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18 December 2020
NDTX Round-Up: December 11-17Read the Press Release
GUILTY PLEA – EDUARDO HUERTA
On December 15, Eduardo Huerta, 20, plead guilty to possession with intent to distribute a controlled substance. Agents detained Huerta at a home which doubled as a methamphetamine conversion lab. At the residence, agents seized 18 large containers of liquid methamphetamine, 21,332 grams of crystal methamphetamine, and 3,013 grams of heroin. Huerta faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
GUILTY PLEA – EMMANUEL CASTRO CALZADA
On December 15, Emmanuel Castro Calzada, 29, plead guilty to possession with intent to distribute a controlled substance. In January 2019, Calzada was in Dallas was in possession of approximately 6 kilograms of methamphetamine, 32 grams of cocaine, 30 grams of heroin. He possessed these narcotics with the intention to distribute and sell them for a profit. Additionally, Calzada possessed a .40 caliber handgun and $17,415 in drug proceeds. Calzada faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney P.J. Meitl is prosecuting this case.
SENTENCING – MAYELI MOLINA
On December 10, Mayeli Molina, 32, was sentenced to 292 months in federal prison for conspiracy to distribute a controlled substance. According to evidence presented at trial, Molina possessed methamphetamine of at least 500 grams with the intent to distribute it to others in the Northern District. She was found guilty in December 2019. This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Fort Worth Police Department, OCDETF, and HIDTA. Assistant U.S. Attorney Phelesa Guy prosecuted this case.
GUILTY PLEA – VICTOR ALFONSO MAUICIO-DEL RIO
On December 8, Victor Alfonso Mauricio-Del Rio, 33, plead guilty to conspiracy to possess with intent to distribute a controlled substance. Mauricio-Del Rio was intercepted by a court authorized wire and electronic wiretap where he used coded language to discuss the purchase of cocaine. Officers conducted a traffic stop of Mauricio-Del Rio’s co-conspirators and seized three and half kilograms of cocaine. Law enforcement also conducted a traffic stop of Mauricio-Del Rio vehicle and he was found to have cocaine. Mauricio-Del Rio faces up to 40 years in federal prison. This case was investigated by the Drug Enforcement Administration, Texas DPS, and OCDETF. Assistant U.S. Attorney George Leal is prosecuting this case.
Member of Monument Street Drug Trafficking Organizations in East Baltimore Sentenced to Five Years in Federal Prison and Another Pleads Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Tony Solomon, age 54, of Baltimore, pleaded guilty yesterday to federal charges of conspiracy and possession with intent to distribute controlled substances, related to his participation in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. U.S. District Judge Ellen L. Hollander also sentenced co-defendant, Cheyenne Ellison, age 39, also of Baltimore, yesterday to five years in federal prison, followed by three years of supervised release, for his role in the conspiracy.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, investigators identified Solomon as a source of supply in the conspiracy and law enforcement identified Ellison as a middleman, who coordinated controlled substances for members of the conspiracy. Law enforcement overheard the defendants discussing the distribution of drugs, including cocaine and crack cocaine, heroin, and fentanyl, among others.
Solomon admitted that he maintained at least two stash locations used for storing, cutting, and packaging controlled dangerous substances with other members of the conspiracy, located in the 1600 block of North Spring Street and the 3200 block of Bright Street, both in Baltimore. Solomon conspired with coconspirators to use the North Spring Street location to meet with drug customers for the purposes of collecting money and providing controlled substances to them.
In January 2019, law enforcement executed search warrants at both stash locations, and at a residence associated with Solomon, recovering a total of approximately 200 grams of crack, 5 grams of cocaine and 147 grams of a heroin/fentanyl mixture; drug paraphernalia, including a small hydraulic press, small and large kilo presses, digital scales, gel caps, and packaging materials; more than $41,000 in cash, believed to be drug proceeds; and a loaded .45-caliber semi-automatic pistol with eight .45-caliber cartridges, which Solomon admitted he possessed in connection to his drug trafficking activities. Solomon is prohibited from possessing a firearm or ammunition as a result of a previous felony conviction. Additionally, law enforcement seized 1,400 grams cocaine/crack cocaine during the execution of a warrant at Egan Davis’s residence. Based on intercepted communications, investigators believe that a portion of the cocaine/crack cocaine seized during the execution of the warrant was coordinated by Ellison with other co-conspirators. Ellison and Solomon, admitted that they possessed the cocaine with the intent to distribute it for sale. Solomon also admitted possessing the heroin/fentanyl mixture with the intent to distribute it.
Throughout the course of his involvement, it was reasonably foreseeable to Solomon, and within the scope of the conspiracy that he or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Ellison, and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 500 grams but less than two kilograms of cocaine, as well as quantities of crack cocaine, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Solomon and the government have agreed that, if the Court accepts the plea agreement, Solomon will be sentenced to 10 years in federal prison. Judge Hollander has scheduled sentencing for Solomon on February 23, 2021.
Of the 25 defendants indicted in this case, 12—including Ellison, Solomon, and Egan Davis—have pleaded guilty. Last week, co-defendant Amin Boyd, age 42, of Baltimore, Maryland, was sentenced to seven years in prison. The remaining defendants have trial dates in January or May 2021.
This case was investigated as part of the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, an initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. In addition to the Maryland U.S. Attorney’s Office, members of the Strike Force include the Baltimore City State’s Attorney’s Office, DEA, FBI, Homeland Security Investigations, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Postal Inspection Service, the U.S. Marshals Service, the Washington/Baltimore HIDTA, the Maryland State Police, the Maryland Department of Public Safety and Correctional Services, the Maryland Transportation Authority Police, the Maryland National Guard, Baltimore County, Baltimore City, and Anne Arundel County Police Departments, and the Baltimore City Sheriff’s Office.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Mcloud Man Sentenced to 57 Months in Federal Prison for Unlawfully Possessing a Fully Automatic MachinegunRead the Press Release
OKLAHOMA CITY – Christopher Steven Ledbetter, 29, of McLoud, Oklahoma, has been sentenced to serve 57 months in federal prison for unlawful possession of a fully automatic machinegun, announced U.S. Attorney Timothy J. Downing.
According to court records and proceedings, in March 2020, the Federal Bureau of Investigation (FBI) learned that Ledbetter might be in possession of a fully automatic machinegun. FBI then reviewed publicly available materials on the internet associated with Ledbetter that depicted Ledbetter on multiple occasions shooting what appeared to be a fully automatic machinegun and threatening law enforcement. On June 4, 2020, FBI encountered Ledbetter in Oklahoma City. In his vehicle, FBI discovered a fully automatic AK-47 style carbine machinegun. FBI also executed a search warrant at Ledbetter’s residence in McLoud. FBI located two homemade grenades, two homemade Molotov Cocktails, and stolen firearms. Ledbetter was arrested without incident and charged with unlawfully possessing a fully automatic machinegun. Ledbetter was interviewed by FBI and fully confessed to his conduct.
Federal law prohibits the possession of a fully automatic machinegun as defined in the National Firearms Act, except under limited circumstances. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) searched its federal licensing system and determined that Ledbetter did not have the required licenses to possess a machinegun.
On June 26, 2020, Ledbetter pleaded guilty to possessing the automatic machinegun in violation of federal law.
On December 17, 2020, U.S. District Judge Charles B. Goodwin sentenced Ledbetter to 57 months in federal prison, followed by three years of supervised release. In imposing the sentence, Judge Goodwin noted the nature and circumstances of Ledbetter’s conduct leading to his arrest, including reckless endangerment and the attempted evasion of McLoud police.
"The successful prosecution of this case demonstrates that those who put our communities at risk, especially through the unlawful possession of firearms, will be held accountable," said U.S. Attorney Downing. "It also emphasizes the strength of law enforcement collaboration. We are grateful to all those agencies who were invested in bringing Ledbetter to justice."
"The success of this case is a direct result of law enforcement agencies working together in the state of Oklahoma to target threats to the safety and well-being of our citizens," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Division. "The people of Oklahoma deserve this collective effort, and I want to thank our law enforcement partners for helping to keep our communities safe."
This case is a result of an investigation by the FBI Oklahoma City Division, the ATF Dallas Field Division, the Oklahoma Highway Patrol, the Oklahoma City Police Department, the McLoud Police Department and the Lincoln County Sheriff’s Office. Assistant U.S. Attorneys Matt Dillon and Jessica Perry prosecuted the case.
Maryland U.S. Attorney’s Office Seizes Two Domain Names Purporting to be Websites of Biotechnology Companies Developing Treatments for Covid-19Read the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “mordernatx.com” and “regeneronmedicals.com,” which purported to be the websites of actual biotechnology companies developing treatments for the COVID-19 virus, but instead appears to have been used to collect the personal information of individuals visiting the sites, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting those sites now will see a message that the site has been seized by the federal government and be redirected to another site for additional information.
The seizure of the domain names was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of Homeland Security Investigations - Baltimore.
“The U.S. Attorney’s Office and our law enforcement partners are committed to bringing to justice the criminals that try to take advantage of this global pandemic to line their pockets at the expense of the most vulnerable,” said U.S. Attorney Robert K. Hur. “I urge citizens to remain vigilant. Don’t provide personal information or click on websites or links contained in unsolicited e-mails. Don’t become a victim.”
“These individuals took advantage of fear during the global pandemic and attempted to steal personal information for nefarious purposes,” said HSI Baltimore Special Agent in Charge John Eisert. “From the cyber realm to counterfeit medication to financial crime, Homeland Security Investigations is committed to detecting, investigating, and disrupting all types of fraud related to the COVID-19 pandemic.”
According to the affidavits filed in support of these seizures, these investigations began in early December 2020, after corporate security for one of the companies located the spoof website and contacted HSI’s Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”). The other website was identified during an ongoing HSI C3 operation targeting malicious websites. The cases were referred to HSI Baltimore for investigation.
Specifically, on December 10, 2020, the Global Head of Corporate Security for a biotechnology company headquartered in Cambridge, Massachusetts, which has developed a COVID-19 vaccine that is awaiting approval by the U.S. Food and Drug Administration (FDA), contacted HSI IPRC and C3 by e-mail to report that the company’s Cybersecurity Team had detected the domain name mordernatx.com, a fraudulent replication of the company’s website. A review of that website’s online content displayed the name and trademarked logos for the biotechnology company. As detailed in the affidavit, the logos, markings, colors, and text of the mordernatx.com webpage showed no substantive differences from the genuine company website’s landing page, other than the fact that the fraudulent website had a slight misspelling of the company’s name. However, individuals who clicked on the “Contact Us” tab, were redirected to an entry form requesting information such as name, company/institution, title, phone, e-mail, and comments/questions. Additional investigation revealed that the mordernatx.com domain name was registered on about December 8, 2020, through a company headquartered in Kuala Lumpur, Malaysia, with no personal information for the registrar listed.
The second domain name seized, regeneronmedicals.com, was identified on December 9, 2020, during an ongoing HSI C3 investigation targeting malicious websites. Investigators found that the subject domain name contained the name and trademarked logos of, and was visually similar to, the webpage of a biotechnology company headquartered in Westchester County, New York, which was granted an emergency use authorization by the FDA for an antibody cocktail used to treat COVID-19 in high-risk patients with mild to moderate COVID-19. Further investigation revealed that the subject domain name contained two e-mail addresses and a telephone number not found on the official company website. The phone number appeared to be a Voice over IP (VOIP) number. In addition, the “Contact Us” page on the regeneronmedicals.com site directed “Healthcare professionals, patients or caregivers requesting specific product information, reporting an adverse event or reporting a product complaint” to contact the “Medical Department” at the VOIP number. The same “Contact Us” tab also provided a link to submit medical inquiries which directed users to a page that was different from the corresponding page on the authentic website. Investigators also found that the subject domain name was registered on December 6, 2020, and lists the registrant as an individual residing in Onitsha Anambra, Nigeria.
By seizing these sites, the government has prevented third parties from acquiring the names and using them to commit additional crimes, as well as prevented third parties from continuing to access the sites in their present form.
Federal law enforcement agencies are united in our efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud. If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or for more information e-mail justice.gov/coronavirus.
United States Attorney Robert K. Hur commended HSI for its work in these investigations. Mr. Hur thanked Assistant U.S. Attorneys Sean Delaney, Aaron S.J. Zelinsky, and Thomas M. Sullivan, who are handling these cases.
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Madison County Man Sentenced to 21 Years for His Involvement in a Drug Trafficking OrganizationRead the Press Release
Jackson, TN – Xavier Demetrius James, 35, of Jackson, Tennessee, has been sentenced to 252 months in federal prison for conspiracy to distribute and possess with intent to distribute over 50 grams of actual methamphetamine. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, in March 2017, DEA agents began an investigation into Rolando Lopez and his drug trafficking organization. Agents discovered that Lopez and other co-conspirators were trafficking in methamphetamine, heroin, marijuana, and other illegal substances from Texas to Tennessee. Investigators utilized six Title III wiretaps along with surveillance, confidential sources, traffic stops, and search warrants to investigate this drug trafficking organization, which was responsible for trafficking hundreds of pounds of actual methamphetamine.
James was found to have taken part in this conspiracy. He helped transport four loads of actual methamphetamine totaling around 45 kilograms to co-defendant Ronald Parham's residence in mid-2017, and he was found in possession of 20 kilograms of actual methamphetamine during a traffic stop in the Atlanta, Georgia area on November 27, 2017. It was later determined that James was there to buy methamphetamine while on his way to Knoxville, Tennessee, to distribute the drugs to others when he was stopped by the police. In all, James was held responsible for distributing or possessing with the intent to distribute 75 kilograms of actual methamphetamine.
On December 15, 2020, Chief U.S. District Judge S. Thomas Anderson sentenced James to 252 months in federal prison to be followed by five years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Use and trafficking of methamphetamine continues to destroy lives, families, and communities across West Tennessee. The joint cooperation between federal, state, and local law enforcement in this case demonstrates our ability and resolve to dismantle drug trafficking organizations, including those that distribute narcotics from locations outside the country. The significant sentence in this case sends a clear message to those drug dealers who distribute poison in West Tennessee: You cannot prey upon our citizens for your selfish personal gain with impunity; there will be a reckoning."
This is the latest sentencing in a case involving multiple defendants including Rolando Lopez, Saul Vega Flores, Virginia Torres, Ronald Lynn Parham, Tammy Ranger, Marcus Jones, and Xavier Demetrius James on charges of conspiracy to distribute methamphetamine.
On July 9, 2019, Chief U.S. District Court Judge S. Thomas Anderson sentenced Lopez to life in federal prison to be followed by five years supervised release.
https://www.justice.gov/usao-wdtn/pr/rio-grande-texas-man-sentenced-life-imprisonment-conspiracy-distribute-methamphetamine.
Co-defendant Ronald Parham was sentenced to 120 months in federal prison followed by three years supervised release.
https://www.justice.gov/usao-wdtn/pr/kenton-tennessee-man-sentenced-200-months-conspiracy-distribute-methamphetamine
The Drug Enforcement Administration (DEA) investigated this case.
Assistant U.S. Attorneys Josh Morrow and Jerry Kitchen prosecuted this case on behalf of the government.
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Lancaster Man Pleads Guilty to Bank RobberiesRead the Press Release
BOSTON – A Lancaster man pleaded guilty today in federal court in Worcester to three bank robberies.
Matthew Alden, 26, pleaded guilty to three counts of bank robbery before U.S. District Court Judge Timothy Hillman who scheduled sentencing for April 8, 2021.
On Dec. 12, 2019, Alden entered the Cornerstone Bank on South Main Street in Leicester and made statements to the bank tellers such as “give me all the money,” “no dye packs,” and “I’m not going to hurt anyone.” Alden wore a black leather jacket, black sweatshirt, tan pants, a black hat, a black and white bandana over his face, glasses and black gloves. Alden stole $9,906, placed the cash into a black drawstring bag and fled the scene.
On Dec. 27, 2019, Alden entered the Avidia Savings Bank on Maple Street in Marlborough and made statements to the tellers such as “give me all your money so no one gets hurt. No dye packs, no GPS, no banded cash.” Alden wore black shoes, black pants, black sweatshirt, black leather jacket, black gloves and a black and white bandana over his face. Alden stole $3,390, which he placed into a black drawstring bag before fleeing the scene.
On Feb. 21, 2020, Alden entered the Avidia Bank on Maple Avenue in Shrewsbury. He wore a dark winter jacket with fur on the hood, black gloves, a black ski mask over his face, blue jeans and black boots. Alden stated to the tellers “give me all the money,” and stole $1,028.
On Feb. 26, 2020, federal agents arrested Alden who was in possession of a notepad with a list of 12 banks in Massachusetts and New Hampshire and their closing times on Thursdays and Fridays.
A search warrant executed at Alden’s house recovered, among other items, a black leather jacket identical to that worn during the Leicester/Marlborough robberies, a black/white bandana, and a dark winter jacket with a fur hood attachment and black boots, identical to those worn during the Shrewsbury robbery.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Millbury, Lancaster, and Nashua (N.H.) Police Departmens. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
Kimberly Man Sentenced for Threatening to Kill a ProsecutorRead the Press Release
BOISE – Nathanael Michael West, 23, of Kimberly, Idaho, was sentenced in U.S. District Court to 36 months in federal prison for mailing threatening communications, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered West serve three years of supervised release following his prison sentence. West pleaded guilty to the charge on July 13, 2020.
According to court records, West admitted that on August 22, 2019, he knowingly sent a threatening letter through the United States Postal Service to a Twin Falls County Deputy Prosecutor. This prosecutor had successfully prosecuted West for crimes he previously committed. In profane and graphic terms, West wrote that he was going to get out of prison and the kill the prosecutor and her family. West also threatened to kill a witness from a prior prosecution.
According to court records, after the prosecutor received the letter, law enforcement officers interviewed West. During the interview, West admitted to sending the letter. West sent the letter from an Idaho Department of Correction facility where he is currently housed for other crimes. The 36-month sentence imposed for mailing threatening communications will begin after West has served his existing state sentence.
This case was investigated by the Ada County Sheriff's Office.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Kidnapping Sends Man to Federal PrisonRead the Press Release
A man who attempted to kidnap a child was sentenced to more than14 years in federal prison.
Michael Marshall-Limoges, age 24, from Sioux City, Iowa, received the prison term after a guilty plea to one count of kidnapping.
Evidence at the detention, suppression, change of plea, and sentencing hearings established on March 22, 2019, E.N. (age 14) and her brother E.L. (age 9) walked to the Kum & Go, on Morningside Avenue in Sioux City, Iowa. At some point, before they arrived at the gas station, defendant saw them. Once the children entered the store, defendant repositioned his car, entered the store, and continued to observe the children. When the children left the store, defendant followed them, twice made supposedly innocent contact with them, and then attacked them.
As part of his attack, defendant blocked the children’s path with his car. He then threatened E.N. saying “If you don’t get in my car, I’m going to hurt your brother/or I am going to run your brother over.” Next, defendant grabbed a fistful of E.N.’s hair, overcame her physical resistance, ignored her screams, pushed her into his car, and trapped her inside of the car by closing the passenger side door. E.N. noticed the open driver’s side door and escaped through it. During her escape defendant again tried to grab her but she struggled to safety.
Meanwhile, E.L., who had managed to escape yelling, “they took my sister,” found help in the person of J.N. J.N., hearing the screams, ran down the alley toward the boy and the still ongoing kidnapping. J.N. saw defendant enter his vehicle, rapidly accelerate, and drive at a high rate of speed directly at the boy. Fearing defendant was going to run the boy down, he shoved the boy out of the way; J.N. then stood in the alley himself trying to stop the oncoming vehicle. Defendant did not stop. Defendant drove his car directly at J.N. J.N. jumped out of the way to avoid being hit by the car. J.N. called 911 and shepherded the children to safety.
Ultimately, defendant told law enforcement that had E.N. not escaped him “things would have been a lot worse for me” because “who knows what I would have done next.”
Marshall-Limoges was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Marshall-Limoges was sentenced to 168 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.
Marshall-Limoges is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department, the Woodbury County Attorney’s Office, and prosecuted by the Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4028.
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Kearney Man Sentenced to 35 Years Imprisonment for Conspiring to Distribute Methamphetamine and Possessing a FirearmRead the Press Release
United States Attorney Joe Kelly announced that on December 18, 2020, Marcus Navejar, age 39 of Kearney Nebraska, was sentenced in federal court in Lincoln, Nebraska, after having pled guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Connection with a Drug Trafficking Crime. Senior United States District Court Judge Richard G. Kopf sentenced Marcus Navejar to 35 years imprisonment. Navejar’s sentence included a consecutive 25 year term of imprisonment as the firearm conviction was his second for possession a firearm while distributing drugs. After completing his term of imprisonment, Navejar will be required to serve a 5 year term of supervised release as there is no parole in the federal system.
On June 5, 2019, the Omaha Police Department was conducting an investigation where a cooperating witness was collecting money owed from drug debts at an Omaha hotel. Navejar delivered $8,280 he owed for a drug debt to the cooperator on that date.
On June 7, 2019, the cooperating witness informed police that Navejar was staying at an Omaha hotel and in possession of methamphetamine and a gun. While police were obtaining a search warrant for his room, surveillance officers encountered Navejar outside and took him into custody. A search of his person revealed approximately 16 grams of methamphetamine and a handgun. During a post arrest interview, Navejar admitted to dealing five pounds of methamphetamine with others during the previous few weeks.
This case was investigated by the Omaha Police Department.
Judge sentences Illinois man who fired shots at St. Louis police officersRead the Press Release
ST. LOUIS, MO – United States District Judge John A. Ross sentenced Conrad Sparkman to 120 months in prison today, the statutory maximum for the offense of felon in possession of a firearm. The 36-year-old Cahokia, Illinois resident pleaded guilty to one count of being a felon in possession of a firearm on September 24, 2020.
On June 11, 2019, officers from the St. Louis Metropolitan Police Department tried to stop a vehicle operated by Sparkman for having a tinted windshield and an expired Missouri temporary license plate.
Sparkman fled from the officers at a high rate of speed. Sparkman drove the vehicle the wrong way down a one-way street, into on-coming traffic and violated an electric signal. The officers discontinued their pursuit of Sparkman. The aviation unit monitored Sparkman’s path until he parked the vehicle in the 4100 block of Shreve. Officers saw Sparkman and a woman exit the vehicle and walk away. Officers tried to detain Sparkman, who ran away. During a foot pursuit, Sparkman removed a firearm from his waistband and fired at an officer.
Officers returned fire at Sparkman. Sparkman was shot in the left arm and right hand, which caused him to drop the firearm. Sparkman continued to run before falling near the sidewalk in the 4800 block of Bessie.
Police recovered numerous items along Sparkman’s path, including a 9mm pistol loaded with one live round in the chamber and a magazine containing eight additional live rounds. Prior to June 11, 2019, Sparkman had been previously convicted of the felonies of Robbery 2nd degree and Felon in Possession of a Firearm.
“The Police Department is truly grateful for the partnership it has with the US Attorney’s Office in prosecuting violent felons to the fullest extent of the law,” said St. Louis Metropolitan Police Chief John Hayden. “This guilty plea is particularly meaningful and timely when you consider the unprecedented gun violence directed at our Officers, just this year alone.”
“Sparkman received the maximum sentence available, appropriately. We will not tolerate shooting at our brave police officers,” said Jeff Jensen, U.S. Attorney for the Eastern District of Missouri.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorneys John Bird and Jason Dunkel are handling the case.
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Judge Sentences South Georgia Man to Prison for Attacking Postal EmployeeRead the Press Release
ALBANY, Ga. – A Donalsonville, Georgia, man has been sentenced to serve 42 months in a federal prison for attacking a female postal worker as she was delivering mail, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Traveyon D. Wilcox, 35, of Donalsonville, was sentenced on Thursday, December 17, by U.S. District Judge Leslie Gardner to 42 months in prison to be followed by three years of supervised release for one count of assault on a federal employee. There is no parole in the federal system.
According to facts admitted in court, an employee of the United States Postal Service was delivering mail along her Donalsonville route on March 2, 2019, when Wilcox confronted her inside her mail truck. With a bat in one hand, he put his arm around her neck, saying, “It’s natural, let it happen.” The female postal worker, in fear for her life and believing that Wilcox was intending to rape her, accelerated her vehicle and tried repeatedly to strike Wilcox to remove him from the vehicle. As a result of the struggle, the vehicle left the road and crashed into the front porch of a residence. There was no one on the porch of the residence. Wilcox ran away, and the postal worker called 911. Wilcox was quickly apprehended by responding officers with the Donalsonville Police Department. Wilcox later told investigators he had thoughts of doing terrible things to the postal worker, including murdering her.
“Wilcox’s actions were disturbing and despicable. Assaulting a postal worker is a federal crime, and those who attempt to harm employees of the U.S. Postal Service will be prosecuted,” said Acting U.S. Attorney Leary. “I want to thank the Donalsonville Police Department for quickly apprehending this dangerous man and the United States Postal Inspection Service for investigating this crime.”
“The safety of our USPS employees is our most important mission, and Inspectors will continue the great work of bringing those who attack the USPS to justice,” Antonio J. Gomez, Inspector In Charge, Miami Division.
The investigation was conducted by United States Postal Inspection Service and the Donalsonville Police Department. The case was prosecuted by Assistant U.S. Attorney Jim Crane. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Jacksonville Man Indicted for Possessing Firearms Following Multiple Felony ConvictionsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Vershaun Lamar Puzie (32, Jacksonville) with two counts of possessing a firearm as a convicted felon. If convicted, Puzie faces a mandatory minimum penalty of 15 years, and up to life, in federal prison on each count. The indictment also notifies Puzie that the United States intends to forfeit two Smith & Wesson pistols, which are alleged to have been used in the offenses.
According to the indictment, Puzie possessed a Smith & Wesson .40 caliber pistol on January 1, 2019, after being convicted of eight felonies. The indictment also alleges that Puzie possessed a Smith & Wesson 9mm caliber pistol on July 16, 2020, after being convicted of ten felonies. Because Puzie had been convicted of selling drugs on three separate occasions prior to allegedly possessing each of the firearms, he faces enhanced mandatory minimum sentences.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Cyrus Zomorodian.
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 and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
International Trio Indicted in Austin for Illegal Exports to RussiaRead the Press Release
A four–count federal grand jury indictment returned in Austin and unsealed today charges three foreign nationals – a Russian citizen and two Bulgarian citizens – with violating the International Emergency Economic Powers Act (IEEPA), Export Control Reform Act (ECRA), and a money laundering statute in a scheme to procure sensitive radiation-hardened circuits from the U.S. and ship those components to Russia through Bulgaria without required licenses.
“Time and again, we find the Russians attempting to get access to sensitive American technology. The defendants here are charged with exporting radiation-hardened chips to Russia, knowing that it was illegal to do so and establishing a business in Bulgaria to circumvent U.S. enforcement authorities,” said Assistant Attorney General for National Security John C. Demers. “I am gratified by our whole-of-government response to this flagrant example of U.S. export controls evasion.”
“Today’s indictment demonstrates that the United States Attorney’s Office, the Department of Justice and our federal partners will follow those who seek to evade U.S. export enforcement laws wherever our investigations lead. National security remains our highest priority. We must never allow our most sensitive technology to fall into the hands of those who would seek to use it against us,” said U.S. Attorney Sofer.
“The Office of Export Enforcement in partnership with the FBI and DCIS uncovered an illicit procurement network that was diverting radiation-hardened integrated circuits from the United States through a Bulgarian front company to entities in Russia,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce. “Today’s announcement and related action by the Commerce Department to place the parties on the Entity List represent a collaborative whole-of-government approach to protecting sensitive, controlled U.S. technology, which is critical to our national security.”
“Today’s indictment details the efforts our adversaries will make to obtain our sensitive technology and demonstrates that the United States will hold any individuals, organizations, and nations, who willfully violate our export laws accountable.” said Special Agent in Charge Christopher Combs. “The FBI and our partners will work vigorously to protect and defend the national security of our country.”
The indictment alleges that 48-year-old Russian national Ilias Sabirov, 70-year-old Bulgarian national Dimitar Dimitrov and 46-year-old Bulgarian national Milan Dimitrov used Bulgarian company Multi Technology Integration Group EEOD (MTIG) to receive controlled items from the U.S. and send them to Russia. Under U.S. export control law, the goods could not be shipped to Russia without the permission of the U.S. government.
According to the indictment, Sabirov is the head of two Russian companies--Cosmos Complect and OOO Sovtest Comp.--and controls MTIG. Both Dimitar Dimitrov and Milan Dimitrov worked for Sabirov at Cosmos Complect and MTIG.
In 2014, the defendants met with the supplier of the radiation-hardened components in Austin and were informed that radiation-hardened circuits could not be shipped to Russia because of U.S. trade restrictions. Stymied by U.S. law, Sabirov established MTIG in Bulgaria and bought the controlled electronic circuits. The radiation-hardened properties of these circuits made them resistant to damage or malfunction in the harsh outer-space environment. Export of the parts was controlled by the U.S. government for these very reasons. The parts were shipped to Bulgaria in 2015 and MTIG soon thereafter shipped them to Sabirov’s companies in Russia. OOO Sovtest Comp. transferred over $1 million to MTIG for controlled U.S. parts.
In the same timeframe, MTIG—at Sabirov’s direction—ordered over $1.7 million in other electronic components produced by another U.S. electronics manufacturer. Sabirov bought these parts to fulfill part of his contract with OOO Sovtest Comp. Again, the parts were shipped from the U.S. to Bulgaria where they were merely repackaged and onward shipped to Russia.
In late 2018, a Department of Commerce Export Control Officer interviewed Milan Dimitrov during a visit at MTIG to determine whether the radiation-hardened components were still in MTIG’s possession in Bulgaria. Milan Dimitrov, among other things, fraudulently denied sending the components to Russia.
The indictment charges Sabirov, Dimitar Dimitrov and Milan Dimitrov with two counts related to violations of IEEPA and one count of money laundering. The indictment also charges Milan Dimitrov with one count of false statements to the government. Each count charged in the indictment calls for up to 20 years in federal prison upon conviction.
In conjunction with the unsealing of these charges, the Department of Commerce is designating Ilias Sabirov, Dimitar Dimitrov, Milan Dimitrov, Mariana Marinova Gargova, MTIG EOOD, Cosmos Complect and OOO Sovtest Comp., adding them to its Bureau of Industry and Security Entity List. Designation on the Entity List imposes a license requirement before any commodities can be exported from the U.S. to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. Commerce – Office of Export Enforcement can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
Commerce – Office of Export Enforcement and the FBI are investigating this case with assistance from Defense Criminal Investigative Service (DCIS). The Justice Department’s Office of International Affairs provided investigative assistance. The government’s case is being prosecuted by Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan of the Western District of Texas, as well as Trial Attorney Thea R. Kendler of the Justice Department’s National Security Division.In all cases, defendants are presumed innocent until and unless proven guilty. The indictment merely contains allegations of criminal activity.
International Trio Indicted in Austin for Illegal Exports to RussiaRead the Press Release
A four–count federal grand jury indictment returned in Austin and unsealed today charges three foreign nationals – a Russian citizen and two Bulgarian citizens – with violating the International Emergency Economic Powers Act (IEEPA), Export Control Reform Act (ECRA), and a money laundering statute in a scheme to procure sensitive radiation-hardened circuits from the U.S. and ship those components to Russia through Bulgaria without required licenses.
That announcement was made today by U.S. Attorney Gregg N. Sofer; Assistant Attorney General for National Security John C. Demers; P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce; FBI San Antonio Division Special Agent in Charge Christopher Combs; and Defense Criminal Investigative Service (DCIS) Southwest Field Office Special Agent in Charge Michael Mentavlos.
The indictment alleges that 48-year-old Russian national Ilias Sabirov, 70-year-old Bulgarian national Dimitar Dimitrov and 46-year-old Bulgarian national Milan Dimitrov used Bulgarian company Multi Technology Integration Group EEOD (MTIG) to receive controlled items from the U.S. and send them to Russia. Under U.S. export control law, the goods could not be shipped to Russia without the permission of the U.S. government.
According to the indictment, Sabirov is the head of two Russian companies--Cosmos Complect and OOO Sovtest Comp.--and controls MTIG. Both Dimitar Dimitrov and Milan Dimitrov worked for Sabirov at Cosmos Complect and MTIG.
In 2014, the defendants met with the supplier of the radiation-hardened components in Austin, and were informed that radiation-hardened circuits could not be shipped to Russia because of U.S. trade restrictions. Stymied by U.S. law, Sabirov established MTIG in Bulgaria and bought the controlled electronic circuits. The radiation-hardened properties of these circuits made them resistant to damage or malfunction in the harsh outer-space environment. Export of the parts was controlled by the U.S. government for these very reasons. The parts were shipped to Bulgaria in 2015, and MTIG soon thereafter shipped them to Sabirov’s companies in Russia. OOO Sovtest Comp. transferred over $1 million to MTIG for the controlled U.S. parts.
In the same timeframe, MTIG—at Sabirov’s direction—ordered over $1.7 million in other electronic components produced by another U.S. electronics manufacturer. MTIG bought these parts to fulfill part of its contract with OOO Sovtest Comp. Again, the parts were shipped from the U.S. to Bulgaria, where they were merely repackaged and onward shipped to Russia.
In late 2018, a Department of Commerce Export Control Officer interviewed Milan Dimitrov during a visit at MTIG to determine whether the radiation-hardened components were still in MTIG’s possession in Bulgaria. Milan Dimitrov, among other things, fraudulently denied sending the components to Russia.
“Today’s indictment demonstrates that the United States Attorney’s Office, the Department of Justice and our federal partners will follow those who seek to evade U.S. export enforcement laws wherever our investigations lead. National security remains our highest priority. We must never allow our most sensitive technology to fall into the hands of those who would seek to use it against us,” said U.S. Attorney Gregg N. Sofer.
“Time and again, we find the Russians attempting to get access to sensitive American technology. The defendants here are charged with exporting radiation-hardened chips to Russia, knowing that it was illegal to do so and establishing a business in Bulgaria to circumvent U.S. enforcement authorities,” said Assistant Attorney General for National Security John C. Demers. “I am gratified by our whole-of-government response to this flagrant example of U.S. export controls evasion.”
“The Office of Export Enforcement in partnership with the FBI and DCIS uncovered an illicit procurement network that was diverting radiation-hardened integrated circuits from the United States through a Bulgarian front company to entities in Russia,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce. “Today’s announcement and related action by the Commerce Department to place the parties on the Entity List represent a collaborative whole-of-government approach to protecting sensitive, controlled U.S. technology, which is critical to our national security.”
“Today’s indictment details the efforts our adversaries will take to obtain our sensitive technology and demonstrates that the U.S. will hold any individuals, organizations, and nations, who willfully violate our export laws accountable,” said FBI Special Agent in Charge Christopher Combs. “The FBI and our partners will work vigorously to protect and defend the national security of our country.”
“This investigation underscores the Defense Criminal Investigative Service's commitment to safeguarding our nation's most sensitive technologies and preventing those technologies from getting into the hands of our adversaries,” said DCIS Southwest Field Office Special Agent in Charge Michael Mentavlos. “DCIS, in consort with our law enforcement partners, will continue to aggressively identify, disrupt, and bring to justice those who attempt to circumvent export control laws and threaten the integrity of U.S. military technology.”
The indictment charges Sabirov, Dimitar Dimitrov and Milan Dimitrov with two counts related to violations of IEEPA and one count of money laundering. The indictment also charges Milan Dimitrov with one count of false statements to the government. Each count charged in the indictment calls for up to 20 years in federal prison upon conviction.
In conjunction with the unsealing of these charges, the Department of Commerce is designating Ilias Sabirov, Dimitar Dimitrov, Milan Dimitrov, Mariana Marinova Gargova, MTIG EOOD, Cosmos Complect and OOO Sovtest Comp., adding them to its Bureau of Industry and Security Entity List. Designation on the Entity List imposes a license requirement before any commodities can be exported from the U.S. to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. Commerce – Office of Export Enforcement can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
Commerce – Office of Export Enforcement and the FBI are investigating this case with assistance from DCIS. The government’s case is being prosecuted by Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan of the Western District of Texas, as well as Trial Attorney Thea D. R. Kendler of the Justice Department’s National Security Division. The Justice Department’s Office of International Affairs provided investigatory assistance.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictment merely contains allegations of criminal activity.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Inmates admit to attacking another inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darion Gipson and Calvin Rader, both inmates at U.S. Penitentiary Hazelton, have admitted to attacking another inmate, U.S. Attorney Bill Powell announced.
Gipson, age 26, and Rader, 29, each pled guilty to one count of “Assault Resulting in Serious Bodily Injury.” Gipson and Rader admitted to assaulting another inmate, causing serious injury, in November 2019 in Preston County.
Gipson and Rader were each sentenced to 24 months of incarceration to be served consecutively to any sentence they are currently serving.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 14 was:
Shawn Kenneth Kolb, 40, of Columbia Falls, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Kolb faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Kolb was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-51.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 15 was:
Michael Jacob Berberick, 37, of Billings, on charges of prohibited person in possession of a firearm and possession of stolen firearm. If convicted of the most serious crime, Berberick faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Berberick was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-119.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 15 was:
Kelcey James Morsette, 40, of Box Elder, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Morsette faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Morsette was detained pending further proceedings. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 20-34.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indian Wells Man Sentenced to 20 Years for KidnappingRead the Press Release
PHOENIX, Ariz. – Yesterday, Elbert Philip Shabi, 69, of Indian Wells, Arizona, was sentenced by U.S. District Judge Michael T. Liburdi to twenty years in prison followed by five years of supervised release. Shabi previously pleaded guilty to kidnapping.
Shabi admitted that in 2016 or 2017, he seized the victim as she fled from him on foot. Shabi threatened the victim and held her overnight against her will. The kidnapping happened on the Navajo Nation Indian Reservation, where Shabi is a tribal member.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Dimitra Sampson, Amy Chang, and Jillian Besancon, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08030-PCT-MTL
RELEASE NUMBER: 2020-114_Shabi# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Hudson Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
CONCORD - Robert Corleto, 43, of Hudson, pleaded guilty in federal court to sexual exploitation of a minor, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Corleto used a social media account on KIK Messenger to entice and coerce a minor to take images of herself engaging in sexually explicit conduct. Corleto sent at least one of those images to an undercover officer over KIK Messenger on March 18, 2019. During the course of the investigation, officers obtained a warrant to search Corleto’s cell phone. A forensic extraction of the device revealed that Corleto had between 10 and 150 images depicting the victim, as well as other minor children.
Corleto is scheduled to be sentenced on March 20, 2021.
“The internet can be a dangerous place for children, affording anonymity to criminals who would seek to exploit their innocence,” said U.S. Attorney Murray. “Those who manipulate children into creating pornographic images are committing a serious federal crime and will be prosecuted. Internet predators should be aware that law enforcement agencies are working around the clock to bring them to justice. It is imperative that we keep our children safe by targeting those who seek to exploit them online.”
“Robert Corleto manipulated a 12-year-old girl into providing him with sexually explicit images and videos by using fear that their so-called mutual online friend would harm herself if the victim refused. The crime for which he has admitted guilt today is incredibly disturbing,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case is a prime example of how a child can be victimized in the safety of their own home. Parents, please talk to your children about the dangers of the internet, make it clear to them they are not to blame if they fall victim to a predator, and contact law enforcement immediately if you suspect something is wrong.”
This matter was investigated by the Federal Bureau of Investigation and the Hudson Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Harrison County Drug Dealer Sentenced to 14 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
MARSHALL, Texas – A 32-year-old Marshall, Texas man was sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Ronald Charles Parker, a.k.a. “Big Ron,” pleaded guilty on Sep. 14, 2019, to possession with intent to distribute methamphetamine and was sentenced to 168 months in federal prison on Dec. 16, 2020 by U.S. District Judge Rodney Gilstrap.
According to information presented in court, Parker was a member of a drug trafficking organization responsible for selling large quantities of methamphetamine in Marshall, Texas. During the course of the investigation Parker conducted seven separate drug transactions with a confidential informant, selling a total of 1.24 kilograms of methamphetamine. Parker and eight others were indicted by a federal grand jury on Feb. 19, 2020, and charged with violations of federal law. Co-Defendant Danny Brian Hernandez was recently sentenced to 17 years in prison for his drug trafficking conduct.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Grand Jury - December 2020Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 5 unsealed Indictments charging 7 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Josephine Alexis Baker, age 22, of Winnebago, is charged with assault with a dangerous weapon with intent to do bodily harm on November 24, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Bryan Kyriss, age 57, is charged with felon in possession of a firearm on November 11, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kaleb A. Johnson, age 24, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with being a felon in possession of a firearm on or about February 12, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession (or sale) of a stolen firearm on or about February 12, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jaime Vazquez Pimentel, a/k/a Alexander Rodriguez Perez, a/k/a David Gutierrez, a/k/a Eliseo Acocal-Techaltz, age 37, is charged with illegal reentry after deportation on or about November 25, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Xinyu Zhou, age 21, Yuan Gao, age 19, and Arian Esfandiari, age 18, are charged with attempted Hobbs Act robbery on December 14, 2020 and December 15, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment for each defendant
Gang Member Sentenced to over Four Years for Possessing GunRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Jeremiah Butler-Jackson (20, Tampa) to four years and two months in federal prison for possessing a loaded gun as a convicted felon. Butler-Jackson had pleaded guilty on October 8, 2020.
According to court documents and information presented during the sentencing hearing, Butler-Jackson is known to law enforcement as a Progress Village gang member. His criminal history involves multiple crimes of violence, including shooting and robbery. On October 2, 2019, officers observed that Butler-Jackson had posted a video on Instagram in which he posed with a handgun clipped to his waistband. A few minutes later, officers observed Butler-Jackson in public wearing the same clothes as in the video. When they attempted to detain him, he fled on foot, discarding the gun in the yard of a private residence as he ran. Officers caught Butler-Jackson and recovered the gun, which matched the one displayed in the Instagram video.
As a previously convicted felon, Butler-Jackson is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael M. Gordon.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Fresno Man Sentenced to 9 Years in Prison for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. —David Vann, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to nine years and two months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Vann failed to yield to police officers during an attempted traffic stop. He then led officers on a vehicle chase, during which he failed to stop at a stop sign and stop light, and drove southbound in the northbound lane of traffic. After exiting the vehicle, Vann discarded a firearm in bushes in a residential area. Vann is a convicted felon prohibited from possessing a firearm. He was on post-release community supervision at the time of his arrest in this case.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Four indicted for hate crimes and false statements after racially motivated assault in Lynnwood, WashingtonRead the Press Release
Seattle – Four men from across the Pacific Northwest were indicted this week for federal hate crimes and making false statements in connection with a December 8, 2018, racially-motivated assault, announced U.S. Attorney Brian T. Moran and Assistant Attorney General for Civil Rights Eric Dreiband. JASON DESIMAS, 44, of Tacoma, Washington; JASON STANLEY, 43, of Boise, Idaho; RANDY SMITH, 38, of Eugene, Oregon; and DANIEL DELBERT DORSON, 24, of Corvallis, Oregon, are charged with aiding and abetting one another, as they punched and kicked a Black man and making derogatory comments about his actual and perceived race at a bar in Lynnwood, Washington. The indictment also charges the defendants with assaulting two other men. DORSON will appear today in U.S. District Court in Eugene, Oregon.
“The U.S. Attorney’s Office for the Western District of Washington has a long and distinguished history of prosecuting those who act on hate,” said U.S. Attorney Moran. “Whether it is ‘The Order’ in the 1980s, the ‘Atomwaffen’ of today, or this group accused of assaulting a Black man at a local business. These defendants will be held accountable for their criminal conduct.”
In addition to the hate crime charges, the indictment charges each defendant, separately, with giving false statements to the FBI during the investigation. Specifically, the indictment alleges JASON DESIMAS falsely claimed that neither he nor anyone else used a racial slur during the assault; JASON STANLEY falsely asserted that he was not even in Washington on the date of the assault; RANDY SMITH allegedly lied about how he had bloodied his knuckles; and DANIEL DELBERT DORSON falsely claimed that he had not planned to attend a white supremacist’s “Martyr’s Day” observance in Washington and that he had not owned a jacket associated with white supremacy hate groups.
FBI Seattle Acting Special Agent in Charge Earl Camp said, “The FBI is committed to investigating federal hate crimes and protecting civil rights. These violent acts motivated by bias are not only an attack on the victim, but also threaten and intimidate an entire community and are contrary to our values of equality for all Americans to live without fear.”
The hate crime charge carries a maximum penalty of ten years in prison. The false statements charge carries a maximum penalty of five years.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until each is proven guilty.
Two of the defendants, SMITH and STANLEY, are currently in custody in Oregon and Idaho respectively on unrelated charges. They will be brought to the Western District of Washington for arraignment.
This case was investigated by the FBI, with the assistance of the Snohomish County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo and Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division.
desimas_et_al_indictment.pdfFour Oaks Man Convicted of Human Trafficking a Minor and Production of Child PornographyRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that yesterday, Marvarlus Cortel Snead, 34, of Four Oaks, North Carolina, was convicted in federal court following a four-day trial before United States District Judge James C. Dever. The jury found Snead guilty on all three counts: sex trafficking of a minor, production of child pornography, and one count of using facilities in interstate commerce to operate a prostitution enterprise.
In December 2017 and January 2018, Snead prostituted an adult female and a minor victim in various locations throughout the Eastern District of North Carolina. Snead targeted extremely vulnerable victims and enticed them with promises of money and romance. After they joined him, Snead manipulated them and took their money for himself. Snead engaged in a sexual relationship with both women and used the minor to create images and a video of child pornography.
Snead faces a sentence of not less than 15 years and up to life in prison, a fine up to $750,000, and up to life supervised release at sentencing.
Mr. Higdon commented: “This case is about the victims, who suffered at the hands of a greedy trafficker. Our community will not tolerate perpetrators like this defendant targeting our most vunerable children and citizens for their profit.”
Investigation of this case was conducted by the Federal Bureau of Investigation and the New Hanover County Sheriff’s Office. Assistant United States Attorneys Bryan Stephany and Erin Blondel handled the prosecution of this case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00151-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Four Men Indicted for Hate Crimes and False Statements After Racially Motivated Assault in Lynnwood, WashingtonRead the Press Release
The Justice Department announced today that four men from across the Pacific Northwest were indicted this week for federal hate crimes and making false statements in connection with a Dec. 8, 2018, racially-motivated assault.
Jason DeSimas, 44, of Tacoma, Washington; Jason Stanley, 43, of Boise, Idaho; Randy Smith, 38, of Eugene, Oregon; and Daniel Delbert Dorson, 24, of Corvallis, Oregon, are charged with aiding and abetting one another, as they, among other things, punched and kicked a Black man and made derogatory comments about his actual and perceived race at a bar in Lynnwood, Washington. The indictment also charges the defendants with assaulting two other men who intervened to protect the victim from their attack. Dorson will appear in U.S. District Court in Eugene today.
In addition to the hate crime charges, the indictment charges each defendant, separately, with giving false statements to the FBI during the investigation. Specifically, the indictment alleges DeSimas falsely claimed that neither he nor anyone else used a racial slur during the assault; Stanley falsely asserted that he was not even in the state of Washington on the date of the assault; Smith allegedly lied about how he had bloodied his knuckles; and Dorson falsely claimed that he had not planned to attend a white supremacist’s “Martyr’s Day” observance in the state of Washington and that he had not owned a jacket associated with white supremacy hate groups prior to the weekend of Dec. 8, 2018.
The hate crime charge carries a maximum penalty of ten years in prison. The false statements charge carries a maximum penalty of five years.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until each is proven guilty.
This case was investigated by the FBI, with the assistance of the Snohomish County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo and Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division.
Fort Worth Meth Dealer Sentenced to More Than 20 Years for Role in Money Laundering ConspiracyRead the Press Release
A Fort Worth methamphetamine dealer was sentenced today to 262 months in federal prison for participating in a conspiracy to distribute drugs and launder approximately $275,000 of drug proceeds to Mexico, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Yesi Bastida-Carranza, 31, was sentenced today by District Judge Reed C. O’Connor after an extensive investigation led by IRS Criminal Investigation Dallas Field Office. Earlier this year, Bastida-Carranza pleaded guilty to conspiracy to possess a controlled substance with intent to distribute and conspiracy to commit money laundering.
“Our office is committed to disrupting and dismantling criminal organizations that distribute drugs, launder illicit proceeds, and attempt to corrupt our society,” said U.S. Attorney Erin Nealy Cox. “This case underscores the resolve of our law enforcement partners to bring justice against these criminal enterprises.”
“One of the primary missions of the Internal Revenue Service, Criminal Investigation, Dallas Field Office, is to identify, pursue and dismantle transnational drug trafficking and money laundering organizations that prey on North Texans,” stated Acting Special Agent in Charge of the IRS Criminal Investigations Dallas Field Office, Kevin Caramucci. “We extend our gratitude to our federal and state partners for their assistance in taking down Bastida-Carranza and his family, preventing multiple kilograms of methamphetamines from entering our neighborhoods.”
According to a criminal complaint filed in March, Bastida-Carranza was part of a money laundering organizing which made at least 713 wire transactions totaling more than $660,000 of illegal drug proceeds sent to Mexico during 2016 and 2017. Bastida-Carranza executed at least 293 of these wire transactions by sending $273,181.30.
To execute the wire transactions, Bastida-Carranza and his co-conspirators, including his four siblings and others, initially used two “sender” addresses – one which belonged to Bastida-Carranza in Haltom City. As the scheme progressed, the money laundering organization used numerous addresses and phone numbers to avoid detection by law enforcement. Bastida-Carranza and other co-conspirators received a portion of the money involved in these transactions as compensation for organizing these laundering activities.
In October 2017, law enforcement executed a search warrant for social media accounts controlled by Bastida-Carranza. As proof that other co-conspirators made wire transfers, they sent Bastida-Carranza wire transaction receipts via Facebook messenger. Additionally, law enforcement placed a tracking device on Bastida-Carranza’s car which showed it visiting various wire remitter stores at the time wire transactions were sent by him to beneficiaries in Mexico.
Bastida-Carranza regularly used fictious names and false documents to execute wire transactions. He was captured on video conducting three wire transfers at a DolEx kiosk sending funds to a beneficiary in Mexico using an alias.
In March 2020, law enforcement executed a search warrant at Bastida-Carranza’s home where they seized approximately five kilograms of methamphetamine, approximately $50,000 of U.S. currency, and a drug ledger, according to a federal complaint
Investigators were also aware of another location that Bastida-Carranza frequented in Fort Worth. The homeowner at the address said that Bastida-Carranza had access to a shed located on the property. Inside the shed, investigators found approximately 15 kilograms of methamphetamine, digital scales, as well as drug processing equipment.
During an interview with law enforcement, Bastida-Carranza admitted to distributing methamphetamine at the direction of a Mexico based source of supply. He also admitted that he received beneficiary names located in Mexico, to whom he wired the meth sales proceeds and directed his other co-conspirators to do the same. Bastida-Carranza also admitted to wiring the drug proceeds he received to drug traffickers based in Mexico.
The IRS Criminal Investigation Dallas Field Office, Drug Enforcement Administration, Homeland Security Investigations, the Fort Worth Police Department and the Tarrant County Sherriff’s Office conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted this case.
Former registered broker admits to involvement in options trading schemeRead the Press Release
ATLANTA - Bart Ross pleaded guilty to a criminal information charging him with conspiracy to commit wire and securities fraud arising from a years-long scheme to manipulate the prices of short-term call options in large, publicly traded companies.
“Ross and others were able to cheat the market by perfectly timing their trades on false rumors of their own design,” said U.S. Attorney Byung J. “BJay” Pak. “We will fight all forms of securities fraud, whether it involves defrauding investors, insider trading, pump-and-dump schemes, or the type of sophisticated market manipulation at issue here.”
“Manipulating the market to fraudulently profit is not a victimless crime,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Ross will now be sentenced for fraudulently profiting from the elaborate scheme and hopefully the public’s trust in a fair market will be restored.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between approximately February 2017 and January 2020, Ross and at least four other individuals conspired to execute a scheme in which they traded securities—primarily short-term call options—in large, publicly traded companies (often Fortune 500 companies) based on materially false rumors about those companies that they themselves generated and disseminated. These materially false rumors were intended to drive up the price of the securities (both the underlying stock and options).
Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.
Ross, who was formerly registered as a broker with the Financial Industry Regulatory Authority (“FINRA”), and the co-conspirators generated the rumors. They would frequently exchange drafts of a proposed rumor among themselves using the Trillian instant messaging application. After a rumor was formulated and finalized, one of the co-conspirators, identified as Individual-1 in the criminal information, was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn, result in the false rumor being disseminated over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.
Before Individual-1 disseminated the rumor, Ross and the other co-conspirators would acquire a position in the publicly traded company that was the subject of the materially false rumor. The co-conspirators typically purchased short-term call options before (sometimes just minutes or seconds before) Individual-1 disseminated the rumor. The conspirators often (but not always) purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. It was therefore possible for Ross and the others to earn a greater percentage return by trading short-term call options rather than the underlying stock. Ross and the conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would typically sell off their positions shortly after the rumor was disseminated (and after the price of the option or underlying stock had increased).
Ross executed approximately 49 trades based on the generation and dissemination of false rumors, including in March and April 2018, when Ross traded short-term call options in Disney and Ben Franklin Resources, respectively. Overall, Ross earned approximately $35,000 in profits from the scheme.
Bart Ross, 56, of Sandy Springs, Georgia, is scheduled to be sentenced March 26, 2021 at 9:30 a.m., before U.S. District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation. The Securities and Exchange Commission, which provided assistance in this case, also filed a civil enforcement action and consent judgment against Ross today in the U.S. District Court for the Northern District of Georgia.
Assistant U.S. Attorneys Alex R. Sistla and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Wisconsin and New York City Schools Official Sentenced on Child Pornography ChargeRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on December 18, 2020, David A. Hay (age: 40) most recently of Brooklyn, New York, was sentenced to 60 months’ imprisonment for his receipt of child pornography.
According to court filings, in May of 2010, while living and employed in the Eastern District of Wisconsin, David A. Hay exchanged emails with a 15-year-old child. During the course of those communications, the defendant received sexually explicit digital images and videos from the child. Hay also provided sexually explicit images of himself to the 15-year-old.
Hay was principal at Tomah High School from 2011 through 2014. Prior to that, Hay was principal at Kettle Moraine High School from 2008 through 2011 before resigning following the school district’s discovery of irregularities with Hay’s licensing and the misuse of a district credit card. Most recently, Hay served as Deputy Chief of Staff to the New York City Chancellor of Schools.
Senior U.S. District Judge William C. Griesbach called Hay’s actions “abominable for a man in his position” and emphasized the gravity of his conduct which involved inappropriate personal interactions with underage children as opposed to the passive receipt of child pornography. In addition to the 60 months of imprisonment, Hay will spend 10 years on supervised release and will be required to register as a sex offender.
This case was investigated by the City of Neenah Police Department with the assistance of the Milwaukee County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
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Former Illinois Attorney Charged with Federal Tax OffenseRead the Press Release
CHICAGO — A former Illinois attorney withheld more than $137,000 in payroll taxes from his employees’ paychecks but failed to remit the money to the IRS, according to a criminal charge filed in federal court in Chicago.
ADAM TRACY, 43, of Wheaton, is charged with one count of willful failure to pay taxes to the IRS. Arraignment is set for Dec. 21, 2020, at 11:00 a.m., before U.S. District Judge Edmond E. Chang.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Matthew Getter.
According to a criminal information filed Tuesday in U.S. District Court in Chicago, Tracy operated Securities Compliance Group Ltd., a Wheaton-based law and consulting practice that also did business as “Clearing Link LLC,” “Wabash Capital Advisors Ltd.,” “Guanwei Recycling Corporation,” and “The Tracy Firm. Ltd.” From 2014 to 2018, Tracy’s company withheld $137,403.76 in payroll taxes from employees’ paychecks but willfully failed to pay the money to the IRS, the information states. For much of that time, the company also failed to file quarterly employment tax returns (Forms 941) with the IRS, the information states.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The tax charge is punishable by up to five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Federal Employee Pleads Guilty to Receiving Unauthorized Compensation for Work He Was Supposed to Provide to the Public as Part of His JobRead the Press Release
Greenbelt, Maryland – U.S. Magistrate Judge Charles B. Day today sentenced Gerald F. Luchansky, age 82, of Annapolis, Maryland, to four months of home detention as part of one year of probation and ordered him to pay a $5,000 fine, after Luchansky pleaded guilty to receipt of unauthorized compensation by a government employee. Luchansky, a former employee of the National Archives and Records Administration, admitted that he accepted compensation from two different companies for work that he was supposed to provide to members of the public for free.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and and Jason Metrick, Assistant Inspector General for Investigations, National Archives and Records Administration (NARA).
Gerald Luchansky was an Archives Specialist with NARA from 1979, until his retirement in 2017, after receiving a lifetime achievement award for his work.
According to his guilty plea, one of Luchansky’s job responsibilities was to pull archival aerial photographs of Allied bombing runs in World War II, digitize them, and make them available to researchers. Starting in 2008, and without the knowledge or approval of NARA, Luchansky was hired and paid by a German company to do this very same work while he was employed at NARA. Luchansky would scan NARA’s archival aerial photographs and provide them to the German company on thumb drives or CDs. The Germany company paid Luchansky for the photographs, even though Luchansky was being paid by NARA to provide those same photographs to members of the public for free.
As detailed in his plea agreement, between 2004 and 2017, and without the knowledge or approval of NARA, Luchansky was paid $27,510 by a second company—this one in Maryland—to research NARA cartographic holdings and obtain rolls of NARA’s aerial film. Luchansky provided the Maryland company with invoices for his work, even though as a NARA employee he was supposed to provide those services to the public for free. Luchansky admitted that he deposited the payments from the Maryland company into his bank account.
United States Attorney Robert K. Hur commended the NARA Office of Inspector General for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leah B. Grossi and Thomas M. Sullivan, who prosecuted the federal case.
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Former Department of Unemployment Assistance Employee and Husband Arrested on Fraud Charges Arising from Pandemic Unemployment ClaimsRead the Press Release
BOSTON – A married couple was arrested last night in Texas on federal fraud charges arising from their claims for Pandemic Unemployment Assistance (PUA) funds. The defendants previously served jail time.
Tiffany Pacheco, a/k/a Tiffany Tavery, 35, and Arthur Pacheco, 47, who, until recently, resided in New Bedford, Mass., were charged by criminal complaint with one count of conspiracy to commit wire fraud. Tiffany Pacheco was also charged with one count of wire fraud. The defendants were arrested in San Antonio, Texas last night and will make an appearance in the Western District of Texas today.
According to charging documents, Tiffany was hired by the Massachusetts Department of Unemployment Assistance (DUA) in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany allegedly misused her position to submit fraudulent PUA claim information on behalf of herself and her husband, Arthur, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.
Specifically, it is alleged that in June 2020, PUA claims submitted for Tiffany and her husband reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA, Tiffany obtained access to the PUA computer system, and later changed claim information for herself and Arthur so as to increase the amount of PUA funds they would receive. For example, Tiffany allegedly increased the amount of 2019 income for her and Arthur to more than $240,000, and increased the number of their dependents to seven. Tiffany further used her access to the PUA system to verify the increased reported 2019 income on both claims without the required income verification documents.
It is further alleged that the PUA claim for Arthur was fraudulent because was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds. In November 2020, Arthur called DUA and falsely denied that he had been incarcerated during the timeframe leading up to September 2020, and that he was only incarcerated for approximately a month. Tiffany also spoke with DUA and misrepresented the period of time for which Arthur had been incarcerated.
A search warrant executed on Sept. 22, 2020 at a New Bedford apartment where Tiffany and Arthur resided uncovered various tools of identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately $17,000 cash and a notebook that appeared to contain the personal identifying information of various individuals. On Sept. 23, 2020, DUA terminated Tiffany’s employment.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Dustin Chao of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Individuals Charged in Health Care Fraud SchemeRead the Press Release
WASHINGTON – Sharell Tishan Pitts, 43, Renardo Williams, 35, and Raymont Timothy Owens, Jr., 37, all of the District of Columbia, and Rhonda Pauline Williams, 38, of Oxon Hill, MD, were indicted on conspiracy, fraud, and aggravated identity theft charges relating to a $467,000 health care fraud scheme. Vazena L. Chapman, 39, was charged separately by Criminal Information with one count of Conspiracy to Commit Wire Fraud. The announcement was made by Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
Sharell Pitts, Rhonda Williams, and Renardo Williams made their initial appearances at 3:30 p.m. on December 17, 2020 in federal court in the District of Columbia.
According to the indictment, Sharell Pitts and Rhonda Williams, who at the time worked for the D.C. Office of the State Superintendent of Education (“OSSE”), approached multiple co-conspirators at OSSE bus yards in the District of Columbia and offered to submit fraudulent Aflac supplemental health insurance claims on behalf of those co-conspirators in exchange for kickbacks. Renardo Williams, who also worked for OSSE, and Raymont Timothy Owens, Jr., who worked for the D.C. Department of Parks and Recreation, played significant roles in the scheme. Sharell Pitts, Rhonda Williams, Renardo Williams, and Raymont Timothy Owens, Jr. then obtained legitimate medical paperwork, which they falsified and shared with one another for purposes of submitting fraudulent claims for reimbursement with Aflac for themselves and co-conspirators.
As further alleged in the indictment, between May 2015 and October 2016, Sharell Pitts, Rhonda Williams, Renardo Williams, and Raymont Timothy Owens, Jr. submitted over 60 fraudulent claims for reimbursement to Aflac resulting in over $467,000 in payments.
D.C. Metropolitan Police Department (“MPD”) Officer Chapman conspired with Pitts to submit several fraudulent claims for reimbursement to Aflac resulting in $36,805 in payments.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation was conducted by the FBI’s Washington Field Office Criminal Division. The D.C. Department of Insurance, Securities and Banking (“DISB”) provided substantial assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
Federal Superseding Indictment Charges Two Baltimore Defense Attorneys and Private Investigator for Conspiracy to Create False Records in a Federal Investigation and to Obstruct Official ProceedingsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment against attorney Kenneth Wendell Ravenell, age 60, of Monkton, Maryland, on federal charges of racketeering conspiracy, conspiracy to commit money laundering, and narcotics conspiracy. The superseding indictment also adds two new defendants, attorney Joshua Reinhardt Treem, age 73, of Columbia, and Sean Francis Gordon, age 45, of Crownsville, a private investigator who worked for both Ravenell and Treem. The superseding indictment charges Treem and Gordon, along with Ravenell, with a conspiracy to commit offenses against the United States, specifically, to create false records and documents and to obstruct an official proceeding in order to protect members of the conspiracy who were under investigation by federal law enforcement and federal grand juries sitting in Baltimore, including Ravenell himself. Ravenell, Treem, and Gordon are also charged with one count of falsification of documents, and obstructing an official proceeding; Ravenell and Treem are charged with two counts of falsification of records in a federal investigation; and Gordon is charged with one count of falsification of records in a federal investigation. The superseding indictment was returned late on December 17, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“Attorneys are officers of the Court,” said U.S. Attorney Robert K. Hur. “They are not above the law. The U.S. Attorney’s Office will investigate and prosecute attorneys who violate the trust placed in them by breaking the law and obstructing justice.”
Ravenell and Treem practiced law at the same law firm in the 1990s and early 2000s. On January 21, 2016, Treem began representing Ravenell in connection with a federal grand jury investigation into Ravenell. Gordon had been previously hired by Ravenell in connection with Ravenell’s representation of a drug trafficker. Later, Gordon was retained to work with Treem and Ravenell in connection with the investigation of Ravenell. Treem continued to represent Ravenell until June 18, 2019.
The seven-count superseding indictment re-alleges the charges previously filed against Ravenell—specifically, that he violated the legitimate and lawful purpose of the law firm where he worked in order to enrich himself and Individual 1 by receiving payments from a drug trafficker client and his associates in exchange for laundering drug proceeds, obstructing justice to protect the client and his associates, and instructing the client and his associates how to evade law enforcement and continue their drug trafficking; that Ravenell allegedly knowingly protected and assisted co-conspirators in their drug trafficking by coaching co-conspirators about law enforcement techniques so that they could evade these techniques when they trafficked in narcotics; that Ravenell allegedly used the law firm’s bank accounts to launder hundreds of thousands of dollars and protect the drug trafficking organization; and that Ravenell allegedly used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy, concealing and misrepresenting the source of the funds to those attorneys. Ravenell also allegedly received substantial cash payments derived from drug sales as compensation for laundering money and for protection he provided to his co-conspirators. The superseding indictment also re-alleges that Ravenell participated in a conspiracy to distribute 1,000 kilograms or more of marijuana.
The superseding indictment adds four new counts alleging that from May 5, 2013 through December 11, 2018, Ravenell, Treem, and Gordon conspired to conceal, cover up, falsify, and make false entries in a record or document to impede, obstruct, or influence federal investigations into Ravenell and one of his clients and knowingly and corruptly impede official proceedings, specifically a grand jury investigation and federal criminal prosecution of one of Ravenell’s clients and a federal grand jury investigation and potential federal criminal prosecution of Ravenell himself. Specifically, the superseding indictment alleges that Ravenell obtained access to incarcerated individuals, whom he did not represent, and dispatched private investigators, including Gordon, to interview incarcerated individuals and civilian witnesses, so that Ravenell and others at his direction could attempt to improperly influence their testimony, attempt to cause them to execute false affidavits and witness statements which Ravenell knew to be false, and attempt to cause witnesses to withhold testimony from official proceedings.
As alleged in the superseding indictment, Treem and Gordon, at Ravenell’s direction, met with a former client of Ravenell’s, who they knew was a potential witness in a federal criminal investigation of Ravenell by the U.S. Department of Justice and a federal grand jury sitting in Baltimore and a potential criminal prosecution of Ravenell. At the meeting, Treem and Gordon allegedly presented the witness with a document, prepared by Ravenell, containing false statements exculpating Ravenell. Despite the fact that the witness told Treem and Gordon that these statements were false, the superseding indictment alleges that Treem and Gordon urged the witness to sign the document.
The superseding indictment alleges that Ravenell, Treem, and Gordon prepared false documents, including an affidavit on behalf of Gordon that had, as an exhibit, the document containing false exculpatory statements that Treem and Gordon had urged the witness to sign, and a letter to a United States District Judge signed by Treem, relating to their interview of the witness. These documents could be used to undermine the witness’ credibility and to provide evidence of a prior consistent statement by Gordon or Treem if either one of them were to testify. The superseding indictment alleges that the letter was sent to the Judge with the intent to impede, obstruct, or influence a federal investigation and prosecution of Ravenell. Finally, the superseding indictment alleges that the false affidavit prepared by Treem with Ravenell’s assistance, and which Gordon executed, was also an attempt to thwart the investigation and prosecution of Ravenell.
If convicted, Ravenell faces a maximum sentence of 20 years in federal prison for the racketeering conspiracy; a maximum of 20 years in prison for the money laundering conspiracy; and a maximum of life in prison for the narcotics conspiracy. If convicted, Ravenell, Treem, and Gordon face a maximum of five years in prison for conspiracy to commit offenses against the United States; a maximum of 20 years in prison for each count of falsification of records in a federal investigation; and a maximum of 20 years in prison for each count of obstructing an official proceeding. The case will be handled by U.S. District Judge Liam O’Grady of the U.S. District Court for the Eastern District of Virginia, who has been assigned to preside over this case in the District of Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Matthew J. Maddox, who are prosecuting the case.
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Edmond Man Charged with 35 Counts of Trade Secret Theft and ConspiracyRead the Press Release
OKLAHOMA CITY – JOSHUA DECKER, 36, of Edmond, has been charged with 35 counts of conspiracy and theft, downloading, transmission, and possession of trade secrets, announced U.S. Attorney Timothy J. Downing.
On December 15, 2020, a federal grand jury returned a 35-count Indictment against Decker. According to the Indictment, Decker was a controller in an oil and gas company that serves customers engaged in drilling and production. Headquartered in Oklahoma City, the company manufactures compact manifold ball valves in 1", 2", 3", and 4" varieties, which are sold across the United States. In March 2017, while employed as the controller at the company, Decker registered a new company with the Oklahoma Secretary of State, Legacy Valve Systems ("Legacy"). He then recruited co-workers at the victim company to join him at Legacy.
It is alleged that in April and May 2017, Decker conspired to steal numerous trade secrets from the victim company. Specifically, the Indictment alleges Decker and others acting at his direction downloaded the technical drawings, material specifications, manufacturing instructions, assembly instructions, and quality assurance procedures for the victim company’s 1", 2", and 3" valves, and Decker transmitted the victim company’s detailed financial information—including cost information and sales by product and customer—by email to himself. It is alleged that Decker then provided the victim company’s drawings to an individual who copied them and replaced the victim company’s logo with a Legacy logo to begin manufacturing and selling valves to compete with the victim company. Decker then allegedly directed others to delete all their text messages and files, including messages on an encrypted application, to conceal their theft from the victim company.
Count 1 charges Decker with conspiracy to commit theft of trade secrets. Counts 2-35 charge him with downloading, transmitting, and possessing trade secrets. The trade secrets are alleged to be specific drawings and financial records which were treated as confidential and protected by the company, and each of which had independent economic value to a competitor like Legacy. If convicted of any of Counts 1-35, Decker faces up to 10 years in prison and a $250,000.00 fine, or twice the gross gain from the offense or twice the gross loss to the victim company.
This case is the result of an investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
The public is reminded these charges are merely accusations and that the defendant is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information. Attached is the Indictment the federal grand jury returned in this matter.
To download a photo of U.S. Attorney Downing, click here.
Dangerous Tennessee Felon Sentenced to 18 Years for Hopkinsville CarjackingRead the Press Release
PADUCAH, Ky. – United States Senior District Court Judge Thomas B. Russell sentenced a Clarksville, Tennessee convicted felon to 18 years imprisonment, followed by three years of supervised release for the defendant’s role in the February 18, 2019, Hopkinsville, Kentucky carjacking, announced United States Attorney Russell Coleman. There is no parole in the federal system.
“When you put families and our law enforcement at risk though armed carjacking and shooting at a police officer, then be prepared to face decades in federal prison,” said U.S. Attorney Russell Coleman. “This lawlessness will not be tolerated in the Western District of Kentucky.”
“During this armed carjacking - the defendant, Keith Kuzyk, shot a Hopkinsville, Kentucky Police Officer. While that charge is being adjudicated in state court, the federal sentence of 18 years in prison without the possibility of parole is appropriate for this violent crime,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF is thankful to our law enforcement partners who risk their lives to protect our communities.”
Keith A Kuzyk pled guilty to carjacking, use and discharge of a firearm during a crime of violence, and being a felon in possession of a firearm, on August 20, 2020, in United States District Court.
Specifically, Kuzyk admitted to taking a 2011 Chevrolet Tahoe on February 18, 2019, in Christian County, Kentucky, by force, violence, and intimidation, with the intent to cause death and serious bodily harm to four identified victims.
Further, Kuzyk admitted to the use, carry and discharge of a Bersa, model Thunder 380 Plus, .380 AUTO semiautomatic pistol, and ammunition, during the carjacking, a crime of violence, as well as possession of a Spike’s Tactical, model ST15, multi (5.56 millimeter/.223) semiautomatic rifle. At the time of the offense, Kuzyk was knowingly a felon in possession of a firearm. Kuzyk was previously convicted of Aggravated Assault and Evading Arrest, Theft over $1,000, and First Degree Possession of a Controlled Substance (methamphetamine); all felonies.
Kuzyk was further ordered to pay victim restitution in the amount of $174.00.
Co-defendant Anthony Johnson, of Clarksville, TN, was sentenced by Senior Judge Russell, in United States District Court, on November 18, 2020, to 84 months imprisonment, followed by three years’ supervised release after pleading guilty to carjacking, aiding and abetting, and the use, carry, and brandish of a firearm during and in relation to a crime of violence.
This case was prosecuted by Assistant United States Attorney Seth Hancock and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Federal Bureau of Investigation (FBI); Kentucky State Police; Hopkinsville Police Department; Christian County Sheriff’s Office; Hopkinsville/Christian County Violent Crime Task Force; Clarksville Police Department; and Montgomery County, Tennessee Sheriff’s Office.
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
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Crystal Methamphetamine Distributor Sentenced to over Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Aaron Moses (31, Odessa) to 10 years and 6 months in federal prison for conspiracy to possess with intent to distribute methamphetamine, and for possession of cocaine and heroin with intent to distribute. Moses had pleaded guilty on September 22, 2020.
According to court documents, in October and November of 2018, Moses and a co-conspirator distributed over 830 grams of crystal methamphetamine in Pasco County during multiple transactions with a confidential source. Moses supplied the methamphetamine to the co-conspirator at prearranged meeting locations, who in turn, sold it to the confidential source.
Moses also sold cocaine and substances containing fentanyl and heroin to a confidential source in April of 2019. Upon executing a federal search warrant at Moses’s residence on April 22, 2019, investigators recovered powder cocaine, heroin, crack cocaine, MDMA pills, oxycodone pills, multiple cutting agents, and a digital scale. They also found a loaded shotgun and an AK-47 rifle in the master bedroom, a pistol in the living room, and loaded pistol inside a car parked, inside the garage.
his case was investigated by the Drug Enforcement Administration, the Pasco Sheriff’s Office, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Covington Man Pleads Guilty to Distribution of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that BRANDON WARD, age 33, a resident of Covington, Louisiana, pleaded guilty as charged before United States District Judge Eldon E. Fallon to a one-count Indictment charging him with distribution of images and videos depicting the sexual exploitation of children, including children as young as less than one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2).
According to court documents, in about October 2019, a special agent with the Federal Bureau of Investigation operating in an undercover capacity, accessed a chat room within an instant messaging mobile application known to be a haven for purveyors of digital files depicting the sexual victimization of children. Between September 29, 2019, and October 13, 2019, an individual subsequently determined to be WARD posted over two dozen links to online file storage service accounts. Each link contained hundreds of videos depicting pre-pubescent children engaging in sexually explicit conduct with adults. In total, WARD uploaded to the accounts at least 47,000 files depicting the sexual victimization of children as young as one year old.
Additionally, a second FBI special agent acting in an undercover capacity participated in direct communication with WARD via Skype, phone, and text message. In the conversations, WARD claimed he had been in contact with an 8-year-old female (Minor 1) who had a crush on him. WARD sent non-sexually explicit pictures he took of Minor 1 to the undercover agent. WARD also instructed the undercover agent, who claimed to be babysitting a six-year-old female, to engage in sexually explicit conduct with the child while WARD watched via Skype.
WARD faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing before Judge Fallon has been scheduled for March 18, 2021, at 2:00 pm.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Cordova Man Federally Indicted for $5.9 Million Insurance Fraud SchemeRead the Press Release
Memphis, TN – Christopher C. Brown, 43, of Cordova, Tennessee has been federally indicted for a fraudulent scheme to unlawfully obtain $5.9 million dollars from multiple insurance companies. D. Michael Dunavant, U.S. Attorney, announced the indictment today.
According to allegations in the indictment, Brown defrauded multiple insurance companies over several years by making false representations, including submitting false, forged, and altered documents, to get the victim companies to pay his fraudulent claims.
Brown is charged with four counts of mail fraud and, if convicted, faces up to eighty years in federal prison and a fine of $1,000,000. The indictment also contains an asset forfeiture count seeking to recover all proceeds from the alleged illegal scheme and behavior. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Insurance fraud schemes negatively affect interstate commerce and victimize innocent companies and customers. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable for such crimes of dishonesty."
The United States Postal Inspection Service (USPIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Shelby County Sheriff’s Office investigated this case.
The charges and allegations in the indictment are only accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorneys Tony Arvin and David Pritchard are prosecuting this case on behalf of the government.
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Convicted Felon from Lafayette Sentenced for Illegal Possession of FirearmRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Tre’Vin R. Bob, 23, of Lafayette, Louisiana, was sentenced by United States District Judge Robert R. Summerhays to 63 months in prison followed by 3 years of supervised release for being a convicted felon in possession of a firearm.
Tre’Vin R. Bob had outstanding arrest warrants from the 15th Judicial District Court and, on January 8, 2019, officers with the Lafayette Police Department observed him walking in a Lafayette neighborhood. When Bob saw the officers, he fled on foot and officers chased after him. He was thereafter apprehended and arrested. On January 9, 2019, law enforcement officers intercepted a call made by Bob from the jail to a family member wherein he admitted that, before he ran from officers the day prior, he hid a firearm in the backyard of a residence in that same neighborhood, and he described the location. In the call, Bob asked the family member to retrieve the firearm before it was found by law enforcement. Detectives with the Lafayette Police Department went to the location described by Bob and retrieved the loaded firearm.
Bob had previously been convicted of several felony offenses, including illegal possession of stolen things over $1,500, attempted simple burglary, theft of a firearm, and attempted possession of a firearm by a convicted felon, and was therefore prohibited from possessing a firearm.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney J. Daniel Siefker, Jr. prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Computer Programmer Sentenced to Prison for Making False Statements About His Involvement in the “Silk Road” WebsiteRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL R. WEIGAND, a/k/a “Shabang,” a/k/a “~Shabang~,” a/k/a “~s,” a/k/a “s,” was sentenced to eight months in prison today for making false statements to federal agents about his involvement in, and his work for, the “Silk Road” online illicit black market, which was responsible for distributing hundreds of millions of dollars of narcotics and other contraband. WEIGAND’s false statements concealed his role in the operation of the Silk Road website. WEIGAND previously pled guilty before United States District Judge William H. Pauley III, who also imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Michael Weigand supplied technological advice directly to the leadership of Silk Road, a secret online marketplace for criminal activity. He laundered Silk Road proceeds and traveled overseas to remove Silk Road evidence from a co-conspirator’s residence. Weigand subsequently lied to law enforcement, falsely claiming to have done nothing for Silk Road, and has now been sentenced to prison for that knowing falsehood.”
According to the Information, court filings, statements made in court, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder and chief administrator:
Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet at the time. During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over one hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions. Silk Road was specifically designed to allow its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement through the use of the Tor network and a Bitcoin-based payment system.
WEIGAND, a computer programmer and electrical engineer, worked with Roger Thomas Clark, the senior adviser to Ulbricht, on certain aspects of Silk Road. For instance, WEIGAND and Clark worked to identify technological vulnerabilities in the Silk Road website. WEIGAND also supplied technological advice directly to Clark and Ulbricht. After Silk Road was shut down in October 2013, WEIGAND laundered more than $75,000 in Silk Road proceeds. In addition, in late 2013, the Government disclosed that it had been able to access the contents of Ulbricht’s laptop computer, which identified Clark as Ulbricht’s right-hand man; shortly after this revelation, Clark transferred more than $20,000 to WEIGAND in Bitcoin, and WEIGAND traveled to Clark’s London residence and removed Silk Road evidence.
In January 2019, WEIGAND was questioned by IRS and FBI Special Agents. After being specifically warned that it is a federal crime to make a false statement to a federal law enforcement officer, WEIGAND attempted to cover up his involvement in Silk Road by falsely stating, among other things, that (1) he never opened an account on Silk Road; (2) he never used the online pseudonyms “Shabang” or “~Shabang~”; (3) he never transferred Bitcoin to Silk Road; (4) he never exposed computer security vulnerabilities in the Silk Road website; (5) he never communicated with anyone who used the online pseudonym “Dread Pirate Roberts,” “DPR,” or “Silk Road” (i.e., Ulbricht); (6) he never performed any services for the Silk Road website; and (7) he did not know the true identity of “Variety Jones” (one of Clark’s pseudonyms) on Silk Road. WEIGAND also falsely stated that the purpose of his trip to London in late 2013, following the takedown of the Silk Road website and arrest of Ulbricht, was to meet with Clark’s associate regarding a marijuana seed business; in fact, WEIGAND went to Clark’s London residence and removed physical Silk Road evidence.
In addition to his prison term, WEIGAND, 59, of Kirtland, Ohio, was sentenced to three years of supervised release.
The founder and operator of Silk Road, Ross Ulbricht, was previously convicted of seven offenses after a jury trial: distributing narcotics, distributing narcotics by means of the Internet, conspiring to distribute narcotics, engaging in a continuing criminal enterprise, conspiring to commit computer hacking, conspiring to traffic in false identity documents, and conspiring to commit money laundering. Ulbricht was sentenced principally to life in prison and $183 million in forfeiture.
Ulbricht’s senior adviser, Roger Thomas Clark, pled guilty to conspiring to distribute narcotics and his sentencing is currently pending. Clark faces a maximum potential sentence of 20 years in prison.
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Ms. Strauss praised the outstanding joint efforts of the Boston Field Office of the Internal Revenue Service – Criminal Investigation, the New York and Washington Field Offices of the Federal Bureau of Investigation, the New York Field Office of Homeland Security Investigations, and the New York City Police Department. Ms. Strauss also thanked the FBI’s Cleveland Office for its assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
China-Based Executive at U.S. Telecommunications Company Charged with Disrupting Video Meetings Commemorating Tiananmen Square MassacreRead the Press Release
A complaint and arrest warrant were unsealed today in federal court in Brooklyn charging Xinjiang Jin, also known as “Julien Jin,” with conspiracy to commit interstate harassment and unlawful conspiracy to transfer a means of identification. Jin, an employee of a U.S.-based telecommunications company (Company-1) who was based in the People’s Republic of China (PRC), allegedly participated in a scheme to disrupt a series of meetings in May and June 2020 held to commemorate the June 4, 1989 Tiananmen Square massacre in the PRC. The meetings were conducted using a videoconferencing program provided by Company-1, and were organized and hosted by U.S-based individuals, including individuals residing in the Eastern District of New York. Jin is not in U.S. custody.
“No company with significant business interests in China is immune from the coercive power of the Chinese Communist Party,” said Assistant Attorney General for National Security John C. Demers. “The Chinese Communist Party will use those within its reach to sap the tree of liberty, stifling free speech in China, the United States and elsewhere about the Party’s repression of the Chinese people. For companies with operations in China, like that here, this reality may mean executives being coopted to further repressive activity at odds with the values that have allowed that company to flourish here.”
“The FBI remains committed to protecting the exercise of free speech for all Americans. As this complaint alleges, that freedom was directly infringed upon by the pernicious activities of Communist China’s Intelligence Services, in support of a regime that neither reflects nor upholds our democratic values,” said FBI Director Christopher Wray. “Americans should understand that the Chinese Government will not hesitate to exploit companies operating in China to further their international agenda, including repression of free speech.”
“The allegations in the complaint lay bare the Faustian bargain that the PRC government demands of U.S. technology companies doing business within the PRC’s borders, and the insider threat that those companies face from their own employees in the PRC,” said Acting United States Attorney Seth D. DuCharme. “As alleged, Jin worked closely with the PRC government and members of PRC intelligence services to help the PRC government silence the political and religious speech of users of the platform of a U.S. technology company. Jin willingly committed crimes, and sought to mislead others at the company, to help PRC authorities censor and punish U.S. users’ core political speech merely for exercising their rights to free expression. The charges announced today make clear that employees working in the PRC for U.S. technology companies make those companies—and their users—vulnerable to the malign influence of the PRC government. This Office will continue working tirelessly to protect against threats to the free expression of political views and religious beliefs, regardless whether those threats come from inside or outside the United States.”
Mr. DuCharme and Mr. Demers also extended their thanks and appreciation to Company-1 for its cooperation in the government’s ongoing investigation.
According to the complaint, Jin served as Company-1’s primary liaison with PRC law enforcement and intelligence services. In that capacity, he regularly responded to requests from the PRC government for information and to terminate video meetings hosted on Company-1’s video communications platform. Part of Jin’s duties included providing information to the PRC government about Company-1’s users and meetings, and in some cases he provided information – such as Internet Protocol addresses, names and email addresses – of users located outside of the PRC. Jin was also responsible for proactively monitoring Company-1’s video communications platform for what the PRC government considers to be “illegal” meetings to discuss political and religious subjects unacceptable to the Chinese Communist Party (CCP) and the PRC government.
As alleged in the complaint, between January 2019 to the present, Jin and others conspired to use Company-1’s systems in the United States to censor the political and religious speech of individuals located in the United States and around the world at the direction and under the control of officials of the PRC government. Among other actions taken at the direction of the PRC government, Jin and others terminated at least four video meetings hosted on Company-1’s networks commemorating the thirty-first anniversary of the Tiananmen Square massacre, most of which were organized and attended by U.S.-based participants, such as dissidents who had participated in and survived the 1989 protests. Some of the participants who were unable to attend these meetings were Company-1 customers in Queens and Long Island, New York who had purchased subscriptions to Company-1’s services, and therefore entered into service agreements with Company-1 governed by its Terms of Service (TOS).
Jin, officials from the PRC government and others allegedly collaborated to identify meeting participants and to disrupt meetings hosted on Company-1’s U.S. servers, at times creating pretextual reasons to justify their actions to other employees and executives of Company-1, as well as Company-1’s users themselves. In particular, in May and June 2020, Jin and others acted to disrupt meetings held on the Company-1 platform to discuss politically sensitive topics unacceptable to the PRC government by infiltrating the meetings to gather evidence about purported misconduct occurring in those meetings. In fact, there was no misconduct; Jin and his co-conspirators fabricated evidence of TOS violations to provide justification for terminating the meetings, as well as certain participants’ accounts. Jin then tasked a high-ranking employee of Company-1 in the United States to effect the termination of meetings and the suspension and cancellation of user accounts.
As detailed in the complaint, Jin’s co-conspirators created fake email accounts and Company-1 accounts in the names of others, including PRC political dissidents, to fabricate evidence that the hosts of and participants in the meetings to commemorate the Tiananmen Square massacre were supporting terrorist organizations, inciting violence or distributing child pornography. The fabricated evidence falsely asserted that the meetings included discussions of child abuse or exploitation, terrorism, racism or incitements to violence, and sometimes included screenshots of the purported participants’ user profiles featuring, for example, a masked person holding a flag resembling that of the Islamic State terrorist group. Jin used the complaints as evidence to persuade Company-1 executives based in the United States to terminate meetings and suspend or terminate the user accounts of the meeting hosts.
PRC authorities took advantage of information provided by Jin to retaliate against and intimidate participants residing in the PRC, or PRC-based family members of meeting participants. PRC authorities temporarily detained at least one person who planned to speak during a commemoration meeting. In another case, PRC authorities visited family members of a participant in the meetings and directed them to tell the participant to cease speaking out against the PRC government and rather to support socialism and the CCP.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of both charged conspiracies, Jin faces a maximum sentence of ten years in prison.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Alexander A. Solomon, Richard M. Tucker, David K. Kessler and Ian C. Richardson are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
China-Based Executive at U.S. Telecommunications Company Charged with Disrupting Video Meetings Commemorating Tiananmen Square MassacreRead the Press Release
A complaint and arrest warrant were unsealed today in federal court in Brooklyn charging Xinjiang Jin, also known as “Julien Jin,” with conspiracy to commit interstate harassment and unlawful conspiracy to transfer a means of identification. Jin, an employee of a U.S.-based telecommunications company (Company-1) who was based in the People’s Republic of China (PRC), allegedly participated in a scheme to disrupt a series of meetings in May and June 2020 held to commemorate the June 4, 1989 Tiananmen Square massacre in the PRC. The meetings were conducted using a videoconferencing program provided by Company-1, and were organized and hosted by U.S-based individuals, including individuals residing in the Eastern District of New York. Jin is not in U.S. custody.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; and Christopher Wray, Director, Federal Bureau of Investigation (FBI), announced the charges.
“The allegations in the complaint lay bare the Faustian bargain that the PRC government demands of U.S. technology companies doing business within the PRC’s borders, and the insider threat that those companies face from their own employees in the PRC,” stated Acting United States Attorney DuCharme. “As alleged, Jin worked closely with the PRC government and members of PRC intelligence services to help the PRC government silence the political and religious speech of users of the platform of a U.S. technology company. Jin willingly committed crimes, and sought to mislead others at the company, to help PRC authorities censor and punish U.S. users’ core political speech merely for exercising their rights to free expression. The charges announced today make clear that employees working in the PRC for U.S. technology companies make those companies—and their users—vulnerable to the malign influence of the PRC government. This Office will continue working tirelessly to protect against threats to the free expression of political views and religious beliefs, regardless whether those threats come from inside or outside the United States.” Mr. DuCharme and Mr. Demers also extended their thanks and appreciation to Company-1 for its cooperation in the government’s ongoing investigation.
“No company with significant business interests in China is immune from the coercive power of the Chinese Communist Party,” stated Assistant Attorney General Demers. “The Chinese Communist Party will use those within its reach to sap the tree of liberty, stifling free speech in China, the United States and elsewhere about the Party’s repression of the Chinese people. For companies with operations in China, like that here, this reality may mean executives being coopted to further repressive activity at odds with the values that have allowed that company to flourish here.”
“The FBI remains committed to protecting the exercise of free speech for all Americans. As this complaint alleges, that freedom was directly infringed upon by the pernicious activities of Communist China’s Intelligence Services, in support of a regime that neither reflects nor upholds our democratic values,” stated FBI Director Wray. “Americans should understand that the Chinese Government will not hesitate to exploit companies operating in China to further their international agenda, including repression of free speech.”
According to the complaint, Jin served as Company-1’s primary liaison with PRC law enforcement and intelligence services. In that capacity, he regularly responded to requests from the PRC government for information and to terminate video meetings hosted on Company-1’s video communications platform. Part of Jin’s duties included providing information to the PRC government about Company-1’s users and meetings, and in some cases he provided information – such as Internet Protocol addresses, names and email addresses – of users located outside of the PRC. Jin was also responsible for proactively monitoring Company-1’s video communications platform for what the PRC government considers to be “illegal” meetings to discuss political and religious subjects unacceptable to the Chinese Communist Party (CCP) and the PRC government.
As alleged in the complaint, between January 2019 to the present, Jin and others conspired to use Company-1’s systems in the United States to censor the political and religious speech of individuals located in the United States and around the world at the direction and under the control of officials of the PRC government. Among other actions taken at the direction of the PRC government, Jin and others terminated at least four video meetings hosted on Company-1’s networks commemorating the thirty-first anniversary of the Tiananmen Square massacre, most of which were organized and attended by U.S.-based participants, such as dissidents who had participated in and survived the 1989 protests. Some of the participants who were unable to attend these meetings were Company-1 customers in Queens and Long Island, New York who had purchased subscriptions to Company-1’s services, and therefore entered into service agreements with Company-1 governed by its Terms of Service (TOS).
Jin, officials from the PRC government and others allegedly collaborated to identify meeting participants and to disrupt meetings hosted on Company-1’s U.S. servers, at times creating pretextual reasons to justify their actions to other employees and executives of Company-1, as well as Company-1’s users themselves. In particular, in May and June 2020, Jin and others acted to disrupt meetings held on the Company-1 platform to discuss politically sensitive topics unacceptable to the PRC government by infiltrating the meetings to gather evidence about purported misconduct occurring in those meetings. In fact, there was no misconduct; Jin and his co-conspirators fabricated evidence of TOS violations to provide justification for terminating the meetings, as well as certain participants’ accounts. Jin then tasked a high-ranking employee of Company-1 in the United States to effect the termination of meetings and the suspension and cancellation of user accounts.
As detailed in the complaint, Jin’s co-conspirators created fake email accounts and Company-1 accounts in the names of others, including PRC political dissidents, to fabricate evidence that the hosts of and participants in the meetings to commemorate the Tiananmen Square massacre were supporting terrorist organizations, inciting violence or distributing child pornography. The fabricated evidence falsely asserted that the meetings included discussions of child abuse or exploitation, terrorism, racism or incitements to violence, and sometimes included screenshots of the purported participants’ user profiles featuring, for example, a masked person holding a flag resembling that of the Islamic State terrorist group. Jin used the complaints as evidence to persuade Company-1 executives based in the United States to terminate meetings and suspend or terminate the user accounts of the meeting hosts.
PRC authorities took advantage of information provided by Jin to retaliate against and intimidate participants residing in the PRC, or PRC-based family members of meeting participants. PRC authorities temporarily detained at least one person who planned to speak during a commemoration meeting. In another case, PRC authorities visited family members of a participant in the meetings and directed them to tell the participant to cease speaking out against the PRC government and rather to support socialism and the CCP.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of both charged conspiracies, Jin faces a maximum sentence of 10 years in prison.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Richard M. Tucker, David K. Kessler and Ian C. Richardson are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
XINJIANG JIN, also known as “Julien Jin”
Age: 39
Zhejiang Province, People’s Republic of ChinaE.D.N.Y. Docket No. 20-MJ-1103
Charlotte Doctor Sentenced to Prison Time for Conspiring to Distribute Prescription OpioidsRead the Press Release
ABINGDON, Va.- A Charlotte, North Carolina-based doctor and his wife were sentenced today in U.S. District Court in Abingdon on charges they conspired to illegally distribute prescription opioids in the Western District of Virginia and then made a false statement about the conduct, Acting United States Attorney Daniel P. Bubar announced.
David Francis Lelio, 57, was sentenced today to 36 months in prison. Nadja Siiri Kujanson-Lelio, 51, was sentenced today to three years’ probation, including six months of home detention. David and Nadja Lelio, both of Charlotte, N.C., each pleaded guilty in August 2020, to one count of conspiracy to distribute prescription opioids, specifically oxycodone. David Lelio also pleaded guilty to an additional count of making a false statement.
“Dr. Lelio, with the help of his wife, used his medical license to take advantage of patients to illegally obtain opioids for themselves,” United States Attorney Bubar said today. “Sadly, instead of helping to fight the scourge of opioids, they only contributed to it. I am grateful for the Virginia State Police and Wythe County Sheriff’s Office, who were integral to bringing the Lelios to justice and for their continued partnership in supporting communities fighting the opioid crisis every day.”
The pair admitted that between 2016 and 2019, Dr. David Lelio wrote more than 60 prescriptions for oxycodone to patients, some of whom resided in Wythe County, Virginia, without a legitimate medical purpose. As part of the conspiracy, Dr. Lelio wrote opioid prescriptions in his patients’ names with the understanding that some or all of the prescriptions would be shared with his wife, Nadja Kujanson-Lelio. Dr. Lelio and his wife then reimbursed the patients for the cost of filling the prescriptions. When asked by law enforcement about the conspiracy, David Lelio falsely stated there was no agreement with any of his patients to return or share the prescription opioids with his wife.
The investigation of the case was conducted by the Wythe County Sheriff’s Office and the Virginia State Police. Assistant United States Attorneys Lena Busscher and Randy Ramseyer prosecuted the case for the United States.
Catawba County Man Is Sentenced to 6.5 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Darren Eugene Matthews, 46, of Conover, N.C. to 78 months in prison yesterday on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Matthews was also ordered to serve a lifetime of supervised release and to register as a sex offender upon completion of his prison term.
Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in November 2019, a detective with the Catawba County Sheriff’s Office received information that an individual, later identified as Matthews, was emailing child pornography over the internet. Court records show that some of the images depicted children, some as young as toddlers, being sexually abused. On November 22, 2019, Law enforcement executed a search warrant at Matthews’ residence and seized numerous electronic devices. A forensic examination of the devices revealed that Matthews possessed more than 1,300 files of child pornography.
In August 2020, Matthews pleaded guilty to receipt of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended the investigative work of the Catawba County Sheriff’s Office. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Career offender hiding out in Akron sentenced to 20 yearsRead the Press Release
U.S. Attorney Justin Herdman announced today that Brad Lewis Bradley, 40, of Detroit, Michigan, was sentenced by U.S. District Court Judge John R. Adams to 240 months of imprisonment after he pleaded guilty to possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense.
According to court documents, on September 12, 2019, Summit County Drug Unit detectives and Drug Enforcement Administration agents executed a search warrant at the defendant’s residence in Akron, Ohio, for suspected trafficking of fentanyl. The defendant was present at the residence upon arrival and stated that he possessed drugs and two firearms in the home. The defendant directed law enforcement agents to the drugs and weapons, where they found 221 grams of fentanyl, a loaded .40 caliber pistol and a loaded 9-millimeter pistol.
Law enforcement later learned that the defendant was living in Akron as a fugitive, using an alias to avoid prosecution from drug trafficking charges in Detroit.
Bradley was sentenced under a career offender enhancement by Judge Adams due to previous felony convictions for drug trafficking in Detroit.
This case was investigated by the Summit County Drug Unit and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorney Aaron Howell.
CEO of Medical Device Company Charged in COVID-19 Related Securities Fraud SchemeRead the Press Release
The chief executive officer (CEO) of a California-based medical device company was indicted by a federal grand jury in connection with an alleged scheme to defraud investors by making false and misleading statements about the purported development of a new COVID-19 test, leading to millions of dollars in investor losses.
Keith Berman, 67, the CEO of Decision Diagnostics Inc. (DECN), was charged by indictment, unsealed today, with one count of securities fraud and one count of making false statements. The indictment alleges that, from February through December 2020, Berman engaged in a scheme to defraud investors by falsely claiming DECN had developed a 15-second test to detect COVID-19 in a finger prick sample of blood. In truth, Berman knew his test was merely an idea and not a validated method of accurately detecting COVID-19, much less an actual product ready for manufacture and sale. According to the indictment, Berman and DECN were in precarious financial condition in the lead up to the pandemic, and Berman wrote in internal emails that he needed a “new story” to “raise millions.”
The indictment further alleges that Berman falsely told investors that the Food and Drug Administration (FDA) was on the verge of approving DECN’s request for emergency use authorization of its new COVID-19 test. In truth, Berman knew that the company lacked the financial resources and insurance necessary to conduct the clinical testing required by the FDA to complete the application process, but concealed these material facts from and misled investors. In an effort to exert political pressure on the FDA and obtain approval of the DECN COVID-19 test without conducting the necessary clinical testing, Berman hired a political consultant to lobby Members of Congress, telling Members of Congress in talking points that the FDA had “moth-balled” the company’s submission and that it remained “stuck in limbo” at or around the same time that Berman was telling investors that the test was on the verge of approval. Between early March and April 23, 2020, DECN’s stock price rose by over 1,500 percent.
The indictment further alleges that, as part of the alleged scheme, Berman used an alias, “plutoniumimplosion,” to repeat false and misleading statements to investors on Internet message boards, and lull suspecting investors into inaction by refuting allegations of fraud and threatening potential whistleblowers with civil or criminal sanctions. Berman, using his alias, also projected that demand for the DECN test would be “close to 3 billion [test] kits” and claimed that DECN “is in the forefront no matter how loud the naysayers are . . . But then again the 5-6 message board posters [claiming the DECN test was fraudulent] may be right and Mr. Berman will find himself in prison.” The indictment charges that Berman, in sworn testimony to the SEC, made false statements in which he denied ever posting on the message board.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim who has invested in Decision Diagnostics, please visit: https://www.justice.gov/criminal-vns/case/decision-diagnostics
The U.S. Postal Inspection Service and FBI investigated the case. Trial Attorney Christopher Fenton and Assistant Chiefs Jacob Foster and Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn mode about the history of our agency at www.Justice.gov/Celebrating150Years.
Belmont Man Sentenced to 24 Months for Conspiracy to Commit Bank FraudRead the Press Release
CONCORD - Jon Daigle, Jr., 33, of Belmont, was sentenced to 24 months in federal prison for conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 12, 2019, the Belmont Police Department received a report that two people were using drugs in a parked car outside a convenience store. Officers responded and identified Daigle and Monica Kemper as the occupants of the vehicle. In plain view, they observed drug paraphernalia in the car. Officers seized the vehicle and applied for a search warrant, which was granted. Later that day, officers searched the car and found suspected methamphetamine, drug paraphernalia, mail addressed to various people in Laconia, Gilford, and Meredith, New Hampshire (including checks made out to people who were not occupants of the vehicle), a USPS mail tote, and a lock pick set.
On January 15, 2020, the Bedford Police Department began an investigation of mail stolen from a community mailroom. A surveillance camera in the mailroom showed that on January 12, 2020, Daigle was captured on video as he picked the lock to the mailroom, entered the room, rummaged through various packages, and left with a handful of mail.
On various occasions between January and April of 2020, Daigle and Kemper altered stolen checks and cashed or attempted to cash them at various banks in New Hampshire. Some of the checks were stolen from the community mailroom in Bedford and also from mailboxes in Manchester. On April 1, 2020, Daigle and Kemper attempted to use a stolen driver’s license to cash a check at a credit union.
On April 23, 2020, Daigle and Kemper were arrested by Manchester Police officers after an extensive investigation. Officers seized the vehicle and obtained a search warrant. The vehicle contained over $16,000 in stolen checks, stolen credit cards, the stolen driver’s license used at the credit union on April 1, and various other pieces of stolen mail.
Daigle previously pleaded guilty on August 6, 2020. Kemper previously pleaded guilty and is scheduled to be sentenced on February 25, 2021.
“Fraud crimes involving stolen mail can damage victims in a variety of ways,” said U.S. Attorney Murray. “In order to protect the integrity of the mail and our financial system, we will work closely with our law enforcement partners to identify and prosecute the criminals who attempt to profit by stealing mail and defrauding banks with stolen checks.”
“The theft of mail in the furtherance of various fraud schemes has a significant financial and emotional impact on its victims,” says Manchester Chief Allen Aldenberg. “Hopefully, this will serve as a warning to all would-be mail thieves that there are serious consequences for this type of activity."
This matter was investigated by the United States Postal Inspection Service, the Belmont Police Department, the Bedford Police Department, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald and Aaron Gingrande
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Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced MICHAEL BRYAN DELUCA, 39, of Philadelphia, Pennsylvania on December 15, 2020 for being a felon in possession of a firearm. Deluca was arrested in Cheyenne, Wyoming. He received one hundred twenty months of imprisonment, to be followed by thirty months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced MARQUES ALAN CHARGING CROW, 35, of Fort Washakie, Wyoming on December 15, 2020 for three counts of aggravated sexual abuse and one count of abusive sexual contact. He received four hundred fifty-six months of imprisonment, to be followed by one hundred twenty months of supervised release and ordered to pay restitution in the amount of $8,478.85 and a $400.00 special assessment. The Federal Bureau of Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced BRANDON MICHAEL JAYMES WHITEMAN, 25, of Fort Washakie, Wyoming on December 17, 2020 for sexual abuse of a minor. He received one hundred eighty months of imprisonment, to be followed by one hundred twenty months of supervised release and ordered to pay restitution in the amount of $36,736.32 and a $100.00 special assessment. The Federal Bureau of Investigation investigated this case.
17 December 2020
Woman ordered to prison for smuggling methRead the Press Release
LAREDO, Texas – A 30-year-old woman from Bradenton, Florida, has been ordered to federal prison following her conviction of importing 15.62 kilograms of crystal meth, announced U.S. Attorney Ryan K. Patrick.
A Laredo jury deliberated for five hours following a two-day trial before convicting Mayra Aguirre on May 1, 2018.
Today, U.S. District Judge Diana Saldana handed Aguirre a 24-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Aguirre had accepted responsibility and demonstrated sincere remorse for her actions.
On Oct. 9, 2017, Aguirre attempted to enter the United States via the Lincoln-Juarez Bridge driving her recently-purchased silver 2012 Dodge Durango. Her sister and young toddler were with her. Officers became suspicious after she gave inconsistent replies to standard questions and could not provide proof of vehicle registration.
She was referred to secondary inspection, at which time officers detected a powerful chemical odor emanating from the interior of the vehicle. The odor did not dissipate and initially made some officers nauseous. An inspection revealed obvious signs of mechanical tampering with the discovery of non-factory bolts, glue and unusual welding under the carpeting. A subsequent search revealed 15.62 kilograms of meth stored within 29 plastic bags hidden inside a false “trap door” panel manually attached to the inside of vehicle.
At trial, the jury also heard that the drugs have an estimated value of up to $500,000 in Florida.
The defense attempted to convince the jury the meth was placed in Aguirre’s vehicle by unknown persons when it was stolen in Mexico a month prior to her arrest. They did not believe her claims and found her guilty as charged.
Aguirre was ordered into custody where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney (AUSA) Francisco J. Rodriguez and former AUSAs Christopher Dos Santos and Michael Eaton prosecuted the case.
Wolf Point man admits assault with a hatchetRead the Press Release
GREAT FALLS – A Wolf Point man on Wednesday admitted assaulting a woman with a hatchet at a residence on the Fort Peck Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Austin Lee Pipe, Sr., 30, pleaded guilty to assault resulting in substantial bodily injury. Pipe faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Pipe was detained pending further proceedings. Sentencing was set for April 15, 2021.
The prosecution said in court records that on Feb. 13, 2019, Pipe and the victim, identified as Jane Doe, got into an argument at Pipe’s residence. Pipe grabbed a hatchet and struck the victim in the arm and leg. The victim required medical treatment at the hospital.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI and Fort Peck Criminal Investigations.
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