson and Rudolph Sanders conspired to falsify their clients’ income tax returns for the purpose of generating refunds in amounts that their clients were not entitled to receive. The fraudulent practices used to inflate tax refunds included fabricating and inflating credits for education and child care; deductions, such as charitable contributions and unreimbursed employee expenses; and Schedule C business losses.
As part of their scheme, Batts, Thompson, Askew, Russell and Sanders also used fraudulent IRS Forms 1098-T to support false education credits that they had claimed on their clients’ false federal income tax returns prepared at Tax Pro’s and Tax Solutions and Associates.
Batts also used the Paid Taxpayer Identification Number (PTIN) – the identification number that paid tax preparers are required to place on tax returns that they have prepared – of his conspirator tax preparers when preparing tax returns to conceal his identity as the actual tax return preparer, due to, among other things, his prior tax fraud conviction.
By inflating the tax refunds through fraudulent means, Batts and his conspirators caused a total tax loss to the United States in excess of $1.6 million.
Thompson, Askew, Sanders and Russell have previously pleaded guilty to their roles. Thompson was sentenced to 27 months in prison and three years of supervised release; Russell was sentenced to 48 months in prison and three years of supervised release. Askew and Sanders are awaiting sentencing.
In addition to the prison term, Judge Shipp sentenced Batts to three years of supervised release and ordered him to pay $1.2 million in restitution to the IRS.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee G. Suh and of the U.S. Attorney’s Office in Newark.
St. Louis Man Sentenced to 151 Months in Prison for Robbing Multiple Banks Throughout SoutheastRead the Press Release
Montgomery, Alabama – On Tuesday, February 2, 2021, Monte Clayton Lynch, a 50-year-old from St. Louis, Missouri, was sentenced to 151 months in prison after pleading guilty to multiple bank robberies in Alabama, Missouri, Tennessee, and Georgia, announced United States Attorney Louis V. Franklin, Sr. Lynch was also ordered to serve three years of supervised release after he completes his prison sentence and will be required to pay $18,474.00 in restitution to all of the banks involved. There is no parole in the federal system.
According to court records and statements made in open court, on August 12, 2019, Lynch walked into the First Community Bank in Prattville, Alabama and handed the teller a note demanding “all” the money. The teller complied, and Lynch left with approximately $5,400.00. Lynch was then seen walking to an adjacent business, getting into a black F-150 and driving off. The Prattville Police Department and the FBI began investigating. After releasing information about the robbery to the public, including the surveillance footage, law enforcement received a tip identifying Lynch as the person depicted in the video and providing his location at a residence in Montgomery. Investigators went to that address and saw a truck that matched the F-150 that was used by Lynch to get away. Law enforcement confirmed that Lynch was staying there temporarily and ran some background checks on him. They found booking photos and social media photos that matched the bank robbery footage.
Further investigation developed Lynch as a suspect in multiple bank robberies across the southeast that had been committed within a few weeks of the Prattville crime. After his arrest for the Prattville robbery, he confessed to that crime as well as a bank robbery in St. Louis, Missouri on July 26, 2019, one in Nashville, Tennessee on August 1, 2019, one in Birmingham, Alabama on August 3, 2019, and two in the Atlanta, Georgia area on August 6, 2019. All of the cases were transferred to the Middle District of Alabama and Lynch entered guilty pleas in each of them.
The Federal Bureau of Investigation (FBI) and the Prattville Police Department investigated this case. Assistant United States Attorney Brandon W. Bates prosecuted the case.
Six-Time Convicted Felon Found with Stolen Firearm Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. – Quion M. Smith, Sr., 38, of Bossier City, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 96 months (8 years) in prison followed by 3 years of supervised release for possession of a firearm by a convicted felon, Acting United States Attorney Alexander C. Van Hook announced.
On January 4, 2020, Louisiana State Police Troopers encountered a vehicle that was stopped at a traffic light near Interstate 220 in Bossier Parish, Louisiana. The State Troopers approached the vehicle and found that Smith was the only occupant of the vehicle and observed a firearm in plain view on the passenger seat. Troopers were able to remove the firearm for officer safety. A records check revealed that the firearm was reported stolen. Further investigation revealed that Smith was a six-time convicted felon and prohibited from possessing a firearm.
Smith has previous felony convictions for simple criminal damage to property (2003); possession of cocaine (2007); attempted possession with intent to distribute marijuana (2011); possession with intent to distribute marijuana (2016); possession with intent to distribute cocaine (2016); and attempted possession of a firearm by a convicted felon (2016).
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the 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. PSN is 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Sex Offender Sentenced to 18 Months in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Stephen Williams Knox, age 63, of Spokane, Washington, was sentenced yesterday after having pleaded guilty on October 29, 2020, to Failure to Register as a Sex Offender, in violation of 18 U.S.C. § 2250(a) and for violating the conditions of his supervised release imposed as a result of a prior conviction for Distribution of Child Pornography, in violation of 18 U.S.C. § 2252A(a)(2)(A), (b)(1).
Senior United States District Judge Wm. Fremming Nielsen sentenced Knox to a 15-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison in relation to Knox’s conviction for Failure to Register as a Sex Offender. Senior Judge Nielsen also sentenced Knox to an additional consecutive term of three months of imprisonment and extended Knox’s term of supervised release from 10 years to 20 years for violations of his supervised release conditions imposed as a result of his prior conviction for Distribution of Child Pornography.
According to information disclosed during court proceedings, on October 27, 2015, Knox was sentenced to 60 months imprisonment following his prior conviction for Distribution of Child Pornography. By virtue of his prior federal conviction, Knox was required to register as a sex offender under the Sex Offender Registration and Notification Act.
Knox commenced his 10 year term of supervised release on July 19, 2019. On January 23, 2020, Knox left the Eastern District of Washington and traveled ultimately to Utah. Knox did not update his sex offender registration in Washington State as required when he left the jurisdiction. Knox was ultimately located in Salt Lake City, Utah on February 21, 2020. Upon his arrest in Salt Lake City, Knox admitted that he left the Eastern District of Washington on January 23, 2020 and went to Idaho, then Montana, and ultimately Utah. Knox further admitted that he did not register as a sex offender in any other jurisdiction after departing Washington.
United States Attorney Hyslop said: “Sex offender registration is an essential tool for keeping our communities safe. The law requires the registration; it cannot be ignored. The sentence imposed by the court promotes community safety, respect for the law and accountability for violating the law. As the United States Attorney, I certainly commend the law enforcement officers with the United States Marshals Service who investigated this case. ”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the United States Marshals Service. This case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.