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9 December 2020
Florida man indicted for unlawfully accessing IRS system and fraudulently filing tax returnsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Keith Joseph, of Miami, Florida, was indicted on multiple counts of wire fraud and aggravated identity theft, U.S. Attorney Bill Powell announced.
Joseph, age 37, was indicted on six counts of “Wire Fraud” and six counts of “Aggravated Identity Theft.” Joseph is accused of fraudulently accessing the Internal Revenue Service (IRS) eAuthentication online taxpayer system, which has servers located in Berkeley County, from March 2015 to March 2017. Joseph allegedly obtained personal identifying information of taxpayers without their knowledge to gain access to the IRS online taxpayer system. Once he had access, Joseph unlawfully obtained income tax transcripts and fraudulently filed tax returns using the taxpayers’ personal identifying information. The total amount claimed by the fraudulent returns in the scheme was at least $152,948.00.
Joseph faces up to 20 years incarceration and a fine of up to $250,000 for each of the wire fraud counts and two years incarceration for each of the aggravated identity theft counts. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Treasury Inspector General for Tax Administration Cybercrime Investigations Division investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Pleads Guilty to Participating in Immigration Marriage Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that SHELDON STEPHENSON, 28, of North Lauderdale, Florida, pleaded guilty yesterday to a conspiracy charge stemming from his participation in an immigration marriage fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Michael P. Shea occurred via videoconference.
According to court documents and statements made in court, Jodian Stephenson operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, Jodian Stephenson conspired with others, including Sheldon Stephenson, to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining “lawful permanent residence” (“LPR”) status, also known as a “green card.”
As part of the scheme, Jodian Stephenson prepared several immigration documents needed as part of the non-citizen’s LPR application. She had the applicant and spouse sign the documents and, in many cases, mailed the documents to the U.S. Citizenship and Immigration Service immigration authorities for the applicant. In some cases, Jodian Stephenson or her assistants prepared other false documents for the couple, such as a false lease that portrayed the couple as living together.
Jodian Stephenson typically charged between $17,000 and $20,000 to complete this process for a non-citizen, and the citizen spouse received between $2,000 and $4,000 for his or her participation.
In pleading guilty, Sheldon Stephenson admitted that he assisted Jodian Stephenson in arranging four such sham marriages. Sheldon Stephenson helped to introduce the couples, helped them obtain marriage licenses, prepared their immigration paperwork, and coached them for their immigration service interviews.
Sheldon Stephenson pleaded guilty to one count of conspiracy to commit immigration marriage fraud, which carries a maximum term of imprisonment of five years. He is released on a $50,000 bond while awaiting sentencing, which is not scheduled.
On August 19, 2019, Jodian Stephenson pleaded guilty to the same offense. She also awaits sentencing.
Six other individuals, including U.S. citizens who entered into one or more fraudulent marriages with non-citizens, have been convicted for participating in this scheme.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
First of four members of ‘Atomwaffen’ Neo-Nazi group sentenced to 16 months in prison for plot to intimidate journalists and advocatesRead the Press Release
Seattle – A 21-year-old Arizona man was sentenced today in U.S. District Court in Seattle to 16 months in prison for his role in a plot to deliver threatening posters to journalists and advocates, announced U.S. Attorney Brian T. Moran. JOHNNY ROMAN GARZA pleaded guilty September 8, 2020, to conspiracy to mail threatening communications, to commit stalking, and to interfere with federally protected activities. GARZA is one of four men indicted in February 2020 for their plot to deliver threatening posters to journalists and advocates for minority groups. At the sentencing hearing, U.S. District Judge John C. Coughenour observed that since his guilty plea, GARZA had attempted to educate himself about the minority groups he targeted with hate and work to undo some of the harm he inflicted. In imposing the sentence Judge Coughenour noted the “critically important role that the press has in informing the public.” Prison time was necessary the judge said, “given the severity of this conduct and the horrible impact it had on people that are important in our society.”
“While this defendant did not hatch this disturbing plot, he enthusiastically embraced it, researching addresses for journalists and those who oppose hate in our communities,” said U.S. Attorney Moran. “Ultimately in the dark of night he delivered a hateful, threatening poster -- spreading fear and anxiety. Such conduct has no place in our community.”
“The United States and other nations fought a global war to rid the world of murderous threats and violence by Nazis. The nation and its allies defeated Nazi Germany, but Nazi-inspired threats and violence continue to plague this nation and others 75 years after the end of World War II. The defendant threatened a Jewish journalist and conspired to intimidate journalists and advocates who worked to expose anti-Semitism around the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Threats motivated by religious intolerance are unacceptable, and so too are threats aimed at those who work to end such discrimination. The Justice Department will continue the fight against neo-Nazi-related threats and violence and is committed fully to investigating and prosecuting anyone who commits hate crimes.”
In his plea agreement, GARZA admitted that he conspired with the other defendants via an encrypted online chat group to identify journalists and advocates to threaten in retaliation for the victims’ work exposing anti-Semitism. The group focused primarily on journalists and advocates who were Jewish or people of color. In a message to the other co-defendants, GARZA explained that the plot was designed to “have them all wake up one morning and find themselves terrorized by targeted propaganda.” On the night of January 25, 2020, GARZA placed a poster on the bedroom window of a prominent Jewish journalist that depicted a figure in a skull mask holding a Molotov cocktail in front of a burning home. The poster contained the victim’s name and address and warned, “Your actions have consequences. Our patience has its limits . . . You have been visited by your local Nazis.”
“Protecting our communities from terrorism, both domestic and international, is a top priority for the FBI,” said FBI Seattle Acting Special Agent in Charge Earl Camp. “Mr. Garza, along with his conspirators, targeted and intimidated journalists from minority groups with communications threatening violence. We are proud of the collaborative nationwide efforts of the FBI’s Joint Terrorism Task Forces and other law enforcement partners to hold these individuals accountable for their actions.”
GARZA told Judge Coughenour that he had joined the conspiracy at a time of “darkness and isolation.” He said he “fell in with the worst crowd you could fall in with.” GARZA says the consequences of his actions have made him a changed person.
Defendant Taylor Ashley Parker-Dipeppe, 21, of Tampa, Florida, pleaded guilty in September 2020 and is scheduled for sentencing on February 24, 2021. The two leaders of the conspiracy, Kaleb Cole and Cameron Brandon Shea, are scheduled for trial on March 22, 2021.
The case was investigated by the FBI’s Joint Terrorism Task Forces in Tampa, Seattle, Houston, and Phoenix, with assistance from the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Woods and Civil Rights Division Trial Attorney Michael J. Songer, with assistance from National Security Division Trial Attorney David Smith and U.S. Attorney’s Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.
Federal Jury Convicts Illinois Man for Bombing the Dar Al-Farooq Islamic CenterRead the Press Release
Today, a federal jury returned guilty verdicts against MICHAEL HARI, 49, for his role in the bombing of the Dar al-Farooq (“DAF”) Islamic Center in Bloomington, Minnesota, on August 5, 2017. The announcement was made by United States Attorney for the District of Minnesota Erica H. MacDonald, Assistant Attorney General Eric S. Dreiband of the Department of Justice’s Civil Rights Division, and Special Agent in Charge of the FBI's Minneapolis field office Michael Paul. Following a five 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 35 years in prison. A sentencing date before U.S. District Judge Donovan W. Frank will be scheduled at a later time.
“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 United States Attorney Erica H. MacDonald. “Today’s guilty verdicts represent a condemnation of that hatred and uphold 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. I also want to extend my deepest gratitude to the members of DAF who, despite their fears, showed strength and resiliency by testifying at trial. I hope today’s verdict offers a sense of peace as the community moves forward.”
“I commend the outstanding efforts of the trial team from the United States 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.”
"Extremist violence such as this – fueled by exclusive, insular hatred and intended to intimidate Minnesotans based simply on their faith – will not be tolerated by the FBI and our regional law enforcement partners,” said Michael Paul, special agent in charge of the FBI's Minneapolis field office. “Today's verdict is a strong warning to criminal extremists conspiring and calculating to target innocent Americans because of their personal beliefs. Our ranks are universally steadfast in our commitment to the FBI’s core mission – to protect our communities and to protect the rights of all Americans.”
As proven at trial, during the summer of 2017, HARI established a terrorist militia group called “The White Rabbits” in Clarence, Illinois. HARI recruited co-defendants Michael McWhorter and Joe Morris to join the militia, which he outfitted with paramilitary equipment and assault rifles. On August 4 and 5, 2017, HARI, McWhorter, and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. HARI targeted DAF to terrorize 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 August 5, 2017, at approximately 5:00 a.m. At HARI’s direction, Morris used a sledgehammer to break the window of the Imam’s office at DAF, and he threw a plastic container with a mixture of diesel fuel and gasoline into the office. Also at HARI’s direction, McWhorter then lit the fuse on a 20-pound black powder pipe bomb 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 Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.
On January 24, 2019, McWhorter and Morris pleaded guilty to their roles in the bombing.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
United States Attorney MacDonald thanks Assistant United States Attorneys John Docherty, Allison Ethen and Timothy Rank, Justice Department Civil Rights Division Trial Attorney Timothy Visser, Lead Paralegal Specialist Lynette Simser, Witness Specialists Jeffery Knopps and Selina Kolsrud, Community Affairs Director Angie LaTour, former Assistant United States Attorney Julie Allyn, and the special agents of the FBI’s Minneapolis and Springfield, Illinois Divisions, the ATF, and the Bloomington Police Department for their hard work and commitment to the pursuit of justice. United States Attorney further thanks the Justice Department’s Civil Rights Division, the United States Attorney’s Office for the Central District of Illinois and the FBI’s Springfield field office for their collaboration and partnership. United States Attorney MacDonald also thanks Assistant United States Attorney Eugene Miller, of the Central District of Illinois, for his support and assistance to this case.
Defendant Information:
MICHAEL HARI, 49
Clarence, Ill.
Convicted:
- Intentionally Defacing, Damaging, and Destroying any Religious Real Property Because of the Religious Character of that Property, 1 count
- Intentionally Obstructing, and Attempting to Obstruct, by Force and the Threat of Force, the Free Exercise of Religious Beliefs, 1 count
- Conspiracy to Commit Federal Felonies by Means of Fire and Explosives, 1 count
- Carrying and Using a Destructive Device During and in Relation to Crimes of Violence, 1 count
- Possession of an Unregistered Destructive Device, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Drug Trafficker for Providing Half-Million Dollars to Purchase 20 Kilograms of CocaineRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Anthony Tommy Foster, 45, of Mokena, Illinois, of conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over the two-day trial, which ended today.
U.S. Attorney Murray is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in North Carolina; Chief Chad Hawkins of the Belmont Police Department; Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD); Chief Joseph D. Ramey of the Gaston County Police Department; Chief Travis Brittain of the City of Gastonia Police Department; Chief Don Roper of the Mt. Holly Police Department; and Michael Eiss of the Waxhaw Police Department.
According to filed court documents and evidence presented at trial, Foster was involved in a drug trafficking conspiracy with his two co-defendants, Reynaldo Padilla and Alejandro Padilla. Trial evidence established that on June 29, 2020, Reynaldo Padilla and Alejandro Padilla arranged the purchase of 20 kilograms of cocaine for $500,000. Trial evidence further established that Reynaldo Padilla and Alejandro Padilla met with Foster on the same day in Belmont, N.C. At that meeting, Foster handed Reynaldo Padilla a duffel bag that contained $500,000 in cash. According to trial evidence, the conspirators intended to make future purchases of 100 to 200 kilograms of cocaine, per transaction.
Both Reynaldo Padilla and Alejandro Padilla have pleaded guilty to conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine, and are currently awaiting sentencing.
Foster is in federal custody. Foster is facing a sentence of 15 years to life in prison per charge, due to his prior federal drug trafficking conviction. A sentencing date for Foster has not been set.
In making today’s announcement, U.S. Attorney Murray thanked ICE-HSI, the Belmont Police Department, CMPD, the Gaston County Police Department, the City of Gastonia Police Department, the Mt. Holly Police Department, and the Waxhaw Police Department for the investigation and coordination in this case.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Federal Grand Jury A Indictments Announced for DecemberRead the Press Release
United States Attorney Trent Shores today announced the results of the December 2020 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Joshua Michael Arneecher. Third Degree Burglary in Indian Country. (superseding) Arneecher, 33, of Tulsa, is charged with breaking into the victim’s vehicle with intent to steal items of value. The Tulsa Police Department and FBI are the investigative agencies.
Samuel James Bray and Morgan Alexandria Guevin. Robbery in Indian Country; Attempted Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Bray, 32, and Guevin, 30, both of Tulsa, are charged with stealing and attempting to steal jewelry and a motor from the victim by force and intimidation. Further, they are both charged with brandishing a firearm during this crime of violence. The FBI and Tulsa Police Department are the investigative agencies.
Donta Keith Davis. Bank Robbery With a Dangerous Weapon; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Davis, 38, of Sayre, is charged with robbing a bank by brandishing a firearm. The FBI and Tulsa Police Department are the investigative agencies.
David Allen Dean. Felon in Possession of Firearm and Ammunition; Possession of Heroin With Intent to Distribute; Possession of a Short-Barrel Shotgun in Furtherance of a Drug Trafficking Crime. Dean, 38, of Tulsa, is charged with being a felon in possession of a Mossberg 12-gauge shotgun with a 15 5/8in barrel and ammunition. Dean is a 4-time convicted felon. Further, Dean allegedly possessed heroin with the intent to distribute. He is also being charged with possessing the Mossberg short barrel shotgun in furtherance of a drug trafficking crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Chaney Hair. Distribution of Methamphetamine. Hair, 28, of Hinton, is charged with distributing methamphetamine. The Oklahoma Bureau of Narcotics and Dangerous Drugs is the investigative agency.
Grant N. Jackson IV. Child Abuse in Indian Country. Jackson, 40, of Tulsa, is charged with child abuse after allegedly burning the young victim with scalding hot bathtub water. The FBI and Tulsa Police Department are the investigative agencies.
Floyd Twobears Joshua. Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Joshua, 20, of Sapulpa, is charged with intentionally possessing with intent to distribute 50 grams or more of methamphetamine. He is also being charged with possessing a Taurus Judge .45 Colt/.410 caliber pistol in furtherance of a drug trafficking crime. The Drug Enforcement Administration and Jenks Public Schools Police Department are the investigative agencies.
Sajjad Ali Khan. Abusive Sexual Contact in Indian Country. Khan, 50, of Tulsa, allegedly touched the victim inappropriately without her consent. The FBI, Sapulpa Police Department, and Oklahoma State Bureau of Investigations are the investigative agencies.
John Kimble. Felon in Possession of a Firearm and Ammunition. Kimble, 32, of Tulsa, is charged with being a felon in possession of a Glock, .22 caliber pistol and ammunition. Kimble is a 10-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Ryan Glen McClain. Assault With a Dangerous Weapon in Indian Country; Assault by Striking, Beating, and Wounding in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Dating Partner in Indian Country. (Superseding) McClain, 37, of Tulsa, is charged with 3 counts of assault. On Sept. 10, McClain allegedly assaulted his dating partner by striking and wounding her with his fists and a television. The FBI and Tulsa Police Department are the investigative agencies.
Dominique Laron Morgan; Rontaysha Leann Cox; Treveon Marquise Cato. Sex Trafficking of Children; Possession of Marijuana With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of a Firearm and Ammunition; Coercion and Enticement of a Minor to Engage in Sexual Activity; Possession of Material Involving the Sexual Exploitation of Minors. (Superseding) Morgan, 25, of Tulsa; Cox, 27, of Wichita, Kansas; and Cato, 23, of Tulsa, allegedly recruited, enticed, harbored, and advertised a minor to participate in sexual activity, profiting from her exploitation. Advertisements for the teenager were discovered on a website promoting prostitution and soliciting sex acts in exchange for money. Morgan is further charged with possession of marijuana with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm and ammunition, and coercion and enticement of a minor to engage in sexual activity. Cox is also charged with possession of a firearm in furtherance of a drug trafficking crime (added in this superseding indictment), coercion and enticement of a minor to engage in sexual activity, and possession of material involving the sexual exploitation of minors. The Tulsa Police Department Vice-Human Trafficking Unit, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Ryan Thomas Phillips. Strangulation of a Dating and Intimate Partner in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Dating Partner in Indian Country. Phillips, 28, of Mound, is charged with two counts of assault. On April 25, Phillips allegedly assaulted his dating partner by strangling her and striking her in the face. The FBI and Glenpool Police Department are the investigative agencies.
Jonathon Ray Scott. Robbery in Indian Country. Scott, 36, of Tulsa, is charged with robbery after allegedly taking money from the victim by means of force and violence. The FBI and Tulsa Police Department are the investigative agencies.
David Owen West. Mail Fraud; Engaging in Unlawful Monetary Transactions. (Superseding) West, 59, of Drumright, is charged with 27 counts of mail fraud and 5 counts of engaging in unlawful monetary transactions. From 2013 to 2017, West allegedly devised a scheme to defraud his employer for the sake of monetary gain. According to the indictment, West oversaw the oil and gas sites for his company and was in charge of choosing vendors to assist in the maintenance and transport of production. West allegedly began stealing oil and selling it to another company. Further, West allegedly created an LLC so that the purchasers would pay him and his LLC for the stolen production. West not only defrauded his employer in this way, but also allegedly had his employer pay for the transportation and maintenance that were required for the sale of the stolen production. West had his employer mail company checks through the U.S. Postal Service; therefore, committing mass mail fraud and engagement in unlawful monetary transactions. The FBI and IRS–Criminal Investigation are the investigative agencies.
Jerry Paul Wright. Theft in Indian Country. Wright, 47, of Tulsa, is charged with stealing a 2006 Dodge Ram pickup truck from the victim. The FBI and Tulsa Police Department are the investigative agencies.
Essex County Man Admits Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted possessing a handgun in furtherance of a drug trafficking crime, U.S. Attorney Craig Carpenito announced today.
Ricky Terrell, 24, of Newark, pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of a firearm in furtherance of a drug trafficking crime, specifically, the possession with intent to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From February 2019 through February 2020, law enforcement officers investigated individuals who controlled an open-air drug market that operated within Stephen Crane Village.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that numerous individuals conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village.
On Feb. 25, 2020, law enforcement lawfully searched Terrell’s residence and recovered heroin and cocaine, a Smith & Wesson .40 caliber handgun, and numerous rounds of ammunition.
The possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison, a maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), in which the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
This case is also a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office in Newark.
Drug Traffickers Sentenced to 12+ Years in PrisonRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that two men from Las Vegas, Nevada, responsible for distributing large quantities of methamphetamine to the Shreveport/Bossier City area have been sentenced by United States District Judge S. Maurice Hicks, Jr.
Rodolfo Baires, a/k/a “Seiko,” 33, of Las Vegas, Nevada, was sentenced to 151 months (12 years, 7 months) in prison followed by 5 years of supervised release for conspiracy to possess with intent to distribute methamphetamine with intent to distribute.
James Lee Logan, 59, of Las Vegas, Nevada, was sentenced to 63 months (5 years, 3 months) in prison, followed by 5 years of supervised release for possession of methamphetamine with intent to distribute.
According to evidence introduced in Court, during the month of May 2017, agents with the Drug Enforcement Administration learned that an individual from Las Vegas with the nickname “Seiko” was planning to send a large quantity of methamphetamine to the Shreveport/Bossier City area sometime during that month. Law enforcement agents learned that someone named “James” would be delivering the narcotics, as well as a description of the vehicle he would be driving.
During the early morning hours of May 26, 2017, a Louisiana State Police Trooper conducted a traffic stop of a vehicle for a traffic violation. The vehicle was being driven by James Lee Logan. Logan advised law enforcement officers that he was traveling from Las Vegas to Shreveport. An open-air search was conducted by a K-9 officer which resulted in a positive indication of the presence of narcotics on a spare tire located in the rear of the vehicle. A search of the spare tire revealed eight packages of suspected methamphetamine wrapped in cellophane and brown tape, weighing 6,100 grams. The narcotics were sent to the DEA Crime Lab and tests confirmed that it was in fact methamphetamine.
Utilizing an informant after Logan’s arrest, agents received several recorded phone calls from “Seiko” inquiring as to the whereabouts of “James.” Agents were able to confirm that “Seiko” was in fact Rodolfo Baires and he was living in Las Vegas. Agents obtained a photo of Baires and a confidential source confirmed that Baires and “Seiko” were in fact one in the same and he was the individual responsible for sending 6,100 grams of methamphetamine that was seized from James Lee Logan in the Western District of Louisiana.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
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Dominican National Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Dominican national previously residing in Malden pleaded guilty today in federal court in Boston to passport fraud.
Jairo Antonio Feliz, 35, pleaded guilty to two counts of making a false statement in a passport application. U.S. District Judge Douglas P. Woodlock scheduled sentencing for April 6, 2021.
In November 2011, Feliz applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a U.S. citizen. In October 2012, Feliz again applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a different U.S. citizen.
The charge of making a false statement in a passport application provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $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 and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State's Diplomatic Security Service, Boston Field Division made the announcement. Assistant U.S. Attorneys Bill Abely and Charles Dell’Anno of Lelling’s Major Crimes Unit are prosecuting the case.
Doctor Admits Distributing Opioids to Patients and Soliciting Sexual Favors from Patients in Exchange for OpioidsRead the Press Release
TRENTON, N.J. – A New York doctor today admitted distributing opioids without a legitimate medical reason and soliciting sexual favors from patients in exchange for opioid prescriptions, U.S. Attorney Craig Carpenito announced.
Joseph Santiamo, 65, of Staten Island, New York, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiracy to distribute oxycodone, a controlled dangerous substance.
“This defendant knowingly prescribed for his patients dangerous quantities of oxycodone, and even more egregiously, solicited sexual favors from certain patients who were struggling with substance abuse in exchange for writing them additional opioid prescriptions,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”
“This defendant not only violated his oath to help people, he took advantage of them when they were most vulnerable for his own selfish needs,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The only difference between him and a person who deals drugs on the street is the white lab coat he wears. The men and women of the DEA are always committed to pursue those who choose to violate the law.”
According to documents filed in this case and statements made in court:
From Jan. 1, 2012, through May 3, 2018, Santiamo owned and operated a medical practice in Staten Island focused on internal medicine and geriatric care. He prescribed large quantities of oxycodone outside the ordinary course of professional practice and without a legitimate medical purpose. For a number of his patients, there was no medical necessity for Santiamo to treat them with oxycodone, nor to prescribe the large quantities that he did. In addition, Santiamo solicited sexual favors from certain of his younger patients in exchange for unlawful oxycodone prescriptions. These patients were all under the age of 40 at the time Santiamo provided them with prescriptions and thus would not typically be treated by a geriatric care physician like Santiamo. In some instances, Santiamo did this despite evidence that certain patients were abusing opioids.
The count of conspiracy to distribute oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for April 12, 2021.
U.S. Attorney Carpenito credited special agents, diversion investigators and task force officers of the DEA, under the direction of Special Agent in Charge Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Adam Baker and Chief of the Opioids Unit Melissa Wangenheim in Newark.
Denton County Methamphetamine Dealer Sentenced for Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 41-year-old Highland Village, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Bryan Thomas Smith pleaded guilty on August 14, 2020, to possession with intent to distribute methamphetamine and was sentenced to 70 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented in court, on Feb. 14, 2020, officers in Highland Village surveilled Smith’s residence in reference to previously-issued felony warrants for evading arrest in a motor vehicle. Officers stopped a vehicle for a traffic violation as it left the house. The driver was identified as an Uber driver, while the passenger falsely identified himself as “Fletcher Smith.” Officers, however, recognized the passenger as Bryan Thomas Smith and detained him. Although Smith continued to falsely maintain that he was “Fletcher Smith,” officers retrieved a wallet from the ground with Bryan Thomas Smith’s driver’s license inside. This wallet also contained $104 dollars in genuine and counterfeit United States currency. Officers also seized a glass smoking pipe from Smith’s person, and additionally found a bag in the backseat of the Uber vehicle. A later inventory conducted at the police department revealed the bag to contain:
• Counterfeit currency and uncut sheets of counterfeit currency totaling $2,220
• A journal with Smith’s name written inside the cover
• Handwritten account numbers and passwords
• A smaller bag containing four baggies of methamphetamine
• A smaller bag containing multiple MDMA tablets
• A tin case containing 16 amphetamine and dextroamphetamine pills
• Three baggies containing 13 alprazolam pills
On Feb. 18, 2020 officers executed a search warrant at Smith’s residence, locating and seizing additional amounts of methamphetamine and counterfeit United States currency. Police also seized items related to the production of counterfeit U.S. currency, including computers and printers.
Smith was indicted on March 12, 2020. On April 7, 2020, police went to Smith’s residence to execute the arrest warrant for Smith. Smith, who was standing outside near the home, once again falsely identified himself as Fletcher Smith. In an attempt to deceive officers on behalf of her son, Smith’s mother also claimed that the defendant’s identity was Fletcher Smith. Officers went into the residence to search for Smith before realizing Smith had provided a false name. Smith, meanwhile, fled from police on foot into a wooded area towards Lake Lewisville. Law enforcement pursued Smith, who jumped into the lake and tried to swim across. After nearly drowning, Smith exited the lake and attempted to hide in the woods, before being taken into custody.
This case was investigated by the U.S. Drug Enforcement Administration, U.S. Secret Service and Highland Village Police Department and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
Del City Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kami Rai Gill, age 34, of Del City, Oklahoma entered a guilty plea to Drug Conspiracy in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that beginning on November 4, 2016 and continuing until on or about the date of Indictment, in the Eastern District of Oklahoma and elsewhere, Kami Rai Gill did willfully and knowingly combine, conspire, confederate, and agree with others known and unknown, including Enrique Pacheco and Lilliana Alvarez Soto, to violate federal drug laws by acquiring kilograms of heroin and distributing it for money. On two separate dates in August 2019, Gill possessed with the intent to distribute over 500 grams of heroin in Oklahoma City.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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 Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
Defendants Sentenced for Drug Trafficking, Witness Tampering, and Other Related OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Janet T. Neff sentenced Melvin James Harris, 46, of Peshawbestown, Michigan, to 240 months in prison for committing five felonies between August and November, 2019. A jury convicted Harris in July 2020 of distributing cocaine, assaulting a federal officer, contempt of court, conspiracy to witness tamper, and witness tampering. The jury also convicted Harris’ sister, Vanessa Louis Hunter, 45, of Rockford, Illinois, of conspiring with Harris to tamper with a witness. A third member of the conspiracy, Corey John Raphael, pled guilty to joining the conspiracy as well. Hunter was sentenced to 18 months in prison, and Raphael was sentenced to 33 months.
The evidence at trial showed that on August 14, 2019, Harris sold cocaine to an individual who was assisting police with narcotics investigations. Harris chose the location for the sale – a spot within the Grand Traverse Band of Ottawa and Chippewa Indians’ community, commonly known as Peshawbestown. Four days later, Harris assaulted a federal officer who was attempting to arrest him.
In September 2019, Harris was charged in federal court with distributing cocaine and assaulting an officer. After he learned the identity of the person who had assisted police with the narcotics investigation, Harris conspired with Hunter, Raphael, and others to tamper with that witness, in an effort to discourage the witness from testifying against him. Harris ultimately succeeded in contacting the witness through intermediaries and asked the witness not to go to court. Harris also disseminated the witness’s name and other personal information in violation of a court order. He used the jail’s phone system to do so, and he directed his co-conspirators and associates to further disseminate the information through Facebook and other means. Additional charges against Harris, Hunter, and Raphael soon followed.
Harris has a long, violent criminal history and was classified as a “career offender” at sentencing. In its sentencing memo, the United States emphasized Harris’ extensive criminal history, which started in his teens and continued unabated into his 40’s. The United States noted that violence and drug trafficking were recurrent themes throughout his history, and he had earned 18 criminal history points. The United States noted at sentencing that Harris had literally made a career out of crime, and it was time for that career to end.
As for Harris, Hunter, and Raphael’s efforts to tamper with witnesses and obstruct justice, the United States argued that this conduct struck at the heart of the criminal justice system and warranted a significant sentence.
“The sentences imposed in this case send a clear message to those who would try to sell drugs, assault federal officers, and tamper with witnesses,” said U.S. Attorney Andrew Birge. “My Office takes these cases seriously and will vigorously prosecute them.”
This case was jointly investigated by the Traverse Narcotics Team, Drug Enforcement Administration, Grand Traverse Band Tribal Police Department, Leelanau County Sheriff’s Office, and Michigan State Police.
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Defendant Sentenced in $25 Million Diamond Ponzi SchemeRead the Press Release
Miami, Florida – A South Florida federal district judge sentenced a Washington D.C. man who operated a fraudulent diamond investment scheme to serve 84 months in federal prison and pay over $23 million in victim restitution.
From about May 2014 through May 2019, defendant Jose Angel Aman and his partners solicited people throughout the United States and Canada to invest in diamond contracts. Aman and his partners promised investors that they would use the money to purchase rough colored diamonds for Aman to cut, polish and resell at a profit. They reassured investors that their money was safe because it was secured by Aman’s inventory of diamonds (purportedly valued at $25 million). Aman and his partners presented the investment as a high return, no risk deal.
These promises and statements were false. Aman rarely used investors’ money to purchase, cut, and resell rough diamonds. Nor did Aman have a $25 million diamond inventory. To conceal the fraud, Aman made purported interest payments to existing investors with money from new investment victims. At the end of the investment period, Aman and the partners would convince the investors to roll over their money by falsely claiming that the investors had the full value of their investments to put into new deals. They provided sham “Reinvestment Contracts” to the investors, a tactic they used to buy time until Aman could locate new investors and additional money.
When this scheme was about to collapse, Aman set up a new business, Argyle Coin, LLC, which was purportedly in the business of developing a cryptocurrency token backed by diamonds. Aman solicited new investors for Argyle, promising high rates of return with no risk. Aman used only a fraction of the money received from Argyle investors to develop a cryptocurrency token. He used most of it to pay purported interest payments to the earlier investors and to benefit himself and his partners.
During the course of the Ponzi scheme, Aman and his partners collected over $25 million from hundreds of investors. Among other things, Aman used the money to support his lavish lifestyle.
Aman was sentenced by U.S. District Judge Rodolfo A. Ruiz II, who sits in Fort Lauderdale. This matter was investigated by FBI West Palm Beach, with assistance from the Florida Office of Financial Regulation. AUSAs Ellen Cohen and Adrienne Rabinowitz prosecuted this case.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-80062.
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Cryptocurrency Founder “Bruno Block” Charged with Multimillion-Dollar Tax Evasion SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Kelly R. Jackson, Special Agent in Charge of the Washington, D.C., Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced today the unsealing of an Indictment in Manhattan federal court charging AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” with tax evasion. As alleged, ELMAANI made millions of dollars from the sale of a new cryptocurrency but evaded reporting that income to the IRS, including by filing a false tax return, operating his business and owning assets through pseudonyms and shell companies, obtaining income through nominees, and dealing in gold and cash. ELMAANI was arrested this morning in Martinsburg, West Virginia, and will be presented later today before United States Magistrate Judge Robert W. Trumble in the Northern District of West Virginia. The case is assigned to Chief United States District Judge Colleen McMahon in the Southern District of New York.
In a separate civil action, the Securities and Exchange Commission is filing civil charges against ELMAANI today.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Amir Bruno Elmaani purported to establish a high-tech method of financing a high-tech business, but the underlying scheme was old-fashioned fraud and tax evasion. Elmaani allegedly generated millions by soliciting investor money through his own cryptocurrency, adding to the purportedly fixed number of tokens and converting them to other cryptocurrencies, and failing to report or pay tax on any of the proceeds. Thanks to the FBI and IRS-CI, Elmaani is now in custody and facing federal prosecution.”
FBI Assistant Director William F. Sweeney Jr. said: “Taking advantage of the ever-so-popular cryptocurrency market, Elmaani allegedly capitalized on the investments of those who purchased virtual currency through Oyster Pearl, which he founded. As it turns out, Elmaani was funneling the proceeds of his alleged cryptocurrency scheme through a shell company that hid the true nature of his financial interests, ultimately never paying taxes on his earnings. With minimal reported income in 2018, he still managed to spend over $10 million for the purchase of yachts, but after today’s arrest, he won’t be sailing anywhere anytime soon.”
IRS Special Agent-in-Charge Kelly R. Jackson said: “Ensuring the integrity of our tax system is a priority of IRS-CI. Evading taxes only aims to deteriorate the confidence in this system and those who fail to pay their fair share will be investigated. Using cryptocurrency as a means to defraud and evade taxes will not stop our agents from doing what we do best – following the money.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
In September and October 2017, ELMAANI began promoting online his new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person.
In the fall of 2017 and thereafter, ELMAANI sold Pearl tokens to the investing public through an “initial coin offering” and on cryptocurrency market platforms. ELMAANI announced that he intended to take a “founder’s share” of Pearl tokens for his own personal use. ELMAANI owned and controlled the subsequently established company Oyster Protocol Inc. through a shell company not associated with his true name.
In a statement issued under ELMAANI’s online pseudonym on June 7, 2018, ELMAANI stated that he was retaining millions of Pearl tokens as his “ownership stake” in Oyster Protocol, but that he had to move the tokens to a different cryptocurrency wallet “in order to avoid being double-taxed.” In truth, ELMAANI did not report or pay tax on any of his cryptocurrency proceeds. At various points, ELMAANI used friends and family as nominees to receive cryptocurrency proceeds and transfer them or U.S. currency to his own accounts.
ELMAANI dealt substantially in precious metals, kept gold bars in a safe on a yacht he owned, and used large amounts of cash to pay personal expenses.
In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name.
While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc., after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users.
ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the IRS in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates.
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ELMAANI, 28, is charged with two counts of tax evasion, each of 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 defendant will be determined by a judge.
Ms. Strauss praised the investigative work of the FBI and IRS-CI and also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham and Drew Skinner are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Civil Rights Division Opens Investigation into Potential Discrimination in Public ContractingRead the Press Release
The Department of Justice Civil Rights Division has opened an investigation into whether the public contracting and procurement practices of Kansas City, Missouri, comply with the U.S. Constitution and the Civil Rights Act of 1964.
“No person anywhere in the United States should be subjected to unlawful discrimination on the ground of race, color or national origin, and the Civil Rights Act makes Kansas City, Missouri’s receipt of federal funding contingent on keeping that commitment,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “All government in this free country must treat all persons with equal dignity and respect and without dividing people into racial and ethnic blocs for the purpose of labelling certain people winners and others losers because of their race. The Department of Justice today opened an investigation to determine whether Kansas City, Missouri’s contracting program complies with the United States Constitution and the Civil Rights Act.”
According to publicly available information, for at least 24 years, Kansas City has used quota-based “set asides” in nearly 30 percent of all public contract dollars to favor certain people because of their race and sex and disfavor others.
The department is opening an investigation into Kansas City’s public contracting and procurement programs to determine whether those programs violate Title VI, which prohibits race discrimination by entities receiving federal funds
Title VI incorporates the anti-discrimination protections of the Equal Protection Clause of the U.S. Constitution’s Fourteenth Amendment. Discrimination on the ground of race in public contracting in the form of quota-based set asides may violate the Equal Protection Clause, which provides that “[n]o state shall . . . deny to any person within its jurisdiction the equal protection of the laws.”
“Classifications based on race carry a danger of stigmatic harm. Unless they are strictly reserved for remedial settings, they may in fact promote notions of racial inferiority and lead to a politics of racial hostility.” See City of Richmond v. J.A. Croson Co., 488 U.S. 469, 493 (1989) (plurality opinion). Quota-based set asides may violate both the Equal Protection Clause and Title VI. In City of Richmond, the Supreme Court determined that a 30 percent minority set-aside by the City of Richmond, Virginia violated the Constitution.
The notice of investigation is not a finding of fault or wrongdoing by the city or any other individual or entity, and the department has not reached any conclusions about these matters.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Charlie Peeler Announces Resignation as U.S. Attorney for the Middle DistrictRead the Press Release
MACON, Ga. – Charlie Peeler, the U.S. Attorney for the Middle District of Georgia, is resigning as U.S. Attorney effective 11:59 p.m., December 11, 2020. Following his resignation, he plans on reentering private practice with a law firm in Atlanta, Georgia.
“Serving as the United States Attorney for the Middle District of Georgia has been the most rewarding experience of my professional career. I thank the President for the trust he placed in me, and I thank Attorney General Barr and former Attorney General Sessions for their leadership and support. I am deeply grateful for the opportunity to have worked with the talented men and women in the United States Attorney’s Office and our brave and dedicated federal, state and local law enforcement to protect our citizens and make the Middle District of Georgia a better place,” said U.S. Attorney Peeler.
“I want to thank U.S. Attorney Charlie Peeler for his dedicated service to the people of Georgia,” said Governor Brian Kemp. “Working together, we cracked down on gang violence and made incredible progress in our fight to end human trafficking in Georgia. On behalf of all Georgians, Marty and I are grateful for Charlie’s steadfast commitment to the Peach State, and we wish him well in his future endeavors.”
“Charlie Peeler has served the state of Georgia with honor and integrity as the United States Attorney for the Middle District of Georgia,” said Attorney General Chris Carr. “As a long-time friend, I had the pleasure of speaking at USA Peeler’s swearing-in ceremony to kick off his tenure, and every day since, we have been partnering to combat gang violence, eradicate human trafficking, curb opioid abuse, crack down on Medicaid fraud and more. USA Peeler will leave the Middle District in a safer and more prosperous state, and he will be missed as he returns to private practice. We thank him greatly for his service these past three years.”
“It has been an honor and a privilege to work with Charlie Peeler over the last three years. Charlie has been a good friend to law enforcement throughout the state of Georgia,” said U.S. Marshal John Cary Bittick. “In my opinion, Charlie has been a great United States Attorney and a great representative of the Middle District of Georgia.”
“It has been an honor working side-by-side with Charlie Peeler. He has done a great job as the U.S. Attorney and we will miss him,” said GBI Director Vic Reynolds.
“The citizens of this state and this country should be grateful for the commitment, dedication and accomplishments that U.S. Attorney Charlie Peeler has achieved over the past three years,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI could not be more appreciative of the partnership we have developed with him and his office in our effort to protect our citizens and uphold our Constitution. All of us at the FBI Atlanta field office and resident agencies in the Middle District of Georgia wish this great public servant as much success in private practice.”
“The citizens of the Middle District of Georgia were well served by U.S. Attorney Charles Peeler,” said Robert J. Murphy, the Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division. “It was refreshing to work with a man whose guiding principles were doing what was right and making the community a safer place. Charlie worked hand-in-hand with law enforcement on a daily basis to make sure we were bringing to justice those who preyed on our community. I wish Charlie well in his future endeavors. Hopefully, Charlie will have an opportunity to serve our country again.”
“U.S. Attorney Charlie Peeler understands the needs of each community he has served,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “As the U.S. Attorney, Charlie Peeler has served with distinction and honor. He has inspired us to seek justice for those who cannot do it on their own. He has provided an example of courage for us to emulate and even though he holds a high position, he is a friend to each one of us. The Atlanta Field Division extends profound gratitude to U.S. Attorney Peeler for his service to the Nation and to our Georgia communities.”
“The United States Secret Service and the US Attorney’s Office, Middle District of Georgia, have always been strong partners. United States Attorney Charlie Peeler made that relationship even better throughout his tenure,” said Clint A. Bush, Resident Agent in Charge, United States Secret Service, Albany Georgia Resident Office. “United States Attorney Peeler maintained an unwavering dedication to ensure those who sought to commit financial fraud against the United States of America and the citizens of Georgia would be held accountable. His professional contributions to safeguard our financial system and communities have greatly benefited us all and for that we are very grateful.”
U.S. Attorney Peeler, a graduate of the University of Georgia and the University of Georgia School of Law, has served as the U.S. Attorney for the Middle District of Georgia since 2017. During his tenure, U.S. Attorney Peeler implemented an effective and sustainable strategy to combat violent crime in all five divisions in the Middle District of Georgia. He also created a Complex Fraud Unit in the Office to detect, investigate and eliminate fraud by maximizing parallel civil and criminal divisions’ resources. During his three-years as U.S. Attorney, the Office grew to its highest number of Assistant U.S. Attorneys and prosecuted more criminal defendants than any other three-year period in the Office’s recorded history. The U.S. Attorney’s Office also began reentry forums, pairing recently released inmates with non-profits to assist them in obtaining jobs, housing and education. Under U.S. Attorney Peeler’s leadership, the office partnered with the Peyton Anderson Foundation, the Federal Defender’s Office and the U.S. District Court to create and distribute “Armed With Knowledge,” an educational program centered on a short film warning children and teenagers of the life-altering consequences of unlawful firearm possession.
U.S. Attorney Peeler served on the Attorney General’s Subcommittee for Cybercrime and Intellectual Property and the Subcommittee for Service Members and Veterans Rights. U.S. Attorney Peeler also chaired the Department of Justice’s Investment Review Board, which is responsible for vetting and recommending technology purchases for the Department of Justice.
The Middle District of Georgia covers 70 of Georgia’s 159 counties and includes Albany, Valdosta, Columbus, Macon and Athens. The U.S. Attorney’s Office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, fraud, firearms, illegal gangs and narcotics. The office also defends the United States in civil cases, pursues civil fraud matters on behalf of the United States and collects debts owed to the United States. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Charleston Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Christopher Ryan Christian Counts, 28, of Charleston, pled guilty to possession of child pornography.
“Egregious crime,” said United States Attorney Mike Stuart. “Counts is a repeat offender with two prior sex offense convictions in state court. We will continue to prosecute to the fullest extent of the law those who prey on our children.”
Counts admitted that on December 31, 2019, he possessed 259 images and 14 videos of child pornography, many of which depicted prepubescent minors engaged in sexually explicit conduct. Some of the images and videos contained scenes depicting minors and infants engaged in sadistic or masochistic conduct. Counts has two prior sex offense convictions in Kanawha County Circuit Court.
Counts faces up to twenty years in prison when sentenced on March 29, 2021.
The West Virginia State Police Internet Crimes Against Children (ICAC) Task Force and Homeland Security Investigations (HSI) conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Julie M. White is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00130.
Follow us on Twitter: SDWVNews and USAttyStuart
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Cambridge area psychiatrists to pay more than half million dollars in False Claims Act settlementRead the Press Release
COLUMBUS, Ohio – In a False Claims Act Settlement signed this week, two eastern Ohio psychiatrists and their practice group have agreed to pay more than $500,000 to the United States for submitting false claims to Medicare.
According to the settlement, Drs. Ali and Imad Melhelm submitted claims to Medicare from January 2013 through December 2019 that violated the False Claims Act. The doctors are practicing psychiatrists with Neurobehavioral Medicine Consultants, PC, Inc. (NMC), which provides mental health services and substance abuse treatments to patients in several states. Dr. Ali Melhelm is the owner of NMC. Both individuals served as treating psychiatrists at Cambridge Behavioral Hospital in Guernsey County. Ali Melhelm also served as the inpatient facility’s Medical Director.
The United States asserted that the doctors admitted medically ineligible patients to the hospital, improperly delayed patient discharges, and billed for services and visits that did not occur or were billed at a higher rate than was supported by the records.
As part of the settlement, the Melhelms will pay $549,092 to the United States, of which $274,546 is restitution.
Assistant United States Attorneys Andrew M. Malek, Brandi Stewart and Michael Downey are representing the United States in this case.
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Businessman Pleads Guilty to Paycheck Protection Program FraudRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to bank fraud by submitting a fraudulent application for a Paycheck Protection Program (PPP) loan, and then using the loan proceeds for his own personal benefit, including making large cash withdrawals and travel to Las Vegas.
According to court documents, Scott Suber, 39, submitted to Celtic Bank a fraudulent application for a loan under the PPP, a program instituted by Congress in an effort to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees. In the application, it was falsely represented that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000. In support of the fraudulent application, a false Form 941, Employer’s Quarterly Federal Tax Return was submitted, claiming that the business had quarterly wages of $420,000 and federal tax withholding of $36,620. These figures were completely false and fabricated. In addition, Suber submitted a bank statement with an altered date in support of the application.
Celtic Bank approved and funded a PPP loan for the business in the amount of $350,000 and transferred the funds to an account Suber maintained in the name of Debris or Not Debris Property Preservation, Inc. at Wells Fargo Bank. In the loan application, it was stated that Debris or Not Debris Property Preservation, Inc. would use the loan proceeds for business related purposes, such as the costs of payroll, lease, and utilities. Instead, Suber used the proceeds for his own personal benefit, including making large cash withdrawals and travel to Las Vegas, and making non-business related payments to a number of individuals.
Suber is scheduled to be sentenced on May 4, 2021. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney Alan M. Salsbury is prosecuting 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. 2:20-cr-110.
Buffalo Public School Teacher Faces up to Life in Prison After Pleading Guilty to Selling Marijuana and Possessing Firearms in Furtherance of His Drug Trafficking ActivitiesRead 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 Michael Masecchia, 54, of Williamsville, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession with intent to distribute marijuana, and possession of firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who are handling the case, stated that since at least 1999 through his arrest on August 23, 2019, the defendant was involved in the sale of marijuana in the Buffalo and its surrounding suburbs. Masecchia and others also participated in marijuana grow operations in Ellicottville and Franklinville, in Cattaraugus County, NY. The marijuana grown at those operations was harvested and distributed to resellers and users. In addition, the defendant possessed firearms to protect himself, his proceeds, and property where he stored marijuana and currency.
As part of his written plea agreement, Masecchia admitted that he received sensitive law enforcement information from his co-defendant Joseph Bongiovanni, who worked as a Special Agent of the United States Drug Enforcement Administration in Buffalo. The information Masecchia received included the names of potential cooperators and whether or not the defendant and others were under federal investigation, and such information helped Masecchia and others to continue selling marijuana undetected by other members of law enforcement.
On August 23, 2019, a search warrant was executed at the defendant’s Main Street residence. During that search, investigators from Homeland Security Investigations, the Federal Bureau of Investigation, the Erie County Sheriff's Office, and the Niagara County Sheriff's Office, seized:
• $27,950.00 in U.S. currency; • Two rifles, five shotguns, and a pistol; • Various ammunition for the firearms; • Three Mason jars containing marijuana; • Various steroids in liquid and tablet form; • Hypodermic needles; • THC edibles; • Cannabis syrup; • Two grams of a white powder suspected to be cocaine; • Tylenol with Codeine tablets; • Suspected hashish; • A digital scale; • A suspected marijuana cigarette; • Numerous plastic bags and small bottles containing marijuana; and
• Four cell phones.Charges remain pending against co-defendant Joseph Bongiovanni. 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.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff's Office, under the direction of Sheriff Timothy Howard; the Niagara County Sheriff's Office, under the direction of Sheriff Michael Filicetti; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of John B. Devito.
Sentencing is scheduled for April 8, 2021, at 2:00 p.m. before Judge Sinatra.
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Arizona Man Sentenced for Misbranding and Smuggling Conspiracy Involving Online Sale and Distribution of Unapproved Drugs Obtained from OverseasRead the Press Release
PITTSBURGH, Pa. – A resident of Chino Valley, Arizona, was sentenced today in federal court for one count of conspiracy to smuggle misbranded drugs into the United States and introduce them into interstate commerce, United States Attorney Scott W. Brady announced.
United States District Judge Arthur J. Schwab sentenced Jeremy Brooks, 31, to five years of probation, including 180 days of home detention. Brooks was also ordered to forfeit a total of approximately $106,000 that was previously seized during the investigation.
During his plea hearing on August 6, 2020, Brooks admitted that between January 2016 and May 8, 2018, he engaged in a conspiracy to obtain unapproved drugs in bulk quantities from overseas suppliers, including suppliers in China, for the purpose of pressing the drugs into pills and distributing them to customers throughout the United States via an internet-based business—Domestic RCS—that he and a co-conspirator, Justin Ash, controlled. The business’s website, www.domesticrcs.com, advertised multiple unapproved or "misbranded" drugs—clonazolam, diclazepam, flubromazolam, and etizolam—each of which was a non-prescription benzodiazepine or substance with a similar chemical composition. As Brooks further acknowledged, these substances carried risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants. Although the co-conspirators’ website and the packaging contained in their shipments indicated that the substances were for "research purposes only," Brooks admitted that he was aware that the vast majority of customers purchased the drugs for individual consumption. Indeed, Brooks, Ash, or others acting at their direction communicated directly with individual customers about, among other things, the effects of the drugs when used for personal consumption. In an effort to evade detection by United States federal authorities, including the United States Food and Drug Administration, United States Postal Inspection Service, and United States Customs and Border Protection, Brooks also admitted that he and Ash caused their overseas suppliers to ship drugs to multiple addresses under their control and in smaller quantities that would draw less government scrutiny.
On November 24, 2020, in a related case, Judge Schwab sentenced Ash to 24 months’ incarceration and ordered him to forfeit approximately $780,000 in connection with his role in the conspiracy.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government. The United States Food and Drug Administration – Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the conviction in this case.
30 Members and Associates of the Pagans Motorcycle Club Facing Federal ChargesRead the Press Release
PITTSBURGH, PA – A federal grand jury in Pittsburgh has issued three separate, but related, Indictments, charging 30 residents of western Pennsylvania and eastern Ohio with narcotics trafficking and firearm possession, United States Attorney Scott W. Brady announced today.
According to U.S. Attorney Brady, the Indictments are a part of an ongoing investigation into members and associates of the Pagans Motorcycle Club (PMC or Pagans) operating in and around western Pennsylvania engaging in illegal activity, including federal violations of drug and firearm laws. The related Indictments are the result of an investigation that began in August of 2018, and ultimately led to a Title III wire investigation with intercepted communications over several telephones from August 2020 through November 2020. The defendants are alleged to have conspired to distribute controlled substances including cocaine, methamphetamine, and heroin.
"For decades, the Pagans have used violence to control cocaine, heroin and meth trafficking throughout western Pennsylvania: that stops now," said U.S. Attorney Brady. "With the arrests of thirty members and associates of the Pittsburgh chapter of the Pagan’s Motorcycle Club, including higher-ranking members, we have disrupted their criminal organization and made western Pennsylvania safer."
"The members and associates of the Pagan’s Motorcycle Club facing charges today had a complete disregard for the law and the safety of the communities they operate in," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Through joint, collaborative investigations and robust partnerships, we will continue to target the leadership of these organizations and bring them to justice for the harm caused by their criminal actions."
According to the Department of Justice, the PMC is a violent Outlaw Motorcycle Gang whose membership distribute cocaine, methamphetamine, heroin, fentanyl, marijuana and other illegal drugs. The Pagans are one of the most prominent outlaw motorcycle gangs in the eastern United States. In addition to the PMC insignia, members of the PMC wear a diamond patch with "1%" inscribed inside, which denotes their claim to be among the one percent of motorcycle riders who are not law abiding.
According to information provided to the court, the three Indictments charge 30 individuals with federal drug trafficking and firearms charges. The drugs they distributed include significant quantities of methamphetamine, cocaine and heroin. The Indictments are the result of this long-term investigation, including court-authorized wiretaps on the cell phones of key members of the Pittsburgh Chapter of the Pagans Motorcycle Club. The investigation, which was wide-spread, also resulted in identifying large-scale suppliers of narcotics not only to members and associates of the Pagans, but to local drug traffickers and suppliers within the Greater Pittsburgh Region.
During the course of the investigation, which began in August of 2018, law enforcement received information pertaining to the suspected illegal activities of Bill Rana, aka "Pittsburgh Billy", Eric Armes aka "Knuckles", Jason Evans aka "Shahid", and Patrick Rizzo, who have all been identified as suspected members or associates of the Pittsburgh Chapter of the Pagans Motorcycle Club, as well as Phillip Bonanno, who has been identified as a suspected member of an Ohio Chapter of the Pagans Motorcycle Club, and others.
The PMC members routinely hold "church", a term used to describe their weekly meetings, on Thursdays. They also appeared to hold frequent, large gatherings or parties between PMC members/associates, non-PMC members, and other outlaw motorcycle gangs, at their McKees Rocks Clubhouse, which was one of more than a dozen locations where agents executed federally-authorized search warrants on December 8, 2020.
The three Indictments were returned under seal on December 1, 2020, and unsealed yesterday.
The first Indictment contains two conspiracy counts and one firearm possession count, and names the following nine individuals as defendants:
• Bill Rana, 40, of Cheswick, PA
• Eric Armes, 42, of Cheswick, PA
• Jason Evans, 44, of Pittsburgh, PA
• Hasani James, 49, of Detroit, MI
• Cody Bonanno, 25, of Uhrichsville, OH
• Phillip Bonanno, 54, of New Philadelphia, OH
• Dominic Quarture, 52, of Washington, PA
• Mark Stockhausen, 39, of Erie, PA
• Patrick Rizzo, 45, of McKees Rocks, PA
According to this Indictment, Rana, Armes, C. Bonanno, P. Bonanno, and Quarture conspired to distribute and possess with intent to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance between January and November of 2020. The Indictment also charges Rana, Evans, James, P. Bonanno, and Stockhausen with conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, also between January and November of 2020.
The Indictment further alleges that on or about October 21, 2020, Patrick Rizzo, a convicted felon, who is prohibited from lawfully possessing a firearm, was found to be in possession of a loaded Taurus Judge .45 LC/410 pistol. As it relates to this count, the Indictment seeks forfeiture of the firearm and ammunition.
The second Indictment contains two counts and names the following nine individuals as defendants:
• Anthony Peluso, 38, of Hampton Township, PA
• Marissa Botta, 28, of Hampton Township, PA
• David Pietropaolo, 23, of Glenshaw, PA
• Thomas Snelsire, 45, of Baldwin, PA
• Wayne Webber, 42, of Duquesne, PA
• Ronald Simak, 37, of Verona, PA
• Anthony Scatena, 22, of Pittsburgh, PA
• James Stewart, 41, of Pittsburgh, PA
• Dorin Duncan, 42, of Glenshaw, PA
According to this Indictment, the above-named defendants conspired to distribute and possess with the intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance between January and November of 2020. The Indictment further alleges that Peluso, Botta and Snelsire also conspired to distribute and possess with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, also between January and November 2020.
The third Indictment contains two counts and names the following twelve individuals as defendants:
• Jeffrey Kushik, 29, of Pittsburgh, PA
• Gary Hairston, 40, of Pittsburgh, PA
• Darian Wofford, 27, of Pittsburgh, PA
• Stephanie Zilka, 27, of Baldwin, PA
• Misty Walker, 39, of Pittsburgh, PA
• Richard White, 18, of Pittsburgh, PA
• Randy Camacho, 34, of Pittsburgh, PA
• Damian Cherepko, 26, of Elizabeth, PA
• Brandon Hulboy, 29, of Pittsburgh, PA
• James Crivella, 27, of Glenshaw, PA
• Seaira Collins, 32, of Pittsburgh, PA
• Jessica Taranto, 37, of Pittsburgh, PA
According to this Indictment, Kushik, Hairston, Wofford, Zilka, Walker, Camacho, Collins, and Taranto conspired to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance between August and November of 2020. The Indictment further charges Kushik, Hairston, Wofford, Zilka, Walker, White, Cherepko, Hulboy and Crivella with conspiring to distribute and possess with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, also between August and November of 2020.
As to the conspiracy counts involving 100 grams or more of heroin and 500 grams or more of cocaine, the law provides for a minimum sentence of five years’ and a maximum sentence of 40 years’ imprisonment, a fine of not more than $5,000,000, or both. As to the conspiracy count involving 500 grams or more of methamphetamine and one kilogram or more of heroin, the law provides for a minimum sentence of 10 years’ and a maximum sentence of life imprisonment, a fine of not more than $10,000,000, or both. As to Patrick Rizzo the law provides for a maximum sentence of imprisonment of 10 years, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of each defendant.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorney Rebecca L. Silinski is prosecuting these cases on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
A video announcement regarding this case can be found here: https://youtu.be/iWAof7-KgLA
8 December 2020
“Pure Armenian Blood” Members and Associates Indicted for Racketeering and Fraud OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (“HSI”) in New York, announced the unsealing of an Indictment charging eight defendants with a variety of racketeering and fraud offenses. Of the eight defendants, NAREK MARUTYAN, ALBERT MARUTYAN, MIKAYEL YEGHOYAN, DAVIT YEGHOYAN, and VAHE HOVHANNISYAN are associated with a coast-to-coast racketeering enterprise referred to as “Pure Armenian Blood” or “P.A.B.” and are charged in United States v. Narek Marutyan, et al. (the “Indictment”), which has been assigned to U.S. District Judge Victor Marrero. Of those defendants, MIKAYEL YEGHOYAN and DAVIT YEGHOYAN were taken into federal custody and presented before U.S. Magistrate Judge Sarah Netburn today. Two defendants, ALBERT MURATYAN and VAHE HOVHANNISYAN, were presented in the Central District of California.
Three additional defendants, LUSINE GHAZARYAN, SARO MOURADIAN, a/k/a “Paul Mouradian,” and ZAVEN YERKARYAN, are charged in the Indictment with fraud-related offenses. Of those defendants, GHAZARYAN was taken into federal custody today and were presented before U.S. Magistrate Judge Sarah Netburn; YERKARYAN was presented in the Central District of California before U.S. Magistrate Judge Charles F. Eick . MOURADIAN will be presented in the Southern District of Florida before U.S. Magistrate Judge Lurana Snow.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Pure Armenian Blood members enriched themselves and their criminal associates through a raft of fraudulent schemes that included years’ long efforts to steal others’ identities, falsify documents, and spend other people’s money as though there were no consequences. Thanks to the remarkable efforts of our agency partners, spearheaded by the FBI, members of this nationwide network of crime will now face serious consequences in the form of federal charges.”
FBI Assistant William F. Sweeney Jr. said: "The members of this enterprise acted as if they were in another time, much like fiefdoms operated in the Dark Ages in which tributes were paid to protect fellow criminals and settle disputes between members under the benevolence of the vor. However the actions we allege they've taken, like using electronic devices to steal people's identities, using fake credit cards and setting up fake lines of credit at U.S. banks, are all modern day crimes. As a consequence, they now face modern justice."
HSI Special Agent in Charge Peter C. Fitzhugh said: “The only thing pure about this alleged crime syndicate is their thirst for stealing from our communities and endangering the security of our homeland from coast to coast. HSI New York is relentless in our pursuit of dismantling transnational criminal organizations, and we are grateful to have this opportunity working with our federal partners to ensure those involved will now face justice.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[[1]]
Pure Armenian Blood was an organized criminal group operating under the direction and protection of an unindicted co-conspirator (“CC-1”), a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals. Members and associates of Pure Armenian Blood operated under the direction and protection of CC-1, a vor of Armenian descent previously based in Los Angeles before being deported in or about 2018. Pure Armenian Blood operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks, particularly identity theft, access device fraud and credit card fraud, among others. While Pure Armenian Blood exploited victims and the financial system in New York City, it had operations in various locations throughout the United States and abroad, including through the use of purportedly legitimate business entities operating under the control and in conjunction with members of P.A.B. at various points throughout the conspiracy.
NAREK MARUTYAN, ALBERT MARUTYAN, a/k/a “Abo,” MIKAYEL YEGHOYAN, a/k/a “Misho,” DAVIT YEGHOYAN and VAHE HOVHANNISYAN are charged in Count One of the Indictment with racketeering conspiracy. P.A.B.’s illicit activities included:
- The use of counterfeit credit cards and stolen personal identifying information;
- Selling goods purchased with counterfeit credit cards for profit;
- Fraudulently opening and exhausting lines of credit, and then falsifying documents to “clean” the credit of account holders in whose names the lines of credit were opened (the “Account Holders”), who were often relatives or acquaintances of members and associates of Pure Armenian Blood;
- Selling access device fraud devices to other criminals to install in order to steal personal identifying information; and
- Making purchases at collusive businesses with counterfeit credit cards or credit cards that were fraudulently opened.
Along with Pure Armenian Blood members NAREK MARUTYAN, ALBERT MARUTYAN, a/k/a “Abo,” MIKAYEL YEGHOYAN, a/k/a “Misho,” DAVIT YEGHOYAN and VAHE HOVHANNISYAN, two additional defendants, LUSO GHAZARYAN and SARO MOURADIAN, a/k/a “Paul Mouradian,” are charged in Counts Two and Three with conspiracy to commit fraud relating to means of identification and conspiracy to commit access device fraud. Each of these seven defendants, as well as ZAVEN YERKARYAN, are charged in Count Four with conspiracy to commit mail and wire fraud.
Defendants MIKAYEL YEGHOYAN and DAVIT YEGHOYAN are each charged with one count of Aggravated Identity Theft, in Counts Five and Six, respectively.
* * *
Ms. Strauss praised the outstanding work of FBI New York’s Eurasian Organized Crime Squad, as well as the FBI’s New Jersey, Los Angeles, and Miami offices, Homeland Security Investigations, the New York City Police Department, the United States Postal Inspection Service, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case. This case is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transitional Criminal Enterprise Unit. Assistant U.S. Attorneys Benet J. Kearney and Abigail S. Kurland are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Waukesha Man Faces Federal Charges for Sex TraffickingRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 1, 2020, a federal grand jury returned a five-count indictment against Cornelius M. Jackson (age 31) of Waukesha, Wisconsin, charging him with sex trafficking offenses that spanned over six years and multiple states.
Count One alleges that from 2014 through August 2020, Jackson conspired with others to use force, fraud, and coercion to cause victims to engage in commercial sex acts in Wisconsin, Minnesota, North Dakota, and Ohio, in violation of Title 18, United States Code, Section 1594. Counts Two through Five allege that Jackson used force, fraud, and coercion to cause four individual victims to engage in commercial sex acts, in violation of Title 18, United States Code, Sections 1591(a)(1) & 1591(b)(1).
If convicted of any of the counts, Jackson faces up to life in prison. If convicted of Count Two, Three, Four, or Five, Jackson would face a mandatory minimum sentence of 15 years in federal prison and up to a life term of supervised release following any term of imprisonment. Jackson also faces a fine of up to $250,000 per count.
“Sex trafficking is a brutal crime that dehumanizes its victims,” said United States Attorney Krueger. “These important charges resulted from extraordinary collaboration among law enforcement agencies who demonstrated remarkable determination in conducting this investigation.”
This case was investigated by the Federal Bureau of Investigation, Wisconsin Department of Justice’s Division of Criminal Investigation, Milwaukee Police Department, Waukesha Police Department, and Oneida Police Department, in collaboration with the Milwaukee County District Attorney’s Office.
The case is being prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Abbey M. Marzick.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
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Washington County Man Sentenced for Distributing Cocaine BaseRead the Press Release
BANGOR, Maine: A Princeton, Maine man was sentenced today in federal court in Bangor for distributing cocaine base, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Robert McKenna, 50, to 135 months in prison and three years of supervised release. McKenna pleaded guilty on January 21, 2020.
According to court records, on April 25, 2019, McKenna sold crack to an undercover agent from the Maine Drug Enforcement Agency at a residence in Indian Township.
The Maine Drug Enforcement Agency and the FBI investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Virginia Man Indicted on Wire Fraud ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 7, 2020, Rishi Budhadev, age 25, of Fredericksburg, Virginia, was indicted by a federal grand jury on wire fraud and conspiracy to commit wire fraud charges. The case was unsealed following Budhadev’s arrest on December 1, 2020.
According to United States Attorney David J. Freed, the indictment alleges that between October 2015 and December 2015, Budhadev, working with other unnamed co-conspirators, defrauded victims using common advance-fee mass marketing scams. Budhadev’s victims included a 72-year-old widow from the Middle District of Pennsylvania. The indictment also alleges that this victim sent a MoneyGram money transfer to Budhadev after an individual impersonating a U.S. Government agent told her that she needed to pay money to redeem benefits to which she was entitled because of her late husband’s military service.
The indictment also alleges that Budhadev received approximately 500 MoneyGram money orders worth over $500,000, including about 300 MoneyGram money orders worth over $407,000 from more than 250 senders that he picked up from seven different Walmart stores. On November 13, 2015, Budhadev picked up 13 MoneyGram money transfers totaling approximately $27,000 from five different Richmond, Virginia area Walmart stores. Similarly, on December 4, 2015, Budhadev picked up 38 MoneyGram money transfers totaling approximately $34,000 from five different Richmond, Virginia area Walmart stores.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for wire fraud and conspiracy to commit wire fraud is 20 years’ imprisonment. These charges may also carry a fine and a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Upshur County man admits to making a bombRead the Press Release
ELKINS, WEST VIRGINIA – Eric Reynolds Rowan, of Buckhannon, West Virginia, has admitted to making a bomb, U.S. Attorney Bill Powell announced.
Rowan, age 26, pled guilty to one count of “Making a Destructive Device.” Rowan admitted to making an explosive bomb sometime between August and November 2019 in Upshur County.
Rowan 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 FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. Department of Justice Recognizes Ogden Police Chief for His Work with Targeted Project Safe Neighborhood AreaRead the Press Release
SALT LAKE CITY – The U.S. Department of Justice is recognizing the leadership success of Ogden Police Chief Randy Watt in the city’s Project Safe Neighborhoods (PSN) Target Enforcement Area. Each year, the Department of Justice recognizes outstanding efforts to restore safety in communities through annual PSN Achievement Awards.
U.S. Attorney John W. Huber presented the Outstanding Individual Contribution to the PSN Program award to Chief Watt Tuesday in Ogden. PSN is a critical piece of the Department’s crime reduction efforts. Generally, the awards are presented at a national ceremony. However, with the pandemic, local presentations are being done this year.
The U.S. Attorney’s Office in Utah has been one of the highest performing offices in the PSN initiative for almost 20 years, using the initiative goals to reduce violent crime in Utah communities. PSN, which fosters using local solutions to solve local problems, focuses investigation and prosecution resources on those individuals who most significantly drive violence in our communities. It also promotes partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct. For example, 255 cases PSN cases were filed by federal prosecutors in 2018; 215 in 2019, and, as of November, 169 in 2020.
The U.S. Attorney’s Office nominated Chief Watt for the award in recognition of his decades of leadership in law enforcement and his efforts to lead a PSN targeted enforcement effort in Ogden, partnering with federal law enforcement agencies.
Chief Watt was the architect of a program to develop a Targeted Enforcement Area (TEA) in Ogden. He selected a 4.86 square mile area, located primarily within Ogden, for enhanced targeted enforcement. The TEA initiative started in April 2018 with support from DOJ PSN grants. Partners adopted a zero tolerance position for anyone committing firearms or narcotics violations in the targeted area. Offenders are screened for federal or state prosecution as a part of a coordinated prosecution strategy. The federal cases are often prosecuted by Weber County Attorneys cross-designated as Assistant U.S. Attorneys. This partnership and geographic surge of resources has resulted in a significant reduction in Type 1 crimes.
“Chief Watt deserves this high honor for his efforts in the Target Enforcement Area. His forward thinking leadership in defining and targeting a specific area, combined with his willingness to partner with the PSN program and federal law enforcement, has made the TEA the success is. His success in crime suppression and prevention has made Ogden a model for other cities to use in addressing violent crime issues,” Huber said today.
As a part of the Ogden TEA initiative, 181 firearms have been seized. The firearms include one grenade launcher, 128 pistols, 15 revolvers, 23 rifles, and 14 shotguns. These are firearms no longer in the hands of criminals in the community.
Huber said prosecutors have even heard from offenders, arrested as a part of the initiative, promoting a crime-prevention mantra: Don’t get caught in the Box.
U.S. Attorney's Office's Approach to Gun Violence: Support Community-Based Prevention Programs and Focus Prosecutions on Those Driving the ViolenceRead the Press Release
GRAND RAPIDS, MICHIGAN – Speaking on the subject of gun violence, the U.S. Attorney for the Western District of Michigan, Andrew Birge, explained that his office employs an evidence-based, two-pronged approach to violent crime reduction, focusing on prosecuting the most dangerous offenders where there is federal jurisdiction while funding and encouraging law enforcement partnerships with community stakeholders to achieve sustainable and community driven reductions in violent crime.
U.S. Attorney Birge explained that: “Through grant funding, the Department supports violence prevention programs. Through focused federal prosecutions, my office looks to hold the trigger-pullers and most dangerous offenders accountable to federal law. Ideally, community members and law enforcement officers support each other and even work together to sustainably reduce violence and reduce the need for either state or federal charges.”
In 2020, the U.S. Attorney’s Office for Western Michigan oversaw the granting of almost $200,000 in Department of Justice funds to support community organizations and law enforcement partners in efforts to reduce violent crime throughout Western Michigan. Those funds came through DOJ’s Project Safe Neighborhoods (PSN) program, which was first launched in 2001. DOJ funds support both community organizations and local law enforcement in Battle Creek, Benton Harbor, Grand Rapids, Kalamazoo, Lansing, and Muskegon/Muskegon Heights. This past year, more than ten community organizations and six local police departments received a total of $192,000 in PSN grant funds to support community-based violence prevention programs. The PSN-funded programs focused on the communities with the highest rates of violence and, more specifically, those community members most at-risk of committing or suffering from violent crime. All PSN-funded organizations work in conjunction with local law enforcement to ensure a sustainable and holistic approach to violent crime reduction.
- For example, the Muskegon and Muskegon Heights Police Departments received funding to support basketball games between at-risk youth and community police officers, back-to-school haircuts for kids, and an outreach program where former felons mentor at-risk individuals in an effort to deter them from committing, or becoming victims of, violent crime.
- The Lansing Police Department received PSN grant funds to support a faith-based mobile outreach organization operating in areas that suffer from the highest rates of violence and poverty. One of the goals of this organization is to promote community trust in local law enforcement by helping to build bridges between police officers and community member. Working alongside Lansing Police, this community group used the grant money to fund summer barbeques, a mobile food pantry, and care packages for impoverished community members.
- In Benton Harbor, the PSN grant funds supported a new initiative at the Boys & Girls Club called Project Learn. Project Learn is an after-school program which provides academic support and mentoring to young people. The Boys & Girls Club specifically implemented the Project in a neighborhood which had 124 calls to police for services in a three-month period, including 14 calls reporting shots fired.
- In Kalamazoo, PSN grant funds help support a Group Violence Intervention program (GVI), where police and community members, including ex-offenders, personally reach out to at-risk youth and group members to interrupt cycles of violence.
While these community-based interventions address conditions that can raise the risk of violence, the U.S. Attorney’s Office works with local and federal law enforcement as well as county prosecutors to identify and prosecute federally the individuals who are causing the violence. “Prosecuting the small number of people committing violent acts has a significant and immediate impact on communities suffering from gun violence,” explained Erin Lane, an Assistant U.S. Attorney who handles many of these cases and oversees the grant funding program. “Often a county prosecutor will have the better charge for jurisdictional or other reasons and our county prosecutors do a great job. But we have seen that a federal charge can have a positive impact,” explained U.S. Attorney Birge.
- For example, at the end of this summer, the Grand Rapids Police Department, ATF and the U.S. Attorney’s office charged Antwine Chamberlain-Fields with being a felon in possession of a firearm. GRPD referred his case to federal prosecutors with the concurrence of the Kent County Prosecutor’s Office because officers suspected Chamberlain-Fields was involved in, as well as the target of, multiple shootings in the Grand Rapids area during this past summer, including a drive-by shooting on the city’s west side resulting in the injury of a teenage girl. After Chamberlain-Fields was indicted and placed in federal pretrial detention, shootings on the west side of Grand Rapids stopped for almost three weeks. In September, Chamberlain-Fields pled guilty and faces up to ten years’ incarceration for this crime.
- In Kalamazoo, police arrested Fharis Smith and Dontrell Walker after officers received information that they had been involved in a shooting incident with a rival gang. Officers also understood that the rival gang planned a retaliatory shooting against Smith and Walker. Police arrested Smith and Walker on outstanding criminal warrants. When arrested, Walker had a sawed-off rifle and Smith had a loaded gun and methamphetamine on him. Both were charged with federal crimes and placed in federal custody. Removing Smith and Walker from the street interrupted the cycle of shootings in Kalamazoo between the rival groups and prevented further violence. A federal jury convicted Smith of being a felon in possession of a firearm, drug distribution, and possessing a firearm in furtherance of drug trafficking. He faces up to fifteen years in prison. Walker pled guilty to possessing a short-barreled rifle and was sentenced to eight and a half years’ incarceration.
- Likewise, in August of this year, Kalamazoo Department of Public Safety (KDPS) arrested Robert Love, Jr. for being a felon in possession of a firearm. Love had been involved in, and the target of, multiple shootings in the Kalamazoo area during this past summer. After Love was injured in a drive-by shooting, police officers and community members making up the Kalamazoo GVI contacted Love and warned him that he was going to end up dead or in prison if he did not stop his violent behavior. Two days after this attempted intervention, Love’s car was shot up by unknown individuals on the streets of Kalamazoo. Police arrested Love on an outstanding warrant and discovered that he had a firearm. The U.S. Attorney’s office charged Love federally and the court held him in federal custody. Love eventually pled guilty to being a felon in possession of a firearm and now faces up to ten years in prison. Like Smith and Walker, Love’s arrest curbed the cycle of retaliatory and criminal group-involved shootings in the Kalamazoo area. KDPS Assistant Chief David Boysen explained, “federally charging individuals that are the most violent offenders and removing them from the street has an immediate impact on reducing the cycle of violence in the city. It is an invaluable resource for KDPS and community partners committed to violence prevention work.”
- Police in Lansing arrested an active shooter, Narrion Caston, for being a felon in possession of ammunition. At the time Caston was arrested, he was only one month into a three-year term of federal supervision for a previous conviction for being a felon in possession of a firearm. Caston pled guilty to the charge and at his sentencing hearing, a detective from the Lansing Police Department testified that the ammunition Caston illegally possessed was found in a car after Caston shot into another vehicle, hitting a Lansing area resident in the leg. Caston was sentenced to serve 10 years in the Federal Bureau of Prisons for illegal possession of ammunition, and 14 months for violations of his federal supervised release.
- In addition to prosecuting the most dangerous offenders for illegal possession of firearms and ammunition, the U.S. Attorney’s Office prioritizes the prosecution of thefts from licensed firearm dealers, in order to disrupt the flow of illegal firearms into the hands of violent offenders. For example, Charles Skipp was sentenced to 42 years in prison after being convicted of 10 felony offenses, which included stealing 89 firearms from a licensed firearm dealer. He attempted to cover his tracks by intimidating and retaliating against a witness to the theft, by shooting at the witnesses’ house and later setting it on fire. Skipp also used one of the stolen guns to rob and shoot a drug dealer.
“There are no quick fixes; it will take long-term commitment to not only prosecuting those who are driving the violence but also to crime prevention,” acknowledged U.S. Attorney Birge. This past year, the coronavirus made it difficult to implement community prevention programs. “The pandemic brought into sharp focus the critical role that these programs play in violence reduction and neighborhood safety and stability,” added Assistant U.S. Attorney Lane.
Looking forward to 2021, there are again over $192,000 of PSN grant funds available to nonprofit organizations, community groups, and local law enforcement working on violence prevention in Battle Creek, Benton Harbor, Grand Rapids, Kalamazoo, Lansing, and Muskegon/Muskegon Heights. With the ongoing challenges posed by the coronavirus pandemic, U.S. Attorney Birge encourages communities and law enforcement organizations to submit PSN project proposals that are aimed at sustainable, community-based violence prevention programming, which can be implemented during or after the pandemic. For more information about the PSN grant request for proposals or an application, please call Annette Chapman, PSN Fiscal Agent and Senior Vice President at the Battle Creek Community Foundation, at (269) 962-
2181 or email [email protected]. For other federal grant opportunities, please see www.grants.gov.###
Three Hartford, Connecticut Area Men Face Federal Drug Charges from Seizure of Fentanyl and Cocaine Base from Rutland ApartmentRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury, sitting in Rutland, charged three men from the Hartford, Connecticut area with an assortment of heroin, fentanyl, and crack cocaine offenses. The defendants are: Ralph Mariani (a.k.a. “D”), 27, of East Hartford, Connecticut; Cedano Brownswell, 26, of Hartford, Connecticut; and Rashane Wedderburn, 25, of Hartford, Connecticut. The five-count indictment includes charges that: Mariani and Wedderburn distributed Fentanyl; Mariani possessed, with the intent to distribute cocaine base and fentanyl; and Brownswell possessed cocaine base.
On November 18, 2020 law enforcement executed a federal search warrant for an apartment at 78 Traverse Place in Rutland, Vermont. Mariani, Wedderburn, and Brownswell were present at the time of this search. Law enforcement seized approximately 72 grams of suspected powder cocaine, 45 grams of suspected cocaine base, 69 bags of suspected fentanyl, 52 suspected Oxycodone pills, an amount of suspected marijuana, and four firearms, including a loaded 9mm pistol located on the living room couch. Of those total drug amounts, approximately 29 grams of suspected cocaine base, 44 bags of suspected fentanyl, and 52 suspected Oxycodone pills were located on Mariani’s person. Law enforcement also seized over six thousand dollars in cash: $2,380 from Mariani, $1,880 from Cedano, and $2,134 from Wedderburn.
At his arraignment, Mariani pled not guilty to the charges. U.S. District Court Magistrate Judge John Conroy ordered Mariani detained pending trial and held in the custody of the U.S. Marshals Service. The arraignment for Wedderburn and Brownswell is currently scheduled for December 10.
The maximum penalties for the charged drug offenses range from 20 years of imprisonment and a $1,000,000 fine for the drug trafficking offenses to three years of imprisonment and $100,000 fine for the drug possession offense. The actual sentence, however, is informed by the advisory Sentencing Guidelines. The Indictment is an accusation only, the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rutland City Police, and Homeland Security Investigations of the Department of Homeland Security.
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Mariani is represented by Elizabeth Quinn, Esq., of the Federal Public Defender’s Office in Burlington. Wedderburn is represented by Lisa Shelkrot, Esq., of Burlington, and Brownswell is represented by Alan Sullivan, Esq. of Manchester, Vermont.
Three Family Members Sentenced in Connection with Defrauding Veterans Health Care in the VillagesRead the Press Release
Ocala, Florida – Miller Wilson, Jr. (50, Sparr), his daughter, Myoshi Wilson (26, Citra), and his ex-wife, Erica Wilson (43, Ocala) were sentenced today by Senior United States District Judge James D. Whittemore for their roles in a scheme to defraud the U.S. Department of Veterans Affairs health care benefits. Each had previously pleaded guilty.
Miller Wilson, Jr. was sentenced to 18 months in federal prison for conspiracy to commit health care fraud and wire fraud and solicitation and receipt of a health care kickback.
Erica Wilson was sentenced to 5 years’ probation for conspiracy to commit health care fraud and wire fraud.
Myoshi Wilson was re-sentenced to 6 months’ imprisonment, followed by 30 months of supervised release, including 6 months’ home confinement, for a violation of probation. Myoshi Wilson had previously been sentenced to 5 years’ probation for making false statements to law enforcement. She was arrested on a violation of that probationary sentence on November 4, 2020.
According to court documents, Miller Wilson, Jr. was an employee at the Department of Veterans Affairs (“VA”) Clinic located in The Villages. As part of his employment, he provided transportation arrangements for veterans needing medical treatment. From 2014 through 2016, Miller Wilson, Jr. obtained cash kickbacks from the transportation vendors in exchange for awarding them health care contracts from the VA. Thereafter, from 2016-2017, Miller Wilson, Jr. conspired with Erica and Myoshi Wilson to open and manage two different transportation companies to conduct similar schemes. Miller Wilson, Jr. used his official position at the VA to funnel health care contracts to the companies that he had formed with Erica and Myoshi Wilson. During a 17-month period, the two companies billed the federal government $305,673. Myoshi Wilson admitted to making false statements to a federal agent in 2019, to conceal the conspiracy.
“VA employees are public servants with a solemn duty to care for our nation’s veterans,” said David Spilker, Special Agent in Charge of the VA OIG’s Southeast Field Office. “The sentencing of these three defendants demonstrates the VA OIG’s commitment to holding accountable anyone who abuses their position to enrich themselves. The VA OIG thanks the U.S. Attorney’s Office for its strong partnership in sending a clear message that VA employees will be held to the highest ethical standards, which preserves the public trust in VA.”
This case was investigated by the Department of Veterans Affairs – Office of Inspector General. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Suspended Bamberg County Councilman Arrested on Federal Criminal Complaint on False Statements ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kerry Trent Kinard, 49, of Bamberg, South Carolina, was arrested on a federal criminal complaint and charged with making material false statements in connection to the attempted acquisition of a firearm.
Kinard had his initial appearance on the federal charge before United States Magistrate Judge Shiva V. Hodges, where the court scheduled a preliminary hearing and a detention hearing for Thursday, December 17, 2020 at 10:00am. At this time, Kinard remains in custody.
According to the complaint, on November 5, 2020, a Bamberg County Grand Jury returned seven felony indictments against Kinard related to the sexual abuse of children over the course of numerous years, as alleged in those indictments. The complaint further alleges Kinard was on notice that he was under felony indictment as a result of the presiding South Carolina Court of General Sessions judge’s initial denial of bond citing the “unreasonable danger to the community” Kinard’s release would then represent, as a result of Kinard’s participation in numerous hearings on the state felony charges, and as a result of Governor Henry McMaster’s suspension of Kinard from service on the Bamberg County Council following the indictments.
As further alleged in the complaint, on October 27, 2020, after finding that Kinard represented a credible threat to the physical safety of a petitioner and that Kinard used or threatened to use physical force expected to cause bodily injury, a presiding South Carolina Family Court judge entered a protective order restraining Kinard from threatening or using physical force against the petitioner. The complaint alleges Kinard was also on notice that he was subject to such an order as a result of his participation in the hearing on the protective order.
The complaint alleges that, while out on bond, under seven felony indictments, and subject to a protective order, Kinard entered a federally licensed firearms dealer and made two false statements material to the lawfulness of the sale in an attempt to acquire a firearm. On December 3, 2020, Kinard attempted to acquire a Taurus, Model G3 9mm pistol from a firearm dealer in Columbia. In the course of doing so, the complaint alleges Kinard made two false statements in violation of federal law: Kinard falsely claimed he was not under felony indictment and Kinard claimed he was not subject to a protective order. The complaint alleges that both false statements were material in that if he had answered truthfully, the sale would have been unlawful and therefore denied.
The maximum penalty for this offense is ten years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), who brought the federal criminal complaint, with assistance from the South Carolina Law Enforcement Division (SLED). The case is being prosecuted by Assistant United States Attorney Elliott B. Daniels of the Columbia Office.
United States Attorney McCoy stated that all charges in this case are merely allegations and that the defendant is 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.
kinard-_unsealed_complaint.pdfStash house operator who conducted “heat runs” convicted for drug schemeRead the Press Release
McALLEN, Texas – A 35-year-old Mexican national has admitted to possessing with intent to distribute over 40 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
On March 17, authorities conducted surveillance on what they suspected to be a drug stash house in McAllen. There, they observed Hugo Cristobal Garza-Ornelas departing the location in a possible load vehicle.
Later, they witnessed Ornelas conducting “heat runs,” which are unpredictable routes meant to evade law enforcement, and began pursuit. He attempted to flee from his vehicle on foot, but authorities quickly apprehended him.
A search of the abandoned load vehicle led to the discovery of approximately 14.68 kilograms of cocaine. Law enforcement also searched the stash house Garza-Ornelas operated and seized another 26.74 kilograms of cocaine as well as a rifle and ammunition.
The drugs had an estimated street value of $1.025 million.
U.S. District Judge Ricardo Hinojosa will impose sentencing Feb. 21, 2021. At that time, Garza-Ornelas faces a minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
Sioux City Man Pleads Guilty in Federal Court to Stealing from Indian Tribal OrganizationRead the Press Release
A Sioux City man who engaged in rebate schemes, fraudulent invoice schemes, and stole items belonging to the Winebago Tribe of Nebraska pled guilty today in federal court in Sioux City.
Jason Ehlers, age 48, from Sioux City, Iowa, was convicted of embezzlement and theft from an Indian Tribal Organization.
In a plea agreement, Ehlers admitted that he stole and embezzled from the Winnebago Tribe of Nebraska at least $22,432.00. Ehlers admitted to using his position as a General Manager with BluStone Homes, also known as HoChunk Real-Estate, solely owned by the Winnebago Tribe of Nebraska, to engage in rebate schemes, a fraudulent invoice scheme, and theft of construction supplies, for his own benefit.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Ehlers remains free on bond pending sentencing. Ehlers faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4089.
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Pueblo Man Sentenced to Nearly 5 Years in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Maximillian Zeferino Esquibel, age 32 of Pueblo, was sentenced to serve 58 months (nearly 5 years) in federal prison, followed by 3 years on supervised release for being a felon in possession of a firearm. Esquibel was convicted after the first criminal jury trial in the District of Colorado since COVID-19 impacted the court system in March. The FBI and Southern Colorado Safe Streets Violent Gang Task Force joined in this announcement.
According to court documents and facts presented at trial, on August 9, 2019, law enforcement agents and officers executed a search warrant at Esquibel’s residence. He was present during the execution of the warrant, along with his girlfriend. There were children present as well.
During the search investigators found four firearms, including an AR-15 style rifle, with the safety switch turned to the “fire” position, loaded with an extended magazine that contained multiple rounds of live ammunition. Three other firearms and over 100 rounds of ammunition were also seized. Esquibel had a prior felony conviction in Pueblo County in 2006 for aggravated robbery, making it a crime for him to possess firearms.
“Reducing gun crime in Pueblo has been a focus of this office and the Safe Streets Task Force for several years now,” said U.S. Attorney Jason Dunn. “This case is just one example of how, working with the Pueblo Police Department and the District Attorney’s office, we are clearly having a significant impact.”
“The recent sentencing of Maximillian Zeferino Esquibel is a result of federal, state, and local law enforcement agencies working together to remove violent criminals from our neighborhoods,” said FBI Denver Special Agent in Charge Michael Schneider. “The citizens of Colorado deserve this collective effort, and I want to thank our Southern Colorado Safe Streets Task Force for helping to keep our community safe.”
Esquibel was first charged by Criminal Complaint on August 9, 2019. He was indicted by a federal grand jury on August 12, 2019. He was found guilty following the first post COVID shutdown trial on September 1, 2020, and was sentenced on December 4, 2020.
This case was investigated by the FBI and Southern Coloarado Safe Streets Violent Gang Task Force. Esquibel was prosecuted by Assistant U.S. Attorneys Jason St. Julien and Thomas Minser.
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 when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-376.
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.
Project Python defendant gets 10 years in prisonRead the Press Release
LAREDO, Texas – A 28-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been sentenced to a long prison term for conspiracy to possess with the intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.
Gerardo Cervantes-Valenzuela pleaded guilty July 8.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve 120 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release. In handing down the sentence, the court noted Cervantes-Valenzuela’s prior federal conviction for drug trafficking.
On June 7, 2018, Cervantes-Valenzuela provided an informant with two drug-laden fire extinguishers. Law enforcement obtained the items and conducted an undercover operation which led to additional arrests and convictions of co-conspirators in Georgia.
The combined weight of the drugs from the two extinguishers was over 4.8 kilos of 99.73% pure meth.
The Drug Enforcement Administration (DEA) conducted the Organized Crime and Drug Task (OCDETF) operation known as Gelo Podre as part of Project Python – a nationwide operation targeting the Cártel de Jalisco Nueva Generación. It has resulted in more than 600 arrests, 350 indictments and significant seizures of money and drugs across the United States.
Laredo DEA led this investigation with the assistance of the Laredo Police Department; Henry County, Georgia, Police Department; Flint, Georgia, Circuit Drug Enforcement Task Force; Georgia Bureau of Investigation and Georgia State Troopers. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.
Morgantown woman admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marreen Joy Garrett, of Morgantown, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Garrett, age 60, pled guilty to one count of “Possession with Intent to Distribute Heroin.” Garrett admitted to having heroin in March 2020 in Morgan County.
Garrett faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Morgan County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Member of the Violent Extremist Group “the Base” Pleads Guilty in Maryland to Federal Charges for Transporting an Illegal Alien—A Fellow Base Member Whom He Knew Was Planning to Engage in Subversive and/or Criminal Activity in the United StatesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced a member of the racially motivated violent extremist group “The Base” William Garfield Bilbrough IV, age 20, of Denton, Maryland, to five years in prison, followed by three years of supervised release, after Bilbrough pleaded guilty to conspiring to transport an alien and to transporting the alien, specifically, a fellow member of The Base.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the District of Delaware David C. Weiss; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“Preserving our nation’s security against terrorist threats continues to be the Justice Department’s top priority. Lives were saved due to the skill and dedication of law enforcement in this case. William Bilbrough and his cohorts intended to inflict violence on the basis of their racist and hateful beliefs. As long as violent extremists take steps to harm innocent people, we will continue to use all of the tools we have to prevent and deter them,” said United States Attorney Robert K. Hur.
“Today's admission of guilt shows how far Mr. Bilbrough was willing to go to support extremist activity,” said Jennifer C. Boone Special Agent in Charge of the FBI Baltimore Field Office. “This investigation and the guilty plea underscores the continuing threat we face from domestic extremist groups. The FBI and our law enforcement partners remain fully prepared to take actions necessary to safeguard our communities.”
According to his plea agreement, Bilbrough was a member of The Base, a racially motivated violent extremist group. Since 2018, The Base has built a coalition of white supremacist members within the United States and abroad through, among other things, online chat rooms, in-person meetings, propaganda, and military-style training. Bilbrough participated in a regional training camp conducted by members of The Base in Georgia from August 2 through August 4, 2019, including participating in tactical training and firearms drills. Later that month, Bilbrough attended another Base training camp in a different state.
As detailed in his plea agreement, on August 30, 2019, Bilbrough and a co-conspirator traveled in the co-conspirator’s truck from Maryland to southern Michigan to pick up a member of The Base who had fled from Winnipeg, Canada and illegally entered the United States. Bilbrough admitted that he knew the person they were picking up had entered the United States illegally and that they were picking him up in order to transport him to the East Coast where he could safely reside and continue his participation in The Base. Bilbrough and his co-conspirator remained in Michigan for approximately two hours, after which all three men headed back east. Bilbrough drove at least part of the time and was dropped off at his house in Maryland on the evening of August 31, 2019. Bilbrough brought back a few souvenirs, including a flag for The Base and a book widely distributed in white nationalist circles.
Bilbrough acknowledged that on about October 30, 2019, Bilbrough’s co-conspirator picked him up at his Maryland residence and the two drove to Georgia to attend a training camp at the property of another member of The Base. The illegal alien whom they had picked up in August was already residing at the Georgia property and also attended the training camp. While in Georgia, on November 2, 2019, Bilbrough and his co-conspirator purchased approximately 1,550 rounds of 5.56 ammunition for $558.54. Later that day, Bilbrough, his co-conspirator, and the illegal alien traveled from Georgia to Maryland, with Bilbrough driving at least part of the way.
As detailed in the plea agreement, as of November 2019, Bilbrough’s co-conspirator and the illegal alien lived at a residence in Delaware. Bilbrough visited the Delaware residence on at least one occasion. On December 21, 2019, Bilbrough arrived at the Delaware residence and handled an assault rifle that the illegal alien had constructed with the co-conspirator’s assistance and encouragement. Bilbrough and the two men discussed an upcoming rally in Virginia, activities of The Base, and other members of the organization. Bilbrough also discussed with them the manufacture of DMT (dimethyltryptamine), a controlled substance, and attempted to actually manufacture DMT. Bilbrough stated that he may try to sell DMT to the people to whom he delivers pizza and stated that he knew DMT was illegal and that it was a felony to have DMT.
Bilbrough admitted that he knew the illegal alien had entered the United States to engage in subversive activity or other serious criminal activity, and had never disavowed that purpose while Bilbrough transported and otherwise interacted with the illegal alien.
Federal charges in Maryland and Delaware remain pending against two other alleged members of The Base, Brian Mark Lemley, age 34, of Elkton, Maryland, and Newark, Delaware; and Canadian national Patrik Jordan Mathews, age 28, most recently of Newark, Delaware. Both defendants have motions pending and no trial date has been set. The defendants remain detained.
United States Attorneys Robert K. Hur and David C. Weiss commended the FBI Baltimore Joint Terrorism Task Force (JTTF) and ATF for their work in the investigation, and thanked U.S. Homeland Security Investigations, the Maryland Department of Natural Resources, the Maryland State Police, and the Delaware State Police for their assistance. Mr. Hur and Mr. Weiss thanked their offices’ national security prosecutors, who are handling the case.
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Maryland Man Pleads Guilty to Using Counterfeit Credit CardsRead the Press Release
PORTLAND, Maine: A Bowie, Maryland man pleaded guilty today in federal court to using counterfeit credit cards, the U.S. Attorney’s Office announced.
According to court records, in December 2018, Charles Harris, 37, and his co-defendant, Bryan Boley, used counterfeit credit cards at Maine retail outlets. The credit card numbers were purchased online.
Harris faces up to 10 years in prison and a $250,000 fine. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. Harris’s co-defendant Boley was sentenced on November 15, 2019, to 22 months in prison and three years of supervised release.
The U.S. Secret Service; the Maine State Police; and the Auburn, Brunswick, Cape Elizabeth and Yarmouth Police Departments investigated the case.
Lehigh, Iowa Man to Prison for Meth ConspiracyRead the Press Release
Thomas Hendrickson, 72, from Lehigh, Iowa, pled guilty to conspiracy to distribute methamphetamine and was sentenced to 7 years in federal prison on December 4, 2020.
Evidence showed that from January 2019 through October 2019, Hendrickson was involved in a conspiracy that distributed over five pounds of methamphetamine. On October 10, 2019, law enforcement conducted a traffic stop of the vehicle Hendrickson was operating. After a K-9 alerted to the presence of controlled substances, law enforcement searched the vehicle and located approximately one pound of methamphetamine in a plastic baggie. On this same date, law enforcement executed a search warrant at Hendrickson’s residence in Lehigh and seized about one ounce of methamphetamine, approximately one pound of marijuana, and roughly $15,000 in U.S. currency. Hendrickson previously served more than 14 years in prison for a federal firearm offense after being classified as an Armed Career Criminal.
Hendrickson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hendrickson was sentenced to 84 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Hendrickson is being held in the custody of the U.S. Marshals Service until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division of Narcotics Enforcement, Iowa State Patrol, Tri-County Drug Taskforce, Webster County Sheriff’s Office, North Central Iowa Drug Taskforce, Central Iowa Drug Taskforce, and the Iowa DCI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3047.
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Laurel Pimp Pleads Sentenced to Two Years in Federal Prison for Enticing Three Women to Cross State Lines to Engage in ProstitutionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Robert Carl Diienno, age 32, formerly of Laurel, Maryland, to two years in federal prison, followed by five years of supervised release, for enticing three victims to travel in interstate commerce for the purposes of prostitution. Judge Hazel also ordered that, upon his release from prison, Diienno must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); and Chief Russell E. Hamill III of the Laurel Police Department.
According to his plea agreement, from at least November 2016 through June 2017, Diienno acted as a pimp for Victim 1, and at other times for Victims 2 and 3, who were all adult women. During that time, Diienno persuaded, enticed, induced, and coerced the victims to engage in a prostitution enterprise that included travel between Maryland and Washington, D.C., Virginia, Florida, and South Carolina in order to service “dates” in acts of prostitution. The victims provided any money earned from the commercial sex to Diienno, including transferring payments electronically through Internet-based payment services, such as PayPal and Venmo.
As detailed in his plea agreement, Diienno and the victims resided at a residence in Laurel, which was used as a group home and the base of the enterprise. “Meeting minutes” recovered from the house identify the location as “Duh ho house.” Some of the meeting minutes are signed by one of the victims and include attendance at the meeting; a report on potential new recruits; and the “Comptroller’s Report” showing the amount earned by each of the victims related to their prostitution activities. In the residence and on Diienno’s laptop law enforcement recovered documents titled, “ho Training Manual,” “ho Rules,” and “Pimp/ho Contract.” The documents stated requirements that a “ho” submits to the control of the “Pimp,” including accepting any punishment the Pimp decides to inflict, with certain limitations, such as punishment must not incur permanent bodily harm, and must stop immediately if blood is drawn, among others.
A text exchange in late May 2017, between Diienno and Victim 3 demonstrated how Diienno coerced the victims. When Diienno persuaded Victim 3 to “walk the streets” in Washington, D.C., Victim 3 claimed to be ill. Diienno told Victim 3, “I care about seeing you become a strong ho and a strong person in general…Taking you home is what would show that I don’t care. That would mean I don’t give a f*** about your development as a person.”
On June 1, 2017, Laurel Police Department was called to the residence for a disturbance at that location. Victim 1 and Victim 3 were found hiding in a nearby treeline and reported that Diienno had assaulted Victim 1 when she refused to walk the streets. Diienno was arrested.
During the subsequent investigation, two firearms belonging to Diienno were recovered from the Laurel residence. At least one victim recalled seeing Diienno handle a firearm and was intimidated by that behavior.
This case was investigated by law enforcement agencies that are members of the Prince George’s County Human Trafficking Task Force, part of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI and the Laurel Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who is prosecuting the case.
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Laredo smuggler sentenced after conspiring to import nearly $2M in drugsRead the Press Release
LAREDO, Texas – A 59-year-old man from Laredo has been ordered to federal prison following his conviction for conspiring with others to import approximately 4.1 kilograms of heroin and 34.3 kilograms of cocaine from Mexico, announced U.S. Attorney Ryan K. Patrick.
Leonardo Rubio pleaded guilty July 8.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Rubio to serve a 72-month sentence to be immediately followed by four years of supervised release. In handing down the sentence, Judge Marmolejo noted Rubio’s prior drug convictions as well as the serious nature and amount of narcotics he attempted to smuggle in this case.
Rubio attempted to cross the border at the Juarez-Lincoln Bridge in Laredo on Jan. 24. At that time, law enforcement conducted an inspection of the interior of Rubio’s car and found a total of 33 packages concealed within the back wall and back seat of the vehicle.
Thirty of the packages had an approximate weight of 34 kilograms and field tested positive for cocaine, while the remaining three totaled over four kilograms and tested positive for heroin.
The drugs had an approximate street value of $1.19 million.
Rubio admitted he was importing and transporting the narcotics inside his vehicle.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney Yoona Lim prosecuted the case.
Justice Department Settles Claim Against Texas IT Company for Using Job Advertisements that Discriminated Against and Deterred U.S. Workers in Favor of Temporary Visa HoldersRead the Press Release
The Department of Justice today announced that it signed a settlement agreement with Ikon Systems, LLC (Ikon), an IT staffing and recruiting company based in Texas. This is the eleventh settlement by the Civil Rights Division under its 2017 Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers. Today’s settlement resolves claims that Ikon routinely discriminated against U.S. workers by posting job advertisements specifying a preference for applicants with temporary work visas, and that Ikon failed to consider at least one U.S. citizen applicant who applied to a discriminatory advertisement.
“Employers, no matter their size and no matter their industry, cannot limit employment opportunities only to temporary visa holders. When employers post job advertisements that discriminate against U.S. workers, they violate the Immigration and Nationality Act’s citizenship-status discrimination provision,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Our message is clear: if employers discriminate in advertising, recruiting, or hiring against U.S. workers by illegally preferring temporary visa holders, the Justice Department’s Civil Rights Division will act to protect them under the Immigration and Nationality Act.”
The Department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division against Ikon. Based on its investigation, the Department concluded that from May 8, 2019, to September 21, 2019, Ikon posted at least eight facially discriminatory job advertisements targeting non-U.S. citizens with immigration statuses associated with employment-based visas. For instance, the investigation revealed that one of Ikon’s advertisements stated, “Looking for OPT, CPT, H4 EAD, and H-1B transfer.” The Department also determined that Ikon failed to properly consider a U.S. citizen’s application to one of the job postings due to his citizenship status.
Under the Immigration and Nationality Act (INA), employers are not allowed to discriminate in recruitment or hiring based on citizenship status. The INA protects U.S. citizens, U.S. nationals, refugees, asylees, and recent lawful permanent residents from citizenship status discrimination in hiring, firing, and recruitment or referral for a fee. Workers who fall outside of these categories are not protected from citizenship status discrimination under the INA.
Under the terms of the settlement agreement, Ikon will pay $27,000 in civil penalties to the United States, revise its policies and procedures, and train relevant employees and agents on the INA’s anti-discrimination provision. Separately, Ikon will pay $15,000 to the affected U.S. citizen.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) has reached 11 settlements under the Protecting U.S. Workers Initiative, and employers have agreed to pay or have distributed a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of the H-1B, H-2A, H-2B and F-1 visa programs. In addition, the Department is currently litigating a U.S. Workers Initiative case, which involves a December 3, 2020 lawsuit filed against a major technology company for allegedly refusing to recruit, consider, or hire qualified and available U.S. workers in favor of temporary visa holders, including in the H‑1B visa program.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Judge sentences St. Peters man for conspiring to distribute methamphetamine, cocaine, heroin and fentanylRead the Press Release
ST. LOUIS, MO – United States District Judge John A. Ross sentenced Ramon Gonzalez, Jr. to 268 months in prison today. The 48-year-old St. Peters, Missouri resident pleaded guilty to conspiracy to distribute controlled substances.
During 2018, the Drug Enforcement Administration (DEA) began an investigation into a drug trafficking enterprise by several co-defendants. The DEA conducted multiple controlled purchases in July, August and September, from a co-defendant residing in rural Missouri. DEA identified several other co-conspirators, and learned that one of them was in regular telephone contact.
The investigation grew to include targets in Kansas City and California. Investigators used judicially authorized wiretaps to identify co-conspirators and determine their roles. Investigators, in March 2019, intercepted a co-defendant speaking with Gonzalez. The call revealed the co-defendant intended to meet with Gonzalez to pick-up cash from the sales of various controlled substances.
On March 8, 2019, deputies from the Phelps County Sheriff’s Department located the co-defendant’s vehicle traveling westbound on Interstate 44. During a traffic stop, deputies searched the co-defendant’s vehicle and discovered a box containing $197,660 in drug proceeds.
In March and April 2019, DEA used informants to make controlled purchases of large quantities of methamphetamine and fentanyl directly from Gonzalez. One of these purchases occurred at Gonzalez’s residence in St. Peters. On April 25, 2019, investigators executed a search warrant at that residence, during which they seized 6,386 grams of fentanyl, 5,547 grams of methamphetamine, 5,013 grams of heroin and 3,961 grams of cocaine. In a separate location nearby, they located and seized more than 20 firearms, many of which had been stolen and traded for drugs.
"Big poly-drug trafficking operations like this one require many law enforcement agencies to successfully dismantle," said Acting Special Agent in Charge Erik Smith, head of the DEA St. Louis Division. “Fortunately, DEA's partnership with the St. Charles County Drug Task Force, Police Department and Prosecutor's Office, along with other agencies, helped assemble the evidence to end his illegal business practice."
The Drug Enforcement Administration, United States Marshals Service and multiple law enforcement agencies investigated this case.
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Jewelry Importer to Pay $400,000 to Resolve False Claims Act Allegations Concerning Unpaid Customs Duties on Chinese EarringsRead the Press Release
BOSTON – A former jewelry importer, TSI Accessories Group, Inc. (TSI), will pay $402,637 to resolve allegations that it violated the False Claims Act by failing to pay customs duties on sterling silver earring imports from China.
Under customs laws, duties on sterling silver earrings imported from China vary based on the value of the jewelry—the more expensive the earrings, the lower the duty rate. An earring’s value is calculated per earring (rather than each pair of earrings or collection of earrings).
Between 2012 and 2015, TSI imported display cards of sterling silver earrings from China for resale at department stores. The display cards often included multiple pairs of earrings. The government contends that TSI improperly concealed the number and value of these imports from U.S. Customs and Border Protection by describing on import records the number of display cards imported, rather than the number of individual earrings. TSI’s misstatements increased the declared value of the imports, allowing TSI to pay a lower duty than it should have based on the value of each earring.
“Companies taking advantage of U.S. markets must comply with the law, including paying import duties levied to protect domestic companies from unfair competition,” said United States Attorney Andrew E. Lelling. “This settlement underscores our efforts to ensure that importers uphold their responsibilities in American markets. We credit TSI’s cooperation in this investigation and agreement to make the government whole.”
“In addition to securing our borders from terrorists, terrorist weapons and dangerous goods, CBP is charged with enforcing U.S. trade laws to protect the American economy,” said Michael S. Denning, Director, Boston Field Office, U.S. Customs and Border Protection (CBP). “We will continue to use the authorities and tools at our disposal to combat trade fraud to ensure a fair and competitive marketplace for all traders.”
“Homeland Security Investigations takes custom fraud cases very seriously. Mislabeling import documentation in order to pay lower duties improperly inflates costs to everyday consumers,” said David Magdycz, Acting Special Agent in Charge, HSI Boston. “HSI applauds the work of U.S. Customs and Border Protection for their significant assistance in the investigation, as well as the U.S. Attorney’s office for aggressively prosecuting this fraud.”
This civil settlement arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with this settlement, the whistleblower will receive approximately $70,000 of the recovery.
U.S. Attorney Lelling, CBP Director Denning and HSI Boston Acting SAC Magdycz made the announcement today. Assistant U.S. Attorney Brian M. LaMacchia of Lelling’s Affirmative Civil Enforcement Unit handled this matter.
Iowa Man to Prison for Meth ConspiracyRead the Press Release
Tyler Tinken, 37, from Dakota City, Iowa, pled guilty to conspiracy to distribute methamphetamine, distribution of methamphetamine and possession with intent to distribute methamphetamine and was sentenced to more than 3 years in federal prison on December 7, 2020.
Evidence at showed that from July 2019 through November 14, 2019, Tinken was involved in a conspiracy that distributed methamphetamine in the Humboldt and Sac County areas. On multiple occasions in September and October 2019, Tinken distributed just over a pound of pure methamphetamine to individuals cooperating with law enforcement. During a search of Tinken’s vehicle and residence in November 2019, law enforcement seized over 650 grams of pure methamphetamine that Tinken intended to distribute to others.
Tinken was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Tinken was sentenced to 47 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Tinken was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and 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 19-3059.
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Houston Man Arrested for International Money Laundering Conspiracy Stretching from the U.S. Virgin Islands to NigeriaRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Marvellous Eghaghe was arrested in Houston, Texas in connection with international wire fraud and money laundering schemes.
According to the indictment filed in the case, Eghaghe created a Texas company and an associated bank account that he used to funnel money fraudulently obtained from victims in the United States Virgin Islands, Alabama, Texas and Colombia. Part of the scheme involved “spoofing,” in which perpetrators intrude upon victims’ business email communications by setting up an email address similar to that of one of the legitimate participants, thereby diverting money transfers to unknown subjects inside and outside of the United States. The indictment also alleges that in another instance, coconspirators forged over $2 million in checks from the account of an unsuspecting business.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
An indictment is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Hattiesburg Felon with Extensive Criminal History Sentenced to 5 Years in Prison for Possessing Firearm under Project EJECTRead the Press Release
Hattiesburg, Miss. – Jermaine Brown, 36, of Hattiesburg, was sentenced today by Senior U.S. District Court Judge Keith Starrett to 60 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Brown was also ordered to pay a $3,000 fine.
On October 11, 2019, Brown was found in possession a firearm during a safety checkpoint being operated in Forrest County. Brown was previously convicted of multiple felonies, including drug trafficking and robbery.
Brown was originally indicted for this offense on November 19, 2019. He pled guilty on June 11, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Hattiesburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Felon Sentenced to 15 Months in Prison for Possessing Firearm under Project EJECTRead the Press Release
Hattiesburg, Miss. – Michael Bounds, 30, of Hattiesburg, was sentenced today by Senior U.S. District Court Judge Keith Starrett to 15 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Bounds was also ordered to pay a $3,000 fine.
On August 24, 2019, Bounds was found in possession of two firearms, including a 12-gauge shotgun, during a traffic stop in Forrest County. Bounds was previously convicted of multiple felonies.
Bounds was originally indicted for this offense on January 29, 2020. He pled guilty before Judge Starrett on August 18, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Hattiesburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.