Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
6 January 2021
Hampshire County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jamie Lee Sirbaugh, of Springfield, West Virginia, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Sirbaugh, 43, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Fifty Grams or More of Methamphetamine.” Sirbaugh admitted to having more than 50 grams of methamphetamine, also known as “ice,” in February 2019 in Hampshire County.
Sirbaugh faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
German Citizen Pleads Guilty to Federal Charges in Maryland Related to a Scheme to Defraud the U.S. State DepartmentRead the Press Release
Greenbelt, Maryland – Katrin Verclas, age 52, a native and citizen of Germany residing in Washington, D.C., pleaded guilty today in Maryland to federal charges of obstruction of a federal audit and causing a financial institution to fail to file a suspicious activity report (SAR), related to more than $1.2 million in U.S. State Department grant funds awarded to a corporation that Verclas controlled.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Diana Shaw, Acting Inspector General for the U.S. Department of State.
According to the plea agreement, on December 17, 2009, the U.S. State Department’s Bureau of Democracy, Human Rights, and Labor (“DRL”) publicized a Request for Proposal (“RFP”) that solicited grant proposals under the title “Promoting Freedom of Expression and the Free Flow of Information through Technology and Access.” The submission deadline for grant proposals was January 22, 2010.+
As detailed in the plea agreement, Verclas, who was residing in Amherst, Massachusetts at the time, had worked for non-profit organizations in the field of social activism through the use of technology since about 1996. In preparation for a response to the DRL RFP, on January 15, 2010, Verclas converted a project known as MobileActive into a Delaware corporation, and on January 22, 2010, electronically submitted a grant proposal to DRL on behalf of MobileActive. On September 20, 2010, MobileActive was awarded a grant from the U.S. Department of State in the amount of approximately $1,411,000, to develop and promote: a Mobile Security Toolkit of needed and missing software applications for secure mobile communication; and tactical resources that would allow human rights organizations and activists in specific geographic regions to easily assess and mitigate risks associated with their mobile communications. The performance period of the grant was September 20, 2010 through about September 30, 2012.
In order to request the grant funds, MobileActive, through Verclas, established an account with Payment Management System (“PMS”), a federal grants management database located in Bethesda, Maryland. Between October 26, 2010 and July 26, 2012, Verclas submitted 11 payment requests on behalf of MobileActive, causing the U.S. Department of State to release $1.222 million to MobileActive’s business bank account, which Verclas controlled.
MobileActive, through Verclas, failed to comply with a number of requirements under the grant. In November 2012, the State Department began performing an audit and quality assurance inspection with regard to the grant award. Between November 2012 and February 2014, the State Department made several requests, including through letters mailed and hand-delivered to Verclas, to provide documents and information, including a final financial report and inventory report, among other things. Verclas admitted that she intentionally ignored the State Department’s repeated requests because she knew that she did not have the requisite reports, documents, and other items.
In addition, Verclas admitted that between November 2010 and October 2012, she failed to disclose to the bank that many of the transactions involving the MobileActive business account were for Verclas’ own personal gain rather than legitimate business purposes. Verclas knew that, had the bank been aware of the true nature of these transactions, it would have been required to file a SAR. Through her deception, Verclas willfully caused the bank to fail to file a SAR.
Verclas and the government have agreed that, if the Court accepts the plea, Verclas will be sentenced to 364 days in federal prison on each count, to be served consecutively, provided that a related civil complaint filed against MobileActive is also settled. Under the MobileActive agreement, the corporation will be required to pay $500,000 to the United States within five days of the Court accepting the consent judgment, or the Court accepting Verclas’ plea agreement and imposing the agreed-upon sentence, whichever is later.
United States Attorney Robert K. Hur commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney David I. Salem, who is prosecuting the case, and thanked Assistant U.S. Attorney Katharine A. Wagner of the Massachusetts U.S. Attorney’s Office, who provided substantial assistance.
# # #
Former Teacher Pleads Guilty to Child Pornography ChargesRead the Press Release
A former pre-school teacher pleaded guilty today to distributing, receiving, and possessing child pornography, announced U.S. Attorney Trent Shores.
Andrew Glenn Perrine, 31, of Tulsa, pleaded guilty to distribution and receipt of child pornography and to possession of child pornography from June 28, 2019, to July 14, 2020.
In July 2020, Investigators from the Tulsa Police Cyber Crimes Unit and agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) received information that someone using the internet at Perrine’s residence had been distributing child pornography using a social media messaging app. When investigators conducted a search, officers recovered numerous electronic items. A forensic examination discovered more than 50 sexually explicit photos of children that had been downloaded from the internet.
Perrine, a former pre-school teacher at B’nai Emunah Preschool in Tulsa and former teacher at Bartlesville Middle School, confessed to downloading child pornography for more than 15 years and to possessing photos of children as young as 10 years old.
The Tulsa Police Department and ICE-HSI conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
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."
Federal Inmate Agrees to Extend Stay After Smuggling Drugs into FCI TexarkanaRead the Press Release
TEXARKANA, Texas – A 47-year-old federal inmate pleaded guilty to a federal violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Jason Josh Parmeley pleaded guilty to aiding and abetting attempt to obtain contraband in prison today before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Parmeley agreed to be sentenced to 60 to 80 months of imprisonment following his current term of incarceration, which will elapse in 2028.
According to information presented in court, Parmeley, while an inmate at FCI Texarkana, joined others in smuggling Buprenorphine into the institution. Parmeley facilitated communication between the participants, intending the drugs to be distributed to inmates at the institution. Parmeley was also participating in a scheme and conspiracy to commit wire fraud while he was incarcerated.
Under federal statutes, Parmeley faces up to 20 years in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being investigated by the Dallas Field Office of the U.S. Department of Justice, Office of the Inspector General, the Fort Worth Division of the U.S. Postal Inspection Service, and the Bureau of Prisons, Special Investigation Service. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Fayette County Man Sentenced to 15 Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Eugene Enrique Torres, 41, a Panamanian man residing in Fayetteville, was sentenced to 15 years in federal prison for attempted enticement of a minor. Torres was also sentenced to a term of supervised release of 20 years and will be required to register as a sex offender.
“Offenders that exploit, or seek to exploit our children, will be prosecuted to the fullest extent of the law,” said United States Attorney Mike Stuart. “I commend the relentless efforts of my team and those our law enforcement partners to protect West Virginia’s most vulnerable.”
Torres previously admitted that in June 2020 he contacted a woman on Craigslist who identified herself as a mother who would allow him to have sex with her children in exchange for money. During the conversation, Torres arranged to have the woman travel from Beckley to a hotel in Fayetteville with an 11-year-old girl the woman stated was her daughter. Torres would then pay approximately $250 in order to engage in oral sex and sexual intercourse with the child. After he met with the purported mother at the hotel, Torres was arrested while walking with the mother to meet the child.
The FBI Child Exploitation and Human Trafficking Task Force conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-00177.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Fargo Man Acknowledges Guilt and Pleads Guilty to Civil Disorder during the May 30th, 2020, Fargo RiotsRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that Errick Toa, age 31 of Fargo, ND, originally from California, pleaded guilty before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, for the charge of Civil Disorder, 18 USC 231 (a)(3), during the riots in Fargo, ND.
On May 30, 2020, Toa participated in riots that erupted in Fargo in response to George Floyd’s death in Minneapolis. What started as peaceful protest in Fargo turned violent when rioters, including Toa, jumped on top of a Fargo Police Department vehicle causing extensive damage. In one instance, Toa is seen on video stomping on the windshield of an occupied police vehicle, shattering the windshield.
Sentencing is scheduled for April 13, 2021, before Chief Judge Peter D. Welte.
"Peaceful assembly and protest help form the foundation of our democracy, but intimidation is not speech, violence is not speech, and destruction is not speech" said US Attorney Drew Wrigley, "those who employ the tactics of hate and violence have crossed a bright red line and will be brought to justice."
This case was investigated by the Federal Bureau of Investigation and the Fargo Police Department, and is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
######
Elkhart, Indiana Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND –Darnell Verner, 31, of Elkhart, Indiana was sentenced by United States District Court Judge Jon E. DeGuilio upon his plea of guilty to being a felon in possession of a firearm, announced Acting U.S. Attorney Bell.
Verner was sentenced to 70 months in prison and 2 years of supervised release.
According to documents filed in this case, during a two-month period from November 2019 to January 2020, Mr. Verner visited gun stores on eight occasions and obtained a firearm each time despite having been convicted of multiple prior felony offenses. Of the eight firearms Mr. Verner obtained, one semi-automatic rifle was recovered when he tried to sell it back to a gun store. The whereabouts of the seven other firearms remain unknown. Mr. Verner’s prior convictions include aggravated unlawful use of a weapon as well as delivery of crack cocaine and heroin.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
Eleven Meth, Cocaine Traffickers Charged in AmarilloRead the Press Release
Eleven alleged drug traffickers have been arrested and charged in Amarillo, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The defendants – who allegedly conspired to deal hundreds of grams of methamphetamine and cocaine – were arrested on Tuesday, Jan. 5 in a bust led by the Drug Enforcement Administration’s Amarillo Resident Office. During the operation, law enforcement seized more than 25 guns as well as kilogram quantities of drugs and U.S. currency.
The majority of the defendants made their initial appearances Wednesday morning before U.S. Magistrate Judge Lee Ann Reno.
Those charged in the 14-count indictment include:
- Christopher David Bell: conspiracy to distribute controlled substances, distribution of methamphetamine
- Randall Emery Bull: conspiracy to distribute controlled substances, distribution of methamphetamine
- Summer Nichole Wilcox: conspiracy to distribute controlled substances, possession with intent to distribute methamphetamine
- Arizona Michelle Wood: conspiracy to distribute controlled substances, distribution of methamphetamine, unlawful use of a communications facility
- Ruben Gomez-Bastida: conspiracy to distribute controlled substances, distribution of methamphetamine
- Sergio Segovia: conspiracy to distribute controlled substances, distribution of methamphetamine
- Jimmy Pancheco: conspiracy to distribute controlled substances, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine
- Julia Annette Machado: conspiracy to distribute controlled substances, distribution of methamphetamine
- Katreyna Ann Betancourt: conspiracy to distribute controlled substances, distribution of methamphetamine
- Brenda Joynce Monroe: conspiracy to distribute controlled substances, distribution of methamphetamine
- Billy Loy Holliday: conspiracy to distribute controlled substances
“Combatting the scourge of illegal drug trafficking is one of the Justice Department’s top priorities,” said U.S. Attorney Erin Nealy Cox. “We are proud to have collaborated with so many law enforcement agencies to disrupt the flow of meth and cocaine and to take so many high-level dealers off the streets of Amarillo.”
“Tuesday’s city-wide, cooperative law enforcement efforts to disrupt the methamphetamine and cocaine trafficking in our city was a tremendous success,” said DEA Special Agent in Charge of the Dallas Division Eduardo A. Chávez. “The Yellow Rose of Texas is safer today as we bring justice to those drug traffickers who want to poison our communities and profit from those who struggle with addiction. DEA Amarillo’s efforts will never waver as we seek to protect the neighborhoods we call home.”
“Drug trafficking and the public safety risks associated with it is a top priority for HSI Dallas and we will continue to allocate substantial resources to combat those responsible,” said Ryan L. Spradlin, Special Agent in Charge of HSI's Dallas Field Office.”
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, the lead defendant, 44-year-old Christopher Bell, faces up to life in federal prison. Other defendants face between four years to life in prison.
Three defendants charged in the indictment remain fugitives.
The Drug Enforcement Administration and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Potter County Sheriff’s Office, the Randall County Sheriff’s Office, the Lubbock County Sheriff’s Office, the Texas Department of Public Safety, the Amarillo Police Department, the Potter and Randall County District Attorney’s Offices, the Texas Anti-Gang Unit, and the United States Marshal’s Service. The Texoma High Intensity Drug Trafficking Area (HIDTA) program, the Organized Crime Drug Enforcement Task Force (OCDETF) Southwest Region, and the National Guard Counter Drug unit provided operational support. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case
Edmonds, Washington, man pleads guilty to unlawful possession of destructive devices in connection with May 30, 2020 protestRead the Press Release
Seattle - A 20-year-old Edmonds, Washington, man pleaded guilty today in U.S. District Court in Seattle to two counts of unlawful possession of a destructive device for his activities at a May 30, 2020, protest that turned violent in downtown Seattle, announced U.S. Attorney Brian T. Moran. KELLY THOMAS JACKSON faces a maximum ten years in prison when sentenced by U.S. District Judge James L. Robart on March 29,2021.
According to records filed in the case, law enforcement investigated a number of criminal acts at a May 30, 2020, protest, including the arson of several Seattle Police vehicles. Various videos showed a white male suspect in distinctive clothing using glass containers with a flammable material and a wick to burn or attempt to burn two police vehicles. JACKSON was identified as a potential suspect in the case after an anonymous tip to law enforcement. A detailed review of videos from the scene confirmed the suspect resembled JACKSON. Further, a court-authorized analysis of cell phone records placed JACKSON in the area at the time of the fires. JACKSON was observed wearing the same distinctive clothing as in the videos. Finally, additional evidence obtained by law enforcement includes a video of JACKSON throwing one Molotov cocktail into a police vehicle and another video of a glass bottle with a wick. In his plea agreement, JACKSON admits he accessed web-based information on how to construct Molotov cocktails. The second Molotov cocktail was thrown at the windshield of a police vehicle, bounced off, and exploded in flames on the sidewalk outside the Nordstrom store.
Possession of a destructive device is punishable by up to ten years in prison. The ultimate sentence is up to Judge Robart after considering the sentencing guidelines and other factors.
The case was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Seattle Police Department, the Edmonds Police Department and the Mountlake Terrace Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Department of Justice Statement on Solarwinds UpdateRead the Press Release
The Department of Justice Spokesman Marc Raimondi issued the following statement:
"On Dec. 24, 2020, the Department of Justice’s Office of the Chief Information Officer (OCIO) learned of previously unknown malicious activity linked to the global SolarWinds incident that has affected multiple federal agencies and technology contractors, among others. This activity involved access to the Department’s Microsoft O365 email environment.
After learning of the malicious activity, the OCIO eliminated the identified method by which the actor was accessing the O365 email environment. At this point, the number of potentially accessed O365 mailboxes appears limited to around 3-percent and we have no indication that any classified systems were impacted.
As part of the ongoing technical analysis, the Department has determined that the activity constitutes a major incident under the Federal Information Security Modernization Act, and is taking the steps consistent with that determination. The Department will continue to notify the appropriate federal agencies, Congress, and the public as warranted."
Couple Charged with Selling Turtles in Violation of the Lacey ActRead the Press Release
NEW ORLEANS, LOUISIANA - United States Attorney Peter G. Strasser announced that VINCENT FELIX RIVERE, age 47, and MEGAN LYNN SHOEMAKER, age 35, former residents of Springfield, Louisiana, were charged on December 30, 2020 in a bill of information with selling Louisiana box turtles on July 13, 2017.
If convicted, they face a maximum term of imprisonment of not more than five years, not more than three years of supervised release, a fine of $250,000.00, and a: mandatory special assessment of $100.00.
U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Fish and Wildlife Service ininvestigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
* * *
Convicted Felons Sentenced to Federal Prison for Illegally Possessing FirearmsRead the Press Release
MONROE, La. – Two Monroe, Louisiana men have been sentenced by United States District Judge Terry A. Doughty in connection with two separate arrests, Acting United States Attorney Alexander C. Van Hook announced today.
Larry Ranell Coleman, 29, was sentenced to 46 months (3 years, 10 months) in prison followed by 3 years of supervised release for being a convicted felon in possession of a firearm. On October 9, 2019, Monroe Police Department officers conducted a traffic stop of the vehicle Coleman was driving and he was unable to provide proof of insurance. Officers detected a marijuana odor coming from the vehicle and asked Coleman to step out. While searching the vehicle, officers found a loaded semi-automatic pistol under the driver’s seat. Coleman then fled the scene and was later arrested. He has prior convictions for simple robbery (2014), possession of marijuana (2019), and attempted possession of Xanax (2019). The conditions of Coleman’s state probation were that he is not to possess a firearm.
Moyati Killian, 33, was sentenced to 60 months (5 years) in prison followed by 3 years of supervised release for being a convicted felon in possession of a firearm. On August 27, 2019, Killian was working as a security guard at Sipper’s Sports Bar in Monroe, Louisiana, and was wearing a duty belt around his waist which carried a loaded semi-automatic pistol. Killian has prior felony convictions for possession of marijuana (2012), impersonating a public servant (2012), and credit card fraud (2006). Killian admitted that he had been convicted of felony offenses in both Mississippi and Texas and knew that he was a convicted felon and prohibited from possessing a firearm.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Robert F. Moody prosecuted the cases.
# # #
Columbus man pleads guilty to armed robberies at local Internet cafésRead the Press Release
COLUMBUS, Ohio – A Columbus man has agreed to plead guilty in a case involving the murder of a husband and wife in a local Internet café.
Desjuan R. Lee Harris, 25, offered his guilty plea in U.S. District Court today to two counts of robbery and two counts of brandishing a firearm during a crime of violence.
Harris and others were indicted by a federal grand jury in July 2019 for crimes related to a string of robberies of Internet gaming businesses, including one robbery at Players Paradise on East Broad Street that resulted in murder on Jan. 20, 2019.
Chris A. King, 25, is charged with three counts of murder (including the murder of a witness), and Dezhan Townsend, 21, and Justice B. Stringer, 25, are each charged with two counts of murder, which is a death-eligible crime.
According to court documents, Townsend, Stringer and King robbed the Internet café at gunpoint and allegedly murdered security guard Joseph Arrington and then his wife, employee Karen Arrington.
Harris was charged as a co-defendant for his role in two robberies at local Internet cafés prior to Jan. 20, 2019.
According to his plea, Harris and Townsend robbed Players Paradise at gunpoint on Dec. 10, 2018 and fled with $30,000 in cash.
On Jan. 7, 2018, Harris and others committed armed robbery at Planet Jackpot on Alum Creek Drive. During that robbery, they stole approximately $2,400 in cash.
Robbery is a crime punishable by up to 20 years in prison. Brandishing a firearm during a crime of violence involves a mandatory sentence of at least seven years on each count, to be served consecutively to any other sentence imposed. Congress sets the minimum maximum statutory sentence, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Thomas Quinlan and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorneys Kevin W. Kelley and Elizabeth A. Geraghty are representing the United States in this case.
# # #
Chinese Researcher Sentenced for Making False Statements to Federal AgentsRead the Press Release
BOSTON – A Chinese national was sentenced today in federal court in Boston for making false statements in connection with his theft of 19 vials of biological research.
Zaosong Zheng, 31, was sentenced by U.S. District Court Judge Denise J. Casper to time served (approximately 87 days), three years of supervised release and ordered removed from the United States. In December 2020, Zheng pleaded guilty to one count of making false, fictitious or fraudulent statements. Zheng was arrested on Dec. 10, 2019, at Boston’s Logan International Airport and charged by criminal complaint.
In August 2018, Zheng entered the United States on a J-1 visa and conducted cancer-cell research at Beth Israel Deaconess Medical Center in Boston from Sept. 4, 2018 to Dec. 9, 2019. On Dec. 9, 2019, Zheng stole vials of biological research, hid the vials in his luggage, and attempted to take them out of the United States aboard a flight destined for China. Federal officers at Logan Airport discovered the vials hidden in a sock inside one of Zheng’s bags, and not properly packaged. When asked by federal officers whether he was traveling with any biological items or research, Zheng lied and answered “no.” Zheng later admitted he had stolen the vials from a lab at Beth Israel. Zheng stated that he intended to bring the vials to China to use them to conduct research in his own laboratory and publish the results under his own name.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Denning, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office; and William Higgins, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office made the announcement today. Assistant U.S. Attorneys Benjamin Tolkoff and Jason Casey of Lelling’s National Security Unit prosecuted the case.
California Genetic Testing Lab Agrees to Pay $357,584 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A California diagnostic laboratory will pay $357,584 to resolve allegations that it violated the False Claims Act by submitting or causing to be submitted claims for genetic tests to Medicare without valid physician oversight, Acting U.S. Attorney Rachael A. Honig announced today.
According to the contentions of the United States contained in the settlement agreement:
From September 2015 to November 2015, Exceltox used the services of contractor Seth Rehfuss, of Somerset, New Jersey, who persuaded groups of senior citizens in senior housing complexes to submit to genetic testing, despite applicable Medicare rules requiring proper orders from a treating physician for such tests. Exceltox, in turn, submitted claims for payment to Medicare for Rehfuss’ genetic tests performed without valid physician oversight.
Rehfuss previously pleaded guilty in Trenton federal court to a superseding information charging him with conspiracy to commit health care fraud and was sentenced in May 2019 to 50 months in prison.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey; and the Cape May County Department of Aging and Disability Services, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Brunswick County Man Sentenced for Drug and Firearm ChargesRead the Press Release
NEW BERN, N.C. – A Shallotte man was sentenced today to 66 months in prison for Cocaine, Cocaine Base (Crack), and Firearm violations.
According to court documents, Anthony Junior Bell, 50, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute 500 Grams or More of Cocaine and 28 Grams or More of Cocaine Base (Crack), Possession with Intent to Distribute a Quantity of Cocaine and 28 Grams or More of Cocaine Base (Crack), and Possession of a Firearm by a Felon on November 13, 2019.
On December 18, 2018, investigators with the Brunswick County Sheriff’s Office (BCSO) in Bolivia, North Carolina, performed a traffic stop of a vehicle occupied by Bell. A child was seated in the back seat next to Bell.
A K-9 unit provided a positive alert for the presence of narcotics in the vehicle. Investigators seized a set of brass knuckles, 34.38 grams of cocaine base (crack), and 15.89 grams of cocaine from Bell.
Bell admitted that over the prior six months, he had distributed approximately one kilogram of cocaine.
Bell also admitted that he had a firearm at his residence in Shallotte, North Carolina. Agents went to that residence and seized a .38 caliber handgun. Bell had previously been convicted of a crime punishable by more than one year imprisonment, and so he was prohibited from possessing firearms.
On March 29, 2019, Bell was arrested. As he was being processed at the Brunswick County Detention Center, Bell removed 0.81 grams of heroin from his pants pocket and attempted to hide it by dropping it behind a computer at the intake desk.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-95-FL-1.
Billings woman sentenced to prison for illegally possessing gunRead the Press Release
BILLINGS—A Billings woman who admitted illegally possessing a handgun she threw out of a stolen vehicle during a law enforcement pursuit was sentenced today to 30 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Breanne Lee Wieder, 31, pleaded guilty on Aug. 4, 2020 to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the prosecution said that on Aug. 13, 2019, Yellowstone County Sheriff’s Office deputies and Billings Police Department officers pursued a stolen truck in the Lockwood area. Officers saw Wieder, the passenger, throw a pistol out the window. The pursuit ended a short time later. Officers recovered a .22-caliber pistol with an obliterated serial number from a front yard. The pistol was loaded with a round in the chamber. Ammunition for the pistol was recovered from the truck and Wieder’s purse. Wieder and the driver and co-defendant, Joseph Alan Sleeping Bear, were arrested for supervision violations and charges related to the stolen vehicle. Sleeping Bear was convicted in the federal case and sentenced to 45 months in prison.
Wieder was on state supervision for a prior felony conviction at the time of the offense and was prohibited from possessing firearms or ammunition.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Billings Police Department, Yellowstone County Sheriff’s Office, Montana’s Probation and Parole Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
XXX
Berkeley County woman admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jacqueline L. Krsul, of Falling Waters, West Virginia, has admitted to cocaine possession, U.S. Attorney Bill Powell announced.
Krsul, 30, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Krsul admitted to having cocaine base or “crack” in April 2020 in Morgan County.
Krsul 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 Timothy D. Helman is prosecuting the case on behalf of the government. The Morgan County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Anchorage Doctor Sentenced for Prescribing Medically Unnecessary Opioids in Health Care Fraud SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that U.S. District Court Judge Sharon L. Gleason sentenced Michael Don Robertson, 68, a former Anchorage psychiatrist, to 12 months home confinement and 5 years of probation for conspiracy to commit controlled substance fraud and one count of health care fraud. Robertson knowingly and intentionally distributed controlled substances outside the usual course of professional practice and without a legitimate medical purpose.
According to court documents, from May 2015 to March 2018, Robertson issued 465 prescriptions of meperidine to 30 different recipients, totaling 32,109 meperidine pills, knowing that the recipients did not truly need the medication for a legitimate medical purpose. The investigation revealed that Robertson issued the meperidine prescriptions as part of a conspiracy in which the recipients filled the meperidine prescriptions and, then, distributed the meperidine to Robertson. In exchange for the recipients diverting the meperidine to Robertson, Robertson provided prescriptions for controlled substances, including fentanyl and oxycodone, to the recipients. Meperidine, commonly known as Demerol, is a Schedule II controlled substance, and is an opioid with an abuse liability similar to morphine.
The investigation further revealed that Robertson failed to make and preserve accurate records regarding approximately 790 prescriptions for controlled substances and failed to keep any medical records whatsoever regarding five patients to whom he wrote prescriptions for controlled substances. In a scheme to obtain money from Medicaid, Robertson caused claims to be submitted to Medicaid regarding these 790 prescriptions, resulting in Medicaid paying $3,286.87 to Robertson’s medical practice. Further, Medicaid paid $3,601.52 to pharmacies for these 790 controlled substance prescriptions.
Robertson pleaded guilty to the charges on July 31, 2019. At sentencing today, Robertson apologized to the people that he involved in the scheme, the medical profession, and his family. Robertson surrendered his medical license and DEA Registration after being questioned by law enforcement.
The Court held that 12 months of home incarceration was appropriate due the COVID pandemic and the need to impose a just sentence due to the severity of the crime, while also avoiding disparity with sentences for other similar drug crimes. In addition to the 12-month home confinement, Robertson was ordered to complete 5 years of probation and pay restitution in the amount of $6,888.39 to Medicaid to reimburse the cost of the illegally prescribed drugs.
United States Attorney Bryan Schroder commended the law enforcement team that investigated this case. “This conviction is a reminder that COVID is not the only pandemic confronting America and Alaska; fighting the opioid epidemic remains an important priority for the Department of Justice. Federal law enforcement investigates and prosecutes unlawful drug distribution, including that crime committed by doctors.”
The U.S. Drug Enforcement Administration (DEA), the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), the State of Alaska Medicaid Fraud Control Unit (MFCU), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution in this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Acting Attorney General Jeffrey A. Rosen Regarding the Overrunning of the U.S. Capitol BuildingRead the Press Release
Acting Attorney General Jeffrey A. Rosen issued the following statement:
"The violence at our Nation’s Capitol Building is an intolerable attack on a fundamental institution of our democracy. From the outset, the Department of Justice has been working in close coordination with the Capitol Police and federal partners from the Interior Department, the Department of Homeland Security, and the National Guard, as well as the Metropolitan Police and other local authorities. Earlier this afternoon, the Department of Justice sent hundreds of federal law enforcement officers and agents from the FBI, ATF, and the U.S. Marshals Service to assist the Capitol Police in addressing this unacceptable situation, and we intend to enforce the laws of our land."
73-Year-Old Fayetteville Man Sentenced to 5 Years of Probation for Obtaining Almost $1M in VA Benefits Through FraudRead the Press Release
WINSTON-SALEM, N.C. – A man who pleaded guilty to obtaining healthcare benefits from the Department of Veterans Affairs through fraud was sentenced yesterday, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
WILLIE DOSHER CAIN, 73, of Fayetteville, North Carolina, pleaded guilty on June 17, 2020, to one count of embezzlement. On January 5, 2021, United States District Judge Thomas D. Schroeder sentenced CAIN to five years of probation and ordered him to perform 250 hours of community service. Judge Schroeder cited the ongoing Covid-19 pandemic and the defendant’s age and prior military service as factors in determining the sentence. CAIN was also ordered to pay $903,668.08 in restitution and a forfeiture money judgment in the amount of $150,000, and forfeited $155,041.30 in cash, a modified 2018 Toyota Sienna van, and a mobility scooter. In a related civil forfeiture action, CAIN forfeited a Carolina Beach condominium.
According to documents filed with the court, CAIN, a US Army and Fayetteville Police Department veteran, represented to the VA that as a result of shrapnel wounds sustained in Vietnam in 1965, he had suffered the loss of use of both legs, as well as loss of bowel and bladder control, that he was unable to perform daily activities such as dressing and bathing without assistance, and that he was dependent on a wheelchair or motorized scooter for mobility. Filed documents further state, however, that CAIN in fact maintained an active lifestyle throughout this time, including working as a firearms and concealed carry instructor, enjoying beach activities, playing basketball, dancing, and attending social events. He also bought a condominium at Carolina Beach on the third floor of a building which had no elevator. The investigation revealed that as a result of his false claims, CAIN received hundreds of thousands of dollars of VA benefits to which he was not entitled, in the form of direct payments for aid and attendance, modifications to his home, and the purchase and adaptation of vehicles.
This case was investigated by the Veterans Affairs – Office of the Inspector General. It was prosecuted by Assistant United States Attorneys Frank J. Chut and Meredith Ruggles.
###
5 January 2021
Yellowstone National Park Treasure Hunter Pleads GuiltyRead the Press Release
RODRICK DOW CRAYTHORN, 52, of Syracuse, Utah entered pleas of guilty to charges of excavating or trafficking in archeological resources, and injury or depredation to United States property in U.S. District Court on January 4, 2021. He was indicted by a federal grand jury on September 16, 2020. The indictment alleged that Craythorn was found digging in the Fort Yellowstone Cemetery between October 1, 2019 and May 24, 2020 inside Yellowstone National Park while looking for the treasure buried by Forrest Fenn. By pleading guilty Craythorn admits he is, in fact, guilty of the crimes charged.
“The hunt for the Forrest Fenn treasure was often viewed as a harmless diversion, but in this case it led to substantial damage to important public resources,” said US Attorney Mark Klaassen. “The Defendant let his quest for discovery override respect for the law.”
Excavating or trafficking in archeological resources carries a potential penalty of up to two years in prison, a fine of up to $20,000, and one year of supervised release. Injury or depredation to United States Property carries a penalty of not more than ten years imprisonment, up to a $250,000 fine, and three years of supervised release. Chief U.S. District Court Judge Scott W. Skavdahl accepted Craythorn’s plea and scheduled his sentencing on March 17, 2021 in Casper, Wyoming at the Ewing T. Kerr Federal Court House.
White Supremacist Sentenced for Role in Murder of Fellow Federal Prison InmateRead the Press Release
BEAUMONT, Texas – A 40-year-old federal inmate has been sentenced for his role in the murder of a fellow prisoner in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.
Michael Jason Shelton, of Henagar, Alabama, pleaded guilty on July 13, 2020, to accessory after the fact-murder, and was sentenced to 180 months in federal prison today by U.S. District Judge Marcia Crone.
On June 13, 2018, Rickey Fackrell, 36, of Vernal, Utah, and Christopher Cramer, 38, of Ogden, Utah, were both sentenced to death after being convicted by a jury of first degree murder following a six-week federal trial before Judge Crone.
According to information presented in court, beginning in March 2014, Cramer and Fackrell, inmates of the U.S. Penitentiary in Beaumont, Texas, murdered fellow inmate, Leo Johns. On June 9, 2014, Cramer and Fackrell stabbed Leo Johns to death at the federal prison. Shelton pleaded guilty to being an accessory to the murder. All three inmates were members of the white supremacy group, Soldiers of the Aryan Culture.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons-SIS. This case was prosecuted by Assistant U.S. Attorneys John B. Ross and Rachel Grove.
Waterloo Drug User Sentenced to Federal Prison for Possessing a Stolen FirearmRead the Press Release
A man who possessed a stolen firearm while being a drug user was sentenced today to more than two years in federal prison.
Chase David Grant, age 20, from Waterloo, Iowa, received the prison term after a July 17, 2020 guilty plea to possession of a firearm by a drug user.
In April 2018, law enforcement officers observed videos on social media showing Grant using drugs, including marijuana, and that, in at least one video, he appeared to have a gun. Later that month, officers were preparing to conduct a search at Grant’s home when they saw three individuals attempting to enter his home with a gun. Officers stopped the individuals. One of the individuals told officers that they had previously stolen the gun they had from Grant. He also told officers that they were there to collect money from Grant. Grant later admitted that the gun the three individuals possessed had been stolen from him. He also admitted that he had stolen that gun from someone in Colorado. Grant was a user of controlled substances at the time he possessed this stolen gun.
Since April 2018, Grant has been convicted of a number of state offenses, including burglary, forgery, malicious prosecution, possession of marijuana with the intend to deliver, failure to affix a tax stamp, and carrying weapons. The carrying weapons offense stemmed from a November 2018 traffic stop during which Grant was driving a car that smelled like marijuana and a firearm was found in the driver’s side door panel of the vehicle.
Grant was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Grant was sentenced to 30 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Grant is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2047.
Follow us on Twitter @USAO_NDIA.
U.S. Government Collects $7 Million in Iranian Assets for Victims of Terrorism FundRead the Press Release
The Justice Department announced the United States has collected $7 million of Iranian funds that will be allocated to provide compensation to American victims of international state-sponsored terrorism.
The funds are the United States’ share of a civil forfeiture investigation that is part of the government’s pursuit of a complex international conspiracy which spanned the globe. The conspiracy’s purpose was to violate the United States imposed international economic sanctions regime on Iran and included several Iranian nationals and others, who fraudulently transferred approximately $1 billion worth of Iranian-owned funds to accounts around the world.
“The funds subject to today’s stipulation had been destined to benefit criminal actors who engaged in an elaborate scheme to violate U.S. sanctions against Iran, one of the world’s leading state sponsors of terrorism,” said Acting Assistant Attorney General David Burns of the Justice Department’s Criminal Division. “Thanks to assistance from our foreign partners and the combined efforts of the Criminal Division, the U.S. Attorney’s Office for the District of Alaska, the FBI, and the IRS, the forfeited funds will instead be used to directly compensate victims of state sponsors of terrorism.”
“I thank our law enforcement partners for their long-term and dedicated diligence in securing these funds for victims of state-sponsored terrorism,” said U.S. Attorney Bryan D. Schroder for the District of Alaska. “The United States also acknowledges and expressed appreciation for the cooperation of UAE authorities, the Dubai Police Department’s Anti-money Laundering and Financial Crimes Division and the Government of Ras al Khaimah, the Office of the Prosecutor General of Georgia, and the Supreme Prosecutor’s Office and Ministry of Justice of the Republic of Korea, without whom this resolution would not have been possible.”
“The FBI will aggressively pursue those who aid terrorist financiers and those who abuse the U.S. financial system in the process,” said Special Agent in Charge Robert Britt of the FBI’s Anchorage Field Office. “Due to the collaborative effort put forth by the FBI and our partners, it is with great satisfaction that a portion of these successfully forfeited funds will go to American victims of international state-sponsored terrorism.”
“IRS-CI special agents are experts at tracing the flow of funds and throughout this investigation their skills were on display,” said IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Justin Campbell. “We are pleased that victims of state sponsored terror will receive these funds, and we will continue working with our partners to unravel financial transactions that promote terrorism.”
Beginning in 2011 and continuing up to 2014, the conspirators, including three Iranian nationals and, allegedly, one U.S. citizen, defrauded South Korean banks by submitting false documents purporting to show that Iranian companies were doing legitimate business with Korean companies. Based on these false documents, the conspirators succeeded in unlawfully transferring approximately $1 billion worth of Iranian-owned funds out of South Korea and into the world’s financial markets.
The American who is an alleged conspirator, Kenneth Zong, was indicted in December 2016 in the District of Alaska, for 47 counts of violating the International Emergency Economic Powers Act (IEEPA) and the Iranian Transaction and Sanctions Regulations (ITSR), providing unlawful services to the Government of Iran, conspiracy to commit money laundering, and money laundering. Kenneth Zong remains in South Korea, where he recently completed serving a sentence of longer than five years for violating Korean law as part of the same scheme.
The conspirators transferred the Iranian-owned funds to accounts worldwide, including to Anchorage, Alaska. In 2018, a federal judge sentenced Mitchell Zong (i.e. Kenneth Zong’s son) to two and a half years imprisonment for his role in laundering approximately $968,000 of Iranian-derived funds, knowing the funds came from his father’s illegal transactions with Iranian nationals. In a separate forfeiture civil action, Mitchell Zong and other members of his family were ordered to forfeit to the United States approximately $10 million in assets, which were purchased with funds traceable to Kenneth Zong’s 2011 illegal IEEPA activity in Seoul, South Korea.
In addition to the prosecutions of Kenneth Zong and Mitchell Zong, the U.S. Attorney’s Office filed a forfeiture complaint seeking to seize money held in a sovereign wealth fund in the United Arab Emirates. These funds, which are also traceable to the scheme, were part of a down-payment made by the Iranian co-conspirators for the purchase of a Sheraton Hotel in Tbilisi, Georgia in 2011 and 2012. The agreement announced today resolves that forfeiture case with a proposed order that $7 million be forfeited to the United States. The forfeiture case, Civil No. 3:20-cv-00126-JMK, was filed and remains pending in the U.S. District Court for the District of Alaska.
The $7 million will be allocated to the U.S. Victims of State Sponsored Terrorism Fund, which Congress established to provide compensation to certain individuals who were injured in acts of international state-sponsored terrorism, including victims of the 1979 U.S. embassy hostage situation in Iran, among others.
The Justice Department commended the FBI and IRS-CI for the successful investigation.
The forfeiture case and the case against Mitchell and Kenneth Zong were litigated by Assistant U.S. Attorneys Steven Skrocki and Jonas Walker. Former Deputy Chief Woo S. Lee and Senior Trial Attorney Michael Olmsted of the Criminal Division’s Money Laundering and Asset Recovery Section handled the prosecution. The Justice Department’s Office of International Affairs provided valuable assistance in this matter.
An indictment is merely an allegation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For more information regarding the U.S. Victims of State Sponsored Terrorism Fund, see U.S. VICTIMS OF STATE SPONSORED TERRORISM FUND (usvsst.com).
U.S. Government Collects $7 Million in Iranian Assets for Victims of Terrorism FundRead the Press Release
Anchorage, Alaska –U.S. Attorney Bryan Schroder announced today that the United States has collected $7 million dollars of Iranian funds that will be allocated to provide compensation to American victims of international state-sponsored terrorism.
According to U.S. Attorney Schroder, the funds are the United States’ share of a civil forfeiture investigation that is part of the Government’s pursuit of a complex international conspiracy which spanned the globe. The conspiracy’s purpose was to violate the U.S. imposed international economic sanctions regime on Iran and included several Iranian nationals and others, who fraudulently transferred approximately one billion dollars-worth of Iranian-owned funds to accounts around the world.
Beginning in 2011 and continuing up to 2014, the conspirators, including three Iranian nationals and, allegedly, one U.S. citizen, defrauded South Korean banks by submitting false documents purporting to show that Iranian companies were doing legitimate business with Korean companies. Based on these false documents, the conspirators succeeded in unlawfully transferring approximately one billion dollars-worth of Iranian-owned funds out of South Korea and into the world’s financial markets.
The American who is an alleged conspirator, Kenneth Zong, was indicted in December 2016 in the District of Alaska, for 47 counts of violating the International Emergency Economic Powers Act (IEEPA) and the Iranian Transaction and Sanctions Regulations (ITSR), Providing Unlawful Services to the Government of Iran, Conspiracy to Commit Money Laundering, and Money Laundering. Kenneth Zong remains in South Korea, where he recently completed serving a sentence of longer than five years for violating Korean law as part of the same scheme.
The conspirators transferred the Iranian-owned funds to accounts worldwide, including to Anchorage, Alaska. In 2018, a federal judge sentenced Mitchell Zong (i.e. Kenneth Zong’s son) to two and a half years imprisonment for his role in laundering approximately $968,000 of Iranian-derived funds, knowing the funds came from his father’s illegal transactions with Iranian nationals. In a separate forfeiture civil action, Mitchell Zong and other members of his family were ordered to forfeit to the United States approximately $10 million in assets, which were purchased with funds traceable to Kenneth Zong’s 2011 illegal IEEPA activity in Seoul, South Korea.
In addition to the prosecutions of Kenneth Zong and Mitchell Zong, the U.S. Attorney’s Office filed a forfeiture complaint seeking to seize money held in a sovereign wealth fund in the United Arab Emirates. These funds, which are also traceable to the scheme, were part of a down-payment made by the Iranian co-conspirators for the purchase of a Sheraton Hotel in Tbilisi, Georgia in 2011 and 2012. The agreement announced today resolves that forfeiture case with a proposed order that $7 million be forfeited to the United States. The forfeiture case, Civil No. 3:20-cv-00126-JMK, was filed and remains pending in the U.S. District Court for the District of Alaska.
The $7 million dollars will be allocated to the U.S. Victims of State Sponsored Terrorism Fund, which Congress established to provide compensation to certain individuals who were injured in acts of international state-sponsored terrorism, including victims of the 1979 U.S. embassy hostage situation in Iran, among others.
The United States acknowledged and expressed appreciation for the cooperation of UAE authorities, the Dubai Police Department’s Anti-money Laundering and Financial Crimes Division and the Government of Ras al Khaimah, the Office of the Prosecutor General of Georgia, and the Supreme Prosecutor’s Office and Ministry of Justice of the Republic of Korea, without whom this resolution would not have been possible.
U.S. Attorney Schroder commended the Federal Bureau of Investigation (FBI) and IRS Criminal Investigation (IRS-CI) for the successful investigation. “I thank our law enforcement partners for their long-term and dedicated diligence in securing these funds for victims of state-sponsored terrorism.”
“The FBI will aggressively pursue those who aid terrorist financiers and those who abuse the U.S. financial system in the process,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “Due to the collaborative effort put forth by the FBI and our partners, it is with great satisfaction that a portion of these successfully forfeited funds will go to American victims of international state-sponsored terrorism.”
“IRS-Criminal Investigation (IRS-CI) special agents are experts at tracing the flow of funds and throughout this investigation their skills were on display,” said IRS-CI Special Agent in Charge Justin Campbell. “We are pleased that victims of state sponsored terror will receive these funds, and we will continue working with our partners to unravel financial transactions that promote terrorism.”
The forfeiture case and the case against Mitchell and Kenneth Zong were litigated by Assistant U.S. Attorneys Steven Skrocki and Jonas Walker. Former Deputy Chief Woo S. Lee and Senior Trial Attorney Michael Olmsted of the Criminal Division’s Money Laundering and Asset Recovery Section litigated the forfeiture cases with Assistant U.S. Attorneys Steven Skrocki and Jonas Walker. The Justice Department’s Office of International Affairs provided valuable assistance in this matter.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
For more information regarding the U.S. Victims of State Sponsored Terrorism Fund, see U.S. VICTIMS OF STATE SPONSORED TERRORISM FUND (usvsst.com)
U.S. Attorney’s Office collects more than $40 million in civil and criminal actions for fiscal year 2020Read the Press Release
U.S. Attorney Justin Herdman announced today that the Northern District of Ohio office collected $28,603,085.75 in civil and criminal actions in the fiscal year 2020 (FY 2020). Of this amount, $21,612,213.13 was collected in civil actions, and $6,990,872.62 was collected in criminal actions.
Additionally, the U.S. Attorney’s Office for the Northern District of Ohio, working with partner agencies and divisions, collected $11,469,460.00 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for various law enforcement purposes.
Accordingly, a combined $40,072,545 was collected by the U.S. Attorney’s Office for the Northern District of Ohio in FY 2020.
“This year, when many of our processes and procedures were forced to change due to the pandemic, the Northern District was nonetheless able to recover a substantial number of funds from numerous civil and criminal judgments,” said U.S. Attorney Justin Herdman. “When we represent the United States of America and secure a collection judgment, we will seek to recover every dollar possible.”
The Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020, ending Sept. 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
Notable collections in fiscal year 2020 include:
The Cannon Corporation, aka Cannon Design, $9,000,000
In 2016, Cannon Design agreed to pay a $12 million dollar penalty, implement a series of corporate reforms and divest itself from a large project to resolve the company’s criminal liability for the conduct of more than a dozen employees, including paying bribes and kickbacks to obtain confidential information related to Department of Veterans Affairs construction projects.
Mu Sigma, Inc, $1,600,000
This settlement resulted in a recovery of $1.6 million after a joint criminal investigation into an international analytics service company alleged to be illegally using B-1 visitor for business visas to circumvent the H1-B nonimmigrant worker visa cap. This was a joint investigation by the U.S. Attorney’s Office in the Northern District of Ohio, Northern District of Texas, Department of Homeland Security and the Department of State.
Alex Spirikaitis, $671,366.90
Spirikaitis was ordered to pay $15,000,000 in restitution in December of 2014 after entering a guilty plea to leading a conspiracy that defrauded a credit union out of $15 million.
Donald R. Peyatt, $250,000
Peyatt was ordered to pay $250,000 in restitution in August of 2019 after entering a guilty plea to making material false statements to the IRS regarding income from a scrap steel business he owned with another person.
Ryan Driscoll, $208,693
Driscoll was ordered to pay $208,693.00 in restitution in July of 2020 after entering a guilty plea to running an illegal sports gambling business with others, laundering the proceeds and filing a false income tax return.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.
While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Peter McCoy Launches Campaign to Thank Law Enforcement OfficersRead the Press Release
Columbia, South Carolina --- With the national Law Enforcement Appreciation Day on Saturday, U.S. Attorney Peter McCoy announced today the launch of his office’s “Thank a Law Enforcement Officer” campaign. The campaign encourages the public to send thank you notes to the law enforcement offices in their area.
“Each and every day, our law enforcement officers put on their uniforms and leave the safety of their homes and the comfort of their families to protect and serve our communities,” said U.S. Attorney McCoy. “Some days on the job, they are put in extremely dangerous situations; and, unfortunately, some give their lives to protect ours. This campaign ensures our law enforcement officers know how much we appreciate their sacrifice. We stand with them as they work to make our communities safer.”
Due to COVID-19, U.S. Attorney McCoy encourages the public to mail the thank you notes to the law enforcement offices, instead of dropping them off in person. Additionally, the Law Enforcement Coordinator for the U.S. Attorney’s Office, Lori Vernali, can help distribute the thank you notes.
“The U.S. Attorney’s Office cannot complete the work it does without the support of our law enforcement partners,” said Vernali. “Should the public have any trouble determining the offices that have jurisdiction in their area, we are here to help deliver the messages to the appropriate agencies for them.”
Those wishing to participate should send a note to any law enforcement agency in their area or to the following for delivery by the U.S. Attorney’s Office:
United States Attorney’s Office
Attn: Law Enforcement Coordinator
1441 Main Street, Suite 500
Columbia, SC 29201
#####
U.S. Attorney G. Zachary Terwilliger Announces DepartureRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced that he will step down from his post as U.S. Attorney for the Eastern District of Virginia (EDVA) effective 11:59 p.m. on January 15.
“It is with tremendous gratitude for the women and men of Team EDVA, our selfless federal, state, and local law enforcement partners, and my incredibly supportive family that I conclude my time in public service,” said Terwilliger. “It has been the honor of honors to be in the arena with so many dedicated individuals in the pursuit of justice, and I feel so fortunate to conclude my service as the United States Attorney in the district where it all began. To the people of the EDVA, thank you for the extraordinary opportunity to serve you. May you and your families have a safe, healthy, and productive 2021.”
Terwilliger’s tenure at EDVA will be remembered for his relentless efforts to increase public safety and security across the Commonwealth, as well as his commitment to the approximately 300 employees of the Eastern District whom he always referred to as “Team EDVA.”
Terwilliger directed significant resources towards combatting the opioid epidemic; developed a new illegal firearms trafficking initiative designed to thwart gun running in the DMV; worked tirelessly to further the District’s white-collar footprint by enhancing collaboration with DOJ’s Fraud Section; signed the first MOU with the new Special Inspector General for Pandemic Recovery; oversaw some of the most important national security cases in the country; was the embodiment of federal, state, and local law enforcement collaboration by regularly hosting and attending law enforcement roundtables and summits, including the Peninsula Violent Crime Summit in June 2019, and the Tri-Cities Violent Crime Summit in September 2019, where he oversaw transformational violent crime initiatives in both Richmond and the Tri-Cities (Petersburg, Colonial Heights, and Hopewell) areas; and frequently traveled the District to meet with police chiefs and sheriffs with a commitment to work hand and glove to provide support to their efforts.
Terwilliger began his career at EDVA as an intern in 1999, returned in 2005 as a summer law clerk, was appointed as a Special Assistant U.S. Attorney in 2008, and was hired as an Assistant U.S. Attorney in 2010. Terwilliger prosecuted numerous violent crime, fraud, organized crime, and human trafficking cases, and managed law enforcement task forces focusing on human trafficking and firearms. In addition to his prosecutorial duties, Terwilliger served as a counselor to former U.S. Attorney Neil H. MacBride, then served as a detailed AUSA and counsel to Senate Judiciary Chairman Senator Chuck Grassley. In January of 2017, Terwilliger, then a career prosecutor, was named co-lead of the Department of Justice Beachhead Team and helped to standup the Department during the first weeks of the new administration. Often working 20-hour days, Terwilliger provided critical support to components across the Justice Department as an Associate Deputy Attorney General in the Office of Deputy Attorney General (ODAG). He also supported the Attorney General, Deputy Attorney General, and had responsibility for oversight and collaboration with the Justice Department’s Criminal Division, as well as many other areas.
“I first met Zach when he arrived in the Deputy Attorney General’s office on January 20, 2017,” said Lee Lofthus, Assistant Attorney General for Administration, Department of Justice. “He hit the ground running and never stopped. Zach’s close work with Justice Department leadership and his teamwork with the Justice Management Division was outstanding.”
In May 2018, after nearly 18 months of service in ODAG including as Chief of Staff, Terwilliger was appointed as U.S. Attorney. With the support of Virginia’s two Democratic Senators, Mark Warner and Tim Kaine, Terwilliger was nominated by the President and in September 2018 was unanimously confirmed by the United States Senate as the 62nd United States Attorney for the Eastern District of Virginia.
In a joint statement, Senators Warner and Kaine said: “We were pleased to recommend Mr. Terwilliger to fill the role of U.S. Attorney for the Eastern District of Virginia. He has done critical work these past few years in the position, and we thank Mr. Terwilliger for his service to the Eastern District.”
Notably, Terwilliger supervised investigations into and secured charges or convictions in numerous internationally significant cases, including against two alleged ISIS militants charged with a hostage-taking scheme that led to multiple deaths of Americans in Syria; a Russian national charged with interfering in the U.S. political system; a former CIA officer convicted of espionage; MS-13 gang members charged in connection with multiple murders of juveniles; the extradition of a Senior Sinaloa Cartel leader to the U.S.; the trial conviction of a doctor who performed unnecessary and irreversible surgeries on women; a prolific firearms trafficker sentenced for illegally dealing over 200 guns; a former doctor sentenced for operating a pill mill that illegally distributed over 600,000 oxycodone pills; arrests of 35 defendants in Operation Cookout and recovery of enough fentanyl to potentially kill 14 million people; and corporate resolutions including an $850 million agreement with Petrobras, a $33 million agreement with Lumber Liquidators, a $46 million agreement with Hydro Extrusion Portland, Inc., a $137 million agreement with Walmart, and a $75 million agreement with Samsung Heavy Industries, among many others.
“On behalf of the women and men of ATF, I would like to express my sincerest appreciation to U.S. Attorney G. Zachary Terwilliger for his unwavering support of ATF’s mission – protecting the public from violence in our communities and enforcing federal firearms laws,” said Regina Lombardo, Deputy Director of ATF. “U.S. Attorney Terwilliger has been an active member of ATF’s Crime Gun Intelligence Governing Board; he understands the value of using technology and science to identify and prosecute criminals who use firearms to terrorize communities and kill innocent people. U.S. Attorney Terwilliger has been a driving force behind the Department of Justice’s Project Guardian initiative, promoting enhanced intelligence collection, information sharing, and coordinated responses necessary to address gun violence. As a United States Attorney, his work epitomizes true leadership and public service, and it was my honor to present him with the ATF Director’s Award this year. U.S. Attorney Terwilliger’s partnership with ATF’s Washington Field Division has been nothing short of extraordinary, and the Eastern District of Virginia is a safer place because of him. I sincerely wish him all the best in his next endeavor. He has my utmost respect.”
Under Terwilliger’s leadership, EDVA saw an increase in the number of criminal defendants charged in 2018 and 2019, going from 924 in 2017 to 1,029 in 2018, and to 1,091 in 2019.
“Our approach was to fish with a spear, not a net,” said Terwilliger. “Meaning it was not about mass arrests, but about strategically using federal resources to arrest those repeat and violent offenders that commit a disproportionate amount of violent crime and who have already had multiple opportunities at the state level.”
Leveraging EDVA’s strong partnerships with federal, state, and local law enforcement, during Terwilliger’s first full fiscal year after being confirmed by the U.S. Senate in September 2018, EDVA increased by over 18 percent the number of defendants charged with public safety and violent crime offenses, including cases involving the Organized Crime and Drug Enforcement Task Force (OCDETF), Project Guardian, Project Safe Neighborhoods, Project Safe Childhood, and/or other violent crimes.
“U.S. Terwilliger showed extraordinary commitment as a partner in the efforts to rid the City of Petersburg of dangerous criminals and change the lives of our citizens who lived in constant fear,” said Travis Christian, Chief of Petersburg Bureau of Police. “His efforts were not just conversations from an office. He helped put actual boots on the ground here in Petersburg. He traveled to the city, walked the streets and met with citizens, and ensured them that he was committed to providing the city with the necessary resources to restore peace and comfort back into our communities. As a result, U.S. Attorney Terwilliger helped remove from the streets some of Petersburg’s most dangerous criminals and prevented them from continuing to bring harm and danger to our city. His effort is representative of the team of true professionals at EDVA that have proven to be invaluable to the safety of the citizens of the City of Petersburg, Commonwealth of Virginia, and the United States of America.”
Under Terwilliger’s leadership, the civil litigation practice in EDVA has achieved significant and numerous successes, including a final Judgement and Permanent Injunction against former CIA employee Edward Snowden; the Justice Department’s largest ever settlement against a property management company for Alleged Violations of Servicemembers Civil Relief Act; an Americans with Disabilities Act (ADA) settlement agreement with a durable medical equipment company which operates approximately 800 centers in 48 states; and the establishment of a new Civil Rights Enforcement Unit at EDVA, which is the first at a U.S. Attorney’s Office nationwide to have multiple Assistant U.S. Attorneys 100 percent dedicated to enforcing the rights of persons with disabilities under the Americans with Disabilities Act (ADA). For Terwilliger, who overcame severe dyslexia to become a successful student, the establishment of a unit focused on disability rights was a goal from Day One.
Terwilliger invested heavily in filling the attorney ranks across EDVA with accomplished and seasoned lawyers from a diversity of educational and familial backgrounds and welcomed nearly 60 Assistant U.S. Attorneys and long-term Special Assistant U.S. Attorneys in his approximately 32 months as U.S. Attorney. Terwilliger also showed a strong commitment to diversity across EDVA, building the most diverse supervisory team in EDVA history with unprecedented numbers of minorities and women serving in senior management.
“We are pleased to see Mr. Terwilliger’s commitment to pursuing diversity across the attorney ranks in EDVA, ensuring that the office reflects the communities they serve,” said Jane Reynolds, member of the Old Dominion Bar Association. “He has been a thoughtful and dedicated partner, and we are thankful for his continued support of ODBA. We wish Mr. Terwilliger and his family the very best.”
Upon Terwilliger’s departure, Raj Parekh, a career federal prosecutor and EDVA’s First Assistant U.S. Attorney, will serve as Acting U.S. Attorney. Parekh will become the first Indian-American and minority in the 232-year history of the Office to serve as EDVA’s U.S. Attorney (acting or otherwise).
“Lest there be any doubt, the accomplishments above are a credit to the amazing women and men of EDVA and our partner agencies,” said Terwilliger. “I am so humbled to have had the privilege to work alongside them.”
After a brief transition period and a few days off, Terwilliger will be joining Vinson & Elkins LLP as a partner in its Washington, D.C. office.
Terwilliger’s biography and high-resolution photo can be found here.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Craig Carpenito Recognizes Newark Public Safety Director Anthony F. Ambrose’s Significant Contributions to Cooperative Law EnforcementRead the Press Release
NEWARK, N.J. – City of Newark Public Safety Director Anthony F. Ambrose was recognized today by the U.S. Attorney’s Office for the District of New Jersey for his exceptional contributions to cooperative law enforcement in the State of New Jersey, U.S. Attorney Craig Carpenito announced.
“As I have said many times, Director Ambrose is a national treasure,” U.S. Attorney Carpenito said. “Through his leadership, we have benefited from an unprecedented level of cooperation and proactive participation in our efforts to suppress crime in the great City of Newark. Over the past five years, he has transformed the Newark Police Department under the Department of Justice’s Consent Decree and produced record levels of crime reduction in this city.”
As the leader of the City of Newark’s Department of Public Safety, Director Ambrose has fostered collaborative, productive working relationships among federal, state, and local partners, including the U.S. Attorney’s Office, the Newark Police Department, the Essex County Prosecutor’s Office, the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Jersey State Police, the New Jersey Attorney General’s Office, the New Jersey Office of Homeland Security & Preparedness, and numerous other state and local agencies and police departments. The information-sharing and investigative partnerships that have resulted from these relationships has proven critical to investigating, prosecuting, and suppressing violent crime in the City of Newark and surrounding areas.
Among other achievements during Director Ambrose’s tenure, the Newark Violent Crime Initiative (VCI) was awarded an Attorney General’s Award by then-U.S. Attorney General William P. Barr in October 2019. The Newark VCI was formed in August 2017 as a community-wide cooperative effort aimed at 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. The Newark VCI has not only improved the community, but has strengthened relationships among federal, state, county and city agencies as a result of the trust developed among the participants.
The VCI’s community-wide, collaborative approach has had a powerful impact on improving the community. Due in part to the VCI’s concentrated efforts, between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victims city-wide. In 20l9, the number of shooting victims and shooting incidents declined another 39 percent when compared to the same time period in 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades. And in 2020, a year in which violent crime spiked in various places across the country, including other New Jersey cities, Newark maintained the same low in the number of murders.
Director Ambrose has also worked closely with the U.S. Attorney’s Office as part of the Department of Justice’s Project Guardian, which was announced by the Department in November 2019 and is a targeted approach to reducing gun crime. Project Guardian is based on five core principles, which include coordinated prosecution and improved information sharing. In the fiscal year that ended Sept. 30, 2020, the U.S. Attorney’s Office charged 342 individuals with gun offenses. Of those individuals, 252 were prior convicted felons who were prohibited from possessing firearms, and almost 90 possessed firearms in furtherance of, or in relation to, drug trafficking offenses or crimes of violence, such as carjackings and shootings. Many of these cases were the result of close coordination and information sharing with Director Ambrose and the Newark Department of Public Safety.
Director Ambrose was born and raised in Newark. He received both his Bachelor of Arts and Master of Arts degrees from Farleigh Dickinson University. He is also a graduate of the FBI National Academy. In 1986, Director Ambrose joined the Newark Police Department as a police officer, rising through the ranks to become the Chief of Police in 1999 and the Police Director in 2006. Director Ambrose then served as Essex County Undersheriff from 2006 to 2008, at which point he became Chief of Detectives for the Essex County Prosecutor’s Office. In January 2016, Director Ambrose accepted Mayor Ras Baraka’s invitation to become the City of Newark’s first ever Director of Public Safety, overseeing the consolidation of police, fire, and emergency management operations. As Director, he oversees more than 1,960 employees, comprising 996 sworn police officers, 611 firefighters, and 346 civilian employees, and manages a budget that exceeds $200 million.
Two Florida men charged with stealing campers and attempting to transport them across state linesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Florida men were indicted today on charges involving the stealing of campers from a business in Elkins, West Virginia, U.S. Attorney Bill Powell announced.
Taylon Batista Garcia, 35, and Yankier Gaston Garcia, 32, are each charged with one count of “Conspiracy to Commit Offense against the United States” and one count of “Attempted Transportation of Stolen Property in Interstate Commerce.” Both men are accused of driving heavy-duty pickup trucks into Elkins, West Virginia, and stealing a 2020 Jayco North Point Camper and a 2021 Grand Design Reflection camper from Roy’s RV Supercenter in July 2020. The Garcias are then accused of attempting to transport the stolen campers across state lines. The campers were valued at $145,260.
The theft at Roy’s RV involved four campers being hauled by four different trucks. The other two stolen campers, both 2020 Keystone Passport models, were later recovered that day just off Interstate 77 in Odd, West Virginia. The identities of the drivers of the other two trucks are still being investigated.
Taylon and Yankier are each facing up to five years of incarceration and a fine of up to $250,000 for the conspiracy charge and each face up to 10 years of incarceration and a fine of up to $250,000 for the stolen property charge. 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 Jarod J. Douglas is prosecuting the case on behalf of the government. The FBI and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulsa Man Sentenced for Bank RobberiesRead the Press Release
A man who robbed two Tulsa banks, claiming to have a bomb and firearms, was sentenced today in federal court, announced U.S. Attorney Trent Shores.
Thomas Lawrence Dean, 52, of Tulsa, has been sentenced to 12 years in federal prison and 3 years of supervised release for two counts of bank robbery using a dangerous weapon, conveying false information on hoaxes, and being a felon in possession of a .38 Special revolver and associated ammunition. Further, restitution is mandatory to IBC Bank in the amount of $1,448.00.
“Thomas Dean earned every day of this twelve-year sentence when he used the threat of bombs and guns to rob two banks, even going so far as to create a fake explosive device. Moreover, the note he passed to the teller was just as scary as he threatened a ‘killing spree,’” said U.S. Attorney Trent Shores. “Thank goodness for the swift response of the Tulsa Police Department and Federal Bureau of Investigation. Their joint investigation paired with the prosecutorial efforts of Assistant U.S. Attorney Rob Raley achieved this just result and accountability for this criminal.”
In his plea agreement, Dean admitted to robbing an International Bank of Commerce (IBC) on July 1, 2019. Dean stated that he disguised himself and carried a black bag containing an apparatus that looked like an explosive device. According to court documents, Dean approached a teller and handed her a note demanding money. In the note, Dean indicated that he was in possession of a bomb and firearm. He left the bank with a total of $500 then discarded the black bag with the fake explosive device and two BB guns inside.
On July 10, 2019, Dean also robbed an Arvest Bank, handing the teller a note that stated, “This is a robbery….Don’t make this a killing spree.” Dean also indicated in the note that he had a firearm. The defendant left the bank with $1,250 but was later located by Tulsa Police Officers.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Robert T. Raley prosecuted the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Three FCI Hazelton Inmates indicted on assault and contraband chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three inmates at Federal Correction Institution Hazelton in Bruceton Mills, West Virginia, were indicted today on various charges, U.S. Attorney Bill Powell announced.
Edward Smith, 38, was indicted on one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” Smith is accused of assaulting another inmate in October 2019.
Dell Dingle, 44, was indicted on one count of “Assault of a Correctional Officer Involving Physical Contact” and one count of “Possession of a Prohibited Object (Narcotic).” Dingle is accused of attacking a federal correctional officer during the officer’s workday in May 2019. Dingle is also accused of having suboxone inside the prison in October 2019.
Sebastian M. Moore, 23, was indicted on one count of “Assault of a Correctional Officer Involving Physical Contact.” Moore is accused of assaulting a federal correctional officer while the officer was on duty in March 2020.
Smith is facing up to 10 years of incarceration and a fine of up to $250,000. Dingle faces up to eight years of incarceration and a fine of up to $250,000 for the assault charge and faces up to 20 years of incarceration and a fine of up to $250,000 for the drug charge. Moore faces up to eight years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting all three cases on behalf of the government. The Federal Bureau of Prisons investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Statement Regarding Federal Civil Rights Investigation into Shooting of Mr. Jacob BlakeRead the Press Release
Statement Regarding Federal Civil Rights Investigation
Into Shooting of Mr. Jacob BlakeMatthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, and Eric S. Dreiband, Assistant Attorney General for the Civil Rights Division of the Department of Justice, released the following statement related to the August 23, 2020 shooting of Mr. Jacob Blake.
As previously announced, a federal civil rights investigation into the shooting of Mr. Jacob Blake is ongoing. The investigation is being conducted by the Federal Bureau of Investigation, in cooperation with the Wisconsin Division of Criminal Investigation. The federal investigation is being overseen by prosecutors from the U.S. Attorney’s Office and the U.S. Department of Justice’s Civil Rights Division who will make an independent charging decision. Federal authorities are committed to investigating this matter as thoroughly and efficiently as possible.
Also ongoing are federal investigations into arson, rioting, and other violent crimes that occurred in Kenosha in August 2020. United States Attorney Krueger and Assistant Attorney General Dreiband urged everyone to act peacefully and abide by the law.
# # #
For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Statement Regarding Federal Civil Rights Investigation into Shooting of Jacob BlakeRead the Press Release
Eric S. Dreiband, Assistant Attorney General for the Civil Rights Division of the Department of Justice, and Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin released the following statement related to the Aug. 23, 2020, shooting of Jacob Blake:
“As previously announced, a federal civil rights investigation into the shooting of Jacob Blake is ongoing. The investigation is being conducted by the Federal Bureau of Investigation, in cooperation with the Wisconsin Division of Criminal Investigation. The federal investigation is being overseen by prosecutors from the U.S. Attorney’s Office and the U.S. Department of Justice’s Civil Rights Division who will make an independent charging decision. Federal authorities are committed to investigating this matter as thoroughly and efficiently as possible.
Also ongoing are federal investigations into the arson, rioting, and other violent crimes that occurred in Kenosha in August 2020. U.S. Attorney Krueger and Assistant Attorney General Dreiband urged everyone to act peacefully and abide by the law.”
Serial Stalker Sentenced to Nearly Five Years for Making Threats and Mailing A Dead AnimalRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington today sentenced Romney Christopher Ellis (57, Indianapolis) to 4 years and 10 months in federal prison for making threats and mailing a dead animal using the U.S. Mail. The court also ordered Ellis not to have contact with any of the victims associated with the case.
Ellis had pleaded guilty on April 23, 2020.
According to court documents, for at least four years, Ellis engaged in a campaign of harassment against a victim residing in Hillsborough County. Between 2012 and 2018, a Hillsborough County judge issued multiple domestic violence injunctions against Ellis on the victim’s behalf. Ellis repeatedly violated the orders, including by stalking and threatening the victim, and, in 2013, was convicted of aggravated stalking.
In 2019, Ellis continued his harassment campaign against the victim through text messages, photographs, and videos. Ellis’s communications involved threats of violence, including messages indicating that he intended to travel from Indiana to Florida, and planned to decapitate and set the victim on fire. Ellis routinely made racially and sexually charged statements in the text messages, including sending sexually explicit images of himself to the victim. Ellis also used the U.S. Mail to harass the victim and victim’s family and friends. One on occasion, Ellis mailed a package to the victim’s home containing a dead rat and black rose.
In February 2020, law enforcement executed a search warrant at Ellis’s home in Indianapolis and recovered a handwritten note containing the names and addresses of the victim and the victim’s family and friends.
The investigation also revealed that Ellis had a history of repeatedly stalking and victimizing people throughout his life. Court documents showed that since as early as 1993 and continuing through Ellis’s date of arrest in March 2020, 14 individuals had sought and obtained protective orders against Ellis based on his harassment, stalking, threats, and acts of violence.
This case was investigated by U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Ross Township Man Sentenced to 10 Years for Attempted Coercion of a Minor for SexRead the Press Release
PITTSBURGH - A former resident of Ross Township, Pennsylvania, has been sentenced in federal court to 10 years’ imprisonment followed by 10 years’ supervised release on his conviction of Attempted Coercion and Enticement of a Minor to Engage in Illegal Sexual Activity, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Thomas Perry Stultz, age 38.
According to information presented to the court, from February 6, 2019 until on or about April 5, 2019, Stultz communicated online and via text messages with an undercover FBI agent, believing the agent to be a minor, to knowingly attempt to persuade, induce, entice and coerce the purported minor to engage in sexual activity with him. Law enforcement arrested Stultz on April 5, 2019, when Stultz attempted to meet the purported minor for the purpose of engaging in sexual activity.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Stultz.
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.justice.gov/psc.
Rapid City Woman Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Possession of an Unregistered Firearm was sentenced on January 4, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Bonnie Jean Estes, age 25, was sentenced to time served through January 19, 2021, equal to approximately eight months in custody, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Estes was indicted by a federal grand jury on February 11, 2020. She pled guilty on November 5, 2020.
The conviction stemmed from an incident that occurred on December 26, 2019, in Jones County, South Dakota. On that date, Estes was a passenger in a vehicle driven by Jose Rodriguez. While driving through Murdo, South Dakota, Rodriguez attracted the attention of a Murdo Police Officer, who attempted to initiate a traffic stop. Rather than stop, Rodriguez led officers on a high-speed chase that ended when Rodriguez’s vehicle became stuck in a field in Lyman County. Rodriguez and Estes fled the vehicle on foot, but were apprehended after a short pursuit. Multiple firearms, including an illegal short-barrel rifle, were located in the vehicle, along with multiple rounds of ammunition.
Rodriguez was also indicted based on his involvement in the incident. On June 30, 2020, he pled guilty to Felon in Possession of a Firearm, and was sentenced on September 21, 2020, to 52 months in federal prison, followed by three years of supervised release.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Murdo Police Department, the Lyman County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Estes was immediately turned over to the custody of the U.S. Marshals Service.
Raleigh Man Sentenced to 72 Months in Federal Prison for Possession of Firearms by a FelonRead the Press Release
WILMINGTON, N.C. – A Raleigh man was sentenced today to 72 months in prison for possessing firearms while being a convicted felon.
According to court documents and information presented in court today, on December 11, 2019, the Raleigh Police Department conducted a search at the residence of Nicholas Travon Edwards, 21. Inside a bedroom safe, RPD officers located a 7.62mm caliber pistol; two 9mm caliber pistols, a model RF-15 5.56 caliber rifle, a .40 caliber pistol, two extended magazines containing 60 rounds of ammunition; 45 rounds of 45mm ammunition; 31 rounds of 9mm ammunition; 37 rounds of .40 ammunition; 30 rounds of 7.62 x 39mm; a .40 caliber extended magazine; a Glock extended magazine with a 31-round capacity; 9 oxycodone pills; 10 plastic bags containing .28 gram of marijuana; 80 grams of marijuana; a rifle mount with a light and laser; a scope; and (10) 9mm rounds. Further investigation revealed one of the firearms was stolen.
Edwards became a convicted felon on November 16, 2017, when he pled guilty to Breaking and Entering in Johnston County District Court. On June 20, 2017, Edwards broke into a building in Wendell, North Carolina, and stole equipment belonging to Traynor’s Tree Service.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II.
The Raleigh Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
###
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00262-M.
Oxycodone Trafficker Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSEPH ANTHONY CARBONE, 64, of Queens, New York, formerly of Pennsylvania, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of conspiracy to distribute and to possess with intent to distribute oxycodone
According to court documents and statements made in court, from approximately May 2017 to August 2019, Carbone conspired with others to acquire and sell approximately 8,100 oxycodone pills in Connecticut, New York, Massachusetts and Rhode Island. Carbone and others acting at his discretion sold the pills at various locations in Connecticut, including at the Foxwoods Resort Casino.
Carbone was arrested on August 5, 2019.
Judge Dooley scheduled sentencing for March 30, 2021, at which time Carbone faces a maximum term of imprisonment of 20 years.
Carbone is released on a $200,000 bond pending sentencing.
This investigation is being conducted by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, and the Mashantucket Pequot Tribal Police Department, with the assistance of the Town of Groton and Stamford Police Departments, the New London State’s Attorney’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed and Supervisory Assistant State’s Attorney Paul Narducci, who has been cross designated as a Special Assistant U.S. Attorney in this matter.
Mission Woman Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Assault by Striking, Beating, or Wounding was sentenced on January 4, 2021, by U.S. Magistrate Judge Mark A. Moreno.
Thomasine Noela Charging Bear, age 35, was sentenced to time served through July 21, 2021, equal to approximately 12 months in custody, one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Charging Bear was indicted by a federal grand jury on August 11, 2020. She pled guilty on October 15, 2020.
The conviction stemmed from an incident that occurred on June 19, 2020, in Mission. On that date, Charging Bear stabbed her domestic partner in the neck with a razor blade.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Charging Bear was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced on Meth Trafficking and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person was sentenced on January 4, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Colt Shaw, age 31, was sentenced to 60 months in federal prison on each count to run concurrent, four years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $200. Forfeiture of firearms was also ordered.
Shaw was indicted by a federal grand jury on March 10, 2020. He pled guilty on October 19, 2020.
The conviction stemmed from a conspiracy that began in at least January 2019, wherein Shaw was involved with others to distribute over 300 grams of methamphetamine in and around the Rosebud Sioux Indian Reservation in South Dakota. Further, on November 8, 2019, at Mission, Shaw was in possession of two firearms, while being a regular user of methamphetamine.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Shaw was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Illegally Possessing Firearm and AmmunitionRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Felon in Possession of a Firearm and Ammunition was sentenced on January 4, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
David D. Larvie, Jr., age 38, was sentenced to 60 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Larvie was indicted by a federal grand jury on November 13, 2019. He was convicted on September 30, 2020, following a two-day jury trial in Pierre, South Dakota.
The charge stems from an incident that occurred on October 25, 2019. On that evening, law enforcement responded to a report that a shot had been fired from a vehicle driven by Larvie in the South Antelope Community, near Mission. Law enforcement subsequently located the suspect vehicle and arrested Larvie. Larvie had a plastic bag containing .22 caliber ammunition in his pants pocket and a search of the vehicle revealed a .22 caliber revolver.
Larvie has three prior felony convictions. He was convicted of Third Degree Burglary and Failure to Appear in U.S. District Court in 2003. He was convicted of Use of a Firearm During and in Relation to a Crime of Violence in U.S. District Court in 2008. As a result of these convictions, it is illegal for Larvie to possess firearms or ammunition. Larvie will forfeit ownership of the firearm and ammunition to the United States.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Larvie was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 4, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Scirgio Iron Shell, age 28, was sentenced to time served through May 3, 2021, equal to ten months in custody, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Iron Shell was indicted by a federal grand jury on August 11, 2020. He pled guilty on October 19, 2020.
Iron Shell was convicted of Attempted Possession of Child Pornography in June 2017. As a result of the conviction, he is required to register as a sex offender for a period of 15 years. Between September 10, 2019, and August 11, 2020, Iron Shell failed to properly update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Iron Shell was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on January 4, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Dayton Thin Elk, a/k/a Dayton Haukaas, age 25, was sentenced to 15 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Thin Elk was indicted by a federal grand jury on July 16, 2020. He pled guilty on October 19, 2020.
The conviction stemmed from an incident that occurred on April 27, 2020, in Todd County, South Dakota. On that date, he was arrested for driving under the influence. After being transported to the Rosebud Sioux Tribe Adult Correctional Facility, Thin Elk was combative and spit on a corrections officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Thin Elk was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm.
Patrick Medearis, age 36, was indicted on July 16, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 29, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 22, 2020, at Mission, Medearis being an unlawful user of and addicted to a controlled substance, and having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a firearm.
The charge is merely an accusation and Medearis is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Medearis was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for March 2, 2021.
Michigan Restaurant and Strip Club Owner Sentenced to Two Years n Prison for Tax CrimesRead the Press Release
A Walled Lake, Michigan, business owner was sentenced today to two years in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court statements and filings, Johni Semma owned Bayside Sports Bar & Grill (Bayside) and The Coliseum, an adult entertainment business. As the owner of Bayside, Semma was responsible for collecting and paying to the IRS Bayside’s employment taxes. From the first quarter of 2008 through the first quarter of 2015, however, Semma timely filed only two employment tax returns with the IRS, despite being obligated to file 29 such returns during this period. He also did not pay approximately $1.3 million in employment taxes that were due.
In 2012, Semma sold The Coliseum for approximately $5.9 million, but did not file an individual income tax return or pay taxes for that year. As a result he caused an additional tax loss of approximately $463,000 to the IRS.
Semma previously pleaded guilty on Aug. 28, 2019, to one count of employment tax fraud and one count of failure to file his individual income tax return.
In addition to the term of imprisonment, U.S. District Court Judge Paul D. Borman ordered Semma to pay $1,793,771 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Kenneth Vert and Brittney Campbell, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mexican National Sentenced for Firearm and Drug ChargesRead the Press Release
United States Attorney Joe Kelly announced that Jose Mena-Valdez, 36, of Mexico, was sentenced today by Senior United States District Judge Joseph F. Bataillon for possession with intent to distribute fifty grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. Mena-Valdez received a sentence of 120 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system. Mena-Valdez will be deported back to Mexico following his term of imprisonment.
Mena-Valdez was convicted on September 30, 2020, following a jury trial. At trial, Omaha Police officers testified that on October 30, 2018, they stopped Mena-Valdez after observing several traffic violations. Mena-Valdez was alone in the vehicle. When making contact with Mena-Valdez, the officers smelled a strong odor of alcohol and observed an open container of alcohol. During a search of the vehicle, half a pound of methamphetamine was located on the passenger side floorboard and a stolen firearm was located between the passenger seat and the center console. The jury watched video and audio recordings of the encounter that were taken from body and cruiser cameras.
In addition to the testimony of the officers, a Nebraska Public Service Laboratory technologist, based out of the University of Nebraska Medical Center, testified to the identification, purity, and weight of the methamphetamine.
This case was investigated by the Omaha Police Department as 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.
Mexican Man Sentenced for Cocaine Distribution Conspiracy and Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Francisco Carrillo-Noriega, 26, was sentenced January 4, 2021, in federal court in Omaha, Nebraska, for conspiracy to distribute cocaine and distribution of methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced Carrillo-Noriega to 60 months in the Bureau of Prisons. There is no parole in the federal system. Carrillo-Noriega was also sentenced to a 4-year term of supervised release. Carrillo-Noriega is a citizen of Mexico and will be deported upon completion of his prison term.
Beginning in January 2018, Carrillo-Noriega distributed cocaine to a confidential informant in Omaha on multiple occasions. Carrillo-Noriega also sold a confidential informant methamphetamine. On August 28, 2019, law enforcement executed a search warrant at Carrillo-Noriega’s Council Bluffs, Iowa, home and recovered an AR-15 rifle, firearm magazines, and ammunition.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
Lawrence Woman Indicted on Charges Stemming from Tax Refund SchemeRead the Press Release
BOSTON – A Lawrence woman was indicted today by a federal grand jury in connection with her role in a scheme to cash checks obtained through filed fraudulent tax returns.
Luz Paulino, 38, was indicted on one count of bank fraud conspiracy, three counts of bank fraud and three counts of aggravated identity theft. Paulino was charged by criminal complaint and arrested on Dec. 12, 2020.
As alleged in charging documents, Paulino owned Agape Financial Services, a Massachusetts company that provided tax preparation and notary services. Between approximately January 2020 and February 2020, Paulino filed tax returns with the IRS in the names and Social Security numbers of individuals who had neither hired nor authorized Paulino or Agape to use their personally identifiable information. The tax returns reported false wage, employer, and dependent information, among other things. To conceal her role in the scheme, Paulino filed the returns using the names and IRS-issued identification numbers of two former employees. Based on refunds claimed in the false tax returns, Paulino obtained Refund Advance Loan checks payable to the victims, which she and others cashed using the victims’ forged endorsements and false identification documents.
The charges of bank fraud conspiracy and bank fraud provide for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. The charge of aggravated identity theft provides for a mandatory sentence of two years to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Lawrence Police Chief Roy P. Vasque made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud 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.