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10 December 2020
Tulsa Police Officer and Co-conspirator Charged with Making False Statements to a Firearms DealerRead the Press Release
A Tulsa police officer made an initial appearance today in federal court for conspiring to make a false statement to a firearms dealer when purchasing a firearm.
Officer Latoya Lisa Dythe, 26, and Devon Jamyll Jones, 27, both of Tulsa, were indicted this week for conspiracy to make a false statement to a firearms dealer and for false statement to a firearms dealer. Dythe lied on the required Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, specifically where the form asks the buyer if they are purchasing the firearm for themselves. The form then states “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.” Dythe marked that she was purchasing the gun for herself, but instead was purchasing the firearm for Jones. Jones is also currently in custody facing state charges.U.S. Attorney Trent Shores, Tulsa Police Chief Wendell Franklin and FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office made the announcement at a press conference today at Tulsa Police Department Headquarters.
“Police officers are entrusted with enforcing the law to make our city safer. When a police officer breaks the law, however, it does great damage to the public’s trust. This prosecution involves an allegation that an officer, Latoya Dythe, engaged in criminal conduct by facilitating a “lie and buy” transaction as a straw purchaser,” said U.S. Attorney Trent Shores. “In October, Chief Franklin and I launched the 2150 initiative, making a public pledge to investigate and prosecute these types of gun cases because they often lead to violent acts. In this case, Chief Franklin and his Department brought this case to federal agents and prosecutors and worked in partnership with my office as this investigation moved forward.”
“Our system of justice is based on the cornerstones of trust and accountability,” said Melissa Godbold, Special Agent in Charge of the FBI’s Oklahoma City Field Office. “It’s the trust that the community has in law enforcement – to do the right thing, in the right way, all day, every day. Without that trust, we have nothing.”
“Investigators within the Tulsa Police Department Crime Gun Unit received this case and immediately began working with the Federal Bureau of Investigation and the Bureau of Alcohol Tobacco and Firearms. We have worked in partnership with the United States Attorney’s Office throughout the duration of this investigation and will continue to do so as this process moves forward.
When the actions of an employee of the Tulsa Police Department bring ill repute to the Department, it tarnishes the good work done by the hundreds of other officers who wear the badge with honor.”
As part of the conspiracy, Dythe and Jones are alleged to have knowingly made false statements and representations to an employee of the Bass Pro Shop, a federally licensed firearms dealer, when Dythe allegedly lied on the ATF Form 4473. On April 11, 2020, the defendants approached a Bass Pro Shop employee. Dythe asked to handle the FN Herstal handgun. The employee asked Dythe if she was purchasing the handgun for herself rather than for Jones. She used her position of authority and replied that she was a Tulsa Police officer and knew the law. Dythe filled out and signed the required ATF FORM 4473, indicating the firearm was being purchased for her. She then paid for the firearm using cash provided by Jones. Dythe gave Jones the firearm once the two were in the establishment’s parking lot.
Count 1 and Count 2 of the indictment each carry a maximum penalty of five years imprisonment, three years of supervised release and a fine not to exceed $250,000.
The FBI conducted is the investigative agency. Assistant U.S. Attorney Edward Snow is prosecuting the case.
The 2150 Initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Tulare County Man Indicted on Gun and Ammunition ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Ralph Zavala, 39, of Woodlake, charging him with being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 1, Zavala was arrested as part of a law enforcement effort to apprehend parolees who have absconded from parole supervision. Officers observed Zavala in a vehicle, and as they moved in to apprehend him, Zavala drove into an agent’s vehicle. Zavala was eventually arrested and found to be in possession of a loaded Cobra Denali semi-automatic .380 ACP pistol. Zavala has several felony convictions in Tulare County and is prohibited from possessing either a firearm or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation, the Woodlake Police Department, and the Visalia Police Department. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Zavala faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
The case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Tucson Caregivers Charged with Defrauding Elderly VictimRead the Press Release
TUCSON, Ariz. – On November 24, a federal grand jury in Tucson returned a three-count indictment against Michael Tagle Santos, 33, and Cherry Mae Santos, 28, husband and wife, of Tucson, Arizona for conspiracy to commit wire fraud and wire fraud.
The indictment alleges that between 2013 and March 2018, the Santoses defrauded an elderly, disabled victim by enriching themselves through the victim’s financial accounts while serving as caregivers. They are charged with fraudulently transferring funds from the victim’s account to their own accounts as salary “advances.” The Santoses are also accused of fraudulently transferring additional funds for personal use, while simultaneously paying themselves a salary out of the victim’s account.
A conviction for conspiracy to commit wire fraud and wire fraud each carry a maximum penalty of 20 years imprisonment, a $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The United States Secret Service and the Pima County Sheriff’s Office investigated this matter. The United States Attorney’s Office, District of Tucson, is handling the prosecution.
CASE NUMBER: CR-20-2707-JGZ (LAB)
RELEASE NUMBER: 2020-107_Santos# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Men Charged with Conspiracy to Defraud Victims of More Than $3 MillionRead the Press Release
CAMDEN, N.J. – A Burlington County resident and a former Camden County resident are among three men charged with conspiring to defraud at least 43 victims out of more than $3 million through the sale of phony business opportunities, U.S. Attorney Craig Carpenito announced.
David Weinstein 61, formerly of Cherry Hill, New Jersey, and now of Dallas, Texas; Vijay Vanam Reddy 45, of Milan, Michigan, and Kevin Brown, 61, of Burlington, New Jersey, are each charged by complaint with one count of conspiracy to commit wire fraud. Reddy was arrested today and is scheduled to appear in Detroit, Michigan, federal court this afternoon. Brown and Weinstein were arrested on Dec. 8, 2020. Brown appeared before U.S. Magistrate Judge Ann Marie Donio in Camden federal court via videoconference on Dec. 8, 2020, and was released on $50,000 bond. Weinstein appeared before U.S. Magistrate Judge Rebecca Rutherford in Dallas federal court on Dec. 9, 2020 and was released.
According to documents filed in this case and statements made in court:
From September 2015 through August 2018, the conspirators advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.
To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Reddy’s family member and Weinstein, using aliases to speak with potential buyers.
After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $255,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.
After receiving the down payments, Weinstein and Reddy delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts. The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.
Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Weinstein or Reddy acted as the seller and signed the contracts with the victims.
At least 43 victims sent more than $3 million to accounts controlled by the conspirators. Law enforcement agents have tentatively identified an additional 21 victims who collectively paid an additional $1.1 million to the conspirators. The defendants spent the victims’ money on personal expenses and transferred money to other bank accounts controlled by them or their family members.
The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to the charges.
Additional victims of the offense may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Men Charged with Conspiracy to Commit Arson of Target Corporation HeadquartersRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging SHADOR TOMMIE CORTEZ JACKSON, 24, VICTOR DEVON EDWARDS, 31, and LEROY LEMONTE PERRY WILLIAMS, 34, each with one count of conspiracy to commit arson of the Target Corporation’s corporate headquarters building located at 1000 Nicollet Mall, Minneapolis, Minnesota. JACKSON, EDWARDS, AND WILLIAMS were previously charged via federal complaint with arson. Formal detention and arraignment hearings will be scheduled at a later date.
According to allegations in the federal indictment and documents filed with the court, on Wednesday, August 26, 2020, Minneapolis experienced arson, rioting, and looting following the suicide of a suspect in a homicide, and in response to false rumors surrounding the man’s death. JACKSON, EDWARDS, and WILLIAMS went to the Target Corporation’s corporate headquarters building (“Target Corporation building”) where dozens of other people had gathered. JACKSON used a construction sign to break through one of the glass doors into the Target Corporation building. JACKSON, EDWARDS, and WILLIAMS, along with unidentified others, breached the doors and entered the Target Corporation building. Once inside, JACKSON intentionally set a fire on a counter inside the mailroom while EDWARDS stood nearby. EDWARDS later added a liquid accelerant to the fire located on the mailroom counter with the intent to fuel the existing fire. JACKSON attempted to light a second fire in the mailroom on top of cardboard boxes using a lighter and a bottle of ignitable liquid. JACKSON, EDWARDS, and WILLIAMS, along with unidentified others then ran out of the building together using the same door. WILLIAMS subsequently re-entered the building and attempted to light a fire inside the building entrance before leaving the scene.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Minneapolis Fire Department, and the Minneapolis, Bloomington, and Richfield Police Departments.
This case is being prosecuted by Assistant United States Attorney Chelsea A. Walcker.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
SHADOR TOMMIE CORTEZ JACKSON, 24
Richfield, Minn.
Charges:
- Conspiracy to Commit Arson, 1 count
VICTOR DEVON EDWARDS, 31,
St. Paul, Minn.
Charges:
- Conspiracy to Commit Arson, 1 count
LEROY LEMONTE PERRY WILLIAMS, 34
Minneapolis, Minn.
Charges:
- Conspiracy to Commit Arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The Departments of Justice and Homeland Security Publish Final Rule on Procedures for Asylum and Withholding of RemovalRead the Press Release
Update: This rule was enjoined in its entirety on January 8, 2021. See Pangea Legal Servs., et al., v. U.S. Dep’t of Homeland Sec., et al., No. 3:20-cv-09253 (N.D. Cal.) (“Pangea II”) and Immigration Equality, et al. v. U.S. Dep't of Homeland Sec., et al., No. 3:20-cv-09258 (N.D. Cal.)
Today, the Department of Justice and the Department of Homeland Security (collectively, the Departments) announced the forthcoming publication of a Final Rule that will streamline and enhance procedures for the adjudication of claims for asylum, withholding of removal, and protection under the Convention Against Torture (CAT) regulations.
The Final Rule, consistent with the Immigration and Nationality Act (INA), will enable the Departments to more effectively separate baseless claims from meritorious ones. This will better ensure groundless claims do not delay or divert resources from deserving claims, and in particular, will better ensure the security of our nation’s borders by facilitating the efficient review of claims in a manner consistent with the law and the integrity of our immigration system.
The Final Rule addresses public comment received following publication of a Notice of Proposed Rulemaking, and codifies amendments to multiple provisions of the Departments’ regulations. The rule takes effect 30 days after publication in the Federal Register, which is scheduled to occur on Friday, Dec. 11, 2020.
The Final Rule makes the following changes to the Departments’ regulations:
- Amend the regulations governing credible fear determinations so that individuals found to have such a fear will have their claims for asylum, withholding of removal, or protection under the CAT adjudicated by an immigration judge in streamlined proceedings, rather than in immigration court proceedings conducted under section 240 of the INA;
- Permit immigration judges to pretermit asylum applications without a hearing if the application does not demonstrate prima facie eligibility for relief;
- Clarify when an application is “frivolous”;
- Clarify standards for the adjudication of asylum and withholding claims including amendments to the definitions of the terms “particular social group,” “political opinion,” “persecution,” and “firm resettlement”;
- Outline factors, including an exemption for children under 18 for the factor regarding unlawful entry or attempted unlawful entry, for adjudicators to consider when making discretionary determinations;
- Clarify the standard for determining the acquiescence of a public official or other person acting in an official capacity under the CAT regulations;
- Raise the burden of proof for the threshold screening of withholding and CAT protection claims from “significant possibility” to a “reasonable possibility” standard;
- Apply bars to asylum and withholding when making credible fear determinations; and
- Clarify the requirement to protect certain information contained in asylum applications, applications for withholding of removal under the INA, applications for protection under the regulations implementing the CAT, and applications for refugee admissions.
Texas man sentenced for trafficking methRead the Press Release
BROWNSVILLE, Texas – A 21-year-old resident of Houston has been ordered to prison following his conviction for attempting to import approximately 60.88 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.
Hector Julian Valerio-Andrade pleaded guilty Dec. 3, 2019.
Today, U.S. District Judge Fernando Rodriguez handed Valerio a 140-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted Valerio had stated he was trafficking drugs in order to receive a $6,500 payment and that he had planned the offense for several weeks before he finally made the attempt.
On Oct. 6, 2019, Valerio entered the United States through the Brownsville and Matamoros (B&M) port of entry as the driver and sole occupant of a 2008 Ford Explorer. Authorities soon discovered approximately 60.88 kilograms of meth inside the vehicle’s tires.
Valerio admitted he knowingly imported the drugs into the United States from Mexico with the intent to deliver them to Dallas. He expected to be paid $6,500.
The drugs had an estimated street value of $1.32 million.
Valerio will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Brian McDonald prosecuted the case.
Texas Man Pleads Guilty to Trafficking AliensRead the Press Release
ROANOKE, Va. – A Texas man, who was involved in a traffic accident in Wythe County, Virginia on February 10, 2020, pleaded guilty today in U.S. District Court in Roanoke to trafficking aliens, Acting United States Attorney Daniel P. Bubar announced.
Gary Donel Smith, 30, of McKinney Texas, waived his right to be indicted and pleaded guilty today to a one-count Information charging him with knowingly transporting aliens within the United States.
According to court documents, Smith was recruited by an individual to transport a vanload of aliens across the United States. Smith knew these individuals were in the United States illegally at the time and agreed to transport them from Dallas, Texas to New York, New Jersey, and Maryland. The passengers paid $14,000 for a smuggling service to enter the United States. Smith was to be paid for his services upon his return from transporting the aliens to their destinations.
On February 9, 2020, Smith picked up the passengers in Dallas, Texas. The following day, Smith was involved in a traffic accident in Wythe County, Virginia. At that time law enforcement responded and found six aliens traveling with Smith, including one juvenile and five adults. These individuals were found to be in the United States illegally from Ecuador and El Salvador.
The investigation of the case was conducted by the Department of Homeland Security (DHS) Homeland Security Investigations (HSI), the Montgomery County Sheriff’s Office, U.S. Immigration and Customs Enforcement - Enforcement and Removal Operations, and the Virginia State Police. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Texas Clinic Owner and Clinic Employee Sentenced to Prison for Conspiring to Unlawfully Prescribe Hundreds of Thousands of OpioidsRead the Press Release
A Houston-area pain clinic owner and a clinic employee who posed as a physician were sentenced to 240 months and 96 months in prison, respectively, today for their roles at a “pill mill” where they and their co-conspirator illegally prescribed hundreds of thousands of doses of opioids and other controlled substances.
Acting Assistant Attorney General Brian C. Rabbit of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Steven S. Whipple of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
Baker Niazi, 49, of Sugarland, Texas, and Muhammad Arif, 62, of Katy, Texas, were sentenced by U.S. District Judge Alfred H. Bennett of the Southern District of Texas. Judge Bennett ordered that Niazi pay a fine of $500,000, and also ordered that Niazi forfeit $493,000 and that Arif forfeit $11,423.11. Niazi pleaded guilty in April 2018 to one count of conspiracy to unlawfully distribute and dispense controlled substances, and Arif was convicted at trial in August 2019 of one count of conspiracy to unlawfully distribute and dispense controlled substances and three counts of unlawfully distributing and dispensing controlled substances.
According to the evidence presented at the trial of Arif, from September 2015 through February 2016, Niazi owned and operated Aster Medical Clinic in Rosenberg, Texas, which he operated as an illegal pill mill. Arif was an employee at Aster Medical Clinic who conspired with Niazi and a Dallas-based physician to unlawfully prescribe controlled substances to individuals posing as patients. The evidence showed that Niazi hired Arif, who was not licensed to practice medicine in the United States, to pose as a physician at Aster Medical Clinic, where he saw the clinic’s customers as if he were a physician, and wrote prescriptions for them on prescription pads that had often been pre-signed by the physician, Arif’s co-conspirator.
Through this scheme, Aster Medical Clinic dispensed prescriptions for over 200,000 dosage units of hydrocodone, a Schedule II controlled substance, and over 145,000 dosage units of carisoprodol, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
Trial evidence showed that Aster Medical Clinic issued unlawful prescriptions for controlled substances to over 40 people on its busiest days. “Runners” brought numerous people to pose as patients at Aster Medical Clinic and paid for their visits in order to obtain prescriptions for controlled substances that the crew leaders then diverted onto the black market. Aster Medical Clinic charged approximately $250 for each patient visit, and required payment in cash, the evidence showed.
One other co-conspirator has pleaded guilty based on his role in the unlawful prescription scheme at Aster Medical Clinic and is currently awaiting sentencing before U.S. District Judge Alfred H. Bennett of the Southern District of Texas.
The case was investigated by the DEA, and was brought as part of the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Deputy Chief Aleza Remis and Trial Attorney Alexis Gregorian of the Fraud Section.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Tewksbury Man Indicted on Bank Robbery ChargeRead the Press Release
BOSTON – A Tewksbury man was indicted yesterday by a federal grand jury in Boston in connection with a Sept. 22, 2020 bank robbery.
Nicholas O’Neil, 37, has been indicted on one count of bank robbery after being arrested in Tewksbury on Sept. 22, 2020. He was previously charged by federal criminal complaint.
According to charging documents, on Sept. 22, 2020, O’Neil entered a branch of the Santander Bank in Tewksbury, handed the teller a demand note and a red cloth bag. The teller placed the money into the red bag and handed the bag and the demand note back to the robber who exited the bank. A bank customer watched the robber exit the bank and allegedly get into the passenger side of a white pickup truck and exit the area at a high rate of speed. Police issued an alert for the white pickup truck and a short time later, the truck was located and “boxed-in” in heavy traffic. Police officers arrested the driver and passenger, later determined to be O’Neil. Inside the vehicle, the red bag with the money and the demand note were recovered.
The charge of bank robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Tewksbury Police Chief Ryan M. Columbus made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Storm Lake Man to Federal Prison for Child Pornography ConvictionRead the Press Release
A man who received and possessed child pornography was sentenced December 9, 2020, to more than 18 years in federal prison.
James Alan Sievers, 35, from Storm Lake, Iowa, received the prison term after a June 19, 2020, guilty plea to one count of receipt of child pornography and one count of possession of child pornography.
Evidence at the plea hearing and sentencing showed that between June 5, 2019, and October 31, 2019, Sievers received and possessed visual depictions of minors engaged in sexually explicit conduct, including a depiction involving a prepubescent minor or a minor who had not attained 12 years of age. During the execution of a search warrant at Seivers’ residence on October 31, 2019, officers seized items belonging to Sievers. A forensic examiner found child pornography on some of defendant’s items, including depictions of adult males sexually penetrating prepubescent children. Evidence also showed that Sievers saved some of his child pornography in an encrypted zip drive.
Sievers has three prior convictions for in Buena Vista County for incest, failure to register as a sex offender, and sexual exploitation of a minor.
Sievers was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sievers was sentenced to 220 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system. Sievers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Iowa ICAC Task Force, the FBI, the Storm Lake Police Department and the Buena Vista County Attorney's Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4001. Follow us on Twitter @USAO_NDIA.
Statement of U.S. Attorney William M. McSwain Regarding Federal Charges for the Murder of Philadelphia Police Sergeant James O’ConnorRead the Press Release
PHILADELPHIA, PA – On December 10, 2020, U.S. Attorney McSwain convened a press conference to announce federal charges against four defendants for the murder of Philadelphia Police Sergeant James O’Connor on March 13, 2020 and related drug and weapons charges. Below are his remarks from the press conference.
Good afternoon, everyone. We are here to announce that the U.S. Attorney’s Office has unsealed an Indictment against four individuals – Hassan Elliott, Bilal Mitchell, Khalif Sears and Sherman Easterling – for the murder of Philadelphia Police Sergeant James O’Connor, as well as related drug and weapons charges. As we all know, Sergeant O’Connor was tragically killed in the line of duty in the early morning hours of March 13, 2020 in the City’s Frankford section, while attempting to serve a murder warrant with his SWAT unit on Mr. Elliott, who was suspected of committing a murder in 2019.
Before I get into more details about the Indictment, I want to thank the members of the prosecution team who have worked tirelessly on this case literally from the moment that we learned of the murder. Specifically, I want to thank Sal Astolfi, the Deputy Chief of our Criminal Division; Jeanine Linehan, the Chief of our Violent Crime Unit; and Jonathan Ortiz, the Deputy Chief of our Violent Crime Unit. And standing with me today, I want to thank Ashley Martin and Lauren Stram, both Special Assistant U.S. Attorneys cross-designated to our Office from the Pennsylvania Attorney General’s Office; and Assistant U.S. Attorney Christopher Diviny. I also want to thank the Bureau of Alcohol, Tobacco, Firearms and Explosives, which is the federal agency partner on this case, and the Philadelphia Police Department, for their support. Standing with me today are Matt Varisco, the Special Agent in Charge of ATF’s Philadelphia Field Division; Melvin Singleton, the First Deputy Philadelphia Police Commissioner; and John McNesby, the President of the Fraternal Order of Police, Lodge 5. I want to thank Sergeant O’Connor’s family for being here today for this announcement. And I want to thank his extended family of fellow officers who loved him for being here, as well.
The four defendants in this case are alleged members of a drug trafficking group known by several names, including “1700 Scattergood,” operating within the Frankford section of Northeast Philadelphia and surrounding areas, that obtained and distributed crack cocaine and other controlled substances. According to the Indictment, all four defendants are responsible for the murder of Sergeant O’Connor, which occurred as he was climbing the stairs at 1688 Bridge Street, an alleged stash house for the drug gang. Significantly, the Indictment also contains a Notice of Special Findings against Mr. Elliott. These Special Findings make him eligible for the federal death penalty.
Sergeant O’Connor was a 23-year veteran of the Philadelphia Police Department. He was a married father of two whose family has deep roots in the Department. His father was a Philadelphia Police Officer; his son and his daughter-in-law are both Philadelphia Police Officers, as well. His daughter serves in the U.S. Air Force. Sergeant O’Connor was a loving son, husband, father and grandfather. He leaves behind a legacy of public service, honor, integrity – and bravery. He literally gave his life to protect our community.
Sergeant O’Connor’s murder was entirely preventable. As I have already explained in detail in previous public statements on March 16 and March 19, Hassan Elliott never should have been on the street in the first place – he should have been in jail. The only reason he was out of jail was because of the pro-violent defendant policies of the Philadelphia District Attorney, Larry Krasner. These policies prioritize “decarceration” of violent offenders over public safety.
Krasner’s policies coddle and embolden violent criminals, create a culture of lawlessness, and have inevitable consequences – one of which is a murder rate in Philadelphia that is the highest it has been in several decades. In 2020, we have already seen more shootings in Philadelphia than in any other year – ever. As I explained in my public statements on September 14, many of these shootings and murders were possible only because of District Attorney’s willingness – indeed, his eagerness – to return violent offenders to the streets, where they can continue to threaten, assault, shoot and kill.
In order to address this epidemic of violence in our city, we must have the courage to tell the truth. The truth is that, as a practical matter, Krasner’s pro-violent defendant policies are what put Elliott on the street; they put this horrible chain of events in motion; and in that sense, these policies are every bit as responsible for Sergeant O’Connor’s alleged murder as the defendants.
Given these facts, it would be absurd, even grotesque, to leave it up to Krasner to direct the prosecution of Sergeant O’Connor’s alleged killers. And it would be cruel to ask Sergeant O’Connor’s family to simply cross their fingers and hope that Krasner’s pro-defendant agenda does not victimize them yet again. That absurdity ends today.
No family should ever have to go through what the O’Connors have experienced over the past nine months, or what they will have to experience for the rest of their lives. We cannot bring their loved one back, but we can honor him by seeking justice and by doing all that we can to prevent this type of tragedy from occurring again. We promise the O’Connor family, we promise the Philadelphia Police Department, and we promise the community, that we will do exactly that. Thank you.
State Department Employee and Spouse Plead Guilty to Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
A U.S. Department of State employee and his spouse pled guilty today to one count of conspiracy to traffic in counterfeit goods. The guilty pleas took place before U.S. District Judge Michael J. McShane, who has scheduled sentencing for March 18, 2021, for both defendants.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon, and Deputy Assistant Secretary and Assistant Director Ricardo Colón of the U.S. Department of State’s Diplomatic Security Service (DSS), made the announcement.
According to the plea agreements, Gene Leroy Thompson Jr., 54, was an Information Programs Officer employed by the Department of State at the U.S. Embassy in Seoul, Korea, a position that required Thompson Jr. to maintain a security clearance. Guojiao “Becky” Zhang, 40, is married to Thompson Jr. and resided with him in Seoul, Korea.
Between September 2017 and December 2019, the two conspired to sell counterfeit goods, primarily Vera Bradley products. Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms. Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring counterfeit merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
The case was investigated by the Diplomatic Security Service Office of Special Investigations with assistance from the U.S. Postal Inspection Service. The case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Amy Potter of the District of Oregon.
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.
State Department Employee and Spouse Plead Guilty for Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
EUGENE, Ore.—A U.S. Department of State employee and his spouse pleaded guilty today to one count of conspiracy to traffic in counterfeit goods. The guilty pleas took place before United States District Judge Michael J. McShane. Both defendants will be sentenced on March 18, 2021.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon, and Deputy Assistant Secretary Ricardo Colon of the Department of State Diplomatic Security Service (DSS), made the announcement.
According to the plea agreements, Gene Leroy Thompson Jr., 54, was employed by the U.S. Department of State as an Information Programs Officer at the U.S. Embassy in Seoul, Korea, a position that required Thompson Jr. to maintain a security clearance. Guojiao “Becky” Zhang, 40, is married to Thompson Jr. and resided with him in Seoul.
Between September 2017 and December 2019, the two conspired to sell counterfeit Vera Bradley handbags from e-commerce accounts to persons throughout the United States. Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms. Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring counterfeit merchandise to be stored in Oregon. Thompson Jr. and Zhang also directed a co-conspirator in Oregon to ship items to purchasers across the United States.
The case was investigated by the DSS Office of Special Investigations with assistance from the U.S. Postal Inspection Service. The case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Amy Potter of the District of Oregon.
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.
San Francisco Man Arrested in Placer County IndictmentRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today charging a San Francisco man, arrested in Lincoln, with being a felon in possession of a firearm and possession of controlled substances, U.S. Attorney McGregor W. Scott announced.
Ricardo Manuel Duran, 37, was charged with being a felon in possession of a firearm, possession of heroin, and possession of methamphetamine. According to court documents, on Oct. 20, Duran possessed a Smith and Wesson handgun and was further found to be in possession of heroin and methamphetamine. Duran has been convicted of six prior felonies – two of them for being a felon in possession of a firearm – and is prohibited from possessing a firearm.
This case is the product of an investigation by the Lincoln Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Nelsen is prosecuting the case.
If convicted, Duran faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
San Antonio Man Whose Sentence Was Previously Commuted Once Again Arrested on Federal Drug ChargesRead the Press Release
Federal, state and local authorities have arrested eight individuals on federal drug trafficking charges, including 41-year-old Texas Syndicate Lieutenant Hilario Nieto whose sentence President Barack Obama previously commuted, announced U.S. Attorney Gregg N. Sofer; Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division; and Texas Department of Public Safety (DPS) Director Steven McCraw.
Those arrested Tuesday include: Hilario Nieto (aka “Shorty”) of San Antonio; 31-year-old Daniel Castaneda of San Antonio; 29-year-old Joe Sanchez of San Antonio; 40-year-old Melissa Molina of San Antonio; 31-year-old Deanna Diaz of San Antonio; 56-year-old former Texas Mexican Mafia member Martin Reynosa of San Antonio; and 58-year-old Maria Rivas of San Antonio. Texas Syndicate Lieutenant Danny Rivas (aka “Pelon,” “Klumzee”), 41 of San Antonio, was previously arrested on this indictment.
An eight-count federal indictment charges the above-named defendants with one count of conspiracy to possess with intent to distribute methamphetamine and heroin. In addition, Danny Rivas is charged with two counts of possession with intent to distribute methamphetamine. Castaneda and Molina are also charged with one count of possession with intent to distribute methamphetamine. The indictment also charges Reynosa and Maria Rivas with five counts of possession with intent to distribute heroin.
The indictment alleges that the defendants have conspired since June 2019 to distribute methamphetamine and heroin in the San Antonio area. Search warrants executed in conjunction with arrest warrants resulted in the seizure of methamphetamine, heroin and two firearms.
In 2004, Nieto was sentenced to 248 months in federal prison on drug charges in the Western District of Texas. Scheduled to be released in 2021, President Barack Obama commuted Nieto's sentence in 2016. The commutation was effective August 2018.
“It is truly appalling that a man whose sentence the President previously commuted chose to flout that generous gift after being released from federal prison and resume gang-related drug dealing in the San Antonio community,” said U.S. Attorney Sofer.
“With these arrests, DEA and its federal, state and local law enforcement partners have dismantled an organization responsible for supplying large quantities of methamphetamine and heroin to communities in the San Antonio region,” said DEA Special Agent in Charge Whipple. “Methamphetamine and heroin trafficking, along with the associated crimes, are particularly destructive to the quality of life in our communities. DEA will continue to work with our law enforcement partners to target and eliminate these criminal organizations and hold them accountable for the destruction they cause.”
The DEA and DPS Criminal Investigations conducted this investigation with assistance from IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement, U.S. Marshals Service, Bexar County Sheriff’s Office, Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation called Operation Blended Familia. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Upon conviction of the methamphetamine related charges, the defendants face between 10 years and life in federal prison. Upon conviction of the heroin-related charges, the defendants face up to 20 years in federal prison.
All of the defendants remain in federal custody. Those arrested on Tuesday are expected to have their detention hearings in U.S. Magistrate court in San Antonio beginning next week.
Assistant U.S. Attorney Sarah Ella Spears is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.#####
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.
Revere Man Pleads Guilty to Money Laundering and Cocaine ChargesRead the Press Release
BOSTON – A Revere man pleaded guilty to attempting to launder money to Colombia and cocaine possession.
Jairo Agudelo, 34, pleaded guilty on Dec. 8, 2020 to money laundering conspiracy, substantive money laundering and possession with intent to distribute cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 30, 2021.
According to court documents, investigators seized approximately $200,000 in cash from Agudelo when he attempted to launder drug proceeds from Massachusetts to Colombia in February 2019. When investigators executed a search warrant at a Revere apartment used by Agudelo as a stash house for his cocaine distribution, they located approximately 400 grams of cocaine, as well as drug packaging materials and over $11,000 in cash.
The charges of money laundering and money laundering conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years and up to life of supervised release and a fine of $1 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division made the announcement today. Critical assistance was provided by the Boston Police Department; Massachusetts State Police; Revere Police Department; U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations; and the United States Marshals Service. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
This investigation, dubbed “Operation Týr,” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Repeat Offender Is Sentenced to More Than 10 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced today a repeat offender to 121 months in prison for possession of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Robert Norris Forehand, 39, of Iron Station, N.C. was also ordered to serve a lifetime of supervised release, register as a sex offender after he is released from prison, and to pay $6,000 in restitution to victims and special assessments to the United States totaling $22,000.
“Child pornography is repugnant, devastates our moral standards, and injures some of the most vulnerable members of our society,” said U.S. Attorney Murray. “We have to protect children from offenders like Forehand, who continue to violate the law to satisfy their appetite for appalling images depicting the sexual abuse of children. Thanks to the efforts of the U.S. Probation Office, this repeat offender has been removed from society for a very long time, and can no longer cause harm to children.”
According to court documents and information introduced at the sentencing hearing, Forehand was convicted in 2009 in the Western District of North Carolina of possession of child pornography. He was sentenced to more than nine years in prison and was ordered to serve 10 years under court supervision. As part of his post-conviction release conditions, Forehand was prohibited from possessing any type of electronic device that could access the internet, and was ordered to undergo risk assessment testing to monitor compliance with the terms of his supervised release.
According to court records, on July 10, 2019, during a court-ordered risk assessment examination, Forehand’s U.S. Probation Officer determined that Forehand possessed a computer that he built himself, which contained three hard drives that were unmonitored by the U.S. Probation Office (USPO). During a subsequent search of Forehand’s residence, USPO recovered the computer and the three hard drives. A forensic examination of the seized devices by USPO and the FBI revealed that they contained child pornography. In addition, court records show that one of the hard drives had been “wiped” by Forehand, however, law enforcement were able to locate the child pornography in Forehand’s deleted files. According to court records, law enforcement determined that Forehand possessed more than 400 images of child pornography, some of which depicted the sexual abuse of prepubescent children and sadistic and masochistic conduct.
In handing down the sentence, Judge Bell emphasized the seriousness of the defendant’s offense, and noted the vicious and enduring impact the defendant’s crimes have on the scores of innocent children victimized through the repeated collection and distribution of images and videos memorializing their violent sexual abuse.
In August 2020, Forehand pleaded guilty to possession of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended the U.S. Probation Office for their investigation of this case and thanked the FBI for their invaluable assistance.
Assistant United States Attorney Courtney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted the 2009 case. Assistant United States Attorneys Mark T. Odulio and Emily Wasserman, of the U.S. Attorney’s Office in Charlotte, prosecuted the 2020 case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Releases Status ReportRead the Press Release
The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives (AI/AN) today released a status report detailing accomplishments during its first year and outlining its strategy for the next 12 months. The President’s Executive Order (E.O.) 13898, set forth a range of tasks to be completed over the two-year life of the Task Force, with required reports at the end of each year. Attorney General William P. Barr and Secretary of the Interior David L. Bernhardt transmitted the status report to President Trump, and notably characterized these accomplishments as, “a productive first year of Task Force operations.”
In its first year, the Task Force, also known as Operation Lady Justice (OLJ), held more than 15 in-person and remote meetings with tribes, individuals and stakeholder groups, and established and convened 10 working groups to address specific mandates of the executive order, including developing protocols, solving cold cases and expanding outreach and awareness. Readouts of the sessions can be found on the Operation Lady Justice website.
“American Indians and Alaska Natives experience some of the highest rates of violence in the country, a situation that is all the more tragic in light of the generations of trauma already suffered by indigenous people,” said Attorney General Barr. “Despite the COVID-19 pandemic and the unprecedented challenges it posed, the Task Force continued to progress with appropriate urgency to diagnose the symptoms of this intractable problem. They sought the help and input from tribal leaders and tribal communities to develop sustainable protocols that will lead to long-term resolutions tribal communities need and deserve.”
“The Trump Administration has taken numerous actions to support Tribal communities with a particular focus on addressing the crisis of missing and murdered Native Americans and Alaska Natives,” said Secretary of the Interior David L. Bernhardt. “The new cold case offices that we stood up around the country are already providing much needed support in a critical effort to resolve missing and murdered cases and provide justice for victims and their families.”
“It has been a true honor to represent the U.S. Department of Health and Human Services on the Operation Lady Justice Task Force and serve Native American communities and populations,” said Commissioner Jeannie Hovland of the Administration for Native Americans. “Tribal leaders and community advocates have been on the forefront of this issue for years. At their request, I have elevated the critical role prevention must play in reducing the number of Native Americans who tragically go missing or are murdered. With their partnership and guidance, HHS is taking unprecedented action on this issue using a public health approach. This means addressing the root causes of this issue. I believe that together we can, and will, end the crisis of Missing and Murdered Native Americans.”
“President Trump was the first President to formally recognize the long-overlooked issue of missing and murdered Native Americans, but more importantly he demanded action,” said Doug Hoelscher, Assistant to the President and Director of White House Intergovernmental Affairs. “The work of the Operation Lady Justice Task Force, created by President Trump’s executive order, is laying a solid foundation for long-sought progress by improving data coordination, enhancing collaboration among various law enforcement entities, creating several cold case offices, and elevating support for victims and their families. Thanks to President Trump’s leadership and the hard work of the Task Force members, tribal partners, and advocates, missing and murdered Native Americans are forgotten no more!”
President Trump signed E.O. 13898 on November 26, 2019, establishing the Operation Lady Justice Task Force, to “address the legitimate concerns of American Indian and Alaska Native communities regarding missing and murdered people.” The order requires the Task Force to submit a status report in November 2020 and a final report in November 2021. Attorney General Barr and Secretary Bernhardt are co-chairs, with Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan and Assistant Secretary for Indian Affairs Tara Katuk Mac Lean Sweeney serving as their designees. Marcia Good, from the Justice Department’s Office of Tribal Justice, is executive director.
As noted in the report, the Task Force will continue to consult with tribal leaders and solicit stakeholder feedback as it develops strategies for strengthening investigations, raising public awareness, and improving data collection and information sharing. Submission of the report caps National Native American Heritage Month. A list of Task Force members follows:
- Katherine (Katie) Sullivan, Principal Deputy Assistant Attorney General Office of Justice Programs U.S. Department of Justice Designee for Attorney General
- Tara Sweeney, Assistant Secretary for Indian Affairs U.S. Department of the Interior Designee for the Secretary of the Interior
- Charles (Charlie) Addington, Deputy Bureau Director Bureau of Indian Affairs, Office of Justice Services U.S. Department of the Interior
- Jean (Jeannie) Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans U.S. Department of Health and Human Services
- Laura Rogers, Principal Deputy Director Office on Violence Against Women U.S. Department of Justice
- Trent Shores, United States Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General's Advisory Committee
- Terry Wade, Executive Assistant Director Criminal, Cyber, Response and Services Branch Federal Bureau of Investigation
Plains Man Sentenced to Prison for Making and Sending Child Pornography VideosRead the Press Release
MISSOULA – A Plains man who admitted creating and transporting child pornography videos was sentenced today to 240 months in prison following by 10 years of supervised release, Acting U.S. Attorney Leif Johnson said.
David Paul Farrar, 58, pleaded guilty on Aug. 4 to sexual exploitation of a child and transportation of child pornography.
U.S. District Judge Dana L. Christensen presided. Farrar was detained.
“Homeland Security Investigations special agents are proud to work closely with the Sanders County Sheriff’s Department to target and arrest individuals who prey on women and children in what should be the safety of their own homes,” said Steven Cagen, Special Agent in Charge, HSI Denver. “Farrar’s sentencing sends a clear message, if you harm children, we will work tirelessly to find you and to bring you to justice.”
In court documents filed in the case, the prosecution said that while Farrar was away in Idaho in June 2019, he allowed a friend to stay at his home in Plains. The friend viewed electronic storage cards found in Farrar's house and saw that they contained sexually explicit photographs of a female child. The friend reported her findings to law enforcement.
An HSI agent obtained a search warrant for Farrar's residence and seized multiple computers and electronic storage devices. An analysis of the seized items determined they contained video files of the victim and were created sometime in 2013 or 2014. The videos were created using a cell phone or digital camera and contained lewd and lascivious images. Agents determined Farrar created the videos because the viewer can see his hand and hear his voice. Farrar also admitted to agents that he created the videos of the victim.
Agents also found a video of two other minor girls that contained lewd and lascivious images. The investigation determined that Farrar electronically transferred that video to a file on one of his computers.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by HSI.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Pittsford Psychiatrist Going to Federal Prison for Bilking Hundreds of Thousands of Dollars from Health Care Benefit ProgramsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Muhammad Cheema, MD, 47, of Pittsford, NY, who was convicted of health care fraud, was sentenced to serve 18 months in prison by U.S. District Judge Charles J. Siragusa. The defendant was also to pay restitution totaling $813,495.48 to the victim health care benefit programs that he defrauded.
Assistant U.S. Attorney John J. Field, who handled the case, stated that between 2013 and 2017, Dr. Cheema submitted approximately 5,000 false claims for psychotherapy services that he did not render. Based on these false claims, the defendant obtained payments totaling approximately $218,368 from health care benefit programs, including those operated by Excellus, MPV and others. In addition, from time to time, in response to audits and otherwise, Cheema created false medical records in an effort to substantiate his fraudulent billings and conceal his scheme.
The sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and investigators from the New York State Department of Financial Services-Criminal Investigation Bureau, under the direction of Superintendent Linda Lacewell.
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Pennsylvania man pleads guilty to leading tile fraud ringRead the Press Release
U.S. Attorney Justin Herdman announced today that Chad M. Stellato, age 47, of Langhorne, Pennsylvania, entered a plea of guilty to an information charging him with one count of conspiracy to commit wire fraud and six counts of wire fraud.
According to court documents, from January of 2013 through January of 2016, Stellato and his co-conspirators devised a scheme to defraud the home improvement store Lowe’s Companies, Inc. (Lowe’s) through fraudulent merchandise purchases and returns at Lowe’s store locations in Alliance, Boardman and in other states.
To carry out their scheme, Stellato provided the funding for his co-conspirators to visit Lowe’s store locations and purchase large quantities of tile. The co-conspirators would place the boxes of tile in shopping carts and stack similarly packaged but lower-priced boxes of tile on top in order to conceal the higher-priced tile underneath. The co-conspirators would then take the shopping carts to the check-out counter and purchase all the tile, including the higher-priced title, at the lower price. As a result, Stellato and his co-conspirators were able to obtain multiple boxes of tile at a much lower price than the retail value.
The co-conspirators would then travel to a different store location and return the title, without a receipt, for a full refund placed on a Lowe’s stored value card. Stellato would provide funding to his co-conspirators to obtain the necessary identification documents required to obtain these refunds. Consequently, Stellato and his co-conspirators received more money in refunds from the returned boxes of tile than what they actually paid to purchase the tile.
Stellato would retrieve the stored value cards from his co-conspirators and use them to purchase items from Lowe’s, thereby receiving the value of the goods at a discounted cost. In total, Stellato and his co-conspirators are accused of defrauding Lowe’s of approximately $444,000.
Stellato is scheduled to be sentenced on April 1, 2021, before U.S. District Court Judge James S. Gwin.
The investigation preceding the indictment was conducted by the United States Secret Service and the Ohio State Highway Patrol. This case is being prosecuted by Assistant U.S. Attorney Brendan D. O’Shea.
Pain Clinic Medical Providers Sentenced for Their Roles in Operating Pill Mills in TennesseeRead the Press Release
Three defendants, all of whom are nurse practitioners, were sentenced to prison for their roles in prescribing massive quantities of opioids from pill mills in Knoxville, Tennessee.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, and Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field office made the announcement.
Cynthia Clemons was sentenced to 42 months in prison, Courtney Newman was sentenced to 40 months in prison, and Holli Carmichael Womack was sentenced to 30 months in prison.
Clemons and Newman, both of Knoxville, Tennessee, and Womack, of Crossville, Tennessee, were sentenced by U.S. District Judge Thomas A. Varlan. All three defendants were found guilty by a jury on Feb. 13, 2020, of using drug-involved premises for the purposes of distributing opioid narcotics.
The evidence at trial proved that, collectively, Clemons, Newman, and Womack prescribed millions of tablets of oxycodone, oxymorphone, and morphine from the pill mills. All told, the pill mills where these defendants worked generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, each of which the jury determined were drug-involved premises, i.e., pill mills. The proof at trial established that the vast majority of the patients at these pill mills were addicted to opioids.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Tennessee, the Criminal Division’s Organized Crime and Gang Section (OCGS), and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Justice Department’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot with OCGS and Assistant U.S. Attorney Tracy L. Stone prosecuted the case.
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.
Omaha Man Sentenced for Selling MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Edward Bean, 53, of Omaha, Nebraska, was sentenced on December 9, 2020 in federal court for possession of methamphetamine with intent to distribute. United States District Judge Brian C. Buescher sentenced Bean to 130 months’ incarceration to be followed by five years of supervised release. There is no parole in the federal system.
On February 27, 2020, Omaha Police utilized a confidential informant to purchase methamphetamine from Bean at his home. Officers then obtained a search warrant. During a search of Bean’s home, officers found 80 grams of actual methamphetamine and a digital scale. In a post-arrest interview, Bean admitted to distributing methamphetamine.
This case was investigated by the Omaha Police Department.
Newport Woman Pleads Guilty to Wire Fraud and Stealing from Federally Funded ProgramRead the Press Release
BANGOR, Maine: A Newport woman pleaded guilty today in federal court to wire fraud and federal government program theft, U.S. Attorney Halsey B. Frank announced.
According to court records, from June 2015 through April 2019, Sheri G. Walsh, 56, embezzled more than $250,000 from two nonprofit organizations where she worked. Walsh carried out the scheme by fraudulently transferring funds from one organization to another, then converting the funds to her own use. During the relevant period, one of the nonprofits received federal grant monies from both the U.S. Environmental Protection Agency and the U.S. Department of Agriculture.
Walsh faces up to 20 years in prison on the mail fraud charge and up to 10 years in prison on the theft charge. She also faces up to three years of supervised release and a fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Ellsworth Police Department, the FBI, the EPA Office of Inspector General and the USDA Office of Inspector General investigated the case.
Natick Psychiatrist Indicted for Billing Medicare and Private Insurance Companies for Services Never Rendered and for ObstructionRead the Press Release
BOSTON – A Natick psychiatrist was arrested today in connection with charges that he billed Medicare and private insurance companies for over $10 million in treatments he did not provide and then obstructed justice in an attempt to conceal his crimes.
Gustavo Kinrys, 49, of Wellesley, was indicted on seven counts of wire fraud, six counts of false statements relating to health care matters, one count of falsification of documents and one count of obstructing a criminal health care investigation. Kinrys was arrested today and will appear via videoconference in federal court in Boston this afternoon.
“Fraud in the Medicare system is a persistent, long-term problem,” said United States Attorney Andrew E. Lelling. “Physicians who defraud the system are taking dollars that could otherwise be used to support patient health. We will continue to prioritize these cases.”
“We take very seriously our responsibility to safeguard taxpayer funds by eliminating fraud within our federal healthcare system,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s arrest and the charges alleged in the indictment serve as a strong reminder that we will not tolerate fraud against our federal healthcare system or acts of obstruction that attempt to conceal those schemes.”
“Dr. Kinrys is accused of exploiting our healthcare system—paid for, in part, by taxpayer dollars—in order to line his own pockets without any regard for the harm his actions would cause. He billed public and private insurance companies more than $10.6 million for medical treatments he never provided, and then tried to cover it up by obstructing the investigation,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Anyone involved in, or entertaining similar activity should know that health care fraud is a priority for the FBI, and we will pursue anyone trying to steal from this country’s vital health care system.”
“This case illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens. The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. We applaud the collaboration of our investigative partners in combating fraud in our healthcare system,” said Anthony M. DiPaolo, Executive Director of the Massachusetts Insurance Fraud Bureau.
Kinrys was a licensed psychiatrist who owned and operated Advanced TMS Associates, located in Natick, Mass. Among other services, Kinrys offered transcranial magnetic stimulation (TMS) therapy and psychotherapy to patients suffering from depression. TMS therapy is a noninvasive method of brain stimulation that uses rapidly alternating or pulsed magnetic fields to induce electrical currents directed at a patient’s cerebral cortex.
The indictment alleges that between January 2015 and December 2018, Kinrys engaged in a variety of fraudulent billing schemes in which he sought and received reimbursement for services he did not render. For example, Kinrys billed Medicare and private insurers over $10 million for thousands of TMS sessions he never provided, including over 8,000 sessions he claimed were provided to 75 patients who, in fact, never received a single session of the therapy. Kinrys allegedly billed Medicare and private insurers for hundreds of thousands of dollars’ worth of psychotherapy sessions he never provided, including over 1,000 face-to-face sessions he falsely claimed he provided while he or his patients were in fact out of the country. On hundreds of occasions, it is alleged that Kinrys billed Medicare and private insurers for having provided more than 24 hours’ worth of psychotherapy services in a single day, including one day in 2017 when he claimed he had provided hour-long psychotherapy sessions to 79 different patients.
To further his fraudulent billing scheme, Kinrys allegedly made numerous false statements to his patients, the billing company with which he worked and the insurers to whom he submitted claims seeking reimbursement. When Medicare, private insurers, and the Department of Health and Human Services (HHS) sought records from Kinrys pertaining to certain of his claims, he took steps to conceal his fraudulent conduct by making false representations and creating false documentation purporting to show that he had provided thousands of treatments he had billed for, but never rendered. For example, in response to a July 2018 subpoena from the HHS’s Office of Inspector General seeking medical records for 10 of his patients, Kinrys allegedly created documents – and ordered his office workers to create documents – falsely stating that those patients had received dozens of treatments they had never been provided.
The charges of wire fraud and destruction or falsification of records each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of false statements relating to health care matters and obstruction of a criminal investigation of a health care offense each provide for a sentence of up to five 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.
U.S. Attorney Lelling, HHS-OIG SAC Coyne, FBI Boston SAC Bonavolonta and Massachusetts IFB Executive Director DiPaolo made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
NDTX Round-Up: December 4-10Read the Press Release
GUILTY PLEA – VANCY BRIDGES
On December 4, Vancy Bridges, 76, plead guilty to misprision of a felony. Bridges worked as a doctor and supervised nurse practitioners for in-home patients. Bridges was unaware that that a co-worker had been previously convicted of healthcare-related fraud and had no medical training. In July 2016, Bridges observed a patient list for patients and visits that he did not perform. Bridges questioned why these patients were listed as attributed to himself. Bridges did not report the fraudulent activity to a law enforcement authority after he became aware of it. He admitted to knowing that the conduct was illegal and that another individual used his unauthorized signature to bill Medicare. Vancy faces up to 3 years in federal prison for his crimes. This case was investigated by the Department of Health and Human Services OIG and the FBI. Assistant U.S. Attorney John De La Garza is prosecuting this case.SENTENCING – LARRY DONELL BOOKER
On December 7, Larry Donell Booker, 61, was sentenced to 37 months in federal prison for conspiracy to possess with intent to distribute Hydrocodone. Booker met a confidential government source to arrange a transaction of Hydrocodone. Two days later, Booker sold the government source 1,000 pills of suspected Hydrocodone in exchange for U.S. currency. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Myria Boehm is prosecuted this case.GUILY PLEA – KEVIN RAY STANDFIELD
On December 8, Kevin Ray Standfield, 36, plead guilty to possession of a firearm by a convicted felon, possession with intent to distribute a controlled substance, and possession of a firearm in furtherance of a drug trafficking crime. Dallas Police Officers observed Standfield at a drug house conducting what officers believed were drug transactions. Officers obtained a search warrant for the residence. While executing the search warrant, officers found Standfield in the residence running down the hallway into the bathroom with a firearm and suspected cocaine in his hands. Officers recovered powered cocaine, methamphetamine, marijuana, assorted pills, and a firearm at the residence. Standfield faces up to life in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Dallas Police Department. Assistant U.S. Attorney John Boyle is prosecuting this case.SENTENCING – ROBERT ELMER KERR
On December 10, Robert Elmer Kerr, 50, was sentenced to 150 months for receipt of child pornography. Kerr admitted to downloading and possessing thousands of files of child pornography on his laptop. Law enforcement conducted a forensic analysis of Kerr’s laptop and external hard drive and discovered 24,000 images and 1,000 videos depicting sexually explicit conduct and the lewd and lascivious exhibition of minors. This case was investigated by the FBI and the Irving Police Department. Assistant U.S. Attorney Camille Sparks is prosecuted this case.SENTENCING – MARIO ISABEL CARILLO PERALES
On December 1, Mario Isabel Carillo Perales, 37, was sentenced to 11 years in federal prison for possession with the intent to distribute a controlled substance. Undercover agents contacted a Mexico based methamphetamine drug dealer who agreed to sell one kilogram of methamphetamine. Perales delivered one kilogram of methamphetamine to undercover agents in exchange for U.S. currency. Perales admitted that the methamphetamine he sold originated from Mexico. He also indicated that he distributed 3.5 kilograms of methamphetamine in Dallas and one kilogram in Oklahoma. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull prosecuted this case.SENTENCING – CHRISTOPHER DEON HORTON
On December 3, Christopher Deon Horton, 35, was sentenced to 10 years in federal prison for possession with intent to distribute cocaine. In September 2019, Horton possessed approximately 100 grams of cocaine which he intended to distribute. This case was investigated by Drug Enforcement Administration and the Ennis Police Department. Assistant U.S. Attorney Phelesa Guy prosecuted this case.Montgomery County Man Sentenced to 268 Months for Drug Trafficking and Firearms OffensesRead the Press Release
FRANKFORT, Ky. - A Montgomery County, Ky., man, Scotty Allen Jones, 48, was sentenced on Thursday to 268 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for distributing a fentanyl and heroin mixture, possessing acetylfentanyl with intent to distribute, possessing a firearm in furtherance of drug trafficking, and being a felon in possession of firearms.
As part of his plea agreement, Jones admitted that, in September 2018, he sold quantities of heroin and fentanyl mixtures to a confidential informant, who was working with law enforcement. During one of the drug transactions, Jones admitted to possessing a firearm for the purpose of furthering his drug trafficking
Jones also admitted to pawning at least two firearms, at a local pawn shop in Mt. Sterling, Ky., in February 2019. Jones has prior felony convictions for drug trafficking and burglary, and was prohibited from possessing firearms.
In March 2019, officers with the Kentucky Department of Fish and Wildlife attempted to arrest Jones on several outstanding warrants, while Jones was at a gas station in Jeffersonville, Ky. Jones fled from the officers, and after vehicle and foot pursuits, Jones was apprehended. Upon his arrest, Jones was found in possession of 10 grams of acetylfentanyl, a dangerous Schedule I controlled substance. As part of his plea agreement, Jones admitted that intended to distribute the acetylfentanyl in his possession.
Jones further admitted to possessing eight firearms, which were discovered by law enforcement during a search of barn in Jeffersonville, in April 2019.
Jones pleaded guilty in July 2020.
Under federal law, Jones must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Acting Commissioner Lt. Colonel Phillip Burnett, Kentucky State Police; and Colonel Eric Gibson, Law Enforcement Director, Kentucky Department of Fish and Wildlife jointly announced the sentence.
The investigation was conducted by ATF, KSP, and the KY Dept. of Fish and Wildlife. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Duncan, coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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Monongalia County man admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Clay Westbrook, of Morgantown, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Westbrook, age 39, pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Westbrook admitted to having methamphetamine in December 2019 in Monongalia County.
Westbrook faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Monmouth County Man Charged with Being Felon in Possession of WeaponRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial appearance today after being charged with illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Lashawn Alford, 27, of Asbury Park, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Douglas E. Arpert and was detained pending a bail hearing.
According to documents filed in this case and statements made in court:
On July 20, 2020, Monmouth County Prosecutor’s Office Detectives and Neptune City Police Officers responded to an apartment complex in Neptune City to conduct surveillance of suspected gang activity. Law enforcement officers observed Alford, a previously convicted felon, exit an apartment and get into the back of a car that drove out of the complex. Law enforcement knew Alford to be a member of the Queen Street II Bloods street gang and determined that Alford had an outstanding warrant for his arrest in Asbury Park. Law enforcement stopped the car and arrested Alford. A loaded Smith and Wesson, model M&P Compact, .22 caliber pistol was located on the floor of the car where Alford had been sitting.
The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican Citizen Arrested for SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Mario Flores-Arias, age 32, and a citizen of Mexico, was arrested on December 5 and charged by criminal complaint with alien smuggling.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
The criminal complaint alleges that Flores-Arias was arrested while transporting three foreign nationals who had illegally crossed into the United States through the woods near Chateaugay, New York. Border Patrol Agents stopped Flores-Arias’s vehicle and detained the occupants.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Flores-Arias appeared before United Magistrate Judge Gary L. Favro on December 8 and was ordered detained pending trial.
If convicted, Flores-Arias faces up to 5 years in prison. The three occupants of the vehicle, all citizens of Vietnam, were found to be illegally present in the United States. They were detained and expelled to Canada.
This case is being investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Jeffrey Stitt.
Methamphetamine Dealer Sent to Federal Prison for Nearly Fifteen YearsRead the Press Release
A man who intended to distribute over a pound of methamphetamine was sentenced December 9, 2020, to more almost 15 years in federal prison.
Tyson Wahlen, age 34, from Dodgeville, Wisconsin, received the prison term after a June 23, 2020 guilty plea to one count of possession with intent to distribute a controlled substance.
In a plea agreement, Wahlen admitted that on December 3, 2019, law enforcement conducted a traffic stop on his car for speeding in Dubuque, Iowa. During the traffic stop, a K-9 was deployed and alerted to the odor of narcotics coming from Wahlen’s car. Officers searched the car and recovered a yellow backpack from the front passenger floorboard. The backpack contained over 550 grams of methamphetamine, over four grams of marijuana, a digital scale, and a couple of pipes. Wahlen intended to distribute some or all of the methamphetamine inside the yellow backpack to other individuals.
Wahlen was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wahlen was sentenced to 178 months’ imprisonment, and he must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Wahlen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the Dubuque Drug Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01008.
Memphis Man Sentenced to 20 Years in Federal Prison for Multiple Armed Business RobberiesRead the Press Release
Memphis, TN – Aaron Whitley, 21, has been sentenced to 240 months in federal prison for multiple Hobbs Act business robberies and brandishing a firearm during and in relation to those crimes of violence. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on July 30, 2019, at 10:50 pm, Whitley stole a Silver 2010 GMC Terrain parked outside of Circle K on North Germantown Parkway. The owner of the SUV reported that he left his car running while he walked inside the business, and turned around just in time to see someone drive away in his car. The owner worked as a security guard and his uniform, security badge and loaded 9mm pistol were in the car at the time. Whitley took the car, security guard uniform and the gun, and within twenty minutes committed three armed robberies of various convenience store businesses on Austin Peay Highway.
Specifically, Whitley took at gunpoint $190.00 and 6 packs of Newport 100 cigarettes from Marathon gas station; he then drove to Exxon where he took at gunpoint approximately $250.00-$300.00 in cash and 6 packs of Newport cigarettes; And finally, Whitley took at gunpoint $36.00 from Circle K. The clerk at Circle K managed to put a tracking device in the bag he gave Whitley. Moments after the third robbery, deputies with the Shelby County Sheriff’s Office conducted a traffic stop for speeding on the GMC Terrain. Whitley, the driver was the only person in the car.
Evidence found in the car from all three robberies included, but was not limited to, 12 packs of Newport cigarettes, $430.55 in cash, a tracking device, a security guard shirt, and the 9mm pistol that matched the description given by the victims.
On December 9, 2020, U.S. District Court Judge Thomas L. Parker sentenced Whitley to 240 months in federal prison followed by four years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Robberies of businesses with a firearm are especially dangerous and violent due to the high risk of death and serious bodily injury by the simple squeeze of a trigger. Within the short span of 20 minutes, this young violent offender’s selfish and impulsive greed terrorized multiple victims – and rightly earned him a long sentence of 20 years in a federal prison."
The FBI Safe Streets Task Force and the Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Will Crow and Raney Irwin prosecuted this case on behalf of the government.
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Maryland Man Indicted on 13 Counts Related to Financial Exploitation of Two Elderly District ResidentsRead the Press Release
WASHINGTON – Thornton Fennell, 56, was indicted on October 26, 2020, and arrested on December 5, 2020, on charges involving the financial exploitation of two elderly District residents.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Karl Racine, Attorney General for the District of Columbia.
The indictment charged Fennell with three counts of Financial Exploitation of an Elderly Person (FEVA) and ten counts of First Degree Theft of a Senior Citizen. The charges involve fraudulently obtaining funds from two different elderly victims as well as using intimidation, deception, and undue influence to cause an elderly victim to take on a reverse mortgage for the benefit of another person. The theft charges involved $4,308 from one victim and $63,600 from the other.
An indictment is merely a finding of probable cause by the grand jury. All criminal defendants are presumed innocent until proven guilty.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors and vulnerable adults. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the Office of the Attorney General to prosecute cases of this kind.
In announcing the indictment and arrest, Acting U.S. Attorney Sherwin, Chief Newsham, and Attorney General Racine commended the work of those who investigated the cases from the District of Columbia’s Office of the Attorney General and MPD. They also cited the efforts of Special Assistant United States Attorney Jennifer C. Mika, on detail from the Office of the Attorney General to handle financial crimes cases involving elderly victims, and Assistant United States Attorney Chimnomnso Kalu, who investigated and are prosecuting the case for the U.S. Attorney’s Office for the District of Columbia with support from Paralegal Specialist Chad D. Byron.
Marlboro Woman Indicted for Welfare FraudRead the Press Release
BOSTON – A Marlboro woman was arrested today for fraudulently receiving Social Security disability benefits, MassHealth, Supplemental Nutrition Assistance Program (SNAP) benefits and Section 8 housing assistance.
Maribel Rodriguez, 61, was charged by criminal complaint with four counts of theft of public funds and two counts of making false statements. She will make an initial appearance before U.S. District Court Magistrate Judge David Hennessy this afternoon.
According to the indictment, over a period of approximately 12 years, Rodriguez stole $68,223 in Social Security benefits, $1,908 in MassHealth benefits, $21,790 in SNAP benefits (previously known as Food Stamps), and $161,277 in Section 8 housing assistance benefits. In June 2016, she falsely informed the Social Security Administration that she lived alone when, in fact, she was living with her husband. Similarly, Rodriguez falsely told the Marlborough Community Development Authority in May 2017 that she was the only member of her household.
The charges of theft of public funds provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making false statements provide for a sentence of up to five 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; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Service’s Office of Inspector General, Boston Regional Office; 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 is prosecuting the case.
The details contained in charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manchester Man Sentenced to 96 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Christopher Gelinas, 24, of Manchester, was sentenced to 96 months in federal prison for distributing methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Gelinas sold highly-pure methamphetamine to an individual who was cooperating with law enforcement officers on two occasions. On October 23, 2019, a cooperating individual bought methamphetamine from Gelinas at a residence in Concord. On November 18, 2019, a cooperating individual purchased methamphetamine from Gelinas in Boscawen.
Gelinas previously pleaded guilty on August 31, 2020.
“Even as we continue to struggle with the problems caused by opioids, methamphetamine continues to pose a serious danger to public health and safety in New Hampshire,” said U.S. Attorney Murray. “The increasing presence of highly-pure methamphetamine in the Granite State is presenting yet another challenge for our communities. We will continue to work closely with the DEA and all of our law enforcement partners to target the traffickers who sell this dangerous drug and to ensure that methamphetamine dealers are held accountable for their illegal conduct.”
“DEA will do everything in our power to bring to justice those who distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Gelinas accountable for his crimes but serves as a warning that DEA and its local, state and federal partners will work diligently to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police and the Concord Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Macon Firearms Trafficker Sentenced to Serve 16+ Years in Federal PrisonRead the Press Release
MACON, Ga. – A convicted felon was sentenced to serve more than 16 years in a federal prison today, the result of a lengthy investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bibb County Sheriff’s Office into illegal firearms trafficking in the Macon area, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Keon Hendley, 35, of Macon, was sentenced to serve 200 months in federal prison by U.S. District Judge Marc Treadwell after previously pleading guilty to one count possession of a firearm and one count possession of cocaine. In addition, Hendley was ordered to serve three years of supervised release following his imprisonment. There is no parole in the federal system.p
ATF agents, working with a confidential informant (CI), negotiated the purchase of large amounts of firearms from Hendley, a convicted felon, on four separate occasions in 2019 at various locations across Macon. In total, 23 firearms were obtained from Hendley during this operation, along with methamphetamine and cocaine. Five of those firearms were confirmed stolen by the ATF.
“Shutting down this prolific illegal arms dealer in the Macon community has undoubtedly prevented additional crimes and violence,” said U.S. Attorney Charlie Peeler. “The U.S. Attorney’s Office is working closely with our law enforcement partners in the quest to curb gun violence and crime, and we will hold those breaking the law accountable. I want to thank ATF and the Bibb County Sheriff’s Office for their excellent work investigating this case.”
“We must do all we can to take illegal guns off our streets,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “ Firearm traffickers like Keon Hendley put guns in the hands of criminals which leads to violence, destruction and heartache for so many of our communities. The Bibb County Sheriff is committed to reducing gun violence in Macon and throughout Bibb County and ATF will continue to do all we can to identify, investigate and arrest anyone who sells guns illegally and threatens the safety of our neighborhoods.”
“We can all be proud of the efforts of the Bibb Sheriff’s investigators and ATF agents to bring this gun peddling career criminal to justice. This case is a fine example of the success achieved by our local and federal law enforcement partnerships,” said Bibb County Sheriff David Davis.
The investigation was conducted as 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 see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Criminal Division Chief Michael Solis and Assistant U.S. Attorney Charles Calhoun prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Local man gets significant sentence for smuggling cocaine in car doorsRead the Press Release
McALLEN, Texas – A 55-year-old man from Palmview has been ordered to federal prison following his conviction of possession with intent to distribute approximately 28 kilograms of cocaine, announced U.S. Attorney Ryan Patrick.
Rodolfo Urive Jr. pleaded guilty June 18.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Urive to serve a 120-month sentence to be immediately followed by five years of supervised of release.
Urive attempted to pass the Falfurrias Border Patrol Checkpoint on Oct. 20, 2019. Law enforcement conducted a primary inspection and, during a free air sniff, a K-9 alerted to the presence of narcotics in the vehicle. In addition, an X-Ray examination also showed anomalies within three of the four doors.
A subsequent search of the vehicle revealed 23 packages concealed within the natural voids of the two passenger and rear driver side doors. They had an approximate weight of 28 kilograms and all tested positive for cocaine.
The drugs had an approximate street value of $750,000.
Urive admitted he was transporting the narcotics in his truck.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
The Drug Enforcement Administration conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Little Rock Woman Pleads Guilty to COVID Relief Fraud:Read the Press Release
LITTLE ROCK—A Little Rock woman pleaded guilty to bank fraud this afternoon after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the guilty plea of Ganell Tubbs, 41.
At today’s hearing, Tubbs admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.
“This defendant took almost two million dollars that were intended to keep small businesses afloat during COVID-related shutdowns,” stated U.S. Attorney Hiland. “Hardworking Arkansans needed these funds to pay their employees and support their families, and we will not tolerate fraudsters who lie to obtain these funds and then use them for their personal enjoyment. We ask anyone with information on suspected PPP fraud to please report it.”
The indictment, which was returned by a grand jury on July 7, 2020, charges Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs pleaded guilty today to one count of bank fraud in exchange for dismissal of the remaining charges.
Tubbs’ plea was accepted this afternoon by United States District Judge Brian S. Miller, who will sentence Tubbs at a later date. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey are prosecuting the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Keshena Man Indicted for Unlawful Possession of Firearm on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 8, 2020, a federal grand jury indicted Martin W. Penass, a/k/a “Aptickasic Hawpetoss” (age: 42), of Keshena, for being a Felon in Possession of a Firearm, in violation of 18 U.S.C. 922(g). If convicted, Penass faces a maximum sentence of ten years in prison, up to three years on supervised release, up to a $250,000 fine, and a $100 Special Assessment.
According to the indictment, on or about June 25, 2020, despite knowing he was prohibited from doing so, Penass possessed a semiautomatic rifle of a design commonly referred to as an “AR-15” while at a remote area outside Neopit, which is a community on the Menominee Indian Reservation.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see https://go.usa.gov/xpBrs
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
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Keshena Man Indicted for Burglary & Unlawful Possession of Firearms on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 8, 2020, a federal grand jury indicted Austin A. Kaquatosh (age: 27), formerly of Keshena, for his alleged involvement in a burglary and unlawful possession of firearms during an incident at a residence on the Menominee Indian Reservation. The indictment contains the following counts:
COUNT
CHARGE
MAXIMUM SENTENCE
One
Burglary
18 U.S.C. § 1153 and Wis. Stat. § 943.10(am)(a)
90 months in prison
Two
Felon in Possession of a Firearm
18 U.S.C. §§ 922(g)(1) and 924(a)(2)
120 months in prison
If convicted, in addition to the maximum imprisonment terms listed above, Kaquatosh would face fines and a term of supervised release.
According to the indictment, on or about June 9, 2020, Kaquatosh entered a residence without permission and stole several items, including firearms. In doing so, Kaquatosh allegedly possessed a firearm despite knowing he was prohibited from doing so.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see https://go.usa.gov/xpBrs
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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.
# # #
For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Follow us on Twitter
Kelvin John Mata Tedtaotao Sentenced for Conspiracy to Distribute over 50 Grams of MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Kelvin John Mata Tedtaotao, age 37, from Merizo, Guam, was sentenced in the United States District Court of Guam to 30 months imprisonment for Conspiracy to Distribute Over 50 Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846. The Court also ordered three years of supervised release following imprisonment and $1,692 in restitution to the U.S. Postal Inspection Service and Homeland Security Investigations. The defendant must also perform 100 hours of community service and pay a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On February 14, 2018, Tedtaotao received two packages that had been mailed to Guam via the United States Postal Service (USPS) by another individual. Prior to USPS delivery, law enforcement removed the methamphetamine from both packages and replaced it with a sham substance. Tedtaotao believed the packages contained methamphetamine, which he intended to distribute to others. The combined weight of the methamphetamine was approximately 223 grams, with a purity of 98%, as determined by the United States Postal Drug Laboratory.
U.S. Attorney Anderson stated, “This case sends an important message to drug traffickers who use our mail system to facilitate their illegal activity. Anyone involved with the shipment of drugs in the mail can become the target of an investigation and face substantial time in a federal prison. I applaud the efforts of these federal agencies in their continuing enforcement operations.”
This case was a result of a joint investigation by the U.S. Postal Inspection Service, Homeland Security Investigations, and the Drug Enforcement Administration. The case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.
Keene Man Pleads Guilty to Participating in Drug Trafficking ConspiracyRead the Press Release
CONCORD - Roland Farnsworth, 37, of Keene, pleaded guilty on Wednesday in federal court to conspiracy to distribute, and possess with intent to distribute, fentanyl and crack cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in June of 2019, the Keene Police Department began investigating a possible drug trafficking operation in the Keene area. As part of their investigation, several cooperating individuals made controlled purchases of drugs, including fentanyl, from Farnsworth. The purchases took place at or near Farnsworth’s residence. In September, 2019, search warrants were obtained for Farnsworth’s residence, his cell phone, and a vehicle. The contents of the cell phone, along with Farnsworth’s admissions, confirmed he was selling fentanyl and crack cocaine to numerous individuals in the Keene area.
Farnsworth is scheduled to be sentenced on March 18, 2021.
“Drug traffickers make dangerous substances available for sale in Cheshire County and throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to bring criminal charges against the dealers who peddle illegal drugs to Granite Staters. Traffickers should expect that they will be arrested and brought before the federal court to face justice.”
“Those who deal in and distribute fentanyl and other poisons in our communities will be held accountable.” said David Magdycz, acting Special Agent in Charge of Homeland Security Investigations, Boston. “We continue to work with our New Hampshire law enforcement partners and the U.S. Attorney for New Hampshire to combat the crimes committed in our region.”
This matter was investigated by Homeland Security Investigations with assistance from the Keene Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Justice Department Announces Additional Distribution of more than $488 Million to Victims of Madoff Ponzi SchemeRead the Press Release
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its sixth distribution of approximately $488 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to almost $3.2 billion to nearly 37,000 victims worldwide.
In this distribution, payments will be sent to over 30,000 victims across the globe, bringing their total recovery to 80.05 percent. This distribution represents the sixth in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. The MVF has received over 65,000 petitions from victims in 136 countries.
“With the $488 million distributed today, the department has now returned almost $3.2 billion to Madoff’s victims, allowing them to recover more than 80 percent of what they lost,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This exceptional work – and there is more to come – has been made possible by the department’s steadfast commitment to the pursuit of the proceeds of fraud through civil forfeiture.”
“This office continues its efforts to seek justice for victims of history’s largest Ponzi scheme,” said Acting U.S. Attorney Audrey Strauss of the Southern District of New York. “Today’s additional payments of more than $488 million by this office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represent the sixth in a series of distributions that will leave victims with compensation for more than 80 percent of their losses. That is an extraordinary level of recovery for a Ponzi scheme – but our work is not yet finished, and the office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes continues.”
For decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle.
On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.
The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings. The Department of Justice also acknowledges the sacrifice of numerous individuals during this period of quarantine due to COVID-19 to ensure that this distribution occurred and remained on schedule.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
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.
Jason Autry Federally Indicted for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Jason Wayne Autry, 46, of Holladay, Tennessee, has been federally indicted for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the return of the indictment today.
According to allegations contained in a previously filed federal criminal complaint, on December 3, 2020, a Benton County Sheriff’s deputy encountered Autry, who was known to be a convicted felon and thus prohibited from possessing firearms under state and federal law. The deputy initially observed a male subject, later identified as Autry, lying down in a field. Autry was searched and no weapons were found on his person. He then left the scene on foot.
After Autry walked away, the deputy noticed a Marlin 30/30 rifle where Autry had been lying on the ground in the field. The deputy secured the firearm, returned to his patrol vehicle, and followed Autry, who was located walking down the driveway to his residence in Holladay, Tennessee. The deputy ordered Autry to stop, and Autry complied. The deputy then asked Autry about the rifle, and Autry stated he was attempting to shoot a deer with the gun, and that he hid in the field when he observed the deputy’s patrol car.
Autry has several prior felony convictions, including Facilitation of Especially Aggravated Kidnapping and Solicitation of First Degree Murder, which arose out of the abduction and murder of Holly Bobo in Decatur County, Tennessee in April 2011. Autry also has prior state convictions for Aggravated Burglary, Burglary, Theft over $10,000, and Manufacturing a Schedule II Controlled Substance. Autry also has a prior federal conviction for being a convicted felon in possession of a firearm, wherein he received a sentence of 100 months imprisonment. Autry is still under supervision in his prior federal case, and faces imprisonment in that case due to his illegal possession of a firearm on December 3, 2020.
If convicted, Autry faces up to ten years in federal prison followed by three years supervised release and a fine of $250,000. If he is found to qualify as an armed career criminal under federal law, he faces a mandatory minimum sentence of 15 years and up to life imprisonment. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Prohibited persons in possession of firearms are always a public safety concern, but especially so when there is a known history of violent crime convictions. We commend the outstanding investigative work of our federal and local law enforcement partners in quickly responding to remove the firearm from this offender and safely bring him into custody."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Benton County Sheriff’s Office investigated this case.
The charges and allegations contained in the federal complaint and indictment are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Josh Morrow is prosecuting this case on behalf of the government.
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Individual Pleads Guilty to Participating in Internet-of-Things Cyberattack in 2016Read the Press Release
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, December 9, 2020
An individual, formerly a juvenile, pleaded guilty to committing acts of federal juvenile delinquency in relation to a cyberattack that caused massive disruption to the Internet in October 2016.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Murray of the District of New Hampshire, and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Division made the announcement.
According to the plea agreement, the individual conspired to commit computer fraud and abuse by operating a botnet and by intentionally damaging a computer. Because the individual was a juvenile at the time of the commission of the offense, the individual’s identity is being withheld pursuant to the Juvenile Delinquency Act, see 18 U.S.C. § 5031, et seq. The guilty plea took place in a closed proceeding before Chief Judge Landya B. McCafferty in the District of New Hampshire. Judge McCafferty scheduled the individual’s sentencing for Jan. 7, 2021.
According to unsealed court documents, from approximately 2015 until November of 2016, the individual conspired with others to create and operate one or more online botnets to launch cyberattacks against victim computers (specifically targeting those belonging to online gamers or gaming platforms) in order to take those computers offline altogether or otherwise significantly impair their functionality. These attacks are often referred to as “Distributed Denial of Service” or “DDoS” attacks.
In general, a DDoS attack is a type of cyberattack in which a malicious actor directs a large volume of Internet traffic to a victim computer or network, overwhelming it and rendering it unable to function as intended. Successful DDoS attacks can take individual computer users, websites, or entire computer networks offline altogether or otherwise slow their performance. DDoS attacks are often conducted through the use of botnets (short for “robot networks”), that is, large numbers of compromised computers under the control of an individual or group of actors.
According to court documents, in September and October of 2016, the individual and others created a botnet, which was a variant of the so-called “Mirai” botnet, for use in launching DDoS attacks. Mirai infected “Internet-of-Things” devices, such as Internet-connected video cameras and recorders, and turned them into bots to be used to launch DDoS attacks.
According to court documents, on Oct. 21, 2016, the individual and others used the botnet they created to launch several DDoS attacks in an effort to take the Sony PlayStation Network’s gaming platform offline for a sustained period. The DDoS attacks impacted a domain name resolver, New Hampshire-based Dyn, Inc., which caused websites, including those pertaining to Sony, Twitter, Amazon, PayPal, Tumblr, Netflix, and Southern New Hampshire University (SNHU), to become either completely inaccessible, or accessible only intermittently for several hours that day. As a result of the individual’s DDoS attacks, Dyn, Sony, SNHU, and other entities and individuals suffered losses including lost advertising revenues and remediation costs. Sony estimated that its resultant losses included approximately $2.7 million in net revenue.
This case was investigated by the FBI with assistance from the National Crime Agency and Police Service of Northern Ireland. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Georgiana MacDonald of the District of New Hampshire. Former Assistant U.S. Attorney Arnold H. Huftalen provided substantial assistance.
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.
Importers to Pay More Than $860,000 to Resolve False Claims Act Allegations Concerning Unpaid Customs Duties on Chinese EarringsRead the Press Release
BOSTON – Four jewelry importers have agreed to pay more than $860,000 to resolve allegations that they failed to pay customs duties on sterling silver earring imports from China.
The importers, Roman & Sunstone LLC; ISTAR Jewelry LLC; Ansun Inc.; and Starkes Gems Inc., are affiliated companies headquartered in New Jersey, and will pay $866,068 to resolve False Claims Act allegations.
Under customs laws, duties on sterling silver earrings imported from China vary based on the value of the jewelry - the more expensive the earrings, the lower the duty rate. An earring’s value is calculated per earring (rather than each pair of earrings or collection of earrings).
Between 2015 and 2018, Roman & Sunstone and its affiliates imported display cards of sterling silver earrings from China for resale at department stores. The display cards often included multiple pairs of earrings. The government contends that Roman & Sunstone and its affiliates improperly concealed the number and value of these imports from U.S. Customs and Border Protection by describing on import records the number of display cards imported, rather than the number of individual earrings. These importers’ misstatements increased the declared value of the imports, allowing them to pay a lower duty than they should have based on the value of each earring. The government contends that Roman & Sunstone and its affiliates knew they were underpaying duties but continued to use misleading import records in order to avoid their obligations to pay customs duties.
The U.S. Attorney’s Office recently reached a $402,637 settlement with a former importer, TSI Accessories Group, Inc., concerning related conduct.
This civil settlement arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with today’s settlement, the whistleblower will receive approximately $152,000 of the recovery.
United States Attorney Andrew E. Lelling; Michael S. Denning, Director, Boston Field Office, U.S. Customs and Border Protection; and David Magdycz, Acting Special Agent in Charge, Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Brian M. LaMacchia of Lelling’s Affirmative Civil Enforcement Unit handled the matter.
Heber Springs Couple Plead Guilty to Disturbing Archaeological Site in Buffalo National RiverRead the Press Release
Fort Smith, Arkansas – Two people pleaded guilty in federal court today to unlawfully excavating and damaging archaeological resources in Buffalo National River, a National Park under the control of the U.S. Department of the Interior, announced Western District of Arkansas First Assistant U.S. Attorney David Clay Fowlkes.
In U.S. District Court hearings held this afternoon via video teleconference, Michael L. Walters, age 64, of Heber Springs, Ark., and Yvonne Jenay Walters, age 55, formerly of Heber Springs, each pleaded guilty to a criminal information charging violation of the Archaeological Resources Protection Act. Previously, a federal grand jury indicted both defendants for violation of the Archaeological Resources Protection Act, damage to U.S. property and theft of U.S. property. United States Magistrate Judge Mark E. Ford presided over the hearings and accepted the guilty pleas.
According to the plea agreement filed in this case, on Aug. 29, 2015, U.S. Park Rangers patrolling the Grinders Ferry area of the Buffalo National River observed Yvonne Walters taking rocks and minerals from a gravel bar. Rangers then found Michael Walters digging nearby, in what park records list as a prehistoric archaeological site. The couple admitted they had come to the park to search for rocks and artifacts, including Native American arrowheads. Further investigation revealed the couple had been to the same area previously to dig for rocks and artifacts. Both were involved in searching for, locating, excavating, trading, and selling artifacts, and actively engaged in social media group communities with the same interests.
Michael and Yvonne Walters’ sentences will be determined by the court at a later date, following the U.S. Probation Office’s completion of a presentence investigation. Based on their guilty pleas, the maximum penalties for each defendant include imprisonment for up to one year and a fine of up to $100,000. The defendants also agreed to forfeit artifacts, tools and equipment, and to pay $4,111 restitution to the National Park Service.
The case was investigated by special agents of the National Park Service, Investigative Services Branch, and U.S. Park Rangers at Buffalo National River. Assistant United States Attorney Steven Mohlhenrich is prosecuting the case for the United States.
The National Park Service reminds the public that public lands are protected by federal laws and regulations. In 1979, Congress enacted the Archaeological Resources Protection Act to protect an irreplaceable part of the Nation’s heritage. The act prohibits excavating, removing, damaging, or otherwise altering or defacing any archaeological resource located on public or Indian lands, or attempting to do so.
Health care company owner to pay $1 million to settle False Claims Act caseRead the Press Release
HOUSTON - The former owner of Providence Home Health and Providence Hospice has agreed to pay $1.05 million to settle claims she knowingly and willfully paid improper kickbacks for referrals of Medicare patients to her businesses, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Miranda Bennett of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG).
Teresita Lumanas Alquero owned both entities at the time of the alleged violations but has since sold them.
“We cannot tolerate kickbacks, especially those designed to affect our most vulnerable beneficiaries,” said Bennett. “We will continue to vigilantly investigate such conduct to ensure patients receive care from providers without improper motivations.”
Alquero had employed two individuals who filed a whistleblower lawsuit in June 2017 alleging various instances of fraud. Alquero allegedly paid kickbacks to a medical director for Providence. The medical directorship payments exceeded fair market value and were paid over a two-year period to induce him to refer Medicare patients to Providence for home health care and hospice services.
Medicare rules and guidelines prohibit such payments for referrals.
Alquero also allegedly submitted false claims for payment to Medicare identifying a specific attending physician from April 1, 2016, through Sept. 30, 2016. That physician was actually incarcerated during that time. His medical license was suspended April 12, 2016.
Under the False Claims Act, a private party can file an action known as a qui tam on behalf of the United States and receive a portion of the recovery. In this case, the relators will share $168,000 as a result of the settlement.
As part of the settlement, Alquero also agreed to a five-year period of exclusion from participation from Medicare, Medicaid and all other federal health care programs.
DHHS-OIG conducted the investigation along with the U.S. Attorney’s Office. Assistant U.S. Attorney Jill Venezia handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Haywood County Man Sentenced to over 5 Years in Federal Prison for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Donnie Ray King, 41, of Whiteville, Tennessee, has been sentenced to 70 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney, announced the sentence today.
According to information presented in court, on December 5, 2018, a Haywood Co. Sheriff’s Deputy responded to a residence in Whiteville, Tennessee to follow up on a stolen car report. Earlier that day, King’s mother reported to law enforcement that King had stolen her vehicle and her phone. When law enforcement arrived at King’s mother’s home, she said that King had returned her car and left walking on Hillville Road. The deputy later observed a male standing on the property of an old school nearby who identified himself as "Donnie King." King advised that he had a gun in his boot and was immediately placed into custody. The deputy then recovered an unloaded Ruger, Model SR9, 9mm pistol in King’s left boot, and a magazine containing 15 rounds of ammunition for the Ruger in his right boot.
King is a convicted felon, having been previously convicted of two counts of statutory rape in Crockett County in 2000, aggravated assault in Shelby County in 2007, Violation of the Sex Offender Registry in Crockett County in 2008, and manufacturing methamphetamine in Carroll County in 2012. As a result of his felony convictions, King is prohibited by federal law from possessing firearms and ammunition.
On December 8, 2020, Chief U.S. District Judge S. Thomas Anderson sentenced King to 70 months in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "As a multiple prior convicted felon, King has already disrespected the law and shown a manifest disregard for the rights of others. As a result, his possession of firearm and ammunition continues to threaten the security of his fellow citizens. This sentence accomplishes what his prior state sentences and probation could not – just punishment for his recidivism and incapacitation that will protect public safety."
The Haywood County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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