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10 December 2020
Hampton Man Sentenced to 84 Months for Distribution of Child PornographyRead the Press Release
CONCORD - John William McMahon, 30, of Hampton, was sentenced on Wednesday to 84 months in federal prison for distribution of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing undercover investigation, a member of the New Hampshire Internet Crimes Against Children (ICAC) Task Force accessed a peer-to-peer network to identify users who may be sharing images of child pornography. On various dates between December 14, 2017, and January 2, 2018, law enforcement officers conducted single-source downloads of child pornography from a certain I.P. address. Agents identified the address used to distribute child pornography images during the undercover sessions.
Through their investigation, agents identified McMahon as the person responsible for distributing child pornography images during the undercover sessions. In a consensual interview, the defendant admitted accessing wireless internet belonging to a neighboring apartment, and he further admitted downloading child pornography. Investigators later obtained a search warrant for McMahon’s laptop and other electronic media recovered from him. Subsequent forensic examination revealed approximately 1,410 images of suspected child pornography on McMahon’s laptop. The child pornography images and videos were sent to the National Center for Mission and Exploited Children, which confirmed that 500 still images and 6 videos were of identified child victims.
“Crimes involving child pornography and child exploitation cause great harm to their very vulnerable young victims,” said U.S. Attorney Murray. “In order to protect innocent children, we will continue to work closely with our law enforcement partners to identify and prosecute those who distribute child pornography.”
“The distribution of child pornography is a serious crime.” said David Magdycz, acting Special Agent In Charge, Homeland Security Investigations (HSI), Boston. “HSI works daily with the New Hampshire Internet Crimes Against Children Task Force and the U.S. Attorney’s Office for New Hampshire to fight the spread of child pornography and to bring justice to the victims of these crimes.”
“The New Hampshire Internet Crimes Against Children Task Force remains committed to pursuing those who victimize our children online,” said Lieutenant John Peracchi, Commander of the NH ICAC. “There is no safe haven on the internet for those who look to exploit minors and we will continue to hunt them down.”
This matter was investigated by Homeland Security Investigations, Boston and the New Hampshire ICAC Task Force. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Grant County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jay Jay William Hedrick, of Petersburg West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Hedrick, age 44, pled guilty to one count of “Unlawful Possession of a Firearm.” Hedrick, a person prohibited from having a firearm because of prior felony convictions, admitted to having a .40 caliber pistol, a 9mm pistol, and a .17 caliber rifle in June 2020 in Grant County.
Hedrick faces up to 10 years of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Grant County Sheriff’s Office investigated.
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.
U.S. Magistrate Judge Michael John Aloi presided.
Four Men Indicted on Federal Murder Charges for Death of Philadelphia Police Sergeant James O’ConnorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that an Indictment was unsealed today charging four defendants with the murder of Philadelphia Police Corporal James “Jimmy” O’Connor, posthumously promoted to Sergeant, and related drug trafficking and firearms offenses. The defendants charged in the Indictment are Hassan Elliott, a/k/a “Haz,” age 22; Bilal Mitchell, a/k/a “Omar,” a/k/a “Walkdown,” age 20; Khalif Sears, a/k/a “Leaf,” a/k/a “Lil Leaf,” age 19; and Sherman Easterling, a/k/a “Foot,” a/k/a “Foot on da gas,” age 25, all of Philadelphia, PA.
During a news conference outside the federal courthouse, U.S. Attorney McSwain discussed the charges in the seven-count Indictment. All four defendants are charged with: murder in the course of using or carrying a firearm during and in relation to a drug trafficking crime; using or carrying a firearm during and in relation to a drug trafficking crime; possession of a firearm in furtherance of drug trafficking; conspiracy to distribute “crack” cocaine and marijuana; possession with the intent to distribute “crack” cocaine and marijuana; and maintaining a drug involved premises. Additionally, the Indictment charges defendants Elliott and Easterling with possession of a firearm by a felon.
The Indictment alleges that the defendants are members of a violent drug trafficking group known as “1700 Scattergood,” which operates in the Frankford section of Northeast Philadelphia. The defendants allegedly sold narcotics from a stash house they maintained where they kept an arsenal of weaponry, drugs and drug paraphernalia. On March 13, 2020, the defendants were inside the stash house property in the 1600 block of Bridge Street when Sergeant O’Connor and other members of the Philadelphia Police Department’s SWAT team arrived with arrest and search warrants. As Sergeant O’Connor and his fellow officers ascended the staircase to the second floor of the residence and announced their presence multiple times, Elliott allegedly fired a semi-automatic assault rifle 16 times, striking and killing Sergeant O’Connor.
A subsequent search of the property revealed the scope of the defendants’ alleged drug trafficking conspiracy: ten firearms, bulk and packaged “crack” cocaine, bulk and packaged marijuana, and items commonly used to package and sell narcotics, such as a scale and packaging materials.
“The murder of a police officer is one of the most agonizing things that a community can experience, and my heart goes out to the O’Connor family. Sadly, this year has already seen more shootings in Philadelphia than in any other year – ever,” said U.S. Attorney McSwain. “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, District Attorney Larry Krasner’s pro-violent defendant policies are what kept Hassan Elliott on the street; they put this horrible chain of events in motion; and in that sense, they are every bit as responsible for Sergeant O’Connor’s alleged murder as the defendants. While we cannot bring Sergeant O’Connor back, we can honor him by seeking justice and doing all that we can to prevent this type of tragedy from occurring again.”
“This indictment shows ATF’s commitment to working with our local, state and federal partners to help diminish the violent crime that continues to plague Philadelphia,” said Matthew Varisco, Special Agent in charge of ATF Philadelphia’s Filed Division. “I commend the hard work of the investigators and detectives of the Philadelphia Police Department that made these charges possible and that hopefully will prevent another potential crime or death. I also thank the U.S. Attorney's Office for their guidance and work prosecuting this case.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendants face a maximum possible penalty of lifetime imprisonment. However, contained within the Indictment is a Notice of Special Findings for defendant Elliott with regard to the charge of murder while using or carrying a firearm. This Notice makes Elliott eligible for the death penalty.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Christopher Diviny and Special Assistant United States Attorneys Ashley Martin and Lauren Stram.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former correctional officer heads to prison for briberyRead the Press Release
McALLEN, Texas - A 33-year-old man from Progreso has been ordered to prison for smuggling contraband items into the East Hidalgo Detention Center, announced U.S. Attorney Ryan K. Patrick.
Jhaziel Loredo pleaded guilty March 4.
Today, District Judge Micaela Alvarez sentenced Loredo to 28 months in federal prison to be immediately followed by three years of supervised release.
From October 2018 to August 2019, Loredo used his official position as a correctional officer at the East Hidalgo Detention Center to bring contraband into the facility. Some of the items included controlled substances. He then distributed them to federal inmates.
In exchange, Loredo accepted bribe payments from family members of the multiple inmates totaling approximately $1,900.
Loredo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Marshals Service, Department of Justice - Office of Inspector General, and FBI conducted the investigation. Assistant U.S. Attorneys Amy L. Greenbaum and Patricia Cook Profit prosecuted the case.
Former Owner of Health Care Staffing Company Indicted for Wage FixingRead the Press Release
Note: The defendant in this case, Neeraj Jindal, was acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury returned an indictment charging Neeraj Jindal, the former owner of a therapist staffing company, for participating in a conspiracy to fix prices by lowering the rates paid to physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area, the Department of Justice announced today. The indictment also charges Jindal with obstruction of the Federal Trade Commission’s separate investigation into this conduct.
According to the two-count indictment filed in the U.S. District Court in Sherman, Texas, Jindal and his co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants, and Jindal’s company paid lower rates, from in or about March 2017 and continuing through in or about August 2017. Jindal is charged with participating in the conspiracy when he was the owner of a Texas-based therapist staffing company that provided in-home physical therapy services. Jindal is also charged with obstruction of proceedings before the Federal Trade Commission. According to the indictment, Jindal made false and misleading statements and withheld and concealed information during the Federal Trade Commission’s investigation to determine whether Jindal’s company or other therapist staffing companies violated Section 5 of the Federal Trade Commission Act.
“The charges announced today are an important step in rooting out and deterring employer collusion that cheats American workers — especially health care workers — of free market opportunities and compensation,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Employers who conspire to fix the wages of workers or restrict their mobility by allocating labor markets will be prosecuted to the fullest extent of the law. The division will also continue to prosecute those who undermine the integrity of federal investigations, including proceedings before other federal agencies.”
“The integrity of the market is the foundation of our free-enterprise system,” said U.S. Attorney Stephen J. Cox for the Eastern District of Texas. “Wage-fixing agreements exploit workers by pushing down wages and eliminating competition. The Eastern District of Texas is proud to partner with the Antitrust Division in protecting the marketplace and the opportunities for American workers.”
“The FBI is committed to rooting out anti-competitive activity and corruption in our markets,” said Assistant Director Calvin Shivers of the Criminal Investigative Division. “In this case, Neeraj Jindal attempted to cheat the system and, in doing so, hurt hard-working Americans providing medical care and relief. Our International Corruption team worked creatively and diligently to investigate this crime. We are prepared to take our findings and work with our partners at the Department of Justice to ensure justice is served.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s Washington Criminal I and II Sections and the International Corruption Unit of the FBI.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Former Mental Health Community Residential Facility Administrator Arrested and Former Aide for Disabled Residents Pleads Guilty in Two Separate Case Involving Financial Exploitation of Elderly and Vulnerable AdultsRead the Press Release
WASHINGTON – Latonja Dashawn Carrera (a.k.a. Latonja Dashawn Martin), 46, was arrested December 8, 2020 and charged via criminal complaint with felony Financial Exploitation of an Elderly Person, in violation of D.C. Code § 22-933.01. On the same day, Kim Renee West, 56, pled guilty pursuant to a Deferred Sentencing Agreement to one count of misdemeanor Financial Exploitation of a Vulnerable Adult, in violation of the same code provision.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Karl Racine, Attorney General for the District of Columbia; and Daniel W. Lucas, Inspector General for the District of Columbia.
According to Court records, Carrera was the Administrator for a Mental Health Community Residential Facility licensed by the District of Columbia Department of Health. In January 2019, Carrera used the account of one of the facility residents – a 73 year-old Veteran – to pay her own personal bills. Carrera used $1,524.36 from the Veteran, whose sole sources of income were benefits from the Social Security Administration and Veterans Affairs.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
West pled guilty to financially exploiting a 61-year-old man with profound intellectual disability by taking his debit card from his residence, where she worked, and using the card to make approximately $235.00 worth of purchases for her own benefit. As part of a Deferred Sentencing Agreement, West agreed to complete community service and pay restitution to the victim. If she completes these conditions within six months, the case will be dismissed.
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 arrest and plea, Acting U.S. Attorney Sherwin, Attorney General Racine, and Inspector General Lucas commended the work of those who investigated the cases from the District of Columbia’s Office of the Attorney General and Office of the Inspector General. 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, who investigated and prosecuted both cases for the U.S. Attorney’s Office for the District of Columbia with support from Paralegal Specialist Chad D. Byron.
Former CFO for Richardson Enterprises, Ltd., Sentenced for Embezzling Close to $16 MillionRead the Press Release
A federal judge in Austin sentenced 51-year-old Tamra Maurene Villarreal (aka Tamra Creighton Villarreal), the former Chief Financial Officer (CFO) for Richardson Enterprises, Ltd. headquartered in Austin, to 63 months imprisonment for her role in a close to $16 million embezzlement scheme, announced U.S. Attorney Gregg N. Sofer; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and Special Agent in Charge Richard D. Goss, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office.
At sentencing yesterday afternoon, U.S. District Judge Robert Pitman also ordered the Lakeway resident to pay $15,941,452.87 in restitution to the Richardson family and $4,243,649 in restitution to the IRS. Judge Pitman further ordered Villarreal to be placed on supervised release for a period of three years after completing her prison term.
Richardson Enterprises (Richardson) has automobile dealerships in Arizona, New Mexico and Texas. As CFO, Villarreal compiled financial information and provided it to outside accountants. She also had signing authority on Richardson bank accounts.
On August 18, 2020, Villarreal pleaded guilty to a two-count Information charging her with wire fraud and making and subscribing a false income tax return. By pleading guilty, Villarreal admitted that from 2009 to January 2018, she embezzled the funds from Richardson accounts and used that money for personal enrichment. Specifically, Villarreal diverted monies from Richardson bank accounts to accounts belonging to her and her husband. She used those stolen funds along with a corporate business credit card to pay for numerous personal expenditures including luxury items, hotel stays and restaurant tabs without the knowledge or permission of the Richardson family. Villarreal admitted that she used her access and control of Richardson’s books and records to conceal and disguise her unauthorized transactions.
In April 2018, law enforcement executed a search warrant on her Lakeway residence. Recovered during the search were many valuables purchased during the scheme, including rare coins, gold bars, expensive watches, lavish jewelry and multiple firearms.
Villarreal also admitted that she subscribed a false 2013 federal income tax return wherein she and her spouse claimed $433,747 in earnings when in truth their income that year far exceeded that amount when accounting for the proceeds from her embezzlement scheme.
Villarreal’s former husband, 48-year-old Robert Scott Villarreal, pleaded guilty to federal charges in connection with this investigation. He is scheduled to be sentenced on January 21, 2021, in Austin before U.S. District Judge Pitman. Robert Villarreal, who is out on bond, faces up to 10 years in federal prison for money laundering, up to 20 years in federal prison for possession with intent to distribute cocaine and up to three years in federal prison for failure to file a federal income tax return.
The FBI and IRS-CI investigated this case. Assistant United States Attorneys Michelle Fernald and Robert Almonte prosecuted this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Bank President Sentenced for EmbezzlementRead the Press Release
LEXINGTON, Ky. – A former bank president, Thomas Hinkebein, 59, was sentenced to 12 months in federal prison, by Chief United States District Judge Danny C. Reeves, after previously pleading guilty to one count of embezzlement by a bank officer.
According to his plea agreement, Hinkebein admitted that, between January 12, 2016 and August 13, 2018, while he was the President of Whitaker Bank, he willfully misapplied assets of the bank. Specifically, he admitted stealing golf carts and other property of Andover Country Club, an asset owned by Whitaker Bank, and seeking reimbursement from Whitaker Bank for a variety of personal expenses, including cell phone plans, gym memberships, fuel purchases, vehicle repairs, technology purchases for his family members, shipping expenses, and landscaping at his home. To hide the personal nature of these expenses, the Defendant falsely reported many of the expenses to Whitaker Bank to make them appear to be legitimate work expenses.
Hinkebein pleaded guilty in September 2020.
In addition to the prison sentenced, Hinkebein will be required to pay a $5,500 fine and $50,739.56 in restitution owed. Under federal law, Hinkebein 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 three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; John Crawford, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region; and Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, jointly announced the sentencing.
The investigation was conducted by the FDIC and the Federal Reserve. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
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Former Avondale Woman Sentenced to Three Years of Probation for Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON, age 52, a former resident of Avondale, Louisiana, who now lives in Mississippi, was sentenced on December 9, 2020 to three (3) years of probation for conspiracy to commit mail fraud by United States District Court Judge for the Eastern District of Louisiana Sarah S. Vance.
According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning. The stolen/diverted mail included items such as a paintball gun, a drone, two Dyson vacuum cleaners, women’s shoes, two Apple Air Mac books, and a smart phone.
In addition to probation, JOHNSON was ordered to pay a $100 mandatory assessment.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Florida Tire Importer Pleads Guilty in Tax ConspiracyRead the Press Release
A Miami, Florida, tire importer pleaded guilty today to conspiracy to defraud the government, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida.
According to court documents and statements made in court, Marco Parra operated Road Tire Plus Corp. (Road Tire), a tire importer located in Miami, Florida. From 2013 through 2016, Parra conspired with others in the tire industry to evade paying federal excise taxes on truck tires marked for highway use. Tire importers are responsible for excise taxes when their truck tires are sold to tire retailers, who then resell the tires domestically. Tire importers typically pass on the cost of the excise tax to tire retailers and collect the excise taxes from them. But, if the tires are later exported rather than sold domestically, the law provides for a credit for the excise taxes paid.
For some retailers, Parra sold truck tires subject to excise taxes. He collected the excise taxes that were due, but did not remit those taxes to the IRS and did not file tax returns reporting the tire sales as he was required. For others, Parra never collected the federal excise taxes due on the tire sales. Instead, Parra obtained false bills of lading claiming that the tires were exported, so that Parra could obtain an excise tax credit even though he knew the tires were not exported. As a result of Parra’s failure to timely file excise tax returns for 2014, 2015, and 2016, he caused an excise tax loss of approximately $887,112. Parra has since paid over $700,000 to the IRS.
U.S. District Judge Kathleen M. Williams scheduled sentencing for Feb. 18, 2021. Parra faces a statutory maximum of five years, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Orshan commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Francesca Bartolomey and Assistant Chief Gregory Tortella, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Jury Finds Guilty Former U.S. Marine for Illegal Exportation of Firearms and Controlled EquipmentRead the Press Release
RALEIGH, N.C. – Today in federal court, Jacques Yves Sebastien Duroseau, age 34, a former U.S. Marine born in Haiti and a naturalized citizen of the United States, residing in Onslow County, was found guilty following a three-day trial before United States District Judge James C. Dever III. The jury found the defendant guilty of conspiracy to illegally export and smuggle firearms and controlled equipment from the United States to Haiti, as well as transporting firearms without a license to the Haitian Army. Additionally, the jury decided that the firearms and equipment should be forfeited.
At trial, the evidence showed that Duroseau, at the time an active duty U.S. Marine with the rank of sergeant, and a co-conspirator, impersonated high ranking military officers and pretended to be on military business in order to facilitate the illegal transportation of eight firearms, including a Ruger model Precision Rifle 300WIN MAG and a Spike’s Tactical model ST15, as well as copious ammunition, riflescopes, and body armor, via commercial aircraft to Haiti. The evidence further showed that Duroseau’s purpose was to train the Haitian Army with the firearms and equipment in order to engage in foreign armed conflict.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, stated, “This office remains dedicated to ensuring the safety of our citizens here in the Eastern District, and likewise, citizens residing elsewhere – whether that be within or without the United States. The Defendant’s conduct here violated our firearms laws, particularly in relation to export and licensing, but it additionally posed concerns about our citizens unliterally acting in relation to the government of a foreign country. Such conduct will not be tolerated.”
“Duroseau, who previously held a position of trust within the Marine Corps, betrayed his service and deserves to be held accountable for his illicit attempt to smuggle weapons from the United States to Haiti for the purpose of training the Haitian military,” said NCIS Special Agent in Charge of the Carolinas Field Office Sean Devinny. “NCIS extends its gratitude to Homeland Security Investigations for their collaboration and partnership during this investigation.”
“Federal firearm laws exist to ensure weapons crossing international borders are properly accounted for to preserve public safety and to keep them out of the hands of dangerous criminals,” said Special Agent in Charge of Homeland Security Investigations Charlotte Ronnie Martinez. “This case shows the significant consequences awaiting individuals who attempt to illegally smuggle weapons and ammunition across U.S. borders as well as HSI’s commitment to holding accountable persons who violate federal law.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation of this case was conducted by agents of the Naval Criminal Investigative Service and Homeland Security Investigation. Additional assistance was provided by the Department of State’s Diplomatic Security Service and Directorate of Trade Controls, the Department of Commerce’s Bureau of Industry Security, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Marine Corps.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00003-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Illinois Man for Bombing the Dar al-Farooq Islamic CenterRead the Press Release
Yesterday, a federal jury returned a guilty verdict against Micheal Hari, 49, for his role in the bombing of the Dar al-Farooq Islamic Center in Bloomington, Minnesota, on Aug. 5, 2017.
Following a three week trial, the jury convicted Hari on all five counts of the indictment, including intentionally defacing, damaging, and destroying any religious real property because of the religious character of that property; intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; conspiracy to commit federal felonies by means of fire and explosives; carrying and using a destructive device during and in relation to crimes of violence; and possession of an unregistered destructive device. Hari faces a mandatory minimum sentence of 30 years in prison.
“I commend the outstanding efforts of the trial team from the U.S. Attorney’s Office and the FBI, which tried this case with support from the Civil Rights Division. The jury’s verdict confirms the fundamental principle that every person in this country has the right to exercise religion free from violence and fear,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We are grateful for our law enforcement partners on this case and are pleased to see justice being carried out.”
“Michael Hari’s goal in bombing the Dar al-Farooq Islamic Center was to spread hatred, instill fear, and threaten the constitutionally protected right to freedom of religion. This act of violence, driven by hatred and ignorance, shook our community,” said U.S. Attorney Erica H. MacDonald for the Distirct of Minnesota. “This guilty verdict represents a condemnation of that hatred and upholds our fundamental right to live and worship free from the threat of violence and discrimination. I am sincerely grateful to the Assistant U.S. Attorneys and the FBI special agents who, over several years, have remained steadfast in their pursuit of justice.”
As proven at trial, during the summer of 2017, Hari established in Clarence, Illinois, a terrorist militia group called “The White Rabbits.” Hari recruited several men, including co-defendants Michael McWhorter and Joe Morris, to join the militia group, which he outfitted with tactical vests and assault rifles. On Aug. 4 and 5, 2017, Hari, McWhorter, and Morris drove in a rented pickup truck from Clarence to Bloomington, Minnesota, with the mission of bombing the Dar al-Farooq (DAF) Islamic Center. Hari targeted DAF in an attempt to scare Muslims into believing they are not welcome in the United States and should leave the country.
As proven at trial, Hari, McWhorter and Morris arrived at DAF on Aug. 5, 2017, at approximately 5:00 a.m. Morris used a sledgehammer to break a window, which was part of DAF’s Imam’s office, and threw a plastic container containing diesel fuel and gasoline mixture into the building. McWhorter then lit the fuse on a 10-pound black powder pipe bomb that Hari had built and threw it through the broken window. McWhorter and Morris ran back to the truck, where Hari was waiting in the driver’s seat. The three men sped away from the building and drove back to Clarence. When the pipe bomb exploded, it ignited the mixture in the plastic container, causing extensive fire and smoke damage to the Imam’s office, in addition to water damage caused by the building’s sprinkler system. At the time of the bombing, several congregants were gathered in the mosque for morning prayers.
On Jan. 24, 2019, McWhorter and Morris pleaded guilty to their roles in the bombing.
This case is the result of an investigation conducted by the FBI.
U.S. Attorney MacDonald thanks Assistant U.S. Attorneys John F. Docherty, Allison Ethen and Timothy C. Rank, who tried this case with assistance from Lead Paralegal Specialist Lynette Simser, Witness Specialist Jeffery Knopps, former Assistant U.S. Attorney Julie E. Allyn, Trial Attorney Tim Visser from the Civil Rights Division, and the Special Agents of the FBI’s Minneapolis Field Office. Their hard work and commitment to the pursuit of justice made this result possible.
Federal Inmate Sentenced for Attempting to Obtain Contraband in PrisonRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Santiago Delfierro Anguiano, a/k/a “Shag,” age 50, a federal inmate, was sentenced today by United States District Judge Dee D. Drell for attempting to obtain contraband in prison. Judge Drell sentenced Anguiano to 120 months (10 years) in prison followed by 3 years of supervised release. This sentence will run consecutive to the 30-month federal sentence he is currently serving for Illegal Re-entry of a Removed Alien.
Anguiano pled guilty to the charge on January 16, 2020. Evidence introduced at the hearing revealed that in March 2016 while serving as a federal inmate at the U.S. Penitentiary in Pollock, Louisiana, Anguiano conspired with others to attempt to obtain methamphetamine in FCC Pollock. Anguiano knew that the methamphetamine was an illegal substance and that he was prohibited from having it. The methamphetamine was seized in a vehicle driven by a co-defendant in this case during a traffic stop in Woodworth, Louisiana, on March 31, 2016 before making its way into the prison. The seized methamphetamine was tested at the DEA South Central Laboratory and found to be 97% pure.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Grand Jury Indicts Rochester Music Teacher on 74 Counts, Including 61 Counts of Production of Child PornographyRead 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 a federal grand jury has returned a 74-count indictment charging Philip M. Close, 42, of Rochester, NY, with 61 counts of production of child pornography, and 13 counts of possession of material containing child pornography involving prepubescent minors. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of life in prison, and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that the defendant owns the Close School of Music on West Ridge Road in the Town of Parma, which offers private music lessons to children and adults of all ages. Close has been teaching music lessons throughout New York State for over 20 years.
According to the indictment and a previously filed complaint, on December 5, 2019, the Monroe County Sheriff’s Office received information from a mother with two children taking lessons at the Close School of Music, that a video camera was attached to the toilet in the bathroom. The parent indicated that earlier that day, while waiting for her child to finish her music lesson, she used the bathroom. While in the bathroom, the mother observed a small black camera lens facing towards the toilet seat, and a small metallic-looking piece hanging from a wire off of the toilet. The mother grabbed and pulled the wires and found a camera-device and wires taped to the bottom of the toilet with black electrical tape. After finding this camera device, she removed it from the bottom of the toilet, and proceeded to contact 911.
A Monroe County Sheriff’s deputy reported to the Close School of Music and spoke with the defendant who acknowledged that the device was his. Close was taken into custody.
On December 6, 2019, a search warrant was executed at the music school and multiple digital computing devices were seized, including a laptop computer. A preliminary review of the laptop located three videos of the child whose parent alerted the Sheriff’s Department. One of the videos included the child using the toilet. Another video shows the child laying down on a piano bench and Close’s leg. The defendant is seen moving the child’s shirt up to expose her stomach and touching her stomach. Close then begins to touch other parts of the child’s body. The child is seen sliding under the piano in what appears to be an attempt to prevent the defendant from touching any further.
Further investigation revealed that the defendant produced videos containing child pornography including a total of 61 minor victims.
Close will be arraigned on December 14, 2020, at 9:30 a.m. before U.S. Magistrate Judge Mark W. Pedersen.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fashion District Wholesaler and 2 Men Linked to Company Indicted in Schemes to Avoid Tariffs, Launder Drug Money and Avoid TaxesRead the Press Release
LOS ANGELES – A federal grand jury has returned a 35-count indictment alleging that a Fashion District outfit was at the center of two schemes, one that avoided the payment of more than $10 million in customs duties on imported clothing, and a second “Black Market Peso Exchange” scheme in which the company laundered narcotics proceeds and failed to report on tax returns over $17 million derived from cash transactions.
The schemes are outlined in a 49-page indictment, which was filed late Wednesday and is the latest case resulting from an operation in September 2014 when law enforcement authorities executed dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses. During one of those searches at a downtown condominium linked to the defendants in this case, authorities seized more than $38.3 million in cash.
The defendants named in the indictment are:
- C’est Toi Jeans, Inc. (CTJ), an importer of apparel from countries such as China, and exporter of clothing to customers in Mexico, Central America and South America;
- Si Oh Rhew, 67, of La Cañada Flintridge, the president of CTJ and a 75 percent owner of the company; and
- Lance Rhew, who is Si Oh Rhew’s son, 33, of downtown Los Angeles, a CTJ corporate officer and the owner of another company called GLLR, Inc. that did business as CTJ.
The indictment contains charges of conspiracy; entry of goods falsely classified; entry of goods by means of false statements; passing false and fraudulent papers through customhouse; international promotional money laundering; failure to file reports of $10,000 currency transactions; and aiding, assisting, and procuring the filing of a false tax return.
The first scheme outlined in the indictment allegedly involves the avoidance of customs duties and tariffs by purchasing garments from overseas manufacturers, including from China, but then submitting false information to U.S. Customs and Border Protection (CBP) that understated the true value of the items being imported in the U.S. As a result, the import duties owed on the shipments were lowered. The indictment alleges that the defendants sent 515 individual wire transfers totaling $137,156,726 to pay overseas suppliers for undervalued garments. Overall, according to the indictment, CTJ imported goods that were undervalued by more than $62 million, causing approximately $10,269,068 in unpaid tariffs and duties that should have been paid to CBP. Some of this conduct occurred prior to authorities executing search warrants at CTJ and GLLR in 2014, but the indictment alleges that undervaluation resumed in 2018 and lasted until at least July 2020.
In the second scheme, the Rhews used CTJ “to receive large amounts of bulk United States currency, including from narcotics proceeds, as payment for outstanding merchandise orders from customers in Mexico and elsewhere,” according to the indictment. CTJ allegedly accepted large cash payments of up to $70,000 even after the law enforcement action targeted their businesses in 2014. The defendants failed to file currency transaction reports, which are required for any transaction involving more than $10,000 in cash, and they concealed the cash receipts from an accountant who prepared their taxes, which led the Rhews to fraudulently omit more than $17.6 million in gross sales from tax returns filed with the IRS, the indictment alleges.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The court will issue summons directing the three defendants to appear for arraignments in United States District Court on February 4.
If convicted of the charges in the indictment, the Rhews would each face potential sentences of decades in federal prison, and CTJ could face fines of as much as $100 million.
This case is the product of an ongoing investigation by Homeland Security Investigations (HSI), IRS Criminal Investigation, U.S. Customs and Border Protection, the Monterey Park Police Department, the El Segundo Police Department, LA IMPACT, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force.
This case was investigated under the aegis of the HSI-led El Camino Real Financial Crimes Task Force, which includes representatives from the United States Attorney’s Office, the Drug Enforcement Administration, the FBI and IRS Criminal Investigation. The task force is working to protect legitimate businesses in the financial sector by targeting criminal activity and encouraging companies to comply with import/export regulations.
This matter is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar and Lucy B. Jennings of the International Narcotics, Money Laundering and Racketeering Section.
Former Owner of Health Care Staffing Company Indicted for Wage FixingRead the Press Release
SHERMAN, Texas – A federal grand jury returned an indictment charging Neeraj Jindal, the former owner of a therapist staffing company, for participating in a conspiracy to fix prices by lowering the rates paid to physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area, the Department of Justice announced today. The indictment also charges Jindal with obstruction of the Federal Trade Commission’s separate investigation into this conduct.
According to the two-count indictment filed in the U.S. District Court in Sherman, Texas, Jindal and his co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants, and Jindal’s company paid lower rates, from in or about March 2017 and continuing through in or about August 2017. Jindal is charged with participating in the conspiracy when he was the owner of a Texas-based therapist staffing company that provided in-home physical therapy services. Jindal is also charged with obstruction of proceedings before the Federal Trade Commission. According to the indictment, Jindal made false and misleading statements and withheld and concealed information during the Federal Trade Commission’s investigation to determine whether Jindal’s company or other therapist staffing companies violated Section 5 of the Federal Trade Commission Act.
“The charges announced today are an important step in rooting out and deterring employer collusion that cheats American workers — especially health care workers — of free market opportunities and compensation,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Employers who conspire to fix the wages of workers or restrict their mobility by allocating labor markets will be prosecuted to the fullest extent of the law. The division will also continue to prosecute those who undermine the integrity of federal investigations, including proceedings before other federal agencies.”
“The integrity of the market is the foundation of our free-enterprise system,” said U.S. Attorney Stephen J. Cox for the Eastern District of Texas. “Wage-fixing agreements exploit workers by pushing down wages and eliminating competition. The Eastern District of Texas is proud to partner with the Antitrust Division in protecting the marketplace and the opportunities for American workers.”
“The FBI is committed to rooting out anti-competitive activity and corruption in our markets,” said Assistant Director Calvin Shivers of the Criminal Investigative Division. “In this case, Neeraj Jindal attempted to cheat the system and, in doing so, hurt hard-working Americans providing medical care and relief. Our International Corruption team worked creatively and diligently to investigate this crime. We are prepared to take our findings and work with our partners at the Department of Justice to ensure justice is served.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s Washington Criminal I and II Sections and the International Corruption Unit of the FBI.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Note: A copy of the indictment can be obtained here.
Ex-con admits helping destroy evidence in investigation of murdered wife of Fort Stewart soldierRead the Press Release
SAVANNAH, GA: A former federal inmate has admitted to helping destroy evidence in the murder of the wife of a Fort Stewart soldier.
Devin Ryan, 30, of Hardeeville, S.C., pled guilty in U.S. District Court to Use of Fire in Commission of a Federal Felony, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a mandatory sentence of 10 years in federal prison, followed by a period of supervised release.
There is no parole in the federal system.
“A man with no involvement other than previous time behind bars with an admitted killer needlessly complicated a murder investigation by destroying a significant piece of evidence,” said U.S. Attorney Christine. “Rather than stay a free man and hang up the phone when called, Devin Ryan helped cover up a murder – and that choice has earned him more hard time behind bars.”
Stafon Jamar Davis, 28, of Savannah, pled guilty to Premeditated Murder and to Possession of a Firearm by a Convicted Felon in the July 9, 2018 shooting death of Abree Boykin, 24, a resident of post housing at Fort Stewart Army Reservation.
As described in court documents and testimony, after killing Boykin by shooting her twice in the head, Davis contacted Ryan – who previously served prison time with him – for help in “getting rid of a car.” Ryan provided directions to a location in Hardeeville, S.C., where the two men met. Ryan brought a container of gasoline with him, and the two poured gas inside Boykin’s 2018 Honda Accord and set it on fire. The car exploded, and the burned vehicle later was hauled to a salvage yard and ultimately scrapped before investigators could track it down.
Both Ryan and Davis were on federal supervised release at the time of the crimes, and both are in custody awaiting sentencing.
“Ryan’s attempt to cover up a murder made an investigation more difficult, but because of the determination of FBI and Army Criminal Investigation Command investigators, the case was solved and he will go back to prison,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.
“Today’s plea by the defendant is proof of the level of detail our special agents and our law enforcement partners will go to, to solve a crime,” said Chris Grey, spokesman for the U.S. Army Criminal Investigation Command. “Destroying crucial evidence from such a horrific crime is unconscionable.”
The case is being investigated by the FBI and the Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard.
Eastern Kentucky Doctor Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
A Kentucky doctor and his former office manager were sentenced to 60 and 32 months respectively in prison Wednesday for their roles in unlawfully distributing controlled substances during a time when the defendants did not have a legitimate medical practice.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge D. Christopher Evans of the U.S. Drug Enforcement Administration’s (DEA) Detroit Field Division, and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.
Scotty Akers, M.D., 48, a licensed physician, and Serissa Akers, 33, his wife and former office manager, both of Pikeville, Kentucky, were sentenced by U.S. District Judge Robert E. Wier of the Eastern District of Kentucky. Judge Wier also ordered Scotty Akers to forfeit $12,275. Both defendants pleaded guilty on Aug. 7, 2020 to charges of unlawfully distributing controlled substances.
As part of their guilty pleas, the defendants admitted to using Facebook messenger and other messaging applications to sell prescriptions for opioids. According to their plea agreements, Serissa Akers exchanged prescriptions written by Scotty Akers for cash in parking lots around Pikeville. The defendants also admitted that Scotty Akers performed no physical examinations that would justify these parking-lot prescriptions, and failed to engage in other measures that prevent the abuse and diversion of opioids. The defendants continued operating their opioid-delivery scheme even after they came under investigation and up until the moment when Scotty Akers’s medical license was suspended.
HHS-OIG, DEA and Kentucky MFCU investigated the case. Trial Attorney Dermot Lynch and Assistant Chief Kate Payerle of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 50 million pills. Since its inception in March 2007, the Health Care 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 approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Eastern District of Texas Announces Partnership with the Antitrust Division to Protect Competition in MarketplaceRead the Press Release
BEAUMONT, Texas – Today the Eastern District of Texas and the Antitrust Division announced charges against a former healthcare staffing company for conspiring to fix prices to the detriment of the American labor market. Additionally, the Eastern District of Texas has recently joined the Antitrust Division in the Department of Justice Procurement Collusion Strike Force (PCSF). Together, the Eastern District of Texas and the Antitrust Division will continue to pursue enforcement actions to promote competition and protect the marketplace.
“Our District has been eager to partner with the Antitrust Division in protecting the marketplace, and today’s announcements are just the beginning of what we hope will be a terrific relationship,” said U.S. Attorney Stephen J. Cox. When I was at Main Justice, the Department filed an important amicus brief in a case arising in the Eastern District of Texas—the brief advised the Fifth Circuit on the application of antitrust law and patent law to promote innovation and spur competition in connection with standard essential patents,” said U.S. Attorney Stephen J. Cox. “Later, when I became U.S. Attorney, we began to look for opportunities where the District could work together with the Antitrust Division on these and other important antitrust matters. I am proud to announce that we joined the PCSF and that we are now assisting the Antitrust Division in a wage-fixing prosecution. Stay tuned. There is more to come.”
The Eastern District of Texas has partnered with the Antitrust Division to indict Neeraj Jindal, 48, of Flower Mound, Texas. As announced today, a federal grand jury charged Jindal, the former owner of a therapist staffing company, with wage fixing for his role in a conspiracy to fix prices by lowering the rates paid to physical therapists and physical therapist assistants in the Dallas-Fort Worth metropolitan area. The indictment also charges Jindal with obstruction of the Federal Trade Commission’s separate investigation into this conduct.
Last month, the Antitrust Division announced that the Eastern District of Texas would join the PCSF, which leads a coordinated national response to combat collusion, antitrust crimes, and related fraudulent schemes that undermine competition in government procurement, grant, and program funding. The Eastern District of Texas has designated two Assistant U.S. Attorneys, Nathaniel Kummerfeld and Jonathan Hornok, to assist with the PCSF.
The PCSF is comprised of the Antitrust Division of the Department of Justice, multiple U.S. Attorneys’ Offices around the country, and close to 30 member agencies. These agencies include the Federal Bureau of Investigation; the Department of Justice, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; the U.S. Postal Service, Office of Inspector General; the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS); the Air Force Office of Special Investigations; and the General Services Administration, Office of Inspector General.
The PCSF has a publicly available website at www.Justice.gov/Procurement-Collusion-Strike-Force, where members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement. Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected] or filling out the PCSF anonymous complaint form, located on the PCSF website.
Federal, state, and local agencies can also contact the PCSF at [email protected] for any training needs or to report suspected antitrust violations.
East Bay Man Sentenced to Four Years in Prison for Embezzlement Scheme from His EmployerRead the Press Release
SAN FRANCISCO – Michael Livingston Henry was sentenced yesterday to 48 months in prison and ordered to pay restitution for stealing more than $800,000 from his former employer and her family’s charitable foundation, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by United States District Judge Charles R. Breyer.
Henry, 45, of Oakland, pleaded guilty on January 22, 2020. According to the plea agreement, Henry worked from June 2006 to August 2018 as an assistant to a Marin-based philanthropist, assisting her with personal matters and administration of her family’s charitable foundation. While employed there, Henry stole in excess of $800,000 by forging the philanthropist’s signature on hundreds of checks, many of which were made out to Henry personally or to his side business, Hella. The philanthropist was seriously ill with cancer in 2016 and 2017 – a time when Henry continued to be entrusted with full access to financial and account records – and she discovered the embezzlement only after her recovery in 2018.
Henry was indicted by a federal grand jury on February 28, 2019. The fourteen-count Indictment charged him with ten counts of bank fraud, in violation of 18 U.S.C. § 1344(2), and four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Pursuant to the plea agreement, Henry pleaded guilty to two counts of bank fraud, and the government agreed to dismiss the remaining charges.
United States District Court Judge Charles R. Breyer also sentenced the defendant to a five-year period of supervised release to begin at the completion of the prison term and ordered him to pay restitution to the charitable foundation and the philanthropist personally. The defendant will begin serving his sentence on April 19, 2021.
Katherine L. Wawrzyniak is the Assistant U.S. Attorney prosecuting the case, with the assistance of Claudia Hyslop and Kimberly Richardson. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Dominican National Indicted on Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national was indicted yesterday by a federal grand jury in Boston in connection with fraudulently using the identity of a U.S. citizen.
Alexander Villalona Diaz, 34, a Dominican national previously residing in Lawrence, was indicted on one count of false representation of a Social Security number and one count of aggravated identity theft. Villalona Diaz was arrested and charged by complaint on Sept. 2, 2020.
According to the indictment, Villalona Diaz fraudulently used a Social Security number that was not his when applying for a renewal of a driver’s license with the Massachusetts Registry of Motor Vehicles in 2016.
This case is part of operation Double Trouble – an investigation conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Tonya Perkins, Acting 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 U.S. Department of Health and Human Services, Office of Inspector General; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; Jonathan Davidson, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Des Moines Man Sentenced to 27 Years in Prison for Production of Child PornographyRead the Press Release
DES MOINES, IA – On December 3, 2020, United States District Judge Stephanie M. Rose sentenced Joseph Lee Fultz, age 52, of Des Moines, to 324 months in prison for Production of Child Pornography announced United States Attorney Marc Krickbaum. Fultz was ordered to serve ten years of supervised release to follow his prison term and comply with sex offender registry requirements upon release.
The investigation began in May of 2019 when the Des Moines Police Department received a report that Fultz produced child pornography of four minors, ages 10 and under, while they were under his care. Subsequently, Des Moines police officers executed a search warrant at Fultz’s apartment where they seized his computers and electronic devices. The investigation showed that Fultz produced and possessed child pornography images of the four minors, as well as two additional children, including an infant. All six children were located and identified.
This matter was investigated by the Des Moines Police Department, Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, and the FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Dallas Men Charged with Gun, Drug CrimesRead the Press Release
Two Dallas men have been charged with gun and drug crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kewon Dontrell White, 22, was indicted on one count of felon in possession of a firearm. Mr. White – who is now facing a Dallas County murder charge in the death of rapper Melvin Nobel, also known as M03 – was arrested by ATF, the U.S. Marshals Service, and Dallas Police Department patrol officers Wednesday in Dallas’ Oak Cliff neighborhood.
Known affiliate Devin Maurice Brown, Jr, 27, was indicted on one count of felon in possession of a firearm and one count of conspiracy to possess with intent to distribute a controlled substance; he was arrested on November 19, at his residence in Oak Cliff.
“A gun in the hands of a prohibited person is not a theoretical risk, but an actual danger to the community,” said U.S. Attorney Erin Nealy Cox. “We are proud to partner with ATF and our local police departments to take armed felons and drug dealers off the streets.”
“ATF remains vigilant and steadfast in our fight against violent crime in the Dallas Metroplex. Together with the United States Attorney’s Office and our law enforcement partners, we will continue to pursue the worst of the worst lawbreakers living amongst us in our communities. If you are in the illegal possession of a firearm, be warned, no one can elude police forever,” said ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II.
According to a criminal complaint filed in November, law enforcement discovered a stolen AK-47 in Mr. Brown’s closet during a lawful search of his residence. They also found a botanical substance that field tested positive for synthetic cannabinoids (commonly referred to as “K2” or “spice”), a bottle of multicolored tablets that field tested positive for methamphetamine, several scales, baggies, and more than $3,200 in U.S. currency.
According to a second criminal complaint filed later that same month, law enforcement discovered a 9 mm pistol in Mr. White’s pants pocket. Mr. White fled, first on his dirt bike and then on foot, when officers attempted to effectuate a traffic stop.
Indictments are merely allegations of criminal conduct, not evidence. Like all defendants, Mr. White and Mr. Brown are presumed innocent until proven guilty in a court of law.
If convicted, Mr. White faces up to 10 years in federal prison on the gun charge. Mr. Brown faces up to 20 years on the gun and drug charges.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation with assistance from the Duncanville and Lancaster Police Departments. The U.S. Marshal’s Service assisted in the arrest. Assistant U.S. Attorneys Myria Boehm and Abe McGlothin are prosecuting the case.
Covington Woman Pleads Guilty to FEMA FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KELLY GAUTHIER, age 49, a resident of Covington, Louisiana, pleaded guilty on December 9, 2020 to one count of Theft of Government Funds in violation of Title 18, United States Code, Section 641. According to the Bill of Information to which GAUTHIER pled guilty, she filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA) on or about March 14, 2016, following severe storms and flooding across Louisiana. GAUTHIER claimed that she needed assistance due to her ownership and occupancy of a home where she was living. In order to show her purported ownership of the home, GAUTHIER submitted fraudulent supporting documentation. GAUTHIER was issued a total of $29,075.56 in FEMA assistance, including assistance for home repairs, rental assistance, transportation, and personal property.
GAUTHIER faces a maximum sentence of ten years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and a $100 mandatory special assessment. GAUTHIER’s sentencing hearing is scheduled before the Honorable U.S. District Judge Martin L.C. Feldman on March 10, 2021.
U.S. Attorney Peter G. Strasser praised the work of the Department of Homeland Security, Office of Inspector General, for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
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Convicted Felon Sentenced for Possessing Firearms During Civil UnrestRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to 54 months in prison and 2 years supervised release for his possession of an assault rifle, handgun, ballistic vest, and eight magazines of ammunition after leaving the Robert E. Lee Monument during civil unrest here on June 12.
According to court documents, Matthew Lee Frezza, 37, of Chesterfield, possessed an assault rifle and handgun during the course of a traffic stop during civil unrest. The incident started when Richmond Police Department (RPD) officers observed a caravan of three trucks driving recklessly in the vicinity of the Robert E. Lee Monument. Based on this reckless driving, RPD officers executed a traffic stop on one of the pickup trucks at the intersection of Old Mill Road and Boatwright Road in the city of Richmond. Upon approaching the truck, RPD officers observed three occupants inside, with an individual later identified as Frezza in the front passenger seat of the truck. RPD officers further observed all three occupants of the truck armed with firearms, including assault rifles.
Based on the firearms and the vehicles prior presence at the Robert E. Lee Monument, RPD Officers requested the three occupants step out of the truck. As Frezza exited the truck, RPD officers took an assault rifle from his possession, removed a handgun and two clips from a holster on his thigh, and removed a ballistic vest from his body that contained six rifle magazines with ammunition. On the scene, RPD Officers determined that Frezza was a convicted felon and placed him under arrest. The firearm possessed by Frezza was a Taurus, Model G3, 9mm caliber, semi-automatic pistol. The assault rifle possessed by Frezza was later determined to be a homemade rifle without a serial number, which contained a loaded, high-capacity magazine.
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. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; William C. Smith, Chief of Richmond Police; and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Eric S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-78.
Connecticut Business Owner, Poker Player, Pleads Guilty to Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joleen Simpson, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that GUY SMITH, 62, of Shelton, waived his right to be indicted and pleaded guilty today to one count of tax evasion.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, Smith owns and operates Centerline Interiors LLC, a business that specializes in commercial interior construction. Smith is also a professional poker player and has participated in poker tournaments at casinos in Connecticut and other locations around the U.S. and The Bahamas. Smith withdrew funds from both his business and personal bank accounts for his gambling business.
For the 2012 through 2016 tax years, Smith furnished his tax preparer with a summary of Centerline’s income and expenses, which the tax preparer used to prepare Smith’s federal income tax returns. Smith did not provide his tax preparer with any bank statements. During these five years, Smith intentionally failed to report to his tax preparer, and to the IRS, approximately $482,000 in income he received from Centerline Interiors. In addition, even though the IRS notified Smith on multiple occasions that he was required to report all of his gambling income on his federal tax returns, Smith concealed his gambling income from his tax preparer and paid no income taxes on more than $1 million in gambling winnings.
For the 2012 through 2016 tax years, Smith failed to pay a total of $821,415 in federal income taxes.
Smith is scheduled to be sentenced by U.S. District Judge Michael P. Shea on March 4, 2021, at which time he faces a maximum term of imprisonment of five years. Smith also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
Smith is released on a $50,000 bond pending sentencing.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Colorado Indian Country Victim Assistance Team Receives Superior Performance in Indian Country Award from Department of JusticeRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Amy Connor, a paralegal assigned to the U.S. Attorney’s Durango Branch Office, Savannah Joe, former victim specialist with the Bureau of Indian Affairs and now a Victim Advocate with the U.S. Attorney’s Office for the District of New Mexico, and Lisa Manzanares, Victim Services Program Coordinator for the Southern Ute Police Department have received the Superior Performance In Indian Country Award from the Executive Office of U.S. Attorneys, a division of the Department of Justice.
“Amy, Savannah and Lisa are exceptional at their job, have big hearts and work hard to help victims of violent crime in Indian Country,” said U.S. Attorney Jason Dunn. “Amy and her colleagues deserve this prestigious recognition as they focus on crime originating from both reservations.”
In its commendation, the Department of Justice described the Colorado Indian Country victim assistance team’s work in the following manner:
Amy Connor, a paralegal assigned to the Durango Branch Office for the U.S. Attorney’s Office, District of Colorado, Savannah Joe, who was assigned to the Bureau of Indian Affairs and is now with the U.S. Attorney’s Office for the District of New Mexico, and Lisa Manzanares, with the Southern Ute Police Department have won the Director’s Award for Superior Performance in Indian Country. Amy, Savannah and Lisa transformed the prosecution of violent crime in Indian Country in Colorado. By ensuring collaboration between the Ute Mountain Ute and Southern Ute Indian Tribes and the U.S. Attorney’s Office, they have worked together to overcome cultural barriers that hinder Indian Country victims from accessing justice. Their collective efforts ensure that victims are identified and counseled through culturally informed processes. Historical distrust that previously discouraged native victims from seeking justice is now addressed. They keep victims informed, direct them to appropriate services and – when necessary – even transport the victims to court. In two separate sex assault trials, several sentencings, as well as in numerous ongoing investigations this year, this team educated and empowered victims to speak out against those who harmed them. By doing this, they deliver superior service for vulnerable victims in Indian Country, making communities safer and enabling victims to heal.
Chouteau Man Pleads Guilty to Possession and Distribution of Material Involving Sexual Exploitation of A Minor (Multiple Counts)Read the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Richard Lee King, age 60, of Chouteau, Oklahoma entered a guilty plea to three counts of Distribution of Certain Material Involving the Sexual Exploitation of a Minor, in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(b)(1), punishable by not less than 5 years and not more than 20 years of imprisonment, a fine up to $250,000.00, or both for each count; and to one count of Possession of Certain Material Involving the Sexual Exploitation of a Minor, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by not more than 20 years of imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on three separate occasions, on or about June 22, 2019, June 24, 2019, and June 26, 2019 in the Eastern District of Oklahoma, the defendant, did knowingly distribute and attempt to distribute any visual depiction, as that term is defined in Title 18, United States Code, Section 2256(5), of a prepubescent minor under the age of twelve engaging in sexually explicit conduct, using any means and facility of interstate and foreign commerce, and the production of such visual depiction involved the use of a minor engaging in sexually explicit conduct and the visual depiction of such conduct.
The Indictment further alleged that on or about April 3, 2020, in the Eastern District of Oklahoma, the defendant, did knowingly possess and access with the intent to view and attempt to possess and access with the intent to view a visual depiction, as that term is defined in Title 18, United States Code, Section 2256(5), of a prepubescent minor under the age of twelve engaging in sexually explicit conduct, and said visual depiction was of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Chinese Man Extradited for Financing Turtle-Trafficking RingRead the Press Release
A Chinese citizen was extradited from Malaysia to the United States today to face charges for money laundering.
Kang Juntao, 24, of Hangzhou City, China, was charged in February 2019 with financing a nationwide ring of individuals who smuggled at least 1,500 protected turtles out of the United States valued at $2,250,000.
“The Department of Justice is committed to prosecuting criminals who abuse the U.S. financial system to fund their illegal enterprises,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “I thank the U.S. Fish and Wildlife Service for their extraordinary efforts in this case to support the Environment and Natural Resources Division’s mission to protect America’s wildlife.”
“Wildlife trafficking is a serious crime that impacts imperiled species at home and abroad,” said Aurelia Skipwith, Director of the U.S. Fish and Wildlife Service (USFWS). “The Trump Administration is committed to the conservation of wildlife. I would like to thank the U.S. Department of Justice and our various law enforcement partners for their assistance with this case. By working together, we can protect our nation's wildlife for future generations.”
According to the indictment, from June 12, 2017, through Dec. 3, 2018, Kang allegedly purchased turtles in the United States and arranged for them to be smuggled to associates in Hong Kong. He sent money through U.S. banks, including one in New Jersey, to pay for the turtles and their illegal shipments. The turtles would then be sold on the Asian pet trade black market for thousands of dollars each, depending on their sex, coloring, and age.
The United States, Malaysia, China, and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction.
Kang allegedly trafficked in five turtle species protected by the treaty. The eastern box turtle (Terrapene carolina carolina), the Florida box turtle (Terrapene carolina bauri), and the Gulf Coast box turtle (Terrapene carolina major) are subspecies of the common box turtle (Terrapene carolina) and have been listed in CITES since 1995. The spotted turtle (Clemmys guttata) is a semi-aquatic turtle listed in CITES as of 2013. The wood turtle (Glyptemys insculpta) has been protected under CITES since 1992.
The indictment further alleges that Kang sent money via PayPal to the United States to purchase turtles from sellers advertising on social media or reptile trade websites. These suppliers then shipped the turtles to middlemen across five different states. The middlemen were typically Chinese citizens who entered the country on student visas. Kang paid and instructed these intermediaries to repackage the turtles in boxes with false labels for clandestine shipment to Hong Kong. The turtles were inhumanely bound with duct tape and placed in socks so as not to alert customs authorities. Neither Kang nor his associates declared the turtles to U.S. or Chinese customs or obtained the required CITES permits.
The Royal Malaysia Police arrested Kang on Jan. 23, 2019, at Kuala Lumpur International Airport on a request submitted by the United States for his provisional arrest with a view to extradition. An extradition request was subsequently submitted on March 5, 2019, pursuant to the Extradition Treaty between the Government of the United States of America and the Government of Malaysia. Kang’s extradition was finalized in September 2020 and he was surrendered to the United States Wednesday as provided by the extradition treaty. The United States is grateful to the Minister of Home Affairs of Malaysia, the Attorney General of Malaysia and the Transnational Crimes Unit, Prosecution Division, Attorney General’s Chambers for their steadfast cooperation and support in the litigation of the extradition request. We also thank the U.S. Justice Department’s Office of International Affairs, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Malaysia Attaché, the Regional Security Office, Bureau of Diplomatic Security, U.S. Department of State, and the Consular Section of the U.S. Embassy in Kuala Lumpur for providing invaluable assistance in supporting the extradition and coordinating the return of Kang to the United States.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The USFWS conducted the investigation and escorted Kang to the United States. The government is represented by Trial Attorneys Ryan Connors and Lauren Steele of the Environment and Natural Resources Division’s Environmental Crimes Section.
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.
Cedar Rapids Man Appears in Federal Court on Threat and Damage to Federal Property ChargesRead the Press Release
DES MOINES, Iowa – On December 8, 2020, John Edward Miller, age 39, of Cedar Rapids, appeared in federal court before United States Northern District of Iowa Magistrate Judge Mark A. Roberts on a Complaint charging him with influencing, impeding or retaliating against a federal official by threatening a United States official, a United States judge, or a federal law enforcement officer; malicious damage to federal property; and interstate communications with the intent to injure, announced United States Attorney Marc Krickbaum.
This matter will be prosecuted by Southern District of Iowa Assistant United States Attorney Melisa Zaehringer, who has been designated as Special Assistant United States Attorney, based on the recusal of the Northern District of Iowa United States Attorney’s Office.
According to the Complaint, Miller is alleged to have sent a threatening message via Facebook to a federal prosecutor and named several other federal employees in the message. Miller is additionally accused of firing a flare gun at the Cedar Rapids United States Courthouse, causing a fire that needed to be extinguished.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Miller’s detention hearing will be held at the Cedar Rapids United States Courthouse on December 11, 2020, at 1 p.m.
This matter is being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Explosives and Firearms, United States Marshals Service, and the Cedar Rapids Police Department. The United States Attorney’s Office for the Southern District of Iowa will prosecute this case.
Carriere, MS Man Sentenced to 42 Months Imprisonment for Stealing Personal Identifying Information of More Than 8,000 Healthcare.Gov Customers and Causing $587,000 in LossesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that COLBI TRENT DEFIORE, age 27, a resident of Carriere, Mississippi, was sentenced to 42 months imprisonment, 3 years of supervised release and payment of a $100 special assessment fee by United States District Judge Jay A. Zainey after previously pleading guilty to a one-count indictment with intentionally accessing a protected computer in excess of authorization for the purpose of commercial advantage and private financial gain, and in furtherance of the commission of a felony, in violation of 18 U.S.C. ' 1030(a)(2)(C). Judge Zainey scheduled a hearing to determine the amount of restitution DEFIORE must repay for January 12, 2021.
According to court documents, DEFIORE worked as a seasonal employee for Company A, a Virginia-based company in the technology sector that supported the Centers for Medicare & Medicaid Services (CMS) by operating contact centers to assist with, among other things, Medicare enrollment. One of the centers, at which DEFIORE worked, was located in Bogalusa, Louisiana. Company A took a series of security measures to protects consumers’ PII and supervise its employees, including requiring all employees, including DEFIORE, to undergo training on how to handle consumers’ personal identifying information (PII) appropriately.
On numerous occasions in November 2018, DEFIORE accessed and obtained without authorization, the personal identifying information of more than 8,000 individuals by improperly accessing the healthcare.gov database. DEFIORE did so for the purpose of his private financial gain and in furtherance of criminal acts, including wire fraud.
Specifically, DEFIORE conducted “bulk searches” of the database, which he was prohibited from doing, and was able to view the personal information of healthcare.gov customers. DEFIORE then copied the results of his searches onto a virtual clipboard and sent them to himself via email. After work hours, DEFIORE accessed Company A’s network remotely without authorization to retrieve his work email. DEFIORE used the personal information of at least five consumers to apply fraudulently for at least six credit cards, loans, and lines of credit for his personal benefit. In total, DEFIORE’S conduct caused reasonably foreseeable loss to the companies that operated the call center, including costs associated with responding to the offense, conducting a damage assessment, responding to and remediating damage, contacting consumers who were potential victims, and providing theft protection services for consumer-victims, in the amount of $587,000.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Career Offender Sentenced to over 21 Years in Federal Prison for Drugs and Firearm ChargesRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas announced that, Travis Toss Shell, age 39, was sentenced today to 262 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings today in the United States District Court in Fayetteville.
On January 6, 2020, detectives with the 4th Judicial District Drug Task Force were attempting to locate Shell, based on information that he was selling methamphetamine and had an active warrant for his arrest. Shell was located in the parking lot of a hotel in Springdale driving a Chevrolet Impala. Detectives attempted to stop Shell in the parking lot. After Detectives identified themselves as police, Shell put the vehicle in reverse and fled. After crashing his vehicle, Shell fled on foot, discarded a loaded firearm, and traversed across the interstate during heavy traffic. Detectives searched the vehicle and located a distribution amount of methamphetamine in the console area of the vehicle.
The methamphetamine was subsequently sent to the Arkansas State Crime Lab and tested positive for 28.2 grams of methamphetamine.
Shell was indicted by a federal grand jury in March of 2020 and entered a guilty plea in August of 2020.
This case was investigated by the State of Arkansas Fourth (4th) Judicial District Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Camden Arkansas Man Sentenced to over 8 Years in Federal Prison for Drug PossessionRead the Press Release
El Dorado, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Justin Tyrone Seguin, age 37, of Camden, Arkansas, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Possession of Methamphetamine with the Intent to Distribute. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
In July of 2019, investigators with the Camden police department obtained a search warrant for Seguin’s residence in Camden, Arkansas. The search warrant authorized investigators to search the residence for controlled substances and other records indicating ownership and occupancy. On July 19, 2019, Investigators executed the search warrant. When officers entered Seguin’s bedroom, he struck an officer and resisted arrest. After being subdued, a search of his bedroom revealed digital scales containing methamphetamine residue, marijuana and three bags of methamphetamine weighing approximately 45 grams.
Seguin was indicted by a federal grand jury in November of 2019, and entered a guilty plea in February of 2020.
This case was investigated by the Camden Police Department, the FBI, and Assistant United States Attorney Ben Wulff prosecuted the case for the Western District of Arkansas.
Buffalo Man Going to Prison for Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Miller, 30, of Buffalo, NY, who was convicted of conspiring to distribute, and distribution of, controlled substances, was sentenced to serve 60 months in prison by U.S. District Judge Richard. J. Arcara.
Assistant U.S. Attorneys Joseph M. Tripi and Meghan E. Leydecker, who handled the case, stated that between March 2016 and September 25, 2018, the defendant sold cocaine, crack cocaine, marijuana, and heroin in the City of Buffalo and surrounding suburbs. During that time, Miller utilized residences at 45 Easton Avenue and 507 E. Ferry Street in Buffalo to store and distribute the drugs. Also, during the same time period, the defendant possessed various firearms, including semi-automatic pistols he posed with online using social media.
On March 31, 2016, New York State parole officers conducted a search at Miller's parole residence after receiving evidence that the defendant violated his curfew. During the search, parole officers located and seized three digital scales with residue; two bags of ammunition; a quantity of crack cocaine; and a cell phone. Buffalo Police were called and Miller was arrested.
On September 25, 2018, the ATF and Buffalo Police Department executed federal search warrants at 45 Easton Avenue, and on a vehicle used by the defendant. As investigators prepared to enter the residence, they observed an object that was thrown from an upper window at the rear of the house. The object thrown from the window was loaded revolver. During a search of the upper apartment, three vials of marijuana, $411 cash, a large number of empty glass vials, 17 cellular telephones, and four scales were seized. The clothing Miller was wearing in the August 17, 2018, social media video depicting him with a firearm was also located inside the apartment. In addition, a scale and a loaded semi-automatic firearm were found in the basement.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
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Boston Man Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced in federal court in Boston for heroin and fentanyl trafficking charges.
Anthony Tsina, 37, was sentenced on Dec. 8, 2020 by U.S. District Court Judge Nathaniel M. Gorton to 34 months in prison and three years of supervised release. On Aug.13, 2020, Tsina pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin and one count of possession with intent to distribute heroin.
According to court documents, in 2018, federal and state law enforcement began investigating a Brockton drug crew headed by Djuna Goncalves, a violent Brockton-area drug dealer. Interceptions from Djuna Goncalves’s cellphone led agents to other Boston-based drug traffickers who supplied Goncalves. Agents identified Tsina as a drug trafficker and customer of Jose Perez-Felix, a/k/a “Grande,” a member of a Boston-based drug cell that also supplied Goncalves.
According to court documents, agents intercepted several calls in which Tsina ordered narcotics from Perez-Felix. For instance, on April 9, 2019, a call was intercepted during which Tsina told Perez-Felix that he had been trying to get in touch with him and needed to see him. Perez-Felix told Tsina he would meet him on Bowdoin Street in Dorchester. Perez-Felix was later observed driving to and parking on Bowdoin Street and Perez Felix delivered heroin/fentanyl to Tsina through the passenger side window of Tsina’s car. After Tsina left the area, Tsina’s vehicle was stopped by law enforcement and a bag containing a tan powdery substance, later determined to contain 60.7 grams of a mixture of heroin and fentanyl, was recovered.
Of the 17 defendants named in the superseding indictment, nine, including Tsina, have pleaded guilty. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, United States Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Indicted for Bank RobberyRead the Press Release
BOSTON – A Boston man was indicted yesterday for robbing a bank in Boston on Nov. 13, 2020. At the time of the offense, the defendant was on supervised release after being convicted of committing two bank robberies in 2016.
Stephen D. Williams, 56, was indicted on one count of bank robbery. Williams, who is currently on supervised release for two 2016 bank robberies, was arrested on state charges on Nov. 13, 2020. He was charged federally by criminal complaint on Nov. 18, 2020.
According to court documents, in March 2018, Williams was sentenced to 60 months in prison after pleading guilty to robbing two banks in 2016. In July 2020, Williams’s sentence was modified pursuant to a motion for compassionate release, and he was released from prison to home confinement.
While on home confinement, Williams deactivated his court ordered electronic monitoring bracelet and absconded.
It is alleged that, on Nov. 13, 2020, an individual, later determined to be Williams, wearing a grey knit cap and blue jacket, entered a branch of the Santander Bank in Boston. Williams passed the teller a note indicating a robbery and that he had a gun. The teller gave Williams $7,000 in cash, which Williams allegedly stuffed it into the pockets of the blue jacket he was wearing and exited the bank.
Immediately following the robbery, police interviewed bank personal and put out an alert for Williams. According to court documents, Williams was later observed a short distance from the bank counting money, removing his blue jacket and placing it into a black trash bag. A short time later, Williams was observed carrying the black trash bag. While Williams was being questioned by police, he allegedly dropped the trash bag and after a brief chase was arrested. Inside the black trash bag law enforcement recovered a blue jacket, grey knit cap, a demand note alleging that he had a gun, blue latex gloves, a Massachusetts identification card in Williams’ name and a large sum of cash in excess of $7,000.
The charge of bank robbery provides for a sentence of up to 20 years in prison, 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. In addition to the above, Williams will also face a jail sentence for violating the terms of his previously imposed supervised release.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross 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.
Berea Man Sentenced to 360 Months for Producing Child PornographyRead the Press Release
LEXINGTON, Ky. — A Berea, Ky., man, Larry Dale Foley, Jr., 49, was sentenced to 360_months in federal prison on Thursday, before Chief U.S. District Judge Danny Reeves, after previously pleading guilty to producing child pornography.
According to Foley’s plea agreement and other court records, a tip submitted to the National Center for Missing and Exploited Children, from Tumblr, showed that a blog that Foley owned had distributed 46 images and two videos of child pornography. On January 6, 2020, law enforcement searched Foley’s residence and seized electronic devices that contained child pornography. Foley was arrested and has been held in federal custody since that time.
The devices seized were processed and showed that Foley had produced child pornography of himself and a female minor, in the form of videos and still images. In his guilty plea agreement, Foley admitted to knowing that the images and videos he created with the minor victim were produced using materials that were shared via computer and cell phone.
Foley pleaded guilty in September 2020.
Under federal law, Foley 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 life.
“Producing child pornography is a crime of violence – subjecting the victim to continued abuse each time the file is shared or downloaded,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant’s sentence was well deserved based on his criminal conduct. I commend the work of the FBI and the Berea Police Department in conducting this investigation.”
“Today's sentencing is just one example of how seriously the Department of Justice takes crimes against children. For children who endure abuse of any kind, their lives are oftentimes irreparably damaged. The FBI is dedicated to protecting our most fragile population, and we and all our law enforcement partners will not stop until those who attempt to prey on the vulnerable are brought to justice." said James Robert Brown Jr., Special Agent in Charge, FBI, Louisville Field Office.
U.S. Attorney Duncan; SAC Brown, and Eric Scott, Chief of the Berea Police Department, jointly announced the sentence.
The investigation was conducted by the FBI and the Berea Police Department. The United States was represented by Assistant U.S. Attorney David Marye.
This case was prosecuted 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.
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Baltimore Bank Robber Sentenced to 13 Years in Federal Prison for Firearm and Armed Bank Robbery ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced David Gollahon, age 59, of Baltimore, Maryland, to 13 years in federal prison, followed by five years of supervised release, for the federal charges of armed bank robbery and brandishing of a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
According the his plea agreement, on January 23, 2019 and February 1, 2019, David Gollahon and his co-defendant, Richard Tingler, committed two armed bank robberies in Baltimore, with co-defendant Richard Adams serving as the getaway driver in each robbery. During each of the robberies, Gollahon and Tingler brandished firearms and threatened victim bank employees.
Specifically, on January 23, 2019, Adams drove Gollahon and Tingler in a gray Hyundai Accent car that he had rented two weeks earlier, to a bank located in the 3600 block of Boston Street in Baltimore. Gollahon carried a loaded black .380-caliber firearm and Tingler carried a loaded black .45-caliber firearm and both men wore ski masks to disguise their identities. Tingler also carried a black leather duffel bag.
After entering the bank, Tingler approached the victim teller, pointed his firearm at her and demanded $100 dollar bills and “loose bills” from the bottom drawer of the till. Meanwhile, Gollahon held the other bank employees and customers at gunpoint in the lobby area of the bank. He told the bank employees and customers, “don’t move.” Tingler took more than $7,000 in cash from the victim teller. Tingler and Gollahon then ran away, accidentally dropping $5,584 in cash as they ran through a parking lot. They then got into the waiting gray Hyundai Accent car driven by Adams, and drove away
On February 1, 2019, Adams drove Tingler and Gollahon in a 2006 Chevy Monte Carlo, which was registered to Adams, to a bank located in the 2900 block of O’Donnell Street in Baltimore. Tingler and Gollahon each had the same firearm they had used in connection with the January 23, 2019 bank robbery, and their faces were covered. After entering the bank, Tingler and Gollahon approached the teller window. Tingler pointed his firearm at the teller and demanded $100 bills. The victim teller handed over cash from the till, but Tingler continued to demand more money. At the same time, Gollahon approached the teller line with his firearm pointed in the direction of the tellers and bank customers. In response to the demands for more cash, the victim teller and a co-worker went to the bank’s vault and removed more cash, which they provided to Tingler and Gollahon, along with a GPS tracker, which was activated.
Tingler and Gollahon then fled the bank and got into the 2006 Chevy Monte Carlo driven by Adams, who was waiting for them. Adams drove the Monte Carlo away from the bank. Law enforcement received GPS information concerning the location of the GPS tracker taken from the bank, which they relayed to Baltimore Police Department (BPD).
BPD officers stopped the vehicle and, when the vehicle was stopped, the GPS tracker became stationary. Adams, Tingler, and Gollahon were ordered out of the vehicle and arrested. At the time of his arrest, Gollahon had the same firearm he used during the robbery on his person. All were transported to the BPD Citywide Robbery Office.
Law enforcement searched Adams’ 2006 Monte Carlo car and located in the vehicles’ front floor board was a blue backpack containing the cash taken in the robbery, the GPS tracker, and the .45-caliber firearm carried by Tingler during both bank robberies.
Later that day, law enforcement searched Adams’ residence in Essex, Maryland and seized Gollahon’s gray hooded sweatshirt and the black leather duffel bag carried by Tingler during the January 23, 2019 robbery.
Richard Tingler, age 56, of Baltimore and Richard Adams, age 60, of Essex, Maryland both pleaded guilty to their roles in the bank robberies. Adams was sentenced to 90 months in federal prison on November 12, 2020. Tingler is expected to be sentenced to up to 18 years in federal prison as his sentencing on January 19, 2021, at 9:30 a.m. before Judge Chasanow.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul A. Riley and Daniel A. Loveland, Jr., who are prosecuting the case.
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Atlanta man indicted for stealing $11 million while in prisonRead the Press Release
ATLANTA –Arthur Cofield and two others have been indicted for conspiracy to commit bank fraud and money laundering. Cofield is currently serving a prison sentence in a Georgia Correctional facility in Butts County, Georgia.
“Some prisoners aren’t interested in rehabilitation or paying their debt to society,” said U.S. Attorney Byung J. “BJay” Pak. “The allure of millions of dollars in gold, coupled with contraband prison cellphones, allegedly was enough for Cofield to commit a brazen million-dollar fraud scheme from the confines of his prison cell.”
“This elaborate fraud scheme is truly shocking in its scope and nature,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “The U.S. Postal Inspection Service is committed to ensuring the U.S. Mail is not utilized as a tool in this type of fraud and to holding the responsible parties fully accountable for their actions.”
“The Secret Service worked closely with our partners and shared information and resources to ultimately bring this criminal to justice,” said Steven R. Baisel, Special Agent in Charge of the Secret Service's Atlanta Field Office. “Today’s indictment proves that there is no such thing as anonymity for those engaging in fraudulent schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Cofield is an inmate at the Georgia Diagnostic and Classification Prison in Butts County, Georgia, serving a 14-year sentence for armed robbery. He is also currently under indictment in Fulton County, Georgia, charged with attempted murder.
In June 2020, using a contraband cell phone, Cofield obtained multiple means of identification for victim S.K., and gained access to an online account owned by S.K., and managed by Charles Schwab. On June 5, 2020, Cofield impersonated S.K., and called a Charles Schwab customer service representative to inquire about opening a checking account. The customer service representative informed Cofield that a form of identification and utility bill would be required to complete the verification process. At Cofield’s request, a co-conspirator texted Cofield with a picture of S.K.’s driver’s license and a Los Angeles, California, Department of Water and Power utility bill.
On June 8, 2020, Cofield submitted via email a purchase inquiry to Money Metals Exchange, LLC, a precious metals dealer based in Idaho, for the purchase of gold coins. Purporting to be S.K., while communicating with representatives of Money Metals Exchange, LLC, Cofield agreed to purchase 6,106 American Gold Eagle one-ounce coins for the price of $10,998,859.92. That same day, a female co-conspirator claiming to be calling on behalf of her husband contacted a Charles Schwab customer service representative and inquired about the verification procedures to initiate a wire transfer.
Later, Cofield impersonated S.K., and called a Charles Schwab customer service representative to inquire about sending a wire transfer in the amount of $11,000,000. During the call, Cofield falsely claimed to be S.K., and referenced the earlier call made by the female co-conspirator. Based on these false representations, Charles Schwab wired $11,000,000 from the account belonging to S.K., to an account controlled by Money Metals Exchange, LLC.
On June 13, 2020, Cofield hired a private security company to transport the purchased gold coins from Boise, Idaho, to Atlanta, Georgia, by chartered private plane. On June 16, 2020, the private security team landed at the Atlanta Signature Airport and met with co-defendant Eldridge Maurice Bennett. Bennett presented a false identification document to the private security team and took possession of the gold coins.
In July 2020, Cofield contacted the landowner of a six-bedroom residence located near West Paces Ferry, in Atlanta, Georgia, and offered to buy the property for $4.4 million. The landowner eventually received approximately $720,000 in cash as down payment from Eldridge Bennett and a woman Cofield described as his wife, Eliayah Bennett. At the closing on September 1, 2020, Eldridge Bennet conveyed the remaining $3.7 million in cash to the landowner.
Arthur Cofield, 29, Eldridge Bennett, 63, and Eliayah Bennett, 25, all of Atlanta, Georgia, were indicted for multiple counts of conspiracy to commit bank fraud and money laundering. Both Eldridge Bennett and Eliayah Bennett were arraigned before U.S. Magistrate Judge Justin S. Anand. Cofield is expected to be arraigned at a later date upon production from the Georgia Department of Corrections.
This case is being investigated by the U.S. Postal Inspection Service and the U.S. Secret Service.
Assistant U.S. Attorney Scott McAfee is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Assistant U.S. Attorney Stephanie Podolak Receives Lifetime Exceptional Service Award from Department of JusticeRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Assistant U.S. Attorney Stephanie Podolak has received the Lifetime Exceptional Service Award from the Executive Office of U.S. Attorneys, a division of the Department of Justice.
“Stephanie is richly deserving of our national Lifetime Exceptional Service award, having been an important and highly valued member of our team for more than 24 years,” said U.S. Attorney Jason Dunn. “Her work has directly resulted in the take down of many sophisticated, transnational drug cartels operating in Colorado. Our communities are safer thanks to her work.”
In its commendation, the Department of Justice described Assistant U.S. Attorney Podolak’s work in the following manner:
Stephanie Podolak, an Assistant U.S. Attorney (AUSA) for the U.S. Attorney’s Office, District of Colorado has won the Executive Office of U.S. Attorney’s (EOUSA) Director’s Award for Lifetime Exceptional Service. This award recognizes AUSA Podolak’s 28 years of exceptional contributions to the U.S. Attorney’s Office community, with 24 of those years with the District of Colorado. She has been recognized for her record of outstanding accomplishments, and her continuing advancement of the Organized Crime Drug Enforcement Task Force (OCDETF) program. She is responsible for a series of “firsts” in the district, ranging from case-related work such as the district’s first RICO indictment to serving as the district’s first female criminal division section chief. She has had a hand in most of the district’s prosecutions of significant transnational drug trafficking organizations.
AUSA Podolak’s career began in 1991 in the Eastern District of New York, where she quickly demonstrated a passion and talent for complex drug/gang work. In 1992, AUSA Podolak joined the Organized Crime Drug Enforcement Task Force (OCDETF) section in that office and immediately undertook some of the district’s largest cases. In November 1994, AUSA Podolak received her first Executive Office of U.S. Attorney’s Office Director’s Award for prosecuting the district’s largest Russian international heroin ring. That operation ended with a 2-month, 8-defendant trial which AUSA Podolak conducted despite being 9-months pregnant with her first child.
In February 1996, AUSA Podolak transferred to the District of Colorado, where she continued to advance the OCDETF program. In January 1997, she became a liaison to the FBI Metro Gang Task Force. She led a prosecution against 13-members of a violent drug gang. AUSA Podolak brought the first Racketeer Influenced and Corrupt Organizations (RICO) gang indictment in the district against this group.
In November 2000, AUSA Podolak received her second EOUSA Director’s Award, an OCDETF Regional Case Award, and an FBI Award for another OCDETF Operation involving the prosecution of 34 members of the MCM Sureno-13, the district’s then-dominant violent gang. The prosecution culminated in a 3-defendant, 3-week trial. Two of those defendants received life sentences.
In 2002, AUSA Podolak became the liaison to the newly created Front Range Drug Task Force, where she focused on CPOT-level targets such as cartel leader Benjamin Arellano-Felix. AUSA Podolak led an extensive investigation into the cocaine trafficking activities of Mario and Ascension Oregon-Cortez, two brothers working directly for Arellano-Felix. The investigation culminated with the arrest of 22 defendants on the same day Mexican law enforcement captured Arellano-Felix. AUSA Podolak, in another district first, charged violations of the “kingpin statute,” resulting in both brothers receiving 25-year sentences. In June 2003, this investigation received a Regional OCDETF Award.
In January 2006, AUSA Podolak returned to full-time status as the OCDETF Section Chief (and the first female section chief in the district’s criminal division). During her eight years on the management team, AUSA Podolak did work benefitting the OCDETF Section and the entire office, including working closely with DEA and the District’s OCDETF partners to propose, secure, and create a National OCDETF Strike Force in Denver and helping develop or revise a variety of office policies and processes.
As OCDETF Chief, AUSA Podolak also supervised and participated in an operation targeting 84 members of the “Rolling 30’s Gangster Crips.” AUSA Podolak personally prosecuted the gang’s violent subset known as the “Elite 8,” who were responsible for committing 12 homicides including the brutal murder-for-hire of a state’s witness. AUSA Podolak’s tireless efforts caused several gang members to flip, enter witness protection, testify against, and help convict three state court defendants charged with the drive-by killing of Denver Broncos football player Darrent Williams. In June 2009, 22 members of the prosecution team received a National OCDETF Award. In 2011, the Denver District Attorney designated AUSA Podolak an “Honorary Deputy DA.”
In January 2014, AUSA Podolak elected to step down as OCDETF Chief and became the Strike Force Group (SFG) Coordinator. As SFG Coordinator, AUSA Podolak continued to achieve outstanding success prosecuting the nation’s highest-level Drug Trafficking Operations (DTO). For example, between March 2013 and May 2015, she worked on a joint federal and state investigation of a DTO involving Jose Luis Ruelas-Torres, whose DTO controls Guasave opium gum production and smuggles hundreds of kilograms of heroin into the U.S. The DTO’s elaborate money laundering scheme involved laundering $3,000,000 to Mexico through approximately 2,500 wire-transfers. During the case, the SFG seized approximately 125 kilograms of heroin, $2,300,000, and prosecuted 40 defendants. In 2014, the entire SFG, including AUSA Podolak, received the DEA Administrator’s Award for Outstanding Group Achievement. In October 2015, the DOJ designated Ruelas-Torres a Consolidated Priority Organization Target (CPOT), only the second CPOT designation in Colorado’s history. The SFG obtained Foreign Kingpin designations for Ruelas-Torres, 18 DTO members, and 8 companies; these were the first designations stemming from a Colorado investigation. On April 15, 2017, Mexican law enforcement captured Ruelas-Torres, but he ultimately died in custody pending extradition. Another example of AUSA Podolak’s outstanding work was targeting Batamote Plaza Boss Jesus Gonzalez-Peñuelas, who controls the region’s heroin trafficking, and was wanted in Mexico for kidnapping and murder, and maintains a fleet of planes used for his trafficking.
In October 2017, DOJ designated Gonzalez-Peñuelas a CPOTIn 2017, the entire SFG, including AUSA Podolak, received a second DEA Administrator’s Award for Outstanding Group Achievement.
In addition to her work described above, AUSA Podolak has also previously served as the District’s SLC, gang coordinator, violent crimes coordinator, EEOC and sexual harassment coordinator, and Special Counsel to the Criminal Chief. AUSA Podolak was recently selected to serve on the Attorney General’s sub-committee targeting Sinaloa drug trafficking. In her free time, AUSA Podolak is active in the Colorado Bar Association’s High School Mock Trial Program, coaching her students to 5 consecutive regional championship titles and 10 consecutive state competition appearances. She has been an indispensable component of Colorado’s OCDETF program, a significant contributor to the national OCDETF effort, and a valued member of the DOJ and local communities.
Arizona Woman Pleads Guilty to Possession with Intent to Distribute Methamphetamine in IowaRead the Press Release
A woman who possessed with the intent to distribute methamphetamine pled guilty December 8, 2020, in federal court in Sioux City.
Brisa Paniagua-Trejo, 40, from Casa Grande, Arizona, was convicted of one count of possession with intent to distribute methamphetamine.
At the plea hearing, Paniagua-Trejo admitted that on February 5, 2020, a Woodbury County Sheriff’s Deputy conducted a traffic stop of the vehicle she was driving. Upon conducting a search within the vehicle, law enforcement discovered approximately 75 grams of methamphetamine, approximately 30 grams of cocaine, a used marijuana pipe, drug paraphernalia, several phones, two scales, and four rounds of .40 caliber ammunition. Paniagua-Trejo was previously convicted of possession with intent to manufacture/deliver methamphetamine, in the Iowa District Court for Woodbury County, and drug possession in the Minnesota District Court for Faribault County.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Paniagua-Trejo remains in custody of the United States Marshal and will remain in custody pending sentencing. Paniagua-Trejo faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4054. Follow us on Twitter @USAO_NDIA.
Agawam Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
BOSTON – An Agawam man pleaded guilty yesterday in federal court in Springfield to stealing two firearms and selling and trading them for drugs.
David Poirier, 26, pleaded guilty to one count of theft of a firearm from a licensed firearms dealer and one count of possession, sale or disposal of a stolen firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 5, 2021.
Between June 18 and 23, 2020, Poirier stole a STI Edge 40 caliber pistol, a Glock 34 9 mm pistol, a Stag Arms Stag 15 lower frame and cash from a family member’s locked safe, and then traded them for drugs. The family member holds a Federal Firearms License (“FFL”) and owns a firearms business.
The charging statutes each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Agawam Police Chief Eric Gillis made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Springfield Branch Office is prosecuting the case.
This prosecution 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.
Acting Manhattan U.S. Attorney Announces Additional Distribution of More Than $488 Million to Victims of Madoff Ponzi SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Attorney General Bill Barr, Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today that the Madoff Victim Fund established by the Department of Justice began its sixth distribution to victims of funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. The distribution will include approximately $488 million in additional funds, bringing the total distributed to date to almost $3.2 billion. The funds will be sent to nearly 37,000 victims worldwide, the sixth payment to victims that will bring their total recovery from all sources of compensation to 80.05% of their losses. The Madoff Victim Fund will ultimately return to victims more than $4 billion in assets that have been recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
Acting Manhattan U.S. Attorney Audrey Strauss said: “This Office continues its efforts to seek justice for victims of history’s largest Ponzi scheme. 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.”
Assistant Attorney General Brian C. Rabbitt said: “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. 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.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled 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, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions, and is overseen by Richard Breeden, the former Chairman of the United States 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.
Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the 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. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Ms. Strauss praised the work of the FBI and the Madoff Victim Fund, and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the case. The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.
40 Charged in Largest Federal Racketeering Conspiracy in South Carolina HistoryRead the Press Release
A federal grand jury has returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history.
The indictment alleges a sprawling criminal enterprise whereby inmates with the South Carolina Department of Corrections (SCDC), often through the use of contraband cell phones, orchestrated murder, kidnapping, firearms distribution, and an international drug operation.
The grand jury returned an indictment charging the defendants with conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, and several charges under the Violent Crimes in Aid of Racketeering (VICAR) statute. Of the 40 defendants, 24 defendants were charged in the initial indictment in this case for conduct related to their alleged roles in the drug trafficking organization.
“The defendants allegedly operated a violent and lucrative drug enterprise on behalf of the Insane Gangster Disciples while incarcerated,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department is committed to investigating and prosecuting gang-related crimes no matter where they occur, including holding those accountable who engage in criminal activity while in prison.”
“To anyone who would try to harm the people of South Carolina with violence, intimidation or extortion, we are coming after you wherever you are,” said U.S. Attorney Peter M. McCoy Jr. of the District of South Carolina. “Neither pandemic nor prison walls will provide refuge from the full force of the federal government. While the U.S. Attorney’s Office in South Carolina has a long and respected history of seeking justice for victims of crime, in the past year, my office has taken an even deeper look into the violence of organized crime and drug gangs. As such, we have sought and received some of the harshest sentences of any U.S. Attorney’s Office in the country. Be it in jail or on the outside, organized crime organizations in South Carolina will be sought out as aggressively as the law allows.”
“This was a complex, multi-jurisdictional investigation aimed at taking down an alleged criminal operation of historic reach in our states,” said Special Agent in Charge Vince Pallozzi of the Bureau of Alcohol, Tobacco, and Firearms (ATF) Charlotte Field Division. “The brazen criminal acts charged fueled gun violence and drug trafficking in numerous counties and cities. To shut down this alleged operation is a major win for public safety in South Carolina.”
“This alleged vast and brazen criminal enterprise only could have been dismantled by a united and dedicated team of law enforcement officers from across this state,” said Special Agent in Charge Susan Ferensic of the FBI’s Columbia Field Office. “The FBI is proud to be part of that team. We will see this investigation through and will remain vigilant to identify and arrest all those who try to destroy our communities through violence and drug trafficking.”
The case began in July 2017 as an investigation by a number of agencies, including ATF, the Lexington County Multi-Agency Narcotics Enforcement Team, and the Eleventh Circuit Solicitor’s Office, into methamphetamine trafficking and the illegal sale of firearms. As the investigation grew, the evidence led law enforcement to focus on the Insane Gangster Disciples (IGD), a branch of the nationwide gang Folk Nation.
According to the indictment, several IGD members ran a drug empire from SCDC with the use of contraband cellphones, assistance from individuals outside of prison, and other means. Further, the indictment alleges that several incarcerated IGD members ordered violent retaliatory measures against those they believed were providing information to law enforcement and against individuals they believed had stolen drug proceeds or owed money to the gang. It is alleged these violent acts, to include murder and kidnapping, were often carried out by IGD members outside the jails. Additionally, the 101-page indictment alleges that to perpetuate the enterprise and to maintain and extend its power, members and associates of the gang committed, attempted to commit, and conspired to commit, additional acts such as armed robbery, extortion, arson, assault and battery, drug trafficking, money laundering, and obstruction of justice.
The following defendants have been charged in the indictment for conduct related to their alleged roles in the RICO conspiracy and related crimes:
- Matthew J. Ward, aka “Bones,” 36; Rebecca Martinez, 33; Cynthia Rooks, 52; Richard Ford, 62; Amber Hoffman, 26; Samuel Dexter Judy, 29; Montana Barefoot, 25; Benjamin Singleton, 46; Kayla Mattoni, 38; Alexia Youngblood, 38; Clifford Kyzer, 35; Mark Edward Slusher, 46; Aaron Michael Carrion, aka “Cap G,” 28; and Crystal Nicole Bright, 40, all of Lexington, South Carolina;
- Lisa Marie Costello, 43; Aaron Corey Sprouse, 29; James Robert Peterson, aka “Man Man,” 32; Catherine Amanda Ross, 28; Brandon Lee Phillips, aka “Lil B,” 36; Billy Wayne Ruppe, 55; and Windy Brooke George, 21, all of Gaffney, South Carolina;
- Arian Grace Jeane, 26; Heather Henderson Orrick, 33; Joshua Lee Scott Brown, 23; Alex Blake Payne, 28; Sally Williams Burgess, aka “Cricket,” 37; and Edward Gary Akridge, aka “G9,” “G9 the Don,” and “Eddie Boss,” 28, all of Greenville, South Carolina;
- John Johnson, 36, of Gaston, South Carolina;
- Kelly Still, 43, of Windsor, South Carolina;
- Kelly Jordan, 34, of Williamston, South Carolina;
- Robert Figueroa, 43, and Brian Bruce, 48, of West Columbia, South Carolina;
- Tiffanie Brooks, 36, of Columbia, South Carolina;
- Juan Rodriguez, aka “Fat Boy,” 40, of Woodruff, South Carolina;
- Jonathan Eugene Merchant, aka “Merck,” 27, of Laurens, South Carolina;
- Jennifer Sorgee, 36, of Easley, South Carolina;
- Brittney Shae Stephens, 32, of Anderson, South Carolina;
- Matthew Edward Clark, 41, of York, South Carolina;
- Virginia Ruth Ryall, 43, of Gastonia, North Carolina, and,
- Lisa Marie Bolton, 32, of Dallas, North Carolina.
Of these defendants, Ward, Peterson, Akridge, and Rodriguez were serving sentences in SCDC at the time the alleged crimes were committed.
In connection with the investigation, agents seized more than 40 kilograms of methamphetamine, more than 130 firearms, and various quantities of heroin and fentanyl.
An indictment merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the ATF, FBI, Lexington County Sheriff’s Department, Lexington County Multi-Agency Narcotics Enforcement Team, SCDC, Greenville County Sheriff’s Office, Anderson County Sheriff’s Office, South Carolina Law Enforcement Division, Cherokee County Sheriff’s Office, Laurens County Sheriff’s Office, and Richland County Sheriff’s Department. The South Carolina Attorney General’s Office, Fifth Circuit Solicitor’s Office, Eighth Circuit Solicitor’s Office, Eleventh Circuit Solicitor’s Office, and Thirteenth Circuit Solicitor’s Office also assisted with the case.
Trial Attorney Lisa Man and Principal Deputy Kim Dammers with the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorneys Justin Holloway and Brandi Hinton of the District of South Carolina, and Special Assistant U.S. Attorney Casey Rankin with the Eleventh Circuit Solicitor’s Office are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local 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.
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.
- Matthew J. Ward, aka “Bones,” 36; Rebecca Martinez, 33; Cynthia Rooks, 52; Richard Ford, 62; Amber Hoffman, 26; Samuel Dexter Judy, 29; Montana Barefoot, 25; Benjamin Singleton, 46; Kayla Mattoni, 38; Alexia Youngblood, 38; Clifford Kyzer, 35; Mark Edward Slusher, 46; Aaron Michael Carrion, aka “Cap G,” 28; and Crystal Nicole Bright, 40, all of Lexington, South Carolina;
40 Charged in Largest Federal Racketeering Conspiracy in South Carolina HistoryRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that a federal grand jury has returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history. The indictment alleges a sprawling criminal enterprise whereby inmates with the South Carolina Department of Corrections (SCDC), often by means of contraband cell phones, orchestrated murder, kidnapping, firearms distribution, and an international drug operation.
Specifically, the grand jury charged 17 of the defendants with conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a statute designed to eliminate organized crime and prosecute the racketeering activities of these organizations. Several of the crimes alleged in the indictment were charged under the Violent Crimes in Aid of Racketeering (VICAR) statute, which makes it a crime for a person to commit any of a list of violent crimes in return for, among other things, maintaining or increasing position within the enterprise. Of the 40 defendants, 24 defendants were charged in the initial indictment in this case for conduct related to their alleged roles in the enterprise’s drug trafficking organization.
“The defendants allegedly operated a violent and lucrative drug enterprise on behalf of the Insane Gangster Disciples while incarcerated,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department is committed to investigating and prosecuting gang-related crimes no matter where they occur, including holding those accountable who engage in criminal activity while in prison.”
“To anyone who would try to harm the people of South Carolina with violence, intimidation or extortion, we are coming after you wherever you are,” said United States Attorney McCoy. “Neither pandemic nor prison walls will provide refuge from the full force of the federal government.”
The case began in July 2017 as an investigation by a number of agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lexington County Multi-Agency Narcotics Enforcement Team, and the Eleventh Circuit Solicitor’s Office, into methamphetamine trafficking and the illegal sale of firearms. The investigation grew and began to focus on the Insane Gangster Disciples (IGD), a branch of the nationwide gang Folk Nation.
According to the indictment, several IGD members, while SCDC inmates and with the assistance of others on the outside, ran a drug empire from prison using contraband cell phones and other means. Further, the indictment alleges that several IGD members in prison ordered violent retaliatory measures against those they believed were providing information to law enforcement and against individuals they believed had stolen drug proceeds or owed money to the gang. It is alleged these violent acts, to include murder and kidnapping, were often carried out by IGD members outside the jails. Additionally, the 101-page indictment alleges that to perpetuate the enterprise and to maintain and extend its power, members and associates of the gang committed, attempted to commit, and conspired to commit, additional acts such as armed robbery, extortion, arson, assault and battery, drug trafficking, money laundering, and obstruction of justice.
“While the U.S. Attorney’s Office in South Carolina has a long and respected history of seeking justice for victims of crime, in the past year, my office has taken an even deeper look into the violence of organized crime and drug gangs,” United States Attorney McCoy added. “As such, we have sought and received some of the harshest sentences of any U.S. Attorney’s Office in the country. Be it in jail or on the outside, organized crime organizations in South Carolina will be sought out as aggressively as the law allows.”
“This was a complex, multi-jurisdictional investigation aimed at taking down an alleged criminal operation of historic reach in our states,” said ATF Special Agent in Charge Vince Pallozzi. “The brazen criminal acts charged fueled gun violence and drug trafficking in numerous counties and cities. To shut down this alleged operation is a major win for public safety in South Carolina.”
“This alleged vast and brazen criminal enterprise only could have been dismantled by a united and dedicated team of law enforcement officers from across this state,” said FBI Special Agent in Charge Susan Ferensic. “The FBI is proud to be part of that team. We will see this investigation through and will remain vigilant to identify and arrest all those who try to destroy our communities through violence and drug trafficking.”
“As alleged in the indictments, illegal cell phones enabled these inmates to operate a sophisticated, international drug trafficking ring from inside prison walls,” said Bryan Stirling, Director of the S.C. Department of Corrections. “We cannot ensure the public is safe from criminals until states are allowed to jam cell phone signals. We need Congress to act on this pressing public safety issue and schedule a hearing on the Cellphone Jamming Reform Act.”
“This case is another example of how joint cooperation, sharing of information, and good communication between state, federal, and local agencies can be most productive for the cause of justice in South Carolina,” said South Carolina Attorney General Alan Wilson, who thanked all the state, federal, and local agencies involved in this joint investigation, including the contributions of State Grand Jury Division staff.
“It goes without saying that the success of this case would not have materialized if it weren’t for the intentional open line of communication between all the agencies involved,” said Greenville County Sheriff Hobart Lewis. “The tremendous collaboration between agencies and their willingness to put the success of the investigation above all else is a testament to the professionalism in our state and I am so proud to be a part of this law enforcement family.”
“I’m proud of the cooperation of law enforcement involved in this case and the officers from our agency,” said Cherokee County Sheriff Steve Mueller. “The criminals who desire to prey on our citizens should know we stand ready to pursue them relentlessly using all available resources at the local, state and federal level to hold them accountable for violating the law.”
“This case is a result of hard work and long hours,” said Laurens County Sheriff Don Reynolds. “I’m proud of the hard work by the Laurens County Sheriff’s Office. I’m also glad for the team effort of all involved to achieve these results.”
“We are proud to have worked with all the participating local, state and federal agencies to get a high volume of drugs and guns off the street,” said Lexington County Sheriff Jay Koon. “Communities are safer because of all the cooperation between agencies. With strong relationships in place, we can really make a difference in the lives of those we serve.”
“Criminals will realize that law enforcement agencies work together,” said Richland County Sheriff Leon Lott. “And even if they try to take advantage of jurisdictional lines, they will not get away with their misdeeds. No matter how long it takes, we will get them.”
“The interagency partnership in this case was unprecedented and has increased the safety of not only our community but those throughout the state as well,” said Anderson County Sheriff Chad McBride.
“Once again, we see the tremendous cooperation of law enforcement in South Carolina,” said Pickens County Sheriff Rick Clark. “Our professional narcotics agents across the state work tirelessly to make these arrests and fight the war on drugs in our communities.”
The following defendants have been charged in the indictment for conduct related to their alleged roles in the RICO conspiracy and/or related crimes:
- Matthew J. Ward, a/k/a “Bones,” 36, of Lexington;
- Rebecca Martinez, 33, of Lexington;
- Cynthia Rooks, 52, of Lexington;
- Richard Ford, 62, of Lexington;
- Amber Hoffman, 26, of Lexington;
- Samuel Dexter Judy, 29, of Lexington;
- Brian Bruce, 48, of West Columbia;
- Montana Barefoot, 25, of Lexington;
- John Johnson, 36, of Gaston;
- Kelly Still, 43, of Windsor;
- Benjamin Singleton, 46, of Lexington;
- Kayla Mattoni, 38, of Lexington;
- Alexia Youngblood, 38, of Lexington;
- Clifford Kyzer, 35, of Lexington;
- Kelly Jordan, 34, of Williamston;
- Mark Edward Slusher, 46, of Lexington;
- Robert Figueroa, 43, of West Columbia;
- Tiffanie Brooks, 36, of Columbia;
- Crystal Nicole Bright, 40, of Lexington;
- Brittney Shae Stephens, 32, of Anderson;
- Arian Grace Jeane, 26, of Greenville;
- Lisa Marie Costello, 43, of Gaffney;
- Aaron Corey Sprouse, 29, of Gaffney;
- Matthew Edward Clark, 41, of York;
- James Robert Peterson, a/k/a/ “Man Man,” 32, of Gaffney;
- Edward Gary Akridge, a/k/a “G9,” a/k/a “G9 the Don,” a/k/a/ “Eddie Boss,” 28, of Greenville;
- Aaron Michael Carrion, a/k/a “Cap G,” 28, of Lexington;
- Heather Henderson Orrick, 33, of Greenville;
- Virginia Ruth Ryall, 43, of Gastonia, North Carolina;
- Lisa Marie Bolton, 32, of Dallas, North Carolina;
- Catherine Amanda Ross, 28, of Gaffney;
- Brandon Lee Phillips, a/k/a “Lil B,” 36, of Gaffney;
- Billy Wayne Ruppe, 55, of Gaffney;
- Windy Brooke George, 21, of Gaffney;
- Juan Rodriguez, a/k/a “Fat Boy,” 40, of Woodruff;
- Jonathan Eugene Merchant, a/k/a/ “Merck,” 27, of Laurens;
- Joshua Lee Scott Brown, 23, of Greenville;
- Jennifer Sorgee, 36, of Easley;
- Alex Blake Payne, 28, of Greenville; and
- Sally Williams Burgess, a/k/a “Cricket,” 37, of Greenville.
Of these defendants, Ward, Peterson, Akridge, and Rodriguez were serving sentences in SCDC at the time the alleged crimes were committed.
Every defendant charged in the RICO conspiracy faces the potential penalty of life in prison due to sentencing enhancements through IGD’s involvement in murders and significant drug trafficking. Additionally, the defendants charged with murder in aid of racketeering and kidnapping in aid of racketeering also face life imprisonment. There are additional penalties for those charged with firearms crimes, drug crimes, robbery, and assault.
In connection with the investigation, law enforcement seized approximately 40 kilograms of methamphetamine, more than 130 firearms, and various quantities of heroin and fentanyl.
The case was investigated by the ATF, Federal Bureau of Investigation (FBI), Lexington County Sheriff’s Department, Lexington County Multi-Agency Narcotics Enforcement Team, SCDC, Greenville County Sheriff’s Office, Anderson County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Cherokee County Sheriff’s Office, Laurens County Sheriff’s Office, Pickens County Sheriff’s Office, and Richland County Sheriff’s Department. The South Carolina Attorney General’s Office, Fifth Circuit Solicitor’s Office, Seventh Circuit Solicitor’s Office, Eighth Circuit Solicitor’s Office, Eleventh Circuit Solicitor’s Office, and Thirteenth Circuit Solicitor’s Office also assisted with the case.
The prosecutors on the case are Assistant United States Attorneys Justin Holloway and Brandi Hinton, of the Greenville office, Special Assistant United States Attorney Casey Rankin with the Eleventh Circuit Solicitor’s Office, Department of Justice (DOJ) Trial Attorney Lisa Man, and Principal Deputy Kim Dammers with DOJ’s Organized Crime and Gang Section.
This case is being prosecuted as part of the joint federal, state, and local 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.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
igd_-_rico_vicar_-_dsc_-_indictment.pdf
3 Defendants Arrested for over $13 Million Fraud Scheme to Obtain Loans Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Amaleka McCall-Brathwaite, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA-OIG”), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrests of NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO for a fraudulent scheme to obtain over $13 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for COVID-19 relief available from the Paycheck Protection Program (“PPP”) of the SBA, the defendants falsely and grossly overstated the number of employees and payroll at their nail salons and other businesses through fraudulent and doctored payroll and tax records in order to obtain larger loans. The defendants were arrested this morning. VICTORIA HO will be presented tomorrow in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn. NGUYEN and DAT HO will be presented in United States District Court for the Eastern District of New York in connection with these and other unrelated charges.
Acting U.S. Attorney Audrey Strauss said: “As alleged, these defendants conspired to rip off the SBA’s COVID-relief small business loan program and financial institutions by lying about how many people they employed in their family business and how much they paid those employees. They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic. Thanks to the combined efforts of the SBA, the FBI, and IRS-CI, the defendants face prosecution.”
SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said: “Falsifying documents to fraudulently gain access to SBA program funds is unconscionable. OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
FBI Assistant Director William F. Sweeney Jr said: “The benefits offered by the CARES Act for PPP loans were established to help small businesses survive during the pandemic. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank. Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them. When the bank froze the funds, they froze as well, conducting Internet searches for topics related to PPP fraud. Today’s Internet search for ‘PPP Loan Fraud Arrests’ will certainly produce an unwanted result – one that includes the name of their company leading the headlines.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “In this difficult time when many Americans are struggling financially, it is repugnant that there are those who would fraudulently take advantage of relief efforts offered. IRS-Criminal Investigation remains dedicated to working with our law enforcement partners to ensure that these types of fraud are investigated and the offenders are punished to the fullest extent of the law.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application.
NGUYEN, VICTORIA HO, and DAT HO are members of a family that owns a chain of over 15 nail salons called “Victoria Nails & Spa” and other companies (the “Victoria Companies”) in or around the New York metropolitan area, including the Bronx, Brooklyn, and Long Island. From at least in or about April 2020 through at least in or about June 2020, NGUYEN, VICTORIA HO, and DAT HO engaged in a scheme to submit online applications to at least two financial institutions for a total of over $13 million in government-guaranteed loans for the Victoria Companies through the SBA’s PPP. In connection with these loan applications, the defendants falsely and grossly overstated the number of employees at the Victoria Companies and wages paid to those employees in order to obtain larger loans. In order to support the false representations in the loan applications about the number of employees at, and the wages paid by, the Victoria Companies, the defendants submitted fraudulent and doctored payroll and tax records. In addition, the defendants falsely listed the same employees in applications for different nail salons to support the loan amounts applied for, and some purported employees were listed as employees of as many as seven different nail salons during the same time period.
Based on the fraudulent PPP loan applications submitted by NGUYEN, VICTORIA HO, and DAT HO, a total of more than $13 million in PPP loans were approved for the Victoria Companies and approximately $7.8 million in loan proceeds were disbursed into bank accounts controlled by NGUYEN, DAT HO, and other family members. After the defendants learned that a hold was placed on bank accounts of the Victoria Companies that received PPP loans issued by one financial institution due to suspicion of fraudulent activity, one of the defendants conducted Internet searches for “PPP Fraud,” “PPP Loan Fraud Arrests,” and “How to get rid of a PPP Loan.” The defendants thereafter withdrew the applications for and/or repaid the PPP loans for the Victoria Companies issued by that financial institution.
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NGUYEN, 44, and VICTORIA HO, 31, both of Hicksville, New York, and DAT HO, 33, of the Bronx, New York, are each charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the investigative work of the SBA-OIG, FBI, and IRS-CI, and noted that the investigation remains ongoing. Ms. Strauss also thanked Homeland Security Investigations and the U.S. Attorney’s Office for the Eastern District of New York for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael C. McGinnis and Sagar K. Ravi are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
9 December 2020
“Thief-In-Law’s” Money Launderer Pleads Guilty in Manhattan Federal CourtRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced the plea by DANIEL DANIEL of Miami, Florida, to the charge of conspiring to commit money laundering by concealing the proceeds of criminal activity. As described below, DANIEL conspired with Razhden Shulaya to launder the proceeds of the illicit activities of the Shulaya Enterprise, a prolific criminal organization dismantled in June 2017 upon the arrests of Shulaya and over twenty-five other members and associates of the Shulaya Enterprise. DANIEL faces a maximum term of twenty years in prison. DANIEL pled guilty before United States District Judge Loretta A. Preska.
Manhattan Acting U.S. Attorney Audrey Strauss said: “Money launderers like Daniel sit at the nexus of the legitimate world of finance and an international network of criminal activity. They embolden, enrich, and facilitate pernicious criminal actors, and seek to place well-heeled criminals like Razhden Shulaya beyond accountability. Today’s plea is another example of this Office’s dedication to uprooting and prosecuting these criminal facilitators.”
According to the Complaint and Indictment filed in the case, as well as statements made during the plea proceedings and earlier court appearances:
The Shulaya Enterprise was an organized criminal group controlled by Razhden Shulaya, a “vor v zakone,” which is a Russian phrase translated roughly as “Thief-in-Law,” and which refers to high-level criminal figures from the former Soviet Union who receive tribute from other criminals and laypersons within the vor’s protection, license criminal activity by others, and resolve disputes between members of the criminal community. Shulaya and the Shulaya Enterprise engaged in widespread criminal activities, including the transportation and sale of stolen property, wire and bank fraud, illegal gambling operations, extortion of debtors to its gambling operation, and the use of false identification documents and counterfeit credit cards in order to illegally purchase merchandise. Shulaya operated the Shulaya Enterprise in and around the New York City area, including in Manhattan and Brooklyn, as well as in other parts of the country, including Las Vegas, Los Angeles, and Southern Florida.
DANIEL facilitated the activities of the Shulaya Enterprise by conspiring with Shulaya and others to launder proceeds of the illicit activities of the Enterprise. DANIEL assisted Shulaya in establishing a purported vodka import-export business referred to as “Tropport” and related Tropport bank accounts that DANIEL knew were being used as fronts for laundering the criminal proceeds of the Shulaya Enterprise. As Shulaya’s money laundering consultant, DANIEL explained that Tropport would provide “a cover for where [Shulaya obtained his] money”; advised Shulaya on the details of fabricating documents to reflect nonexistent corporate debt in order to falsely lower Tropport’s tax liability; and described how this sham company and false documentation would allow the vor to plausibly deny any potential money laundering allegations.
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Ms. Strauss praised the outstanding work of the FBI, including the New York Eurasian Organized Crime Task Force and the Atlantic City, Los Angeles, Las Vegas, and Miami offices, U.S. Customs and Border Protection, and the NYPD for their investigative efforts and ongoing support and assistance with the case.
DANIEL is scheduled to be sentenced by Judge Preska on March 30, 2021.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Jessica Greenwood is in charge of the case.
Weston Man Sentenced for Wire Fraud in International Student Recruitment SchemeRead the Press Release
BOSTON – A Weston man was sentenced today in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.
Keenam “Kason” Park, 59, of Weston, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 60 months in prison, three years of supervised release and ordered to pay restitution of at least $5,192,330. In August 2020, Park pleaded guilty to one count of wire fraud.
Park caused EduBoston to collect tuition and other payments from students’ families for the 2019-2020 academic year but failed to remit tuition payments to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business around September 2019. As a result, EduBoston owes over $5 million to partnering schools and students’ families.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities, Financial and Cyber Fraud Unit prosecuted the case.
West Des Moines Man Sentenced to Seven Years in Prison for Possession of Child PornographyRead the Press Release
DES MOINES, IA – On December 7, 2020, United States District Judge Rebecca Goodgame Ebinger sentenced Bryant Dale Voss, age 33, of West Des Moines, to 84 months in prison for Possession of Child Pornography announced United States Attorney Marc Krickbaum. Voss was ordered to serve five years of supervised release to follow his prison term and comply with sex offender registry requirements upon release.
The investigation began in July 2017 when law enforcement were operating a law enforcement version of the file sharing program BitTorrent in an undercover capacity. Agents located child pornography files available for sharing from Voss’ computer and downloaded multiple files from him in July 2017. Voss knew that his file sharing program made certain child pornography files on his computer available to others to download. Subsequently, investigators executed a search warrant at Voss’ West Des Moines residence where they seized his computers and electronic devices. The investigation showed that Voss knowingly possessed hundreds of images and ten videos of child pornography on an external hard drive and used his computer to knowingly access and view videos of child pornography.
This matter was investigated by the Iowa Department of Criminal Investigation’s Internet Crimes Against Children Task Force and the FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Wagoner Man Pleads Guilty to Burglary in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandon Allen Howe, age 38, of Wagoner, Oklahoma entered a guilty plea to two counts of Burglary In The First Degree In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, and Title 21, Oklahoma Statutes, Section 1431, punishable by up to 20 years’ imprisonment, a fine up to $250,000.00, or both for each count.
The Indictment alleged that on or about September 11, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did break and enter, into the dwelling house of V.T., in which there was at the time some human being, with intent to commit some crime therein, while armed with a dangerous weapon.
The Indictment further alleged that on or about September 11, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did break and enter, into the dwelling house of S.R., in which there was at the time some human being present, with intent to commit some crime therein.
The charges arose from an investigation by the Wagoner County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.