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15 December 2020
Lowell Man Sentenced to 10 Years in Federal Prison for Money LaunderingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas announced that, Jonathan Terry, age 35, was sentenced today to 120 months in federal prison followed by three years of supervised release on one count of Money Laundering. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing today in the United States District Court in Fayetteville.
Beginning in July of 2019, Terry began fraudulently obtaining the banking and personally identifying information of individuals throughout the Fayetteville Division of the Western District of Arkansas through various means, primarily from stealing mail from unattended mailboxes. After he obtained that information, Terry opened financial accounts at various financial institutions, to include TD Ameritrade and Fidelity, and funded those accounts with stolen checks. Terry also attempted to take advantage of the “pending” status of large deposits to transfer funds amongst the various accounts he opened. In all, the Court found that Terry attempted $2,256,727.50 in transactions on those fraudulent accounts, though he and his coconspirators only obtained approximately $4,000 in the overall scheme. The Court found that Terry was an “organizer or leader” of the scheme, that he victimized over 10 individuals, and that he obstructed justice during the investigation.
Terry was indicted by a federal grand jury in March of 2020 and entered a guilty plea in June of 2020.
This case was investigated by the Madison County Sheriff’s Office, the Fayetteville Police Department, the Washington County Sheriff’s Office, the Arkansas State Police, IRS, the FBI and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Ben Wulff prosecuted the case for the Western District of Arkansas.
Louisiana Company Sentenced for Role in Conspiracy to Defraud the Government and Violate the Procurement Integrity ActRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser and Makan Delrahim, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that CAJAN WELDING & RENTALS, LTD., a company located in Opelousas, Louisiana, was sentenced by United States District Judge Greg G. Guidry after previously pleading guilty to one count of conspiracy to defraud the United States and to violate the Procurement Integrity Act, in violation of 18 U.S.C. § 371.
According to the plea agreement, CAJAN WELDING & RENTALS, LTD. conspired with unnamed co-conspirators to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve.
Judge Guidry sentenced CAJAN WELDING & RENTALS, LTD. to a criminal fine of $400,000 and a mandatory special assessment fee of $400.
“Fraud against the U.S. government, regardless of its scope and means of orchestration, is a serious crime. Especially egregious is fraud that undermines the government procurement processes, which erodes public trust,” said U.S. Attorney of the Eastern District of Louisiana Peter G. Strasser. “It is imperative that fair bidding procedures are preserved. This sentencing sends a clear message that our office will vigorously investigate and prosecute all such corruption cases.
“The investigation and prosecution of organizations that cheat, collude, and seek to undermine the integrity of government procurement remain priorities for the division,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The division is dedicated to protecting the public purse from conspiracies that rob taxpayers and critical federal programs — like the Strategic Petroleum Reserve — of the benefits of competition.”
The case is the result of a federal investigation being conducted by the United States Attorney’s Office in the Eastern District of Louisiana, the Department of Justice Antitrust Division’s Washington Criminal II Section, and the Department of Energy’s Office of the Inspector General.
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Lockport Man Going to Prison for Possessing Cocaine with the Intent to Distribute ItRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Gilberto Marchese, 38 of Lockport, NY, who was convicted of possessing with intent to distribute cocaine, was sentenced to serve 46 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Justin G. Bish, who handled the case, stated that, between December of 2015 and March of 2019, the defendant unlawfully possessed with intent to distribute cocaine. In addition, on March 27, 2019, law enforcement officers conducted a search warrant at Marchese’s residence on Grand Street in Lockport and recovered approximately 29 grams of cocaine, a grinder with suspected marijuana residue, and two digital scales.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Niagara County Drug Task Force, under the direction of Niagara County Sheriff Michael Filicetti; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Leader of Newark Drug Trafficking Organization Admits Participation in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role as a member of a heroin trafficking conspiracy in Newark, U.S. Attorney Craig Carpenito announced.
Keith Herd, 32, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to a third superseding indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of and possession with intent to distribute heroin.
Between March and August 2018, Herd and 27 other individuals were charged by complaint with conspiracy to distribute heroin and cocaine base; one individual also was charged with firearms offenses relating to his drug trafficking. On Aug. 20, 2019, a grand jury returned a 22-count third superseding indictment charging Herd and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses; Herd was charged with continuing criminal enterprise for his leadership role in the long-term drug conspiracy. The charges in the third superseding indictment remain pending against two defendants. They are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
Herd was the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC). The organization was comprised of members of the Brick City Brim set of the Bloods street gang.
The investigation revealed that in addition to selling drugs, members of the organization alerted each other to police presence and the presence of rival gang members or drug dealers within NCC. The members also shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other following their numerous arrests. Members of the organization have also engaged in violence and been the subjects of violent crime in connection with their narcotics trafficking activities.
The heroin trafficking conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The drug distribution and possession with intent to distribute count carries a maximum potential penalty of 20 years in prison, and a $1 million fine. Herd’s sentencing is scheduled for April 26, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office in Newark.
Laurel man admits COVID-19 relief fraud with Paycheck Protection ProgramRead the Press Release
BILLINGS – A Laurel man admitted today that he attempted to illegally obtain $35,000 from the Paycheck Protection Program (PPP), a federal loan program created to help businesses struggling during the coronavirus pandemic, Acting U.S Attorney Leif Johnson said.
Matthew Jason Welch, 37, pleaded guilty to wire fraud. Welch faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
The indictment against Welch is the first PPP fraud case to be charged in Montana. The PPP program was created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses struggling with the financial effects of the pandemic.
U.S. Magistrate Judge Timothy J. Cavan presided. Judge Cavan released Welch pending further proceedings. A sentencing date has not yet been set.
In court documents filed in the case, the prosecution said that on April 23, Welch submitted a false PPP loan application to one of the participating lenders in the name of Welch Sole Proprietorship seeking about $35,000 to support payroll, lease and mortgage interest costs and utility costs. The PPP application identified Welch as the 100 percent owner of Welch Sole Proprietorship and was signed by Welch.
Welch falsely certified in the application that he was not “subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction.” Welch was actually subject to felony criminal charges in Montana and Wyoming. Through email and by phone, Welch repeatedly asserted falsely that he did not have any pending criminal charges and was eligible for a PPP loan.
On May 14, in a phone call with a law enforcement agent posing as a representative of the lender, Walsh falsely stated that he did not have any criminal charges pending against him as of the date of the PPP application, April 23. Investigators also later learned that Welch did not plan to use the loan funds to maintain his payroll but rather to pay off a restitution obligation in one of his felony cases.
In a telephone interview with agents, Welch admitted to submitting the application and materials to the lender and confirmed he was in Montana at the time.
Assistant U.S. Attorneys Colin Rubich and Michael Kakuk and William Johnston, assistant chief of the Fraud Section, Criminal Division, of the U.S. Department of Justice, are prosecuting the case. The Small Business Administration and the U.S. Secret Service investigated the case.
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Laredo woman facing criminal charges for attempting to smuggle ammunitionRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 40-year-old Laredo woman for attempting to smuggle goods from the United States, announced U.S. Attorney Ryan K. Patrick.
According to the complaint originally filed in the case, Zaira Coronel attempted to pass through the Lincoln-Juarez Port of Entry in Laredo on Nov. 18. However, authorities conducted a search and allegedly discovered five boxes of ammunition on the floor of her vehicle.
The boxes contained 5,000 rounds of 7.62x39 millimeter ammunition, according to the charges.
If convicted of attempting to smuggle goods from the United States, Coronel faces up to 10 years in federal prison and a maximum fine of up to $250,000.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Kokomo Man Convicted After Five Day Jury TrialRead the Press Release
FORT WAYNE--Bradley M. Cox, 30, of Kokomo, Indiana, was convicted, late yesterday, on all counts of a six-count Superseding Indictment charging him with extortion, production and attempted production of child pornography, and receipt of child pornography, announced United States Attorney Thomas L. Kirsch II.
Sentencing is scheduled for March 18, 2021.
According to evidence presented at trial, Cox, while pretending to be a woman, began communicating on social media with a Rochester, Indiana, man. With nude pictures he had gotten of females, Cox and the Rochester man began to exchange nude pictures. Eventually, Cox threatened publicly to release the nude pictures of the Rochester man unless the man gave Cox the login to his social media account. Once inside the Rochester man’s account, Cox found the nude pictures of several thousand women and girls. Using another account hacked by Cox and belonging to a high school boy, Cox then sent multiple females nude pictures of themselves, threatening to publicize these pictures online if they did not send more sexually explicit pictures and videos. At least two of these were high school girls at the time.
When one of the victims refused Cox’s demands, Cox posted her nude pictures to a pornographic website. Using the hacked social media account, Cox demanded sexually explicit pictures and videos from a pregnant 15-year-old girl, bragging to others online that he had this girl “on the payroll,” which was a reference to her sending him pictures and videos. Cox divulged his scheme to at least one other women that he met online and eventually met in person.
Through forensic analysis of Cox’s work computer and cellular telephone, the Federal Bureau of Investigation identified Cox as the person using the relevant social media accounts, despite Cox’s use of sophisticated concealment efforts. Cox also admitted much of this conduct during later interviews with the FBI.
“Terrorizing young victims through social media and using the anonymity of the internet to hide will never be tolerated by the FBI. This case highlights the perseverance and dedication of our agents and law enforcement partners,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Make no mistake, if you engage in sextortion, we will continue to investigate until we uncover your identity and hold you accountable for the mental anguish and terror you have imposed on your victims and their families.”
This case was investigated by the Federal Bureau of Investigation with assistance from the Fulton County Police Department, the Rochester, Indiana Police Department, and the Peru Indiana Police Department. This case was prosecuted by Assistant United States Attorneys Lesley J. Miller Lowery and Sarah E. Nokes.
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Justice Department Files Race Discrimination Lawsuit Against Housing Authority in OklahomaRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the Housing Authority of the Town of Lone Wolf, Oklahoma, along with its former employees, David Haynes and Myrna Hess, violated the Fair Housing Act and Title VI of the Civil Rights Act of 1964 when they denied housing to an African-American applicant and her young child because of their race.
The lawsuit, filed in the U.S. District Court for the Western District of Oklahoma, stems from the experience of an African-American mother and her then-five-year-old daughter who, in 2015, were living in a shelter and, with the help of the Legal Aid Services of Oklahoma Inc., were seeking affordable housing.
“Denying people housing opportunities because of their race or color is an egregious violation of the Fair Housing Act,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Discrimination by those who receive federal taxpayer dollars to provide housing to lower-income applicants is particularly odious. The Justice Department will not tolerate illegal housing discrimination in any form and we will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race or color.”
“Families have a tough enough time finding decent affordable housing without having their options limited because of their race,” said Anna María Farías, Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and will continue working with the Justice Department to take appropriate action when the nation’s fair housing laws are violated.”
The complaint alleges that when a Legal Aid employee first contacted the Housing Authority on behalf of the woman, the Housing Authority told the employee that units were available and invited the woman to apply. But when the Housing Authority learned from her application that she and her child are black, the Housing Authority denied the application and falsely told the applicant that no apartments were available. Legal Aid then conducted testing confirming that the Housing Authority was discriminating against African-American applicants. As the complaint alleges, defendants told the white tester that there were multiple apartments available to her and her daughter and showed her three vacant apartments. By contrast, the next day, defendants told the African-American tester that no apartments were available for her and her granddaughter and did not show her an apartment. The Housing Authority receives funds from HUD and manages 25 apartments.
The applicant and Legal Aid subsequently filed a complaint with HUD. After an investigation, HUD determined that the defendants had violated the Fair Housing Act and Title VI and referred the matter to the Department of Justice for litigation.
The lawsuit seeks monetary damages for the complainants and a court order barring future discrimination.
Individuals who believe they have been victims of housing discrimination at the Housing Authority of the Town of Lone Wolf should contact the Department of Justice toll-free at 1-833-591-0291 or by email at [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at civilrights.justice.gov.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title VI of the Civil Rights Act of 1964 prohibits discrimination on the ground of race, color, or national origin in programs or activities that receive federal funds. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
The complaint contains allegations of unlawful conduct. The allegations in the complaint must be proven in court.
Illegal Alien Sentenced After Fourth Illegal Reentry into U.S.Read the Press Release
ALEXANDRIA, Va. – A citizen of El Salvador was sentenced today to 21 months in prison and 2 years of supervised release for illegal reentry into the U.S. after removal subsequent to a conviction for an aggravated felony.
According to court documents, Giovanni Omar Medrano-Urrutia, 41, reentered the U.S. after having been removed on four prior occasions between 2005 and 2018. Medrano-Urrutia’s criminal history spans two decades in the U.S. Notably, in January 2000, he was convicted of the aggravated felony of carnal knowledge of a child in Fairfax County. Additionally, on Jan. 28, 2008, and Jan. 12, 2018, respectively, Medrano-Urrutia was convicted of illegal reentry.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Shawn Byers, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Special Assistant U.S. Attorney Viviana Vasiu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-179 and Case No. 1:17-cr-206.
Houston man indicted in Laredo for transporting 138 inside trailerRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 40-year-old Houston man on charges of conspiracy to transport 138 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Joseph Earl Stovall is expected to appear for this arraignment before a U.S magistrate judge in Laredo in the near future.
The charges allege Stovall approached the Border Patrol Checkpoint in Freer driving a tractor trailer on Dec. 4. He was referred to secondary inspection, at which time authorities allegedly discovered a total of 138 individuals, including seven juveniles inside the trailer. All were from various countries including Mexico, Guatemala, El Salvador, Dominican Republic, Honduras, Nicaragua and Ecuador.
Law enforcement allegedly had to break the seal on the doors in order to open the trailer.
The complaint alleges Stovall was hired to drive the vehicle from Laredo to San Antonio via U.S. Highway 59.
If convicted, Stovall faces up to 10 years in prison as well as a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol. Assistance U.S. Attorney Yoona Lim is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Harrison County man indicted for bank robberyRead the Press Release
ELKINS, WEST VIRGINIA – Clint Monroe Utter, of West Milford, West Virginia, is facing a charge of bank robbery, U.S. Attorney Bill Powell announced.
Utter, 43, was indicted today on one count of “Bank Robbery.” Utter is accused of robbing the Summit Community Bank in Salem, West Virginia, of $69,100 on November 17, 2020.
Utter faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking a money judgment in the amount of $69,100.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hampton Man Pleads Guilty to Possession of Methamphetamine with the Intent to Distribute While in Possession of a GunRead the Press Release
A Hampton man who possessed methamphetamine with the intent to deliver, while possessing a gun, pled guilty on November 18, 2020 in federal court in Sioux City.
David Hirsch, age 55, from Hampton, Iowa, was convicted of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Hirsch admitted that on April 16, 2020 he was in possession of methamphetamine, which he intended to distribute. At that time, he also possessed a loaded Glock .45 caliber handgun.
On April 16, 2020, police executed a search warrant at a residence in Franklin County. Upon entry, law enforcement found Hirsch attempting to flush methamphetamine down the toilet. Law enforcement located a loaded Glock .45 caliber handgun on Hirsch. Hirsch has a prior 2002 felony conviction for manufacturing methamphetamine.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hirsch remains in custody of the United States Marshal pending sentencing. For possession with the intent to distribute methamphetamine, Hirsch faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000.00 fine, and 4 years up to life of supervised release following any imprisonment. For possession of a firearm in furtherance of a drug trafficking crime, Hirsch faces a mandatory minimum sentence of 5 years’ imprisonment, which must be served consecutively to the drug charge, and a possible maximum sentence of life imprisonment, a $250,000.00 fine, and up to 3 years of supervised release following imprisonment.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the Franklin County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3019.
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Fort Hood Resident Enters Guilty Plea to Endangering a ChildRead the Press Release
In Waco today, 31-year-old Emily Pait admitted to endangering children when she fired a gun inside her Fort Hood residence, announced U.S. Attorney Gregg N. Sofer.
Appearing before U.S. Magistrate Judge Jeffrey C. Manske, Pait pleaded guilty to one count of endangering a child and one count of deadly conduct. By pleading guilty, Pait admitted that on March 10, 2020, she discharged a pistol inside her residence that was occupied by two children. The bullet then penetrated an interior wall and went into an adjoining residence where her neighbor’s child was located at the time. All of the children are under the age of 15. None of the children were injured.
Pait faces up to 10 years in federal prison. She remains on bond pending sentencing. Sentencing has yet to be scheduled.
Military Police Investigations (MPI) on Fort Hood conducted this investigation. Assistant U.S. Attorney Mark Frazier and Special Assistant U.S. Attorney MAJ Aaron Salter are prosecuting this case on behalf of the government.
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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.
Former UGA Professor Pleads Guilty in Project Safe Childhood InvestigationRead the Press Release
ATHENS, Ga. – A former University of Georgia (UGA) professor who admitted to authorities that he possessed hundreds of images of child pornography enetered a guilty plea in federal court today for his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
James Edward Monogan, III, 39, of Athens, pleaded guilty to one count possession of child pornography before U.S. District Judge C. Ashley Royal. Monogan faces a maximum sentence of 20 years in prison to be followed by a maximum lifetime of supervised release and a $250,000 fine. Monogan will also have to register as a sex offender. A sentencing date has not yet been scheduled. There is no parole in the federal system.
According to the plea agreement, Homeland Security Investigation’s Atlanta Office (HSI-Atlanta) received information in 2019 that KIK user “utbballplaya03” had distributed child pornography to another KIK user in February 2019. KIK, formally known as Kik Messenger, is an internet based instant messaging mobile application. HSI also received a second child pornography distribution complaint for KIK user “texan21225053.” Both KIK usernames belonged to Monogan. On September 5, 2019, HSI, the GBI and the Athens-Clarke County Police Department executed a federal search warrant at the defendant’s residence in Athens, seizing several electronic devices. Monogan’s UGA office was also searched. A forensic review of the defendant’s electronics located 452 images of child pornography and eight videos depicting child sexual exploitation material on his UGA laptop, as well as an additional 119 images of child sexual exploitation material on his cell phone. Some of these images involved minors under the age of 12.
“Monogan actively participated in the evil world of child pornography and brazenly engaged in his criminal behavior using a computer belonging to his employer. He will spend many years inside a federal prison for his crime, ” said Acting U.S. Attorney Leary. “I want to thank our law enforcement partners for tirelessly working to protect the most vulnerable members of our society and holding child sex offenders accountable.”
“Today’s plea is the result of the strong partnership that Homeland Security Investigations has with the Georgia Bureau of Investigation and the Athens-Clarke County Police Department,” said Katrina W. Berger, special agent in charge, Homeland Security Investigations (HSI) Atlanta. “By working together to leverage our respective resources and expertise, we have removed a dangerous child predator from the community.”
“This investigation demonstrates that no matter who you are, you will be held accountable for preying on children. We value our law enforcement partnerships to be able to work together in these type investigations to catch and punish criminals who seek to exploit one of our most vulnerable populations,” said GBI Director Vic Reynolds.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by U.S. Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI), the GBI and the Athens-Clarke County Police Department. Assistant U.S. Attorney C. Shanelle Booker is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Former D.C. Government Employee Sentenced for Distributing FentanylRead the Press Release
ALEXANDRIA, Va. – A former Washington, D.C. government employee with a prior murder conviction was sentenced today to 63 months in prison for distributing fentanyl and illegally possessing multiple firearms.
According to court documents, while employed in the Permitting Department of the D.C. Department of Consumer and Regulatory Affairs (DCRA) in Southwest D.C., Darrell Marcellus Pope, 51, of Clinton, Maryland, regularly sold fentanyl to customers in front of his office building. The DCRA is located within 1,000 feet of Amiden Bowen Elementary School. Over the course of the investigation, Pope sold a total of 87 grams of fentanyl—more than 43,000 potentially lethal doses—to an undercover law enforcement officer and a confidential source.
Pope had a broad network of customers, including several who lived in the Eastern District of Virginia. One of Pope’s customers, identified in court documents as A.D., regularly traveled from Woodbridge to buy heroin and fentanyl from Pope. On March 14, 2019, Pope sold drugs to A.D., who brought them back to Woodbridge. The drugs that Pope sold to A.D. ultimately contributed to the fatal overdose of a Lake Ridge woman.
When Pope was arrested in September 2019, law enforcement executed search warrants at his home and office. In his residence, agents seized three firearms, which Pope is prohibited from possessing because of his prior felony conviction. Also when he was arrested, law enforcement identified Pope’s fentanyl supplier, Ronald Gorham, whom Pope met when both Pope and Gorham were both serving prison sentences for unrelated murder convictions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Jarad L. Phelps, Acting Chief of Prince William County Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-355.
Former Amarillo Banker Pleads Guilty to EmbezzlementRead the Press Release
A former Amarillo banker pleaded guilty for her role in embezzling thousands of dollars from a local bank, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Heather M. Cooper, 40, pleaded guilty to a felony information charging one count of theft, embezzlement, or misapplication by a bank officer or employee on Monday before Magistrate Judge Lee Ann Reno.
According to court documents, Ms. Cooper began working at FirstCapital Bank of Texas in Amarillo in 2012 as a mortgage loan processor where she met with customers at loan closings and guided them through the mortgage and loan process.
From August 2017 to January 2020, Ms. Cooper admitted to making more than 19 fraudulent withdrawals from at least four bank customers accounts. On at least 18 separate occasions, Ms. Cooper signed a withdrawal slip from the bank customer’s account, which she then used to purchase a cashier's check – each exceeding $1,000 in value. Additionally, Ms. Cooper admitted to making a cash withdrawal from a bank customer's account by forging the customer’s signature on the withdrawal slip.
In plea papers, Ms. Cooper also admitted to using a credit card issued by FirstCapital Bank of Texas for personal expenses including payments to a cell phone company and various restaurants.
In total, Mrs. Cooper caused at least $32,171.00 of losses to the bank and its customers. She now faces up to 30 years in federal prison. A sentencing date is set for April 20, 2021 before U.S. District Judge Matthew J. Kacsmaryk.
The FBI and Amarillo Police Department conducted the investigation. Assistant U.S. Attorney Sean Taylor is prosecuting the case.
Five Individuals Charged with Conspiracy to Commit Robberies and Related Offenses in Queens, Staten Island, Suffolk County and New JerseyRead the Press Release
A superseding indictment has been unsealed in federal court in Brooklyn charging John Martin, Brandon Daniels, Lamonte Johnson, Shi Zhen Lin and Corey Mobley with conspiring to commit robberies in Queens, Staten Island, Suffolk County and New Jersey, committing and threatening to commit physical violence in furtherance of a May 4, 2019 home-invasion robbery in Little Neck, Queens, and brandishing a firearm during the Queens robbery. Mobley is also charged with five counts relating to a March 2019 robbery of a drug dealer. Lin was arrested this afternoon and will be arraigned via videoconference tomorrow before United States District Judge Raymond J. Dearie. Daniels was arrested on December 8, 2020 and was ordered detained pending trial. Mobley and Martin, who are in federal custody, were previously arraigned and ordered detained. Johnson is in state custody and will be arraigned at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.
“As our charges allege, the defendants targeted and terrorized numerous victims at gun point, including a family inside their home in Queens where two of the defendants sexually assaulted a woman,” stated Acting United States Attorney DuCharme. “With this prosecution, the defendants’ crime spree has been put to an end. This Office will continue to commit our people and our resources to bringing to justice those who participate in such brutal crimes.” Mr. DuCharme extended his grateful appreciation to the New York State Department of Corrections and Community Supervision, Office of Special Investigations for its assistance in the investigation.
"These defendants, as alleged, terrorized communities from eastern Long Island to New Jersey. But thanks to the dedication of the men and woman of the ATF/NYPD Joint Robbery Task Force, all five now face life sentences in federal prison,”stated ATF Special Agent-in-Charge DeVito.
As set forth in the indictment and other court filings, in May 2019 during the commission of a home invasion robbery in Little Neck, Queens, the defendants allegedly held a group of eight women and children at gunpoint. Mobley and Daniels forced the screaming occupants into a downstairs bedroom, dragging an elderly woman who could not walk and the child she was holding across the floor. Mobley threatened to kill all of the occupants if they did not reveal where money was in the house, and Mobley and Daniels sexually assaulted one of the victims. Although the defendants expected to find tens of thousands of dollars in the home, they found only a few thousand dollars that one victim had set aside as a gift to her family. Mobley and Daniels were later identified by law enforcement through DNA left at the scene. A substantial portion of the crime was recorded on surveillance cameras located inside and outside the home.
The Queens robbery was part of a string of robberies and attempted robberies allegedly committed by the defendants over a three-month period from March to May 2019. Lin’s role was to identify robbery victims for Martin, Mobley and Daniels. Johnson recruited Lin and Martin to participate in the robberies, with the expectation that he would get a share of the proceeds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charged offenses, the defendants face a maximum sentence of life in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel and Michael W. Gibaldi are in charge of the prosecution.
The Defendants:
JOHN MARTIN (also known as “Lil John” and “LJ”)
Age: 48
Brooklyn, New YorkBRANDON DANIELS
Age: 26
Brooklyn, New YorkLAMONTE JOHNSON
Age: 52
Auburn, New YorkSHI ZHEN LIN (also known as “Kevin Lin” and “Kev”)
Age: 29
Maspeth, New YorkCOREY MOBLEY
Age: 50
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-221 (S-3)
Final Defendant Sentenced for Role in Series of Robberies Targeting Marijuana TraffickersRead the Press Release
EUGENE, Ore.—The fifth and final member of a robbery crew that stole drugs and money from marijuana traffickers operating in Oregon in a series of violent robberies was sentenced to federal prison today, announced U.S. Attorney Billy J. Williams.
Marcus Cox, 38, of Eugene, was sentenced to 110 months in federal prison and three years of supervised release after previously pleading guilty to interfering with commerce by robbery and using, carrying, and brandishing a firearm during and in relation to a crime of violence.
The crew’s leader, Jorge Rubio, 37, of Reedsport, Oregon, was sentenced on October 29, 2020 to 121 months in federal prison and five years’ supervised release for the same charges. Three other crew members have also been sentenced for their roles in the robbery scheme. Shawn Dunaway, 39, of Veneta, Oregon and Jason Brooks, 37, of Eugene were each sentenced to 101 months in federal prison. Antonio Vizcaino, 30, of Austin, Texas was sentenced to 71 months in federal prison. All three are subject to three years of supervised release after they complete their prison sentences.
“In a misguided attempt to avoid detection by law enforcement, Jorge Rubio and his gang of thugs preyed on people they believed would not report their crimes. In doing so, they callously threatened the lives of their targets and risked the safety of the entire community,” said U.S. Attorney Williams. “These violent crimes are the direct result of an illegal and thriving marijuana black market. I commend the hard work and dedication of law enforcement for bringing this gang to justice.”
“These defendants targeted drug dealers while hiding in the dark underworld of illegal marijuana production and distribution. Using death threats and violent attacks against their targets, they stole weapons, tens of thousands of dollars in cash, and hundreds of thousands of dollars in drugs,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents, in March 2017, law enforcement began investigating a group using assault rifles and other firearms to violently rob individuals set up to sell or purchase large quantities of marijuana or invest in marijuana operations in Oregon. On March 6, 2017, the crew robbed two individuals who had traveled from Austin to Eugene to purportedly meet with Rubio to discuss investing in a marijuana grow operation and to purchase marijuana for resale in Texas. One of the robbery targets, who had purchased pound quantities of marijuana from Rubio several times prior, traveled to Oregon with approximately $50,000 in cash.
Rubio arranged to meet the two individuals at a motel in Eugene. Shortly thereafter, Dunaway, Cox, and Vizcaino barged into the room with guns drawn and ordered the targets onto the floor. When one of the individuals tried to fight back, Vizcaino struck him in the head with his firearm. The assailants bound the individuals with zip ties and duct tape, and demanded to know where the money was located. They searched the room and found the $50,000 hidden under a seat cushion. At one point during the robbery, Dunaway told the targets that he was going to kill them. The crew left the individuals restrained in the motel room. After the targets freed themselves and summoned help, the target assaulted by Vizcaino was transported by Life Flight to Portland for medical treatment.
In August 2017, the crew orchestrated two separate robberies. First, the crew set up a group of individuals who sought to do business with Rubio. As part of the transaction, Dunaway instructed the individuals to follow him to a marijuana grow. On the way, Cox and an accomplice robbed the targets at gun point, seizing their cash, wallets, cell phones, and keys. The individuals were then abandoned in a nearby field after being warned not to cooperate with law enforcement.
In a second heist, Brooks posed as a marijuana buyer from New York who knew Rubio. Brooks agreed to purchase 200 pounds of marijuana and up to 15 pounds of a marijuana concentrate known as “crumble” from drug traffickers in Medford, Oregon for $260,000. Instead of purchasing the drugs, Brooks, Dunaway, and Vizcaino robbed the individuals at gun point in a Medford-area residence, stealing the drugs, a handgun, and the targets’ wallets and cell phones.
In September 2017, Dunaway and Cox robbed another individual who believed they were arranging a marijuana deal with Rubio. While meeting in a car, Dunaway beat the individual as Cox, from the backseat, held him in a choke hold at gun point and threatened to kill him. After Dunaway and Cox stole the individual’s money, phone, and 43 pounds of marijuana, the individual jumped from the moving vehicle to escape the assault. Dunaway later led police on a high-speed chase and crashed the vehicle. Dunaway and Cox tried to flee on foot, but were arrested nearby.
This case was investigated by the FBI, U.S. Drug Enforcement Administration, Eugene Police Department, and Austin Police Department. It was prosecuted by Joseph Huynh; Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Judge Sentences Chicago Man to More Than Eight Years in Prison for Illegally Possessing Loaded Gun on City StreetRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than eight years in federal prison for illegally possessing a loaded semi-automatic handgun in the city’s North Lawndale neighborhood.
MARKELL THOMAS, 35, illegally possessed the firearm in the 1300 block of South Spaulding Avenue on the morning of Feb. 5, 2019. Chicago Police officers observed Thomas holding the gun and attempted to arrest him, but he fled in a vehicle. During the pursuit, Thomas tossed the gun out of the car. He later exited the vehicle and was arrested in the 2900 block of West Arthington Street, approximately one mile from where the chase began. Police recovered the handgun along a sidewalk in the 3100 block of West Fillmore Street.
As a four-time convicted felon, Thomas was not legally allowed to possess a firearm.
Thomas pleaded guilty in July to one count of illegal possession of a firearm. In a plea agreement, Thomas admitted that he also illegally possessed a rifle on Sept. 29, 2018, at a gun range in Lombard, Ill.
U.S. District Judge Robert W. Gettleman on Tuesday imposed a 100-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance.
“Defendant’s actions on that cold February day put at risk not only his own well-being but also the safety and well-being of the officers who pursued him, as well as dozens of other citizens of the Northern District,” Assistant U.S. Attorney Aaron R. Bond argued in the government’s sentencing memorandum. “Such actions by defendant demonstrate a complete lack of respect for not only the law but also the community around him, especially the law-abiding citizens who must continually deal with the plague and despair that illegal firearms bring to their streets, schools, friends, family, and neighbors.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Grand Jury Indicts Two Buffalo Men on Cocaine Conspiracy ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Juan Padua, 33, and Michael Vasquez, 24, both of Buffalo, NY, with narcotics conspiracy and attempting to possess with intent to distribute 500 grams or more of cocaine. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the indictment and a previously filed complaint, the U.S. Postal Inspection Service (USPIS) intercepted a U.S. Postal Service Priority Express Mail parcel shipped from Puerto Rico and addressed to an apartment in which defendant Padua resided. The box was turned over the Buffalo Office of the Drug Enforcement Administration.
On July 22, 2020, investigators executed a federal search warrant on the box, which contained toys, coloring books, paper plates, napkins, and a Nickelodeon slime box. The slime box, which was wrapped in red wrapping paper with multi-colored stars and Spanish writing, contained a large, white, brick-like substance that was comprised of a loosely packed white powder. Field tests indicated the presence of both cocaine and fentanyl.
On July 23, 2020, a transmitting device was installed in the parcel and a controlled delivery was conducted. A short time later, investigators received a tone indicating that the parcel was opened. Investigators then executed a search warrant at the apartment in which Padua resided. The parcel was found in the rafters in the attic. Additional search efforts led to the recovery of the USPIS transmitting device, which was broken and recovered from the roof top of the rear porch at the premises. The defendants were taken into custody.
The defendants were arraigned before U.S. Magistrate Judge Michael J. Roemer. Defendant Padua was detained; defendant Vasquez was released on conditions.
The indictment is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fall River Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – A Fall River woman was sentenced today in federal court for stealing Social Security disability benefits.
Gloria Camara, 58, was sentenced by U.S. District Court Judge Indira Talwani to time served and three years of supervised release, with the first five months to be served on home confinement. She also was ordered to pay restitution to the Social Security Administration (SSA) in the amount of $84,222. In August 2020, Camara pleaded guilty to one count of theft of public funds and one count of making a false statement.
Camara began receiving Social Security disability benefits in 1992. In November 2009, she began working as a caregiver, but she did not report her income to the SSA. Instead, during periodic eligibility reviews, including a review on April 20, 2017, Camara falsely told Social Security that her only income consisted of three months of unemployment compensation benefits in 2008, and sporadic wages from two companies between 2003 and 2011. Because she did not report her earnings as a caregiver, Camara stole approximately $84,222 in Social Security benefits from November 2009 through October 2019.
United States Attorney Andrew E. Lelling and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Espan͂ola man pleads guilty to embezzlement and theft from the Pueblo of San IldefonsoRead the Press Release
ALBUQUERQUE, N.M. – Thomas McIntosh, 33, of Española, New Mexico, pleaded guilty in federal court in Albuquerque on Dec. 10 to embezzlement and theft from Indian tribal organization.
According to his plea agreement, McIntosh admitted he worked at the Totavi Station on the San Ildefonso Pueblo San Ildefonso Pueblo where his responsibilities included administration of New Mexico State Lottery sales. Between Mar. 19 and April 4, McIntosh intentionally and unlawfully accessed lottery tickets in order to determine the winning tickets, purchased them, and attempted to claim the winnings for himself. McIntosh also admitted he intentionally altered business records and continued to embezzle winnings from cash registers and the New Mexico State Lottery.
McIntosh faces up to one year in prison. His plea agreement calls for restitution, a mandatory fine, and probation.
The Albuquerque office of the Bureau of Indian Affairs (BIA) investigated this case. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
Dorchester Woman Sentenced for Stealing Social Security and SNAP BenefitsRead the Press Release
BOSTON – A Dorchester woman was sentenced today for stealing over $80,000 in Social Security and Supplemental Nutrition Assistance Program (SNAP) benefits.
Phaedra M. Sheets, 46, was sentenced by U.S. District Court Judge Patti B. Saris to eight months of home confinement and three years of supervised release. Sheets also was ordered to pay restitution of $85,559 to the Social Security Administration (SSA) and to the Massachusetts Department of Transitional Assistance. In September 2020, Sheets pleaded guilty to two counts of theft of public funds.
Sheets’ mother was receiving Social Security benefits and SNAP benefits at the time of her death in November 2009. Her death was never reported to the SSA nor to the Massachusetts Department of Transitional Assistance, and the agencies continued to pay monthly benefits on her behalf. When SSA attempted to contact Sheets’ mother to perform a review of her benefits claim, Sheets posed as her mother and directed SSA to deposit her mother’s benefits into various bank accounts, from which Sheets withdrew the funds. Sheets also impersonated her deceased mother in interactions with the Department of Transitional Assistance and used her mother’s SNAP card to make purchases for nearly nine years after her death.
From December 2009 to September 2018, Sheets stole approximately $71,636 in Social Security benefits and approximately $13,923 in SNAP benefits.
United States Attorney Andrew E. Lelling; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Cumberland County Man Admits Conspiring to Distribute Opioids, Launder Millions of Dollars in Drug ProceedsRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man admitted today conspiring to illegally distribute over 1 million prescription pills and launder drug trafficking proceeds through the use of fictitious shell companies, U.S. Attorney Craig Carpenito announced.
Alton Chatmon, 50, of Bridgeton, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to distribute controlled substances, including Tramadol, a synthetic opioid, and butabital; and one count of conspiring to commit money laundering.
According to documents filed in this case and statements made in court:
Chatmon is a former licensed pharmacist who operated two pharmacies in southern New Jersey until 2015. In 2015, after a DEA inspection of his pharmacies showed violations of regulations for the handling of controlled substances, Chatmon voluntarily surrendered his DEA registration, which had allowed him to process and fill prescriptions for controlled substances. In 2016, the State of New Jersey suspended Chatmon’s pharmacist license for two years.
From January 2017 until August 2018, Chatmon obtained large quantities of Tramadol pills from suppliers outside the United States by having the pills shipped to numerous U.S. Post Office boxes that he directed a conspirator to open in the names of fictitious businesses. Chatmon received customer orders from other conspirators that had been placed on internet sites or over the phone. He and his conspirators repackaged the Tramadol, a Schedule IV controlled substance, and butabital, a Schedule III controlled substance, and mailed the pills to customers to fill their orders. Chatmon admitted filling the orders for the customers of the unlicensed online pharmacy, knowing that the customers did not have valid prescriptions, that he was not a licensed pharmacist at the time, and without regard for whether the customers had any legitimate medical need for these medications. In exchange for the pills provided, the customers provided Chatmon and other conspirators with U.S. Postal money orders, which were deposited into bank accounts that Chatmon and his conspirators controlled. The bank accounts were set up using shell companies designed to disguise the source and control of the funds. Chatmon and his conspirators also sent interstate and international wire transfers totaling hundreds of thousands of dollars to their drug suppliers in both India and in other states around the United States to pay for the pills supplied to them.
Chatmon admitted that the drug conspiracy involved the illegal distribution of over 600,000 Tramadol pills and over 1 million Fioricet pills (containing butabital). He also admitted that the money laundering conspiracy involved the laundering of over $1.5 million in drug trafficking proceeds.
Chatmon faces a maximum penalty of 30 years in prison and a fine of up to $750,000. Sentencing is scheduled for April 19, 2021.
U.S. Attorney Craig Carpenito credited inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon E. Wood; special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Michael Montanez; diversion investigators of the Drug Enforcement Administration, Newark Field Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, under the direction of Special Agent in Charge Mark S. McCormack; and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin of the Camden Division.
Convicted Felon Sentenced to Additional 15 Months in Prison for Escape from Halfway HouseRead the Press Release
NEWARK, N.J. –– A convicted felon was sentenced today to an additional 15 months in prison for escaping from a halfway house, U.S. Attorney Craig Carpenito announced.
Joseph Reid, 40, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of escape from federal custody. Judge Cecchi imposed the sentence today by videoconference.
According to the documents filed in this case and statements made in court:
On Jan. 26, 2010, Reid was sentenced to 151 months’ imprisonment following his conviction for possession with intent to distribute cocaine. On Sept. 17, 2019, Reid was transferred to the custody of the Toler House Residential Reentry Center, a halfway house located in Newark. On Dec. 31, 2019, after failing to return to the Toler House on an approved day pass, Reid was charged with escape.
The additional 15 months in prison for which Reid was sentenced today will run consecutively to the remainder of his original sentence for drug distribution.
U.S. Attorney Carpenito credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Connecticut Man Sentenced to Five Years Imprisonment for Distribution of Heroin, Fentanyl, and Crack Cocaine in the Manchester, Vermont AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Torrie Smith, 31, was sentenced to five years imprisonment by U.S. District Court Judge William K. Sessions III. Smith previously pled guilty to possession with intent to distribute, heroin, cocaine, and crack cocaine. Judge Sessions also sentenced Smith to a four-year term of federal supervised release, which will begin after Smith completes his five-year prison term. At the time of his arrest, in April 2019, Smith resided in both Manchester, Vermont and Hartford Connecticut.
According to court records, on three separate instances, law enforcement seized significant quantities of drugs from cars in which Smith was either driving or was a passenger:
(1) November 27, 2018 Traffic Stop (Sunderland, Vermont): Vermont State Police seized 39 grams of cocaine powder, 8 grams of cocaine base, 99 bags containing fentanyl (3 grams), 203 pills, including 22 Oxycodone pills.
(2) January 25, 2019 Traffic Stop (Manchester, Vermont): Manchester Police seized about 100 grams of cocaine base, 45 grams of cocaine powder, 396 bags containing fentanyl (9 grams), 8 grams heroin, and .2 grams methamphetamine.
(3) March 27, 2019 Traffic Stop (Chester, Vermont): Chester Police seized about 46 grams of cocaine base, 102 grams of cocaine powder, 202 Oxycodone pills, and $1,860.
The total seized from these seizures, including additional drugs seized at the time of Smith’s arrest, was approximately 160 grams of crack cocaine, 190 grams of powder cocaine, 495 bags of fentanyl (12 grams), eight grams of heroin, and miscellaneous pills, including 224 Oxycontin pills.
According to the government’s allegations, Smith made several trips to the Hartford, Connecticut area to pick up drugs and then returned to the Manchester, Vermont area where he sold these drugs. The government stated in its Sentencing Memorandum that the five-year sentence was justified “to protect the public from the defendant’s relentless drug dealing.”
This case was investigated by the Vermont Drug Task Force, the FBI, the Vermont State Police (Shaftsbury Barracks), the Manchester Police Department, and the Chester Police Department. The government is represented by Assistant U.S. Attorney Joe Perella. Smith is represented by Michael Desautels, Esq. of the Office of the Federal Public Defender in Burlington.
Co-Founder of Cryptocurrency Company Who Defrauded Ico Investors Sentenced to PrisonRead the Press Release
Ilan T. Graff, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ROBERT JOSEPH FARKAS, a/k/a “RJ,” was sentenced on December 15 to one year and one day in prison, in connection with his participation in a scheme to induce victims to invest more than $25 million dollars’ worth of digital funds in Centra Tech, Inc. (“Centra Tech”), a Miami-based company he co-founded and that purported to offer cryptocurrency-related financial products. FARKAS previously pled guilty to conspiring to commit securities fraud and wire fraud in connection with his and his co-conspirators’ use of material misrepresentations and omissions to solicit investors to purchase securities, in the form of digital tokens issued by Centra Tech, through an initial coin offering (“ICO”) beginning in approximately July 2017. U.S. District Judge Lorna G. Schofield imposed the sentence in Manhattan federal court.
Mr. Graff said: “Farkas and his co-conspirators created fictitious executives and fabricated business relationships with legitimate institutions to dupe investors into handing over millions of dollars for a fraudulent ICO. We will continue to aggressively pursue frauds like this one, whether they involve traditional securities or newer financial instruments and crypto-assets.”
According to statements in the Superseding Information, and other filings and statements at public court proceedings in the case:
In or about July 2017, FARKAS, along with co-defendants Sohrab Sharma and Raymond Trapani, founded a company called Centra Tech that claimed to offer cryptocurrency-related financial products, including a purported debit card, the “Centra Card,” that supposedly allowed users to make purchases using cryptocurrency at establishments accepting Visa or Mastercard payment cards. From approximately July 30, 2017, through October 5, 2017, FARKAS and his co-defendants solicited investors to purchase unregistered securities, in the form of digital tokens issued by Centra Tech (“Centra tokens” or “CTR tokens”), through a so-called “initial coin offering” or “ICO.” As part of this effort, FARKAS and his co-defendants represented, in oral and written offering materials that were disseminated via the internet: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University; (b) that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard; and (c) that Centra Tech had money transmitter and other licenses in 38 states, among other claims. Based in part on these claims, victims provided millions of dollars’ worth of digital funds in investments for the purchase of Centra Tech tokens. In or about October 2017, at the end of Centra Tech’s ICO, those digital funds raised from victims were worth more than $25 million. At certain times in 2018, as the defendants’ fraud scheme was ongoing, those funds were worth more than $60 million.
The claims that FARKAS and his co-conspirators made to help secure these investments, however, were false. In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team were fictional people who were fabricated to dupe investors, Centra Tech had no such partnerships with Bancorp, Visa, or Mastercard, and Centra Tech did not have such licenses in a number of those states.
In 2018, this Office and the Federal Bureau of Investigation (“FBI”) seized, pursuant to judicially authorized seizure warrants, 100,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech during its ICO based on fraudulent misrepresentations and omissions. The United States Marshals Service sold the seized Ether units for approximately $33.4 million earlier this year. Following entry of a final order of forfeiture, these funds and other forfeited fraud proceeds will be available for potential use in a remission program that the Department of Justice intends to create to compensate victims of the Centra Tech fraud.
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FARKAS, 34, of Bay Harbor Islands, Florida, was also sentenced to three years of supervised release. He was further ordered to forfeit $347,062.58 and a Rolex watch purchased with fraud proceeds.
Mr. Graff praised the investigative work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer, Negar Tekeei, and Daniel Loss are in charge of the prosecution.
Clarksburg man indicted on drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jo-El Rene Torres, of Clarksburg, West Virginia, is facing a drug charge, U.S. Attorney Bill Powell announced.
Torres, 36, was indicted on one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Torres is accused of having heroin and fentanyl in May 2020 in Upshur County.
Torres faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force, the West Virginia State Police, the Upshur County Sheriff’s Office, and the Buckhannon Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chatham County man sentenced to federal prison after admitting he produced child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to nearly 30 years in federal prison for producing child pornography.
David Tang, 34, of Port Wentworth, was sentenced to 350 months in federal prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Tang also was ordered to pay $2 million in restitution to the victims in the case, and after completion of his prison term must serve 20 years on supervised release and register as a sex offender. There is no parole in the federal system.
“The most vulnerable members of our community are safer today because David Tang and his co-defendants are locked away,” said U.S. Attorney Christine. “We’re grateful for those who reported these horrific crimes, and for the law enforcement agencies who brought these predators to justice.”
As described in court documents and testimony, Tang and a co-defendant, Melanie Smith, a/k/a “Melanie Small,” 31, of Rincon, Ga., produced sexually explicit videos of minor children that were later shared with others by Holly Clayton, 34, of Port Wentworth, Ga. Smith later pled guilty to Production of Child Pornography and is serving a 360-month sentence in federal prison, while Clayton pled guilty to Distribution of Child Pornography and is serving a 144-month federal prison sentence.
All three defendants also face related state charges.
“This sentencing not only removes a serial predator from our community, it also sends a message to others engaged in this filth that we are serious about finding, arresting and prosecuting them,” said Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
The case was investigated by Homeland Security Investigations, the Savannah Police Department and the Effingham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo and Special Assistant U.S. Attorney Katelyn Semales.
Catonsville Drug Dealer Sentenced to 10 Years in Federal Prison for Conspiring to Distribute Fentanyl and Heroin in BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Jermol McCoy, age 37, of Catonsville, Maryland, to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and fentanyl.
The sentence was 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 (DEA), Baltimore District Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police (MSP); Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services (DPSCS); and Baltimore City State’s Attorney Marilyn Mosby.
According to his guilty plea, from at least 2018 through 2019, McCoy conspired with others to distribute heroin, fentanyl, and crack cocaine in and around Baltimore. During the investigation, law enforcement intercepted phone calls and text messages in which McCoy made plans to distribute drugs, spoke about the hierarchy of the drug trafficking organization, and discussed methods to avoid detection by law enforcement.
On November 21, 2019, law enforcement executed a search warrant at McCoy’s apartment in Catonsville, which he used to manufacture and distribute controlled substances. Law enforcement recovered 4.9 grams of fentanyl in a plastic bag behind the microwave, cutting agent, and drug paraphernalia, including a kilogram press, digital scales, three boxes of plastic baggies, and cellular phones. In addition, law enforcement recovered a loaded 9mm semi-automatic pistol concealed in a bag in the bedroom. McCoy is prohibited from possessing a firearm or ammunition as a result of a previous felony conviction.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA, the ATF, the Baltimore Police Department, MSP, DPSCS and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Michael C. Hanlon, who prosecuted the case.
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Canadian citizen indicted in Brownsville for sending powder-filled envelopes to local authoritiesRead the Press Release
BROWNSVILLE, Texas – A Brownsville federal grand jury has indicted a Canadian woman for prohibitions with respect to biological weapons and making threats via interstate commerce, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Combs of the FBI.
Pascale Cecile Veronique Ferrier aka Jane Ferrier, 53, is currently in custody in Washington, D.C., on separate, but similar charges. She is expected to make her initial appearance in Brownsville at a future date.
The grand jury returned the indictment yesterday charging Ferrier with eight counts each of prohibitions with respect to biological weapons and making threats via interstate commerce.
Between Sept. 14-21, Ferrier allegedly sent envelopes containing letters and a powdery substance to multiple local agencies. These included the El Valle Detention Facility, Hidalgo County Adult Detention Center, Brooks County Detention Center, Hidalgo County Sheriff’s Office, Brooks County Sheriff’s Office and Mission Police Department, according to the charges.
The substance sent is alleged to be Ricin.
If convicted, Ferrier faces up to life for the biological weapons charges, while threats via interstate commerce carries a potential five-year sentence. Both convictions also carry a maximum $250,000 possible fine.
The FBI conducted the investigation with the assistance of Immigration and Customs Enforcement’s – Office of Professional Responsibility; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; police departments in Raymondville, Pharr and Mission; El Valle Detention Facility;
Fire departments in Harlingen and Brooks County; Hidalgo County Sheriff’s Office; Brooks County Detention Center; and Texas Department of State Health Services. Assistant U.S. Attorneys David A. Coronado, David A. Lindenmuth and Alamdar Hamdani are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Canadian Fashion Executive Peter J. Nygard Charged with Sex Trafficking and Racketeering OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a nine-count indictment charging Canadian fashion executive PETER J. NYGARD, 79, with racketeering, sex trafficking, and related crimes arising out of a decades-long pattern of criminal conduct involving at least dozens of victims in the United States, the Bahamas, and Canada, among other locations.
NYGARD was taken into custody on December 14, 2020, in Winnipeg, Manitoba, Canada by Canadian authorities after the United States requested Canada issue a Provisional Arrest Warrant pursuant to the extradition treaty between the two countries.
The case has been assigned to United States District Judge Paul G. Gardephe.
If you believe you are a victim of the sexual abuse perpetrated by Peter Nygard, please contact the FBI at 1-800-CALL FBI, and reference this case.
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
From at least in or about 1995, up to and including in or about 2020, PETER J. NYGARD was the leader and founder of an international clothing design, manufacturing, and supply business headquartered in Winnipeg, Canada, with major offices and warehouses in the United States, including New York City and California. NYGARD operated a constellation of corporate entities organized in various countries (the “Nygard Group”). Over this 25-year period, NYGARD used the Nygard Group’s influence, as well as its employees, funds, and other resources, to recruit and maintain adult and minor-aged female victims for NYGARD’s sexual gratification and the sexual gratification of his friends and business associates. NYGARD and his co-conspirators, including Nygard Group employees, used force, fraud, and coercion to cause women and minors to have sex with NYGARD and others.
NYGARD frequently targeted women and minor-aged girls who came from disadvantaged economic backgrounds and/or who had a history of abuse. He controlled his victims through threats, false promises of modeling opportunities and other career advancement, financial support, and by other coercive means, including constant surveillance, restrictions of movement, and physical isolation. NYGARD forcibly sexually assaulted some of his victims. Other victims were forcibly assaulted by NYGARD’s associates or drugged to ensure their compliance with his sexual demands.
NYGARD maintained personal and quasi-professional relationships with certain of his victims, whom he referred to as “girlfriends” or “assistants.” NYGARD required these “girlfriends” to travel and to stay with him regularly; to engage in sexual activity at his direction (including with NYGARD, with each other, and with others); and to recruit new women and minor-aged girls for NYGARD to have sex with. NYGARD controlled these “girlfriends” through a variety of means, including force, fraud, and coercion. At times, NYGARD and his associates provided illegal drugs and alcohol to “girlfriends” before sexual activity and threatened or berated “girlfriends” if they did not agree to participate. NYGARD sometimes forcibly assaulted “girlfriends” who did not comply with NYGARD’s sexual demands – or caused others to do so. NYGARD dictated the daily activities of “girlfriends” and the details of their appearance. “Girlfriends” were also under constant surveillance by NYGARD and his associates and were not permitted to leave premises without NYGARD’s express permission.
NYGARD used various tools to recruit women and minors for sex, including:
- Events hosted at NYGARD’s properties in Marina del Rey, California and in the Bahamas, including so-called “Pamper Parties,” named for the free food, drink, and spa services that NYGARD made available. NYGARD frequently used a “girlfriend” or another employee to approach a chosen woman or girl to indicate his interest in sex. NYGARD engaged in sexual activity with the victim on the premises and paid her cash. Some unwilling participants, including minors, were drugged to force their compliance with his sexual demands. Other victims had no advance warning of NYGARD’s interest in sexual activity before being lured to a secluded area of the property where NYGARD used physical force and/or psychological pressure to coerce sex.
- Sex and “swingers” clubs, where NYGARD directed and pressured “girlfriends” through manipulation, intimidation, degradation, threats and, on occasion, force, to engage in sex with other men in order to facilitate NYGARD having sex with other women and for his own sexual gratification.
- Sexual “swaps” with male friends and business associates, who would bring NYGARD a “date” for sex in exchange for sexual access to one of NYGARD’s “girlfriends.” NYGARD did not inform “girlfriends” in advance that he would trade them for sex and often used manipulation, intimidation, degradation, and threats to ensure compliance.
NYGARD paid his victims for commercial sex using Nygard Group funds, including by putting “girlfriends” on the payroll of Nygard Group entities as “models,” “assistants,” or in other positions. NYGARD also used the façade of legitimacy his fashion business created – as well as the Nygard Group’s business operations, reputation, and resources – to facilitate and conceal his crimes in other ways. Among other things, NYGARD used the promise of modeling and other fashion industry jobs to lure victims, Nygard Group money to fund “Pamper Parties,” and Nygard Group employees to recruit potential victims to attend those parties, including screening attendees for their physical appearance to confirm that NYGARD would find them attractive, and maintaining a register of Pamper Party attendees’ personal information, documenting their names, contact information, weight, and physical measurements. NYGARD also used Nygard Group employees and funds to intimidate, threaten, and corruptly persuade individuals who alleged that he was engaged in sexual assault and sex trafficking, including by paying witnesses for false statements and affidavits, threatening witnesses with arrest, prosecution, and reputational harm, and attempting to cause reputational harm and discredit potential witnesses by disseminating false or embarrassing information.
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Ms. Strauss praised the outstanding investigative work of the FBI and the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacqueline C. Kelly, Allison Nichols, and Celia V. Cohen are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
California man sentenced to prison for trafficking meth to MontanaRead the Press Release
MISSOULA — A California man who admitted mailing methamphetamine and other drugs to Montana for distribution and wiring drug proceeds back to California was sentenced today to six years in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Oscar Noe Celio Luna, 32, of Bakersfield, CA, pleaded guilty on Sept. 30 to conspiracy to possess with intent to distribute controlled substances and to conspiracy to commit money laundering.
U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents filed in the case that law enforcement learned Luna was mailing drugs from California since at least 2017. Law enforcement made controlled buys of drugs, including more than 500 grams of meth, from Luna. One pound of meth is 453 grams. In April, Luna sent 466 grams of 100 percent pure meth and 47.7 grams of heroin to Montana. The investigation also determined that Luna wired drug proceeds, including about $35,360 from Butte to California, to further promote drug trafficking.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, the Helena Police Department, the Missouri River Drug Task Force and the Montana Division of Criminal Investigation.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Bullhead Man Sentenced for Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota, man convicted of three counts of Child Abuse was sentenced on December 14, 2020, by Judge Charles B. Kornmann, U.S. District Court.
Tyson Keepseagle, age 33, was sentenced to 30 months in federal prison on each count, to run concurrently, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $300.
Keepseagle was indicted by a federal grand jury on May 14, 2019. He was convicted on July 10, 2020, following a three-day jury trial in Aberdeen, South Dakota.
The convictions stem from incidents between June 1, 2018, and August 12, 2018, when three child victims were living with Keepseagle and he abused them, leaving them with bruises and swelling. This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorneys Kirsten Jasper and Kirk Albertson prosecuted the case.
Keepseagle was immediately turned over to the custody of the U.S. Marshals Service.
Brockton Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a tax preparation business in Brockton pleaded guilty today to preparing false tax returns for others as well as filing a false tax return for himself.
Jose Miguel Spinola, 51, pleaded guilty to two counts of preparing false tax returns and one count of filing a false tax return. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 23, 2021. In June 2020, Spinola was charged by indictment.
On numerous occasions between 2014 and 2017, Spinola prepared and filed income tax returns for clients that contained false, inflated and incorrect information on his clients’ IRS Form 1040, U.S. Individual Income Tax Returns and attached schedules. Spinola added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses and unreimbursed employee business expenses, including claimed meals and entertainment, business miles and work apparel. By inflating Schedule A deductions, Spinola decreased his clients’ taxable income and effectively increased the clients’ tax refunds. Spinola informed his clients of the total tax refund they would receive from the IRS without telling the clients about the false, inflated, or ineligible expenses Spinola deducted from his clients’ income tax returns.
Each count of aiding the preparation of false tax returns and filing false tax returns provides for a sentence of up to three years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Brainerd Man Pleads Guilty to Minneapolis Police Third Precinct ArsonRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DYLAN SHAKESPEARE ROBINSON, 23, to one count of conspiracy to commit arson at the Minneapolis Police Department’s Third Precinct. ROBINSON entered his guilty plea today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. A sentencing date will be scheduled at a later time.
According to the ROBINSON’s guilty plea and documents filed with the court, on the night of May 28, 2020, ROBINSON went to the Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. ROBINSON, along with other co-conspirators, breached the fence and entered the Third Precinct building. ROBINSON, assisted by an unidentified co-conspirator, lit a device held by the unidentified co-conspirator who threw it toward the Third Precinct building with the intent that it would start a fire or fuel an existing fire.
On November 19, 2020, co-conspirator Bryce Michael Williams plead guilty to one count of conspiracy to commit arson for his role in the arson at the Third Precinct building.
This case is the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
Defendant Information:
DYLAN SHAKESPEARE ROBINSON, 23
Brainerd, Minn.
Convicted:
- Conspiracy to commit arson, 1 count
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Baltimore Felon Pleads Guilty to Federal Charge for his Participation in a Fentanyl Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Thomas Corey Crosby, age 51, of Woodlawn, Maryland, pleaded guilty today to conspiracy to distribute controlled substances, specifically, 40 grams or more of fentanyl.
The guilty plea was 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.
According to his guilty plea, from at least May 2020 through August 2020, Crosby participated in a conspiracy to distribute illegal narcotics, including heroin and fentanyl.
Beginning in May 2020, investigators began wiretapping a cell phone known to be used by a co-conspirator, which revealed that the co-conspirator was operating an open-air drug market (commonly called a “drug shop”) that sold cocaine, heroin, and fentanyl, in Northwest Baltimore City in the area of Palmer and Spaulding Avenues and that the co-conspirator was communicating with Crosby regarding the drug business. Investigators also obtained authorization to intercept a phone used by Crosby. Investigation revealed that Crosby and the co-conspirator communicated approximately every 7 to 14 days concerning the sale of narcotics, including heroin and fentanyl. Crosby and the co-conspirator spoke in code during these calls, but it was clear that they were discussing the distribution of narcotics. After these conversations, Crosby and his co-conspirator would meet at a gas station, located at the intersection of Druid Park Avenue and Liberty Heights in Baltimore, where Crosby supplied the co-conspirator with drugs. Investigators conducted surveillance on several of these meetings and obtained video surveillance from the gas station.
On August 9, 2020, law enforcement executed a vehicle stop on the co-conspirator’s vehicle after Crosby had met the co-conspirator at the gas station, where Crosby was seen placing an item in the center console area of the vehicle. During a search of the vehicle, investigators recovered over 100 grams of fentanyl from a bag inside the center console of the vehicle. After this traffic stop, the co-conspirator immediately called Crosby and the pair then met at the same gas station. After this additional meeting, Crosby disposed of his cell phone, which investigators had obtained authorization to intercept and track. Crosby distributed the 100 grams of fentanyl to the co-conspirator.
On August 14, 2020, investigators executed a series of search warrants at locations related to the investigation, including a residence in the 2500 block of Park Heights Terrace in Baltimore, a location used by Crosby to manufacture and store drugs. Inside the residence, investigators recovered fentanyl, as well as drug paraphernalia and packaging material including: sifters, razor blades, plastic baggies, a digital scale, and cutting agents. Investigators also executed a search warrant at Crosby’s residence, where they recovered $134,499 in cash, which Crosby admitted constituted proceeds from his drug trafficking activities.
Crosby admitted that he distributed over 160 grams of fentanyl during his participation in the conspiracy,
As part of his plea agreement, Crosby will forfeit $134,499 in cash, which was seized on August 14, 2020. Additionally, Crosby acknowledges that he was previously convicted in federal court for possession with intent to distribute 100 grams or more of heroin.
Crosby and the government have agreed that, if the Court accepts the plea agreement, Crosby will be sentenced to 10 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 11, 2021 at 10:00 a.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who are prosecuting the case.
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Augusta Man Sentenced for Firearm ChargesRead the Press Release
BANGOR, Maine: An Augusta man was sentenced today in federal court for two counts of making false statements to a federally licensed firearms dealer, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Keegan Hale, 23, to time served and three years of supervised release. Hale entered custody when he pleaded guilty on March 10, 2020.
According to court records, Hale purchased firearms for another individual on two occasions in September and October 2018. On each occasion, he completed and signed a form certifying he was the actual purchaser of the firearm, when he was actually purchasing the guns for anther individual.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Augusta Police Department investigated the case.
This case was 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.
Asheville Man Is Sentenced to Seven Years for the Armed Robbery of A Local RestaurantRead the Press Release
ASHEVILLE, N.C. – Curtis Andrew Wallace, Jr., 30, of Asheville, was sentenced to 84 months in prison today for the armed robbery of an area restaurant, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Wallace to serve three years under court supervision after he is released from prison.
Chief David Zack of the Asheville Police Department (APD) joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on December 30, 2019, APD officers responded to a call at the Domino’s Pizza restaurant located at 1438 Patton Avenue, in Asheville, in reference to an attempted armed robbery. APD officers who responded at the scene were able to see Wallace through the glass window of the store. Court records show that when Wallace saw the officers, he attempted to exit through the back door of the store, where he was met by other APD officers. Wallace retreated inside the business and attempted to escape again through the front door. Officers confronted Wallace at the entrance and took him into custody.
According to court documents, following Wallace’s arrest, APD officers entered the restaurant and located five store employees lying face down inside the store’s walk-in freezer. One of the employees told APD officers that Wallace ran in the store wielding a machete and ordered everyone to get on the floor in the back office or they would be harmed. Wallace demanded money from the safe and ordered the employees to lay face down inside the restaurant’s freezer. Over the course of the robbery, Wallace kicked several employees, one of them in the face, and threatened to “start chopping heads off” if they did not comply. Wallace proceeded to rob the store employees and to take money from the store’s cash register.
On September 25, 2020, Wallace pleaded guilty to interference with commerce by threat or violence, commonly referred to as Hobbs Act Robbery. Wallace has a prior federal conviction for the 2011 robbery of an Asheville-area bank.
Wallace 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 thanked the Asheville Police Department for their investigation of the case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Armed Bank Robber Sentenced to 8 Years’ ImprisonmentRead the Press Release
PITTSBURGH – A resident of Youngstown, Ohio, was sentenced to 8 years in prison on charges of Armed Bank Robbery and Using and Brandishing a Firearm During and in Relation to a Crime of Violence, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Demetrius Harris, 20.
According to the information provided at his change of plea, on November 1, 2019, Harris, Darion Fitzgerald, and Taevon Young drove from Ohio and robbed the First National Bank, an FDIC insured, located at 1030 Indiana Avenue, Farrell, PA 16121, of over $62,000. Harris and his co-defendant Fitzgerald entered the bank, armed with a rifle and a handgun, while Young acted as a lookout.
Upon entering the bank, Harris pulled out a handgun, and demanded money from multiple bank tellers. During the robbery, Fitzgerald and Harris switched firearms. Shortly thereafter, Fitzgerald and Harris exited the bank, Harris now carrying the rifle-style firearm and Fitzgerald carrying the handgun, and fled on foot. The robbers took approximately $62,000.
Harris was arrested after fleeing and discarding the rifle-style firearm. Harris was found with a backpack with a large sum of U.S. currency (approximately $55,000). A rifle-style firearm (Anderson Manufacturing, AM-15, Serial #: 16357936) was recovered in the woods next to the location where Harris was arrested. Harris confessed to committing the bank robbery.
Darion Fitzgerald. 19, and Taevon Young, 20, both of Cleveland, Ohio, are pending trial.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Farrell Police Department, Cleveland Metroparks Police Department, and Youngstown Police Department conducted the investigation leading to the prosecution of Harris.
Anchorage Man Sentenced to over Six and A Half Years in Federal Prison for Trafficking Heroin and Possession of A FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Blake Lincoln Smith, 34, of Anchorage, Alaska, has been sentenced on charges of possessing heroin with intent to distribute and being a felon in possession of a firearm.
According to Court documents, the charges stemmed from a July 23, 2019 search warrant execution of Smith’s vehicle, which resulted in the discovery and seizure of a loaded Springfield Armory XD-40 semiautomatic pistol and 179 grams of heroin. At the time, Smith was on state probation for drug possession and felony eluding convictions in Alaska. He also had a prior felony conviction for vehicle theft.
In imposing the 77-month sentence, District Court Judge Joshua M. Kindred emphasized Smith’s extensive criminal history and the seriousness of possessing a gun while possessing drugs as justification of the sentence.
The Federal Bureau of Investigation (FBI), Drug Enforcement Agency (DEA), Alaska State Troopers (AST), Anchorage Police Department (APD), Anchorage International Airport Police, Sand Point Police, and North Slope Borough Police, in support of Alaska’s High Intensity Drug Trafficking Area (HIDTA) Program, contributed to the investigation leading to the successful prosecution in this case. This case was prosecuted by Assistant U.S. Attorney Allison O’Leary.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please visit https://www.justice.gov/ag/about-project-guardian
Albuquerque man sentenced to 13 years in federal prison for armed robberyRead the Press Release
ALBUQUERQUE, N.M. – Jacob Merkel, 22, of Albuquerque was sentenced in federal court to 13 years in prison for one count of interference with interstate commerce by robbery and violence and one count of using, carrying, and discharging a firearm during and in relation to crime of violence, and possessing and discharging a firearm in furtherance of such crime.
Merkel previously pleaded guilty on Aug. 24. According to his plea agreement, Merkel admitted to traveling to Tobacco Town in Albuquerque with the intention of robbing it on Nov. 29, 2019. Merkel also admitted to wearing a black mask and a black hat and robbing the store at gunpoint. He fired a shot at the clerk while fleeing the building. Merkel and co-defendant, Vicente Perez fled, but were identified and followed by Albuquerque Police. While Perez attempted to evade the police, a tire on his car blew out, disabling it, and Perez and Merkel fled on foot. Perez surrendered after a brief pursuit; Merkel was arrested shortly afterward.
Co-defendant, Vicente Perez was sentenced on Oct. 29 to six years in federal prison for his part in the crime.
In addition to his prison sentence, Merkel will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Eva M. Fontanez prosecuted the case.
Alabama Man Sentenced to 111 Months in Federal Prison for Armed RobberyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Chief United States District Court Judge Kristi K. DuBose sentenced Lamarion Demetrius Alston on December 15, 2020, to serve a term of imprisonment of 111 months followed by 8 years of supervised release for Armed Robbery of a business (Hobbs Act robbery). The Court accepted the defendant’s guilty plea on September 14, 2020.
Court records established that on April 18, 2019, Alston, while brandishing a firearm, robbed the Family Dollar store in Demopolis, Alabama. A responding officer observed a vehicle fleeing and attempted to stop the vehicle, but the vehicle began driving evasively. The officer saw the defendant, a passenger in the vehicle, jump out and flee on foot. Officers pursued Alston and found him attempting to hide in a dumpster at a nearby apartment complex. Alston attempted to flee the dumpster and climb a fence. Officers physically struggled with Alston but were eventually able to gain control of him and take him into custody.
Officers were also able to stop the driver of the vehicle and they recovered a cash drawer containing cash taken during the robbery and a .32-caliber revolver which was consistent with the firearm the Alston can be seen brandishing on store video of the robbery.
The offense was investigated by the Demopolis, Alabama, Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney George F. May for the United States Attorney’s Office for the Southern District of Alabama.
15 named in $26 million international trade fraud schemeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a criminal indictment against eight individuals, while a related civil complaint has charged 14 individuals and one company relating to international trade fraud violations stemming from a decade-long scheme involving tires from China.
Law enforcement arrested Zheng “Miranda” Zhou, 53, of Missouri City, and Kun “Bruce” Liu, 40, of Sugar Land, yesterday. They made their initial appearances in Houston federal court today, at which time the criminal indictment was unsealed. Zhou will appear again tomorrow at 10 a.m. before U.S. Magistrate Judge Frances Stacy for a counsel determination hearing, and both are set for arraignment Friday at 10 a.m.
Also charged in the indictment are Qinghua “Shirley” Song, 44, of Jurupa Valley, California; and Chinese residents Yue “Joanna” Peng, 42, Li “Cathy” Chen, 38, Xin “Devin” Zhang, age unknown, Shaohui “Jasper” Jia, 40, and Deng “David” Yongqiang, 36. They are all considered fugitives and warrants remain outstanding for their arrests.
The Department of Justice’s Civil Division also filed a civil complaint Dec. 11 alleging trade fraud in the U.S. Court of International Trade. The complaint names the eight criminal defendants and six other individuals - Xiaozhen “Jenny” Zhang, 34, Di “Terry” Wang, 34, Liang “Leon” Yu, 49, Lin “Leo” Zhang, 37, Jinbing “David” Wang, 36, and Minglian “Bill” Li, 28 - as well as Houston area company Winland International Inc., dba Super Tire Inc. David Wang is a resident of New Jersey, while the remaining civil defendants reside in China.
“China and its industries want to rob, replicate and replace American made good and technology,” said U.S. Attorney Ryan K. Patrick. “Illegally importing and dumping these goods is one way to systemically weaken American competitors. Whether direct espionage by the Chinese government or trade fraud like in this case, we will continue to investigate and prosecute every case we can.”
“The Civil Division, through the Department of Justice’s Trade Fraud Task Force (TFTF), will continue to partner with U.S. law enforcement agencies and U.S. Attorneys’ Offices to aggressively investigate and pursue individuals and companies who attempt to evade U.S. customs laws and target the U.S. manufacturing base with unfair trade practices,” said Acting Assistant Attorney General Jeffery Bossert Clark. “We recognize the importance of ensuring that U.S. manufacturers are competing on a level playing field.”
The indictment and complaint allege the defendants conspired to avoid anti-dumping duties associated with off-the-road (OTR) and light vehicle and truck (LVT) tires from China. Working through and with Winland, individuals allegedly imported OTR and LVT tires from companies that were subject to anti-dumping duties associated with Chinese tire manufacturers who had engaged in unfair trade practices in the United States.
The complaint further alleges U.S.-based defendants conspired with defendants in China to obtain falsified invoices and entry records of Chinese tire companies that were subject to a lower duty rate than the actual manufacturers of these tires. Defendants submitted these falsified records to U.S. Customs officials when importing tires into the United States, so that Winland could avoid paying the higher duty rates, according to the allegations. The indictment and complaint also allege they used these falsified records to understate the value of these tires, further lowering the amount Winland owed in duties.
The value of these tires allegedly exceeded $20.9 million and resulted in the deprivation to the United States of more than $6.5 million in import duties.
“For more than a decade, Zhou and her co-conspirators are alleged to have sought to gain an unfair competitive advantage at the expense of U.S. companies and consumers through a series of schemes in violation of fair trade practices and U.S. import regulations,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Houston. “Working closely with our U.S. and foreign law enforcement partners, and in coordination with the National Intellectual Property Rights Coordination Center, we were able to uncover these alleged deceptive practices leading to the criminal indictment and imposition of almost $21 million in civil penalties.”
“Customs and Border Protection (CBP) takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Director of Detroit Field Operations Christopher Perry. “These civil penalties and criminal indictments should serve as a warning to those who attempt to defraud our government and do harm to our economy and American businesses.”
The Houston Trade/Revenue Interdiction and Enforcement Team conducted the collaborative investigation along with CBP’s Automotive and Aerospace Center of Excellence and Expertise with the assistance of U.S. Citizenship and Immigration Services.
Assistant U.S. Attorneys Suzanne Emilady and Craig Feazel of the Southern District of Texas are prosecuting the criminal case, while William Kanellis of TFTF is handling the civil matter. TFTF is an inter-agency law enforcement task force with the primary mission of identifying, interdicting and prosecuting international trade fraud.
An indictment or complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
15 Named in $26 Million International Trade Fraud SchemeRead the Press Release
A federal grand jury in Houston, Texas, has returned a criminal indictment against eight individuals, while a related civil complaint has charged 14 individuals and one company relating to international trade fraud violations stemming from a decade-long scheme involving tires from China.
Law enforcement arrested Zheng “Miranda” Zhou, 53, of Missouri City, and Kun “Bruce” Liu, 40, of Sugar Land, yesterday. They made their initial appearances in Houston federal court today, at which time the criminal indictment was unsealed.
Also charged in the indictment are Qinghua “Shirley” Song, 44, of Jurupa Valley, California; and Chinese residents Yue “Joanna” Peng, 42, Li “Cathy” Chen, 38, Xin “Devin” Zhang, age unknown, Shaohui “Jasper” Jia, 40, and Deng “David” Yongqiang, 36. They are all considered fugitives and warrants remain outstanding for their arrests.
The Department of Justice’s Civil Division also filed a civil complaint Dec. 11 alleging trade fraud in the U.S. Court of International Trade. The complaint names the eight criminal defendants and six other individuals - Xiaozhen “Jenny” Zhang, 34, Di “Terry” Wang, 34, Liang “Leon” Yu, 49, Lin “Leo” Zhang, 37, Jinbing “David” Wang, 36, and Minglian “Bill” Li, 28, as well as Houston area company Winland International Inc., dba Super Tire Inc. David Wang is a resident of New Jersey, while the remaining civil defendants reside in China.
“The Civil Division, through the Department of Justice’s Trade Fraud Task Force (TFTF), will continue to partner with U.S. law enforcement agencies and U.S. Attorneys’ Offices to aggressively investigate and pursue individuals and companies who attempt to evade U.S. customs laws and target the U.S. manufacturing base with unfair trade practices,” said Acting Assistant Attorney General Jeffery Bossert Clark. “We recognize the importance of ensuring that U.S. manufacturers are competing on a level playing field.”
“China and its industries want to rob, replicate and replace American made good and technology,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “Illegally importing and dumping these goods is one way to systemically weaken American competitors. Whether direct espionage by the Chinese government or trade fraud like in this case, we will continue to investigate and prosecute every case we can.”
The indictment and complaint allege the defendants conspired to avoid anti-dumping duties associated with off-the-road (OTR) and light vehicle and truck (LVT) tires from China. Working through and with Winland, individuals allegedly imported OTR and LVT tires from companies that were subject to anti-dumping duties associated with Chinese tire manufacturers who had engaged in unfair trade practices in the United States.
The complaint further alleges U.S.-based defendants conspired with defendants in China to obtain falsified invoices and entry records of Chinese tire companies that were subject to a lower duty rate than the actual manufacturers of these tires. Defendants submitted these falsified records to U.S. Customs officials when importing tires into the United States, so that Winland could avoid paying the higher duty rates, according to the allegations. The indictment and complaint also allege they used these falsified records to understate the value of these tires, further lowering the amount Winland owed in duties.
The value of these tires allegedly exceeded $20.9 million and resulted in the deprivation to the United States of more than $6.5 million in import duties.
“For more than a decade, Zhou and her co-conspirators are alleged to have sought to gain an unfair competitive advantage at the expense of U.S. companies and consumers through a series of schemes in violation of fair trade practices and U.S. import regulations,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Houston. “Working closely with our U.S. and foreign law enforcement partners, and in coordination with the National Intellectual Property Rights Coordination Center, we were able to uncover these alleged deceptive practices leading to the criminal indictment and imposition of almost $21 million in civil penalties.”
“Customs and Border Protection (CBP) takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said CBP’s Director of Detroit Field Operations Christopher Perry. “These civil penalties and criminal indictments should serve as a warning to those who attempt to defraud our government and do harm to our economy and American businesses.”
The Houston Trade/Revenue Interdiction and Enforcement Team conducted the collaborative investigation along with CBP’s Automotive and Aerospace Center of Excellence and Expertise with the assistance of U.S. Citizenship and Immigration Services.
William Kanellis of TFTF is handling the civil matter. TFTF is an inter-agency law enforcement task force with the primary mission of identifying, interdicting and prosecuting international trade fraud. Assistant U.S. Attorneys Suzanne Emilady and Craig Feazel of the Southern District of Texas are prosecuting the criminal case.
An indictment or complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
14 December 2020
Wyoming Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Casper, Wyoming, man convicted of Attempted Enticement of a Minor Using the Internet following a federal jury trial was sentenced on November 20, 2020, by Judge Jeffrey L. Viken, U.S. District Court.
Japher Rajab, age 43, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Rajab also will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Rajab was one of eleven men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally targeting internet predators. The conviction stemmed from Rajab communicating with someone he believed to be a 15 year-old girl, but who was in fact an undercover agent. Following multiple chats and text messages Rajab proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, Department of Homeland Security, Federal Bureau of Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Rajab was immediately remanded to the custody of the U.S. Marshals Service.
Waterbury Man Pleads Guilty to Possessing Child Sex Abuse ImagesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, announced that JOHN T. PERUGINI, 78, of Waterbury, waived his right to be indicted and pleaded guilty today to one count of possession of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, HSI received information that Perugini had been paying for access to a commercial website that contained child sex abuse images and videos. On October 29, 2019, agents seized Perugini’s computer equipment, including multiple external storage devices, from his residence. Analysis of one of Perugini’s external storage devices revealed more than 500,000 images and videos of child sex abuse.
Perugini was arrested in a federal criminal complaint on November 8, 2019.
Possession of child pornography carries a maximum term of imprisonment of 20 years. Perugini is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant in Hartford on March 17, 2021.
Perugini is released on a $50,000 bond pending sentencing.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Brendan Keefe.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
United States Attorney Craig Carpenito Announces his Resignation, Effective January 5, 2021Read the Press Release
NEWARK, N.J. – The United States Attorney for the District of New Jersey, Craig Carpenito, announced his resignation today, effective at 11:59 p.m., Jan. 5, 2021. Mr. Carpenito made the following statement regarding his departure and tenure in office:
Serving as the United States Attorney has been the greatest professional honor of my lifetime. It’s a dream for any line AUSA to eventually lead the office that they love. Over the past three years, we have been through a lot – the longest shutdown in government history, a global pandemic, and two tragic acts of violent extremism that led to the loss of precious lives. Through it all, we protected the great traditions of this office, the Department of Justice and the state that we all love and serve. For that, I am forever grateful.
I would also like to thank Attorney General Jefferson B. Sessions for appointing me United States Attorney in January 2018 and the United States District Court for the District of New Jersey for voting me into my position in April 2018. Being chosen by this Court to be the United States Attorney has been particularly gratifying.”
Over the past three years, I have been blessed to work alongside a tremendous front office and an incredible group of Assistant U.S. Attorneys. The following are only a few highlights among all that we have accomplished.
Organizational Changes
We made significant organizational changes to the Criminal and Civil Divisions, beginning upon my arrival in 2018, when I re-established the Violent Crimes Unit and created the Cybercrimes and Opioids Units. Opioids was the first standalone opioids enforcement unit in the United States, and the second unit in our Criminal Division to include both criminal and civil AUSAs. As a member of the Attorney General’s Advisory Subcommittees on both Health Care and Cybercrimes, we were thought leaders in both areas and brought some of the most significant cases in the country over the past three years.
I created a third such unit at the end of 2019: The Government Fraud Unit. Keeping AUSAs conducting parallel investigations under one roof has improved communication between the two groups and increased the speed with which such cases can be brought.
Staffing
We increased the number of criminal cases we prosecuted, and civil cases we brought and defended, by aggressively hiring new AUSAs and SAUSAs. Throughout all of our offices – Newark, Camden, and Trenton – staffing is at record levels. When I took office on Jan. 5, 2018, we had only 130 AUSAs on board even though we had a total of 147 AUSA slots. Today, we have 155 AUSA slots, all of which have been filled, and 10 SAUSAs - a 27 percent increase in our headcount. We hired and filled our 17 vacant AUSA slots by improving the management of our budget, and we increased our headcount by applying to Washington for increased funding to hire eight additional AUSAs for specific slots (immigration, affirmative civil enforcement in health care, violent crime, and unemployment insurance benefit fraud). We also asked for, and received, Special Assistant U.S. Attorneys from other federal agencies, including the Securities & Exchange Commission, the Environmental Protection Agency, the Department of Labor, the United States Trustee, and the United States Postal Inspection Service, and from the State of New Jersey and many of our county prosecutors’ offices. We have hired a diverse group of 74 AUSAs from different bakcgrounds and experiences. Our office is as strong as it has ever been.
Increased Productivity
The federal government’s fiscal year runs from October 1 to September 30. In fiscal year 2017, the last full year before I rejoined the Office, the Office brought 870 criminal cases. In 2018, that number went up to 1,217, an increase of nearly 40 percent. In 2019, the number increased again by nearly 10 percent, to 1,333 criminal cases. And in fiscal year 2020, a full half of which occurred during the COVID-19 pandemic and all of the challenges that posed and continues to pose to law enforcement, the number increased yet again by over 15 percent, to a total of 1,535 criminal cases. As an Office, we have been working smarter and we have been working harder. These numbers reflect that.
Violent Crime
One of my earliest priorities was tackling the violent crime problem in New Jersey, particularly in its largest cities. We moved immediately to strengthen our relationships with our state and local partners and to dedicate additional resources to investigating and prosecuting violent crime. The results were gratifying. For example, between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victims city-wide. In 20l9, the number of shooting victims and shooting incidents declined another 39 percent when compared to the same time period in 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.
The overall trends statewide were similar. The number of shooting victims in New Jersey declined from 1,353 in 2017 to 1,050 in 2018 and 1,000 in 2019, a decrease of 26 percent over that period. Of those, the number of murder victims declined from 233 in 2017 to 187 in 2018 to 158 in 2019, an even greater decrease of 32 percent over that period. These significant gains would not have been possible without the robust federal/state/local partnership led by this Office.
During my tenure, we expanded our Violent Crime Initiatives from Newark to Jersey City, Paterson, Trenton, and Camden. We dedicated more AUSAs to each of the VCIs, and we developed long-term relationships with our law enforcement partners to ensure that the VCIs would be successful. The Attorney General recognized our VCI work with AG Awards in two consecutive years, first in 2019 to the Newark VCI for cooperative law enforcement, and next in 2020 to Deputy Chief of the Criminal Division Mary Toscano, our Newark VCI coordinator, for excellence in management.
The violent crime numbers were continuing to decrease in 2020 when the pandemic hit. Since that occurred in mid-March, violent crime numbers have risen in many of our major cities. Thankfully, our numbers in New Jersey have remained better than other major cities in the United States. It is my sincere hope that by maintaining our focus on investigating and prosecuting violent crime at the federal level, we can start pushing those numbers in the right direction again in 2021.
Task Forces
In 2020, the Attorney General appointed me to lead two nationwide task forces. On March 24, 2020, the Attorney General created the COVID-19 Hoarding and Price Gouging Task Force. Our office, under the leadership of Deputy Chief of the Criminal Division Nicholas Grippo, AUSA David Simunovich, and Chief of the Appeals Division Mark Coyne, led the charge to investigate and prosecute the illicit hoarding and price gouging of critical COVID-19 personal protective equipment. With the help of our partners in the Antitrust Division, and with resources from U.S. Attorney’s Offices around the country, we created a mechanism by which to quickly intake hundreds upon hundreds of price-gouging complaints, assign those investigations to AUSAs around the country, and quickly and efficiently bring, when appropriate, criminal charges.
On June 26, 2020, the Attorney General appointed me, along with the U.S. Attorney for the Northern District of Texas, to lead the Task Force on Violent Anti-Government Extremists. Our office, under the leadership of AUSA Dean Sovolos, stood up this task force. We appointed task force coordinators in specific regions of the country to launch and coordinate investigations, with the FBI and local U.S. Attorney’s Offices, into violent extremists such as the Boogaloo and other white supremacist groups.
Civil Rights Enforcement
We increased our prosecution of criminal and civil cases involving civil rights, dedicated more resources to this important work, and were recognized by EOUSA for our excellence in this field. On the civil side, we increased the size of our civil unit by 50 percent. And, we were awarded in 2019 with a Director’s Award, to Michael Campion, Chief of the Civil Rights Unit in the Civil Division, and AUSA Kelly Horan Florio, for Superior Performance by Civil AUSAs, based upon their record of excellence in civil rights work. On the criminal side, I appointed Joseph Gribko as our first Senior Civil Rights Counsel. Throughout our offices, we charged a number of important criminal civil rights against law enforcement officers across the state. And, in 2020, we were recognized for this work as well, with a Director’s Award, to Executive Assistant U.S. Attorney Rahul Agarwal, for the successful civil rights prosecutions of several Paterson police officers.
eLitigation
Another of my earliest priorities was the advancement of our eLitigation capabilities. I recognized during my time in private practice that the government had fallen far behind the pace of the private sector when it came to efficiently receiving, processing, and using electronic evidence. At my request, our Office became one of the first USAOs to participate in an EOUSA pilot program designed to revolutionize and modernize our eLitigation program. This program was such a success that members of our office and EOUSA won a Director’s Award for it in 2020, and led to Daniel Shapiro, Deputy Chief of the Criminal Division, being named as one of the co-chairs of the nationwide eLitigation initiative that followed and seeks to replicate our success.
Medicare Strike Force
When I rejoined the Office in 2018, the District of New Jersey was the only federal judicial district that appeared on the top 10 list of healthcare fraud hotspots maintained by the Fraud Section of the Department of Justice, but lacked a DOJ Medicare Strike Force. I acted quickly to change that, and in August 2018, then-head of the Criminal Division Brian Benczkowski and I announced the formation of a Medicare Strike Force in New Jersey. Since that time, the Strike Force has doubled in size, and now comprises four DOJ Trial Attorneys and a Chief. The Strike Force attorneys have worked cases both separately and in tandem with our Healthcare Fraud and Opioids AUSAs on healthcare fraud enforcement matters across the state.
With the DOJ Medicare Strike Force, there are now 170 federal prosecutors resident in the District of New Jersey.
* * *
Upon United States Attorney Carpenito’s departure, First Assistant U.S. Attorney, Rachael A. Honig, will serve as Acting U.S. Attorney under the Vacancies Reform Act until a replacement is named.
Ms. Honig first joined the United States Attorney’s Office as an Assistant U.S. Attorney in 2003. She has served in various supervisory roles in the office, including Deputy Chief of the Criminal Division and Counsel to U.S. Attorney Paul Fishman, before departing for a legal position in the private sector. Upon returning to the office as United States Attorney, Carpenito appointed Ms. Honig his First Assistant U.S. Attorney. She is only the second woman to serve as the First Assistant and the first since 1983. Now, Ms. Honig will be the second woman in the 232-year history of this office to be its chief federal law enforcement officer.
“Throughout my tenure, Rachael has been my partner and principal advisor on everything that I do,” Carpenito said. “I am extremely proud and honored that she will be the Acting U.S. Attorney when I leave. The office and its legacy could not be in better hands.”
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Two Georgia women charged with bribing former Supervisor in DeKalb County’s Tax Commissioner’s OfficeRead the Press Release
ATLANTA – Lesbia Lily Gonzalez Moreno and Ailin Michelle Maldonado have been charged with paying bribes to Gerald D. Harris, a former Supervisor in DeKalb County’s Tax Commissioner’s Office, in exchange for Harris unlawfully registering vehicles.
“Moreno and Maldonado allegedly paid multiple bribes to register illegally vehicles without the necessary documentation,” said U.S. Attorney Byung J. “BJay” Pak. “Whether you offer a bribe or take a bribe, corruption betrays the trust of our citizens in government and will subject you to federal prosecution.”
“When public officials take or pay bribes, they are tarnishing the reputations of every government official,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal, state and local partners will do everything in our power to arrest and punish those who violate the public’s trust in hopes of restoring it.”
“Bribing government officials in exchange for official acts undermines the government’s integrity and its ability to effectively serve its citizens. Today is the first step in holding Moreno and Maldonado accountable for their actions. The DeKalb County District Attorney's Office, along with its law enforcement partners, remains committed to prosecuting anyone who engages in such activity,” said District Attorney Sherry Boston, Stone Mountain Judicial Circuit.
“The Georgia Department of Revenue was proud to assist our federal partners in the course of this investigation. The Department’s Motor Vehicle Division is responsible for motor vehicle tag and title processing and registration statewide. Our duties include ensuring that there is integrity throughout this process and so we will continue to work diligently with both our federal and local partners to enforce the law and maintain the public trust.” David Curry, Georgia State Revenue Commissioner.
“We continue to support the efforts of law enforcement officials to root out illegal and unethical behaviors by persons in positions of public trust,” said DeKalb Tax Commissioner Irvin Johnson. “I applaud the work of our office staff and our partners in law enforcement who quickly isolated this illegal activity and brought those involved to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia, responsible for the billing and collection of property taxes, processing of Homestead Exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County, Georgia.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner North Office’s clerks who processed motor vehicle registrations and renewals for customers. As a supervisor, Harris generally interacted with customers only if a dispute existed between clerks and customers. Similarly, based on his supervisory role, the Motor Vehicle Division did not issue Harris a cash drawer or a credit card terminal, nor was Harris responsible for processing transactions or payments with customers.
From at least May 2019 to November 8, 2019, Moreno and Maldonado repeatedly paid Harris bribe payments to register unlawfully vehicles for owners without presenting a valid Georgia driver’s license or identification card. Under state law, a vehicle owner could not register a vehicle or receive a license plate unless they presented a valid Georgia driver’s license or identification card at the time of application. Nevertheless, in exchange for bribe payments, typically $200 per vehicle, Harris unlawfully registered and obtained license places for owners identified by Moreno and Maldonado. During this period, Moreno and Maldonado each gave Harris thousands of dollars in bribe payments.
On July 14, 2020 Harris pleaded guilty to federal program bribery and blackmail and was sentenced to two years in prison.
Lesbia Lily Gonzalez Moreno, 46, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Ailin Michelle Maldonado, 24, of Norcross, Georgia, made an initial appearance before a U.S. Magistrate Judge in Denver, Colorado. Moreno was indicted by a federal grand jury on nine counts of honest services wire fraud on December 1, 2020. That same day, Maldonado was indicted by a federal grand jury on seven counts of honest services wire fraud in a separate indictment.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.
Assistant U.S. Attorney Nicholas Hartigan is 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.
Three San Francisco Mission District Norteño Gang Members Charged with Racketeering Conspiracy Involving Murders and Attempted Murder and Weapons ViolationsRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco charged Fernando Madrigal, AKA “Nando,” Alvaro Reina Cordero, AKA “G-Boy,” and Oscar Guadron Diaz, AKA “Cutty,” in a superseding indictment with charges of a racketeering conspiracy involving three murders and a shooting; the use and the discharge of a firearm during violent offenses; and the possession of a machinegun, announced United States Attorney David L. Anderson, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
In the original indictment filed August 20, 2020, the defendant Madrigal, 22, of San Francisco, was identified as a member of a street gang known as the San Francisco Mission District (SFMD) Norteños and charged with the July 8, 2019, shooting murder in the Mission District of a 15 year old who was mistaken as a rival gang member.
In the superseding indictment unsealed December 11, 2020, the federal grand jury charged Madrigal and two others, Reina Cordero, 23, of Daly City and Guadron Diaz, 21, of Oakland, with charges of firearm violence and of engaging in a racketeering conspiracy that involved committing multiple violent acts to support the SFMD Norteño gang, of which they are alleged to be members. Norteño gang members work together to support their gang by acts such as “hunting” to find and kill members of rival gangs, armed robberies, shootings, and other violence, all of which enhances the gang’s reputation as being strong, powerful, and dominant. Norteño gang members also commit crimes to enhance the financial strength of their gang, such as drug trafficking, theft, and firearms trafficking.
The racketeering conspiracy charge against the three defendants Madrigal, Reina Cordero, and Guadron Diaz describes the violent acts the defendants engaged in as part of and in furtherance of the conspiracy to support their Norteño gang.
The superseding indictment charges that on or about January 23, 2018, Reina Cordero and Guadron Diaz, with others, murdered one victim and attempted to murder a second victim, who are identified in the superseding indictment as Victim-1 and Victim-2, respectively.
The superseding indictment alleges that the attack occurred at approximately 5:11 pm near Leese Street and Richland Avenue, an intersection near Mission Street in San Francisco, while vehicle traffic and pedestrians were nearby. Multiple gunshots were fired during the attack.
The superseding indictment alleges Reina Cordero and Guadron Diaz targeted and murdered Victim-1 because they believed he associated with a rival Sureño gang. Victim-2, who was with Victim-1, suffered a gunshot wound to the face but survived.
The superseding indictment also charges that on July 12, 2018, Madrigal, with others, murdered Victim-3. The superseding indictment alleges that on the date of July 12, 2018, Victim-3’s car was located unattended near Candlestick Park in San Francisco. Days later, Victim-3’s cell phone was recovered near the San Mateo Bridge. It had blood on it. Over a year later, on February 20, 2020, tree trimmers found human remains in a wooded area in Oakland. The body’s skull was missing but located later, on or about March 25, 2020. The remains were submitted for DNA comparisons and determined to be those of Victim-3. Information from Victim-3’s cell phone indicates that Madrigal had arranged to meet Victim-3 at Candlestick Park, claiming he wanted to buy marijuana from the victim.
The superseding indictment further charges the murder of July 8, 2019 – charged earlier in the original indictment – in which Madrigal, with others, shot and killed Victim-4. The superseding indictment details that this murder occurred just after midnight and within two blocks of the 24th Street and Mission Street BART station in San Francisco. Police identified the 15-year old murder victim by a student identification card in his pocket and determined that he lived in the area claimed by Army Street. The superseding indictment alleges Madrigal targeted Victim-4 because Madrigal believed Victim-4 was associated with the Army Street gang. Nine rifle casings were recovered from the scene. Immediately after the murder on July 8, Madrigal and others allegedly drove to the Bernal Dwellings Apartments, which is claimed by the Army Street gang as its territory, and fired another shot from the same gun used in the murder, and immediately thereafter led San Francisco Police Department officers on a high-speed chase down Highways 101 and 280 before getting away near John Daly Boulevard.
The superseding indictment also charges Reina Cordero and Guadran Diaz together in a separate count with the crime of the use of a firearm in the murder of Victim 1 and in another count charges them with the discharge of a firearm in the attempted murder of Victim-2. The superseding indictment also separately charges Madrigal with the use of a firearm in the murder of Victim-3 and in another count charges Madrigal with the use of a firearm in the murder of Victim-4.
The superseding indictment further charges Guadron Diaz with possession of a machinegun on January 25, 2018.
Reina Cordero was arrested and made his initial appearance on these charges in federal court on December 11, 2020. He remains in custody and is set for a detention hearing on December 18. Guadron Diaz went into FBI custody last night and made his initial appearance today in federal court before United States Magistrate Judge Laurel Beeler. He remains in custody, and his next appearance is scheduled on December 18 for a detention hearing. Madrigal remains in federal custody and is scheduled for his next appearance on December 17.
A superseding indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The following chart outlines the charges and maximum sentences:
Fernando Madrigal,
AKA “Nando”
18 U.S.C. § 1962(d) – Racketeering Conspiracy
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-3
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-4
Death or life imprisonment
Alvaro Reina Cordero, AKA “G-Boy”
18 U.S.C. § 1962(d) – Racketeering Conspiracy
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-1
18 U.S.C. §§ 924(c)(1)(A) and 2 – Discharge of a Firearm in Furtherance of the Attempted Murder of Victim-2
Death or life imprisonment
Oscar Guadron Diaz,
AKA “Cutty”
18 U.S.C. § 1962(d) – Racketeering Conspiracy
18 U.S.C. §§ 924(j)(1) and 2 – Use of a Firearm Causing Murder of Victim-1
18 U.S.C. §§ 924(c)(1)(A) and 2 – Discharge of a Firearm in Furtherance of the Attempted Murder of Victim-2
8 U.S.C. §§ 922(o) – Possession of a Machinegun
Death or life imprisonment
The maximum sentences are reflected above; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The United States Attorney’s Office Organized Crime Gang Strike Force is prosecuting this case. The prosecution is the result of a multi-year investigation by the FBI, together with San Francisco Police Department’s Gang Task Force and Homicide Detail