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29 January 2021
Former Federal Grand Juror Sentenced after Pleading Guilty to Obstruction of JusticeRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Alicia Renee Coleman, 51, of Rock Hill, was sentenced in federal court after pleading guilty last fall to a felony charge of obstruction of justice.
“The integrity of our grand jury process is vital to our mission of protecting the people of South Carolina and upholding the rule of law,” said U.S. Attorney McCoy. “As this case makes clear, if you violate the secrecy of grand jury proceedings, you will be prosecuted.”
Evidence presented to the court showed that in early June 2018, Coleman communicated secret federal grand jury information concerning an indictment and upcoming arrests in case involving a drug trafficking organization in the Rock Hill and Charlotte regions, United States v. Hemphill, et al.
Coleman learned the information in her capacity while serving as a federal grand juror and communicated the information to a family member in violation of a court order. Law enforcement quickly learned of the leak, which had made its way to targets of the investigation, and as a result changed the date of the upcoming takedown in the case. Investigators were able to track down the source of the leak and thereafter, Coleman was relieved of her duties as a federal grand juror and admitted to sharing the information with a family member.
United States District Court Judge Mary Geiger Lewis sentenced Coleman, who had no prior record, to a 3-year term of probation. The charge against Coleman was prosecuted by Assistant United States Attorney Stacey D. Haynes, after an investigation by the Federal Bureau of Investigation (FBI).
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Former Clarke County Sheriff's Office Deputy Sentenced for Assault of ArresteeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Judge Terry F. Moorer sentenced defendant Mitchell Finney, 52, a former deputy of the Clarke County Sheriff’s Office, to three years of probation for deprivation of rights under color of law. Finney was convicted of that offense on October 7, 2020, following a jury trial.
During trial, the jury heard evidence that on May 11, 2019, Finney responded to a call for service at the Grove Hill Hospital. Once there, he made contact with a male patient at the hospital’s geriatric psychiatric ward. The patient had been disruptive in the hospital, and hospital employees had called for police assistance. Other law enforcement officers had arrived on scene first, subdued the man, and taken him into custody. Finney then arrived on scene and approached the man to ask him to take a seat in a patrol car. The man did not comply and spat in Finney’s direction. Finney then punched the man in the face. Finney then retreated to his patrol car, obtained a can of pepper spray, and sprayed the man in the face for an extended period of time. The man was handcuffed throughout the interaction with Finney.
The United States recommended a custodial sentence of incarceration. The Court imposed a three-year probationary sentence. Finney was not ordered to pay a fine, but the judge ordered him to pay $100 in special assessments.
The Federal Bureau of Investigation and the Alabama State Bureau of Investigation investigated this case. Assistant United States Attorney Kacey Chappelear prosecuted the case.
Five New Haven Residents Charged with Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Chief Otoniel Reyes today announced that, on January 19, 2021, a federal grand jury in New Haven returned two indictments charging five New Haven residents with federal narcotics offenses related to the distribution of crack cocaine. The five defendants were arrested on January 26.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department. The investigation included court-authorized wiretaps and multiple controlled purchases of crack.
JERRY ROLLINS, a.k.a. “Prank,” 36; BENITA FLEMMING, 33, and ORLANDO MOORE, 49, are charged in a 14-count indictment alleging that they conspired to distribute crack from approximately July 2020 to January 2021. DEVARO TAYLOR, 30, and TASHAUN FAIR, 27, are charged in an eight-count indictment alleging that they conspired to distribute crack between approximately September and December 2020.
Each defendant is charged with conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”), a charge that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Rollins and Taylor are also charged with multiple counts of possession with intent to distribute, and distribution of, cocaine base, an offense that carries a maximum term of imprisonment of 20 years on each count. In addition, the five defendants are charged with one or more counts of use of a telephone to facilitate a drug trafficking felony, an offense that carries a maximum term of imprisonment of four years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In association with the arrests of the defendants, investigators seized approximately 300 grams of crack and packaging, 50 grams of heroin and packaging, 100 grams of cocaine and packaging, and more than $17,000 in cash.
The FBI’s New Haven Safe Streets/Gang Task Force includes members from the New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police and Connecticut Department of Correction. The U.S. Drug Enforcement Administration and West Haven Police Department have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile and Marc H. Silverman 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.
Felon Indicted on Gun ChargeRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that EDWARD BELL, age 24 of New Orleans, Louisiana, was charged in a one count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922 and 924.
According to court documents, BELL was previously convicted of numerous drug and firearm offenses. This present charge alleges he was in possession of a P80 9mm semi-automatic pistol in April of 2020. If convicted of the firearms offense, BELL faces a maximum term of ten years imprisonment, a fine of $250,000.00, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The case was investigated by the Kenner Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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Federal Prosecutors Honored by DEA for Exemplary Work in Drug-Related CasesRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – January 29, 2020
SAN DIEGO – Several federal prosecutors have received awards from the San Diego Drug Enforcement Administration for exemplary service and dedication to the mission of the DEA in San Diego and Imperial counties.
The recipients – Brandon Kimura, Larry Casper, Kyle Martin, Victor White and Dylan Aste – were honored for working tirelessly, hand-in-hand with DEA agents, to disrupt the movement of large quantities of narcotics; to dismantle transnational drug trafficking organizations around the world; to target maritime-based narcotics trafficking operations; and to hold dealers responsible for overdose deaths and doctors and pharmacies accountable for overprescribing opioids.
Collectively their efforts resulted in numerous maritime seizures of huge shipments of illicit drugs; seizures of bulk currency shipments totaling millions of dollars; the arrests and indictments of members of the command and control structures of drug trafficking organizations; and the collection of significant civil settlement payments.
“It was an honor and a privilege to recognize these Assistant U.S. Attorneys along with U.S. Attorney Robert Brewer on behalf of the DEA San Diego Field Division for their hard work and dedication to the mission of the DEA,” said Special Agent in Charge John W. Callery. “Their relationships directly with the DEA have led to proven results through countless successful prosecutions and the dismantlement of drug trafficking organizations operating in Imperial and San Diego counties and beyond. These AUSAs’ steadfast and unwavering partnership directly with DEA agents and task force officers of the SDFD is to be commended and admired.”
“During a time when drug overdoses have spiked to unprecedented levels during the pandemic, the accomplishments of these outstanding prosecutors and their DEA partners are even more crucial and impressive,” said U.S. Attorney Robert Brewer. “I am so proud of their dedication and hard work protecting the people of San Diego and Imperial counties from the violence and destruction associated with illegal drugs. And I am so grateful to John Callery and the DEA for this great honor, and for our strong and successful relationship.”
From the DEA’s commendations:
Assistant U.S. Attorney Brandon Kimura has demonstrated his commitment to the DEA Imperial County District Office through his time, his service, and his mentorship. Throughout 2020, AUSA Kimura assisted the DEA and U.S. Postal Inspectors in the prosecution of multiple investigations targeting a network of couriers, shippers, and receivers of drug laden packages originating in Imperial County and destined for cities across the United States; resulting in multiple arrests and enforcement actions throughout the country. AUSA Kimura is a reliable and valuable resource for the DEA in Imperial County and provides effective guidance and constructive feedback for prosecutorial avenues which investigators can build upon. His close partnership with his case agents results in the development of overwhelming evidence to ensure swift and meaningful prosecutions.
Assistant U.S. Attorney Victor White has demonstrated his commitment to the DEA Imperial County District Office through his dedication, determination and his mentorship. White assisted with numerous DEA investigations in Imperial County involving the prosecution of domestic and foreign targets, including Mexico-based drug trafficking organization leaders who used international drug laden vessels and aircrafts, and United States-based couriers, distributors, transporters, and receivers of narcotic shipments travelling through Imperial County and destined for cities across the United States. His efforts resulted in multiple arrests and enforcement actions throughout the country.
Assistant U.S. Attorney Kyle Martin has demonstrated his commitment to the DEA Imperial County District Office through his consistent and direct communication with DEA special agents and task force officers in pursuing transnational drug trafficking organizations. Of note, AUSA Martin took part in cases targeting organizations operating in Guatemala, El Salvador, Mexico City, the United States, and Europe. These organizations were responsible for the shipment of large quantities of narcotics on land and in boats and shipping containers. AUSA Martin’s efforts resulted in numerous maritime seizures of multi-hundred kilogram shipments of cocaine, seizures of bulk currency shipments totaling over $2.8 million, and the arrest and indictment of members of the command and control structures of the drug trafficking organizations. AUSA Martin’s commitment and steadfast dedication to the DEA in developing comprehensive investigations targeting the highest echelons of transnational drug trafficking networks has led to proven results in continuing DEA’s mission and is to be admired and commended.
Assistant U.S. Attorney Larry Casper exemplifies dedication, determination, and commitment to the mission of the DEA Imperial County District Office. AUSA Casper routinely integrates himself with the DEA, providing outstanding on the spot legal and prosecutorial guidance and insight to special agents and task force officers resulting in the progression of their investigations and the disruption and dismantlement of drug trafficking organizations. AUSA Casper’s unparalleled commitment as the U.S. Attorney’s Office Opioid Coordinator directly corresponded to the charging of the DEA’s first fentanyl overdose case in Imperial County, in which the Government alleges that the distributed fentanyl resulted in the death of a local high school student in March of 2019. Furthermore, AUSA Casper is the lead prosecutor on an Organized Crime Drug Enforcement Task Force Operation that has disrupted a Mexicali, Baja California, Mexico drug trafficking organization that allegedly exploits juveniles as body couriers and has already resulted in more than twenty successful prosecutions. Casper’s dedication is expected to further dismantlement of the drug trafficking organization and prosecution of its leadership.
Assistant U.S. Attorney Dylan M. Aste has demonstrated his dedication and commitment to the mission of the Drug Enforcement Administration by always being available and responsive and by working hard to hold doctors and pharmacies accountable for their roles in the opioid crisis. AUSA Aste has a demanding position prosecuting civil diversion investigations and responds without complaint and provides whatever assistance or guidance necessary for the investigators and agents to ensure a successful prosecution. His most recent cases have resulted in large civil settlements with doctors and a pharmacy. His deliberate and thorough approach was the driving force in the success of these investigations.
Federal Court Restrains Tampa Pharmacy and Two Individuals from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
A federal court in Florida issued a temporary restraining order enjoining a Tampa pharmacy and two of its employees from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint unsealed in the Middle District of Florida, the United States alleges that WeCare Pharmacy, its pharmacist owner Qingping Zhang, and pharmacy technician Li Yang, and another related corporate entity, L&Y Holdings LLC, repeatedly dispensed opioids in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Mary Scriven granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Pharmacists have an important role in ensuring that prescriptions for controlled substances are legitimate,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its partners to enforce the law where evidence shows pharmacists abdicated their responsibilities when dispensing these powerful drugs.”
“Medical professionals, including pharmacists, must utilize the best methods of efficacy and accountability when dispensing and distributing dangerous medications,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Failure to comply with our federal laws and standards places the public at great risk and cannot be tolerated. We intend to work with our law enforcement partners to hold responsible parties accountable for their actions and keep our citizens safe.”
“Pharmacies and their pharmacists have the responsibility to flag suspicious prescriptions written by doctors for highly sought after opioid medications, in order to prevent them from being dispensed,” said Special Agent in Charge Keith Weis of the Drug Enforcement Agency’s Miami Field Division. “When they fail to carry out this important responsibility, the dispensing of opioid medication becomes a real threat to the health of legitimate patients, and also gives pill seekers a steady supply to either fuel their addiction or illegally distribute them in our communities.”
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone and hydromorphone, almost always in the highest-strength formulations generally available. The complaint alleges that the defendants repeatedly filled prescriptions written by a particular doctor without examining the red flags those prescriptions presented. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorney Sean P. Keefe, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA.
Federal Court Restrains Tampa Pharmacy and Two Individuals from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
Tampa, FL – A federal court in Florida issued a temporary restraining order enjoining a Tampa pharmacy and two of its employees from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint unsealed in the Middle District of Florida, the United States alleges that WeCare Pharmacy, its pharmacist owner Qingping Zhang, and pharmacy technician Li Yang, and another related corporate entity, L&Y Holdings LLC, repeatedly dispensed opioids in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Mary Scriven granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Pharmacists have an important role in ensuring that prescriptions for controlled substances are legitimate,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its partners to enforce the law where evidence shows pharmacists abdicated their responsibilities when dispensing these powerful drugs.”
“Medical professionals, including pharmacists, must utilize the best methods of efficacy and accountability when dispensing and distributing dangerous medications,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Failure to comply with our federal laws and standards places the public at great risk and cannot be tolerated. We intend to work with our law enforcement partners to hold responsible parties accountable for their actions and keep our citizens safe.”
“Pharmacies and their pharmacists have the responsibility to flag suspicious prescriptions written by doctors for highly sought after opioid medications, in order to prevent them from being dispensed,” said DEA’s Miami Field Division Special Agent in Charge Keith Weis. “When they fail to carry out this important responsibility, the dispensing of opioid medication becomes a real threat to the health of legitimate patients, and also gives pill seekers a steady supply to either fuel their addiction or illegally distribute them in our communities.”
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone and hydromorphone, almost always in the highest-strength formulations generally available. The complaint alleges that the defendants repeatedly filled prescriptions written by a particular doctor without examining the red flags those prescriptions presented. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorney Sean P. Keefe, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA.
Federal Charges Announced for Fourth Person Arrested as Part of Law Enforcement Action in Jefferson County on January 27, 2021Read the Press Release
DENVER – United States Attorney Jason Dunn announced that Tanya Bui, age 23, of Littleton has been charged with possession of marijuana with intent to distribute as well as possession of a firearm in furtherance of a drug trafficking offense. Ms. Bui is scheduled to have her initial appearance in the United States District Court for the District of Colorado on Friday afternoon.
According to facts contained in the affidavit in support of the criminal complaint, evidence supporting the drug and firearm charges was obtained as part of a murder and arson investigation, which culminated in a search of a Littleton property. During Wednesday’s search, investigators allegedly located a large quantity of marijuana and a firearm in a room identified as belonging to Ms. Bui. As recounted in the affidavit, investigators previously obtained social media posts and messages which indicated drug trafficking activity and were attributed to Ms. Bui.
The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty.
This matter is being investigated by the ATF and the Denver Police Department’s Homicide Unit. The case is being prosecuted by Assistant United States Attorney Celeste Rangel.
CASE NUMBER: 21-mj-00014
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Federal Air Marshal Sentenced, Ordered to Payback Quarter Million Dollars in Fraudulent Workers' Comp PaymentsRead the Press Release
PROVIDENCE – A now former Federal Air Marshal who fraudulently collected more than $240,000 in workers’ compensation benefits he collected based on his employment with the government after concealing from the United States Department of Labor (DOL), Office of Workers’ Compensation Programs (OWCP), his self-employment and role in a Middletown-based martial arts business, has been sentenced to two years probation and ordered to pay back the ill-gotten disability benefits.
Joseph Patrick Watterson, 52, of Newport, a martial arts Black Belt, previously admitted that he initially concealed on OWCP forms the fact that he owned and was engaged in physical activities at his martial arts business, Two Swords Brazilian Jiu Jitsu. Later, after admitting that he was self-employed, he concealed on OWCP forms the true scope of his employment activities at his martial arts studio, not wanting his OWCP benefits to be reduced or terminated.
Watterson admitted that he concealed the fact that he was instructing and engaging in Jiu Jitsu. Rather than disclose his physical activities at his martial arts studio, Watterson falsely represented that his role was merely administrative. In a letter to DOL, Watterson described his duties as involving "cleaning and maintaining school, share the bookkeeping.”
According to the government’s evidence, from May 31, 2016, to March 3, 2019, Watterson collected disability benefits totaling approximately $241,118.52 that he was not entitled to collect.
Watterson pleaded guilty on November 10, 2020, to false statements to obtain federal workers’ compensation benefits. He was sentenced on Thursday by U.S. District Court Judge William E. Smith to two years probation and ordered to pay restitution in the amount of $241,118.52, announced United States Attorney Aaron L. Weisman; Michael A. Ondocin, Executive Assistant to the Administrator of the Transportation Security Administration (Federal Air Marshal Service); and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the Transportation Security Administration and the U.S. Postal Inspection Service.
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El Departamento de Justicia reconoce el 10mo Mes de Prevención de Tráfico HumanoRead the Press Release
El Departamento de Justicia conmemora hoy el 10mo Mes Nacional de Prevención de Esclavitud y Tráfico Humano y declara su compromiso continuo para combatir el trafico humano en todas sus formas. La lucha contra el tráfico humano continúa siendo una de las principales prioridades del departamento y el departamento permanecerá incesante en sus esfuerzos para llevar a los traficantes ante la justicia y buscar justicia para los sobrevivientes.
El tráfico humano es un crimen que hace presa a algunos de los miembros más vulnerables de nuestra sociedad. Es un crimen de explotación que priva a las víctimas de sus derechos, libertad y dignidad. Los traficantes explotan a los vulnerables por medio de labor forzada o sexo comercial que involucra a niños o adultos sujetos a fuerza, fraude o coerción.
“El Departamento de Justicia es inquebrantable en su resolución para erradicar el tráfico humano y perseguir justicia para quienes hayan sido afectados por estos atroces crímenes”, dijo el Fiscal General Interino Monty Wilkinson.
El Departamento de Justicia está comprometido con continuar su enfoque centrado en la víctima e informado en el trauma para detectar crímenes de tráfico humano escondido, haciendo responsables a los perpetradores y restaurando las vidas de los sobrevivientes, mientras fortalece las alianzas estratégicas contra el tráfico. Durante el año fiscal 2020, el departamento realizó 210 casos de tráfico humano federales contra 337 acusados y aseguró 309 convicciones.
En 2021 el departamento ya aseguró una sentencia de cadena perpetua a un individuo en Florida que dirigió, principalmente mediante comunicaciones y transacciones en línea, el tráfico sexual de niños pequeños pobres en Filipinas. Como resultado, las autoridades filipinas pudieron rescatar a seis niños víctimas del co conspirador del acusado en Filipinas. También en 2021, el departamento sentenció exitosamente a un traficante laboral que usaba deudas, amenazas, abusos y asaltos para obligar el trabajo de la víctima durante 10 horas al día, siete días a la semana, en el salón de uñas en Carolina del Norte del acusado. El departamento también aseguró una cadena perpetua y más de $900,000 en restitución en contra de un traficante sexual de Texas que obligó a mujeres y niñas a participar en sexo comercial por medio de violencia, aislamiento, intimidación y amenazas.
El amplio enfoque del departamento para combatir el tráfico humano se extiende más allá de los procesamientos llevados ante las Oficinas del Fiscal de EE.UU., la Unidad de Procesamiento de Tráfico Humano y la Sección de Explotación de Niños y de Obscenidad, para incluir iniciativas de ejecución entre agencias y asociaciones estratégicas con aliados anti tráfico. Estos esfuerzos utilizan conocimientos cada vez más especializados sobre lavado de dinero, crímenes financieros y delincuencia transnacional organizada para mejorar las investigaciones y acusaciones.
La Unidad de Crímenes contra Niños y Tráfico Humano del FBI desarrolla innovadoras estrategias de forma continua para mejorar la detección e investigación de crímenes de tráfico humano escondidos. La Oficina para Víctimas del Crimen del Departamento de Justicia como la fuente de financiamiento federal más grande de servicios para víctimas de tráfico, que ofreció más de 400 subvenciones sumando un total de $270 millones, que le permitió a los beneficiados servir a 9,854 clientes. Además, la Oficina para Víctimas del Crimen lanzó su Centro de Fortalecimiento para la Capacidad de Tráfico Humano, para ayudar a las organizaciones locales y tribales para comenzar, sostener y ampliar sus esfuerzos en contra del tráfico. El departamento continúa elevando las voces de los valientes sobrevivientes, asegurando que sus experiencias y conocimientos para informar a los esfuerzos en contra del tráfico.
Durante este 10mo Mes Nacional de Prevención de Esclavitud y Tráfico Humano, el Departamento de Justicia reafirma su compromiso para combatir el atroz crimen del tráfico humano, haciendo responsables a los perpetradores y buscando justicia para los sobrevivientes.
Eight charged with trafficking 10 kilos of cocaine and other drugs in Lorain, Elyria and ClevelandRead the Press Release
Federal law enforcement officials announced today that eight individuals were charged for their roles in a drug trafficking conspiracy that distributed at least 10 kilograms of cocaine and other drugs in the Lorain, Elyria and Cleveland areas. The charges were unsealed in two separate indictments. Seven defendants have been arrested and one, Mohammad HAMID, remains a fugitive.
“The cooperation between local and federal law enforcement has once again proven effective,” said Acting U.S. Attorney Bridget M. Brennan. “Anyone alleged to be selling cocaine, heroin or any other illegal narcotics in Cleveland, Elyria or Lorain should expect a strong law enforcement response.”
“Yesterday's enforcement operation was the culmination of an investigation that targeted narcotics-related crimes and drug trafficking in Lorain county,” said DEA Special Agent in Charge Keith Martin. “The arrests of these individuals puts drug dealers on notice that we will use whatever resources necessary to remove them, and the poisons they peddle, from our communities.”
The first indictment charges Fernando TALAVERA, age 42, of Parma Heights, and Harlan PAGE, age 29, of Westlake, with conspiracy to distribute and possession with the intent to distribute cocaine. In addition, defendant TALAVERA is charged as a felon in possession of a firearm.
The second indictment charges Prince BROWN, age 35, currently incarcerated; Robert STARR, age 27, of Lorain; Mohammad HAMID, age 33, of Avon Lake; Amos JACKSON, age 37, of Elyria; Darian LOPEZ, age 27, of Lorain and Devon GRANTHAM, age 26, of Elyria with conspiracy to distribute and possession with the intent to distribute controlled substances and use of a communication facility in furtherance of a drug trafficking crime. In addition, Defendant STARR is charged with two counts of distribution of cocaine and defendant BROWN is charged with one count of possession with intent to distribute heroin and as a felon in possession of a firearm and ammunition.
According to the charges, from January of 2019 to September of 2020, defendants TALAVERA and PAGE worked together to traffic at least five kilograms of cocaine in the Elyria, Lorain and Cleveland areas. Separately, defendants BROWN and HAMID conspired together to supply at least five kilograms of cocaine and other amounts of heroin to other narcotics traffickers in their network.
As part of the conspiracy and to reduce the risk of being detected by law enforcement, the defendants used cell phones obtained in the names of fictitious individuals and code words when discussing drug trafficking activity.
On the morning of January 28, law enforcement agents with the Northern Ohio Violent Fugitive Task Force (NOVFTF) assisted the DEA with apprehending the defendants and succeeded in placing seven of the eight in federal custody.
These arrests and indictments are related to an earlier investigation into drug trafficking in the Lorain county area. In July of 2020, 10 individuals were arrested in a conspiracy to distribute crack cocaine, cocaine and oxycodone throughout Elyria.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The matter was investigated by the Drug Enforcement Agency, Lorain county High Intensity Drug Trafficking Area (HIDTA), City of Lorain Police Department and City of Elyria Police Department. This case is being prosecuted by Assistant U.S. Attorney Vasile C. Katsaros.
Drug Traffickers Sentenced to a Total of 31+ Years in Federal Prison for their CrimesRead the Press Release
SHREVEPORT, La. – Two men were sentenced in United States District Court for trafficking methamphetamine, Acting United States Attorney Alexander C. Van Hook announced.
Gilbert Martinez, 30, of Brawley, California, was sentenced by United States District Judge S. Maurice Hicks, Jr. to 210 months (17 years, 6 months) in prison followed by 5 years of supervised release for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. On March 12, 2019, Martinez was captured on surveillance video at a post office in California mailing two packages to Shreveport. Pursuant to a federal search warrant, the U.S. Postal Inspection Service seized and searched the packages and found approximately 5 pounds of methamphetamine and several pills inside. Again, on April 26, 2019, Martinez and his co-conspirator traveled to three post offices in Southern California to mail packages containing methamphetamine. They were captured on surveillance video at the post offices mailing packages to Frierson, Keithville, and Shreveport. On April 29, 2019, agents were notified of the arrival of the packages at those locations in Louisiana and seized and searched the packages and discovered approximately 5 pounds of methamphetamine in each package. Martinez pleaded guilty to the charge on August 11, 2020.
Anthony Antwon Easter, 27, of Vivian, Louisiana, was sentenced to 168 months (14 years) in prison followed by 5 years of supervised release for attempted possession with intent to distribute methamphetamine. On February 12, 2020, a U.S. Postal Inspector intercepted a suspicious package and a Caddo Parish K-9 Deputy detected that the package contained narcotics. Law enforcement agents executed a federal search warrant and found approximately 5 pounds of methamphetamine inside the package. Agents placed narcotics back in the box and delivered to the address indicated on the box in Vivian, Louisiana. When the agent arrived at the address, Easter pulled in the driveway and told the agent the package was for him. Easter signed for the package using the same false name that was on the package. He was then arrested and the box containing narcotics was recovered and seized. Easter pleaded guilty to the charge on September 1, 2020.
The DEA, U.S. Postal Inspection Service, and Caddo Parish Sheriff’s Office conducted the investigations. Assistant U.S. Attorneys J. Aaron Crawford and Robert F. Moody prosecuted the cases.
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Dominican National Indicted for Fentanyl PossessionRead the Press Release
BOSTON – A Dominican national previously living in Lawrence was indicted yesterday by a federal grand jury in connection with fentanyl possession.
Anyelo Aybar-Franco, 25, was indicted on one count of possession with intent to distribute more than 40 grams of fentanyl. Aybar-Franco was previously charged by criminal complaint.
According to the charging documents, on Oct. 20, 2020 in Lawrence, Aybar-Franco possessed with intent to distribute over 65 grams of fentanyl.
Aybar-Franco faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of up to $5 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, Boston Field Division made the announcement today. Valuable assistance was provided by the Essex County Sheriff’s Department, Homeland Security Investigations in Boston and the Lawrence Police Department. Assistant U.S. Attorney Charles Dell’Anno of Lelling’s Major Crimes 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.
DOJ Announces Arrests in Middle Georgia Drug Conspiracy and Dog Fighting Ring InvestigationRead the Press Release
MACON, Ga. – An indictment was unsealed today charging 11 individuals in a 136-count federal indictment including alleged violations of drug conspiracy, drug distribution, drug possession with the intent to distribute, drug possession, as well as violations of the dog fighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit the same, announced Acting U.S. Attorney Peter D. Leary of the Middle District of Georgia and Acting Assistant Attorney General Jean Williams for the U.S. Department of Justice Environment and Natural Resources Division.
The defendants include: Jarvis Lockett, 40, of Warner Robins, Georgia; Derrick Owens, 37, of Woodland, Georgia; Christopher Raines, 50, of Talbotton, Georgia; Armard Davis, 41, of Fort Valley, Georgia; Jason Carter, 38, of Phoenix City, Alabama; Shaquille Bentley, 26, of Roberta, Georgia; Bryanna Holmes, 24, of Fort Valley, Georgia; Vernon Vegas, 49, of Suwanee, Georgia; Lekey Davis, 45, of Talbotton, Georgia, Kathy Ann Whitfield, 61, of Columbus, Georgia; and Rodrick Walton, 40, of Shiloh, Georgia.
An indictment is a set of allegations based upon a finding of probable cause by a grand jury. A defendant is presumed innocent until convicted.
“Dog fighting is brutal and illegal; it is particularly troubling when combined with drug trafficking,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “We will investigate and prosecute individuals who engage in these criminal acts and seek justice for all of their victims. I thank our law enforcement partners for their hard work on this significant investigation.”
“As this case demonstrates, we continue to aggressively prosecute dog fighters and those who work together to support and further their inhumane criminal activities,” said Jean Williams, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “We thank our federal and local law enforcement partners who made this operation possible.”
The indictment alleges that defendants Lockett, Owens, Raines, A. Davis, Carter, Bentley, Holmes, Vegas, Lekey Davis and Whitfield were involved in a conspiracy between May 2019 and February 2020 to possess with intent to distribute five kilograms or more of cocaine and 28 grams or more of cocaine base. Lockett is charged in separate counts with distribution of cocaine base and cocaine, and possession with the intent to distribute cocaine base and cocaine. Armard Davis and Holmes are charged in separate counts with possession with intent to distribute cocaine base and cocaine. Walton is charged in a separate count with possession of cocaine.
The indictment further alleges that defendants Lockett, Owens, Raines, Armard Davis, and Walton were involved in a conspiracy to sponsor and exhibit dogs in a dog fight, and possess, train, transport, deliver, and receive dogs for the purpose of having the dogs participate in a dog fight. The indictment outlines dog fights the defendants are alleged to have attended between May 2019 and February 2020, as well as discussions between the co-conspirators about training and matching up their dogs for fighting. In addition, the defendants are separately charged with possession of dogs for purposes of having the dogs participate in dog fights as follows: Lockett – 15 counts; Raines – 40 counts; Owens – 44 counts, Walton – 18 counts; Armard Davis – 9 counts.
This matter is being investigated by the Drug Enforcement Administration and the U.S. Department of Agriculture, Office of the Inspector General, with assistance from the United States Marshals Service, Southeast Regional Fugitive Task Force and local law enforcement agencies. and local law enforcement agencies. Assistant United States Attorney William Keyes and Department of Justice Senior Trial Attorney Jennifer Blackwell are prosecuting the case. An indictment is a set of allegations based upon a finding of probable cause by a grand jury. A defendant is presumed innocent until convicted. The investigation is ongoing.
Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Convicted Predator Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James Tracy, 50, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to receipt of child pornography by a person having a prior conviction for aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that between June 13 and August 18, 2018, the defendant received three images and 10 videos of a 15-year-old minor victim. Tracy solicited the minor victim, a relative, to produce some of the images via Facebook. In December 2018, the defendant told Homeland Security Investigation Special Agents that several years prior he had engaged in oral sexual contact with the 15-year-old-minor victim on at least three occasions.
Investigators conducted a forensic review of Tracy’s electronics and discovered 51 images of child pornography on Tracy’s LG cellular telephone. Some of the images included depictions of violence.
In February 1995, the defendant was convicted of Sexual Abuse in the First Degree, and in March 2001, he was convicted of Attempted Sexual Abuse in the First Degree. Both victims were under the age of 18.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major James Hall; and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
Sentencing will be scheduled at a later date.
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Convicted Felon Indicted for Illegal Possession of FirearmRead the Press Release
BOSTON – A Fitchburg man was indicted yesterday by a federal grand jury in Worcester on charges of being a felon in possession of a 10 mm Glock pistol.
Joel Polanco, 33, was indicted on one count of being a felon in possession of a firearm. Polanco was previously charged by criminal complaint in December 2020.
According to the charging documents, on Oct. 24, 2020, Polanco was arrested after police responded to the area of Snow and Cherry Streets in Fitchburg following a report of a person suffering a gunshot wound to the leg. A witness reported seeing someone fitting Polanco’s description shoot the victim. In addition, surveillance videos showed a person fitting Polanco’s description carrying what appeared to be the black fanny-pack and holding an item in his hand that appeared to be a gun. Polanco allegedly shot the victim using a 10 mm Glock pistol which was later recovered from a black fanny-pack in the area of Snow Street.
Polanco is prohibited from possessing a firearm after being convicted of being a felon in possession of ammunition and distribution of cocaine base in March 2011.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Fitchburg Police Chief Ernst Martineau made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting 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.
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.
Cocoa Man Sentenced to over 19 Years for Possessing A Firearm After Having Been Convicted of A FelonyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Raymond Lee Kelly (53, Cocoa) to 19 years and 7 months in federal prison for possessing a firearm as a convicted felon. Because of his extensive criminal record, which includes drug trafficking, resisting arrest with violence, battery on a law enforcement officer, and possession of a firearm in furtherance of a drug trafficking offense, Kelly qualified as an Armed Career Criminal and faced a 15-year minimum mandatory sentence. Kelly was also on supervised release from a federal prison sentence when he committed the recent offense. A federal jury had found Kelly guilty on September 1, 2020.
According to testimony and evidence presented at trial, Kelly, a convicted felon, fled from a traffic stop in Cocoa Beach—first in a car that he crashed shortly after fleeing—then on foot toward the beach. As he fled, he left behind cannabis, a digital scale, a Ruger semi-automatic handgun, and 16 rounds of ammunition. As a previously convicted felon, Kelly is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Cocoa Beach Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Chinese National Charged with Criminal Conspiracy to Export US Power Amplifiers to ChinaRead the Press Release
An indictment was unsealed this week charging Cheng Bo, also known as Joe Cheng, a 45-year-old national of the People’s Republic of China, with participating in a criminal conspiracy from 2012-2015 to violate U.S. export laws by shipping U.S. power amplifiers to China.
Cheng’s former employer, Avnet Asia Pte. Ltd., a Singapore company and global distributor of electronic components and related software, agreed to pay a financial penalty to the United States of $1,508,000 to settle criminal liability for the conduct of its former employees, including Cheng. As part of a non-prosecution agreement, Avnet Asia admitted responsibility for Cheng’s unlawful conspiracy to ship export-controlled U.S. goods with potential military applications to China, and also for the criminal conduct of another former employee who, from 2007-2009, illegally caused U.S. goods to be shipped to China and Iran without a license. This conduct violated the International Emergency Economic Powers Act.
The U.S. Department of Commerce (DOC) is also announcing today that Avnet Asia has agreed to pay an additional $1,721,000 as part of a $3,229,000 administrative penalty to resolve violations of the Export Administration Regulations.
“Avnet’s employees repeatedly falsified documentation in order to send export-controlled goods with potential military applications to China,” said Assistant Attorney General John C. Demers of the National Security Division. “What China cannot develop itself, it acquires illegally through others. This is yet another example of a proxy acting to further China’s malign interests.”
“We will not abide individuals or business organizations that would seek to harm our national security by illegally providing coveted U.S. goods with potential military applications to Iran or China,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia. “We will pursue wrongdoers no matter where they are located in the world.”
"The People's Republic of China is relentless in its pursuit of U.S. technology, much of which can be used for military purposes,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI is just as relentless in identifying and stopping those who violate export controls while doing business with China. Let us be clear, this is not business as usual. It is illegal and individuals and companies will pay a price for such violations."
“The indictment unsealed today serves as a warning to those who violate export control laws designed to protect our national and economic security,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Field Office. “The settlement with Avnet Asia announced today represents years of hard work on one of the FBI’s highest priorities – stopping the illegal export of U.S. technology to China. Regardless of their location, global corporations have a responsibility to follow U.S. law when selling American technology. Criminal and civil penalties await companies and individuals who fail to adhere to laws protecting sensitive U.S. technologies.”
“The Office of Export Enforcement remains committed to enforcing our nation’s export control laws by investigating domestic and overseas companies who intentionally divert sensitive U.S.-origin dual-use commodities to prohibited end users and nations without the required licenses or license exceptions,” said Acting Special Agent in Charge Aaron Tambrini of DOC Office of Export Enforcement’s (DOC-OEE) Chicago Field Office.
“The export of sensitive technology items to China or anywhere else in the world is tightly regulated for good reason,” said Special Agent in Charge David A. Prince of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles. “One of HSI’s top enforcement priorities is preventing U.S. military and dual-use products and sensitive technology from falling into the hands of those who might seek to harm America or its interests. We will continue to work closely with our law enforcement partners to aggressively target and investigate those who jeopardize our nation’s security – or the welfare of those devoted to protecting it.”
According to the indictment unsealed today, Cheng was a sales account manager with Avnet Asia, and he operated as a sales representative to a Hong Kong-based customer with whom Cheng had an ownership interest. Cheng submitted paperwork on behalf of the customer to purchase export-controlled U.S. goods, including power amplifiers. Cheng caused false statements to be made to the U.S. manufacturer of the power amplifiers that his customer would use the power amplifiers in Hong Kong when, in fact, Cheng knew that the goods would be illegally shipped from Hong Kong to China.
As part of the non-prosecution agreement, Avnet Asia admitted that from 2012-2015, Cheng caused at least 18 separate shipments of export-controlled goods to be sent from the United States to Hong Kong, knowing that the goods were intended to be subsequently shipped to China, and that the value of these illegal exports was at least $814,000. Avnet Asia also admitted that another sales account manager, this one based in Singapore, conspired to violate U.S. export control laws and economic sanctions from 2007 through 2009. The Singapore-based sales account manager helped two Singapore business organizations in their efforts to ship U.S. goods to Iran and China, including by helping to create documents falsely stating that the goods were destined only for Singapore. The Singapore-based sales account manager caused at least 29 separate Avnet Asia shipments of goods to be exported from the United States, knowing that the goods were intended to be subsequently shipped to Iran or China. The value of these goods was at least $347,000. Neither Avnet Asia nor anyone else applied for an export license from U.S. government authorities.
If convicted, Cheng would face up to 20 years of imprisonment and a fine of up to twice the value of the property involved in the illegal transactions. The facts alleged in the indictment are allegations, and criminal defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The FBI’s Minneapolis Field Office, DOC-OEE’s Chicago Field Office, and HSI Los Angeles investigated the case. Assistant U.S. Attorneys Michael J. Friedman and Thomas A. Gillice, and Justice Department National Security Division Trial Attorney David C. Recker, are representing the United States.
Chinese National Charged with Criminal Conspiracy to Export US Power Amplifiers to ChinaRead the Press Release
WASHINGTON – An indictment was unsealed this week charging Cheng Bo, also known as Joe Cheng, a 45-year-old national of the People’s Republic of China, with participating in a criminal conspiracy from 2012-2015 to violate U.S. export laws by shipping U.S. power amplifiers to China.
Cheng’s former employer, Avnet Asia Pte. Ltd., a Singapore company and global distributor of electronic components and related software, agreed to pay a financial penalty to the United States of $1,508,000 to settle criminal liability for the conduct of its former employees, including Cheng. As part of a Non-Prosecution Agreement, Avnet Asia admitted responsibility for Cheng’s unlawful conspiracy to ship export-controlled U.S. goods with potential military applications to China, and also for the criminal conduct of another former employee who, from 2007-2009, illegally caused U.S. goods to be shipped to China and Iran without a license. This conduct violated the International Emergency Economic Powers Act.
The U.S. Department of Commerce (DOC) is also announcing today that Avnet Asia has agreed to pay an additional $1,721,000 as part of a $3,229,000 administrative penalty to resolve violations of the Export Administration Regulations.
“We will not abide individuals or business organizations that would seek to harm our national security by illegally providing coveted U.S. goods with potential military applications to Iran or China,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia. “We will pursue wrongdoers no matter where they are located in the world.”
“Avnet’s employees repeatedly falsified documentation in order to send export-controlled goods with potential military applications to China,” said Assistant Attorney General for National Security John C. Demers. “What China cannot develop itself, it acquires illegally through others. This is yet another example of a proxy acting to further China’s malign interests.”
"The People's Republic of China is relentless in pursuit of U.S. technology, much of which can be used for military purposes,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI is just as relentless in identifying and stopping those who violate export controls while doing business with China. Let us be clear, this is not business as usual. It is illegal and individuals and companies will pay a price for such violations."
“The indictment unsealed today serves as a warning to those who violate export control laws designed to protect our national and economic security,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Field Office. “The settlement with Avnet Asia announced today represents years of hard work on one of the FBI’s highest priorities – stopping the illegal export of U.S. technology to China. Regardless of their location, global corporations have a responsibility to follow U.S. law when selling American technology. Criminal and civil penalties await companies and individuals who fail to adhere to laws protecting sensitive U.S. technologies.”
“The Office of Export Enforcement remains committed to enforcing our nation’s export control laws by investigating domestic and overseas companies who intentionally divert sensitive U.S.-origin dual-use commodities to prohibited end users and nations without the required licenses or license exceptions,” said Acting Special Agent in Charge Aaron Tambrini of DOC Office of Export Enforcement’s (DOC-OEE) Chicago Field Office.
“The export of sensitive technology items to China or anywhere else in the world is tightly regulated for good reason,” said Special Agent in Charge David A. Prince of the Department of Homeland Security’s Homeland Security Investigations (HSI) Los Angeles. “One of HSI’s top enforcement priorities is preventing U.S. military and dual-use products and sensitive technology from falling into the hands of those who might seek to harm America or its interests. We will continue to work closely with our law enforcement partners to aggressively target and investigate those who jeopardize our nation’s security – or the welfare of those devoted to protecting it.”
According to the indictment unsealed today, Cheng was a sales account manager with Avnet Asia, and he operated as a sales representative to a Hong Kong-based customer with whom Cheng had an ownership interest. Cheng submitted paperwork on behalf of the customer to purchase export-controlled U.S. goods, including power amplifiers. Cheng caused false statements to be made to the U.S. manufacturer of the power amplifiers that his customer would use the power amplifiers in Hong Kong when, in fact, Cheng knew that the goods would be illegally shipped from Hong Kong to China.
As part of the Non-Prosecution Agreement, Avnet Asia admitted that from 2012-2015, Cheng caused at least 18 separate shipments of export-controlled goods to be sent from the United States to Hong Kong, knowing that the goods were intended to be subsequently shipped to China, and that the value of these illegal exports was at least $814,000. Avnet Asia also admitted that another sales account manager, this one based in Singapore, conspired to violate U.S. export control laws and economic sanctions from 2007 through 2009. The Singapore-based sales account manager helped two Singapore business organizations in their efforts to ship U.S. goods to Iran and China, including by helping to create documents falsely stating that the goods were destined only for Singapore. The Singapore-based sales account manager caused at least 29 separate Avnet Asia shipments of goods to be exported from the United States, knowing that the goods were intended to be subsequently shipped to Iran or China. The value of these goods was at least $347,000. Neither Avnet Asia nor anyone else applied for an export license from U.S. government authorities.
If convicted, Cheng would face up to twenty years of imprisonment and a fine of up to twice the value of the property involved in the illegal transactions. The facts alleged in the indictment are allegations, and criminal defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The FBI’s Minneapolis Field Office, DOC-OEE’s Chicago Field Office, and HSI Los Angeles investigated the case. Assistant U.S. Attorneys Michael J. Friedman and Thomas A. Gillice, and Justice Department National Security Division Trial Attorney David C. Recker, are representing the United States.
Central Illinois Sex Trafficker Sentenced to Life in PrisonRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid today sentenced a Central Illinois man, Franshon Stapleton, 48, to multiple life prison terms for trafficking young women for sex. Stapleton, of Springfield, ran his prostitution enterprise from a motel in Champaign where he lived, and used women he recruited from Champaign, Sangamon, and Peoria counties.
Prosecutors described the degradation and manipulation Stapleton used in 2017 and 2018, to exploit desperate young women, who were fighting drug addiction and homelessness, to force them to perform sex acts for money. Stapleton arranged the encounters, set the price, and collected the money. Stapleton used violence and threats of violence to force them to engage in sex with men. Through constant manipulation, Stapleton exploited his victims’ desperation as he ensured the women were ‘indebted’ to him for the motel rooms, drugs, and food he provided.
At sentencing, Judge Shadid stated that a sentence of anything less than life would ignore the nature of the offense, the impact to the victims, the defendant’s lack of remorse, his prior criminal history, and the sentencing guidelines.
U.S. Attorney John Milhiser commended the strength of the victims who provided critical evidence against the defendant and recognized the sustained efforts by federal and local law enforcement to locate, investigate and prosecute dangerous predators and remove them from the community.
Stapleton was ordered to serve a life sentence for each of the four counts of sex trafficking. The sentences will be served concurrently with additional five-year prison terms for each of the 13 related charges charged. Stapleton pleaded guilty to all the charges against him on Sept. 28, 2020, as his trial was set to begin. He has been in the custody of the U.S. Marshals Service since his arrest on the charges in May 2018.
The charges were investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Urbana Police Department; the Champaign County Sheriff’s Office; the Illinois State Police Forensics Laboratory; and, the Champaign Police Department with cooperation from Champaign County State’s Attorney Julia Reitz. Assistant U.S. Attorneys Elly M. Peirson and Ryan Finlen represented the government in the prosecution.
Burbank Man Arrested on Federal Complaint Alleging He Sold ‘Ghost Guns’ Out of His Hookah LoungeRead the Press Release
LOS ANGELES – A hookah lounge owner was arrested today on a federal criminal complaint alleging that he illegally sold firearms – including several “ghost guns” – out of his business in downtown Los Angeles.
Hovik Dagesian, 39, of Burbank, has been charged with one count of possession of an unregistered firearm. He is expected to make his initial appearance on Monday in United States District Court.
According to an affidavit filed with the complaint on Thursday, on four occasions between October 30, 2020 and January 8, 2021, Dagesian illegally sold 10 firearms, including an AR-15-style short-barreled rifle with no serial number.
Dagesian does not have a federal firearms license and does not have any firearms registered to him, according to the affidavit, which further alleges that Dagesian sold other AR-15-style ghost guns – firearms that are made from component parts and do not have serial numbers – as well as a semiautomatic shotgun, a Tec-DC9 pistol and a vintage “Tommy Gun.”
Each of the illegal firearms sales allegedly occurred at Dagesian’s place of business, DTLA Hookah Lounge. During the execution of a search warrant today, law enforcement seized more than a dozen firearms from his business.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Dagesian would face a statutory maximum sentence of 10 years in federal prison.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorney Gregg E. Marmaro of the General Crimes Section.
Birmingham Man Sentenced to 204 Months in Prison for Shooting Carjacking VictimRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Tuesday sentenced a Birmingham man for a carjacking and shooting that occurred in Birmingham in 2019, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
U.S. District Judge R. David Proctor sentenced JOSHUA J. YOUNG, 22, to 204 months in prison. Young pleaded guilty in December 2019 to one count of carjacking, one count of discharging a firearm during a crime of violence, and one count of being a felon in possession of a firearm.
According to the plea agreement, on January 22, 2019, the carjacking victim gave Young a ride to show him a property that needed painting. During the ride, Young pulled a pistol and demanded the victim’s vehicle and money. The victim attempted to flee the vehicle, but Young shot him. Young then drove off in the vehicle. Individuals at a nearby business found the victim and called an ambulance. The victim survived the shooting. The next day, Birmingham Police responded to a caller who was following the victim’s vehicle away from the scene of another crime. Officers located the stolen vehicle at a convenience store, with Young in the driver’s seat. A semi-automatic pistol matching the description given by the carjacking victim was found on the driver’s floorboard.
“Carjacking is a senseless act of violence that we will not tolerate in our district,” said U.S. Attorney Escalona. “I want to thank the Birmingham Police officers for their quick response in apprehending Young. We will continue to work with our federal, state and local law enforcement partners to prevent the unlawful possession of firearms by violent criminals.”
“Removing the criminal element that uses a firearm to facilitate violent crimes such as carjacking is a priority of ATF,” said Special Agent in Charge, Mickey French. “The partnerships with the public safety departments and the U.S. Attorney’s office were crucial in resolving this case”.
ATF and the Birmingham Police Department investigated this case, which was prosecuted by Assistant U.S. Attorney Alan Baty.
Auburn Man Sentenced to 70 Months for Drug TraffickingRead the Press Release
CONCORD - Leon Mandigo, 33, of Auburn, was sentenced on Thursday to 70 months in federal prison for drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation, the Drug Enforcement Administration learned that Mandigo was obtaining fentanyl from a source located in Massachusetts. On March 7, 2018, agents learned that Mandigo intended to travel to Massachusetts to purchase 200 grams of fentanyl and later observed him participate in a hand-to-hand exchange with a known drug trafficker.
After the transaction, the New Hampshire State Police stopped a vehicle in which Mandigo was a passenger. During the stop, he pulled an orange bag from his pants and threw it on the ground where a trooper later picked it up. The bag contained approximately 184 grams of fentanyl.
Mandigo previously pleaded guilty on September 16, 2020.
“Drug traffickers who bring fentanyl into New Hampshire should expect to be arrested, prosecuted, and jailed” said U.S. Attorney Murray. “We are committed to working with our law enforcement partners to stop the flow of this deadly drug into our state. We will not hesitate to prosecute and incarcerate the fentanyl dealers who peddle this dangerous substance in the Granite State.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
Agencies participating in this investigation are part of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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Arlington Man Sentenced to 57 Months in Prison for Being a Felon in Possession of a Stolen FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Roderick Oneal Pritchett, 30, of Arlington, Alabama, was sentenced in federal court for being a convicted felon in possession of a stolen firearm. Pritchett pleaded guilty to the charge in October of 2020.
In connection with his guilty plea, Pritchett admitted that on January 26, 2019, he was arrested in possession of a stolen firearm by agents of the Fourth Judicial Circuit Drug Task Force in Dixons Mills, Alabama. Specifically, agents observed Pritchett walking away from a nightclub while keeping his right arm down by his side. Pritchett stopped between two parked cars, squatted down at the rear of a Chevrolet Camaro, stood back up, and continued walking away while being ordered to stop. Pritchett eventually complied with agents’ orders to stop. On the ground behind one of the Camaro’s rear tires, agents recovered a stolen Glock .40-caliber pistol, which was equipped with a high-capacity 30-round magazine and loaded with 18 rounds of ammunition. At the time he possessed the stolen pistol, Pritchett knew he had prior felony convictions, including a conviction for Possession of a Firearm by a Prohibited Person (Felon) in the United States District Court for the Southern District of Alabama. Pritchett’s prior felony convictions rendered his possession of a firearm illegal under federal law.
United States District Court Judge Jeffrey U. Beaverstock imposed a sentence of 57 months’ incarceration, to be followed by a three-year term of supervised release. The court did not impose a fine, but the judge ordered Pritchett to pay $100 in special assessments.
This case was investigated by the Fourth Judicial Circuit Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin D. Roller.
Albuquerque man facing federal firearms and drug trafficking chargesRead the Press Release
ALBUQUERQUE, N.M. – Jose Carlos Cisneros-Legarda, 22 of Albuquerque, made his initial appearance in federal court on Jan. 28 where he was charged with possession with intent to distribute heroin, possessing a firearm during the commission of a drug trafficking crime and being a felon in possession of a firearm. Cisneros-Legarda will remain detained pending a preliminary hearing scheduled for Feb. 1.
Cisneros-Legarda is a state probationer whose probation term runs through September 2022 for 2017 convictions for armed robbery and conspiracy to commit armed robbery. According to a criminal complaint, between late January and early April 2020, Cisneros-Legarda allegedly posted multiple photos of himself on social media with large amounts of money. He also allegedly utilized Facebook Live to stream live videos of himself driving in multiple vehicles, not all of which were equipped with an interlock device as required by his probation terms.
On April 8, 2020, Cisneros-Legarda allegedly was live streaming video on Facebook Live in which he was observed in possession of a firearm. On April 9, 2020, a New Mexico Corrections Department Probation-Parole Division Officer along with members of the FBI Violent Crime Task Force and the Bernalillo County Metropolitan Detention Center Security Threat Intelligence Unit went to Cisneros-Legarda’s residence to conduct a search of his home pursuant to his probation conditions. A search of the premises uncovered three loaded handguns and approximately 26.7 grams of heroin.
As a convicted felon, Cisneros-Legarda cannot legally possess a firearm or ammunition.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Cisneros-Legarda faces a minimum of five years and up to twenty years in prison.
The FBI, the New Mexico Corrections Department, and the Bernalillo County Metropolitan Detention Center Security Threat Intelligence Unit investigated this case. Assistant U.S. Attorney Jaymie L Roybal is prosecuting the case.
Albany Man Charged with Obstruction of Justice and Violating Release ConditionsRead the Press Release
ALBANY, NEW YORK – Michael P. Fish, age 25, of Albany, was charged today with obstruction of justice and committing a felony offense while on release, for submitting fraudulent character letters to the United States District Judge overseeing his federal criminal case.
The announcement was made by Acting U.S. Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that Fish, who pled guilty to computer hacking, aggravated identity theft and child pornography offenses in May 2020, submitted six fraudulent character letters to U.S. District Judge Mae A. D’Agostino. According to the complaint, Fish doctored letters, including one from a Catholic priest, and created letters purportedly from others, including his mother and grandparents. The fraudulent letters spoke of Fish’s good character and asked Judge D’Agostino to impose a lenient sentence.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed today against Fish carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Fish will be sentenced on March 19, 2021 in connection with his May 2020 convictions. He faces at least 2 years in prison.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced TERRY WILLIAM CLIFFORD, 48, of Gillette, Wyoming on January 22, 2021 for conspiracy to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime. Clifford was arrested in Campbell County, Wyoming. He received two hundred sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $500.00 and a $200.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced RAYMOND ARTHUR CARNAHAN, 66, of Gillette, Wyoming on January 22, 2021 for conspiracy to distribute methamphetamine. Carnahan was arrested in Campbell County, Wyoming. He received two hundred months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
$2.25 Million Fund Available in Justice Department Settlement with AmtrakRead the Press Release
Today, Amtrak began accepting claims for monetary compensation for people with mobility disabilities who traveled or wanted to travel from or to one of the 78 stations listed below and encountered accessibility issues at the stations. Claims must be submitted by May 29, 2021.
On Dec. 2, 2020, the Department of Justice and Amtrak, the National Railroad Passenger Corporation, entered into an agreement to resolve the department’s findings of disability discrimination in violation of the Americans with Disabilities Act (ADA). Under the agreement, Amtrak will fix inaccessible stations and pay $2.25 million to victims hurt by inaccessibility at the 78 stations listed below.
To be eligible for monetary compensation, an individual must:
- Have a mobility disability;
- Be harmed physically or emotionally because of accessibility issues, including, for example, inaccessible parking; steep slopes or steps to get to the station; lack of directional signs; toilet rooms with inaccessible entrances, stalls, or sinks; high ticket counters; deteriorated platforms; and narrow routes at stations, at one or more the stations listed below between July 27, 2013, and Dec. 2, 2020;
- Have lived at, visited, or desired to visit a place closer to one or more of the stations listed below than an accessible, alternative Amtrak station; and
- Submit a claim form and declaration by mail, fax, email or online to the claims administrator by no later than May 29, 2021. Help is available from the settlement administrator for those who are unable to complete the claim form due to a disability.
Questions about making claims should be directed to the settlement administrator by any of the following methods:
- Online: AmtrakDisabilitySettlement.com
- Email: [email protected]
- Telephone (toll-free): 1-888-334-6165
- TTY Telephone (toll-free): 1-866-411-6976
Under the agreement, Amtrak has committed to make its intercity rail stations accessible, prioritizing stations with the most significant barriers to access. Over the next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at 90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. As part of this commitment, Amtrak recently established an Office of the Vice President of Stations, Properties & Accessibility to coordinate its compliance with the ADA.
The 78 stations are:
- Tuscaloosa, Alabama
- Yuma, Arizona
- Fort Morgan, Colorado
- Glenwood Springs, Colorado
- Granby, Colorado
- Old Saybrook, Connecticut
- Windsor, Connecticut
- Windsor Locks, Connecticut
- Newark, Delaware
- Gainesville, Georgia
- Jesup, Georgia
- Toccoa, Georgia
- Centralia, Illinois
- Effingham, Illinois
- Gilman, Illinois
- Homewood, Illinois
- Mattoon, Illinois
- Plano, Illinois
- Princeton, Illinois
- Rantoul, Illinois
- Summit, Illinois
- Connersville, Indiana
- Crawfordsville, Indiana
- Elkhart, Indiana
- Hammond-Whiting, Indiana
- Waterloo, Indiana
- Burlington, Iowa
- Creston, Iowa
- Mount Pleasant, Iowa
- Newton, Kansas
- Topeka, Kansas
- Maysville, Kentucky
- South Shore-South Portsmouth, Kentucky
- Lake Charles, Louisiana
- Aberdeen, Maryland
- Cumberland, Maryland
- Niles, Michigan
- Detroit Lakes, Minnesota
- St. Cloud, Minnesota
- Staples, Minnesota
- Picayune, Mississippi
- Kirkwood, Missouri
- La Plata, Missouri
- Poplar Bluff, Missouri
- Cut Bank, Montana
- East Glacier Park, Montana
- Malta, Montana
- Holdrege, Nebraska
- Elko, Nevada
- Hudson, New York
- Plattsburgh, New York
- Port Henry, New York
- Devils Lake, North Dakota
- Coatesville, Pennsylvania
- Downingtown, Pennsylvania
- Johnstown, Pennsylvania
- Lewistown, Pennsylvania
- Parkesburg, Pennsylvania
- Westerly, Rhode Island
- Dillon, South Carolina
- Alpine, Texas
- Marshall, Texas
- McGregor, Texas
- Helper, Utah
- Castleton, Vermont
- Montpelier, Vermont
- Ashland, Virginia
- Clifton Forge, Virginia
- Petersburg, Virginia
- Richmond Staples Mill Road, Virginia
- Bingen-White Salmon, Washington
- Kelso-Longview, Washington
- Wishram, Washington
- Charleston, West Virginia
- Harpers Ferry, West Virginia
- Hinton, West Virginia
- Columbus, Wisconsin
- Tomah, Wisconsin
This action was brought by the Disability Rights Section of the Justice Department’s Civil Rights Division. To read the settlement agreement, please click here, and to read the complaint, please click here.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
28 January 2021
Wisconsin Rapids Man Sentenced to 18 Years for Child Exploitation CrimesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Alexander Kawleski, 44, Wisconsin Rapids, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 18 years in federal prison for producing and possessing child pornography. Kawleski was convicted of these charges on July 17, 2019, following a three-day jury trial.
Evidence at trial established that in 2013, Kawleski recorded himself sexually assaulting a girl who was between 15 and 16 years old. He kept a copy of the assault on a flash drive, where a friend found it and gave it to a Wisconsin Rapids Police Department detective. In addition to the assault, the evidence established that in 2013 and 2014, Kawleski used a two-way mirror to secretly record two minor females while they were in the bathroom, in various stages of undress, getting in and out of the shower. Those recordings were saved on the same flash drive as the assault. One of the females was between 13 and 14 years old, and the other was 15 or 16 years old. Neither victim was aware that they were being filmed.
Judge Peterson called Kawleski’s crime an atrocity and noted that the defendant’s pattern of misconduct demonstrated an enduring interest in underage girls. Judge Peterson also found the defendant’s conduct manipulative and heartless and expressed a concern that he might reoffend.
The charges against Kawleski are the result of an investigation by the Wisconsin Rapids Police Department and the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorneys Elizabeth Altman and Laura Przybylinski Finn.
Weleetka Resident Pleads Guilty to Assault Resulting in Substantial Bodily Injury in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stanley Wayne Zackery, Jr, age 38, of Weleetka, Oklahoma entered a guilty plea to Assault Resulting In Substantial Bodily Injury To A Spouse, Intimate Partner And Dating Partner In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153 and 113(a)(7), punishable by not more than 5 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about August 20, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant did assault a spouse, intimate partner, and dating partner, resulting in substantial bodily injury.
The charges arose from an investigation by the Okfuskee County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Craig Gestring represented the United States.
Waterbury Woman Sentenced to Prison for Theft of Social Security BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OMAYRA SANTIAGO, 44, of Waterbury, was sentenced today by U.S. District Judge Janet C. Hall to three months of imprisonment, followed by three years of supervised release, for illegally receiving Social Security benefits. Judge Hall ordered Santiago to serve the first three months of her supervised release in home confinement.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, for approximately 13 years, Santiago received monthly Social Security benefits from the Social Security Administration (“SSA”) in the form of Supplemental Security Income (“SSI”). Santiago was the representative payee of her children’s SSI benefits, and she represented to the SSA that her household’s income, resources and living arrangements caused the children to be eligible for SSI benefits.
From 2005 to 2018, Santiago made multiple false statements to the SSA in order to qualify for and receive SSI benefits. She failed to disclose that the father of her children owned the Waterbury property in which their family lived, and that the father of her children had claimed their children as dependents on his tax returns. Santiago also had received cash and electronic deposits and she did not report as income to the SSA. In addition, in January 2017, Santiago received approximately $220,000 from the settlement of civil lawsuit, but never disclosed her receipt of the money to the SSA as she knew she was required to do.
Between 2005 and 2018, Santiago collected more than $146,752.86 worth of SSI benefits that she was not entitled to received. Judge Hall ordered Santiago to make full restitution.
On October 3, 2019, Santiago pleaded guilty to one count of theft and conversion of public money.
This matter was investigated by the Social Security Administration Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Vallejo Woman Sentenced to 5 Years in Prison for International Money Laundering Conspiracy and Tax FraudRead the Press Release
SACRAMENTO, Calif. — Ronda Boone, 58, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to five years in prison and ordered to pay $1,968,650 in restitution for a multimillion dollar tax fraud and money laundering conspiracy, U.S. Attorney McGregor W. Scott announced.
“The defendants attempted to steal more than $4.5 million from the IRS,” said Michael Daniels, Acting Special Agent in Charge IRS Criminal Investigation. “When their scheme finally worked, they moved their money through various accounts, including overseas. Once again this shows the severe nature of fraudulent tax refund schemes perpetrated against the IRS. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”
According to court documents and evidence presented at trial, Ronda Boone and her husband and co-defendant Marty Marciano Boone, 59, filed separate false tax returns claiming that they were owed millions of dollars in refunds from the IRS. While the IRS flagged Ronda Boone’s tax return as fraudulent and denied her claim, Marty Boone’s false return resulted in the IRS paying him over $1.9 million in a refund check. Evidence at trial established that Marty Boone and Ronda Boone then laundered those funds through domestic and foreign accounts, including by establishing a shell corporation in Cyprus and a church in the state of Washington through which they moved the fraudulently obtained money.
On Jan. 31, 2019, a jury found Marty Boone guilty of filing a false tax return, conspiring to commit money laundering and money laundering, and found Ronda Boone guilty of conspiring to commit money laundering and money laundering. On Nov. 14, 2019, Marty Boone was sentenced to seven years and three months in prison.
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christina McCall handled the sentencing hearing in the case.
Utica Man Charged with Aggravated Harassment of VA EmployeesRead the Press Release
ALBANY, NEW YORK – Robert Seifert, age 62, of Utica, New York, was charged by criminal complaint last week for making telephonic threats to employees of the Albany Stratton Veterans Affairs (VA) Medical Center.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Christopher Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs, Office of Inspector General (VA-OIG).
The criminal complaint alleges that on January 14, 2021, Seifert made repeated calls to employees at the Albany Stratton VA with no legitimate purpose other than to threaten them, and left threatening voicemails in which he used demeaning and offensive language that caused each of the employees to fear for their safety. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Seifert is a Class A misdemeanor that carries a maximum of 1 year in prison, a maximum fine of up to $100,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Seifert was arraigned on January 22 in Albany before United States Magistrate Judge Daniel J. Stewart. On January 27, Judge Stewart ordered that Seifert be detained pending trial.
This case is being investigated by the VA-OIG and the Veterans Affairs Police Service at the Albany Stratton VA Medical Center, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
Union County Man Sentenced to 10 Years in Prison for Firearms Offense in Connection with a ShootingRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man convicted of being a felon in possession of a semi-automatic submachine gun with a high capacity magazine was sentenced today to 120 months in prison, Acting U.S. Attorney Rachael A. Honig announced.
Jarrell L. Daniels, 29, of Elizabeth, New Jersey, was convicted on Feb. 21, 2020, after a two and a half-day trial before U.S. District Judge Kevin McNulty in Newark of one count of being a felon in possession of a semi-automatic submachine gun with a high capacity magazine and multiple rounds of ammunition.
According to documents filed in this case and the evidence at trial:
On the morning of April 9, 2018, Daniels was walking down Irvington Avenue in Elizabeth carrying a loaded .45 caliber Masterpiece Arms ACP submachine gun with 30 additional rounds of ammunition in an extended magazine. Daniels was wearing a disguise, as well as latex gloves. He came upon his victim and opened fire, shooting at his victim 16 times, but none of the shots struck the victim. As he fled, Daniels dropped his head covering and later stashed the gun and other items of clothing in a nearby trashcan. DNA on these items, as well as surveillance footage and ballistics evidence, ultimately enabled the authorities to identify Daniels as the shooter.
In addition to the prison term, Judge McNulty sentenced Daniels to three years of supervised release.
Acting U.S. Attorney Honig credited law enforcement officers of the Elizabeth Police Department, under the direction of Police Chief Giacomo Sacca.; the Union County Sheriff’s Office, under the direction of Sheriff Peter Corvelli; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to today’s sentencing.
The government was represented by Assistant U.S. Attorneys Vera Varshavsky and Sammi Malek of the Criminal Division of the U.S. Attorney’s Office in Newark.
U.S. Attorney Releases 2020 Annual ReportRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – January 28, 2021
SAN DIEGO – U.S. Attorney Robert Brewer has released the office’s 2020 Annual Report, which details its major cases and achievements during a year that posed unprecedented challenges to law enforcement and federal court operations in the district due to the pandemic.
“I am very proud of our significant enforcement, community outreach, and administrative accomplishments under difficult conditions,” Brewer said. “This 2020 Annual Report provides a window into a few of the many cases we worked on this year. While the report cannot possibly cover all the district’s significant cases, it effectively summarizes the great variety of work handled by this office, and illustrates the tremendous skills and experience our prosecutors and law enforcement professionals bring to bear on each and every case.”
During 2020, the Office met the challenges of the COVID-19 pandemic while trying more cases than any other U.S. Attorney’s office in the Ninth Circuit. The Criminal Division and Civil Division successfully pursued enforcement priorities that made a direct impact on the safety of the District and upheld the rule of law. With the dedicated assistance from our Administrative Division, the Office also hired a record number of Assistant United States Attorneys.
Targeting Violent Crime and Seeking an End to Human Trafficking
In 2020 alone, the Office’s Violent Crimes and Human Trafficking Section (“VCHT”)successfully prosecuted more than 100 criminal street gang defendants, obtained significant prison sentences on gang members from our region’s most violent criminal street gangs, and prosecuted several individual firearm cases.
VCHT also led in the national effort to end human trafficking and child exploitation. According to a May 26, 2020 report from the Human Trafficking Institute, the Office was #1 in the nation in 2019 for charging the most new trafficking defendants. We were #4 in the nation for active cases, and we charged the largest human trafficking case in 2019 – a forced labor case involving 12 defendants.
Recently, in August 2020, VCHT led investigations resulting in the arrest of Luigi Popescu of Romania for his role in leading a seven-year alien smuggling operation. Popescu is expected to plead guilty in January 2021. Also, in September 2020, defendant Joseph Price was sentenced to 15 years in prison after pleading guilty to sex trafficking a 15-year-old minor.
Dismantling Organized Crime
The Southern District of California is a hub of drug smuggling by the world’s most dangerous international drug cartels. During 2020, the Office led and pushed for several bold new initiatives to dismantle these criminal organizations. For example, in March, our federal law enforcement partners shut down a nearly half mile-long subterranean drug tunnel with reinforced walls, ventilation, lighting, and a rail system – and seized $30 million of fentanyl, methamphetamine, heroin, cocaine, and marijuana. In October, Sinaloa Cartel leader Jorge Valenzuela-Valenzuela was arrested in Massachusetts after he entered the United States using a fraudulent Mexican identity document. And in November 2020, agents arrested three individuals for trafficking huge quantities of illicit drugs for the Sinaloa Cartel in connection with the largest single seizure of cash, narcotics, and ammunition in this district’s history ($3.5 million in bulk U.S. currency, 685 kilograms of cocaine, 24 kilograms of fentanyl, and approximately 20,000 rounds of .50 caliber ammunition and hundreds of body armor vests).
Securing Our Border
The Border Enforcement Section (“BES”) was created in early 2019 to ensure that the Office devotes adequate resources to addressing crime at our six ports of entry. Creating a BES section has been particularly important during the past year because of the historic increase in drug smuggling along the border. For example, federal law enforcement agencies seized 83% more methamphetamine in June of 2020 compared to June 2019, and seized 410% more fentanyl in June 2020 compared to June 2019. Due to the dedicated efforts of BES attorneys and support staff, the Office has responded to this surge with a corresponding increase in successful prosecutions. In July 2020 alone, BES doubled its prosecution numbers and charged 322 cases involving the importation of controlled substances, compared to 157 cases in July 2019.
Diligent Prosecution of Several High-Profile Cases
The number and quality of the high-profile cases the Office has handled during 2020, including during the pandemic, are additional evidence of our commitment to excellence. The following are just a few examples:
- U.S. Representative Duncan Hunter was sentenced to 11 months in prison for stealing $250,000 in campaign funds to pay for his and his wife’s living and luxury expenses.
- Gina Champion-Cain pleaded guilty to masterminding the longest Ponzi scheme in San Diego history with hundreds of victims throughout California and the United States and losses estimated as high as $400 million.
- Abdullahi Ahmed Abdullahi, a Canadian national, was successfully extradited to the United States and faces trial on federal conspiracy charges of providing material support to terrorists.
- U.S. Navy Captain David Haas and former U.S. Navy Chief Petty Officer Brooks Alonzo Parks pleaded guilty to conspiracy to commit bribery, representing the 22nd and 23rd defendants to have entered guilty pleas as part of the bribery and corruption scheme involving Glenn Defense Marine Asia and its leader, “Fat Leonard” Glenn Francis. The decade-long scandal involves scores of numerous U.S. Navy officials and officers, tens of millions of dollars in fraud, and millions of dollars in bribes. Eight more defendants await jury trial.
- Rabbi Ysiroel Goldstein, former Director of Chabad of Poway Synagogue, and five of his associates pleaded guilty to fraud charges, admitting they participated in a complex, years-long, multi-million dollar tax-evasion scheme and other illegal financial transactions involving theft of public money.
- Former Honolulu Police Chief Louis Kealoha and his wife, former Honolulu prosecutor Katherine Kealoha, were sentenced to 84 months and 156 months in prison, respectively, for a wide range of criminal conduct, including framing their relative with a crime to conceal their own fraud. Additionally, the Kealohas’ co-conspirators, former Honolulu police officers Derek Wayne Hahn and Minh-Hung “Bobby” Nguyen, received 42 months and 54 months, respectively, for their involvement in what has been called the largest case of corruption in Hawaii in decades.
- Dr. Jennings Ryan Staley, a licensed physician, was indicted for mail fraud and additional crimes arising from his business venture selling alleged COVID-19 “treatment kits” and agreeing with a Chinese supplier to smuggle hydroxychloroquine powder in the U.S., including lying to U.S. Customs by mislabeling a shipment as “yam extract.”
Excellence in Civil Litigation
Our Civil Division includes 23 attorneys who represent the United States and its agencies and employees in affirmative and defensive civil litigation. Much of our civil work arises out of the federal government’s activities along the southwest border and the military’s strong presence in the district.
Despite the pandemic, in 2020 alone, the Civil Division recovered $46 million on affirmative cases involving allegations of healthcare fraud, defense contracting fraud, and opioid over-prescribing. Since March 2020, when the lockdown occurred, the Office took on more than 100 new defensive cases, including successfully defending over 25 TROs. The Civil Division also responded to dozens of individual prisoner habeas corpus petitions and defended significant class action cases.
Successful Diversion Programs
In 2020, the Office continued the great work of two of the Southern District of California’s diversion programs, the Alternative to Prison Solutions (APS) Diversion Program and the Veteran’s Diversion Program (VDP).
In 2020, APS celebrated its 10-year anniversary as a flagship collaborative effort between the U.S. Attorney’s Office, U.S. Pretrial Services Office, defense bar, and federal bench. This unique program offers select criminal defendants who plead guilty to felony charges an alternative to incarceration with an opportunity to have their case dismissed after 12 months in exchange for compliance with certain court requirements, such as obtaining employment, enrolling in education programs, and obtaining mental health and addiction treatment. When successful participants graduate from APS, their charges are dismissed and they re-enter society as productive citizens with their personal trajectories altered, often in remarkably inspiring ways. During 2020, we substantially added to the number of successful graduates from the program, resulting in a 92% success rate over the past two years.
The Office also expanded the important work of VDP, which is the collaborative effort of our office, Pretrial Services, U.S. Magistrates, defense counsel, and the Veterans Administration. The program’s game-changing element is the Veterans Treatment Court, admission to which requires a service-related injury. VDP provides veterans a second chance at a meaningful future. Even in the pandemic, the VDP team has continued its work seamlessly online, providing resources, encouragement, and oversight that is significantly improving the lives of veterans in our community.
Leading the Way through Community Outreach Initiatives
The U.S. Atorney’s Office also prioritized our community outreach programs focused on the prevention of violent crime, fentanyl abuse, tribal relations, hate crimes, and other enforcement priorities. For example, in February 2020, the U.S. Attorney joined five other U.S. Attorneys from the Southwest Border in a series of briefings and meetings with senior Mexican law enforcement government officials and embassy personnel regarding coordinated efforts to combat transnational crime and trafficking of arms and illicit drugs. Our community outreach team has devoted significant resources to raise fentanyl abuse awareness through press releases and press conferences. Also, the Office prioritized our work on tribal relations through several initiatives that were implemented by a designated tribal liaison AUSA. Finally, the Office led successful community meetings and education programs regarding hate crime prevention and civil rights issues. These programs, which are just a few examples, have strengthened our relationship with the community by fostering important dialogue between our district’s law enforcement agencies and the citizens we serve.
“Despite the pandemic, the U.S. Attorney’s Office remains open for business, and throughout the year we fulfilled our critical mission,” said Brewer. “As I reflect on this extraordinary year, I am so impressed that even under the most difficult circumstances, the public servants in this office and throughout the criminal justice system maintained safety and security by adopting creative operational responses. I applaud the lawyers and staff in this office and our partners: the officers, agents, and first responders who continue to meet any challenge regardless of the risks they face, each and every day.”
U.S. Attorney Birge Announces Project Safe Neighborhoods Funding to Promote Violence Prevention and Community Policing in West MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN—United States Attorney Andrew Birge announced today that the Department of Justice has awarded a total of $152,430 in Project Safe Neighborhoods (PSN) grant funds to local partners for the year 2021. The PSN grant program works to reduce and prevent violent crime by supporting a combination of community-based violence prevention programs and law enforcement efforts in specific geographic areas in our district, identified as the most at-risk through data collection and analysis. In so doing, the PSN grant program seeks to improve both citizen security and community-police engagement. With that goal in mind, a committee of local law enforcement leaders worked closely with their local communities to determine how to distribute these federal funds.
In Western Michigan, a committee of local prosecutors and law enforcement departments from Battle Creek, Benton Harbor, Grand Rapids, Kalamazoo, Lansing, and Muskegon collectively worked with community members and non-governmental organizations to focus this funding on violence prevention, building strong community-law enforcement relationships, and providing alternative opportunities for those who might engage in violent crime. This year the PSN committee awarded grant funding to a diverse set of projects, including community-based violence intervention programs as well as intelligence-led policing initiatives. The committee decided to allocate PSN grant funding to the following programs:
- In Battle Creek, the money will be used to develop outreach workers to mentor at-risk youth in the community and to fund some of the victim advocate programming of the Battle Creek Police Department.
- In Benton Harbor, grant funds will support a neighborhood arts program to work with local social media “influencers” on creating positive messaging about violent crime reduction and teach area youth skills for music and video production.
- In Grand Rapids, the grant money will be used to support the development of a Violent Crime Intelligence Team (VCIT). The VCIT is a dedicated team of detectives, patrol officers, and crime analysts that investigate gang activity and gun violence in the city.
- In Kalamazoo, the money will continue to support the long-running and successful Group Violence Intervention (GVI) program. The GVI program supports police and community members, including ex-offenders, as they personally reach out to at-risk youth and group members to interrupt cycles of violence.
- In Lansing, grant funds will support the city’s innovative public health approach to violent crime reduction. PSN money will fund the recruitment and training of staff that will develop a street outreach team. This team will intervene and provide support to individuals most at-risk of committing, and becoming victims of, violent crime.
- In Muskegon, the money will fund a project that helps at-risk youth obtain their drivers’ licenses. Lack of transportation is a major obstacle for many at-risk youth, which precludes them from attending school and obtaining or maintaining employment.
- In Muskegon Heights, PSN funds will be used to fund a variety of community-based programming and outreach, including an after-school sports program, a park renovation project, the mentoring of at-risk youth by former convicts, and community/police town hall meetings.
The United States Attorney’s Office for the Western District of Michigan is committed to supporting local law enforcement, community organizations, and residents to reduce violent crime in our district. Senior Vice President Annette Chapman, of the Battle Creek Community Foundation, is the fiscal agent for the Western District of Michigan’s Project Safe Neighborhoods grant. Her dedication to the grant’s strategy, management, and community stakeholders is essential to the success of this program.
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Two Lumberton Brothers Sentenced for Drug and Gun CrimesRead the Press Release
RALEIGH, N.C. – Two Lumberton men were sentenced for gun and drug crimes. James Floyd received a sentence of 72 months’ imprisonment and Jerrick Floyd received a sentence of 90 months’ imprisonment.
According to court documents, James Floyd, 29, and Jerrick Floyd, 36 sold drugs and firearms out of a stash house in Lumberton, North Carolina. From July 2019 until January 2020, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), conducted an investigation into the Floyds for drug distribution and unlawful firearms sales. Law enforcement conducted numerous controlled purchases of firearms and cocaine. On January 16, 2020, law enforcement executed a search warrant at the location of the controlled purchases and recovered three handguns, two rifles, extended magazines, a quantity of cocaine, and 1.5 kilograms of marijuana. James Floyd is also a convicted felon and prohibited from possessing firearms.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Robeson County Sheriff’s Office, and Lumberton Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-87-BO.
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Two Indicted After Investigation into Reports of Sex Trafficking at the Desert Star MotelRead the Press Release
FRESNO, Calif. – A federal grand jury has returned a one-count indictment against Jatinbhai Naresh Bhakta, 29, and Roy Gene Drees, 45, both of Bakersfield, charging them with use of facilities of interstate commerce in aid of a racketeering enterprise, U.S. Attorney McGregor W. Scott announced today.
According to a criminal complaint, Bhakta purchased and began operating the Desert Star Motel at 516 South Union Avenue in Bakersfield in 2015. Bhakta lived in a unit at the motel. Drees also lived at the motel and was employed as a handyman and general manager.
Since 2015, the Bakersfield Police Department has made numerous prostitution-related arrests at the property. In May 2019, an investigation confirmed that Darnell Edwards forced two minor females to engage in prostitution at the Desert Star. On Nov. 7, 2019, Edwards was indicted for sex trafficking of minors. When a search warrant was executed at the Desert Star on Jan. 22, 2021, fifteen prostitutes and three pimps were encountered. Drees and Bhakta were arrested at that time.
If convicted, the defendants face a maximum statutory penalty of up to five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
January is Human Trafficking Awareness Month. Some of the federal and state resources available on this topic are available at the Department of Justice website and the California Attorney General’s website.
If you or someone you know is a victim of human trafficking, contact the Homeland Security Investigations’ Blue Campaign at 1-866-347-2423 or get help from the National Human Trafficking Hotline at 1-888-373-7888 or text 233733.
Report missing children, child pornography, or sexual exploitation of a child online to the National Center for Missing & Exploited Children (NCMEC) at 1-800-THE-LOST (843-5678) or https://report.cybertip.org/.
The investigation is ongoing and is being conducted by the Bakersfield offices of the Federal Bureau of Investigation, Homeland Security Investigations, Bakersfield Police Department, and the Parole Division of the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
Troy Business Owner Charged with Wire FraudRead the Press Release
A Troy based commercial real estate broker and investor was charged today with devising and executing a scheme to obtain money by means of false material promises and representations from victim-investors, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Special Agent in Charge Timothy T. Waters, Federal Bureau of Investigation.
Viktor Gjonaj, age 43, was charged in an Information with one count of wire fraud and the case has been assigned to the Honorable Linda V. Parker, United States District Judge.
According to the criminal Information, in June 2016, Gjonaj believed he had discovered a guaranteed way to win huge jackpots in the Michigan Lottery Dailey 3 and 4 games. To accomplish this he had to substantially increase the times he played and amounts he spent. In 2017, Gjonaj began losing more money than he won and more money than he could afford to lose. Rather than ending his gambling, Gjonaj devised a scheme to trick individuals into giving him money by falsely promising them he would invest it in lucrative real estate deals. In order to make the deals look legitimate, Gjonaj created a fake title company and instructed the victim-investors to wire transfer money into the bank account of the fake company. Gjonaj described the fraudulent real estate deals in great detail and encouraged victim-investors to continue giving him money by disbursing payments to them which he falsely claimed were profits on their “investment.” By early 2019, Gjonaj was betting over $1 million a week on Michigan Lottery games using money fraudulently obtained from victims. In August 2019, Gjonaj’s scheme to defraud unraveled resulting in over $19 million in losses to victims.
“This case shows us that criminals may use sophisticated methods and apparently legitimate businesses, but their crimes amount to nothing more than stealing other people’s money. The defendant’s gambling harmed not just himself, but many other innocent victims as well,” stated United States Attorney Matthew Schneider.
“Viktor Gjonaj repeatedly lied about the nature of his business, inducing investors to turn over money that he then squandered by playing the lottery," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "The defendant’s lies have caught up with him and he will now face the consequences of his fraudulent scheme."
An Information is only a charge and is not evidence of guilt. The defendant is presumed innocent and the burden is on the government to prove guilt beyond a reasonable doubt.
The investigation was conducted by the FBI. The Securities and Exchange Commission’s cooperation in this investigation is appreciated.
If you or someone you know is suffering from a gambling addiction please visit Michigan Problem Gambling Helpline at
https://www.michigan.gov/mdhhs/0,5885,7-339-71550_2941_4871_43661_64090-295819--,00.html
Three men suspected in illegal border crossing near Eureka appear in courtRead the Press Release
MISSOULA – Three men suspected in an illegal border crossing into Montana near Eureka and arrested after a high-speed pursuit had initial appearances today on criminal complaints, Acting U.S. Attorney Leif Johnson said.
Criminal complaints filed in the case allege immigration crimes against Christopher White, 41, of Jamaica; Rastesfaye Alpha Neil, 39, of Washington, D.C.; and Afrah Ahmed Abdi, 32, of Virginia.
The complaints accuse White of being an alien in the United States after deportation, Neil of transporting certain aliens and Abdi of improper entry by alien.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge John T. Johnston presided. All defendants were detained pending further proceedings.
According to the criminal complaints and affidavits filed in support of the complaints, on Jan. 23 at about 8:55 a.m., the Spokane Sector Border Patrol Dispatch received information that three subjects dressed in camouflage and dark clothing and carrying black backpacks were crossing the border from Canada into the United States near the area of West Kootenai, Montana.
Border Patrol agents located a Nissan Sentra on West Kootenai road leaving the area where the three subjects had crossed into the United States. The agents attempted to conduct a vehicle stop, and the Nissan eventually pulled to the side of the road. As agents approached the vehicle on foot, the Nissan sped away and headed southeast on Highway 93. Law enforcement ultimately deployed a vehicle immobilization device on the Nissan, and it came to a stop down a small embankment off the highway near Whitefish, Montana. Law enforcement arrested the occupants.
Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by the Border Patrol, Flathead County Sheriff’s Office, Montana Highway Patrol and Lincoln County Sheriff’s Office.
PACER case reference. MJ-21-12, MJ-21-13 and MJ-21-15.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Three Individuals Charged in Connection with Scheme to Defraud New Jersey Health Care Program of More Than $4.5 MillionRead the Press Release
TRENTON, N.J. – Three New Jersey residents were arrested today for allegedly participating in a long-running scheme to defraud the New Jersey Traumatic Brain Injury Fund (TBI Fund), a publicly funded health care benefit program, of more than $4.5 million, Acting U.S. Attorney Rachael A. Honig announced.
Harry Pizutelli, 62, of Edison, New Jersey, and C.R. Kraus, 55, and Maritza Flores, 43, both of Toms River, New Jersey were arrested by special agents of the FBI and IRS this morning and are charged by criminal complaint with conspiracy to commit health care fraud. They are scheduled to appear later today by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni.
According to documents filed in this case and statements made in court:
The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.
After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.
Pizutelli was the manager of the TBI Fund and was responsible for the its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund patients. From 2009 through June 2019, Pizutelli, Kraus, Flores, and others conspired to defraud the TBI Fund by misappropriating more than $4.5 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Kraus, Flores, and others by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Kraus, Flores, and other conspirators had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers so that his conspirators received vendor payments even though they had performed no services to eligible patients. Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores and other conspirators.
Pizutelli orchestrated the fraudulent payment of more than $4.5 million from the TBI Fund to members of the conspiracy, including more than $4 million in fraudulent distributions to Kraus and Flores, which they used for their own personal benefit and enrichment. To obscure their fraudulent conduct, Kraus and Flores also made material misstatements on their federal income tax returns, by significantly underreporting the income they had derived from the fraudulent scheme.
The health care fraud conspiracy charge carries a maximum penalty of 20 years in prison and of $250,000 or twice the gross receipts to the defendants or gross loss sustained by any victims, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges. She also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for their assistance.
The government is represented by J. Brendan Day, Attorney-in-Charge of the Trenton Branch Office of the U.S. Attorney’s Office.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Three Defendants Charged in Two New Unemployment Fraud Cases; Combined Losses Exceed a Half Million DollarsRead the Press Release
Three defendants have been charged via criminal complaints for their roles in two separate Unemployment Insurance benefit fraud schemes, announced United States Attorney Matthew Schneider.
Joining in the announcement were Special Agent-in-Charge Timothy Waters, Federal Bureau of Investigation; and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
One complaint charges Mitchacole Johnson, 44, of Shelby Township, and Larry Witherspoon, 45, of Harper Woods, with mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. Johnson and Witherspoon were arrested today.
According to the complaint, Johnson and Witherspoon are responsible for filing at least 66 claims for fraudulent Michigan unemployment insurance benefits, causing a loss to the state of over $150,000. It is also alleged that Johnson and Witherspoon filed dozens of complaints in other states—including California, Arizona, and Nevada—causing additional losses in excess of $300,000. The complaint alleges that Johnson filed a number of claims in her own name, while Witherspoon filed multiple claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon” Both Johnson and Witherspoon are alleged to have filed their claims using other people’s Social Security Numbers. The complaint alleges that the pair had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.
The other complaint charges Jordan Armstrong, 28, of Detroit, with wire fraud, fraud in connection with access devices, and aggravated identity theft. Armstrong was arrested on January 20, 2021.
According to the complaint, Armstrong has filed fraudulent applications for unemployment insurance benefits on behalf of individuals in Michigan, California, and Pennsylvania. It is alleged that Armstrong did so using these individuals’ Social Security Numbers, and that he did so without their permission. The complaint states that during the application process, Armstrong requested the benefits to be paid out via debit card, and then caused the cards to be mailed to various addresses within his control here in Michigan. It is alleged that Armstrong then used these cards to repeatedly withdrawal the funds via ATM, and that by October 2020 he was making daily, high-dollar cash withdrawals using at least 12 separate debit cards. Armstrong is alleged to be responsible for as many as 29 fraudulent Michigan Unemployment Insurance claims, and at least 19 claims in other states. The total value of the benefits stolen by Armstrong is alleged to be more than $180,000.
“These funds should have gone to Michiganders who need help getting through this difficult time. As I have said before, those who steal unemployment benefits steal from all of us. These arrests reflect our ongoing commitment to investigating these schemes and bringing the people who commit these crimes to justice,” stated United States Attorney Schneider.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Unemployment benefits are intended to support individuals and families who are in crisis due to the economic impact of the COVID-19 pandemic,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “Fraud against the unemployment benefit insurance program has become increasingly prevalent during the pandemic. The FBI will continue to work with our state, local, and federal law enforcement partners to identify and aggressively investigate anyone who steals identities in an effort to divert these vital funds.”
“We thank the U.S. Attorney’s office for their continued efforts to protect workers and the state’s unemployment system,” said Michigan Unemployment Insurance Agency (UIA) Acting Director Liza Estlund Olson. “The UIA remains committed to working closely with all of our federal and state partners on the Michigan Unemployment Insurance Fraud Task Force to bring unemployment fraud cases to justice.”
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigations are completed, determinations will be made whether to seek felony indictments.
These cases are both being prosecuted by Assistant United States Attorney Ryan A. Particka. The investigations are being conducted jointly by agents from the Department of Labor Office of the Inspector General and the Federal Bureau of Investigation.
Tennessee Man Who Shot Charleston Police Officer Sentenced to 210 Months in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Bryan Lee Ogle II, 33, of Sevierville, Tennessee, was sentenced to 210 months in federal prison for being a felon in possession of a firearm. Ogle has an extensive criminal history. This case represents his 13th felony conviction. He also has been convicted of a total of 25 misdemeanors.
“For his 13th felony conviction, Ogle received a sentence of 210 months – more than 17 years – in federal prison,” said United States Attorney Mike Stuart. “Felons with guns pose a serious risk to public safety, especially when they have significant criminal histories. Law enforcement officers put themselves in harm’s way every single day to protect their communities from dangerous offenders like Ogle. Fortunately, when Ogle shot the Charleston police officer, the bullet was deflected by the officer’s body worn camera.”
Ogle previously admitted that he was driving a vehicle near Montgomery on February 8, 2018, when officers with the Montgomery Police Department attempted to perform a traffic stop on it. In response, Ogle pulled over momentarily but then began to flee at a high rate of speed. The pursuit reached speeds of approximately 110 mph in a residential and business area with a 35 mph speed limit. Eventually, the defendant lost control of the vehicle and struck a hillside on the side of the roadway. As officers attempted to open the driver’s side door and remove the defendant, he put the vehicle in reverse and attempted to back away. The vehicle then struck a utility pole and was immobilized. An officer then stood in front of the vehicle and gave the defendant commands to stop the vehicle. Ogle then attempted to rev the engine and move forward to strike the officer. After realizing that the vehicle would not move, the defendant exited the vehicle and attempted to flee on foot. He was caught by officers and a physical struggle ensued, with the defendant striking and biting the involved officers. The defendant also attempted to grab and remove one of the officer’s firearms during the struggle. During the struggle, the defendant indicated that he possessed a firearm and attempted to draw it. Once the defendant was secured in handcuffs, a loaded Smith and Wesson 9mm semi-automatic pistol was located. Ogle admitted that he possessed the firearm knowing that he previously had been convicted of several felony offenses in Tennessee.
After Ogle’s arrest in Montgomery, he was taken to Charleston Area Medical Center (CAMC) General Division for medical treatment. While in custody at CAMC, Ogle attempted to escape from police, with the pursuit ending in a stairwell. When police officers attempted to place Ogle in custody, he knocked a Montgomery Police officer off of the stairs causing injuries to the officer. While the officer was down, Ogle gained control of his firearm and shot a Charleston Police officer. The bullet was deflected by the officer’s body worn camera. Ogle pled guilty in Kanawha County Circuit Court to attempted murder, escape, assault in the commission of a felony and battery and was sentenced to the maximum sentence of six to 30 years in state prison.
The Montgomery 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 Jeremy B. Wolfe handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
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. 2:18-cr-00057.
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Ten Indicted for Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against members of a drug trafficking organization, charging them with fentanyl trafficking and other related offenses, United States Attorney McGregor Scott announced.
Jose Lopez-Zamora, 26; Leonardo Flores Beltran, 29; Christian Anthony Romero, 25; Joaquin Sotelo Valdez, 24; Sandro Escobedo, 32; Erika Zamora Rojo, 45; and Alejandro Tello, 22; all of Sacramento; and Jason Lee, 48, of Sparks, Nevada, and Rudi Flores, 27, of Manteca, are charged with conspiracy to distribute fentanyl, cocaine, and methamphetamine as well as either fentanyl distribution or possession with intent to distribute fentanyl. Jose Aguilar Saucedo, 22, of Sacramento, is charged with three counts of fentanyl distribution.
According to court documents, Jose Lopez-Zamora was the U.S.-based leader of a drug trafficking organization that was responsible for importing from Mexico and distributing in the United States tens of thousands of fentanyl-laced counterfeit oxycodone (M-30) pills, as well as cocaine and methamphetamine. Law enforcement seized more than 20,000 of these pills during the investigation. Wiretapped calls show awareness by at least some co-conspirators that these fentanyl pills had been responsible for multiple overdoses and overdose deaths in the area.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET-5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Aguilar Saucedo faces a maximum statutory penalty of 40 years in prison and the other defendants face a maximum statutory penalty of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Statement by Acting Attorney General Monty Wilkinson on the Pakistani Supreme Court's Ruling Relating to the Abduction and Murder of Daniel PearlRead the Press Release
Acting Attorney General Monty Wilkinson has released the following statement:
“We are deeply concerned by the Pakistani Supreme Court’s ruling affirming the acquittal of individuals convicted by a Pakistani trial court for the kidnapping and murder of Daniel Pearl. Ahmad Omar Saeed Sheikh has long been indicted in the United States and must be held accountable for his crimes. The release of those involved would be an affront to Daniel Pearl’s family, to other terrorism victims around the world, and to the cause of justice. While we remain grateful for the Pakistani government’s opposition to these acquittals on appeal, in light of the Supreme Court’s decision, the Department of Justice reiterates that the United States stands ready to take custody of Sheikh to stand trial here on the pending charges against him. He must not be permitted to evade justice for his charged role in Daniel Pearl’s abduction and murder.”
Six charged in connection with a $2.7 million Paycheck Protection Program fraud schemeRead the Press Release
ATLANTA - Six individuals, who operated as part of a larger group, have been indicted for fraudulently obtaining approximately $1.5 million in Paycheck Protection Program (PPP) loans on behalf of five businesses based in Georgia and South Carolina. Five others involved in this scheme have already pleaded guilty.
“The CARES Act, and the PPP, designated funds to aid struggling businesses during a pandemic,” said Acting U.S. Attorney Bobby L. Christine. “American businesses use these funds to help keep their companies and employees afloat during this unprecedented time. Scammers on the other hand seek an easy payday. We will continue investigating and prosecuting those who attempt to line their own pockets with these critical funds.”
"The FBI and our federal partners will make every effort to stop anyone from defrauding a federal program that provides financial assistance to companies trying to keep their heads above water during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These defendants alleged personal greed affects every tax paying citizen in this country.”
“Conspiring to use SBA program funds for personal gain and greed is unconscionable,” said SBA OIG Eastern Region Special Agent-in-Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to Acting U.S. Attorney Christine, the charges and other information presented in court: Rodericque Thompson allegedly recruited Micah Baisden, Travis Crosby, Keith Maloney, Tabronx Smith, and Thomas Wilson to apply for PPP loans on behalf of their respective businesses:
- PowerHouse Sports Academy, LLC,
- Faithful Transport Services, LLC,
- KMJ Transport, LLC,
- Market Yourself, LLC,
- Rare Breed Nation, LLC.
In exchange for a percentage of the loan proceeds, Thompson allegedly helped Baisden, Crosby, Maloney, Smith, and Wilson to obtain a $300,000 PPP loan by submitting loan applications that contained numerous false and misleading statements about their businesses. For example, each of the loan applications claimed to have 16 employees and monthly wages of $120,000. Additionally, identical fraudulent quarterly tax returns were submitted in connection with each loan application. The indictment alleges that the defendants used the PPP loan funds for impermissible purposes.
The group fraudulently obtained approximately $3 million in PPP loans. To date, authorities have recovered approximately $1,195,784.98, of the stolen money. Six were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank fraud, bank fraud, false statements to a financial institution, and money laundering. They are:
- Rodericque Thompson, 43, of Atlanta, Georgia,
- Micah K. Baisden, 30, of Doraville, Georgia,
- Travis C. Crosby, 31, of Wellford, South Carolina,
- Keith A. Maloney, Jr., 33, of Port Wentworth, Georgia,
- Tabronx W. Smith, 43, of Buford, Georgia,
- Thomas D. Wilson, 30, of Atlanta, Georgia.
The following five individuals have pleaded guilty in connection with this alleged scheme:
- Antonio D. Hosey, 38, of Atlanta, Georgia, pleaded guilty to a one-count information charging conspiracy to commit wire fraud and money laundering (20-CR-396-LMM);
- Timothy Williams, 30, of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-339-LMM);
- Stanley Dorceus, 34, of Marietta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-320-LMM);
- Kenneth L. Wright, Jr., 33, of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-285-LMM); and
- Mark A. Stewart, 54, of Greenville, South Carolina, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-319-LMM).
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case is being investigated by the FBI, the Small Business Administration Office of the Inspector General, and the Treasury Inspector General for Tax Administration (TIGTA.)
Special Assistant U.S. Attorney Diane C. Schulman of the U.S. Attorney’s Office for the Northern District of Georgia, and Trial Attorney Michael P. McCarthy of the DOJ Criminal Division’s Fraud Section are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Six Charged in Connection with a $3 Million Paycheck Protection Program Fraud SchemeRead the Press Release
Six individuals were charged in an indictment with fraudulently obtaining approximately $1.5 million in Paycheck Protection Program (PPP) loans on behalf of five businesses based in Georgia and South Carolina.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Bobby L. Christine of the Northern District of Georgia; Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office; Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region; and Special Agent in Charge Mark Maroni of the Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division made the announcement.
Rodericque Thompson, 43, of Atlanta, Georgia, Micah K. Baisden, 30, of Doraville, Georgia, Travis C. Crosby, 31, of Wellford, South Carolina, Keith A. Maloney Jr., 33, of Port Wentworth, Georgia, Tabronx W. Smith, 43, of Buford, Georgia, and Thomas D. Wilson, 30, of Atlanta, were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank fraud, bank fraud, false statements to a financial institution, and money laundering.
These individuals were allegedly part of a larger group that together have fraudulently obtained approximately $3.0 million in PPP loans. To date, authorities have recovered approximately $1,195,784.98 of the stolen money.
The indictment alleges that Thompson recruited Baisden, Crosby, Maloney, Smith, and Wilson to apply for PPP loans on behalf of their respective businesses, PowerHouse Sports Academy LLC, Faithful Transport Services LLC, KMJ Transport LLC, Market Yourself LLC, and Rare Breed Nation LLC. With Thompson’s help, Baisden, Crosby, Maloney, Smith, and Wilson each allegedly obtained a $300,000 PPP loan by submitting loan applications containing numerous false and misleading statements about their businesses. Thompson allegedly aided the applicants in submitting the fraudulent loan applications in exchange for a percentage of the loan proceeds.
The following five individuals have pleaded guilty in connection with this alleged scheme:
- Antonio D. Hosey, of Atlanta, Georgia, pleaded guilty to a one-count information charging conspiracy to commit wire fraud and money laundering(20-CR-396-LMM);
- Timothy Williams, of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements(20-CR-339-LMM);
- Stanley Dorceus, of Marietta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-320-LMM);
- Kenneth L. Wright, Jr., of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-285-LMM); and
- Mark A. Stewart, of Greenville, South Carolina, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-319-LMM).
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI Atlanta Complex Financial Crimes Task Force, SBA OIG, and the Treasury Inspector General for Tax Administration. Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Diane D. Schulman of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case.
- Antonio D. Hosey, of Atlanta, Georgia, pleaded guilty to a one-count information charging conspiracy to commit wire fraud and money laundering(20-CR-396-LMM);
Registered sex offender sent to prison for child pornographyRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Orange Grove man has been ordered to federal prison after he admitted to receiving child pornography, announced U.S. Attorney Ryan K. Patrick.
Cameron Michael Pittman pleaded guilty Sept. 9.
Today, U.S. District Judge Drew B. Tipton upwardly departed from the sentencing guidelines and ordered Pittman to serve a 204-month sentence. At the hearing, the court heard additional information including Pittman’s criminal history which detailed his prior conviction for indecency with a child. The court noted the guidelines did not adequately reflect Pittman’s character and history nor the seriousness of the offense. In imposing the sentence, the court noted the way Pittman’s actions have demonstrated his tendency to target children – the most vulnerable.
Pittman was further ordered to serve 10 years on supervised release during which time the court can impose a number of special conditions designed to protect children. He was also again ordered to register as a sex offender
The investigation began when the National Center for Missing and Exploited Children alerted authorities that images of child pornography were being uploaded through an IP address originating in Orange Grove. The investigation led to Pittman as the one using the e-mail and IP address.
Law enforcement conducted a search, at which time they seized multiple electronic devices from Pittman’s residence. A forensic examination later revealed images and videos of child pornography.
Pittman admitted to receiving the images. The large majority of the images and videos located on Pittman’s devices depicted the sexual exploitation of children under the age of 10.
At the time of his arrest, he was a registered sex offender and on probation for the 2nd degree felony offense of indecency with a child.
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 Corpus Christi Police Department Internet Crimes Against Children Task Force; Jim Wells County Sheriff’s Office and Probation Department; Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sara Popejoy prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Previously Deported Alien Indicted for Possessing FirearmRead the Press Release
FRESNO, Calif. — Today, a federal grand jury returned a two-count indictment charging Roberto Carlos Leon-Garcia, 47, of Culiacán, Sinaloa, Mexico, with being an alien in possession of a firearm and being a previously deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers arrested Leon in Merced County. Leon was in possession of a rifle and had previously been deported three times from the United States.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Merced County Sheriff's Department, the Merced Area Gang and Narcotics Enforcement Team, and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Leon faces a maximum statutory penalty of 10 years in prison on the firearm charge and two years on the immigration offense. He is also subject to a $250,000 fine as to both charges, as well as deportation upon completion of any prison sentence imposed. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
New York Man Sentenced to Prison for Money LaunderingRead the Press Release
WASHINGTON – Julien Richardson, 35, of New York, was sentenced on January 26, 2021, in U.S. District Court for the District of Columbia to 40 months of imprisonment for conspiring to commit money laundering, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office, Criminal Division.
From April 2016 through February 2018, Richardson conspired with Akeem Fields to launder money on behalf of others who had stolen from numerous victims. Richardson and Fields created aliases and shell companies, which were then used to open bank accounts. These newly created accounts were used to receive and launder fraud proceeds from a variety of schemes, including elder fraud by impersonating a relative, lottery fraud scams, and business email compromise schemes. When fraud proceeds were deposited into the accounts of Richardson and Fields, they executed an agreed-upon plan on how to distribute the fraudulent proceeds as quickly as possible to evade detection.
In the course of the conspiracy, the victims lost over $549,000. For their part in the scheme, Richardson and Fields each received 15% of the proceeds. They provided the remaining 70% to the individuals perpetrating the underlying fraud schemes.
Richardson was charged via criminal information in January 2020 and entered a guilty plea before the Honorable Amy Berman Jackson on February 27, 2020. Fields has also pled guilty in a separate case.
In addition to sentencing Richardson to 40 months in prison, the Honorable Amy Berman Jackson ordered that Richardson serve three years of supervised release and pay restitution and a forfeiture money judgment.
In announcing the sentence, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who investigated the case. They also expressed appreciation to Paralegal Specialist Amanda Rohde. Finally, they commended the work of former Assistant U.S. Attorneys David Misler and Anthony Saler, who investigated the case, and Assistant U.S. Attorney Christine Macey.