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Wednesday 2 December 2020
Delaware County Man Pleads Guilty to Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Daniel Miller, 26, of Stamford, New York, pled guilty today to two counts of transportation of child pornography announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Thomas F. Relford of the Albany Field Office of the Federal Bureau of Investigations (FBI).
Miller was previously convicted of Promoting an Obscene Sexual Performance by a Child in 2015 as well as First Degree Sexual Assault and Endangering the Welfare of a Child in 2017. As part of his guilty plea today, Miller admitted that, on August 11 and August 14 of 2017, while on probation related to his prior convictions, he uploaded images and videos of child pornography to his DropBox account using a cellphone he was not permitted to have under the terms of his probation.
Sentencing is scheduled for March 24, 2021, before Hon. Thomas J. McAvoy in Binghamton, New York, at which time Miller faces a minimum sentence of 15 years, with a maximum of up to 40 years in prison on each count, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. Miller will also be required to register as a sex offender. 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.
This case is being investigated by the Federal Bureau of Investigation (FBI), the Delaware County Sheriff’s Office, and the Delaware County Probation Office and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant U.S. Attorney Adrian S. LaRochelle.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Darknet Drug Vendor Arrested for Distributing Illicit Prescription DrugsRead the Press Release
ALEXANDRIA, Va. – A Georgia man made his initial appearance in federal court here today on charges of distributing illicit prescription drugs over the Darknet.
According to court documents, Cullen Roberts, 22, of Duluth, used the moniker “Pillpusher” to sell prescription opioids and other scheduled narcotics on a Darknet market called Yellow Brick. The FBI began investigating Roberts by conducting a series of undercover purchases of various types of prescription drugs via the Darknet.
Roberts was identified as “Pillpusher” when he was observed dropping off one of the packages addressed to the undercover agent at the U.S. Post Office in Cumming, Georgia. Agents subsequently intercepted a package sent by Roberts and discovered dozens of tablets of Tramadol. Agents also searched Roberts’s trash and recovered empty boxes that had contained oxycodone and alprazolam (brand name Xanax).
Roberts also has pending charges in Forsyth County, Georgia for making terroristic threats.
Roberts was arrested yesterday and is charged with distribution of controlled substances. If convicted, he faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force. The U.S. Postal Inspection Service Atlanta, and the FBI’s Atlanta Field Office provided significant assistance with this investigation.
Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-mj-332.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Cleveland man indicted on drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Sylvester Deangelo Walker, of Cleveland, Ohio, is facing a drug charge, U.S. Attorney Bill Powell announced.
Walker, also known as “DBOS,” 25, was indicted on one count of “Distribution of Methamphetamine.” Walker is accused of selling methamphetamine in November 2020 in Ohio County.
Walker faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Charleston Felon Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Frankie D. McNeal, 26, of Charleston, was sentenced to 37 months in federal prison for being a felon in possession of a firearm.
McNeal previously pled guilty and admitted that on October 14, 2019, he went to The Empty Glass bar in Charleston with a Glock 19 9mm pistol. Investigation into the incident revealed that McNeal got into an altercation with a female patron while at the bar. McNeal then went outside and discharged a round from the Glock through the windshield of the female’s car. Surveillance video, preliminary DNA evidence, and ballistics linked McNeal and the firearm. Police responding to the incident located McNeal in a nearby alley and recovered the Glock from a dumpster next to where McNeal was standing. The Glock was loaded, with an extended magazine. At the time of this incident, McNeal was prohibited from possessing a firearm as a result of his September 2012 felony conviction of first degree robbery in Kanawha County Circuit Court.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Kristin F. Scott and law student intern Makeia Jonese handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00099.
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Canadian Man Sentenced to 68 Months for $1.25 Million FraudRead the Press Release
SYRACUSE, NEW YORK – Ivan Chernev, age 51, and a citizen of Canada and Bulgaria, was sentenced today to 68 months in prison for a fraudulent scheme that targeted small businesses, medical providers and schools across the country.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Joseph Cronin, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service; and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea on June 26, 2020, Chernev admitted that he and two co-conspirators stole at least $1.25 million from over 1,300 small businesses, medical providers and schools by claiming that the victims owed money for online directory listings that the defendant and his co-conspirators purported to have provided through companies that they created. Chernev admitted that he and his co-conspirators sent false invoices to the victims indicating that they had ordered these online advertising services when no such services had ever been ordered or received. When the victims failed to pay the invoices, Chernev and his co-conspirators sent them fake collections notices. The invoices and collections notices directed the victims to mail checks to various addresses throughout the United States, which were simply Post Office boxes that Chernev and his co-conspirators rented in the names of their companies. The checks were then forwarded to Chernev and his co-conspirators in Quebec, Canada.
Senior United States District Judge Frederick J. Scullin, Jr. also ordered Chernev to pay restitution to his victims, pay a money judgment in the amount of $1.25 million, and serve 3 years of post-imprisonment supervised release.
This case was investigated by the United States Postal Inspection Service, Homeland Security Investigations, and the Royal Canadian Mounted Police, with assistance from the Federal Trade Commission. It was prosecuted by Assistant U.S. Attorney Katherine Kopita. Chernev was extradited from Italy to the United States in November 2019 with assistance from the Department of Justice Office of International Affairs.
California Driver Sentenced for Bringing Fentanyl, Heroin to KansasRead the Press Release
WICHITA, KAN. – A California man was sentenced today to 8 years in federal prison for transporting fentanyl and heroin to Kansas, U.S. Attorney Stephen McAllister said.
Mauricio Canas, 24, Bermuda Dunes, Calif., pleaded guilty to one count of interstate transportation in furtherance of drug trafficking and one count of using a phone in furtherance of drug trafficking. In his plea, Canas admitted he and a co-defendant were stopped in Thomas County for a traffic violation. In the car, troopers found more than 9 pounds of fentanyl and more than 8 pounds of heroin.
Investigators learned Canas was transporting the drugs from California to New York for distribution when he passed through Kansas. He used a phone to communicate with his contacts in New York.
Co-defendant Eduardo Arellano-Sanchez is set for sentencing Feb. 16.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Katie Andrusak for their work on the case.
Bowie Man Pleads Guilty to Federal Wire Fraud Charge for Stealing More Than $233,000 from His Employer and Another BusinessRead the Press Release
Greenbelt, Maryland – Howard Ware, age 42, of Bowie, Maryland, pleaded guilty today to wire fraud in connection with a fraud scheme to steal more than $233,000 from his employer and another business.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, Ware admitted that between March 18, 2018 and July 20, 2018, he stole over $233,040 from his employer and from a trucking business by submitting more than 2,118 fraudulent invoices for services that were not actually performed.
As detailed in his plea agreement, Ware was an employee of Business 1, an environmental services company that operated a facility in Upper Marlboro, Maryland, to treat contaminated material. As part of his job, Ware was supposed to coordinate the hauling of materials to and from the facility with trucking companies, including Business 2, a trucking company based in Charlotte Hall, Maryland. Business 1 frequently hired Business 2 to haul material between the Upper Marlboro treatment facility and another facility that it operated. Business 2 would hire subcontractors to haul material on Business 2’s behalf.
In early 2018, Business 1 had an exceptionally large amount of material that needed to get moved from Facility 1. Ware coordinated with Business 2 to purportedly provide trucks to assist Business 2 with the additional hauling, working as subcontractors for Business 2 in order to help Business 2 haul Business 1’s material. In fact, Ware did not have a trucking business and never intended to provide any trucks or hauling services to Business 2. Ware simply offered his services as a way to embezzle funds from Business 1, because he intended to bill Business 2 for services that Ware never provided.
Business 1 was not aware of Ware’s arrangement with Business 2. Neither Business 1 nor Business 2 were able to monitor whether Ware actually performed any of the hauling services, since Ware alone was coordinating the trucks going and coming to the Upper Marlboro facility. Between at least March 18, 2018 and July 20, 2018, Ware invoiced Business 2 more than 2,000 times for services that were never performed. Business 2, in turn, invoiced Business 1. Business 1 paid Business 2, and Business 2 paid Ware, depositing $233,040 in bank accounts that Ware controlled. Ware then used the money to pay his personal expenses.
As part of his plea agreement, Ware will be required to forfeit and to pay restitution in the amount of $233,040.
Ware faces a maximum sentence of 20 years in federal prison for wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 26, 2021 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Erin B. Pulice, who is prosecuting the federal case.
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Baltimore Man Indicted on Federal Sex Trafficking ChargesRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Ryan Odell Oliver, a/k/a Dre, Fame, and Foreign, age 38, of Baltimore, Maryland, on federal charges for conspiracy to commit sex trafficking and sex trafficking; conspiracy related to interstate prostitution and interstate transportation for prostitution; enticement to travel interstate for the purposes of prostitution; and possession of ammunition by a felon.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to the 10-count indictment, from at least July 2018 through January 2019, Oliver and a co-conspirator recruited, transported, maintained, and trafficked two adult women, Victim 1 and Victim 2, using threats, force, and coercion to cause those victims to engage in commercial sex acts. Oliver and the co-conspirator allegedly received money and other things of value by having the women engage in commercial sex acts. From January 2018 through August 2018, the indictment alleges that Oliver also caused Victim 3 to engage in commercial sex acts, for which Oliver received money and other things of value.
The indictment alleges that Oliver and the co-conspirator took sexually explicit photographs of the victims which they used in online advertising websites, and listed a telephone number where the victims could be reached for a “date” or a commercial sex act. Oliver and others used a cellular phone to field responses to the online advertisements. At some point during the conspiracy Oliver physically assaulted the victims, including forced sexual intercourse or other sex acts, striking them with his hands, choking them, and displaying a firearm to them. Oliver also allegedly burned Victim 1 with lit cigarettes. Oliver and his co-conspirator transported the women from Maryland to other states, including Pennsylvania, Delaware, Virginia, Washington, D.C., New Jersey, and South Carolina, where they were directed to meet with sex customers for prostitution. On at least one occasion the conspirators used a ride-sharing application to transport Victim 2.
According to the indictment, Oliver and others used various means to coerce the victims’ continued participation in the prostitution enterprise, including establishing “rules” governing the behavior of the victims. As to Victim 1, Oliver also established a “quota” for profit from the prostitution dates that Victim 1 had to attain, withheld food from Victim 1, and required Victim 1 to obtain a tattoo bearing Oliver’s aliases “Fame” and “Foreign.” Oliver also allegedly assaulted others in front of Victim 2 and gave unknown controlled substances to Victim 2.
The indictment also charges Oliver with sex trafficking Victim 3 and alleges that Oliver assaulted or threatened to physically assault Victim 3 to coerce her continued participation in the prostitution enterprise, including forced sexual intercourse or sexual acts, striking Victim 3 with his hands, throwing objects at her, displaying a firearm to Victim 3, and giving controlled substances to Victim 3. Oliver also allegedly transported Victim 3 to Maryland, Virginia, Delaware, Pennsylvania, and elsewhere to engage in prostitution.
Finally, the indictment alleges that Oliver illegally possessed 54 9mm cartridges and five 7.62 x 39mm cartridges, which Oliver knew he was prohibited from possessing due to a previous felony conviction.
Oliver’s co-conspirator died in Ohio in March 2019.
If convicted, Oliver faces a maximum sentence of life in federal prison for conspiracy to commit sex trafficking and a mandatory minimum of 15 years and up to life in federal prison for each count of sex trafficking; a maximum of five years in federal prison for conspiracy related to interstate prostitution; a maximum of 10 years in federal prison for each count of two counts of interstate transportation for prostitution and for each of two counts of enticement to travel interstate for the purposes of prostitution; and a maximum of 10 years in prison for being a felon in possession of ammunition. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Oliver is currently serving a state sentence for rape and will have an initial appearance on the federal charges at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation and thanked the Alexandria, Virginia Police Department and the Lexington, Kentucky Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr., Adam K. Ake, and Ayn B. Ducao, who are prosecuting the case.
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Assistant U.S. Attorneys Beth C. Boswell and Jennifer Musselwhite Become Certified Instructors of DOJ Gang Resistance Education and Training (G.R.E.A.T.) ProgramRead the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant is pleased to announce that Criminal Chief Assistant U.S. Attorney Beth C. Boswell and Assistant U.S. Attorney Jennifer Musselwhite have successfully completed and been certified as instructors of the Department of Justice Gang Resistance Education and Training (G.R.E.A.T.) Program. G.R.E.A.T. is a gang and violence prevention program built around school-based, law enforcement officer-instructed classroom curricula, intended to guide children away from delinquency, youth violence, and gang membership. The program certifies instructors around the country to give interactive educational presentations and teach an approved curriculum to 4th through 8th grade students. The G.R.E.A.T. Program began in 1991 by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and in 2004 the program administration was transferred from the ATF to the DOJ Office of Juvenile Justice and Delinquency Prevention (OJJDP).
The G.R.E.A.T. Officer Training (GOT) process is very rigorous, and requires a commitment of 10 hours of online training and 36 hours of classroom training. AUSAs Boswell and Musselwhite have demonstrated significant commitment to complete the program, and will now be available to represent the U.S. Attorney’s Office in classrooms across West Tennessee in order to proactively prevent youth violence through this certified program. AUSAs Boswell and Musselwhite also have the notable distinction of being the first federal prosecutors to become certified instructors of the G.R.E.A.T. program. They join certified instructors from 30 district and state attorneys’ offices in 11 states, including the Shelby County District Attorney General’s Office in Memphis, as well as a strong contingent from the ATF and other law enforcement officers from the United States Marshals Service (USMS), Bureau of Indian Affairs (BIA), Department of Homeland Security (DHS), and every branch of the U.S. Military.
U.S. Attorney D. Michael Dunavant said, "Having Assistant U.S. Attorneys as certified instructors of the G.R.E.A.T. program is an important part of our efforts to proactively prevent future criminal behavior and gang membership. We are proud of Beth and Jennifer for their commitment, achievement, and ground-breaking work in this important initiative, and I am confident that their leadership in the G.R.E.A.T. program will promote positive relationships between law enforcement and the community, help young people avoid delinquent behavior and bad decisions, and ultimately improve public safety in West Tennessee."
For more information about the G.R.E.A.T. program, visit: https://www.great-online.org/GREAT-Home
Pictured from left to right are: AUSA Jennifer Musselwhite, U.S. Attorney D. Michael Dunavant, and Criminal Chief AUSA Beth Boswell.Aroostook County Man Sentenced on Federal Drug ChargeRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced today in federal court in Bangor for conspiring to distribute and to possess with intent to distribute methamphetamine, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Andrew Maynard, 30, to 92 months in prison and three years of supervised release. Maynard pleaded guilty in March 2020.
According to court records, between January 2017 and August 2018, a drug trafficking organization distributed large quantities of methamphetamine in northern Maine. The organization obtained the drugs from out-of-state sources in Colorado and Arizona. The organization sent thousands of dollars in U.S. currency to those sources in order to supply its drug trafficking enterprise. Maynard aided the organization by distributing methamphetamine and collecting proceeds from the sale of the drug.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
Acting U.S. Attorney Sues Village of Airmont for Renewed Religious Discrimination Against Orthodox Jewish ResidentsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced the filing today of a lawsuit in federal district court against the Village of Airmont in Rockland County (“AIRMONT” or the “VILLAGE”) to rectify AIRMONT’S renewed efforts to discriminate against its Orthodox Jewish community. As alleged in the Complaint, AIRMONT has violated the Religious Land Use and Institutionalized Persons Act (“RLUIPA”) by imposing land use and zoning provisions that, among other things, restrict Orthodox Jewish residents’ ability to worship in private homes and prevent operation of a private religious school. The lawsuit marks the third time that the United States has sued AIRMONT since its 1991 incorporation for discriminatory treatment of Orthodox Jewish residents under both RLUIPA and the Fair Housing Act. The first two lawsuits resulted in the entry of court judgments against the VILLAGE – a judgment following a jury trial in 1996 and judgment pursuant to a court-entered consent decree in 2011.
Acting U.S. Attorney Audrey Strauss said: “As a jury found over two decades ago, the Village of Airmont was born out of a spirit of animus against a religious minority. Sadly, rather than working to overcome that shameful legacy, Airmont has flagrantly ignored the terms of a court judgment and implemented land use practices that by design and operation are again meant to infringe unlawfully on the rights of a minority religious community. Religious discrimination will not be tolerated. We will remain vigilant to ensure that the right to worship freely and without undue interference is protected for all.”
According to the Complaint filed in White Plains federal court:
Following the expiration of the last court-entered consent decree against AIRMONT in 2015, and beginning with an administration elected in 2017 on an openly anti-Hasidic platform, the VILLAGE has actively sought to prevent its Orthodox Jewish residents from operating home synagogues and a private school in conformity with their faith. AIRMONT has pursued its discriminatory agenda by, among other actions:
- Imposing a nearly two-year land use moratorium in 2017 that was motivated by a desire to prevent the growing Orthodox Jewish community from developing property rather than any legitimate governmental purpose.
- Amending the Village Zoning Code in 2018 to strike “residential place of worship” as a recognized land use category, in direct violation of the terms of the final judgment entered by the court in 1996.
- Imposing new Zoning Code requirements that place an unlawful and arbitrary limit on the gross floor area of private residences that can be used for worship, ban the use of private home mikvahs, or ritual baths, and restrict the co-congregants whom homeowners are allowed to host.
- Implementing a new, arbitrary land use application process controlled by the Village designed to impose unreasonable and unnecessary zoning requirements on Orthodox Jewish residents, drive up their costs, and ensure their applications, including minor alterations to private homes, are never approved despite years of good faith efforts to comply.
- Targeting Orthodox Jewish residents with the threat and imposition of unfounded fines for supposed zoning infractions in order to thwart and intimidate land use applicants.
RLUIPA authorizes the Department of Justice to commence an action against any local government that implements a land use regulation that places a substantial burden on religious exercise, discriminates on the basis of religion, or unreasonably limits religious assemblies, institutions, and structures. The Complaint seeks declaratory and injunctive relief against AIRMONT.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Stephen Cha-Kim is in charge of the case.
- Imposing a nearly two-year land use moratorium in 2017 that was motivated by a desire to prevent the growing Orthodox Jewish community from developing property rather than any legitimate governmental purpose.
26 Charged with Federal Drug Conspiracy and Firearms Charges in Myrtle Beach, Conway, FlorenceRead the Press Release
Myrtle Beach, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a joint team of more than 85 federal, state, and local law enforcement officers arrested 18 individuals who have been charged in federal court for their roles in an interstate drug trafficking organization that operated out of Myrtle Beach, Conway, and Florence, South Carolina. Three other defendants were already in custody on related charges. Five additional defendants remain at large.
These arrests mark the first in Operation New Optix, the latest iteration in a series of joint federal/local investigations targeting drugs and violent crime in Myrtle Beach and the greater Pee Dee region. This multi-year operation specifically targeted members of this drug trafficking organization based on their interstate importation of large quantities of cocaine and cocaine base (commonly referred to as “crack cocaine”) into South Carolina, and their use of firearms in furtherance of their drug trafficking crimes.
“As this office has made clear time and again, violent criminals will find no safe harbor in South Carolina,” said U.S. Attorney McCoy. “More than 80 federal, state, and local agents stepped into harm’s way this morning. This type of selflessness and cooperation is why we have been successful in charging hundreds of individuals for major drug trafficking crimes or serious firearms offenses in the last several months alone. These types of operations specifically target entire criminal organizations, which in turn allow us to protect communities in the Pee Dee region and across South Carolina.”
“Citizens in Myrtle Beach, Conway and Florence are safer when violent cocaine traffickers can no longer peddle poison in their communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “While the charges in this case speak for themselves, dangerous drug trafficking organizations using firearms to protect their operations needlessly endanger the public. DEA and its law enforcement partners are committed to protecting communities from violent drug traffickers.”
“The Florence County Sheriff’s Office has a long and proud history of working with state, local and federal partners to keep illegal narcotics off of our streets and we will continue to support those efforts,” said Florence County Sheriff Billy Barnes. “We are pleased to have been a part of this most successful operation.”
“I want to thank our officers and our law enforcement partners for their hard work,” said Myrtle Beach Police Chief Amy Prock. “Here in Myrtle Beach, the local, state and federal partners are committed to keeping our community safe. This case demonstrates that commitment and the strength of the partnerships we have as a law enforcement community.”
The following defendants are in custody:
- Shackeel Coleman, 29, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine. This charge carries a potential penalty of 10 years to Life imprisonment.
- Kimo Felton, 41, of Conway is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine. This charge carries a potential penalty of 10 years to Life imprisonment.
- Harry Bellamy, 41, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine, 28 grams of cocaine base, and a quantity of marijuana. This charge carries a potential penalty of 10 years to Life imprisonment.
- Steven Jeffcoat, 30, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine and 28 grams of cocaine base. This charge carries a potential penalty of 10 years to Life imprisonment.
- Lenard Hemingway, 53, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Yenitza Coleman, 27, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Jasamine Mitchell, 32, of Conway is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Timothy McCray, 31, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment
- Henry Boyd, 39, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Timothy Lee, 27, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Jacqueline Strickland, 59, of Conway is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Venson Strickland, 29, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- James Graham, 30, of Conway is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
- Alonzo Lee Pierce, 37, of Galivants Ferry is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Gary Jackson, 30, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Alton Brown, 41, of Florence is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of cocaine base. This charge carries a potential penalty of up to 20 years imprisonment.
- Joshua Darby, 32, of Murrells Inlet is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of cocaine base. This charge carries a potential penalty of up to 20 years imprisonment.
- Travis Rogers, 40, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Kevin Linnen, 33, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
- Mario Williams, 41, of Florence is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of marijuana. This charge carries a potential penalty of up to 20 years imprisonment.
- Robert Hooker, 40, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
The following defendants are still at large:
- Bradley Adams, 26, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Brandon Prawl, 35, of Conway is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine and 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Quentin Smith, 29, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime which carries a potential penalty of 5 years consecutive to any other penalty imposed.
- Curtis McArthur, 35, of Longs is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
- Ernest Smalls Jr, 38, of Little River is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
This operation builds on years of successful efforts to target violent crime in the area. In 2017, Operation Silver Sunset targeted 29 associates of the Billy Bloods street gang, a subset of the United Blood Nation. In 2018, Operation Rise and Shine targeted 33 associates of G-Shine/SMG, another subset of the Bloods. Earlier in 2020, Operation Broken Branch targeted 31 members of a drug trafficking organization in the Cedar Branch area of Horry County. Today’s arrests mark the latest, but not the last, investigation targeting violent crime in this area.
During the course of this investigation, agents interdicted multiple kilograms of cocaine before it was distributed. Agents also seized additional drugs and firearms in connection with today’s arrests.
Agents of the Florence Resident Office of the Drug Enforcement Administration (DEA) led this investigation with significant participation from the following agencies: Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Police Department, Florence County Sheriff’s Office – Special Operations Group, Georgetown County Sheriff’s Office, 15th Circuit Drug Enforcement Unit, Conway Police Department, and Horry County Sheriff’s Office.
Assistant United States Attorney Everett McMillian is prosecuting the case in coordination with the 15th Circuit Solicitor’s Office.
Operation New Optix is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Tuesday 1 December 2020
Wood County man indicted for violations against a minorRead the Press Release
WHEELING, WEST VIRGINIA – Steven Lockhart, of Davisville, West Virginia, is facing charges involving a minor, U.S. Attorney Bill Powell announced.
Lockhart, 56, was indicted on one count of “Attempted Coercion and Enticement of a Minor” and one count of “Attempted Transfer of Obscene Materials to a Minor.” Lockhart is accused of using his phone to entice a minor in Harrison County to engage in sexual activity in April 2020. He is also accused of sending obscene material on the phone to a minor under the age of 16.
Lockhart faces at least 10 years and up to life incarceration and a fine of up to $250,000 for the coercion count and faces up to 10 years of incarceration and a fine of up to $250,000 for the obscene material count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling woman indicted for failing to registerRead the Press Release
WHEELING, WEST VIRGINIA – Bobbi Jo Starry, of Wheeling, West Virginia, is facing a sex offender registry charge, U.S. Attorney Bill Powell announced.
Starry, 55, was indicted on one count of “Failure to Register.” Starry, who is required to register as a sex offender, is accused of failing to update her registry from January to August 2020 in the Northern District of West Virginia and elsewhere.
Starry faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Devon Alexander Bertram, of Wheeling, West Virginia, is facing drug charges, U.S. Attorney Bill Powell announced.
Bertram, also known as “VON,” 31, was indicted on two counts of “Distribution of Cocaine Base within 1000 Feet of a Protected Location.” Bertram is accused of selling cocaine base or “crack” near West Virginia Northern Community College in April 2019 and near The Linsly School in March 2020 in Ohio County.
Walker faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Swiss Dual National Extradited to United States in Connection with Investment and Bank Fraud SchemesRead the Press Release
WASHINGTON – Lawrence Paul Schmidt, aka Lawrence Schmid, 60, formerly of the District of Columbia, has been extradited from the United Kingdom to stand trial in the District of Columbia on bank fraud and money laundering charges related to an investment fraud scheme. The announcement was made by Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
Schmidt has been detained since his arrest on September 30, 2020 in the United Kingdom. He made his initial appearance at 2:00 p.m. today in federal court in the District of Columbia, where he was indicted on November 1, 2018. Schmidt faces two counts of bank fraud, two counts of wire fraud, and six counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to the indictment, between in or about 2008, Schmidt created several investment entities, including Commercial Equity Partners, Ltd. (“CEP”) and FutureGen Company (“FutureGen”), through which he solicited investors for real estate, mortgage trust deed notes, tax lien notes, and secured commercial mortgage notes. Between in or about June 2008 and April 2014, Schmidt raised over $22 million from approximately 200 investors in the United States and elsewhere. Funds raised from investors were comingled and transferred between and amongst the investment funds to cover whichever expenses were due at the time. Of the over $22 million raised from investors, less than $11 million was placed into investment products. Schmidt instead used new investor funds to repay earlier investors, to pay himself approximately $1.4 million in salary, and to pay $1.3 million in personal expenses, including automobile expenses, mortgage and rent payments for multiple residences, and sports ticket purchases.
As further alleged in the indictment, by January 2014, Schmidt’s investment funds had insufficient funds to pay investors and expenses. Schmidt deposited fraudulent and forged checks into the bank accounts of his investment funds and transferred those funds to the bank accounts of related investment funds in order to pay investors and expenses. Schmidt also misled investors concerning their investments. As the scheme continued to unravel, on April 10, 2014, Schmidt boarded a one-way flight from the United States to London where he remained until his arrest and extradition.
On June 1, 2014, the U.S. Securities and Exchange Commission (“SEC”) filed suit in U.S. District Court for the District of Columbia, in Civil Action No. 14-cv-1002 (CRC), against Schmidt, CEP, FutureGen, and the entities Schmidt controlled. The court entered final judgment against Schmidt on October 3, 2018, and entered final judgment against CEP, FutureGen, and the additional entities that Schmidt controlled on March 11, 2019.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation was conducted by the FBI’s Washington Field Office Criminal Division. The Office of International Affairs in the Justice Department’s Criminal Division, the United States Marshals Service, and the government of the United Kingdom provided substantial assistance in securing Schmidt’s arrest and extradition.
The U.S. Securities and Exchange Commission also provided substantial assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
U.S. Attorney Wrigley Announces a Fort Totten Man was sentenced for Sexual Abuse of an Incapacitated PersonRead the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that U.S. District Court Chief Judge Peter D. Welte sentenced Paul Henry Cavanaugh, age 55, from Fort Totten, ND, to serve 21 years and 8 months in federal prison, followed by supervised release for life and ordered to pay $100 special assessment to the Crime Victims’ Fund for the offense of Sexual Abuse of an Incapacitated Victim. On August 14, 2020, a jury found Cavanaugh guilty after a four-day trial in Fargo, the first federal criminal jury trial in North Dakota during the novel coronavirus pandemic.
This case came to the attention of law enforcement in March 2018, when the victim, an 18-year-old adult female, reported that while at Cavanaugh’s residence on the Spirit Lake Indian Reservation, he gave her alcohol and she consumed it and eventually feel asleep. The victim later woke up and discovered Cavanaugh was physically forcing her to engage in a sexual act while she was incapacitated.
This case was investigated by the Bureau of Indian Affairs and the North Dakota Crime Laboratory and was prosecuted by Assistant United States Attorneys Jacob T. Rodenbiker and Lori H. Conroy.
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U.s. Attorney Kurt Alme and the Confederated Salish and Kootenai Tribes Launch Pilot Project to Address Missing and Murdered Indigenous PersonsRead the Press Release
PABLO — Today, at a council meeting of the Confederated Salish and Kootenai Tribes of the Flathead Indian Reservation (CSKT), U.S. Attorney Kurt Alme and the CSKT Council launched a pilot project to develop a Tribal Community Response Plan (TCRP), in accordance with Attorney General William P. Barr’s Missing and Murdered Indigenous Persons (MMIP) Initiative, and the President’s Operation Lady Justice Task Force, and in furtherance of the goals of the recently-enacted Savanna’s Act.
The goal of a TCRP is to improve responses to emergent American Indian and Alaska Native (AI/AN) missing person cases by establishing a collaborative response from Tribal governments, law enforcement, and other partners through culturally appropriate guidelines. The U.S. Department of Justice and other federal agencies developed draft guides to assist in developing plans with input from tribal leaders, tribal law enforcement and their communities.
The council meeting was also attended by representatives from the Federal Bureau of Investigation, the Bureau of Indian Affairs, local law enforcement and community organizations.
The goal is to complete this TCRP by Dec. 11 and when finished, the TCRP will be the first one completed in the country. Lessons learned from the pilot project will be used to improve the draft guides for developing a TCRP before they are released to Tribes across the country.
“I am honored to partner with Chairwoman Fyant and the Confederated Salish and Kootenai Tribes to launch this important pilot project in Montana.” U.S. Attorney Alme said. “Since Attorney General Barr announced the MMIP Initiative here last year, we have been working hard to complete draft guides to assist our joint efforts to develop a Tribal Community Response Plan specific to the needs, resources and culture of the Flathead Community. In spite of significant challenges brought on by COVID-19, we are pleased to be back almost a year later ready to complete this important step in addressing MMIP cases. I want to thank all of the partners who have agreed to be a part of this process. After these pilot projects are completed and the guides are finalized, Savanna’s Act directs our office to continue working with partners such as our other Tribal governments to ensure guidelines are developed across the Montana.”
”Our community worked hard to elevate this issue so it is encouraging to see the effort continue to develop and grow,” said Chairwoman Shelly R. Fyant, Confederated Salish and Kootenai Tribes. “We know how important partnerships are and we will continue to collaborate with stakeholders in our community to implement this plan. We remain committed to working hard and applying resources to ensure our people receive justice.”
“The Montana Missing Indigenous Persons Task Force is excited to have the Confederated Salish & Kootenai Tribes be among the first pilot projects for development of Tribal Community Response Plans. We look forward to working with the U.S. Attorney’s Office, our Tribal partners, and local law enforcement on development of the plans,” said Melissa Schlichting, presiding officer of the Montana Missing Indigenous Persons Task Force.
Working group meetings with representatives from the U.S. Attorney’s Office, the CSKT, law enforcement (including the Flathead Tribal Police Department, Lake County Sheriff’s Office, Missoula County Sheriff’s Office, Flathead County Sheriff’s Office, Sanders County Sheriff’s Office, Polson Police Department, and Ronan Police Department) and community organizations will begin next week to develop the TCRP. The TCRP will include guidelines for law enforcement agencies, victim services, community involvement, and media and public communication.
Confederated Salish and Kootenai Tribe’s Tribal Council passed a resolution establishing a work group to address the issue of missing and murdered indigenous people. CSKT developed their own Missing Persons Protocol with Tribal Law and Order and authorized the development of a social media and tip line. CSKT also hosted a training on human trafficking and its correlation to MMIP and held numerous community meetings on safety awareness. An Arlee Youth Group was formed and has hosted Missing and Murdered Indigenous Women presentations on student safety awareness. The Council also voted unanimously to increase the reward money to $11,000 for any information that leads to solving the case of missing CSKT tribal member Jermain Charlo, who went missing in 2018. The Council helps support a Jermain Charlo billboard near Missoula.
For the past two years, the U.S. Attorney’s Office for Montana has worked with Tribal government partners, the Montana Department of Justice, the Montana Missing Indigenous Persons (MIP) Task Force, the FBI and the BIA to bring awareness to and address this important issue. It hired the country’s first MMIP Coordinator, who has helped coordinate responses to missing person cases; held two statewide trainings for law enforcement on how to use missing person databases and alerts (such as Amber Alerts), and for the public on what to do when a loved one goes missing; brought trainers from the National Missing and Unidentified Persons System (NAMUS) to all seven Montana reservations to train community members on how to use that system when a loved one goes missing; participated in the efforts of the Montana MIP Task Force, which have included ensuring that all missing AI/AN persons have been entered into the Montana Missing Persons Clearinghouse to ensure they are being looked for; and developed a public service announcement to inform the public about what to do when a loved one goes missing.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.###
Tyler County man indicted for tax violationsRead the Press Release
WHEELING, WEST VIRGINIA – Roger Lee Stevens, of Middlebourne, West Virginia, is facing tax fraud charges, U.S. Attorney Bill Powell announced.
Stevens, 62, was indicted on one count of “Corrupt Endeavor to Obstruct or Impede the Due Administration of the Internal Revenue Laws,” one count of “Failure to Pay Income Tax,” and one count of “Failure to File Income Tax Return.” Stevens is accused of failing to pay income taxes from 2005 to 2009. The IRS issued a notice to Stevens, and later to Stevens’ bank, that his assets would be levied to pay the debt owed to the IRS. As the IRS began directing the bank to turn over funds in Stevens’ account, it is alleged that Stevens began removing funds from the account to impede the IRS from collecting the $22,066 debt. Stevens is also accused of failing to pay income tax for 2016, as well as failing to file an income tax return for 2018.
Stevens faces up to three years of incarceration and a fine of up to $250,000 for the corruption count and faces up to one year of incarceration and a fine of up to $100,000 for the other two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The IRS investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two New Jersey Men Charged with Theft of $6 Million in Postage for Online E-Commerce BusinessRead the Press Release
NEWARK, N.J. – Two New Jersey men were charged with theft of government property and fraudulently altering United States Postal Service (USPS) postage stamps, U.S. Attorney Craig Carpenito announced today.
Jack Koch a/k/a/ “Ismail Yilmaz,”44, of Elmwood Park, New Jersey, and Steven Koch, a/k/a “Selim Memis,” 43, of Pompton Lakes, New Jersey, are each charged by complaint with one count of theft of government funds and one count of postage stamp fraud. Both defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.
According to the documents filed in this case and statements made in court:
Jack Koch and Stephen Koch, owners of a high volume e-commerce Amazon seller, Fresh N Clear LLC (Fresh N Clear), altered postage labels in a manner designed to benefit their business, causing losses in revenue to USPS in excess of $6 million.
The defendants purchased Flat Rate Envelope postage labels meant for USPS-produced compact envelopes, and altered those labels to send their merchandise in larger boxes at discounted flat rates. The Kochs were able to perpetrate the fraud by removing the required USPS visual endorsement “FLAT RATE ENV” from the postage label. Unlike other mail pieces, whose labels need not show the postage paid in a readable format, USPS policy requires the visual endorsement “FLAT RATE ENV” to appear on all mail pieces sent using the “Flat Rate Envelope” discounted rate, allowing USPS employees to determine whether the appropriate postage was, in fact, paid, and that each mail piece sent using that discounted rate does, in fact, weigh 70 pounds or less and fit into the special USPS compact envelope.
Between January 2020 and September 2020, the Kochs caused Fresh N Clear to purchase 240,471 USPS Priority Mail postage labels – almost all for Flat Rate Envelopes. They altered the postage labels in order to send large household items that would not ordinarily fit into a Flat Rate Envelope (such as cases of bottled water, laundry detergent, and cases of soda) at the discounted flat rate.
Theft of government property carries a maximum penalty of 10 years; postage stamp fraud carries a maximum of five years. Both offenses also carry a maximum fine $250,000, or twice the gain derived from the offense or loss caused by the offense, whichever is greater.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Kanawha County Men Plead Guilty to Federal Drug ChargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that two Kanawha County men pled guilty to federal drug charges before United States District Judge Joseph R. Goodwin.
“We’re working tirelessly with our law enforcement partners to root out drug dealers from every corner of Kanawha County and throughout southern West Virginia,” said United States Attorney Mike Stuart. “Rose and Davis join the long list of defendants we’ve convicted for peddling their poisons.”
Karzell Rose, 29, of St. Albans, pled guilty to distribution of heroin. Rose admitted that on January 23, 2020, he sold approximately 3 grams of heroin to a confidential informant at his residence in St. Albans. On January 28, 2020, law enforcement executed a search warrant at that residence and located an additional amount of heroin, digital scales and two guns. Rose admitted that he intended to distribute the heroin. Rose faces 20 years in prison when sentenced on February 24, 2021. The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Monica Coleman is handling the prosecution.
In a separate case, Justin Lee Davis, 27, of Belle, pled guilty to distribution of methamphetamine. Davis admitted that he sold approximately four ounces of methamphetamine to a confidential informant in the parking lot of a retail establishment near Belle on February 22, 2019. Law enforcement officers were able to observe Davis meeting with the confidential informant during the transaction. Following the transaction, Davis was followed back to his residence. A search warrant was executed at that residence four days later, and Davis was located in a bedroom along with approximately 2.4 pounds of additional methamphetamine, digital scales, and packaging materials. Davis faces up to life in prison when he is sentenced on February 24, 2021. The Drug Enforcement Administration (DEA) conducted the investigation. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:20-cr-00082 (Rose) and 2:20-cr-00164 (Davis).
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Two Charged with Violating Federal Narcotics and Firearms LawsRead the Press Release
JOHNSTOWN, Pa. – Residents of Johnstown, Pa., and Washington, Pa. were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Isiaha Waulk, 24, formerly of Johnstown, Pa., and Derik Carothers, 25, formerly of Washington, Pa., as defendants.
According to the Indictment presented to the court, on or about October 20, 2019, Waulk and Carothers conspired to distribute and possessed with intent to distribute a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack. Further, Waulk and Carothers were found in found in possession of numerous firearms and ammunition. On November 4, 2013, Waulk was convicted in the Cambria County Court of Common Pleas of aggravated assault, and on January 16, 2015 of robbery and aggravated assault, which are crimes punishable by imprisonment for a term exceeding one year. On November 7, 2013, Carothers was convicted in the Cambria County Court of Common Pleas of burglary and carrying a firearm without a license, and on March 20, 2017 of carrying a firearm without a license, also crimes punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence of 20 years to life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulsa Man Sentenced for His Role in a Transnational Heroin Trafficking OperationRead the Press Release
A Tulsa man was sentenced today in federal court for his role in a heroin trafficking operation with ties to Mexico’s New Generation Cartel, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Alphonso Caldwell, 27, of Tulsa, to 120 months in prison to be followed by five years of supervised release.
“One of the things I’m thankful for this month is that another major player in a heroin trafficking operation has been held accountable in a court of law. Alphonso Caldwell was sentenced to 10 years in federal prison,” said U.S. Attorney Trent Shores. “Caldwell was one of 30 defendants in an international heroin trafficking scheme that we took down as part of Operation Smack Dragon. I am proud of our multijurisdictional team and their combined efforts to confront this criminal organization. Kudos to the DEA, Homeland Security Investigations, IRS Criminal Investigation, Tulsa Police Department, and the Oklahoma Attorney General’s Office. I would also be remiss if I didn’t acknowledge the hard work and leadership of Assistant U.S. Attorney Joel-lyn McCormick, chief of my Organized Crime Drug Enforcement Task Force. Job well done by all.”
“Drug traffickers and their illegal activity pose a significant threat to the safety of the general public and all of our communities,” said Ryan L. Spradlin, special agent in charge HSI Dallas. “One of our main priorities is to dismantle any transnational criminal organization that attempts to profit from manufacturing, smuggling, purchasing, or distribution of these illicit drugs that hinder public safety. We are committed to working with our federal and state law enforcement partners to keep illegal substances out of our communities and investigating the organizations responsible.”
In his plea agreement, Caldwell admitted that from November 2017 to June 2019 he possessed with intent to distribute and to distribute heroin. Caldwell stated that he purchased ½ kilogram to 1 kilogram of heroin multiple times per week from both Jose Garcia and Edson Garcia-Velasquez. Caldwell purchased the heroin and redistributed it to third parties who redistributed the heroin to others. He relied on customers’ payments to purchase additional heroin.
Caldwell will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, IRS Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force for the Northern District of Oklahoma.
Tioga County Man Pleads Guilty to Attempted Online Enticement of MinorRead the Press Release
BINGHAMTON, NEW YORK - Jacob Gorman, age 39, of Waverly, New York, pled guilty today to attempted online enticement of a minor. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea Gorman admitted that between August 11, 2020 and August 27, 2020, he exchanged text messages with an undercover officer he believed was the mother of a 9-year old girl. In those messages, Gorman expressed an interest in meeting the child and engaging in sex acts with her. Gorman negotiated a price he was willing to pay to engage in sex acts with the child and on August 27, 2020, drove to a pre-determined location in Broome County to meet and have sex with the child. Gorman was then encountered by law enforcement and arrested.
As a result of his conviction, Gorman faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, a maximum fine of $250,000, and a term of supervised release of between five years and life. He will also be required to register as a sex offender. 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. Sentencing is scheduled for March 23, 2021 before Senior United States District Judge Thomas J. McAvoy.
This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Defendants Charged in Connection with Bronx Home Invasion Shooting and RobberyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John B. DeVito, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced charges against SHAWN GARCIA, a/k/a “Ralph Porter,” OSCAR RIOS, a/k/a “Oski,” and SUTHA TAYLOR, a/k/a “Sutha Colon,” (collectively, the “defendants”), in connection with their participation in an August 29, 2020 armed home invasion robbery in the Bronx, New York. GARCIA and TAYLOR were arrested earlier this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Katharine H. Parker. RIOS remains at large.
Acting U.S. Attorney Audrey Strauss stated: “Oscar Rios and his co-defendants allegedly planned and executed a violent robbery, during which one victim was shot and another had her head covered with a garment while the alleged perpetrators coerced her to divulge the location of the other victim’s cash. The three ultimately absconded with a safe containing cash, a cell phone, and marijuana. I thank the ATF and NYPD for their assistance in bringing these alleged brazen and reckless actors to justice."
According to the allegations in the Complaint charging GARCIA, RIOS, and TAYLOR, unsealed today in Manhattan federal court:[1]
On or about August 29, 2020, the defendants participated in an armed home invasion robbery of an apartment in the Bronx, New York. Shortly before the robbery took place, defendant OSCAR RIOS, a/k/a “Oski,” coordinated with certain other co-conspirators (referred to in the Complaint as “CC-1” and “CC-2”) to cause a resident of the Apartment (“Victim-1”) to leave the Apartment, under the guise that CC-1 wanted to buy liquor from Victim-1. Once RIOS learned from CC-2 that Victim-1 was about to exit the Apartment, RIOS informed defendants SHAWN GARCIA, a/k/a “Ralph Porter,” and SUTHA TAYLOR, a/k/a “Sutha Colon,” via text message.
When Victim-1 opened the door to the Apartment, GARCIA, TAYLOR, and a third co-conspirator (“CC-3”) ran into the Apartment and physically assaulted Victim-1, including by striking Victim-1 in the head several times with at least one firearm. While the assault on Victim-1 was in progress, another resident of the Apartment (“Victim-2”) was thrown into the bathroom and ordered to remain there. Victim-1 was then shot one time. After the shooting, one of the robbers placed a dark garment over Victim-2’s head and demanded to know where Victim-1 kept his safe, which contained proceeds from Victim-1’s marijuana sales. Meanwhile, RIOS, who had gone to a nearby building, texted GARCIA and TAYLOR to inform them that area was clear for them to flee. GARCIA, TAYLOR, and CC-3 then fled the Apartment, stealing the safe with cash proceeds from Victim-1’s marijuana sales, as well as other items found in the Apartment, including cash proceeds from Victim-1’s liquor sales, Victim-1’s cellphone, and marijuana belonging to Victim-1.
As a result of the assault and shooting, Victim-1 was hospitalized for several days.
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GARCIA, RIOS, and TAYLOR are each charged with one count of conspiracy to commit Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951, which carries a maximum sentence of 20 years in prison; and one count of substantive Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951, which carries a maximum sentence of 20 years in prison. GARCIA and TAYLOR are also each charged with one count of carrying and discharging a firearm during and in relation to a crime of violence, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
Ms. Strauss praised the outstanding investigative work of the ATF and NYPD, in particular, the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which comprises agents and officers of the ATF and the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney David J. Robles is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Stillwater Man Sentenced to Serve More Than Nine Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
OKLAHOMA CITY – ISHMAEL FARRAKAN MUHAMMAD, a.k.a. Mike Rodgers, a.k.a. Dewayne Robinson, 32, of Stillwater, has been sentenced to serve 110 months in federal prison for illegally possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Timothy J. Downing.
On May 4, 2018, Muhammad was arrested while in possession of a .22 caliber handgun and a sawed-off shotgun, each with the serial number obstructed, in addition to ammunition. On September 3, 2019, a federal grand jury returned a three-count Indictment that alleged illegal possession of firearms, illegal possession of an unregistered firearm, and illegal possession of ammunition. On November 1, 2019, Muhammad pled guilty to Count 1 of the Indictment that charged him with possession the .22 caliber handgun while being a convicted felon.
On November 30, 2020, U.S. District Judge Patrick R. Wyrick sentenced Muhammad to serve 110 months in federal prison, followed by three years of supervised release.
This case is the result of investigations by the FBI, ATF and the Stillwater Police Department. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
St. Croix Man Apprehended with Guns, Ammunition, Drugs and Money Pleads Guilty to Federal Firearms ChargeRead the Press Release
St. Thomas, USVI – Rakem Hendrickson, 28, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., in District Court and entered a guilty plea to the charge of Use of a Firearm During a Drug Trafficking Crime, United States Attorney Gretchen C.F. Shappert announced.
This offense carries a possible sentence of incarceration for a minimum of 5 years, a maximum fine of up to $250,000 dollars, and a term of supervised release up to 5 years. Sentencing is set for April 14, 2021.
According to court documents, on February 16, 2018, the Virgin Islands Police Department (VIPD) received a tip from a concerned citizen that Hendrickson was selling drugs from his Jeep Wrangler, that Hendrickson was known to carry a firearm, and that he routinely parked the Jeep in the vicinity of Dynasty (Paul’s) Grocery Store. VIPD officers set up surveillance at that location and thereafter observed Hendrickson, park and exit his vehicle. Officers observed drug paraphernalia consisting of a clear plastic bag containing multiple vials in plain view, located in the back of Hendrickson’s Jeep. Shortly thereafter, officers obtained and executed a search warrant. As a result, officers located and confiscated a loaded Glock 22 Austria handgun, 2 additional magazines, 82 rounds of ammunition, approximately 133 grams of marijuana, drug paraphernalia in the form of 94 plastic vials, a digital scale, 2 mason jars, plastic baggies, and $2,584 cash. The foregoing occurred within 1,000 feet of the Lew Muckle Elementary School.
The case was investigated by the Virgin Islands Police Department and Homeland Security Investigations. The DEA Southeast Laboratory in Miami analyzed the marijuana. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Singaporean Shipping Company Fined $12m in a Multi-District Case for Concealing Illegal Discharges of Oily Water and Garbage and a Hazardous ConditionRead the Press Release
New Bern – Pacific Carriers Limited (“PCL”), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, Obstruction of Justice, and for a Failure to Notify the U.S. Coast Guard of a Hazardous Condition on the Motor Vessel (“M/V”) Pac Antares.
PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana. PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on September 29, 2019. PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.
PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina. The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation. In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000.
“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel. It’s also essential that we demand the safe operation of ships in our ports.”
United States Attorney Robert J. Higdon, Jr. said: “The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast. That coastline is among the great natural treasures of this country and we are committed to its protection. To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”
“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”
“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander. “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”
According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares. On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina. A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard was sent that information and conducted an inspection and examination. Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator.
Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system. Examiners discovered the sewage system was contaminated with oil. Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship. These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection. The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Singaporean Shipping Company Fined $12 Million in a Multi-District Case for Concealing Illegal Discharges of Oily Water and Garbage and a Hazardous ConditionRead the Press Release
WASHINGTON – Pacific Carriers Limited (PCL), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, obstruction of justice, and for a failure to notify the U.S. Coast Guard of a hazardous condition on the Motor Vessel (M/V) Pac Antares.
PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana. PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on Sept. 29, 2019. PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.
PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina. The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation. In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000.
“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel. It’s also essential that we demand the safe operation of ships in our ports.”
“The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast,” said U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina. “That coastline is among the great natural treasures of this country and we are committed to its protection. To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”
“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”
“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander. “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”
According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares. On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina. A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard was sent that information and conducted an inspection and examination. Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator.
Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system. Examiners discovered the sewage system was contaminated with oil. Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship. These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection. The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Singaporean Shipping Company Fined $12 Million in a Multi-District Case for Concealing Illegal Discharges of Oily Water and Garbage and a Hazardous ConditionRead the Press Release
Pacific Carriers Limited (PCL), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, obstruction of justice, and for a failure to notify the U.S. Coast Guard of a hazardous condition on the Motor Vessel (M/V) Pac Antares.
PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana. PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on Sept. 29, 2019. PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.
PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina. The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation. In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000.
“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel. It’s also essential that we demand the safe operation of ships in our ports.”
“The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast,” said U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina. “That coastline is among the great natural treasures of this country and we are committed to its protection. To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”
“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”
“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander. “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”
According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares. On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina. A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard was sent that information and conducted an inspection and examination. Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator.
Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system. Examiners discovered the sewage system was contaminated with oil. Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship. These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection. The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Serial Fraudster Pleads Guilty to Federal Charges for Conspiring to Steal Mail, Stealing Benefits Under the CARES Act, and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Nicholas Milano White, age 29, of Baltimore, Maryland, pleaded guilty today to the federal charges of conspiracy to steal mail, emergency benefits fraud, and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“It is crucial that funds available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act go to those who have been hardest hit by this global pandemic,” said U.S. Attorney Robert K. Hur. “My office and the entire law enforcement community are committed to bringing to justice fraudsters who are stealing taxpayer funds and preying on citizens during this unprecedented public health crisis to personally benefit by stealing victims’ money and personal identifying information.”
According to his guilty plea, between October 2019 and June 2020, White conspired to and engaged in various fraud schemes, theft of mail, counterfeiting of U.S. currency, production and possession of false identification documents and credit profiles, unemployment insurance fraud, and illegal possession of firearms and ammunition.
White admits that on October 11, 2019, he submitted a fraudulent application for financing to purchase a 2016 Maserati Ghibli vehicle. The credit application listed a false social security number for White and false employment and income information for White and his co-applicant. White also arranged to have fake paystubs created for attachment to the credit application as verification of his income. As a result, White secured financing of $30,227 to purchase the vehicle.
As detailed in his plea agreement, in February and March 2020, White devised schemes to defraud banks and to steal money from individuals by negotiating checks stolen from the United States mail. White and his co-conspirators, at White’s direction, stole mail from collection boxes in the Baltimore area. White then altered the stolen checks and deposited them into bank accounts he controlled and that had been opened for that purpose. On March 8, 2020, law enforcement was able to monitor the movements of White and his co-conspirators through a GPS tracking device installed in a parcel stolen from the collection box at the Rosedale Post Office in Baltimore County. The conspirators’ movements were tracked to several other post offices and collection boxes in Baltimore County where they continued to steal mail. When Baltimore County Police officers approached, the conspirators fled in a white sedan registered to one of White’s co-conspirators. Officers located the van in a residential area of Pikesville, Maryland. The vehicle was unoccupied and gloves, trash bags, and approximately 358 pieces of unprocessed U.S. mail were on the ground outside the vehicle. Law enforcement found and arrested White at a nearby location with a co-conspirator and seized cell phones and USB storage devices from White. White was released from custody following his arrest. There were at least 136 postal customers whose mail was stolen. Approximately 48 victims reported that their stolen mail contained bank checks or other financial instruments totaling $48,938 in value.
A search warrant was subsequently executed on the cell phones and other electronic media seized from White. The cell phones contained text messages about White creating fake credit profiles and false identification documents for himself and others, and conducting fraudulent bank transactions, as well as the personal identifying information (PII) of identity theft victims. White’s phones also contained credit card “dumps,” lists of sensitive information pertaining to at least 1,100 credit cards issued to other persons that could be used to create counterfeit copies of the cards. White had downloaded these lists from websites that illegally marketed and distributed them. White’s cell phones also revealed Internet searches for business and personal check refills, a credit card dump website and a personal data broker website, and photos of numerous stolen checks, among other things. Law enforcement also recovered text messages in which White negotiated prices for the purchase of multiple firearms. A search of White’s USB devices recovered images of U.S. currency in various denominations, which White admitted were used and/or intended to produce counterfeit U.S. currency. In at least one exchange of text messages, White attempted to sell $5,000 of counterfeit currency to another person, at one point claiming that he had purchased firearms with counterfeit currency.
Following White’s release from custody in March 2020, he continued to engage in fraud by submitting a false claim for Florida state unemployment benefits through the Internet in the name of a real person, using the victim’s personal information, but providing a false mailing address in Baltimore. As a result of this false application, the Florida Department of Economic Opportunity (DEO) issued at least two checks payable to the victim totaling $875 and mailed them to the Baltimore address. The victim, a resident of Florida was later contacted by Florida DEO and confirmed that the claim had been submitted without her knowledge or permission.
In addition, on a date no earlier than May 1, 2020, White unlawfully acquired an Economic Impact Payment (EIP) check issued by the U.S. Treasury and authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The EIP check, in the amount of $2,900, was intended for the benefit of M.H. and M.I., a married couple residing in Maryland. The EIP check had been placed in the mail and addressed to the former home address of the couple in Baltimore. On June 23, 2020, White fraudulently negotiated the stolen check by endorsing it with the forged signature of M.H. and depositing it into a bank account fraudulently opened on June 14, 2020, in M.H.’s name and using his social security number and date of birth.
On June 24, 2020, law enforcement executed search warrants at White’s residence and at another address used by White, and conducted a consent search of a storage unit used by White, all in Baltimore. Law enforcement recovered the following items: the stolen EIP check issued to M.H. and M.I.; two fake driver’s licenses listing M.H.’s name and former address, but each displaying a different person’s face; two debit cards issued in the name of M.H.; stolen mail pieces and sensitive financial documents belonging to multiple victims; several blank checks issued for a trust account; numerous fake photo identification cards; counterfeit U.S. currency; fraudulently altered money orders; credit and debit cards displaying different names, at least one of which was determined to be counterfeit; equipment used to print counterfeit currency, create counterfeit credit cards, and fabricate false identification cards, as well as check stock intended to fabricate blank checks and money orders; a .45-caliber pistol; a 9mm pistol with a 50-round-capacity magazine; two .223 caliber high-capacity magazines; and several rounds of ammunition.
Two cell phones and a desktop computer were seized and subsequently searched pursuant to federal search warrants. One of the phones was found to contain notes listing individuals’ names and identifying information, including M.H., as well as a U.S. Postal Inspector who was involved in the investigation of White’s mail thefts and arrest on March 8, 2020. Information stored on White’s desktop computer revealed a search of the Postal Inspector’s name on a personal data broker website on March 14, 2020, following White’s release from custody.
As part of his plea agreement, White will be required to pay restitution in the full amount of the victims’ losses, which the parties have stipulated is no more than $50,000. In addition, White will forfeit his interest in the following items seized during searches in March and June 2020: firearms, ammunition, and firearms magazines; laptop and desktop computers; cell phones; electronic storage devices; blank plastic cards with magnetic strips and/or chips; blank checks and check stock; printers; embossing machines; and magnetic stripe reader/writers or encoders.
White and the government have agreed that, if the Court accepts the plea agreement, White will be sentenced to between five and eight years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for March 11, 2021 at 10:00 a.m.
Charges remain pending against two co-conspirators, Dominic Jerry Robinson, age 26, of Baltimore, and Cedric Jonathan McNeal-Parker, age 29, of Randallstown, Maryland. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service, the U.S. Secret Service, and the Baltimore County Police Department for their work in the investigation and thanked the Office of the Treasury Inspector General for Tax Administration for its assistance. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
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San Antonio Father and Son Arrested for Alleged Ponzi SchemeRead the Press Release
Federal authorities have arrested a father and son charged in connection with an alleged Ponzi scheme which defrauded investors of over $800,000, announced U.S. Attorney Gregg N. Sofer and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A five-count federal grand jury indictment charges 76-year-old Earl Roberts, Sr., and 50-year-old Larry Roberts with one count of conspiracy to commit wire and mail fraud, two counts of wire fraud, and two counts of mail fraud.
According to court records, Earl Roberts, Sr., was the president and owner, and Larry Roberts was the Chief Operating Officer of FACTAC, Inc., a company engaged in the business of “factoring” invoices and receivables from other companies. “Factoring” is a business process whereby a company purchases invoices and accounts receivable from other companies at a discount. The purchasing company then makes a profit when the invoices and receivables are paid at full value at a later time.
The indictment alleges that the defendants ceased factoring operations in December 2016, but continued to solicit investor funds until February 2018. Investors were told that their money would only be used to factor receivables when in fact the defendants used investor funds to pay withdrawals and interest payments to previous investors. The defendants also transferred parts of the investor funds to other companies under their control and used the funds to pay for their own personal expenses, fraudulently enriching themselves.
Agents arrested the two San Antonio residents yesterday without incident. Both have been released on bond. Arraignment is scheduled for December 7, 2020 before U.S. Magistrate Judge Henry J. Bemporad in San Antonio. Upon conviction, each related charge is punishable by up to 20 years in federal prison.
The FBI is conducting this investigation. Assistant U.S. Attorneys Justin Chung and William R. Harris are prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Rocky Mount Man Sentenced for RobberiesRead the Press Release
WILMINGTON – A Rocky Mount man was sentenced today to 120 months in federal prison for several robberies.
According to court documents, Antonio Devon Lynch, 34 of Rocky Mount, NC, was named in an Indictment, filed on June 3, 2020 charging him with four counts of interfering with commerce by robbery. On August 27, 2020, Lynch pled guilty to two of those counts.
According to the investigation, on September 27, 2019, Lynch robbed the Fuel Doc Citgo gas station located on Cokey Road in Rocky Mount using a knife to threaten the cashier. On September 30, 2019, Lynch robbed the Sheetz gas station located on Benvenue Road in Rocky Mount using a gun to threaten the cashier and Sheetz employees. Crime Stoppers tips from citizens and the investigation by law enforcement officers led to Lynch’s arrest for the crimes. Officers later determined that the gun used by Lynch was a pellet gun.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Rocky Mount Police Department conducted the investigation. The District Attorney’s Office for Edgecombe, Nash and Wilson Counties also assisted with the case. Assistant U.S. Attorney John Parris prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-00053-M.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Recording Artist Kintea McKenzie Sentenced to 4½ Years in Prison in Connection with 2018 Shooting in Times SquareRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that KINTEA MCKENZIE, a/k/a “Kooda B,” was sentenced to 54 months in prison in connection with a shooting outside a hotel in Times Square on June 2, 2018, in furtherance of the Nine Trey Gangsta Bloods (“Nine Trey”) criminal enterprise. MCKENZIE pled guilty on June 3, 2019, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Kintea McKenzie helped to orchestrate a brazen shooting in Times Square. Now, thanks to the outstanding work of our partners at the NYPD, HSI, and ATF, McKenzie will spend 54 months in federal prison.”
As alleged in the Indictment and statements made in open court:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. On or about June 2, 2018, MCKENZIE agreed to accept money from Daniel Hernandez, a/k/a “Tekashi 6ix 9ine,” to shoot at a rival gang member and rapper who was staying at a hotel in Times Square. MCKENZIE helped to organize the shooting in order to scare that rival gang member.
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In addition to the prison term, MCKENZIE, 22, of Brooklyn, New York, was sentenced to three years of supervised release.
Ms. Strauss praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Ms. Strauss also praised the New York City Department of Correction, Correction Intelligence Bureau, and the New York County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.
Raleigh Man Sentenced to 120 Months in Federal Prison for Bank Fraud Conspiracy and Possession of a Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
RALEIGH, N.C. – Derrick Devon King, age 33, was sentenced yesterday to 120 months in prison for Conspiring to Commit Bank Fraud and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
According to court documents, from May 2015 through June 2017, King and others used synthetic identities to obtain credit cards and finance automobile purchases. King and others created new credit profiles by combining their names and dates of birth with nine-digit numbers resembling social security numbers, but which had not been issued to them by the Social Security Administration. In addition to using these new credit profiles, King and others misrepresented employment information in credit applications to make it appear they had the ability to repay loans. King and his co-conspirators, however, had no intention to pay.
On June 14, 2017, King was also found to be in possession of a firearm and a trafficking amount of marijuana. He also pled guilty to that offense.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation, the Social Security Administration, Office of Inspector General, and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Susan B. Menzer prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00124-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Pittsburgh-area Copper-Processing Company Charged with Felony Violations of the Clean Water ActRead the Press Release
PITTSBURGH, Pa. – A copper-processing company headquartered in Leetsdale, Pennsylvania, was charged in federal court with three counts under the Clean Water Act related to unlawful discharges into the Ohio River over a five-year period, United States Attorney Scott W. Brady announced today. The guilty plea and sentencing hearing has been scheduled for December 15, 2020, at 10:30 a.m., before United States District Judge William S. Stickman, IV.
Libertas Copper, LLC d/b/a Hussey Copper ("Hussey"), was charged by criminal Information on November 30, 2020, with one count each of: (1) submitting a false discharge monitoring report, (2) discharging a quantity of oil that may be harmful to the environment, and (3) failing to make immediate, required notification of such discharge of oil.
"Protecting western Pennsylvania’s precious natural resources is a serious responsibility and a priority of this office," said U.S. Attorney Brady. "As the filing of this Criminal Information makes clear, polluting western Pennsylvania’s waterways and lying about it are crimes that will not be tolerated. If you pollute and try to cover it up, you will be investigated and prosecuted."
"In order to safeguard the environment, it is essential that the government receives accurate, honest and timely information," said Jennifer Lynn, Special Agent in Charge of EPA’s Criminal Enforcement Program in Pennsylvania. "Today’s charges demonstrate that we will hold violators responsible for breaking our environmental laws."
According to the Information, Hussey operated a manufacturing facility on the Ohio River that produced flat-rolled copper products for the electrical distribution, industrial, and residential construction markets. Hussey managed wastewater generated as a result of its copper processing via a wastewater treatment plant (WWTP). The WWTP discharged wastewater via designated internal and external outfalls, including outfalls on the Ohio River. At all relevant times, Hussey operated pursuant to the terms of a National Pollution Discharge Elimination System (NPDES) permit issued by the Pennsylvania Department of Environmental Protection (PADEP), as authorized by the federal Clean Water Act.
As alleged, Hussey’s NPDES permit set specific discharge limits for copper and oil, among other parameters. In addition, Hussey’s NPDES permit required the company to submit discharge monitoring reports (DMRs) on a monthly basis to PADEP, documenting the quantity and quality of the discharges authorized by its NPDES permit during the preceding month. Each DMR was required to be signed and certified as to its accuracy by a responsible corporate officer on behalf of Hussey. According to the Information, between at least June 2012 and continuing through at least May 2017, Hussey knowingly submitted numerous falsified DMRs to PADEP, indicating that various discharges from its outfalls were within applicable permit limits, when in truth and in fact Hussey’s own internal sampling data showed that such discharges had exceeded the relevant limits. The Information further alleges that during this time, Hussey reported false values in monthly DMR submissions to PADEP as to at least 140 parameters subject to discharge limits, including a substantial number of copper discharges. The false parameter values reported to PADEP allegedly concealed permit exceedances on at least 21 monthly DMRs.
Separate from the alleged DMR falsifications, the Information also alleges that Hussey engaged in a years-long pattern of discharging oil in a quantity sufficient to generate oil sheens on the Ohio River, in violation of the Clean Water Act. Between at least January 2012 and continuing until at least 2018, Hussey allegedly documented in internal logs hundreds of observed oil sheens at two of the company’s outfalls on the Ohio River. Notwithstanding these documented observations, Hussey failed to report any of the observed oil sheens to EPA or PADEP, as required by the Clean Water Act. After PADEP issued a notice of violation to Hussey in June 2015, following a citizen complaint of an oil sheen at the company’s outfall, a responsible corporate officer allegedly responded to the state agency that Hussey would report any future oil sheens. Later, in July 2016, a responsible corporate officer communicated to PADEP that there had been no observed oil sheens at Hussey’s outfalls for the prior thirteen months, when, in fact, as alleged, Hussey’s internal logs reflected dozens of sheen observations during that time. The Information further alleges that Hussey did not make an affirmative, required report to PADEP of the presence of oil sheens at its outfalls until June 2018—and even then its reporting was incomplete. According to the Information, Hussey’s oil-sheen reporting in June 2018 referenced sheens observed on three specific days, despite the fact that Hussey’s own internal logs documented observed sheens on fifteen additional days during the relevant month, including multiple sheens during the same week.
The maximum fine for submitting a false DMR (Count One) and failing to make immediate notification of the discharge of a quantity of oil that may be harmful (Count Three) is $500,000. The maximum fine for discharging a quantity of oil that may be harmful (Count Two) is (i) not less than $5,000 per day and not more than $50,000 per day of violation, or (ii) $500,000, whichever is greater. Each count carries a maximum term of probation of at least one year but not more than five years. The actual sentence imposed would be based upon the Court’s consideration of the Sentencing Guidelines and other statutory sentencing factors.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government, with assistance from Martin Harrell, Associate Regional Criminal Enforcement Counsel of the Environmental Protection Agency. The EPA’s Criminal Investigation Division conducted the investigation of Hussey Copper.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Information- Information
Physician Sentenced to Prison for Extensive “Pill Mill” SchemeRead the Press Release
ALEXANDRIA, Va. – A former Fairfax doctor was sentenced today to seven years in prison for leading and organizing an extensive and illegal prescription distribution conspiracy and a related health care fraud scheme.
According to court documents, Dr. Felicia Lyn Donald, 65, of Great Falls, organized, led, and operated a prescription “pill mill” from at least April 2016 through April 2020. Donald practiced medicine at For Women OB/GYN Associates and NOVA Addiction Center. Donald distributed over 1.2 million milligrams (mg) of Schedule II opioids at or above the Centers for Disease Control and Prevention (CDC) guideline for dosages that a practitioner should avoid, with a total street value of over $1.2 million, and illegally distributed at least 325,190 mg of oxycodone and other Schedule II controlled substances. Donald also committed health care fraud on numerous occasions in furtherance of her scheme.
“Donald flagrantly betrayed the public’s trust in the medical profession by unlawfully distributing highly addictive and potentially lethal drugs to patients and other individuals,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The Eastern District of Virginia will continue to prosecute doctors who abandon their medical oath and hold them accountable for choosing profits over patients’ lives.”
Donald admitted that she prescribed opioids to addicts and/or drug dealers who had traveled from out-of-state or long distances to her practice; individuals that informed Donald of their pending drug charges; individuals who Donald knew had failed urine toxicology screens; individuals who Donald knew were selling the pills that she prescribed to them; individuals who received from Donald opioids and alprazolam, which Donald admitted is a dangerous combination of drugs that could have killed or caused serious bodily injury to the ultimate users; paying certain employees, in part, with opioid prescriptions rather than through pay checks; and giving blank prescriptions to certain members of her medical office staff and other co-conspirators for their personal use.
Donald attempted to conceal her patterns of illegal prescribing by falsifying medical records to make it appear as though individuals who were never her patients received examinations and medical care, when in fact they had not, and engaging in Medicaid fraud. Donald fraudulently issued prescriptions to others in the names of at least nine unwitting individuals, none of whom were her patients. Donald also issued prescriptions for high doses of oxycodone to multiple women who were pregnant.
Following her guilty plea on May 4, the Court revoked Donald’s pretrial release on August 7 after the government learned and produced evidence indicating that Donald violated numerous conditions of her release pending sentencing, including: 1) Donald admitted that she “made it up” when informing the FBI and jail officials during her arrest that she was exposed to COVID-19; 2) Donald continued to practice medicine for profit; 3) Donald repeatedly communicated with co-conspirators following her guilty plea; 4) Donald made a false certification under penalty of perjury on May 16 to the Small Business Administration (SBA) to obtain a loan in light of the COVID-19 pandemic, including failing to inform the SBA about her guilty plea; and 5) Donald fraudulently used SBA loan and/or Cares Act Paycheck Protection Program COVID-19 loans to fund her personal-related expenses, including thousands of dollars in legal fees related to this case.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
First Assistant U.S. Attorney Raj Parekh and Assistant U.S. Attorney Monika Moore prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-100.
Pain Clinic Owner Sentenced to Prison for Tax Evasion and Money LaunderingRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Tom Wynne (65, Pinellas Park) to 33 months in federal prison, followed by 36 months of supervised release, for one count of conspiracy to commit tax evasion, one count of tax evasion, and seven counts of money laundering. The court also ordered Wynne to forfeit two real properties, which are traceable to proceeds of the offense. In addition, he was ordered to repay the Internal Revenue Service $359,209, and pay a fine of $150,000.
Wynne had pleaded guilty on February 4, 2020.
According to court documents, Wynne owned and operated Pain and Wellness Clinic (“PWC”), a pain management clinic in Pinellas County. He hired medical doctors to prescribe for patients large quantities of Schedule II controlled substances, like oxycodone and hydromorphone, outside the usual course of professional practice. Wynne used the illegal proceeds generated from PWC to purchase real property in the Tampa Bay area.
For each tax year, beginning in 2014 and continuing through tax year 2017, Wynne underreported PWC’s gross receipts on his tax filings. He also conspired and agreed with PWC physicians to defraud the IRS by creating and preparing, among other false and fraudulent tax-related documents, false and fraudulent IRS Forms 1099 to pay the clinic’s two doctors.
“Abuse of prescription painkillers is truly a modern-day plague on society, and any health care provider who would support that activity violates their oath to do no harm,” stated Special in Charge Brian Payne of Internal Revenue Service - Criminal Investigation. “Moreover, most of us were taught at a young age that lying makes whatever wrong we did even worse. As if procuring and distributing prescription painkillers were not bad enough, Mr. Wynne brazenly took his crimes a step further when he tried to cover up his ill-gotten gains by lying on his taxes.”
This case was investigated by the Drug Enforcement Administration—Tampa District Office, the Internal Revenue Service—Criminal Investigation, and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Opioid Fraud and Abuse Detection Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
Owner of Campos Market to Pay $600,000 in Restitution for Federal Program FraudRead the Press Release
BOISE – Aaron Campos, 47, owner of Campos Market, a retail and food convenience store in Boise, entered into a forfeiture agreement with the United States for unauthorized redemption of Supplemental Nutrition Assistance Program (SNAP) benefits. Campos has agreed to pay $600,000 in restitution for SNAP benefits unlawfully redeemed.
SNAP benefits, also known as food stamps, are a federal benefits program that provides food to needy persons. SNAP benefits can only be used for authorized food items. SNAP benefits cannot be exchanged for cash. Any other uses of SNAP benefits are unlawful.
According to court records, between January 1, 2013 and August 10, 2016, employees of Campos Market would repeatedly permit the sale of non-eligible items for SNAP benefits. Additionally, employees of Campos Market would exchange SNAP benefits for cash. Both practices are prohibited. Investigators with the United States Department of Agriculture investigated Campos Market. After investigation, Campos Market and the United States entered into an agreement where Campos Market would pay the United States $600,000 in restitution for violations of the SNAP program.
This case was investigated by the United States Department of Agriculture.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner and Operator of India-Based Call Centers Sentenced to Prison for Scamming U.S. Victims Out of Millions of DollarsRead the Press Release
WASHINGTON – An Indian national was sentenced on November 30, 2020 to 20 years in prison followed by three years of supervised release in the Southern District of Texas for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.
Hitesh Madhubhai Patel, aka Hitesh Hinglaj, 44, of Ahmedabad, India, was sentenced by U.S. District Judge David Hittner for the charges of wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering, and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8, 970,396 to identified victims of his crimes.
“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”
“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task. Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison. His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”
“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”
“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”
“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG). “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”
According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.
In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts, and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud, and debt collection fraud.
A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another co-defendant stated that Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.
Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018, after Patel flew there from India.
The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Also providing significant support during the course of the investigation and prosecutions related to this scheme were: the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs, provided significant support to the prosecution.
Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Ohio County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Mark Joseph Dobrzynski, of Valley Grove, West Virginia, is facing drug trafficking charges, U.S. Attorney Bill Powell announced.
Dobrzynski, 58, was indicted on three counts of “Distribution of Methamphetamine” and one count of “Possession with Intent to Distribute Methamphetamine.” Dobrzynski is accused of selling methamphetamine in December 2019 and October 2020 in Ohio County. He is also accused of having methamphetamine in November 2020 in Ohio County.
Dobrzynski faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Restaurateur Sentenced to Jail for Tax Evasion SchemeRead the Press Release
A New York City restaurateur was sentenced to prison for a tax evasion scheme.
Adel Kellel, 63, of New Hyde Park, New York, the owner of Raffles Bistro, formerly a restaurant located in New York City, was sentenced to 24 months in prison for tax evasion by U.S. District Court Judge Paul G. Gardephe.
“All taxpayers have an obligation to honestly report their income and pay their share of taxes,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “For those who attempt to avoid these obligations and cheat the IRS, as this sentence shows, there are serious consequences.”
“Adel Kellel cooked his books to conceal income from the IRS and his own accountants,” said Acting U.S. Attorney Audrey Strauss for the Southern District of New York. “He spent the ill-gotten gains on personal luxuries like a Mercedes, a Porsche, and a Maserati. Now he will spend two years in federal prison.”
“The accurate reporting of income is an important responsibility of all business professionals,” said IRS-Criminal Investigation Special Agent in Charge Jonathan D. Larsen. “In this case, Adel Kellel attempted to evade his taxes by diverting funds for personal use and failing to report substantial gross receipts. IRS-Criminal Investigation will continue to serve the American taxpayer by investigating individuals who hide their true income from the IRS.”
According to the allegations contained in the information to which Kellel pled guilty, documents filed in court, and statements made in court:
In 2011, Kellel was the President and a 45 percent owner of K&H Restaurant Inc. (K&H), which operated Raffles Bistro (Raffles), a coffee-shop and full service restaurant then located in a Manhattan hotel (the Hotel). From 2012 through 2015, Kellel was the 100 percent owner of K&H. From 2011 to 2015, Kellel filed false personal returns and corporate returns for K&H, and evaded his taxes by diverting and failing to report substantial gross receipts to the IRS.
For example, as part of his tax evasion scheme, Kellel diverted over 150 hotel checks, totaling over $2.1 million or approximately 43 percent of the Hotel payments K&H received by check, and then hid the gross receipts from his accountants and the IRS by depositing the checks into more than a dozen undisclosed bank accounts. These included personal accounts that Kellel held either individually or jointly with his wife, as well as accounts held in the name of K&H, some of which were opened solely to have an additional place to deposit diverted checks. Kellel also diverted substantial cash income received from Raffles’ customers, a portion of which he deposited into personal bank accounts or spent directly on personal expenses, again, without disclosing to his accountants or paying taxes.
Kellel used the diverted income for personal expenses, including overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments for his children; luxury retailers, such as Hugo Boss and Saks Fifth Avenue; Mercedes, Porsche, and Maserati vehicles; and domestic and international travel.
On Jan. 24, 2020, Kellel pled guilty to one count of tax evasion relating to the 2011 to 2015 tax years.
In total, Kellel caused a combined tax loss of at least approximately $771,195 to the IRS and the New York State Department of Taxation and Finance (NYSDTF). In addition to the sentence of imprisonment, the court ordered Kellel to pay restitution of $613,478 to the IRS and $157,717 to NYSDTF. Kellel was also ordered to serve three years of supervised release after completing his jail sentence.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strauss praised the efforts of IRS-CI in the investigation. Trial Attorney Jorge Almonte of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich are in charge of the prosecution.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nashua Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
CONCORD - Terray Morrison, 31, of Nashua, pleaded guilty in federal court to conspiracy to distribute, and possess with intent to distribute, controlled substances, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Morrison was one of the leaders of a drug trafficking organization that distributed crack cocaine and other drugs to customers in the Nashua area. During an investigation that included the use of wiretaps, Morrison took orders from customers and sent other members of the conspiracy to make drug deliveries on his behalf. He and his co-conspirators operated two stash houses in Nashua and were responsible for the distribution of substantial quantities of crack cocaine.
Morrison is one of eleven individuals charged with participating in this conspiracy. Nine have pleaded guilty and two are awaiting trial. Several members of the conspiracy have received substantial prison sentences. Melvin Nooks, Jr. was sentenced on April 2, 2020, to 120 months. George Cruz was sentenced on July 30, 2020, to 63 months. Mallory Nooks was sentenced on February 25, 2020, to 60 months. Marvin Morrison was sentenced on May 13, 2020, to 15 months. Don Johnson was sentenced on February 13, 2020, to 42 months. Isaiah Kinard pleaded guilty on December 18, 2019, Lawrence Fortenberry pleaded guilty on January 7, 2020, and William Greenleaf pleaded guilty on January 14, 2020. Kinard, Fortenberry and Greenleaf all await sentencing. Arnetta Harris and Melvin Stanford are scheduled for trial in January of 2021.
Morrison is scheduled to be sentenced on March 10, 2021.
“The distribution of crack cocaine undermines public health and safety and endangers all of our citizens,” said U.S. Attorney Murray. “I commend the FBI agents and Nashua police officers who worked so well together to end this harmful criminal conspiracy. Drug traffickers should know that law enforcement agencies at all levels of government are working together to bring them before the courts to face justice.”
“For years, Terray Morrison was a leader in a crack cocaine distribution ring that plagued the city of Nashua, endangering the health and safety of those around him, without any fear of repercussion. Now he has finally come to the realization that what he did was wrong,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI New Hampshire Safe Streets Task Force will continue to work with our law enforcement partners to prevent criminal enterprises like this one from inflicting more pain and damage to our community.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana MacDonald and Anna Krasinski.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Monongalia County man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Aaric Murray, of Morgantown, West Virginia, is facing a firearms charge, U.S. Attorney Bill Powell announced.
Murray, 31, was indicted on one count of “Unlawful Possession of a Firearm.” Murray, a person prohibited from having a firearm, is accused of having a .380 caliber pistol and a .357 magnum caliber revolver in April 2020 in Monongalia County.
Murray faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Monongalia County Sheriff’s Office investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Issac Felix-Rivera, a/k/a “King Izzy,” 24, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 18, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Felix-Rivera admitted to his role in the Latin Kings drug distribution conspiracy based in the City of New Bedford, where the gang ran a vast cocaine base distribution network that used multi-unit apartment buildings known as “trap houses” to distribute the narcotics. Members of the Latin Kings dealt drugs in the trap houses, obtaining their supply of cocaine base from co-defendant, and leader of the New Bedford Chapter of the Latin Kings, Jorge Rodriguez, a/k/a “King G.” Evidence developed during the course of the investigation included multiple recordings of Latin Kings members cooking cocaine base, directing violence against rival gang members, meting out discipline and handling firearms used to protect the Latin Kings’ drug distribution network.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Felix-Rivera is the 23rd defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case 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 https://www.justice.gov/OCDETF.
Marshall County man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – James Gray, of Moundsville, West Virginia, is facing a firearms charge, U.S. Attorney Bill Powell announced.
Gray, 43, was indicted on one count of “Unlawful Possession of a Firearm.” Gray, a person prohibited from having a firearm because of prior felony convictions, is accused of having a .380 caliber pistol in October 2020 in Marshall County.
Gray faces up to 10 years of incarceration and a fine of up to $250 ,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Marshall County Sheriff’s Office investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Marijuana User Sentenced for Illegal Possession of a FirearmRead the Press Release
Gulfport, Miss. – Johnathan J. Quarles, 26, of Gulfport, was sentenced yesterday by U.S. District Judge Sul Ozerden to 30 months in federal prison, followed by three years of supervised release, for possession of a firearm by an unlawful user of marijuana, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation in Mississippi. Quarles was also ordered to pay a $3,000 fine.
On December 26, 2019, Biloxi Police officers executed a search warrant on a Biloxi residence. Just outside the residence, they observed Johnathan Quarles, who was seated in his vehicle. Quarles saw officers and threw a bag of marijuana out of the car window. When the officers spoke with Quarles, they observed an unsheathed .9mm in his pocket. Quarles is an active user of narcotics and therefore not permitted to be in possession of a firearm.
Quarles was indicted on May 12, 2020 and he pled guilty before Judge Ozerden on August 27, 2020.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Erica Rose.
Man Pleads Guilty to Stealing $282,670 from Former EmployerRead the Press Release
WASHINGTON – William Robinson, 41, a former employee of a non-profit corporation that advocates for policies related to safe food, safe drinking water, and the climate, pled guilty to the interstate transportation of funds stolen from the non-profit corporation.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, and James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Robinson pled guilty today via videoconference in the U.S. District Court for the District of Columbia before the Honorable Ketanji Brown Jackson to a one-count Information charging him with Interstate Transportation of Stolen Property. Robinson is scheduled to be sentenced on March 2, 2021. The charge carries a maximum penalty of up to ten years in prison. Robinson will also be required to pay restitution in the amount of $282,670 and a forfeiture money judgment.
According to the Statement of Offense, Robinson was initially hired by the non-profit corporation in 2012 as a web developer. After multiple promotions, he became its Chief Technology Officer in 2015. While working at the non-profit corporation, Robinson devised a scheme to defraud by creating Vulcan Network & Data Security, LLC (“Vulcan”) and arranging a contract for Vulcan to provide web security services to his non-profit corporation employer. Robinson then created false invoices on behalf of Vulcan and submitted them to his employer’s finance department, requesting payment for purported web security services, testing, and equipment. In reality, Vulcan never provided any services to the non-profit corporation, which was already paying a separate company for those services. From April 2017 to September 2019, Robinson submitted 13 false Vulcan invoices to his non-profit corporation employer. The non-profit corporation paid Vulcan a total of $282,670 for services never provided. Robinson received all of these funds and used them to pay for personal expenses.
For the last payment made to Vulcan in the course of this scheme, on October 11, 2019, Robinson asked the non-profit corporation’s finance department to issue a check to Vulcan, along with two other unrelated checks, and give them to a particular employee so that Robinson could hand deliver them. Robinson offered that employee $50 to deliver the checks to him from Washington, D.C. to Springfield, Virginia. After the employee made the delivery, Robinson cashed the $22,500 check from Vulcan that same day.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those who investigated the case from the FBI’s Washington Field Office. They acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Quiana Dunn-Gordon, Amanda Rohde, and Michon Tart.
Finally, they commended the work of Assistant U.S. Attorney Christine Macey, of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia, who prosecuted the case.
Man Pleads Guilty to Defrauding Investors in Carbon Credit SchemeRead the Press Release
RICHMOND, Va. – A Georgia man pleaded guilty today to conspiracy to commit wire fraud as part of a $1.7 million investment scheme.
According to court documents, Mark H. Loewen, 58, of Atlanta, was the President of World Wide Carbon, LLC (WWC), a business based in Atlanta that purported to sell investments related to carbon offset credits for profit. Loewen and his co-conspirators misled investors regarding WWC’s use of investor funds, return on investment, and risks of the carbon offset credit investment. In total, seven victims, including some in the Eastern District of Virginia and some who were elderly, invested $1,749,990 in WWC investments.
Loewen is scheduled to be sentenced on April 6, 2021. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorney Jessica D. Aber is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-30.
Long Island Man Charged with Defrauding InvestorsRead the Press Release
A criminal complaint was unsealed today in federal court in Central Islip charging Mark Lisser with wire fraud for lying to investors and potential investors to induce them to invest in what they believed were shares of several companies prior to the companies’ initial public offerings. Lisser was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Lois Bloom.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Lisser convinced investors to trust him with their money by lying about what he was selling and how much of it he would keep for himself,” stated Acting United States Attorney DuCharme. “We and our law enforcement partners will continue to vigorously investigate and prosecute those who abuse the trust of investors in order to enrich themselves.” Mr. DuCharme thanked the New York Regional Office of the Securities and Exchange Commission for its assistance in this investigation.
“As an investment firm partner, Lisser encouraged his victims to purchase pre-IPO shares of companies that weren’t his to sell, as we allege today. He purportedly used this money to make illegitimate payments, fund salaries, and satisfy his monthly mortgage payments. Padding one’s pockets at the expense of others isn’t only a bad way to do business, it’s a federal crime,” stated FBI Assistant Director-in-Charge Sweeney.
According to the complaint, between October 2018 and January 2019, Lisser was a partner in Knightsbridge Private Partners LLC (“Knightsbridge”), which operated a series of websites and call centers used to solicit investments in purported pre-IPO shares of companies. Lisser and employees of Knightsbridge solicited these investments by telling investors and potential investors that Knightsbridge owned the shares it was selling, that Knightsbridge was on the capitalization table of the pre-IPO companies and that Knightsbridge and its employees did not earn any commissions or fees until after the shares were issued to the public and the investor made money. In fact, as Lisser knew, Knightsbridge did not directly own any of these pre-IPO shares, was not on the capitalization table of any of the pre-IPO companies, and Lisser and Knightsbridge employees received money and commissions from the investments at the time they were made. As a result of this fraud scheme, Lisser misappropriated more than $700,000 in investors’ funds which he used to make payments to companies controlled by Knightsbridge employees, pay salaries and sales commissions, pay his personal credit card bill and make payments on a mortgage.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Lisser faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mathew S. Miller and David Gopstein are in charge of the prosecution. Assistant United States Attorney Karin Orenstein is assisting with forfeiture matters.
The Defendant:
MARK ALAN LISSER
Age: 40
Massapequa, New YorkE.D.N.Y. Docket No. 20-MJ-1128