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26 January 2021
U.S. Attorney Announces Extradition of Two Defendants in Multimillion-Dollar Text Messaging Consumer Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Ramsey E. Covington, the Acting Special Agent-in-Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MICHAEL PEARSE, an Australian national, and YONGCHAO LIU, a/k/a “Kevin Liu,” a Chinese national, were extradited from Australia and arrived in the United States yesterday. PEARSE and LIU were extradited on charges of conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and, as to PEARSE, conspiracy to commit money laundering, stemming from the defendants’ participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent – a practice that the defendants and their co-conspirators referred to as “auto-subscribing.” The portion of the fraudulent scheme that PEARSE, LIU, and their co-conspirators orchestrated generated more than $50 million in proceeds for themselves. PEARSE and LIU will be presented and arraigned today before U.S. Magistrate Judge Debra Freeman. The case has been assigned to U.S. District Judge Analisa Torres.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Michael Pearse and Yongchao Liu played key roles in an international consumer fraud conspiracy that victimized hundreds of thousands of mobile phone customers to the tune of more than $50 million. Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse and Liu are now in the United States and facing serious charges in this District.”
IRS-CI Acting Special Agent in Charge Ramsey E. Covington said: “Through a sophisticated text messaging scam, the defendants and their co-conspirators allegedly swindled more than $50 million in proceeds from hundreds of thousands of unwitting mobile customers. Yesterday’s extraditions continue the pathway to justice for the staggering number of victims and financial losses accumulated as a result of this alleged scheme. I applaud the collective efforts of the law enforcement agencies whose collaboration and coordination made the extraditions possible.”
FBI Assistant Director William F. Sweeney Jr. said: “Pearse and Liu will finally face the consequences for the text messaging scheme they were charged with more than five years ago. Their extradition is a reminder that being out of our sight and out of our reach are two different things.”
According to allegations in the Indictment[1], evidence presented at the trial of co-conspirator Darcy Wedd, and other public filings:
From in or about 2011 through in or about 2013, PEARSE, LIU, and their co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, through a practice known as auto-subscribing.
During the relevant time period, Lin Miao, a co-conspirator of PEARSE and LIU, operated a company called Tatto, which offered premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – to mobile phone customers. PEARSE and LIU worked for a company called Bullroarer, which was affiliated with Tatto. PEARSE was the CEO of Bullroarer and LIU was a Java development engineer for Bullroarer. Co-conspirator Darcy Wedd operated Mobile Messenger, a U.S. aggregation company in the mobile phone industry that served as a middleman between content providers such as Tatto and mobile phone carriers, and was responsible for assembling monthly charges incurred by a particular mobile phone customer for premium text messaging services and placing those charges on that customer’s cellular phone bill.
To carry out the scheme, co-conspirators at Tatto purchased large numbers of mobile phone numbers from co-conspirators at Mobile Messenger, who had access to those numbers by virtue of their employment. PEARSE, LIU, and their co-conspirators then worked to have unsolicited text messages sent to these and other mobile phone numbers and to enroll those customers in premium text messaging services without their knowledge or consent. PEARSE, LIU, and their co-conspirators also took steps to conceal the fraud scheme by making it appear as if the customers had, in fact, elected to purchase the text messaging services, when in truth they had not.
The consumers who received the unsolicited text messages typically ignored or deleted the messages, often believing them to be spam. Regardless, the consumers were billed for the receipt of the messages, at a rate of $9.99 per month, through charges that typically appeared on the consumers’ cellular telephone bills in an abbreviated and confusing form, e.g., with billing descriptors such as “96633IQ16CALL8668611606” and “25184USBFIQMIG.” The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds from Tatto, Bullroarer, or other corporate affiliates of Tatto were often unsuccessful.
After obtaining proceeds of the fraud scheme, PEARSE worked with other co-conspirators to launder the proceeds. PEARSE and his co-conspirators distributed the proceeds of the fraud scheme among themselves and others involved in the scheme by, among other things, causing funds to be transferred through the bank accounts of a series of shell companies and companies held in the names of third parties. This was done in order to conceal the nature and source of the payments and PEARSE’s and his co-conspirators’ participation in the fraud.
Through their successful orchestration of this fraud scheme, which affected hundreds of thousands of consumers, PEARSE, LIU, and their co-conspirators generated more than $50 million in fraud proceeds for themselves.
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PEARSE, 52, and LIU, 33, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, which carries a maximum penalty of 20 years in prison; one count of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, which also carries a maximum penalty of 20 years in prison; and one count of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A and 2, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed. In addition, PEARSE is charged with one count of conspiracy to commit money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(B)(i), 1957, and 1956(h), which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of IRS-CI and the FBI. In addition, Ms. Strauss thanked law enforcement partners in Australia, particularly the International Crime Cooperation Central Authority, Australian Federal Police, and the New South Wales Police Force, as well as the U.S. Department of Justice’s Office of International Affairs, for their support and assistance with the defendants’ extraditions.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan Kamal and Olga Zverovich are in charge of the prosecution.
The charges in the Indictment 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 Indictment and the description of the Indictment and charges set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two More Individuals Plead Guilty in Connection with Health Care Kickback ConspiracyRead the Press Release
TEXARKANA, Texas – Two more individuals have pleaded guilty to conspiring to pay and receive kickbacks in violation of the Anti-Kickback Statute, announced Acting United States Attorney Nicholas J. Ganjei.
Kimberly Willette, 59, of Friendswood, Texas, and Edwin Chad Isbell, 48, of McKinney, Texas, pleaded guilty to conspiracy to commit illegal remunerations on Jan. 25, 2021 before U.S. Magistrate Judge Caroline Craven.
Nicolas Arroyo of Newport Coast, California, previously pleaded guilty for his involvement in the conspiracy.
“Kickback schemes are anti-competitive, lead to overutilization and higher program costs, and prioritize profits over patient care,” said Acting United States Attorney Nicholas J. Ganjei. “The payment and receipt of kickbacks related to federal health care programs will not be tolerated in the Eastern District of Texas.”
According to information presented in court, the defendants conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that effect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California, Irvine, California, and San Diego, California. More than $28 million in illegal kickback payments were exchanged by the defendants and others during the conspiracy.
In December 2019, Arroyo and eleven other individuals from three states were charged for their roles in the kickback conspiracy. A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb of Scottsdale, Arizona; Nicolas Arroyo of Newport Coast, California; Vincent Marchetti, Jr., of Coronado, California; William Flowers of Houston, Texas; Steven Donofrio of Temecula, California; James J. Walker, Jr. a/k/a Jimmy Walker of Frisco, Texas; Timothy Armstrong of Frisco, Texas; Virginia Blake Herrin of Frisco, Texas; Patrick Ridgeway of Jackson, Mississippi; Chismere Mallard of McAllen, Texas; Ray W. Ng of Dallas, Texas; and Ashley Kretzschmar of Aledo, Texas; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the FBI Dallas – Frisco Resident Agency, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
Two Akron-area men charged with intent to distribute approximately 10,000 THC vape cartridges and psilocin in Northern OhioRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a four-count indictment charging Gage Predojev, age 22, and Justin Duma, age 22, both of Akron, Ohio, with drug trafficking and firearm offenses was unsealed following the arrest of the defendants.
Gage Predojev was charged with one count of possession with intent to distribute controlled substances (THC) and one count of felon in possession of a firearm. Justin Duma was charged with one count of possession with intent to distribute controlled substances (psilocin) and one count of possession of a firearm in furtherance of drug trafficking.
In September of 2019, it is alleged that defendant Predojev drove from Michigan to Cleveland, Ohio, with approximately 10,000 THC vape cartridges in his vehicle. Defendant Predojev allegedly intended to distribute the vape cartridges in the Northern District of Ohio.
In October 2019, law enforcement agents executed a search warrant at the Akron-area residence of defendants Predojev and Duma and seized various controlled substances, including THC vape cartridges and 400+ grams of psychedelic mushrooms (psilocin); several firearms and ammunition; and $18,432.00 in cash.
Defendant Predojev is prohibited from owning a firearm due to previous convictions of drug trafficking in the Summit County Court of Common Pleas.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the FDA – Office of Criminal Investigations in conjunction with the Ohio Attorney General’s Organized Crime Commission Major Crimes Task Force which consists of the Cuyahoga County Sheriff’s Department, Cuyahoga County Prosecutor’s Office, FDA-OCI, U.S. Postal Inspection Service and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Aaron P. Howell.
Turtle Mountain Indian Reservation Man sentenced to 30 years in Federal Prison for Sexually Abusing Six ChildrenRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Peter D. Welte has sentenced Roger Decoteau, age 65 of Belcourt, ND, to 30 years and 5 months in federal prison for Abusive Sexual Contact, 18 USC 2244. Judge Welte also sentenced Decoteau to lifetime supervision, to register as a sexual offender, and $200 in special assessment fees.
In November 2018, the Federal Bureau of Investigation (FBI) began investigating Roger Decoteau for the sexual abuse of minors after an eight year old child disclosed that Decoteau had sexually abused the child. The FBI continued its investigation, eventually securing evidence that Decoteau had sexually abused six children. The children were all under the age of 12 when Decoteau abused them, and each of the children viewed Decoteau as a trusted adult and foster parent. Decoteau has served as a foster parent in the Turtle Mountain community for nearly a decade.
On May 6, 2019, Decoteau was arrested and charged for multiple counts of child sexual abuse. Decoteau admitted to sexually abusing three minor females, claiming that he was "feeling helpless" so he "turned to the helpless."
"The defendant preyed upon children he had a responsibility to protect," said US Attorney Drew Wrigley, "and his deplorable exploitation of these children all but ensures that the final decades of his life will be spent in federal prison."
This case was investigated by the FBI and the Northern Plains Children’s Advocacy Center, and was prosecuted by Assistant United States Attorney Dawn M. Deitz.
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Tri-City Metro Drug Task Force Receives over $132,800 Forfeiture Award from U.S. Department of Justice as a Result of Dismantling Fentanyl-Laced Pill Drug Trafficking Ring in the Tri-City AreaRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, and Frank A. Tarentino III, Special Agent in Charge of the Seattle Field Division of the U.S. Drug Enforcement Administration, announced today and presented the Tri-City Metro Drug Task Force with $132,876 in asset forfeiture equitable sharing funds. Kennewick Police Chief Ken Hohenberg, Governing Board Chair of the Metro Drug Task Force, accepted the funds on behalf of the Task Force.
The Tri-City Metro Drug Task Force was originally formed in 1988 and has for more than 30 years had a significant impact on disruption of narcotics trafficking and related criminal activities in the Tri-Cities region, and across the State of Washington and the Pacific Northwest. It can use these funds to further its efforts. The Metro Drug Task Force is comprised of officers from the Kennewick Police Department, Richland Police Department, Pasco Police Department, West Richland Police Department, Benton County Sheriff’s Office, and Franklin County Sheriff’s Office.
The asset forfeiture funds presented today are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) and Metro Drug Task Force investigation which targeted distributors of Fentanyl-laced pills in the Tri-City area. The investigation and law enforcement action began in 2017, indictments issued in 2018, and in 2020 the final assets were forfeited.
Fentanyl, an extremely dangerous and deadly opioid, is largely responsible for the marked increase in drug overdoses and deaths in Eastern Washington. Fentanyl is the most dangerous and insidious drug facing our community today. Fentanyl-laced pills, are illegally manufactured most commonly in Mexico and have found their way into this community and others in devastating numbers. Fentanyl is 100 times more potent than morphine and hundreds of times more potent than street-level heroin. People using even a partial Fentanyl-laced pill have died instantly.
The forfeiture funds shared with Metro Drug Task Force today were seized and forfeited from two defendants who have been previously sentenced and a third individual who is a fugitive:
- Taylor Fertig, of Kennewick, Washington, pleaded guilty to Conspiracy to Distribute 400 grams or more of Fentanyl, and was sentenced on June 26, 2019, to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision. He was also ordered to forfeit $12,220 in U.S. currency seized by the United States. According to information disclosed during court proceedings, Fertig was identified as one of the first major distributors in the Tri-City area of Fentanyl-laced pills that are unlawfully made to appear to be prescription oxycodone medication.
- Dustin Alvin Zuhlke of Kennewick, Washington, pleaded guilty to Conspiracy to Distribute Fentanyl, and was sentenced on October 22, 2020, to a 4-year term of imprisonment, to be followed by a 3-year term of court supervision, and was ordered to forfeit $136,982 in U.S. currency seized by the United States. According to information disclosed during court proceedings, Zuhlke was identified as a large scale distributor of Fentanyl-laced pills, selling over 1,000 pills per week in 2017.
- Remijio Morfin-Mendoza is a fugitive. Notwithstanding Morfin-Mendoza’s fugitive status, the United States seized and forfeited $16,893 in U.S. currency from him. On June 5, 2018, he was indicted by a grand jury in the Eastern District of Washington for one count of Conspiracy to Distribute Fentanyl and two counts of Distribution of Fentanyl. The public is reminded that charges contained in an indictment are only accusations and are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Pursuant to applicable regulations, an 80% share of the funds seized from Zuhlke, Fertig, and Morfin-Mendoza are being shared with the Metro Drug Task Force in recognition of its significant contribution to this investigation. The shared asset forfeiture funds will assist the Metro Drug Task Force in further crime-fighting efforts.
The Department of Justice Asset Forfeiture Program is, first and foremost, a law enforcement program. It removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The Department of Justice underscores these law enforcement purposes with all federal, state, local, and tribal law enforcement agencies.
One of the ancillary benefits of asset forfeiture is sharing federal forfeiture proceeds with cooperating state and local law enforcement agencies through equitable sharing as is occurring here. The Department of Justice Equitable Sharing Program enhances cooperation between federal, state, local, and tribal law enforcement by providing valuable additional resources to those law enforcement agencies.
United States Attorney William Hyslop said, “The influx of Fentanyl into Eastern Washington is a huge threat to this area. Prosecuting Opioid/Fentanyl-related cases is a top priority for the United States Attorney’s Office. We are committed to investigating and dismantling Fentanyl trafficking and we are actively engaged in community outreach efforts to educate people about the dangers of this deadly drug. This investigation exemplifies the positive crime fighting results that can be achieved when federal, state, local, and Tribal law enforcement agencies collaborate and work together. Our citizens are safer and our communities are more secure as a result of joint law enforcement efforts like what occurred here. The Metro Drug Task Force’s determined investigative work with the DEA and swift action have been critical to the success of this investigation.”
“Fentanyl is taking lives throughout the country and destroying the communities we live in,” said DEA Special Agent in Charge Frank Tarentino. “In the last year, DEA has seen a 187% increase in fentanyl seizures in Eastern Washington. Fentanyl continues to be an eminent threat to the public and its production and distribution is contributing to an increase in crime and violence. Through the outstanding partnerships with our local, state, and federal partners, our relentless pursuit of these dangerous criminals will not stop.”
The enforcement action resulting in this forfeiture was part of an OCDETF investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the Drug Enforcement Administration.
This case was investigated by the Spokane Resident Office of the Drug Enforcement Administration in partnership with the Metro Drug Task Force.
This case was prosecuted by Stephanie Van Marter and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
More information regarding the DOJ Equitable Sharing Program can be found here: DOJ Guide to Equitable Sharing.
Three Individuals Indicted for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On January 20, 2021, a federal grand jury returned a six-count indictment charging Carlos Osorio-Pérez, Luz Damaris Pérez-Velázquez and Onyx Yerielle Olivera-Rivera in a conspiracy to obtain firearms in Florida and sell them in Puerto Rico, all without a license. Members of the conspiracy would mail firearms from Florida to Puerto Rico and send thousands of dollars from Puerto Rico to Florida.
United States Attorney for the District of Puerto Rico W. Stephen Muldrow made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation of the case.
According to the indictment, the conspiracy has been ongoing since June 2019. In the past three months, Mr. Osorio Pérez purchased over twenty-five AR-15 type pistols in Florida. Three packages sent via Priority Mail on December 14 and 15, 2020 from Florida to Puerto Rico contained eleven firearms. Mr. Osorio-Pérez sent messages such as “Puedo dejarte los palos en 950” (I can give you the long guns for $950). Another message read: “Un duro necesita 3 cosas” “Dinero armamento y gente”; “Y somos algo necesario.” (A tough guy needs three things, money, weapons and people. We are needed).
Assistant U.S. Attorney Carlos R. Cardona and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendants face up to 10 years in prison for each firearms count.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Texan sentenced for attempting to smuggle over 80 people on multiple occasionsRead the Press Release
LAREDO, Texas – A 45-year-old Rio Bravo resident has been ordered to federal prison following his conviction for conspiring to transport aliens within the country for a profit, announced U.S. Attorney Ryan K. Patrick.
Jose Reyes Ipina Jr. pleaded guilty Feb. 3, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo handed Ipina a 57-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional information including evidence detailing his involvement in prior alien smuggling trips and his role as a recruiter/organizer in the alien smuggling organization.
The investigation revealed that on Nov. 8, 2019, a smuggling operation was taking place at a truck yard of Texas Highway 359 near Ranch Road in Laredo. Authorities spotted Ipina in his truck at a nearby store around the same time of the potential smuggling event. They also noticed a white tractor-trailer combination departing the truck yard and heading north on Interstate Highway 35 until stopping at a Border Patrol (BP) checkpoint for inspection.
There, a K-9 alerted to the presence of contraband. The driver – later identified as Alfredo Gutierrez Jr. – and the tractor-trailer were referred to secondary inspection where law enforcement found 29 illegal aliens hidden in the rear of his trailer.
A search of Gutierrez’s phone revealed he had been in contact with Ipina.
The ensuing investigation later tied Ipina a prior smuggling event in June 2019 at the Interstate Highway 35 BP checkpoint. At the time of that offense, authorities discovered a total of 52 aliens hidden inside the tractor-trailer.
On June 30, Gutierrez, 43, Laredo, was sentenced to 57 months in federal prison for his role in the conspiracy.
Ipina has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Paul A. Harrison prosecuted the case.
Ten Jersey City Men Charged in Conspiracy to Burglarize More Than 40 PharmaciesRead the Press Release
NEWARK, N.J. – Ten Jersey City men have been charged for their roles in a pharmacy burglary conspiracy that victimized at least 40 pharmacies in northern New Jersey in a three-month span, Acting U.S. Attorney Rachael A. Honig announced today.
Mohummad Simmons, 25, a/k/a “Mo Waps;” Tamir Brown, 27, a/k/a “Stragg;” Rico Phang, 19, a/k/a “Little Mil;” Deon Davis, 24, a/k/a “Dee;” Michael Simeus, 27, a/k/a Jerk;” David Booker, 28; Darrel Hicks, 25; Daquan Hart, 22, a/k/a “Day Day;” Jamiel French, 27, a/k/a “Money Mil;” and Tyriq Rembert, 28, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to commit burglary involving controlled substances. Simmons, Hart, and Rembert appeared by videoconference for their initial appearances before U.S. Magistrate Judge James B. Clark III on Jan. 22, 2021, and Hicks appeared today by videoconference for his initial appearance before U.S. Magistrate Judge Leda D. Wettre. Brown is in custody on related state charges. The remaining defendants are at large.
“The complaint charges that the defendants went on a crime spree throughout northern New Jersey, breaking into pharmacies and stealing dangerous controlled substances, including opioids,” Acting U.S. Attorney Honig said. “I applaud the Drug Enforcement Administration and our local law enforcement partners for responding quickly to identify these suspects so that they can be brought to justice.”
"The success of this investigation was the result of teamwork, the sharing of information between law enforcement agencies, and good, old-fashioned police work," Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division Susan A. Gibson said. “Those arrested thought they could get away with their crime wave of theft, but they will now face justice. The public should know that DEA and our law enforcement partners will always pursue those who choose to violate the law.”
According to documents filed in this case and statements made in court:
From Oct. 11, 2020, through Dec. 22, 2020, the defendants forcibly entered and burglarized, or attempted to burglarize, pharmacies throughout northern New Jersey. They typically wore dark clothing, facemasks, and gloves, and gained entry to the pharmacies by breaking windows or doors with a brick or a rock. They took various types of controlled substances and other prescription drugs for the purpose of redistribution. During these burglaries, several controlled substances were prioritized, including codeine, a Schedule II controlled substance, acetaminophen with codeine, a Schedule III controlled substance, and promethazine with codeine, a Schedule V controlled substance. Pharmacies were victimized in Secaucus, North Bergen, Linden, Guttenberg, Kenilworth, Madison, Short Hills, Iselin, Jersey City, West New York, North Arlington, and Lyndhurst.
For example, on Oct. 11, 2020, at approximately 4:40 a.m., Simmons, Phang and a conspirator forcibly entered a pharmacy in Secaucus and took promethazine with codeine, a Schedule V controlled substance, and were recorded on surveillance video. They fled the scene in a black Chevrolet Malibu registered to Simmons. Prior to the burglary, the Malibu approached the area of the burglary following a silver Pontiac Grand Prix. Immediately after the burglary, the Malibu departed the area following the Pontiac.
In another instance, on Nov. 6, 2020, at approximately 5:45 a.m., Simmons and Phang forcibly entered a pharmacy in Linden with the intent to steal controlled substances. Approximately one hour and fifteen minutes before the burglary, the two men had been the subjects of a motor vehicle stop in Union, New Jersey, while traveling in the Malibu. Surveillance video footage from the pharmacy in Linden showed Simmons and Phang wearing the same clothing that they were wearing during the body camera footage of the motor vehicle stop. The surveillance video also showed Simmons and Phang depart the area of the burglary in the Malibu.
The charge of conspiring to burglarize pharmacies carries a maximum penalty of 10 years in prison.
Acting U.S. Attorney Honig credited the Secaucus Police Department, under the direction of Chief Dennis Miller, with leading the investigation into this multi-jurisdictional burglary ring, along with special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson. She also thanked the Hudson County Prosecutor's Office, the Union County Prosecutor's Office, the Bergen County Prosecutor's Office, the Middlesex County Prosecutor's Office and the Jersey City, North Bergen, Harrison, Hillside, Elizabeth, Guttenberg, Kearny, North Arlington, Bernards Township, Maywood, Lyndhurst, Millburn, Linden, Woodbridge, Madison, West New York, Clifton, Parsippany, Roselle, Hoboken, Edison, Kenilworth, Highland Park, Belleville, Teaneck, and Bayonne police departments.
The case is being prosecuted by Desiree Grace Latzer, Deputy Chief of the Criminal Division, in Newark.
Tax preparer sentenced after admitting to preparing fraudulent federal income tax returnsRead the Press Release
STATESBORO, GA: A tax preparer has been sentenced to probation after she admitted preparing fraudulent federal income tax returns that resulted in illegally excessive refunds for multiple clients.
Shawree A. Hagins, 59, of Millen, Ga., was sentenced to three years’ probation by U.S. District Court Judge R. Stan Baker after pleading guilty to Fraud and False Statements Related to Tax Filings, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Hagins also was ordered to pay $75,000 in restitution.
“Tax preparers have a responsibility to legally and accurately prepare tax returns on behalf of their clients,” said U.S. Attorney Christine. “Shawree Hagins instead scammed all American taxpayers to enrich herself by illegally inflating the amount of tax refunds due to her clients, and will pay the price for that fraud.”
As described in court documents and testimony, Hagins prepared at least 36 tax returns on behalf of 12 clients, fraudulently claiming deductions in excess of the amount to which the taxpayers were entitled. The fraudulent claims resulted in a loss of $75,000 to the Internal Revenue Service (IRS).
“Unscrupulous return preparers truly undermine the American tax system and the trust of taxpayers relying on their expertise” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Don’t just look at the refund or the amount you owe, always ask questions and review your entire tax return with your return preparer. As we approach tax filing season, those who might consider preparing false tax returns should be aware there will be consequences as evidenced today.”
“Hagins showed a complete disrespect for the law with her flagrant actions and abused her position of trust for her own personal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Let this sentencing be a warning with tax season approaching, that claiming money that doesn't belong to you at the expense of every American taxpayer will not be allowed.”
The case was investigated by IRS Criminal Investigations and the FBI, and prosecuted for the United States by Assistant U.S. Attorney Tara M. Lyons.
Superseding Indictment Charges Six Men with Conspiracy, Firearms Violations, Violent CarjackingsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal superseding indictment against JOSHOAMEI DEANGELO RICHARDSON, 19, JAMES BROCK WILLIAMS, JR., 20, ISAIAH STACY ALSTAD, 22, CLIFTON GERMAINE WALKER, JR., 23, JORDAN SYDNEY SHAMAH RHODES, 22, and ERIC TROY BALLARD, JR., 18, for conspiracy, firearms violations, and carjacking. All six defendants have been ordered to remain in custody pending further proceedings.
United States Attorney Erica H. MacDonald stated, “This past summer the Twin Cities saw a disturbing trend of shootings and carjackings. This criminal activity will not be tolerated in our communities. Federal law enforcement, in concert with our state and local partners, is committed to holding accountable the perpetrators of this violence.”
According to the allegations in the superseding indictment and documents filed with the court, from at least May 2020 through January 2021, the defendants maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against rival gang members, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, and controlled substances.
According to the allegations in the superseding indictment and documents filed with the court, on August 25, 2020, at approximately 2:30 a.m., WILLIAMS and BALLARD, carjacked a 2006 black BMW 530i, near the 1200 block of Jackson Street, in St. Paul, Minnesota, at gunpoint and physically assaulted the driver of the vehicle. That same day, at approximately 6:50 a.m., RICHARDSON, WILLIAMS, ALSTAD, WALKER, and BALLARD, carjacked a 2012 Dodge Charger, at gunpoint, from the parking lot of a restaurant near White Bear Avenue in St. Paul. That same day, at approximately 9:00 a.m., RICHARDSON, WILLIAMS, ALSTAD, and BALLARD carjacked a 2012 blue Subaru Outback, at gunpoint, from Maria Avenue near Metropolitan State University in St. Paul. During the time period alleged in the superseding indictment and documents filed with the court, the defendants illegally possessed 10 semiautomatic pistols and committed other violent acts and crimes.
These cases are the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
JOSHOAMEI DEANGELO RICHARDSON, a/k/a Yoshi, a/k/a Yodaa Ballard, 19
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 1 count
- Aiding and abetting carjacking, 2 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 2 counts
JAMES BROCK WILLIAMS, JR., a/k/a Jackboy, a/k/a J, 20
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Aiding and abetting carjacking, 3 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 3 counts
ISAIAH STACY ALSTAD, a/k/a Zay, a/k/a Lil Zay, a/k/a Zay Money, 22
Columbia Heights, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 2 counts
- Aiding and abetting carjacking, 2 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 2 counts
CLIFTON GERMAINE WALKER, JR., a/k/a K-Killa, a/k/a Clif, 23
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Aiding and abetting carjacking, 1 count
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 1 count
JORDAN SYDNEY SHAMAH RHODES, a/k/a 2 3, 22
White Bear Lake, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Unlawful Controlled-Substance User in Possession of Firearms, 3 counts
ERIC TROY BALLARD, JR., a/k/a Donk, a/k/a Lil Donk, a/k/a Tray Williams, 18
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Aiding and abetting carjacking, 3 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Stratford Man Sentenced to More Than 5 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS MARTINEZ, also known as “Macho,” 55, of Stratford, was sentenced today by U.S. District Judge Alvin W. Thompson to 63 months of imprisonment, followed by three years of supervised release, for narcotics distribution and ammunition possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, resulted in federal charges against 19 defendants and the seizure of narcotics, items used to process and package drugs for street sale, eight firearms, and more than $360,000 in cash. The investigation revealed that Martinez was supplying another narcotics distributor with cocaine and opioid pills.
A subsequent investigation of an unrelated drug distributor revealed that Martinez was also acquiring and distributing heroin.
Martinez was arrested on November 6, 2018. On that date, investigators searched Martinez’s residence and seized boxes of .45 caliber hollow-point ammunition and $11,132 in cash.
Martinez has been detained since his arrest. On October 25, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances, one count of conspiracy to possess with intent to distribute heroin, and one count of possession of ammunition by a convicted felon.
Martinez’s criminal history includes state convictions for manslaughter, assault, weapons and larceny offenses, and a federal conviction stemming from his role in a crack cocaine distribution ring.
Judge Thompson ordered Martinez to forfeit the cash and ammunition seized on the date of his arrest. Martinez previously forfeited more than $56,000 in cash that he had shipped to a drug supplier in California, but was seized by law enforcement at a parcel delivery hub.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Stacey Pomrenke, Kurt Pomrenke Sentenced to Prison Time for Conspiring to Defraud the United StatesRead the Press Release
ABINGDON, Va.- Stacey Pomrenke and her husband Kurt Pomrenke were sentenced today in U.S. District Court in Abingdon for conspiring to defraud the United States while Stacey Pomrenke was on pre-trial release. Acting United States Attorney Daniel P. Bubar, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, and Kelly R. Jackson, Special Agent in Charge of Internal Revenue Service-Criminal Investigations, made the announcement today.
Stacey Pomrenke, 48, of Abingdon, Virginia, was sentenced today to 30 months in federal prison and ordered to pay a fine of $10,000. In November 2020 she waived her right to be indicted and pleaded guilty to a one-count Information charging her with conspiring to defraud the United States while on pre-trial release.
Kurt Pomrenke, 67, also of Abingdon, was sentenced today to 12 months and one-day in federal prison and ordered to pay a fine of $5,000. In November he pleaded guilty to a one-count Information charging him with conspiring to defraud the United States.
“Today’s sentence concludes a troubling case, in which convicted fraudsters remained undeterred in their criminal conduct—even after significant federal convictions,” Acting U.S. Attorney Bubar stated. “Instead of simply accepting and serving her original prison sentence, Stacey Pomrenke, with the assistance of her husband, carried out an additional fraud scheme to exploit a drug treatment program to shorten her sentence. We hope today’s sentences will serve as a deterrence to others, and greatly appreciate the hard work of the FBI and IRS-CI to again bring the Pomrenkes to justice.”
“Fraud against a federal program is fraud against every American taxpayer. Mr. and Mrs. Pomrenke were convicted of conspiring to defraud a federal program designed to aide those with serious needs while incarcerated,” Special Agent in Charge Archey said today. “Their sentence should serve as a reminder that the FBI will aggressively investigate those cases and refer them to the United States Attorney's Office for prosecution.”
“Even after Stacey Pomrenke was found guilty following a 9-day trial on 14 corruption counts and Kurt Pomrenke was found guilty of one count of contempt of court relating to his wife’s federal trial, the couple continued to show blatant disregard for the law by using deception to gain Stacey Pomrenke’s early release from prison,” said Special Agent in Charge Jackson, of IRC-CI Washington DC Field Office. “The selfish action of fraudulently entering programs designed to assist those dealing with addiction merits legal recourse.”
According to court documents, on October 27, 2015, Stacey Pomrenke was arrested based upon the return of an indictment alleging multiple violations of federal law resulting from the federal investigation of Bristol Virginia Utilities Authority. When interviewed by a probation officer for the United States District Court for the Western District of Virginia, Stacey Pomrenke denied any history of substance abuse. Following her conviction for multiple federal offenses, Stacey Pomrenke was again interviewed by probation officers for the United States District Court. During this interview, Stacey Pomrenke again denied any history of substance abuse and stated she was a “social drinker.” Stacey Pomrenke remained on release until September 26, 2016.
On August 11, 2016, Stacey Pomrenke was sentenced to 34 months in federal prison and ordered to self-report to the Bureau of Prisons facility at Alderson, West Virginia. The Bureau of Prisons operates an intensive drug and alcohol abuse treatment program known as the Residential Drug Abuse Program (RDAP). In order to gain entry to RDAP, a federal inmate must meet certain criteria, including having a diagnosable and verifiable drug or alcohol abuse disorder. By successfully completing RDAP, an inmate can qualify for early release from custody.
Beginning on or about August 19, 2016, Stacey and Kurt Pomrenke were solicited by and began corresponding with Tony Pham a.k.a. Anh Nguyen, the operator of RDAP Law Consultants LLC, a business that solicited prospective and current federal inmates through telephone calls and emails offering assistance in applying for, and qualifying for, RDAP. For a fee, RDAP Law Consultants coached and advised prospective and current inmates on how to gain admission to RDAP by lying to the Bureau of Prisons about the existence, duration, and extent of a qualifying substance abuse disorder.
On August 22, 2016, Stacey Pomrenke entered into a consulting agreement with RDAP Law Consultants, agreeing to pay $7,500. The agreement was revised by Kurt Pomrenke and signed by Stacey Pomrenke and Anh Nguyen. Shortly after entering into the agreement, Nguyen began coaching Stacey and Kurt Pomrenke regarding the steps they would need to take to defraud the Bureau of Prisons to secure Stacey Pomrenke’s admission to RDAP.
In one of the first discussions with Nguyen, Stacey and Kurt Pomrenke made it clear that Stacey Pomrenke only drank a glass or two of wine a week and did not have an alcohol abuse problem or addiction.
Based on the advice of Nguyen, on August 31, 2016, Stacey Pomrenke made an appointment with her physician and falsely stated that over the last three years she had been drinking more and going from one glass of wine up to three glasses of wine at night. As a result of the false statements, Stacey Pomrenke’s physician prescribed her Ativan to prevent physical complications from alcohol withdrawal when she reported to prison.
On September 18, 2016, Nguyen sent an email to Stacey Pomrenke with the subject line “Show Withdrawal Symptoms.” In the email, Nguyen detailed a series of withdrawal symptoms Stacey Pomrenke should show within the first 24 hours of reporting to prison.
Between August 31, 2016 and September 25, 2016, Nguyen continued to work with Stacey Pomrenke and Kurt Pomrenke through telephone calls and emails to develop a false, but plausible story of alcohol abuse and the need for treatment.
On September 26, 2016, Stacey and Kurt Pomrenke traveled to the Bureau of Prisons facility at Alderson, West Virginia. When Stacey Pomrenke reported to the facility, she was intoxicated and under the influence of alcohol. During her initial health screen, Stacey Pomrenke told officials she “had been drinking at least a bottle of wine daily since 2008.” At the time she made the statement, Stacey Pomrenke knew that statement to be false.
As a result of her false statements and fraudulent claims of alcohol abuse and addiction, Stacey Pomrenke was admitted to RDAP on November 2, 2016 and began the program on December 2, 2016. As a result of Stacey Pomrenke successfully being admitted to the RDAP program, Kurt Pomrenke agreed to discuss Nguyen’s assistance with other “high profile potential clients” of RDAP Law Consultants, LLC.
Stacey Pomrenke completed RDAP on or about September 22, 2017. Because she completed RDAP, Stacey Pomrenke’s term of imprisonment was reduced by seven months and one day.
The investigation of the case was conducted by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigations. Assistant United States Attorneys Zachary T. Lee and Lena L. Busscher are prosecuting the case for the United States.
South Carolina Man Sentenced to 40 Years for Production and Receipt of Child PornographyRead the Press Release
PIKEVILLE, Ky. - A South Carolina man, Jonathan Edward Manigault, 36, was sentenced on Monday to 480 months in federal prison, by U.S. District Judge Karen Caldwell, for one count of production of child pornography and one count of knowingly receiving child pornography.
Manigault admitted that he directed Christina B. Mitchell, of Pike County, to take photographs of a 3-year-old victim engaging in sexually explicit conduct. Manigault provided Mitchell with specific, detailed instructions on what types of explicit photographs to produce and provide him. According to the plea agreement, Mitchell transmitted the photographs to Manigault using the Facebook Messenger application. Thereafter, Manigault had Mitchell agree to produce additional images of an additional underage victim.
Manigault pleaded guilty in September 2020.
Mitchell pleaded guilty, on August 26, 2019, to two counts of producing child pornography. According to her plea agreement, Mitchell produced sexually explicit images of a 3-year-old and an 8-year-old victim. Mitchell was sentenced to 420 months in federal prison, in February 2020.
Under federal law, Manigault and Mitchell must serve 85 percent of their prison sentences. Manigault will be under the supervision of the U.S. Probation Office for 15 years, following his release.
“One of the greatest responsibilities of law enforcement is to protect young children from sexual exploitation, abuse, and the damage it causes,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “As this case shows, there are some who prey on astonishingly vulnerable victims. So, we will continue to do our part to ensure that these offenders are identified, prosecuted, and punished. The despicable conduct in this case justifies our efforts, and certainly warrants the punishments the Court has imposed.”
“There is no place in our society for criminals who prey upon our most precious and vulnerable children,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “The sentences administered today are a direct reflection of a criminal justice system that will not stand for such contemptible behavior. The FBI and all of our law enforcement partners stand ready to use all of our available resources to protect our youngest citizens.”
Acting United States Attorney Shier; SAC Brown, FBI, Louisville Field Office; and Chief Chris Edmonds, Pikeville Police Department, jointly announced the sentences.
The investigation was conducted by the FBI Louisville Field Office, FBI Columbia Field Office, and the Pikeville Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. 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 www.projectsafechildhood.gov.
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Serial Armed Robber Sentenced to 20 Years in Federal PrisonRead the Press Release
A man who robbed a series of money remitter businesses in Tulsa and Glenpool was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge John F. Heil III sentenced Justus Edward Murphy, 23, of Tulsa, to 20 years in federal prison followed by three years of supervised release. Murphy was further ordered to pay restitution representing the businesses’ losses, totaling $9,680.40.
“Justus Murphy was a brazen serial robber. He put innocent lives in danger when he used a gun to threaten employees in five of his six robberies,” said U.S. Attorney Trent Shores. “This prosecution was successful because of the coordinated efforts of three law enforcement entities: the Tulsa Police Department, Glenpool Police Department, and the FBI. Then, Assistant U.S. Attorney Eric Johnston adeptly represented the interests of the United States in securing this conviction. I applaud the 20-year sentence handed down by Judge Heil today in federal court. Justice has been served.”
Murphy previously pleaded guilty to six counts of robbery and two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence. Murphy robbed six money remitter businesses including Check ‘n Go, Approved Cash, Advance America, and Check Into Cash. Murphy entered the businesses, asking employees about obtaining loans. In most of the robberies, he handed employees threatening notes, claiming he would harm them if they did not hand over cash from the businesses’ money drawers. In five of the six robberies he threatened employees with a pistol. Examples of the messages were “120 Seconds $5,000 OR I will Shoot U! IF U DO ANYTHING NOT NORMAL YOU’RE DEAD.” and “IF I HEAR SIRENS, YOU AND ME DEAD! YOU HAVE 220 SECONDS TO GET $5,000.”
The Tulsa Police Department, Glenpool Police Department and FBI conducted the investigation. Assistant U.S. Attorney Eric O. Johnston prosecuted the case, which came to the U.S. Attorney's Office as a result of the Supreme Court’s McGirt decision.
Schenectady Man Charged with Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK -Elijah Torres, age 30, of Schenectady, New York, was charged earlier this month with unlawfully possessing a loaded 9mm pistol as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The criminal complaint alleges that Torres, a felon, possessed a loaded 9mm pistol on March 18, 2020 in Schenectady. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Torres appeared last Friday before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending further proceedings.
Torres faces up to 10 years in prison, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
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Santa Clarita Man Pleads Guilty to Fraudulently Obtaining over $1 Million in COVID-19 Relief PPP Loans for His Sham CompaniesRead the Press Release
LOS ANGELES – A Santa Clarita Valley man pleaded guilty today to a federal criminal charge that he fraudulently obtained more than $1 million in Paycheck Protection Program (PPP) loans for his sham companies by submitting fake tax documents and fraudulent employee information.
Raymond Magana, 40, of Santa Clarita, pleaded guilty to one count of fraud in connection with major disaster or emergency benefits.
According to his plea agreement, in May and June 2020, Magana submitted to banks applications for PPP loans that contained false statements about the number of employees and the amount of payroll expenses. Specifically, on June 3, 2020, Magana submitted a PPP loan application to Customer’s Bank for $940,416 for The Building Circle LLC, a company registered in his name. In that application, Magana falsely listed that the company’s average monthly payroll was $376,167, and it employed 40 workers. Magana admitted to submitting fraudulent tax documents that reported $4,402,000 in annual wages paid to 40 employees in 2019 and $852,000 paid in employee wages during the first quarter of 2020.
Both IRS and California Employment Development Department records showed that the company never reported paying any employees, and the underwriting packet also did not include a list of employees or associates for the company, according to an affidavit filed with a criminal complaint in this case.
Investigators later determined that the Pico Rivera address given as The Building Circle’s headquarters was a 980-square-foot, single-family home that appeared to be a residence, not a business. Ultimately, the loan application was approved and $940,416 was funded to Magana’s shell company on June 4, 2020, the affidavit states.
Magana also admitted that he applied for and received a PPP loan of $360,415 for Forward Builders LLC, another shell company, using fake tax documents and false employee information, and falsely claiming $1.73 million in employee wages.
When a bank manager contacted Magana after one of the business accounts receiving PPP funds had been frozen because of suspicious activity, he told the bank “We have all the documents, we got approved,” and he refused to agree to return the improperly obtained PPP funds, the affidavit states. The bank nonetheless kept the $940,416 in defendant’s bank account frozen and defendant could not access it, the plea agreement states.
The actual loss from the two loans that were approved and disbursed was $360,415, according to the plea agreement.
United States District Judge Stanley Blumenfeld Jr. has scheduled a May 11 sentencing hearing, at which time Magana will face a statutory maximum sentence of 30 years in federal prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding. In December 2020, Congress authorized $250 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use at least a certain percentage of the loan towards payroll expenses.
In December 2020, Steven R. Goldstein, 36, of Northridge, Magana’s business partner, pleaded guilty to a single-count information charging him with fraud in connection with major disaster or emergency benefits. Goldstein admitted that he fraudulently obtained $655,000 in PPP loans for his companies by submitting false tax documents and fake employee information. Goldstein’s sentencing hearing is scheduled for March 30.
IRS Criminal Investigation and the Small Business Administration Office of Inspector General investigated this case.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
San Francisco Resident Ordered to Return Stolen Cryptocurrency and Cash to Victims of Multi-Million Dollar Cryptocurrency FraudRead the Press Release
SAN JOSE – Jerry Ji Guo was sentenced today for his role is a scheme to defraud his clients of cash and cryptocurrency in connection with an initial coin offering, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. Guo was ordered to pay $4,392,636.14 in restitution, and was sentenced to a term of six months in prison. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge.Guo, 33, of San Francisco, pleaded guilty to the charge on August 26, 2019. In pleading guilty, Guo admitted he represented himself as an initial coin offering consultant and promised his clients he would perform marketing and publicity services. Rather than perform these services, Guo embezzled the clients’ cash and cryptocurrency.
“Some criminals believe mistakenly that cryptocurrency is beyond the reach of law enforcement,” said U.S. Attorney Anderson. “This case shows we can use criminal forfeiture to compensate fraud victims even when cryptocurrency is used in the fraud.”
“The FBI is tasked with pursuing crimes and the various means and methods that criminals use to commit those crimes,” said FBI San Francisco Special Agent in Charge Craig D. Fair. “In the financial sector, cryptocurrency has emerged as a significant threat as it affords criminals with a space to conduct activity that is particularly difficult to trace and detect,” he said. “In this case, the FBI relied upon partners in the private sector to respond appropriately to legal process so the FBI could make efforts to locate and seize stolen cryptocurrency.”
A federal grand jury indicted Guo on November 15, 2018, charging him with eight counts of wire fraud, in violation of 18 U.S.C. § 1343. Guo pleaded guilty to one count and the remaining counts were dismissed.
In addition to pleading guilty, Guo agreed to cooperate with the government in the identification and return of property through the forfeiture process. On November 14, 2019, the government obtained a stipulated application for a preliminary order of forfeiture. Further, the government obtained warrants to seize the stolen cash and cryptocurrency, and on February 26, 2020, obtained a final order of forfeiture against the stolen property. Accordingly, the government now is in a position to return the stolen property to the victims.
According to papers filed by the government, the current value of the cash and cryptocurrency is now estimated to be more than $20 million. The Money Laundering and Asset Recovery Section, a component of the Department of Justice’s Criminal Division in Washington, D.C., will use the victim restoration process to return stolen property to victims.
In addition to the prison term and restitution, Judge Freeman also sentenced the defendant to a three-year period of supervised release.
Assistant United States Attorneys Daniel Kaleba and Chris Kaltsas prosecuted the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Rochester Woman Pleads Guilty to Production of Child Pornography Involving 8 and 5-Year-Old ChildrenRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rebecca Wilson, 31, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to two counts of production of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between June and August 2018, the defendant engaged in an ongoing pattern of sexual abuse, subjecting an eight-year-old to multiple instances of sexual acts, while producing multiple videos and images of those sexual acts. Between January and April 2020, Wilson engaged in another ongoing pattern of sexual abuse, subjecting a five-year-old to multiple instances of sexual acts, during which the defendant once again produced video and images.
Wilson made these videos and images at the request of James Oliver Young and transferred them to him via Facebook messenger. Charges remain pending against Young. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for June 14, 2021, at 3:00 p.m. before Chief Judge Geraci.
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North Carolina Man Charged for Multiple Center City KidnappingsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jacob Montague, 35, of Wilson, North Carolina, was charged by Indictment for the attempted kidnapping of one woman, and the kidnapping of a second woman in Center City Philadelphia in late 2020. The defendant is currently in custody and will have his initial appearance in federal court on Friday, January 29; the government will be moving for detention pending trial.
According to the Indictment, the first incident occurred on the night of November 1, 2020. Montague allegedly wielded a knife near the intersection of 20th and Spruce Streets in an attempt to abduct the victim. Then the following day, on November 2, 2020, Montague allegedly parked his vehicle near the intersection of 24th and Spruce Streets and abducted a young woman at knifepoint, dragging her into his vehicle.
“Kidnapping is a terrifying experience for the victims,” said Acting U.S. Attorney Williams. “As alleged in the Indictment, the defendant was relentless in his pursuit, trying two days in a row to kidnap someone at knifepoint. We hope everyone can rest easier knowing that he is now facing federal charges.”
“Anyone trying to forcibly kidnap strangers off the street is a clear menace to society,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Violent criminals like that need to be locked up, for everyone’s safety. The FBI thanks our partners at the Philadelphia Police Department and Pennsylvania State Police for their assistance with the investigation that’s led to these federal charges against Jacob Montague.”
If convicted, the defendant faces a maximum possible sentence of life in prison, followed by five years of supervised release, and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Michael R. Miller and Priya T. DeSouza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Life Insurance Broker Admits Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York Life insurance broker today admitted his role in a scheme to fraudulently use his association with the company to solicit investor money, Acting U.S. Attorney Rachael A. Honig announced.
Ivan Ramos, 39, of Hillside, New Jersey, pleaded guilty by videoconference before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud.
According to documents filed in this case and statements made in court:
Ramos, who worked at New York Life selling life insurance, sought out inexperienced investors seeking low-risk investments. The victims met Ramos after purchasing life insurance through him, or through New York Life marketing events, or through mutual acquaintances. Ramos led his victims to believe, through misrepresentations and omissions, that two entities that he controlled, Invexperts LLC and Wealth Seeds Capital LLC, were associated with New York Life when they were not. The victims believed that the money they entrusted to Ramos would be placed in investments through New York Life, and accordingly multiple victims referenced New York Life on the memo line of their investment checks. One victim, for example, attended a New York Life seminar, then subsequently met with Ramos at his office in Edison, and ultimately invested in Invexperts believing it was associated with New York Life.
Ramos falsely told victims that their investments in Invexperts and Wealth Seeds were no-risk with fixed annual returns. Instead of investing their money as he promised he would, Ramos used the funds for purposes not disclosed to the victims, including, among other things, to pay for personal expenses for Ramos and others, to develop a restaurant called “Frisky Bull Barbeque” in Elizabeth, New Jersey, and to repay other investors.
Ramos obtained over $1 million in investor money through the fraudulent scheme.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for June 15, 2021.
The U.S. Securities and Exchange Commission (SEC) has filed a civil complaint against Ramos based on the allegations underlying the securities fraud charge.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Economic Crimes Unit.
New Haven Man Sentenced for Role in Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYRESE STANLEY, also known as “Scoot,” 30, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 21 months of imprisonment, followed by four years of supervised release, for his role in a New Haven-based drug trafficking ring. Judge Chatigny ordered Stanley to serve the first three months of his supervised release in home confinement.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
During the investigation, Anderson “Barry” Atkinson of Hamden was identified as a supplier of heroin to members of the drug trafficking organization. Investigators intercepted calls between Stanley and Atkinson in which Stanley arranged for Atkinson to provide him with heroin for resale. On certain calls, Stanley explained to Atkinson that he needed to raise funds through his drug sales to pay an attorney in a state court matter.
Twenty-seven individuals were charged as a result of this investigation.
Stanley has been detained since his arrest on July 10, 2019. On September 21, 2020, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
Atkinson has pleaded guilty and awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle, Elena L. Coronado and Tara E. Levens. This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle, Elena L. Coronado and Tara E. Levens through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Monongalia County man admits to fentanyl distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Clint Gaines, Jr., of Morgantown, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Gaines, 33, pled guilty today to one count of “Possession with Intent to Distribute Fentanyl.” Gaines admitted to having fentanyl in February 2020 in Monongalia County.
Gaines 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Member of White Supremacist Prison Gang Guilty of Violent Crime in Aid of RacketeeringRead the Press Release
A Texas man pleaded guilty today to violent gang-related activities in the Eastern District of Texas.
According to information presented in court and contained in court filings, Glynnwood Derrick, 46, of Texarkana, joined the Aryan Circle (AC) while in state prison in Texas in 2000, and received his “patch,” or gang tattoo, in 2004 while serving a sentence in federal prison. Derrick held various ranks within the organization over the years, including the ranks of Captain and Major. Derrick attended “church,” or gang meetings, on numerous occasions at the homes of other AC members.
The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Prior to Oct. 2, 2016, AC members learned that an AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. AC members were ordered to attack the former member in order to “X” him, or attack and remove him from the gang, because it violated the AC’s rules to join another organization. A meeting was held at an AC member’s home in the Tyler, Texas area where AC members planned the logistics of the assault.
On Oct. 2, 2016, Derrick and other AC members met at a park near Tyler, Texas, where they had planned to attack the former member, who was also present. Multiple AC members violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care.
Derrick will be sentenced at a date to be determined.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Nicholas J. Ganjei, Acting U.S. Attorney for the Eastern District of Texas, made the announcement.
This case is part of a larger investigation into the Aryan Circle by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. It is being prosecuted by Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas.
Member of White Supremacist Prison Gang Guilty of Violent Crime in Aid of RacketeeringRead the Press Release
BEAUMONT, Texas – A Texas man has pleaded guilty to violent gang-related activities in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei and Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division.
Glynnwood Derrick, 46, pleaded guilty to assault resulting in serious bodily injury in aid of racketeering today before U.S. Magistrate Judge Zack Hawthorn.
“Gang violence has no place in our community,” said Acting United States Attorney Nicholas Ganjei. “The men and women of the Department of Justice, and our law enforcement partners, will do whatever it takes to safeguard our citizens from the predations of organized criminal gangs.”
According to information presented in court and contained in court filings, Derrick joined the Aryan Circle (AC) while in state prison in Texas in 2000, and received his “patch,” or gang tattoo, in 2004 while serving a sentence in federal prison. Derrick held various ranks within the organization over the years, including the ranks of Captain and Major. Derrick attended “church,” or gang meetings, on numerous occasions at the homes of other AC members.
The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Prior to Oct. 2, 2016, AC members learned that an AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. AC members were ordered to attack the former member in order to “X” him, or attack and remove him from the gang, because it violated the AC’s rules to join another organization. A meeting was held at an AC member’s home in the Tyler, Texas area where AC members planned the logistics of the assault.
On Oct. 2, 2016, Derrick and other AC members met at a park near Tyler, Texas, where they had planned to attack the former member, who was also present. Multiple AC members violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care for serious injuries.
This case is part of a larger investigation into the Aryan Circle by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Christopher Rapp of the Eastern District of Texas and Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section.
Man from Arizona sentenced to three years in federal prison for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Travis Clitso, 25, of Pinon, Arizona, was sentenced in federal court on Jan. 22 to three years and one month in prison for assault with a dangerous weapon in Indian Country.
Clitso previously plead guilty on Oct. 8, 2020. According to his plea agreement, Clitso, an enrolled member of the Navajo Nation, admitted to hitchhiking near Cortez, Colorado, on Feb. 6, 2019. A driver picked up Clitso and agreed to give him a ride. They later stopped at a gas station in Shiprock, New Mexico, where Clitso pulled out a knife and stabbed the driver in the throat. Clitso fled the scene, but police officers found and arrested him later the same day. The driver suffered a large cut to his throat. Emergency medical personnel flew him to Albuquerque for emergency treatment. He spent several days in the hospital for his injuries.
The Farmington office of the FBI and the Navajo Nation Department of Public Safety investigated this case. Assistant U.S. Attorney Thomas Aliberti prosecuted the case.
Milwaukee County Employee Sentenced for Fraud SchemeRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 14, 2021, United States District Court Judge Lynn Adelman sentenced Nicole Doxtator (age: 30) of Milwaukee to two years and one day in prison following her conviction for mail fraud and aggravated identity theft. Doxtator, who committed the offenses in connection with her position as an economic support specialist with Milwaukee County Enrollment Services, pled guilty to the charges on September 24, 2020.
According to the indictment, Doxtator and her co-defendant, Granville Holley, accessed and made changes to the closed files of thirteen former Supplemental Nutrition Assistance Program (SNAP) recipients, causing the benefits to be revived. SNAP cards were then mailed, not to the former recipients, but to addresses where Doxtator and Holley would retrieve them. The two used several of the cards to make purchases for themselves. Other were sold for cash.
The scheme, which began in December 2015 and continued through December 2018, resulted in a loss of $49,432.10 to the federally funded program.
In sentencing the defendants, Adelman noted that the crimes were serious not only because they depleted funds designated for truly needy people, but also because the defendants’ conduct undermined public confidence in the program.
“Doxator is heading to federal prison because she exploited her position of trust to steal public funds meant for people in need,” said United States Attorney Krueger. “The Department of Agriculture performed excellent work in bringing this case, which stands as a warning to anyone else who would consider stealing public benefits.”
The case was investigated by the United States Department of Agriculture, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Carol L. Kraft and Kate M. Biebel.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
Local pastor sentenced to 10 years in prison for sexually coercing minor parishionerRead the Press Release
CINCINNATI – The pastor of a Sharonville church was sentenced via video conference in U.S. District Court today to 120 months in prison for sexually coercing a minor female.
Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted in June 2020 to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and Aug. 5, 2019 at his office at the Mision Cristiana el Calvario Church.
Court documents detail that Guerrero told the victim God was speaking to him and the only way to get out of the dark place was for the victim to have sexual relations with Guerrero. The pastor referred to this as a “cleansing process.”
According to the Guerrero’s plea agreement, he communicated with the victim via text messages, audio and video calls on Facebook Messenger. He coerced the victim into sending him sexually explicit photos and engaging in a sexually explicit video call. Guerrero cited several biblical verses while making the requests.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Sharonville Police Chief Steve Vanover announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Local man charged with coercing minor to engage in sexual conductRead the Press Release
HOUSTON – A 42-year-old former Conroe resident is set to appear in federal court on charges of sexual exploitation of children as well as distributing, receiving and possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
Timothy Lee Tyler is scheduled to appear today at 10 a.m. before U.S. Magistrate Judge Frances H. Stacy.
The indictment, returned Jan. 13, alleges that in 2016 Tyler did or attempted to employ, use, persuade, induce, entice and coerce a minor victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of it. On various dates in September 2020, Tyler also allegedly distributed, received and possessed material containing child pornography.
The FBI conducted the investigation with the assistance of Montgomery County Internet Crimes Against Children Task Force which is comprised of several local and federal agencies.
Assistant U.S. Attorneys Stephanie Bauman and Sherri Zack are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Litchfield Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Richard Black, 23, of Litchfield, pleaded guilty in federal court on Monday to distributing fentanyl and possessing fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in May, 2019 Nashua police learned that Black was distributing fentanyl in the Nashua area. Between June 27, 2019 and July 18, 2019, an undercover officer made four purchases of fentanyl from Black. After his arrest on July 22, 2019, officers searched Black’s residence pursuant to a warrant and recovered additional fentanyl. Officers seized approximately 200 grams of fentanyl from the undercover purchases, the search of Black’s person incident to his arrest, and the search of Black’s residence.
Black is scheduled to be sentenced on May 12, 2021.
“Fentanyl is a deadly drug that has caused substantial damage to Nashua and communities throughout our state,” said U.S. Attorney Murray. “Through Operation SOS, we are fighting back against the fentanyl dealers. We will continue to work closely with the Nashua Police Department and our other law enforcement partners to identify and prosecute fentanyl traffickers who are doing business in the Granite State.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Leader of Portland-Area Prescription Drug Trafficking Scheme Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a conspiracy to distribute oxycodone fraudulently obtained from local pharmacies.
Chase Adam Conway, 36, was sentenced to four years in federal prison and three years’ supervised release.
According to court documents, in June 2018, agents from the U.S. Drug Enforcement Administration (DEA) began investigating Conway. They learned that Conway, who had a long history of committing drug frauds, was enlisting female runners to fraudulently obtain oxycodone from pharmacies in the Portland area. Conway would deliberately seek out runners who were heavily addicted to oxycodone and willing to risk criminal liability in exchange for a portion of the prescriptions filled or a small amount of cash.
Conway obtained medical prescription paper and used a home printer to place the names and DEA registration numbers of real doctors on the prescriptions. He would then provide his co-conspirators with fraudulent identification to use in conjunction with the fake prescriptions at various pharmacies. After obtaining the oxycodone pills, Conway redistributed to them for profit to large quantity vendors and street customers.
In the fall of 2018, agents tracked Conway’s car and obtained evidence from several pharmacies where he and his accomplices filled prescriptions. In February 2019, agents executed a search warrant on Conway’s rented room and mobile phone, seizing prescription paper, lists of runners and pharmacies, doctors’ names and DEA numbers, and dozens of communications call logs and text messages with various co-defendants.
On October 6, 2020, Conway was charged by criminal information with conspiracy to possess with the intent to distribute oxycodone and, one week later, he pleaded guilty. As part of his plea agreement, Conway is also subject to a $10,000 money judgement.
This case was investigated by the DEA. It was prosecuted by Kemp Strickland, Assistant U.S. Attorney for the District of Oregon.
Lake County Man Charged in Federal Court with Attempted CarjackingRead the Press Release
CHICAGO — A Lake County man has been charged in federal court with attempted carjacking for allegedly trying to violently carjack a vehicle at a north suburban golf course last summer.
ZAYVEON THOMAS, 19, of Beach Park, attempted to hijack a 2018 Lexus IS300 sedan from a victim in a parking lot of the golf course in Glencoe on July 2, 2020, according to an indictment returned Monday in U.S. District Court in Chicago. The indictment charges Thomas with one count of attempted carjacking, which is punishable by up to 15 years in federal prison. Thomas is currently in law enforcement custody. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Cook County State’s Attorney’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorney Michael Kelly.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Kenner Man Sentenced to Prison for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that DAVID HUNTER (“HUNTER”), age 24, of Metairie, was sentenced to thirty (30) months imprisonment as to Counts 1 and 2 of his Indictment by the Honorable Wendy D. Vitter. Count 1 charged HUNTER with possession of stolen firearms in violation of 18 U.S.C. § 922(j). Count 2 charged HUNTER with being a prohibited person under indictment in possession of firearms in violation of 18 U.S.C. § 922(n). Each sentence will be served concurrently. Additionally, HUNTER has been sentenced to pay a $100 Special Assessment for each count. Upon release from federal imprisonment, HUNTER will be subject to two (2) years supervised release.
According to court documents, in December of 2016, HUNTER stole a gun safe that contained various firearms from a residence in Tylertown, Mississippi. HUNTER then transported the firearms in interstate commerce to the Eastern District of Louisiana. HUNTER possessed and transported the firearms after having been charged in Orleans Parish of state offenses that were punishable by terms of imprisonment exceeding one year. Several firearms including a suppressor/silencer have not been recovered are still missing. The unrecovered firearms are listed below:
Item Description
Make
Model
Caliber
Serial Number
Pistol
Walther
P38
9 millimeter
Unknown
Rifle
Winchester
1892
38-40
180289
Rifle
Rock River Arms
AR-15
.223
Unknown
Pistol
Magnum Research
Desert Eagle
.50
36200016
Suppressor/Silencer
Tactical Innovation, Inc.
TAC 16
.223
1691150
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Louisiana State Police. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Justice Department Settles with New Jersey-Based IT Consulting Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Quantum Integrators Group (Quantum), an IT consulting and staffing company based in New Jersey. The settlement resolves claims that Quantum (1) discriminated against a lawful permanent resident by requiring her, based on her citizenship status, to provide unnecessary documentation before it would refer her for an employment opportunity, and (2) routinely required other work-authorized non-U.S. citizens to present unnecessary documents to prove their eligibility to work.
“Companies cannot make requests for unnecessary work authorization documents because of an individual’s citizenship status, or condition a referral for employment on complying with such a request,” said Gregory B. Friel, Deputy Assistant Attorney General of the Civil Rights Division. “We are pleased that Quantum will work with the Department of Justice to ensure that its policies and practices do not discriminate on the basis of citizenship status.”
The department’s investigation began after a lawful permanent resident filed a discrimination complaint with the Civil Rights Division against Quantum. Based on its investigation, the department concluded that Quantum would not refer her to a client so that she could be considered for an employment opportunity unless she first proved she was authorized to work by providing a copy of her Permanent Resident Card. According to the investigation, Quantum would have referred a U.S. citizen candidate to the client without requiring similar proof of work authorization. Additionally, the department concluded that Quantum routinely required other work-authorized non-U.S. citizens to provide additional and unnecessary documents to prove their eligibility to work.
The Immigration and Nationality Act (INA) prohibits employers from requesting more or different documents than necessary to prove eligibility to work based on employees’ citizenship, immigration status or national origin. All work-authorized individuals, regardless of citizenship status, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA also does not permit an employer to verify an individual’s eligibility to work before a job offer is accepted.
Under the terms of the settlement, Quantum will pay a civil penalty to the United States, revise its policies and procedures, ensure that relevant employees participate in training on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring over the term of the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Jefferson County Man Charged with Aiming a Laser Pointer at HelicopterRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted a Jefferson County man for aiming the beam of a laser pointer at a helicopter, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
A one-count indictment filed in U.S. District Court charges Gabriel Lopez Mathews, 26, of Pinson, with aiming the beam of a laser pointer at an aircraft. According to the indictment, on April 11, 2020, Mathews aimed the beam of a laser pointer at a helicopter operated by the Jefferson County Sheriff’s Office.
The maximum penalty for aiming a laser pointer at an aircraft is five years in prison.
The Federal Bureau of Investigation investigated the case, along with the Jefferson County Sherriff’s Office and the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Internal Revenue Service Agent Charged with Identity Theft and Wire FraudRead the Press Release
A 10-count indictment was unsealed today in federal court in Brooklyn charging Bryan Cho, also known as “Yong Hee Cho,” with possession of a fake foreign passport; aggravated identity theft; making false statements during a background check and wire fraud in connection with the purchase of an Upper East Side co-op apartment. Cho was arrested this morning and is scheduled to be arraigned via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA), announced the charges.
“As alleged, the defendant repeatedly betrayed the trust placed in him as a federal law enforcement officer to further his own schemes by misusing information to which he had access by virtue of his official assignments,” stated Acting United States Attorney DuCharme. “Today’s charges show that no one is above the law, and that this Office remains committed to rooting out corruption wherever it lurks.”
“The public places a great deal of trust in those who carry a shield, but when sworn federal officers use this as a free pass instead of a badge of honor, things go awry. As alleged, that’s what happened in this case when Cho used, to his benefit, proprietary information belonging to an individual he once investigated as part of his official duties. Today’s charges are a reminder that no one is beyond the reach of our corruption laws,” stated FBI Assistant Director-in-Charge Sweeney.
“The Treasury Inspector General for Tax Administration aggressively investigates Internal Revenue Service employees who violate the public’s trust,” stated Treasury Inspector General George. “Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law. I would like to thank the U.S. Department of Justice and the Federal Bureau of Investigation for their support in this effort.”
As set forth in the indictment, Cho has been employed as a Special Agent with Internal Revenue Service Criminal Investigation since 2008. During the course of his employment, Cho worked on an investigation through which he obtained identifying information for an individual described in the indictment as “John Doe.” The investigation was eventually closed, but Cho retained items he obtained during the investigation and used John Doe’s identifying information to create false identification documents and open a corporate entity overseas in John Doe’s name. The fraudulent documents included purported identification cards for the Philippines and the Republic of Marshall Islands in the name of John Doe, but bearing photos of the defendant, and a purported passport in the name of John Doe for the Republic of Guinea-Bissau.
Cho later made false statements during a background investigation, including denying that he possessed any foreign identification documents. Cho also denied any contacts with foreign officials even though law enforcement from the Republic of South Korea had communications with him regarding allegations that South Korean government personnel had paid bribes to the defendant in exchange for information about ongoing U.S. criminal investigations. Cho also submitted multiple false documents in connection with the purchase of a co-op apartment on the Upper East Side of Manhattan, including forged tax returns and bank statements that inflated his income and assets to secure the co-op board’s approval for the purchase, and funneled hundreds of thousands of dollars from a foreign bank account associated with an entity the defendant created using John Doe’s identity to fund the purchase.
If convicted of the top count, wire fraud, Cho faces up to 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Elizabeth Geddes and Turner Buford are in charge of the prosecution.
The Defendant:
BRYAN CHO (also known as “Yong Hee Cho”)
Age: 49
New York, N.Y.E.D.N.Y. Docket No. 21-CR-40 (AMD)
Individual indicted for drug trafficking and firearms possessionRead the Press Release
Honolulu, Hawaii – Ping Hong Lee of Honolulu, Hawaii, was arraigned today before Magistrate Judge Wes R. Porter on an indictment charging conspiracy to distribute and possess with the intent to distribute cocaine, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm and ammunition. He pleaded not guilty to the offenses. Trial is scheduled for March 30, 2021 before Senior District Court Judge Helen Gilmore
US Attorney for the District of Hawaii Kenji M. Price announced the charges.
As set forth in court filings, on January 13, 2021, law enforcement officers observed Lee, the lone occupant of a 2018 Porsche Macan GTS, pull into the pick-up area of a Waikiki Hotel. While there, a male entered the backseat of the Porsche with a dark blue duffle bag and then exited without the dark blue duffle bag. After Lee drove away, law enforcement officers tried to conduct a stop of the Porsche but were unsuccessful. The Porsche and Lee were found minutes later. Within the Porsche, law enforcement officers recovered approximately 11 kilograms (approximately 24 pounds) of cocaine from within the dark blue duffle bag, a loaded Charter Arms .38 caliber pistol, and US currency.
As charged in the indictment, Lee has a prior 2012 federal drug distribution felony conviction.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Lee faces a mandatory minimum sentence of 20 years of incarceration and up to life.
The case was investigated by the DEA. The case is being prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
Indictment Unsealed in Child Pornography InvestigationRead the Press Release
MACON, Ga. – A Georgia resident has been charged with two counts of distribution of child pornography, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. An indictment is only an allegation of criminal conduct, and the defendant is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Stanley Joseph Weaver, 60, formerly of McDonough (Henry County), Georgia, and currently of Jackson (Butts County), Georgia, was taken into custody on Saturday, January 23 after a federal grand jury indicted Weaver on two counts of distribution of child pornography on January 13. Each charge carries a maximum sentence of 20 years imprisonment, a $250,000 fine, no less than five years to life of supervised release and registration as a sex offender upon release from prison.
Weaver was arraigned today before U.S. Magistrate Judge Charles H. Weigle. The Government has moved for pretrial detention, and Weaver is scheduled to have his detention hearing at 11:00 a.m. on Thursday, January 28 before Judge Weigle.
The case is being investigated by the FBI. Assistant U.S. Attorney Katelyn Semales is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603, or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Human Trafficking Has No Home in the Eastern District of TexasRead the Press Release
BEAUMONT, Texas – January is Human Trafficking Awareness month. Each year, law enforcement and service providers reaffirm their commitment to eradicating human trafficking in all forms. Acting United States Attorney Nicholas J. Ganjei is issuing a number of messages to educate the public about human trafficking and, importantly, to dispel many myths and misconceptions about trafficking.
“Human trafficking is modern-day slavery,” said Acting United States Attorney Ganjei. “We proudly partner with federal, state, and local law enforcement, as well as the remarkable men and women who work with victims, to bring traffickers to justice. Those who exploit other human beings for personal gain have no safe harbor in the Eastern District of Texas.”
Often associated only with sex trafficking, “human trafficking” also includes labor trafficking and indentured servitude. Moreover, trafficking offenses occur in every city and region. It is also a common misconception that individuals are kidnapped or forced into trafficking by strangers. Most victims of human trafficking actually know their trafficker and are enticed by promises of good jobs, easy money, a comfortable life, new opportunities, or even the affection of their trafficker. Traffickers do not fit one particular profile. They can be men or women and are from all races, ethnicities, and socio-economic backgrounds.
Acting United States Attorney Ganjei urges the public to assist. “Because these crimes are often unreported, the public plays a valuable role in helping law enforcement to combat human trafficking. Each day, people unwittingly come into contact with victims of trafficking. From ride share drivers, to beauty service providers, to grocery or convenience store workers, we see these hidden victims.” Acting U.S. Attorney Ganjei added, “It us up to all of us to end this terrible practice. If you see something, say something. Please contact law enforcement or the National Human Trafficking Hotline if you suspect human trafficking.”
If you are currently the victim of sex trafficking, labor trafficking, or indentured servitude, or if you suspect someone else is being victimized, please contact the National Human Trafficking Hotline at 888-373-7888 (voice), “BeFree” or 233733 (text), or https://polarisproject.org.
Hospital Pharmacist to Plead Guilty to Attempting to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
A Wisconsin pharmacist has agreed to plead guilty to charges filed today in federal court that he attempted to render hundreds of doses of COVID-19 vaccine ineffective.
According to court documents filed in U.S. District Court for the Eastern District of Wisconsin, Steven R. Brandenburg, 46, of Grafton, Wisconsin, was charged with two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. Brandenburg has agreed to plead guilty to the charges, which each carry a maximum sentence of 10 years imprisonment.
As detailed in the court documents, while working as a hospital pharmacist in Grafton, Wisconsin, on two successive overnight shifts in late December, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from the hospital’s refrigeration unit intending to render the vaccines inert and no longer effective. According to the plea agreement, Brandenburg stated that he was skeptical of vaccines in general and the Moderna vaccine specifically. Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.
After leaving the vaccines out for several hours each night, Brandenburg returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“Tampering with vaccine doses in the midst of a global health crisis calls for a strong response, as reflected by the serious charges the United States has brought today,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
“Distributing the COVID-19 vaccine is critical to overcoming this pandemic, which continues to end lives and upend our economy,” said U.S. Attorney Matthew D. Krueger. “As these charges show, the Justice Department will pursue anyone—and especially any medical professional—who tampers with the vaccine.”
“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for quality, safety, and efficacy,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Those who knowingly tamper with this vaccine place American patients’ health at risk. Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
“Pharmacists rank among some of the most trusted professionals,” said FBI Milwaukee Special Agent in Charge Robert Hughes. “This individual used his special access to tamper with vials of the much needed COVID-19 vaccine. The FBI takes allegations of consumer product tampering very seriously and will use all available resources to bring those to justice who intentionally put the public’s health at risk.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch.
The claims made in the information are allegations that, if the case had proceeded to trial, the government would have had to prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Wisconsin, visit its website at www.justice.gov/usao-edwi. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
Harvey Man Charged with Clean Water Act Violation from 2016 Oil SpillRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that JAMES TASSIN, age 50, of Harvey, was charged on January 25, 2021with violating the Clean Water Act in connection with an oil spill in 2016.
According to the Bill of Information, TASSIN negligently discharged a harmful quantity of oil into a navigable water of the United States, upon adjoining shorelines, and affecting the United States’ natural resources. The spill took place on September 5, 2016, on the edge of Bay Long near the Chenier Ronquille barrier island, which is east of Grand Isle.
If convicted, TASSIN faces up to one year in prison, a fine of up to $100,000, and up to one year of supervised release following any term of imprisonment. A bill of information is merely a charge, and the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Department of Transportation’s Office of Inspector General, and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Halifax County Man Who Sold Drugs Out of a Local Hotel Sentenced to More Than 12 Years as a Career OffenderRead the Press Release
WILMINGTON, N.C. – A Weldon man was sentenced today to 154 months in prison for Possession with Intent to Distribute a Quantity of Heroin, a Quantity of Cocaine Base (Crack) and a Quantity of Marijuana, and Felon in Possession of a Firearm.
According to court documents, in April 2019, Weldon Motic Jackson, 52, sold marijuana to a confidential informant working with the Halifax County Sheriff’s Office (“HCSO”) out of the New Yorker Motel in Weldon. Thereafter, HCSO executed a search warrant at Jackson’s hotel room where they found Jackson with his juvenile child along with another man who was attempting to flush marijuana down the toilet. On a table in the room, deputies found quantities of heroin, cocaine base (crack), marijuana, and drug distribution paraphernalia. In a book bag near the drugs, deputies located a loaded firearm. Upon his arrest by federal authorities, Jackson was found with additional narcotics on his person.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Halifax County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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-00020-M.
Hospital Pharmacist to Plead Guilty to Attempting to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on January 26, 2021, Steven R. Brandenburg (age: 46) of Grafton, Wisconsin, signed a plea agreement acknowledging that he was guilty of attempting to render hundreds of doses of COVID-19 vaccine ineffective, in violation of 18 U.S.C. § 1365.
Brandenburg is charged by an Information with two counts of attempting to tamper with consumer products, with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. Brandenburg has agreed to plead guilty to the charges, which each carry a maximum sentence of ten years’ imprisonment.
As detailed in court documents, while working as a hospital pharmacist in Grafton, Wisconsin, on two successive overnight shifts in late December, Brandenburg purposefully removed a box of COVID-19 vaccine manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from the hospital’s refrigeration unit, intending to render the vaccine inert and no longer effective. According to the plea agreement, Brandenburg believed in various “conspiracy theories”; subscribed to notions of “alternative history”; and was skeptical of vaccines in general and the Moderna vaccine specifically. Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.
After leaving the vaccines out for several hours each night, Brandenburg returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“Distributing the COVID-19 vaccine is critical to overcoming this pandemic, which continues to end lives and upend our economy,” said United States Attorney Krueger. “As these charges show, the Justice Department will pursue anyone—and especially any medical professional—who tampers with the vaccine.”
“Tampering with vaccine doses in the midst of a global health crisis calls for a strong response, as reflected by the serious charges the United States has brought today,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for quality, safety, and efficacy. Those who knowingly tamper with this vaccine place American patients’ health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
“Pharmacists rank among some of the most trusted professionals,” said FBI Special Agent in Charge Robert Hughes. “This individual used his special access to tamper with vials of the much needed COVID-19 vaccine. The FBI takes allegations of consumer product tampering very seriously and will use all available resources to bring those to justice who intentionally put the public’s health at risk.”
“The actions by Mr. Brandenburg are not representative of the great people at Aurora Grafton who, day in and day out, serve our community. I am extremely proud of those who came forward to expose Mr. Brandenburg’s actions. I am also proud of my team’s efforts, their professionalism, hard work and diligence on this case. Finally, I would like to thank all of our federal partners and the Ozaukee County DA’s Office for working with us on this case—it is through these partnerships that we are able to accomplish great things,” said Jeff A. Caponera, Grafton Chief of Police
Adam Gerol, Ozaukee County District Attorney said, “I’m grateful for the hard work and dedication of all the law enforcement officers, and the prosecutors from the federal government, that was necessary to bring an appropriate level of prosecution and punishment to this case. Unfortunately, the facts of this incident simply didn’t fit a charge provided for by Wisconsin law that carried a sufficient measure of punishment. Hopefully, what transpired here will emphasize the need to expand the scope of our existing statutes should anything like this happen again.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight of the United States Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch.
The claims made in the Information are allegations that, if the case were to proceed to trial, the government must prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.
For more information about the United States Attorney’s Office for the Eastern District of Wisconsin, visit its website at www.justice.gov/usao-edwi. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
Grayson County Man Sentenced for Trafficking MethamphetamineRead the Press Release
SHERMAN, Texas – A Sherman, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Anthony Wade Buford, 35, pleaded guilty on June 9, 2020, to conspiracy to distribute and possession with intent to distribute methamphetamine and was sentenced to 235 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
According to information presented in court, in the summer of 2019, Grayson County law enforcement agencies began investigating reports that a drug trafficking group operating in the area was receiving narcotics from a supplier in McKinney, Texas. On August 22, 2019, a deputy with the Grayson County Sheriff’s Office initiated a traffic stop on a vehicle occupied by Buford and a search of the vehicle revealed 242.74 grams of pure methamphetamine and 13.1 grams of suspected black tar heroin. Officers were able to identify co-defendants Jeremy Wayne Helton, a resident of McKinney, as Buford’s source of supply. On August 28, 2019, task force investigators executed a search warrant at Helton’s residence, where they located co-defendant Kennen Depetris and seized 1.568 kilograms of pure methamphetamine, $12,000 cash; four handguns; 3.8 ounces of GHB, digital scales and assorted baggies for drug packaging, fake driver’s licenses; and a quantity of suspected heroin.
Investigators later identified co-defendant Benjamin Christopher Reyes, of Dallas, Texas, as Helton and Depetris’s source of supply. They immediately conducted a “buy-bust” operation on Reyes at Helton’s residence, where they seized an additional two kilograms of pure methamphetamine from him. Further investigation led to the identification of the following additional members of the conspiracy, all of whom were indicted along with Reyes, Helton, Depetris and Buford, including:
- Mishay Gabriele McManigell of Sherman, Texas, who has pleaded guilty and was sentenced to 121 months in federal prison for her role in the conspiracy.
- Coty Allen Pipkin, of Sherman, Texas, who has pleaded guilty and was sentenced to 120 months in federal prison for his role in the conspiracy.
- Melysa Rae Sudderth, of Pottsboro, Texas, who has pleaded guilty and was sentenced to 70 months in federal prison for her role in the conspiracy.
- Stephen Keith Martin, of Sherman, Texas, who has pleaded guilty and was previously sentenced to 188 months in federal prison for his role in the conspiracy.
- Bridget Marie Dobrovolsky, of Durant, Oklahoma, who has pleaded guilty and was sentenced to 120 months in federal prison for her role in the conspiracy.
Two defendants, Reyes and Marlon Glenn Warren, II, of Denison, Texas have pleaded guilty and are awaiting sentencing. Helton previously pleaded guilty and received 210 months in federal prison for his role in the conspiracy. Depetris is currently awaiting trial.
This case was investigated by the Sherman, Denison, and Bells, Texas Police Departments; the Grayson County Sheriff’s Office; the Drug Enforcement Administration’s (DEA); and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant United States Attorney Matthew T. Johnson.
Gilmer County man admits to fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Lee Rutherford, of Linn, West Virginia has admitted to his role in a methamphetamine and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Rutherford, 32, pled guilty today to one count of “Possession with Intent to Distribute at Least Forty Grams of Fentanyl—Aiding and Abetting.” Rutherford admitted to having more than 40 grams of fentanyl, enough to kill more than 13,000 people, in Hardy County in January 2020.
Rutherford is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Fort Dodge Man Sentenced to Federal Prison for Illegal Possession of FirearmRead the Press Release
A man who illegally possessed a gun was sentenced January 25, 2021, to more than two years in federal prison, including credit for 27 days previously served on a related State of Iowa assault conviction.
Justice Terry, 26, from Fort Dodge, Iowa, received the prison term after a September 18, 2020, guilty plea to prohibited person in possession of a firearm.
Evidence at the hearings showed that as of September 30, 2019, Terry was subject to a court order issued by the Iowa District Court for Wright County on April 29, 2019, restraining him from harassing, stalking, or threatening an intimate partner, that included a finding that Terry was a credible threat to the physical safety of the intimate partner. Also, as of September 30, 2019, Terry was an unlawful user of marijuana and/or methamphetamine. On September 30, 2019, Terry was stopped by law enforcement while driving. During the traffic stop, Terry was found in possession (in the vehicle, under the driver’s seat) of a Taurus .357 magnum revolver, loaded with 3 rounds, plus two small baggies of meth and one small baggie of marijuana and various drug user paraphernalia. Terry was stopped by law enforcement because of reports he had assaulted his girlfriend (a passenger in the vehicle) with a handgun. Terry subsequently pled guilty and was sentenced in the State of Iowa for the assault upon his girlfriend.
Terry was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Terry was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Terry is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Wright County Sheriff’s Office, Fort Dodge Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3006.
Follow us on Twitter @USAO_NDIA.
Former Wheeler H.S. Teacher Sentenced to 144 Months in PrisonRead the Press Release
HAMMOND - Brian Kunze, 32, of Valparaiso, Indiana, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to receiving child pornography, announced Acting U.S. Attorney Bell.
Mr. Kunze was sentenced to 144 months (12 years) in prison, followed by 10 years of supervised release and ordered to pay $30,000 ($10,000 each) in restitution to the identified victims of this case.
According to documents in the case, Mr. Kunze, a former Wheeler High School teacher, used his position of authority at the school to cause one of his minor students to take and send him sexually explicit photos. A digital forensic examination of devices seized by federal law enforcement agents from Mr. Kunze’s home also revealed that he knowingly obtained sexually explicit photos of other minors whom he knew to be under the age of 18 because they attended the school where he taught. In total, Mr. Kunze admitting to knowingly receiving and possessing over 150 images depicting minors being caused to engage in sexually explicit conduct.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Porter County Sheriff’s Department and Michigan City Police Department. The case is being prosecuted by Assistant U.S. Attorney Jill Koster.
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Former Vice President of Recycling Company Sentenced to 5 Months for Illegally Storing Hazardous WasteRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bonnie Dennee, 66, Phillips, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to five months in federal prison, followed by a three-year term of supervised release, for conspiracy to store and transport hazardous waste without required permits and manifests, in violation of the Resource Conservation and Recovery Act (RCRA). Dennee pleaded guilty to this charge on October 22, 2020.
Dennee’s co-defendant, James Moss, pleaded guilty to this charge on September 1, 2020, and was sentenced to 18 months in prison. Co-defendant Thomas Drake signed a plea agreement to this charge on December 31, 2019, which was filed on May 21 ,2020. Finally, co-defendant Kevin Shibilski was indicted by a grand jury on September 10, 2020. The indictment against Shibilski included a hazardous waste storage charge, as well as eight counts of wire fraud, and conspiracy to defraud the IRS by not paying over employment taxes and income taxes.
Dennee worked for 5R Processors Ltd. (5R) based in Ladysmith, Wisconsin. 5R was a Wisconsin-based corporation involved in recycling electronic equipment, appliances, and other assets. Dennee pleaded guilty to a criminal information charging that from 2011 to 2016, Dennee, Moss, Drake and others conspired to (1) knowingly store hazardous waste (i.e., broken and crushed CRT glass that contained lead) at unpermitted facilities in Catawba, Wisconsin, Glen Flora, Wisconsin, and Morristown, Tennessee; (2) knowingly transport the hazardous waste without a required manifest; and (3) conceal the above violations from state regulators in Wisconsin and Tennessee, as well as auditors with a nationwide recycling certification program (R2).
At her plea hearing, Dennee admitted to attempting to conceal the illegal storage and transport of the crushed leaded glass from state regulators by various means, including: (1) changing the date labels on the containers; (2) hiding the containers by putting them inside semi-trailers and locking the trailer doors; (3) moving the containers to the back of the warehouse and stacking other pallets in front of them, making it impossible for regulators to see the boxes or inspect them; (4) storing the containers at a warehouse on Artisan Drive in Glen Flora, Wisconsin (known as the “Sunshine Building”), and not disclosing the existence of this warehouse, or its contents, to state regulators or R2 auditors; (5) storing the containers at 5R’s plant in Morristown, Tennessee in two warehouse spaces that did not have electricity or power, and which were referred to by 5R employees as the “dark side” and the “dark-dark side;” and (6) providing the state regulators with inaccurate inventory and shipping records for the leaded glass.
At today’s sentencing, Judge Conley told Dennee that once she left 5R in 2016, she could have reported the criminal conduct to regulators at the Wisconsin Department of Revenue, but she chose not to make such a disclosure. Judge Conley pointed out that her inaction, “let the community down.” Dennee agreed with the Court’s assessment, adding that she could not provide a good reason why she did not come forward after she left the company.
Nonetheless, Judge Conley praised Denee for ultimately doing the right thing and cooperating with the government to help explain and unravel the criminal conspiracy, but noted that Dennee, “still needed to pay a price.” Judge Conley added, “I hope this sentence also delivers a message to others who wish to commit this same conduct.”
The charges against Dennee were the result of an investigation conducted by the Wisconsin Department of Natural Resources, Bureau of Law Enforcement; the U.S. Environmental Protection Agency, Criminal Investigation Division; and IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Former U.S. Government Employee Pleads Guilty to Conspiracy to Steal U.S. Government Records and Defraud U.S. Refugee ProgramRead the Press Release
WASHINGTON – Earlier today in the District of Columbia, Haitham Isa Saado Sad, 42, pleaded guilty to several charges related to his role in a scheme to steal U.S. government records and defraud U.S. refugee programs. Defendant Sad remains held without bond pending sentencing.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin for the District of Columbia, U.S. Department of Homeland Security Inspector General Dr. Joseph V. Cuffari, and U.S. Department of State’s Diplomatic Security Service (DSS) Assistant Director for Domestic Operations Ricardo Colón.
Sad pleaded guilty to conspiracy to steal records and defraud the United States, conspiracy to launder money, and computer fraud and abuse before U.S. District Court Judge Rudolph Contreras of the District of Columbia. Sad is one of three defendants charged in an indictment that was unsealed on Friday, January 22. The indictment charges Sad and two other foreign nationals, Aws Muwafaq Abduljabbar, 42, and Olesya Leonidovna Krasilova, 43, with conspiracy to steal U.S. government records and to defraud the United States, theft of U.S. government records, and conspiracy to launder money, all related to the U.S. Refugee Admissions Program (USRAP) and, in particular, the Iraq P-2 program, which allows certain Iraqis to apply directly for refugee resettlement in the United States. The indictment also charges Krasilova and Sad with computer fraud and abuse. Abduljabbar was previously arrested and remains held without bond. Krasilova remains at large.
According to the indictment and the statement of facts agreed to by Sad as part of his guilty plea, Sad was employed in Amman, Jordan from 2007 to 2016 by U.S. Citizenship and Immigration Services, and Krasilova held a similar position at the U.S. Embassy in Moscow, Russia. As part of their duties, both defendants had access to the State Department’s Worldwide Refugee Admissions Processing System (WRAPS), a database containing sensitive, non-public information about refugee applicants and their family members, as well as the results of security checks and internal assessments by U.S. officials regarding applications. From approximately February 2016 until at least April 2019, the three defendants, led by Abduljabbar, conspired to steal U.S. government records related to hundreds of USRAP applications. Abduljabbar organized and led the conspiracy, and he relied on and paid Sad and Krasilova to steal WRAPS records and information so that Abduljabbar could assist applicants in gaining admission to the United States through fraudulent means. As outlined in the indictment and statement of facts, the theft of USRAP records creates a number of risks to public safety and national security while imposing significant costs on the U.S. government, its taxpayers, and otherwise legitimate refugee applicants negatively impacted by the scheme.
The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum penalty for conspiracy to commit an offense or defraud the United States is five years; the maximum penalty for theft of government records is 10 years; the maximum penalty for conspiracy to launder money is 20 years; and the maximum penalty for the charged computer fraud and abuse is five years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated jointly by the DHS Office of Inspector General and the U.S. Department of State’s Diplomatic Security Service. It is being prosecuted by Assistant U.S. Attorneys Luke M. Jones and Erik M. Kenerson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs assisted.
Former Baltimore Police Officer Sentenced to 14 Months in Federal Prison for Lying to Federal Law Enforcement Officer Regarding the Illegal Sale of Drugs Seized During a BPD InvestigationRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Officer Victor Rivera, age 48, of Nottingham, Maryland, to 14 months in federal prison, followed by two years of supervised release, for making false statements to a federal law enforcement officer in connection with a scheme to sell three kilograms of cocaine seized during a Baltimore Police Department investigation.
The sentence 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.
Victor Rivera joined the Baltimore Police Department (BPD) on July 11, 1994 and November 21, 1999, respectively. In February 2009, Rivera served on a squad with Ivo Louvado, W.J., C.J., P.G., and K.G., that was supervised by W.K.
According to his plea agreement, prior to February 19, 2009, W.J. and C.J. told Rivera they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence on the 1400 block of Ellamont Street, in Baltimore, Maryland. On February 19, 2009, Rivera, Louvado, and other members of the squad were conducting surveillance at the residence of the alleged narcotics trafficker, T.M. Rivera and another member of his squad, W.K., followed a car from that residence to a nearby school where Rivera saw the driver throw something into a trash container. Once the driver left, Rivera and W.K. recovered the trash and found it to be empty kilogram drug wrappers. During this time other officers claimed to have followed a second individual who left the residence and threw trash from the car window, which was found to contain cocaine residue. Rivera and other officers remained at the house until W.J. and C.J. obtained a search warrant from a Baltimore City District Court judge.
As detailed in his plea agreement, Rivera ultimately participated in the search of the residence. While no drugs were found in the house, officers found car keys, including a key that had the ability to activate an alarm in a vehicle remotely. A BPD officer activated the alarm and officers heard the alarm sound in a pickup truck that was parked nearby. Louvado and other officers went to the pickup, where they found a significant quantity of cocaine under an opaque cover that was over the back of the pickup truck. Rivera learned that drugs were found in the truck. Louvado and other officers waited with the cocaine until a SWAT team arrived to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by K.G. After the cocaine was loaded into the surveillance van, Louvado and other officers followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine were turned in to the BPD’s Evidence Control Unit on February 20, 2009. Later that day, a criminal complaint was filed in the United States District Court for the District of Maryland charging T.M. with possessing with intent to distribute five or more kilograms of cocaine.
Rivera, Louvado, and K.G., later discovered three additional kilograms of cocaine in the surveillance van that had been used to transport the cocaine to BPD. These kilograms of cocaine had come from the seizure from T.M.’s pickup truck on February 19 and 20, 2009, but had not been turned in to the BPD on February 20, 2009. Rather than turn this cocaine in to BPD, Rivera, Louvado, and K.G. agreed to sell the cocaine and split the proceeds from its sale.
Rivera sold the cocaine to a confidential informant of his, who trafficked in cocaine. The source sold the cocaine in Baltimore City. Rivera received the proceeds of the sale from his source and then shared them with Louvado and K.G. Ultimately, Rivera received $20,000 in drug proceeds from the sale of the cocaine seized from T.M.’s pickup truck that had not been turned in to BPD.
On March 1, 2017, seven members of the BPD’s Gun Trace Task Force were arrested on federal racketeering charges, including W.J. Following the filing of charges, the FBI continued to investigate misconduct by members of the BPD. On November 1, 2019, Rivera agreed to participate in a voluntary interview with FBI task force officers (“TFOs”). Rivera was told it was a crime to lie to the FBI TFOs interviewing him and he acknowledged he understood. In that interview, Rivera made a number of false statements and material omissions. An example being, the FBI TFO asking, “Did you ever hear of anybody taking any drugs or any money or anything like that from the incident?” to which Rivera replied, “No sir. No.”
Former Baltimore Police detective Ivo Louvado, age 47, of Bel Air, Maryland, pleaded guilty on November 6, 2020, to making false statements to federal agents. No sentencing date has been set for Louvado.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
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Food Suppliers to Pay $250,000 to Resolve Claims of Diluting Spices Sold to PrisonsRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that his office has resolved claims that FlavorPros, LLC; America’s Best Packaging, LLC; Artisan Foods, LLC; Charlene R. Brach; Richard B. Brach; and Richard C. Brach submitted false claims to the Bureau of Prisons (BOP) between October 1, 2011, and December 31, 2018, for food product, particularly spices, that contained significant quantities of filler agents. The food suppliers will pay $250,000 to resolve the claims.
In its complaint, filed November 1, 2019, the United States alleged that FlavorPros, LLC, contracted with the BOP to supply spices that were required by the contract to be in pure condition with no additives, extenders, foreign matter, or flow agents. The United States alleged that FlavorPros sold spices to the BOP that were substantially comprised of filler agent for economic gain. Thus, it was alleged that FlavorPros and its principal, Charlene Brach, submitted false claims for payment by the BOP for the spices that did not meet the purity requirements of the contract. The United States also alleged that Charlene and Richard Brach created Artisan Foods to circumvent administrative suspension of FlavorPros and filed a false claim to the BOP for substandard food product.
As part of the settlement reached today, FlavorPros, America’s Best Packaging, and Artisan Foods will pay the United States $170,000. For their individual roles in the fraud, Charlene Brach will pay the United States $60,000; and Richard B. Brach and Richard C. Brach will each pay the United States $10,000.
“All federal contractors must use tax dollars responsibly and for their intended purpose,” said U.S. Attorney McCoy. “Today’s resolution illustrates the Department of Justice’s emphasis on combating fraud against the government. If a federal contractor fraudulently obtains tax dollars paid by hard-working Americans, this office will act.”
“Contractors that are selected and paid by the government to supply food to inmates are expected to comply with contractual and other standards. When they provide adulterated products, as the defendants allegedly did here, the government is cheated and the health and safety of inmates are placed at risk,” said Kenneth R. Dieffenbach, Special Agent in Charge of the Department of Justice Office of the Inspector General (DOJ OIG) Fraud Detection Office. “The DOJ OIG is committed to rooting out this type of fraud.”
The case was investigated by the U.S. Attorney’s Office for the District of South Carolina and the U.S. Department of Justice Office of Inspector General. The civil settlement was reached for the U.S. Attorney’s Office by Assistant United States Attorneys Beth Warren and Stan Ragsdale, both of the Columbia office.
The claims resolved by this settlement are allegations only. There has been no determination of liability, and the food suppliers did not admit liability.
Anyone who suspects fraud against the Department of Justice or its components should report it at https://oig.justice.gov/hotline
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