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Friday 13 November 2020
Sioux Falls Man Sentenced for Conspiracy to Distribute MethRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 9, 2020, by U.S. District Judge Karen E. Schreier.
Gabriel Orlando Ramirez, a/k/a “Cheech,” age 43, was sentenced to 240 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ramirez was indicted by a federal grand jury on May 8, 2019. A federal jury found him guilty on July 23, 2020.
The conviction was the result of coordinated efforts of the Sioux Falls Area Drug Task Force. “Cheech” Ramirez had been suspected of selling large quantities of methamphetamine in Sioux Falls as early as 2017. Through surveillance of Ramirez’s residence, law enforcement officers gathered information of suspected drug purchasers. In all, Gabriel “Cheech” Ramirez sold over 40 pounds of methamphetamine in Sioux Falls before he was arrested in May 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Dakota Division of Criminal Investigation, the Minnehaha County Sheriff’s Office, the Sioux Falls Police Department, the Drug Enforcement Administration, and the South Dakota Highway Patrol. Assistant U.S. Attorneys Jennifer D. Mammenga and Jeffrey C. Clapper prosecuted the case.
Ramirez was immediately turned over to the custody of the U.S. Marshals Service.
Sex Crime Fugitive Sentenced for Passport Fraud and Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Kenneth Mark Pohlmann (65, Longwood) to three years and two months in federal prison for passport fraud and identity theft. This sentence will be served consecutively to Pohlmann’s Florida state sentence for lewd act upon a child and lewd act in the presence of a child. Pohlmann was found guilty of passport fraud and identity theft after a bench trial on August 18, 2020.
According to testimony and evidence presented at trial and sentencing, Pohlmann applied for a passport in his brother’s name in May 2000 in order to flee the United States after having failed to appear for an Orange County jury trial in June 2000 on child molestation charges. In 2006, Pohlmann renewed the false passport using his brother’s name at the U.S. Embassy in San Jose, Costa Rica.
In 2007, Pohlmann was arrested for cocaine trafficking in Italy using his brother’s name. In 2016, the U.S. Department of State discovered Pohlmann’s fraud as a result of another renewal application.
It is unclear when Pohlmann returned to the United States, but on January 2, 2018, more than 17 years after Pohlmann failed to appear for his Orange County jury trial, special agents with the U.S. Department of State’s Diplomatic Security Service (DSS), working with the Seminole County Sheriff’s Office, tracked down Pohlmann at his mother’s home in Longwood, Florida. Pohlmann was then arrested on the pending child molestation charges and was later convicted of those charges.
After Pohlmann was sentenced to 11 years and 3 months for lewd act upon a child and lewd act in the presence of a child in Orange County, he was transferred to federal court to face the federal charges for passport fraud and identity theft that led to his capture.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, with assistance from the Seminole County Sheriff’s Office and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Serial Fraudster Pleads Guilty to Federal Charges of Conspiracy to Commit Bank Fraud and Aggravated Identity Theft—All Committed While on Supervised Release for a Previous Federal Fraud ConvictionRead the Press Release
Baltimore, Maryland – Boaz Salmon Bratton-Bey, age 37, of Owings Mills, Maryland, pleaded guilty late yesterday to federal bank fraud conspiracy and aggravated identity theft charges, as well as to committing those crimes while on supervised release for a previous federal conviction for a similar scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, Bratton-Bey and his co-conspirators committed numerous acts of bank fraud using the stolen personal identifying information (“PII”) of individual victims, without the victims’ knowledge or permission.
Specifically, on June 5, 2019, Bratton-Bey and his co-conspirators executed an “instant credit” scheme in which a co-conspirator, Terrell Meadows, used a fictitious driver’s license bearing the image of Meadows and the personal information of an individual victim to obtain a store credit card at a home improvement store. The credit application contained the name, date of birth, Social Security Number, and other personally identifying information (PII) of a real person who did not consent to the use of his PII. The credit application was approved and a credit card with a $12,000 line of credit was issued in temporary form instantaneously. Transaction records indicate that on June 5 and June 6, 2019, the account was used to make a total of four purchases at four different store locations. The purchases totaled $5,988.14. Bratton-Bey and Meadows used a U-Haul truck to load and carry away the fraudulently obtained goods. That U-Haul truck bore an equipment number on its front bumper, which was captured by store surveillance cameras.
As detailed in the plea agreement, approximately one month later a U-Haul representative contacted Baltimore County Police to report that the U-Haul truck was stolen because Bratton-Bey had stopped paying for the truck and had not returned it. The truck was located and Baltimore County Police officers conducted a traffic stop, briefing detaining the driver, who was Bratton-Bey. From Bratton-Bey’s pocket, officers retrieved at least 14 credit cards, which featured at least 14 different names of real persons on them. Bratton-Bey’s own name was not on any of these credit cards, though officers were able to identify Bratton-Bey using his real identification, which he produced for them.
Following the seizure of those credit cards, investigators obtained bank records from financial institutions which showed that these cards had been used to commit fraudulent transactions, totaling at least $6,822.03 in actual fraud and at least $1,046.85 in attempted fraud. Additionally, these bank records and surveillance images showed that Bratton-Bey had used at least three of these cards personally for ATM withdrawals. Investigators obtained records from U-Haul regarding the rental of the truck. These records showed that Bratton-Bey had rented the truck using his real name, address, and telephone number. However, Bratton-Bey had paid for the rental of the U-Haul truck using fraudulent credit cards issued to real persons. Bratton-Bey paid a total of $4,039.91 to rent the U-Haul truck through fraudulent transfers and attempted to pay an additional $743.94 using fraudulently obtained funds from one of the credit cards issued in another real person’s name. The total loss amount from the U-Haul rental and the cards recovered from Bratton-Bey following the traffic stop was $12,652.73.
On July 25, 2019, investigators executed a search warrant at Bratton-Bey’s apartment. Law enforcement located counterfeit identification documents bearing photographs of Bratton-Bey and other individuals, credit/debit cards issued to individuals or entities other than Bratton-Bey, mail and financial correspondence addressed to individuals other than Bratton-Bey, and several cell phones and other electronic devices. Investigators recovered at least 12 credit/debit cards issued to individuals other than Bratton-Bey. Investigators also found Bratton-Bey’s real driver’s license, along with a fictitious driver’s license that included Bratton-Bey’s picture and his alias, “Boa Salmon” and a fictitious social security card for the “Boa Salmon” alias. The items recovered from Bratton-Bey’s apartment also included four other counterfeit identifications in the form of fictitious driver’s licenses bearing the PII of real victims, including counterfeit driver’s licenses for Pennsylvania and New York, in addition to Maryland. The total loss amount from the accounts related to the cards recovered from Bratton-Bey’s apartment was $40,222.30.
Bratton-Bey was previously convicted in U.S. District Court in Maryland for bank fraud conspiracy, access device fraud, and aggravated identity theft. For that case, he was sentenced to 102 months in federal prison in July 2012.
Bratton-Bey faces a maximum sentence of 30 years in federal prison for bank fraud conspiracy; and a mandatory two years in federal prison, consecutive to any other sentence, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George L. Russell, III has scheduled sentencing for Bratton-Bey on March 5, 2021, at 1:00 p.m.
Terrell Meadows, age 32, of Rosedale, Maryland, pleaded guilty to bank fraud conspiracy for his role in the scheme on November 5, 2020. Judge Russell has scheduled sentencing for Meadows on March 12, 2021 at 11:00 a.m.
United States Attorney Robert K. Hur commended the Baltimore County Police Department and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Tamera Fine, who are prosecuting the case.
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St. Croix Native Who Fled After a St. Croix Traffic Stop Pleads Guilty to Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI – Malachi Benjamin, 25, pleaded guilty before Magistrate Judge Ruth Miller to possession with intent to distribute cocaine, United States Attorney Gretchen Shappert announced today. Benjamin remains detained on separate drug conspiracy charges. His sentencing date will occur at a later date.
According to court records, on June 14, 2018, Virgin Islands Police Department (“VIPD”) officers conducted a traffic stop in Upper Love, Frederiksted, of a vehicle operated by Glenn David with Benjamin in the front passenger seat. After the traffic stop, officers approached Benjamin to advise him that he was a person of interest in recent double homicide on St. Croix, and Benjamin responded by immediately fleeing the scene on foot.
After Benjamin fled the scene, David, the driver and owner of the vehicle, granted officers permission to search his vehicle. A forensic team of VIPD officers later recovered three pre-packaged baggies of suspected cocaine hidden inside of a Pepperidge Farm container. The suspected cocaine weighed approximately 2 ounces and was recovered from the passenger side floor of the vehicle where Benjamin had been seated. A field test of the contents of the baggies yielded a positive test result for cocaine. The forensic team also collected buccal swabs from cocaine baggies hidden inside of the Pepperidge Farm container and submitted the swabs for DNA analysis. When compared with DNA previously collected from Benjamin, a DNA laboratory confirmed that Benjamin was the source of DNA collected from the cocaine wrappings.
This case was investigated by DEA and the VIPD, and prosecuted by Assistant United States Attorneys Delia L. Smith and Donna Rainwater.
Repeat Offender Charged with Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Atlantic County, New Jersey, man is scheduled to make his initial appearance today after being charged with possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Tisch, 36, of Minotola, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He was arrested by FBI agents today and is expected to appear by videoconference today before U.S. Magistrate Judge Lois H. Goodman.
According to the indictment filed in this case and statements made in court:
A law enforcement investigation revealed that Tisch, living in Ocean County at the time, and who previously had been convicted of child pornography offenses, had distributed images of child sexual abuse over an online social media chat forum. A search of Tisch’s residence found multiple images depicting the sexual exploitation of children on Tisch’s mobile phone.
Tisch was previously convicted of endangering the welfare of a child/possession of child pornography in Ocean County in 2014. The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. The charge of distribution of child pornography, for a repeat offender, carries a mandatory minimum of 15 years in prison, a maximum of 40 years in prison, and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with FBI, under the direction of Special Agent in Charge George M. Crouch Jr., New Jersey Regional Forensics Computer Laboratory, under the direction of Supervisory Special Agent Steven J. Newman, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian and Special Assistant U.S. Attorney Katie Magee Lee of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the defendant are merely accusations and he is presumed innocent unless and until proven guilty.
Providence Man Arrested for Trafficking FirearmsRead the Press Release
BOSTON – A Providence, R.I. man was arrested and charged yesterday with firearms trafficking.
Chiweze Ihunwo, 24, previously of Randolph, was charged by criminal complaint with engaging in the business of dealing in firearms without a license. Ihunwo will remain in federal custody pending a detention hearing.
According to the complaint, Ihunwo acquired numerous firearms in North Carolina and then re-sold them for a profit. In addition, Ihunwo allegedly made arrangements to sell firearms to a person who was soon thereafter arrested in connection with a June 23, 2020 shooting incident on I-95 in Providence, R.I. According to the charging, Ihunwo also made numerous social media posts referencing firearms or ammunition.
During a search of Ihunwo’s residence in Providence, an AK-style handgun and various rounds of ammunition were recovered.
The charge of dealing in firearms without a license carries a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Assistance was provided by the Randolph Police Department, the Providence Police Department and the Rhode Island State Police. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Prince George’s County Felon Sentenced to 81 Months in Federal Prison for Possession with Intent to Distribute Marijuana and Illegal Possession of a Loaded GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Renaldo Solomon Hayes, age 28, of Seat Pleasant, Maryland, to 81 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition and for possession with intent to distribute marijuana. Judge Hazel also entered an order requiring Hayes to forfeit $1,468 in apparent drug proceeds, the .357-caliber semi-automatic pistol and ammunition seized at the time of his arrest, as well as the Cadillac sedan which he was driving at the time of his arrest.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Chief Jarod J. Towers of the Cheverly Police Department.
According to his plea agreement, on the evening of March 7, 2018, a Cheverly Police Department officer conducted a traffic stop of the black Cadillac sedan owned and being driven by Renaldo Hayes. While talking to Hayes, the officer noticed a strong odor of marijuana coming from the vehicle. After Hayes was directed to get out of the car and the officer smelled burnt marijuana coming from Hayes, the officer searched Hayes and recovered two large folds of cash from his front left pants pocket. A search of the vehicle recovered approximately 54 grams of marijuana, in two plastic bags, hidden in a makeshift secret compartment under his vehicle’s rear seat. Two officers then attempted to arrest Hayes, but Hayes tried to run away, tensing, flailing, and pushing the officers to resist until the officers had to use their Tasers. Once Hayes was under control, the search of the vehicle resumed and officers recovered a loaded .357-caliber semi-automatic pistol, with a round in the chamber and a full 10-round magazine. Hayes also had two cell phones in the vehicle. Law enforcement located text messages on the phones referring to Hayes’ distribution of marijuana, including a planned sale that evening. The cash recovered from Hayes’ pocket totaled $1,468.
Hayes admitted that he possessed the firearm and ammunition in connection with his drug trafficking. Hayes was prohibited from possessing a firearm or ammunition based on his prior felony convictions, including two separate convictions for attempted second-degree murder. Hayes was also on parole from a prior conviction at the time of this conduct.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
United States Attorney Robert K. Hur praised the ATF and the Cheverly Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who prosecuted the case.
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Previously Convicted Felon who Committed Shooting Sentenced to 75 Months in Prison for Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man who is a previously convicted felon was sentenced today to 75 months in prison for possessing a firearm and ammunition in connection with an incident in which he shot another individual, U.S. Attorney Craig Carpenito announced.
Andre Shoulars, 28, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. U.S. District Judge Brian R. Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On Nov. 4, 2018, at approximately 2:30 p.m., the victim was in the area of 340 Hawthorne Avenue in Newark, speaking with another individual. Shoulars approached the victim, pulled out a semiautomatic handgun, and began firing several shots at the victim. Although the victim was able to run away as Shoulars fired the handgun, the victim was hit in the foot with one .40 caliber bullet fired by Shoulars. The victim was treated at a hospital for the bullet wound.
Newark police officers responded to the scene of the shooting and recovered five .40 caliber shell casings from the street. Officers also recovered videotapes from several surveillance cameras which were stationed in the area of the shooting. These videotapes showed Shoulars walking around in the area just before the shooting, and also showed Shoulars shooting at the victim and then running away.
In addition to the prison term, Judge Martinotti sentenced Shoulars to three years of supervised release.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian .
U.S. Attorney Carpenito credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Port Saint Joe Man Convicted of Producing and Possessing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – A federal jury in Pensacola has convicted Clark Downs, 71, of Port Saint Joe, Florida, on one count of producing child pornography and one count of possessing child pornography. The guilty verdict, reached by the jury on Thursday at the conclusion of a 3-day trial, was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.
“Child exploitation is horrendous and affects the most vulnerable members of our communities,” said U.S. Attorney Keefe. “We will continue working tirelessly with our law enforcement partners to protect our children from abuse by investigating and prosecuting criminals like Downs.”
In November 2014, Downs intentionally coerced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. In April 2018, Downs was found to be in possession of material containing child pornography.
“The teamwork approach from all law enforcement agencies involved led to the successful conclusion of this case,” said Gulf County Sheriff Mike Harrison. “I am proud of their hard work and dedication.”
Downs’ sentencing hearing has been scheduled for January 28, 2021, at the United States Courthouse in Pensacola.
“I commend the fervent efforts of our members and our law enforcement partners in working to protect Floridians, especially the most innocent and vulnerable among us,” said Florida Department of Law Enforcement’s Pensacola Regional Operations Center Special Agent in Charge Jack Massey. “Let this serve as a warning to those who would exploit and abuse children in our state: we will be relentless in bringing you to justice.”
The case was investigated by the Gulf County Sheriff’s Office, the Florida Department of Law Enforcement, and Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorneys Michelle Spaven and Aine Ahmed.
“The crimes this child predator has committed cannot be undone,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “We hope this guilty verdict provides another step in recovery for his victim.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Press Release - U.S. v. DownsPoinciana Woman Indicted for Making False Statements to the Social Security AdministrationRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Isis Baldwin (38, Poinciana) with three counts of making a false statement to a federal agency. If convicted, Baldwin faces a maximum penalty of five years in federal prison on each count.
According to the indictment, Baldwin made false statements to the Social Security Administration (SSA) in relation to her daughter’s receipt of Supplemental Security Income. Specifically, Baldwin made material misrepresentations regarding her daughter’s living arrangements during an interview with an SSA employee. Baldwin subsequently submitted a statement to SSA in which she falsely represented that her daughter had moved to a different address. Baldwin also provided a falsified lease agreement in support of her false claim regarding her daughter’s new living arrangements.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Social Security Administration, Office of the Inspector General. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Parolee Who Allegedly Stole Humvee from Army Reserve Facility in Upland Charged in Federal Court with Theft of Government PropertyRead the Press Release
LOS ANGELES – A Pomona man who allegedly went to an Army Reserve Center in Upland, drove away with a military Humvee worth more than $200,000, and briefly led police on a chase through residential streets in Pomona was charged today in federal court with theft of United States government property.
Armando Garcia, 29, who is currently on parole after being convicted last year in state court on theft and burglary charges, was named today in a criminal complaint filed in United States District Court. Garcia, who was taken into state custody following the police chase on Monday, is expected to be turned over to the federal authorities later this month.
The complaint alleges that Garcia stole a militarized High Mobility Multipurpose Wheeled Vehicle – commonly known as a Humvee – midday on Monday. Soon after Garcia drove off with the semi-armored combat vehicle with a turret mount, Pomona Police officers saw the Humvee and attempted to make a traffic stop of the unlicensed vehicle, according to the complaint.
“During the pursuit, which lasted approximately four minutes, the Humvee traveled at excessive speeds, drove on the wrong side of the street (in the direction of oncoming traffic), failed to stop at multiple red lights and stops signs, and failed to signal for turns,” according to an affidavit filed with the complaint. Garcia stopped the Humvee in front of a residence on East Kingsley Avenue in Pomona, where he was taken into custody without further incident.
Inside the Humvee, police found a large pair of bolt cutters and an Army-approved padlock that appeared to have been cut, according to the complaint, which notes the padlock had secured a steel wire put in place to prevent the turning of the steering wheel inside the vehicle.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charge in the complaint, Garcia would face a statutory maximum sentence of 10 years in federal prison.
This matter is being investigated by the FBI’s San Gabriel Valley Safe Streets Task Force. The Pomona Police Department is the sponsoring agency of the Task Force and has hosted the task force since its inception in 2008.
This case is being prosecuted by Assistant United States Attorney Susan Har of the General Crimes Section.
Owner of Durable Medical Equipment Companies Admits Role in $16 Million Dollar Kickback SchemeRead the Press Release
NEWARK, N.J. – The owner of a group of related durable medical equipment (DME) companies today admitted his role in a conspiracy to pay kickbacks in exchange for durable medical equipment, Attorney for the United States Rachael A. Honig announced.
Albert Davydov, 28, of Rego Park, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with conspiring to violate the Anti-Kickback statute.
According to documents filed in this case and statements made in court:
Davydov, the owner of nine DME companies, participated in a scheme to pay kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Once Davydov and his conspirators received the completed doctor’s orders, they billed Medicare and other federal and private health care benefit programs for the braces. Davydov concealed his ownership of the DME companies by falsely reporting to Medicare that various straw owners owned the companies.
As part of his plea agreement, Davydov agreed that the improper benefit conferred was over $16 million for the charged conspiracy to violate the federal Anti-Kickback statute. The conspiracy charge to which Davydov pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 25, 2021.
Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the Opioid Abuse Prevention & Enforcement Unit.
Oshkosh Resident, Stopped by Operation Kick Boxer, Sentenced for Distribution of Child PornographyRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on November 12, 2020, Martin E. McKeever (age: 51) of Oshkosh, Wisconsin, was sentenced to 60 months in federal prison by Senior United States District Judge William C. Griesbach for distribution of child pornography.
According to court records, McKeever, a longtime youth hockey and lacrosse coach, possessed and distributed numerous digital images and videos of child pornography. McKeever’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).
In pronouncing sentence, Judge Griesbach noted the serious nature of the charge and the need for just punishment. Following his release from prison, McKeever will spend five years on supervised release. McKeever also will be required to register as a sexual offender.
This case was investigated by the FBI’s Milwaukee and Green Bay Offices, as well as the Manitowoc and Winnebago County Sheriffs’ Offices. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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O'Fallon Man Charged with Producing and Possessing Child PornographyRead the Press Release
Dwayne E. Robinson, of O’Fallon, Illinois, has been charged with sexually exploiting a minor and
possession of prepubescent child pornography. The 57-year old was arraigned on the two-count
indictment late last month. According to the indictment, on July 26, 2018, Robinson (also known as
“Rob”) employed, used, persuaded, induced, and enticed a minor to engage in sexually explicit
conduct so that he could produce a visual depiction of that conduct. The indictment further alleges
that, on June 10, 2020, Robinson knowingly possessed a device that contained prepubescent child
pornography. Robinson is also facing state charges related to these offenses.An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed
to be innocent of a charge beyond a reasonable doubt to the satisfaction of a jury.If convicted of sexual exploiting a minor, Robinson faces 15-30 years imprisonment. Possession of
prepubescent child pornography is punishable by as much as 20 years imprisonment. Both charges
carry a fine of up to $250,000 and a possible lifetime term of supervised release. Trial is
presently scheduled for Dec. 28, 2020, in East St. Louis.Anyone who believes they or someone they know may have been victimized by Mr. Robinson is strongly
encouraged to contact Detective Nick Schmidt with the O’Fallon Police Department by calling (618)
624-9542.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May
2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and
abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation
and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to
locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and
rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on
the tab “resources.”The case was investigated by the O’Fallon Police Department and the United States Secret Service
Central and Southern Illinois Financial and Cybercrimes Task Force, with assistance from
the St. Clair County State’s Attorney’s Office.Nitro Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Michael LeRose, 32, of Nitro, was sentenced to 30 months in federal prison for being a prohibited person in possession of a firearm.
LeRose previously pled guilty and admitted that on June 9, 2020, law enforcement officers executed a search warrant on his residence. Inside they recovered a .22 caliber rifle, a 5.56 mm caliber semi-automatic rifle, two 9mm handguns, two AM-15 rifle receivers, and a full auto conversion kit for a semi-automatic rifle. They also recovered assorted ammunition, a homemade silencer, marijuana and psychedelic mushrooms. A tactical vest also was found in a separate search of his car. LeRose acknowledged that his addiction to drugs prohibited him from possessing firearms, as he was a user of multiple illegal narcotics.
The Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney L. Alexander Hamner handled the prosecution.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00097.
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Nigerian National Pleads Guilty to Defrauding Victims Using Online ScamsRead the Press Release
BOSTON – A Nigerian national pleaded guilty yesterday in connection with defrauding victims using various online scams during the COVID-19 pandemic.
Esogie Osawaru, 27, pleaded guilty to one count of wire fraud. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for March 11, 2021. Osawaru was arrested in June 2020 along with a co-defendant, Nosayamen Iyalekhue.
Osawaru and, allegedly, Iyalekhue participated in a series of romance, pandemic unemployment insurance, and other online scams designed to defraud victims by convincing them to send money to accounts controlled by the defendants. To carry out the scams, the defendants allegedly used false foreign passports in the names of others, but with their photos, to open numerous bank accounts, and in turn directed the victims to send money to these accounts. Osawaru and, allegedly, Iyalekhue then rapidly withdrew the victims’ money from various bank branches and ATMs, often multiple times during a single day. It is alleged that the schemes included collecting unemployment insurance in the name of others during the COVID-19 pandemic.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The defendant is also subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Businessman Pleads Guilty to Tax EvasionRead the Press Release
A Woodsburgh, New York, businessman pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Irwin Jacobs, 68, was a 50 percent owner of J K Apparel Sales Co. Inc. and S&I Sales Co. Inc., which collectively operated out of New York, New York. Jacobs also held an ownership interest in Prestige Global Co. Ltd., a Taiwanese company. J K Apparel was the exclusive representative for Prestige Global in the United States.
Between 2006 and 2014, Jacobs received income from these businesses that he did not report to the IRS on his tax returns. Jacobs directed Prestige Global to wire more than $4.4 million to third parties to pay personal expenses for himself and members of his family, including travel, non-business-related legal bills, expenses associated with his personal residence, and personal credit card bills. During the years 2010 through 2014, Jacobs also used an S&I Sales credit card to pay more than $200,000 in personal expenses, including leisure travel for himself and his family, medical and dental bills, non-business legal fees, and household expenses.
Jacobs admitted that his failure to report this additional income caused a tax loss to the IRS of more than $1.3 million.
U.S. District Judge Pamela K. Chen set sentencing for April 7, 2021. Jacobs faces a maximum sentence of five years in prison, as well as supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa Siskind and Kathryn Sparks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Jersey Assistant U.S. Attorney Mary E. Toscano Among Those Honored by the 68th Annual Attorney General’s AwardsRead the Press Release
NEWARK, N.J. – Attorney General William P. Barr has announced the recipients for the 68th Annual Attorney General’s Awards, recognizing Department of Justice employees and partners for extraordinary contributions to the enforcement of our nation’s laws.
Among the honorees this year is Assistant U.S. Attorney Mary E. Toscano, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office-District of New Jersey (USAO-DNJ). AUSA Toscano is one of 240 DOJ employees who received awards, while 27 non-department individuals are also being honored for their work. This year, due to coronavirus restrictions, Attorney General Barr is honoring recipients virtually.
“I am honored to recognize the recipients of this year’s Attorney General’s Awards, whose tireless work and steadfast dedication have proven critical to enforcing the rule of law and protecting all Americans,” Attorney General Barr said. “Those honored today have demonstrated exceptional efforts and made tremendous personal sacrifices throughout their time working at the Department of Justice, and for that, I am truly thankful.”
AUSA Toscano was one of two winners of the Attorney General’s Award for Excellence in Management, which recognizes outstanding administrative or managerial achievements that have significantly improved operations, productivity, or reduced costs.
In August 2017, the USAO-DNJ initiated a Violent Crime Initiative for the City of Newark in light of a serious and still-developing violent crime problem. AUSA Toscano, then the Chief of the Organized Crime/Gangs Unit, was assigned to get the VCI off the ground and manage and supervise it. She rapidly put together a federal, state and local partnership led by herself; the Essex County Prosecutor’s Office; Newark’s Department of Public Safety; and the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration, with the goal of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate, share intelligence, and pool resources to prosecute violent offenders who endanger the safety of the community.
AUSA Toscano has led the Newark VCI for over three years, during which Newark has seen a sharp decrease in overall crime and violent crime. Between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victim. In 2019, the number of shooting victims and shooting incidents declined another 39 percent compared to 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.
“These successes simply would not have been possible without Ms. Toscano’s close management and careful direction,” U.S. Attorney Craig Carpenito said. “The Newark VCI has not only improved community safety, but has strengthened the relationships among federal, state, county and city agencies. As a result of the trust developed among the participants, the Newark VCI has enjoyed not only success with respect to reducing violence, but also in improving relationships among the various stakeholders. Ms. Toscano’s management is key to this success as well.”
For her work on the Newark VCI, AUSA Toscano was honored in October 2019 with a Proclamation from the City of Newark, recognizing her considerable contributions to public safety in Newark. Mayor Ras Baraka’s proclamation stated that the VCI “has had a dramatic impact on crime in Newark,” and credited AUSA Toscano for her work “to make Newark a safer, more empowered, and more equitable City.”
In 2018, U.S. Attorney Carpenito asked Ms. Toscano to stand up a second VCI, this one focusing on Jersey City, New Jersey, which operates in much the same fashion. Ms. Toscano has managed and supervised both VCIs concurrently for over a year – in addition to her other duties as Deputy Chief of the Criminal Division. The results in Jersey City have been equally dramatic. Violent crime was down 30 percent in Jersey City in 2019, compared to 2018. The goal of the Mayor of Jersey City entering 2019 had been to obtain a 10 percent reduction; the VCI helped far exceed this goal.
AUSA Toscano has been a key advisor in helping her colleagues to establish more recent VCIs in Trenton, Camden, and Paterson, New Jersey. She has trained local police departments in these cities on the operation of the VCI model and has been invaluable as a resource to the AUSAs who are getting these VCIs off the ground. Her management has been critical to the USAO-DNJ’s efforts to combat violent crime across the entire State of New Jersey.
AUSA Toscano joined the DOJ in 2007 through the DOJ Honors Program, as a Trial Attorney in the Narcotics & Dangerous Drugs Section. She first joined the USAO-DNJ as a Special Assistant U.S. Attorney, before being hired as an AUSA in 2012. She was promoted to Deputy Chief of the General Crimes Unit in 2015; became the Chief of that Unit in 2016; and later became the Chief of the OC/Gangs Unit. She has served as Deputy Chief of the Criminal Division since March 2018. In that capacity, she supervises the OCDETF/Narcotics, OC/Gangs, and Violent Crimes Units, in addition to managing the VCIs in Newark and Jersey City.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
NDTX Round-Up: November 6-12Read the Press Release
GUILTY PLEA – ENRIQUE BACA-TORRES
On November 10, Enrique Baca-Torres, 39, plead guilty to aiding and abetting possession with intent to distribute methamphetamine. Undercover officers met with Baca-Torres and another coconspirator at Dallas gas station. Baca-Torres and the coconspirator loaded a speaker that contained approximately 13 kilograms of methamphetamine into their vehicle. As Baca-Torres departed the gas station, he was stopped by Dallas County Sheriff’s Office for a traffic violation. A law enforcement canine detected the drugs located in the vehicle. Baca-Torres faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Rachael Jones is prosecuting this case.
SENTENCING – MICHAEL ALLEN GIBBS
On November 12, Michael Allen Gibbs was sentenced to 51 months in federal prison for possession with intent to distribute a controlled substance. During a post-arrest interview, Gibbs admitted to purchasing heroin from two individuals with the intention of distribution. Gibbs also was in possession of three handguns and multiple rounds of ammunition. This case was investigated by the Texas Department of Public Safety and the Dallas Police Department. Assistant U.S. Attorney P.J. Meitl.
SENTENCING – MACLEAN MAFO
On October 22, Maclean Mafo, 41, was sentenced to 98 months in federal prison and ordered to pay $1,999,083 in restitution for wire fraud. Mafo devised a scheme to defraud the IRS and obtain money by fraudulent means. He unlawfully obtained personal identification information of U.S. taxpayers including names addresses and Social Security numbers. Mafo used the stolen taxpayer identification information to electronically file bogus individual IRS tax returns. He opened bank debit accounts to receive the fraudulently tax refunds and converted them to use for himself and others. This case was investigated by the IRS – Criminal Investigations. Assistant U.S. Attorney Nick Bunch prosecuted this case.
SENTENCING – RAMON COSCOLLUELA
On October 8, Ramon Coscolluela, 42, was sentenced to 57 months in federal prison and ordered to pay $50,000 in restitution for laundering of monetary instruments. Coscolluela met with an undercover officer in September 2017 at a purported investment office. The undercover officer explained that he had a large sum of cash which originated from cocaine sales that needed to be cleaned. In a subsequent meeting, Coscolluela agreed that, for a fee, he would disguise the source the drug sales through different monetary instruments and eventually return the drug proceeds back to the undercover officer. Over the course of the conspiracy, Coscolluela delivered six monetary instruments totaling $188,600. This case was investigated by IRS – Criminal Investigations and the FBI. Assistant U.S. Attorney John De La Garza prosecuted this case.
Monongalia County man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry Bruce Heaster, of Morgantown, West Virginia, has admitted to his role in a drug trafficking conspiracy, U.S. Attorney Bill Powell announced.
Heaster, 55, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Heaster admitted to working with others to distribute the drugs from March 2018 to September 2020 in Monongalia County and elsewhere.
Heaster 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 Zelda E. Wesley is prosecuting the cases on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Milledgeville Probationer Sentenced to Prison for Crack Cocaine DistributionRead the Press Release
MACON, Ga. – A Milledgeville, Georgia probationer who admitted possessing 445 grams of crack cocaine and cocaine was sentenced to federal prison for distributing the illegal drugs, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Yves Blake, 37, of Milledgeville, was sentenced by U.S. District Judge Tilman E. (Tripp) Self on Thursday, November 12 to 125 months in prison to be followed by three years of supervised release after pleading guilty to possession with intent to distribute cocaine. There is no parole in the federal system.
On July 19, 2017, law enforcement officers with the Ocmulgee Drug Task Force and Baldwin County Sheriff’s Office executed an arrest warrant for a suspect at 150 North Jackson Street in Milledgeville, the suspect’s last known address. Blake, the caretaker of the home, consented to a search for the individual and agents saw, in plain view, illegal drugs, including crack cocaine. Blake was arrested and agents found more crack cocaine on his person. Blake told agents he had a significant amount of crack cocaine that he obtained from a source in Atlanta. Agents also found a stolen firearm, which Blake admitted he had obtained in Atlanta. According to the DEA crime lab, Blake possessed approximately 360 grams of crack cocaine and 85.65 grams of cocaine, which Blake admitted was his and that he intended to distribute. Blake was previously convicted and sentenced to 12 years in prison for possession with intent to distribute cocaine and was on probation when he was arrested.
“Repeat offenders face significant federal prison sentences, without parole, for choosing to continue their criminal behavior,” said U.S. Attorney Charlie Peeler. “I want to thank the Ocmulgee Drug Task Force and our local and federal partners for their work in this case.”
The case was investigated by the Drug Enforcement Administration (DEA), the Ocmulgee Drug Task Force and the Baldwin County Sheriff’s Office. Assistant U.S. Attorney Steven Ouzts prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Miami Man Sentenced to Twenty Years in Prison for Plotting to Kill Federal Judge and Federal ProsecutorRead the Press Release
Miami, Florida – U.S. District Judge Beth Bloom has sentenced Matthew Alexander King (23, Miami) to 20 years in federal prison for retaliation against a federal judge and solicitation to commit murder.
King had pleaded guilty to these charges on February 10, 2020.
According to court documents, King conspired to kill a U.S. District Judge and a federal prosecutor in Miami who previously handled a 2018 case where King was found guilty of murder-for-hire. In the previous case, King was prosecuted by an Assistant U.S. Attorney for the Southern District of Florida for hiring a hit-man to kill several family members of his estranged wife. Following a conviction in that case, the federal judge sentenced King to 97 months in federal prison.
Unhappy with the outcome, King then attempted to hire another hitman to kill the judge, the prosecutor, and six others. King also offered money to the hitman to murder the FBI agent who had investigated his case, a witness who had cooperated with authorities, his defense counsel, and the same three family members of his estranged wife whom he initially tried to have killed. Unbeknownst to King, the person he attempted to hire for the murders was actually an FBI undercover agent posing as a hitman. King unwittingly shared his plans with the agent while being secretly recorded on video.
Judge Bloom ordered King’s sentence to run consecutive to the previous 97 months’ sentence that he is currently serving.
This case was investigated by Federal Bureau of Investigation and the U.S Marshals Service. In light of the fact that one of the alleged victims was a federal prosecutor in the U.S. Attorney’s Office for the Southern District of Florida, this prosecution was transferred to the U.S. Attorney for the Middle District of Florida. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Manhattan Investment Fund Manager Convicted of Securities Fraud, Wire Fraud, and Investment Adviser Fraud ChargesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that DONALD LAGUARDIA was convicted yesterday following a five-day jury trial before the Honorable Lewis A. Kaplan. As the jury found, between 2013 and 2016, LAGUARDIA, the chief executive officer and co-founder of a New York-based investment firm, L-R Managers, LLC, lied to investors and misappropriated money from investment funds managed by LAGUARDIA through L-R Managers. The jury convicted LAGUARDIA of three counts: securities fraud, investment adviser fraud, and wire fraud.
Acting U.S. Attorney Audrey Strauss said: “As a jury unanimously determined, Donald LaGuardia lied to investors about how their invested money would be utilized, failing to disclose that much of it would be spent on business and personal expenses. Further, LaGuardia continued to lie in soliciting additional investors even after he was well aware his company was in financial distress. Now he awaits sentencing for his crimes.”
According to the Indictment, evidence presented during the trial, court documents, and statements in open court:
From in or about 2013 through in or about 2017, LAGUARDIA solicited millions of dollars from investors for the LR Global Frontier Master Fund and two related feeder funds (collectively, the “Frontier Funds”), which had a stated focus on investments in “frontier” markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia. Contrary to LAGUARDIA’s representations, and in breach of his duties to investors in the Frontier Funds, LAGUARDIA misappropriated more than $1.2 million in investors’ money to finance L-R Managers’ payroll, rent for its office space on Park Avenue in Manhattan, and hundreds of thousands of dollars in charges on the firm’s credit card, among other unauthorized expenses. At least $191,000 of the misappropriated money went directly to, or for the benefit of, LAGUARDIA personally.
In one example, in 2013, LAGUARDIA solicited an $800,000 investment in the Frontier Funds from an investor (“Investor-1”). Upon receipt of Investor-1’s money, an L-R Managers employee sent an email to LAGUARDIA and another person asking for approval to forward the $800,000 to the Frontier Funds. LAGUARDIA responded, “Dont [sic] wire anything yet!” LAGUARDIA then caused approximately $390,000 of Investor-1’s investment never to be transmitted to the Frontier Funds, but instead to be used to pay himself approximately $52,000 and for various other personal and business expenses.
By September 2015, L-R Managers faced substantial financial difficulties. On September 1, 2015, an L-R Managers principal sent an email to LAGUARDIA and others at the firm stating that it would be “ethically troubling to accept money into the [Frontier Funds] when [L-R Managers] can no longer support . . . payroll and mission critical services.” Nevertheless, just a few days later, a new investor solicited by LAGUARDIA (“Investor-2”) made a $2 million investment into the Frontier Funds. Prior to this investment, LAGUARDIA concealed his firm’s near insolvency from Investor-2 and did not disclose that the Frontier Funds had been paying substantial expenses for L-R Managers, contrary to the representations in the funds’ offering documents. LAGUARDIA then proceeded, over the course of several months, to use a substantial portion of Investor-2’s investment in the Frontier Funds to continue paying himself and subsidizing his firm’s business expenses.
* * *
LAGUARDIA, 53, of Lavallette, New Jersey, was convicted at trial of one count of securities fraud, one count of wire fraud, and one count of investment adviser fraud. LAGUARDIA faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a maximum sentence of five years in prison on the investment adviser fraud count. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed upon LAGUARDIA will be determined by the judge.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service. Ms. Strauss also thanked the Securities and Exchange Commission, which previously brought a related civil action against LAGUARDIA.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Max Nicholas, Elisha Kobre, Margaret Graham, and Daniel Loss are in charge of the prosecution.
Man Sentenced for COVID-19 Fraud Involving Paycheck Protection ProgramRead the Press Release
ALEXANDRIA, Va. – An Ashburn man was sentenced today to 12 months in prison and two years of supervised release for defrauding the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic.
“During a time of national crisis, the federal government set aside money to help struggling businesses pay their hardworking employees and keep their doors open,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Tarik Jaafar planned and executed a scheme to steal money from this essential program. This office will continue to work with our law enforcement partners to make sure that federal economic assistance provides relief for beleaguered businesses and not profits for devious criminals.”
According to court documents, Jaafar, 43, conspired with his wife, Monika Magdalena Jaworska, to create four shell companies. These companies conducted no legitimate business and existed solely as a means to execute the scheme to defraud. From April 13 to May 6, Jaafar and Jaworska applied for 18 separate PPP loans in the names of the four shell companies valued at approximately $6.6 million, falsely claiming, among other things, that the businesses had employees and they needed the loans to pay their employees’ salaries. Jaafar and Jaworska fraudulently induced banks to distribute approximately $1.4 million in loans which they intended to use for their personal benefit.
“The Paycheck Protection Program was developed to aide small businesses during these challenging times,” said Hannibal “Mike” Ware, Inspector General of the Small Business Administration. “Our office will remain relentless in the pursuit of bad actors who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
On June 20, Jaafar and Jaworska were arrested at John F. Kennedy International Airport as they attempted to flee to Poland. The majority of the funds were recovered by the banks and by law enforcement. On August 25, Jaafar pleaded guilty to conspiracy to defraud the United States.
“As we’ve seen in the aftermath of many disasters and crises, criminals will exploit any opportunity to take advantage of programs intended to help businesses and individuals confronted with hardship,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “In this instance, funds intended to alleviate the effects of the ongoing pandemic were illicitly converted to personal use. Today's sentencing demonstrates the commitment of the FBI and its partners to combatting fraudulent activity. The FBI will continue to investigate allegations of those who attempt to defraud the government and take money away from those who are in legitimate need.”
Assistant U.S. Attorney Kimberly Shartar and William Fitzpatrick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-185.
Man Charged with Offering to ‘Break’ Sex Trafficking VictimRead the Press Release
A 37-year-old man who volunteered to torture a sex trafficking victim for money has been charged with human trafficking crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Billie Joe Sanford, of Eustace, Texas, was charged via criminal complaint on Friday, Nov. 6 with attempting to aid and abet sex trafficking. He made his initial appearance before Magistrate Judge David Horan on Monday, Nov. 9.
Today, a federal magistrate judge ordered Mr. Sanford released on conditions pending trial. The U.S. Attorney’s Office has vowed to vigorously appeal that decision. The Defendant will be held in custody pending the filing of the appeal.
“I shudder to think what could have happened had the ‘victim’ in this case been a vulnerable woman, rather than an undercover agent. The North Texas Trafficking Task Force, led by Homeland Security Investigations (HSI), is dedicated to stopping this sort of brutality in all its many forms,” said U.S. Attorney Erin Nealy Cox. “Allowing this defendant back into the community is unacceptable to us and we will do everything we can to keep him off the streets until we can bring him to justice.”
“Human trafficking is one of the most despicable crimes against humanity that HSI investigates. The vicious criminals that often manipulate or force their victims into unspeakable situations for profit will pay a price of their own,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “We will use every resource available with our law-enforcement partners to identify and hold responsible anyone who thinks this behavior is worth the risk. Eradicating human trafficking and protecting the victims is one of HSI’s top priorities.”
According to the complaint, Mr. Sanford, using the screenname“MasterBill75751,” responded to an online advertisement for a sex trafficking victim who “needs breaking.” Unbeknownst to the defendant, the ad had been posted by an undercover agent.
“I am willing to help break her into a proper slave,” Mr. Sanford wrote on Oct. 9.
In subsequent messages, he asked for $5,000 a week to brutalize the victim, demanding “complete privacy” without neighbors nearby.
On Oct. 29, Mr. Sanford and the undercover agent met in person in Plano, TX.
Posing as the head of a sizable human trafficking ring, the agent told Mr. Sanford he planned to “make a fortune” pimping out the victim, but was concerned by her refusal to engage in commercial sex and her repeated attempts at escape. He stated he had resorted to handcuffing the victim and locking her in a bathroom.
In response, Mr. Sanford bragged that he had “broken” trafficking victims previously and outlined the methods of torture he planned to use: flogging, caging, shock therapy, blaring heavy metal music, whips, and black-out contacts. He explained that while he understood how to cause “excruciating pain,” he would not leave any scars that would affect the victim’s later sale.
“You want someone that when it’s done, if she gets just a smidgen out of line, then you can say, ‘hey, I’m going to call him back,’” he told the agent. “You want her to believe that whenever she leaves her job, if she does not report back to you, she is going back to Bill… I just make sure they understand they never want to experience this again.”
A week later, on Nov. 5, Mr. Sanford and the agent met again in Irving, TX. Mr. Sanford agreed to follow the agent to a nearby location, where a second undercover agent, posing as the victim, sat restrained in the back seat of a vehicle. When he arrived, Mr. Sanford unloaded a suitcase and bag containing leather restraints, flogs, spurs, and other equipment.
In a subsequent interview with law enforcement, the defendant said he’d been living the “kink” lifestyle for several years. Asked about the victim he’d offered to break, Mr. Sanford stated he was hard up for money and simply wanted to “help her enjoy life.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Sanford is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to life in federal prison.
Homeland Security Investigations conducted the investigation with the assistance of the Dallas County Sheriff’s Office, Dallas County District Attorney’s Office Investigator, the Fort Worth Police Department, the Colleyville Police Department, and the Texas Alcoholic Beverage Commission. Assistant U.S. Attorneys Rebekah Ricketts and Andrew Briggs are prosecuting the case.
Local U.S. Department of Justice Employees Receive Attorney General Award for Distinguished Contributions to Law EnforcementRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams congratulates District of Oregon Assistant United States Attorneys Chris Cardani and Scott Kerin, and Homeland Security Investigations Special Agent Guy Gino, who were honored by United States Attorney General William P. Barr for their exemplary service. The awards were announced on November 12, 2020.
The Attorney General’s Distinguished Service Award recognizes Department of Justice employees and partners for extraordinary contributions to the enforcement of our nation’s laws. This year, 240 DOJ employees received awards, while 27 non-department individuals were also honored for their work.
AUSA Chris Cardani was recognized for his work to recover more than 1 Billion dollars’ worth of assets misappropriated from the Malaysian government through civil forfeiture actions. AUSA Scott Kerin and HSI Special Agent Guy Gino were recognized for their work on Operation Deadly Merchant/Operation Denial, a sophisticated Dark Net synthetic opioid drug ring operating in the United States, Canada, and China.
“I am honored to recognize the recipients of this year’s Attorney General’s Awards, whose tireless work and steadfast dedication have proven critical to enforcing the rule of law and protecting all Americans,” said Attorney General William P. Barr. “Those honored today have demonstrated exceptional efforts and made tremendous personal sacrifices throughout their time working at the Department of Justice, and for that, I am truly thankful.”
“The recognition of these local DOJ employees is well-deserved” said Billy J. Williams, United States Attorney for the District of Oregon. “Their work represents the highest ideals of public service, partnership and dedication to public safety. Congratulations Chris, Scott and Guy!”
Local Basketball Coach Charged in Federal Court with Defrauding Covid-19 Relief Program out of Almost $1 MillionRead the Press Release
Miami, Fl. -- A Florida man, recently named one of Florida’s high school basketball coaches of the year, was arrested and charged with fraudulently obtaining $984,710 in a Paycheck Protection Program (PPP) loan.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI) made the announcement.
Terrence Deshun Williams, 40, of Tamarac, Florida, was charged by criminal complaint in the Southern District of Florida with one count of bank fraud, one count of money laundering, one count of engaging in transactions in unlawful proceeds, and one count of making false statements to a financial institution.
The complaint alleges that Williams, the head coach of the boys’ varsity basketball team at a Fort Lauderdale high school, applied for and received $984,710 in a PPP loan from an insured financial institution on behalf of Williams Consulting Group LLC, a company Williams owned. The complaint alleges that although Williams claimed the company had 67 employees and an average monthly payroll of $393,884.00, the company in fact paid no such payroll and did not have any recorded employees with the State of Florida. The complaint alleges that after receiving the loan proceeds, instead of using the money for an approved purpose, Williams laundered the vast majority by transferring the proceeds to several accounts he controlled at a different financial institution. The complaint also alleges that Williams received into his company’s bank account Florida Unemployment Insurance benefits.
Williams is scheduled for an initial appearance today at 11:00 a.m. before U.S. Magistrate Judge Lurana Snow, who sits in Ft. Lauderdale.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commends FDIC-OIG and the FBI. Assistant U.S. Attorney Eli S. Rubin of the Southern District of Florida is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-mj-6580.
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Last of 8 sentenced in Sandusky area drug trafficking operationRead the Press Release
U.S. Attorney Justin Herdman announced today that the final member of a drug trafficking organization operating primarily in the city of Sandusky was sentenced for his role in the conspiracy. U.S. District Court Judge Jack Zouhary sentenced Patrick Brown, age 39, of Sandusky to 14 years imprisonment after Brown pleaded guilty to conspiracy to possess with the intent to distribute controlled substances.
Brown and seven other defendants were charged in a 17-count indictment on June 26, 2019, with conspiracy to possess with intent to distribute controlled substances, distribution of controlled substances, possession with the intent to distribute a controlled substance and one defendant, Darrius Martin, as a felon in possession of ammunition.
“This group of men will now face serious time behind bars for thinking they could bring deadly opioids and cocaine into Sandusky and make a quick profit,” said U.S. Attorney Justin Herdman. “Drug trafficking organizations like this one believe they can operate in communities like Sandusky and go undetected. Let these sentences show that this is not the case. If you traffic drugs in communities like Sandusky and elsewhere in the Northern District, you will be arrested and will serve time in prison.”
“This sentence should serve as a message to drug dealers that they will be held accountable for their crimes,” said DEA Special Agent in Charge Keith Martin.
“I would like to thank DEA and the U.S. Attorney’s Office for their cooperation and collaboration in making the city of Sandusky a safer place for our citizens,” said retired city of Sandusky Police Chief John Orzech.
Previously sentenced in this matter were:
- Siron Mills, age 42, of Sandusky. Mills was sentenced to ten years imprisonment and eight years of supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances.
- Gregory Boswell, age 45, of Cleveland. Boswell was sentenced to eight years imprisonment and eight years of supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances.
- Daryl Castile, age 50, of Sandusky. Castile was sentenced to eight years imprisonment and eight years of supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances.
- Timothy Johnson, age 41, of Sandusky. Johnson was sentenced to five years imprisonment and five years of supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances, distribution of controlled substances and possession with the intent to distribute controlled substances.
- Jon Lippert, age 39, of Sandusky. Lippert was sentenced to three years imprisonment and five years of supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances.
- Darrius Martin, age 28, of Sandusky. Martin was sentenced to six years imprisonment and five years of supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances, distribution of controlled substances and felon in possession of ammunition.
- Eugene Nicholson, age 50, of Sandusky. Nicholson was sentenced to ten years imprisonment and eight years supervised release after he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances.
From April 2017 through June 2019, Patrick Brown and the other named co-conspirators obtained large quantities of heroin, cocaine and crack cocaine from various suppliers outside the city and worked together to distribute the drugs throughout the Sandusky area.
Siron Mills would obtain heroin from Daryl Castile and cocaine from suppliers in Columbus. Brown would then obtain his cocaine from Mills and Gregory Boswell. After securing their narcotics, members of the drug trafficking organization would work together, often using cell phones registered to fictitious names to conduct their activity. The organization used various residences and vehicles in the Sandusky and Cleveland areas to store, break down, package and distribute their drugs.
As a result of these charges, nearly $40,000 in cash, several firearms and ammunition were forfeited.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Sandusky Police Department. The case was prosecuted by Assistant United States Attorneys Alissa M. Sterling and Ashley A. Futrell. Assistant United States Attorney James Morford assisted with the forfeiture.
Las Vegas Resident Who Discussed Setting Fire to A Synagogue with A White Supremacist Extremist Group Sentenced for Possession of Bomb-Making ComponentsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident who discussed setting fire to a synagogue with a white supremacist extremist group was sentenced today to two years in prison to be followed by three years of supervised release, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
“Our office is committed to working closely with our law enforcement partners to disrupt and stop potential bias-motivated violence before it happens,” said U.S. Attorney Trutanich. “Here, law enforcement in Nevada identified the defendant’s threats of violence — which were motivated by hate and intended to intimidate our faith-based and LGBTQ communities — and took swift action to protect our communities and ensure justice.”
“The primary mission of the FBI is to protect the American public from a terrorist attack,” said Special Agent in Charge Rouse. “The FBI’s Las Vegas Joint Terrorism Task Force is committed to protecting our community and I could not be more proud of the proactive work they did in this case. This is a great example of the best result in law enforcement by stopping violence before it can start.”
Conor Climo, 24, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Climo previously pleaded guilty to one count of possession of an unregistered firearm — specifically, the component parts of a destructive device. In addition to the term of imprisonment, the Court ordered special conditions of supervised release, including mental health treatment and computer monitoring.
According to court documents, Climo communicated with individuals who identified with the white supremacist extremist group Feuerkrieg Division, which is an offshoot of the U.S.-based white supremacist extremist group Atomwaffen Division. Feuerkrieg Division members share a common goal of challenging laws, social order, and the government via terrorism and other violent acts. The organization encourages attacks on the federal government, critical infrastructure, minorities, and members of the LGBTQ community.
As part of his guilty plea, Climo admitted that, during online conversations with Feuerkrieg Division members between May 2019 and July 15, 2019, he discussed setting fire to a Las Vegas synagogue, and making Molotov cocktails and improvised explosive devices. Climo further admitted that he discussed plans to attack the Anti-Defamation League. In addition, Climo conducted surveillance on a bar in Las Vegas that he believed catered to the LGBTQ community in preparation for a potential attack.
On August 8, 2019, the FBI-led Joint Terrorism Task Force (JTTF) executed a search warrant at Climo’s residence. During the search, law enforcement located components that could be readily assembled into a destructive device, strong oxidizing agents that can be used as fuels, and numerous hand drawn schematics to construct improvised explosive devices. Law enforcement also seized an AR-15 rifle and a bolt-action rifle from Climo’s bedroom.
The Department of Justice is committed to combating acts of violence motivated by hatred or bias, such as anti-Semitic and anti-LGBTQ acts, on multiple fronts and in a multi-faceted approach, using both criminal and civil statutes. Acts of violence motivated by hatred or bias violate the personal security of individuals, threaten the freedom of communities to pursue their faiths and ways of life, and disregard the common ties that bind our nation together.
This case was investigated by the JTTF, which includes law enforcement partners from local, state, and federal agencies. Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada prosecuted the case, with assistance from the Civil Rights Division of the Department of Justice and the National Security Division.
This prosecution is part of the Department of Justice’s Disruption and Early Engagement Programs (DEEP), a national strategy to disrupt potential mass shootings and other rapidly mobilizing threats and the need to implement timely, effective and efficient responses.
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Las Vegas Man Sentenced for Straw Purchasing Ten RiflesRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident was sentenced Friday to two years in prison for making a straw purchase of ten FN M249S 5.56 caliber semi-automatic rifles, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada. The FN M249S rifle is a semi-automatic version of the FN M249 SAW machine gun used by the U.S. military.
Ethan Erhardt, 37, previously pleaded guilty to one count of illegal acquisition of a firearm. U.S. District Judge James C. Mahan presided over the hearing.
According to court documents, on February 16, 2019, Erhardt straw purchased firearms from a Federal Firearms Licensee in Henderson, Nevada, on behalf of another individual. Erhardt bought ten FN M249S 5.56 caliber semi-automatic rifles for approximately $88,000.00, using money provided by the other individual. At the time of purchase, Erhardt completed an ATF form representing that he was the actual buyer of the firearms — despite knowing that the rifles would actually be provided to the other individual, who in turn would then provide those firearms to a third party.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Daniel Clarkson prosecuted the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF 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, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
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Jury Convicts Man of Receiving and Possessing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A federal jury convicted a Virginia Beach man today on charges of receiving and possessing images of child sexual abuse.
According to court records and evidence presented at trial, in July 2018, the FBI executed a search warrant at the residence of Bradley Jeffrey-Moe, 28, after an online undercover operation identified Moe as having made available dozens of images of child sexual abuse for download over various peer-to-peer networks. During the search, the FBI discovered five electronic devices which contained thousands of images of child sexual abuse, as well as digital records reflecting the use of peer-to-peer software to search for and download such images. When questioned by the FBI, Moe waived his rights and confessed that he had downloaded and viewed the images.
Jeffrey-Moe is scheduled to be sentenced on March 25, 2021. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Karl Schumann, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict.
Assistant U.S. Attorneys Anthony Mozzi and Michael Gill are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-165.
Judge Sentences St. Louis Man Who Tried Taking Officer's Weapon During Arrest AttemptRead the Press Release
ST. LOUIS, MO – United States District Judge Audrey G. Fleissig sentenced Darryl Maxie to 60 months in prison today. The 45-year-old St. Louis, Missouri resident pleaded guilty on August 5, 2020 to being a felon in possession of a firearm.
On July 17, 2019, officers from the St. Louis Metropolitan Police Department were investigating an assault in the 4000 block of Labadie. The victim identified Maxie as the shooter.
On July 30, 2019, officers were aware Maxie was wanted for the assault and learned he was in the 2200 block of Newstead. At that location, officers spotted Maxie who started running after he saw the officers. During the pursuit, Maxie tossed a loaded .22 caliber semi-automatic pistol and continued to run. After an officer tackled Maxie, a struggle ensued during which Maxie attempted to gain control of the officer’s firearm. After several minutes, officers were finally able to take Maxie into custody. Maxie told officers he carried the semi-automatic pistol every day.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Tom Mehan is handling the case.
Jacksonville Woman Charged with FEMA Benefit Fraud Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Roshell Marvita Hoover (37, Jacksonville) with disaster assistance fraud involving Hurricane Irma. If convicted, Hoover faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States. Hoover was arrested on November 9, 2020.
According to the indictment, between September 2017 and July 2018, Hoover falsified records when submitting her application for disaster assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma. In her application to FEMA, Hoover falsely claimed that due to storm damage caused by Hurricane Irma, she could no longer live at her primary residence in Jacksonville and requested rental assistance (money) to purportedly help pay for rent at a new residence. In support of her disaster assistance application Hoover submitted falsified records to FEMA, including rental property documents and rental payment receipts.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Insurance agent charged with wire fraud for scheme to steal $750,000 in insurance premiums from clients across the countryRead the Press Release
Seattle - A 57-year-old Snohomish, Washington, insurance agent was charged today in U.S. District Court in Seattle with five counts of wire fraud for her theft of approximately $750,000 in premium payments from various insurance clients, announced U.S. Attorney Brian T. Moran. VICKI BOSER, who owned and operated InsuranceTek, Inc., appeared on an indictment in U.S. District Court in Seattle today. BOSER is charged with pocketing premium payments from insurance clients and providing fake certificates of insurance to some of those companies. BOSER entered a plea of ‘not guilty,’ and trial was set for January 19, 2021.
According to records filed in the case, between 2014 and 2016, BOSER defrauded various clients in high-risk insurance fields. BOSER founded InsuranceTek, Inc., in 2003 and specialized in assisting small businesses that work in high-risk fields‑‑including private investigators, process servers, mortgage and field service companies, and security guard companies‑‑in securing insurance policies to cover their business operations. BOSER would find companies willing to insure the high-risk companies, and if necessary, find a company to finance the premium payments. BOSER was required by law to collect the premium payments from the clients and pay them over to the insurance companies. Instead, she pocketed some of the payments, created false insurance certificates, and led the high-risk companies to believe they were insured. In some instances, the insurance companies cancelled the insurance for lack of payment, but BOSER received the notice and hid it from the insured. The insurance premiums were tens of thousands of dollars‑‑in one case more than $100,000. BOSER used the money for her personal expenses, including spending a great deal of money at a casino resort.
BOSER had clients across the country‑‑many small family owned businesses that placed a great deal of trust in BOSER. Court records detail the frauds regarding an Illinois-based property inspection business, and Ohio-, Tennessee-, and Texas-based businesses that maintain foreclosed homes. Some of the clients only learned their insurance policies had been cancelled when they contacted the companies about renewing the policies. The investigation was triggered when the Washington State Insurance Commissioner’s Office received complaints.
Wire fraud is punishable by up to twenty years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Criminal Investigative Division of the Washington State Office of the Insurance Commissioner.
The case is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 12 was:
Reuben Charles Blackwolf, 44, of Box Elder, on charges of second-degree murder and assault resulting in serious bodily injury. If convicted of the most serious crime, Blackwolf faces a maximum life in prison, a $250,000 fine and five years of supervised release. Blackwolf was detained pending further proceedings. The FBI and Bureau of Indian Affairs investigated the case. PACER case reference. 20-120.
Antoine Robert Threefingers, 36, of Lame Deer, on charges of assault on a federal officer, assault with a deadly weapon, possession of a firearm in a violent crime, possession with intent to distribute meth and prohibited person in possession of a firearm. If convicted of the most serious crime, Threefingers faces a minimum mandatory 10 years to life in prison, a $250,000 fine and five years of supervised release. Threefingers was detained pending further proceedings. The FBI and Bureau of Indian Affairs investigated the case. PACER case reference. 20-131.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Nov. 10 was:
Chase Zachary Taylor Estes, 22, of Helena, on charges of false statement during a firearms transaction and receipt of a firearm while under indictment. If convicted of the most serious crime, Estes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Estes was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewis and Clark County Sheriff’s Office investigated the case. PACER case reference. 20-12.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston Man Sentenced for Conspiracy to Distribute HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on November 12, 2020, JAVIER CONTRERAS-CASTILLO, age 28, of Houston, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to conspiracy to distribute and to possess with the intent to distribute a kilogram or more of heroin.
According to court records, CONTRERAS-CASTILLO, who was located in Houston, Texas, served as a source of heroin supply for co-defendants located in the New Orleans metropolitan area.
Judge Ashe sentenced CONTRERAS-CASTILLO to 43 months of imprisonment followed by two years of supervised release and a $100 mandatory special assessment.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
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Haverhill Man Sentenced to 70 Months in Prison for Drug and Firearm ChargesRead the Press Release
BOSTON – A Haverhill man was sentenced today for illegal firearm and drug possession.
Kevin Gomez, 32, was sentenced by U.S. District Court Judge Denise J. Casper to 70 months in prison and three years of supervised release. On Feb. 25, 2020, Gomez pleaded guilty to distribution of heroin and being a felon in possession of a firearm.
Between August 2019 and October 2019, during an undercover investigation, agents seized from Gomez approximately 80 grams of heroin mixed with fentanyl, a Tec-9 pistol, an AR-15 rifle and two other pistols.
United States Attorney Andrew Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. The FBI’s North Shore Gang Task Force and the Massachusetts State Police conducted the investigation. Assistant U.S. Attorney Philip Cheng of Lelling’s Narcotics & Money Laundering Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Gang Members Sentenced to Nearly 16 Years for Possessing FirearmsRead the Press Release
NORFOLK, Va. – Two local gang members were sentenced this week to nearly 16 years in prison combined for being felons in possession of firearms.
According to court documents, Davidro Leondre Smith, aka Kastor Troy, 30, and Dequan Leshawn McKee, aka The General, 23, both of Norfolk, are members of the Norfolk-based Cream/200K/2K criminal street gang.
In July 2019, Norfolk police officers attempted to conduct a traffic stop on a car driven by Smith, a five-time felon, with McKee in the passenger seat. Smith refused to stop and led several police vehicles on a high-speed chase. During the pursuit, Smith maneuvered around police vehicles stopped in the middle of the road and at one point drove in the opposite lane facing oncoming traffic. Smith and McKee finally abandoned the car in an apartment-complex parking lot, and police officers chased them on foot. While running from one of the officers, Smith drew his gun, brandished it, and tried to throw it into one of the apartments, but it bounced off the rear screen door. He then fought the pursuing officer, and was arrested after backup arrived. The arresting officer recovered from Smith roughly 7.1 grams of marijuana and 62 pills of varying colors and sizes, separated into three bags. Lab results confirmed the presence of Oxycodone.
The officers also recovered McKee’s handgun, which had been lying underneath the car’s front passenger floor mat, and his phone, which had been sitting on the front passenger seat, unlocked and recording on Facebook Live. The footage shows McKee sitting in the car’s passenger seat with his gun between his legs. It also shows McKee’s and Smith’s reactions at the moment the officers turned on their emergency lights to initiate the traffic stop—as they panic and discuss throwing drugs out of one of the car windows. Facebook friends of McKee who were viewing the live recording posted messages encouraging Smith and McKee to do so. McKee’s gun was one of 16 firearms that had been reported stolen from a federally licensed gun store a week earlier.
Smith was sentenced Tuesday to 120 months in prison, while McKee was sentenced today to 71 months.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Bloodline. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-18.
Former postal carrier sentenced to prison for stealing, selling meth & marijuana contained in mail packagesRead the Press Release
COLUMBUS, Ohio – A former United States Postal Carrier was sentenced in U.S. District Court today to 24 months in prison for stealing mail parcels that contained narcotics and then selling those narcotics in his neighborhood.
Ricky Lee Harris Germany, 33, of Columbus, pleaded guilty in September 2019 to one count of conspiring to possess with intent to distribute more than 500 grams of methamphetamine and a detectable amount of marijuana.
According to court documents, Germany had been employed as a city postal carrier at the United States Postal Service’s Oakland Park Station in Columbus from 2013 until 2018.
In September 2018, investigators received information that Germany had stolen mail parcels containing marijuana while employed as a postal carrier. According to a complainant, Harris Germany stole more than 100 pounds of marijuana over the course of six months. The complainant stated Harris Germany would look for large parcels from California, Texas and Arizona and would check the packages on his lunch break to see if they contained drugs.
The investigation revealed Germany intercepted mail parcels on multiple occasions from delivery routes other than his assigned route. During a search of his residence, investigators discovered opened packages containing marijuana, THC oil and methamphetamine.
Germany admitted to stealing mail coming from out of state and selling stolen narcotics to people in his neighborhood.
Kenneth Cleevely, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG) Eastern Area Field Office, stated: “Postal employees are paid to deliver the mail, not steal from it and sell drugs in our community. When employees like Germany choose to use their position to go into the drug dealing business, Special Agents with the USPS OIG will work with our law enforcement partners to arrest them and put them in federal prison. To report crimes committed by postal employees, or to report drug dealers using the postal system, contact us at www.uspsoig.gov or 888-USPS-OIG.”
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Special Agent in Charge Cleevely announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Assistant United States Attorney Jonathan J.C. Grey represented the United States in this case.
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Former President of Private Tennis Academy Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former president of a private tennis academy in Texas was sentenced today in connection with his involvement in a scheme to use bribery to facilitate the admission of applicants to selective colleges and universities.
Martin Fox, 63, of Houston, Texas, was sentenced by U.S. District Court Judge Indira Talwani to three months in prison and 15 months of supervised release, with the first three months to be in home confinement. He must also complete 250 hours of community service. Fox was also ordered to pay a fine of $95,000 and forfeiture in the amount of $245,000. In November 2019, Fox pleaded guilty to one count of conspiracy to commit racketeering.
In 2015, Fox introduced co-conspirator William “Rick” Singer to Michael Center, a tennis coach at the University of Texas (U-Texas). Center facilitated the admission of a son of one of Singer’s clients to U-Texas as a purported tennis recruit in exchange for a bribe. In return for assisting with the bribe transaction, Singer paid Fox $100,000.
Between 2015 and 2018, Fox also agreed with Singer and others to facilitate cheating on the ACT and SAT college entrance exams. Fox funneled bribe payments from Singer to Niki Williams, a test administrator for the ACT and SAT, for four of Singer’s clients. In exchange, Williams allowed another co-conspirator, Mark Riddell, to purportedly proctor the exams, despite knowing that Riddell was not proctoring the exam consistent with ACT and SAT requirements. Singer typically paid Fox $25,000 per exam, a portion of which Fox funneled to Williams.
Singer, Center, Williams and Riddell previously pleaded guilty. Singer, Williams and Riddell are pending sentencing, and Center was sentenced in February 2020 to six months in prison.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Justin D. O’Connell, Leslie A. Wright, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
Former Police Chief and Sheriff Candidate Sentenced to 60 Months in Federal Prison for Distribution of Child PornographyRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on November 13, 2020, Alexander P. Bebris (age: 51) of Denmark, Wisconsin, was sentenced to 60 months in federal prison Senior United States District Judge William C. Griesbach for distribution of child pornography.
According to court records, in September of 2018, Facebook notified the National Center for Missing and Exploited Children (NCMEC) that one of its users had sent images of child pornography via its messenger system to another Facebook user account. The Wisconsin Internet Crimes Against Children (ICAC) Taskforce launched an investigation and determined that the images were sent from an IP address in use at Bebris’s residence in Neenah. On December 19, 2018, investigators executed a search warrant at Bebris’ residence, and an examination of Bebris’ computer revealed images of pornography involving children ranging in age from approximately one to fifteen years old.
Bebris spent his career in law enforcement, most recently as Public Safety Chief in Oakwood, Ohio. In 2018, he ran unsuccessfully for the position of Outagamie County Sheriff.
In pronouncing sentence, Judge Griesbach noted the serious nature of the charge and the need for just punishment. Following his release from prison, Bebris will spend six years on supervised release. He will also be required to register as a sexual offender.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Winnebago County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Benjamin W. Proctor and Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Executive Vice President of J& R Manufacturing Sentenced to Prison Failing to Pay Taxes, False StatementsRead the Press Release
ABINGDON, Va.- Teresa Barringer, the former executive vice present of J&R Manufacturing in Bluefield, Va., was sentenced yesterday in U.S. District Court in Abingdon to serve three years in federal prison on charges of failing to pay taxes and making false statements. Acting United States Attorney Daniel P. Bubar made the announcement.
Barringer, 59, was convicted in December 2019 following a three-day jury trial of three counts of willfully failing to pay payroll taxes and three counts of making false statements to federal law enforcement officers.
According to court documents, Barringer failed to pay more than $175,000 in payroll taxes withheld from employees. In July 2019, Barringer lied to federal agents when questioned about her employment and forms she falsely completed to make 401(k)withdrawals. At sentencing, the District Court found Barringer lied under oath when testifying during her trial.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the Virginia State Police. Assistant United States Attorneys S. Cagle Juhan and Randy Ramseyer prosecuted the case for the United States.
Former Employee of the Department of Veterans Affairs Pleads Guilty to the Misuse of Government FundsRead the Press Release
Orlando, Florida – Edwin Torres Arenas (49, Oviedo) has pleaded guilty to seven counts of stealing government funds. He faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.
According to the plea agreement, over the course of two years, Torres Arenas misused vehicles rented through the General Services Administration’s (GSA) Short Term Rental Program (STR) on behalf of the Department of Veterans Affairs (VA) and, in so doing, caused a loss of $58,114.12 to the VA. In or about October 2017, Torres Arenas began renting STR vehicles for his personal use, in violation of the STR program policy, and converted rentals associated with seven government contract bids to his own use. Torres Arenas also loaned STR rentals to his family members and provided them with the fuel cards assigned to their respective STR vehicles. Torres Arenas and his family incurred toll fees and utilized the fuel cards to fuel their respective STR rentals, the costs of which were charged to the VA.
Torres Arenas also caused a car accident with one of the STR rentals. The damage from this accident resulted in the total loss of that STR vehicle, the cost of which was also charged to the VA.
“VA employees are public servants who owe a solemn duty to the veterans they serve,” said David Spilker, Special Agent in Charge of VA OIG’s Southeast Field Office. “Today’s guilty pleas by the defendant demonstrate VA OIG’s commitment to holding accountable anyone who abuses the public trust. VA OIG thanks the U.S. Attorney’s Office and GSA OIG for their strong partnership in this important matter.”
"GSA OIG is committed to preserving the integrity of GSA programs such as the GSA Fleet Short-Term Rental Program, which is intended to supply federal agencies with easy, one stop access to vehicles and equipment," stated Floyd Martinez, Special Agent in Charge of GSA OIG's Southeast and Caribbean Field Office. "We will continue to work with our investigative partners in pursuing those individuals who fraudulently exploit GSA programs for personal benefit and financial gain."
This case was investigated by the Department of Veterans Affairs – Office of Inspector General and the General Services Administration – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Amanda Daniels.Former Director of Security sentenced to prison for defrauding hospital to acquire firearmsRead the Press Release
ATLANTA - Russell Richardson has been sentenced for fraudulently using hospital funds to acquire 93 firearms for profit as well as his personal use.
“Richardson abused his position as the hospital’s Security Director and manipulated the system to acquire firearms for his personal benefit,” said U.S. Attorney Byung J. “BJay” Pak. “He fraudulently caused the hospital to spend money that should have gone towards the purchase of medical necessities, not to line his pockets.”
“Mr. Richardson betrayed the trust of his position” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “This sentence should send a strong message to anyone who would set aside their values, ethics and common sense in a similar fashion.”
According to U.S. Attorney Pak, the charges and other information presented in court: While Richardson was the Director of Security at DeKalb Medical Center, Inc., he received authorization to purchase a few firearms for the Security Department. Between June 2016 and April 2018, Richardson placed additional orders for approximately 93 firearms and falsely represented to the vendor that the firearms were likewise for the department.
The vendor invoiced the hospital for the additional firearms and provided the invoices to Richardson. He then fraudulently caused the hospital to mail payments to the vendor by submitting fake invoices that listed false descriptions of the items purchased. Richardson took possession of all the firearms and sold many them for 100% profit while keeping some for use in gun classes he taught.
Russell Richardson, 44, of Columbia, South Carolina, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $83,275.21.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Tracia M. King prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon with Firearm Who Fled from Ocala Police Sentenced to More Than Four Years in PrisonRead the Press Release
Ocala, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Kayden James Billings (22, Oxford) to four years and six months in federal prison for possessing a firearm as a convicted felon. Billings had pleaded guilty on August 14, 2020.
According to court records, in February 2020, Billings was released from state prison following three separate convictions. On April 11, 2020, a female companion drove Billings to an Ocala gas station. She ran inside to ask the clerk to summon police because Billings had been battering her and threatening her with a firearm. Two officers from the Ocala Police Department quickly responded and Billings fled from the gas station on foot. As he ran across Pine Avenue, Billings discarded a loaded .45 caliber handgun, along with his driver license. Billings surrendered after the pursuing officer caught up with him and threatened to deploy a Taser. The firearm, which had been previously reported stolen in Marion County, was identified by the victim as the same one Billings had used to threaten and batter her.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
This is another case as 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. For more information on Project Guardian visit www.justice.gov/projectguardian.
Felon with Firearm Who Fled from Citrus County Deputies Sentenced to 4 Years in PrisonRead the Press Release
Ocala, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Eric Lee Sputa (33, Homosassa) to four years in federal prison for possessing a firearm as a convicted felon. Sputa had pleaded guilty on August 14, 2020.
According to court documents, on May 26, 2020, a detective with the Citrus County Sheriff’s Office observed Sputa on a motorcycle, with no license plate, driving at a high rate of speed. Sputa evaded the detective by speeding away and refusing to stop. Approximately one hour later, Sputa was spotted again and attempted to flee a second time. Sputa fled down a dead end street and was blocked by the pursuing detective. Sputa tried to pass the detective, and in doing so, crashed his motorcycle into a fence and the detective’s patrol car, thereby disabling the motorcycle.
At the time of the incident, Sputa possessed 1.5 grams of methamphetamine and a loaded .25 caliber pistol. Sputa has multiple felony convictions, the most recent occurring in 2019. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law. Sputa admitted to fleeing because he did not want to go back to jail.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Citrus County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
This is another case prosecuted as 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. For more information on Project Guardian visit www.justice.gov/projectguardian.
Felon Who Stole and Resold Firearm Sentenced to 40 Months in Federal PrisonRead the Press Release
Ocala, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced James Matthew Johnson (32, Summerfield) to 40 months in federal prison for possessing a firearm as a convicted felon. Johnson had pleaded guilty on August 10, 2020.
According to court records, Johnson was a suspect in a case involving a firearm stolen from a vehicle on May 7, 2020. On May 18, 2020, deputies from the Marion County Sheriff’s Office executed a search warrant at Johnson’s home and recovered heroin and other firearms belonging to the occupants. Johnson, who is a convicted felon, admitted to stealing and reselling the firearm to another person to pay for drugs. Upon further investigation, deputies recovered the firearm—a Taurus model G3 9mm pistol—that Johnson had illegally transferred.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
This is another case prosecuted as 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. For more information on Project Guardian visit www.justice.gov/projectguardian.
Federal Inmate Sentenced to 41 Months for Laundering Drug Trafficking ProceedsRead the Press Release
PITTSBURGH - Thomas Hopes was sentenced to 41 months in prison for conspiring to launder drug-trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Hopes, age 29, formerly of Pittsburgh, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that 15 months of the 41-month prison sentence be served consecutively to the federal prison sentence Hopes was serving at the time of the crime. Hopes’s prior federal prison sentence was for conspiring to distribute at least one kilogram of heroin. He was serving that sentence at FCI-Elkton in Ohio when he committed the money-laundering crime between 2017 and 2019.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Federal Indictment Charges Grundy County Man with Illegally Possessing Explosive DevicesRead the Press Release
CHICAGO — A Grundy County man has been indicted in federal court in Chicago on charges he illegally possessed explosive devices and handguns.
JOHN FEENEY, 30, of Minooka, is charged with one count of illegal possession of a firearm by a convicted felon, one count of illegal possession of an explosive by a convicted felon, one count of possession of an unregistered destructive device, and one count of carrying explosives during the commission of a felony.
According to the indictment, Feeney illegally possessed two handguns and three explosives on Jan. 25, 2020, in Morris. The explosives included a 4-inch diameter cardboard aerial shell containing perchlorate explosives and black powder; a 2-inch diameter cardboard aerial shell containing perchlorate explosives; and a 2-inch diameter cardboard aerial shell secured to a plastic cup and containing metal Phillips head bits, cut copper wire, and perchlorate explosives, the indictment states. Feeney was previously convicted of a felony and was legally prohibited from possessing a firearm or explosive.
The indictment was returned Tuesday in U.S. District Court in Chicago. Feeney is currently in law enforcement custody. Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Grundy County Sheriff’s Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Cornelius Vandenberg.
The count of carrying explosives during the commission of a felony includes a mandatory ten-year prison sentence that must be served consecutively to any sentence imposed for the three other counts, each of which is punishable by up to ten years.
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.
Federal Charge: For $10,000, Murder Would Look Like RobberyRead the Press Release
KANSAS CITY, KAN. – Two Kansas City, Kan., men have been charged in federal court here with offering to kill a man for $10,000 and make it look like robbery, U.S. Attorney Stephen McAllister said.
Miguel A. Pizarro, 20, and Brian Pizarro, 19, both of Kansas City, Kan., are charged with traveling from Kansas to Missouri for the purpose of carrying out a contract killing.
According to an affidavit by a member of an Alcohol, Tobacco, Firearms and Explosives task force, the Pizarro brothers planned to shoot the victim from a distance with an AR-15 rifle and then steal the victim’s billfold. The murder never happened because what the defendants did not know is they were dealing with an undercover sting operation carried out by federal agents and a detective from the Kansas City, Kan., Police Department who was assigned to an ATF task force.
“These allegations are deeply disturbing,” U.S. Attorney Stephen McAllister said. “The price of a man’s life is set at $10,000. A would-be hitman offers a description of a previous killing as his credentials for the job. The defendants don’t even ask why the victim is to be killed.”
James Ferguson, Acting Special Agent in Charge, ATF Kansas City Field Division, said: “This case embodies ATF’s core mission of holding armed, violent criminals accountable for their actions. Investigations such as this one are making our communities safer places to live, work and play.”
In documents filed in federal court, prosecutors allege the investigation began in Kansas City, Kan., in June 2020 with a series of meetings arranged by the Pizarro brothers during which undercover investigators were able to buy guns, including a .40-caliber Glock pistol, a Smith and Wesson .45-caliber pistol, an HS Produkt .45-caliber pistol and a Glock 9 mm pistol. During one of the transactions, Miguel Pizarro said one of the guns he was selling was “dirty.” In subsequent meetings with an undercover agent, the Pizarro brothers admitted their involvement in two separate Kansas City, Kansas homicides.
The ATF conducted ballistic testing and matched shell casings from a homicide with one of the guns they bought from the Pizarros.
During a subsequent conversation, the undercover agent asked Miguel Pizarro if he had someone he trusted for a possible job. Pizarro said he trusted his brother. Brian Pizarro was known to police in Kansas City, Kan., as an F-13 gang member. The ATF undercover told both Pizarros that he needed someone to perform an execution and make it look like a robbery. The Pizarros said they were the ones for the job.
The undercover agent told the Pizarros that the murder was to be carried out in Springfield, Mo. The Pizarros said they would charge $10,000 for the two of them to do the killing, or $15,000 if they had to bring along a third person.
On Nov. 4, 2020, the undercover officer met in his car with the Pizarros. He gave Brian Pizarro $800 as a down payment. The Pizarros said they would drive a stolen to car to Springfield and would expect the rest of the payment after the murder.
On Nov. 9, 2020, the Pizarro brothers were arrested in Springfield after arriving there armed to carry out the murder.
If convicted, the defendants could face up to 10 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.